RHI Entertainment: Made For TV IPO

RHI Entertainment (RHIE) develops, produces and distributes made-for-TV films.

All quotations are from the company’s most recent S-1 filing with links provided.

Business Overview (from prospectus) 

We develop, produce and distribute new made-for-television movies, mini-series and other television programming worldwide. We are the leading provider of new long-form television content with a 20% market share of domestic made-for-television [MFT] movies and mini-series and a 48% market share of domestic mini-series from January 2000 through September 2007, based on research provided by Nielsen. We also selectively produce new episodic series programming for television. In addition to our development, production and distribution of new content, we own an extensive library of existing long-form television content, which we license primarily to broadcast and cable networks worldwide. 

Offering: 12.5 million shares at $16-$18 per share. Net proceeds of approx. $198.2 million to be contributed to Holdings II and used to repay debt, pay reorg fees, and general corporate purposes.

IPO Underwriters: JP Morgan (JPM), Bank of America Securities LLC (BAC)

Financial Highlights 

Total revenue was $2.32 million for year ended December 31, 2007 vs. $1.92 million for the year ended December 31, 2006… gross profit year ended December 31, 2007 $9.5 million vs. $7.57 million for the year ended December 31, 2006 …net loss was $2.26 million for year ended December 31, 2007 vs. a net loss of $9 million for year ended December 31, 2006 

Competitors 

The developing, producing and distributing of MFT movies, mini-series and other television programming is a highly competitive business. The most important competitive factors include quality, subject matter and timeliness of delivery. Our primary competitors in MFT movie content include Disney/ABC International Television (DIS), CBS Paramount International Television (CBS) (VIA), Sony Pictures Television International (SNE) and Warner Brothers International Television Distribution (TWX). Similarly, there are numerous companies that develop, produce and distribute mini-series content. They are, among others, A&E International, CBS Paramount International Television, HBO, NBC Universal International Television Distribution (GE), Warner Brothers International Distribution and Disney/ABC International Television. 

Resources

• Company website
• Retail roadshow
• Thomson Financial News: IPO Wrap-Up
• Reuters: RHI Entertainment sets IPO at 12.5 mln shares