Thursday, 13 September 2012
DIGITAL DOMAIN MEDIA GROUP, INC.
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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DIGITAL DOMAIN MEDIA GROUP, INC.
Identification number
US270449505
Country
United States of America
ZIP code and city
94939 - LARKSPUR
Address
1100, LARKSPUR LANDING CIRCLE +1 310 314 2800 www.digitaldomain.com Not available
Legal form
Not available
Account
Consolidated
Incorporation date
2009/01/07
NACE 2 Sector
5911 - Motion picture, video and television programme production activities
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Company name
Listed Status
Active
MORE Credit limit
Not assessable on the base of the available informations
plans 3 types of reports:
Turnover (th e) s-peek
Rating
Plus
Basic TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk. TM
31/12/2011
31/12/2010
31/12/2009
76,224
78,689
46,370
CC
C
CC
42.00%
57.00%
42.00%
100%
100%
29%
Leverage ratio
5.72
-11.74
-
Total asset/Total liabilities
1.17
0.91
-
Current Ratio
0.69
0.39
-
Quick Ratio
0.69
0.39
-
Probability of default Confidence Level Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%) Return on equity ROE (%)
-64.24
-23.11
-
-477.76
-273.65
-
0.50
0.63
-
-0.13
-0.17
-0.29
0.05
0.20
0.19
-4.42
-2.17
-2.28
Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Solvency ratios Leverage ratio
5.72
0.58
2.09
3.20
-2.44
Total asset/Total liabilities
1.17
2.73
1.48
1.08
0.79
Current Ratio
0.69
2.55
1.34
0.96
0.53
Quick Ratio
0.69
2.47
1.25
0.92
0.38
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-64.24
13.57
6.02
0.56
-23.40
Return on equity ROE (%)
-477.76
15.46
10.46
-12.67
-59.07
Asset turnover
0.50
1.77
1.28
1.01
1.94
Interest paid weight
-0.13
0.00
0.09
0.01
-0.03
Gross Profit/Operating revenue
0.05
0.36
0.27
0.34
0.25
-4.42
311.50
9.23
1.16
-22.33
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
0
4
10
8
98
Days Sales Outstanding (DSO)
12
38
48
57
19
Days Payable Outstanding (DPO)
24
14
25
23
13
Cash Conversion Cycle (DIO + DSO - DPO)
-12
32
43
42
154
-
57
122
64
14
CC
A
BBB
CCC
C
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 5911with financial data of year 2011.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2011
31/12/2010
31/12/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate USD - EUR
0.77286
0.748
0.69416
Total assets
152,903
124,707
-
Fixed assets
119,923
112,195
-
Intangible fixed assets
46,914
47,986
-
Tangible fixed assets
61,938
35,825
-
Other fixed assets
11,072
28,384
-
32,979
12,512
-
0
0
-
2,404
1,800
-
30,576
10,712
-
24,625
8,966
-
22,761
-11,609
-
306
97
-
22,455
-11,706
-
130,142
136,316
-
Non current liabilities
82,611
103,890
-
Long term debt
28,704
35,874
-
Other non-current liabilities
53,907
68,016
-
47,531
32,426
-
590
748
-
5,017
1,974
-
41,925
29,704
-
152,903
124,707
-
31/12/2011
31/12/2010
31/12/2009
Current assets Stocks Debtors Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds Total liabilities
Current liabilities Loans Creditors Other current liabilities Total shareh. funds & liab. NET DEBT (th e) Short term debts
590
748
-
Long term debt
28,704
35,874
-
Cash & cash equivalent
24,625
8,966
-
4,669
27,657
-
31/12/2010
31/12/2009
Net debt
31/12/2011 Working capital
-
-
-
-14,552
-19,914
-
31/12/2011
31/12/2010
31/12/2009
Net Current Assets
Days Sales Of Inventory (DIO)
0
0
-
Days Sales Outstanding (DSO)
12
8
-
Days Payable Outstanding (DPO)
24
9
-
-12
-1
-
Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2011
31/12/2010
31/12/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.77286
0.748
0.69416
73,894
76,191
41,649
-3
83
-
2,330
2,498
4,720
Exchange rate USD - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized Operating revenue / turnover
76,224
78,689
46,370
134,272
89,503
55,164
Costs growth (%)
50
62
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
-45,096
-3,122
-2,185
12,952
7,692
6,610
EBIT
-58,049
-10,815
-8,794
Financial P/L
-53,311
-22,990
-8,405
-
-
-
53,311
22,990
8,405
Total operating costs
EBITDA Depreciation
Financial revenue Financial expenses
13,137
4,988
3,852
-111,359
-33,804
-17,199
2,719
2,055
14,103
-
-
-
Interest paid P/L before tax Extr. and other P/L Extr. and other revenue
-
-
-
-108,641
-31,750
-3,096
Extr. and other expenses P/L before tax + Extr. and other P/L Taxation P/L for period
102
19
0
-108,743
-31,768
-3,096
31/12/2011
31/12/2010
31/12/2009
72,524
62,753
37,377
3,700
15,936
8,992
61,748
26,751
17,786
31/12/2011
31/12/2010
31/12/2009
-95,790
-24,076
3,514
-
-
-
Costs of Good Sold Gross Profit Other Operating Expenses
Cash flow Added value
31/12/2011 Number of employees
933
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2010
31/12/2009
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
-
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
The firm, formerly known as Digital Domain Holdings Corporation, operates as a digital production company focusing on visual effects for feature films and advertising productions in the United States. The company was founded in 1993 and is headquartered in Larkspur, California, USA. The company is involved in the production of 3D content, performance capture, and CG visual effects, such as fluid simulation, terrain generation, and photorealistic CG animation. The company’s digital production business provides end - to - end solutions across multiple media platforms spanning the entire content production process from idea generation and pre - production to design, directing, live - action production, and post - production. Its digital production business has three digital production business units, which include Digital Domain Productions that provide VFX for feature films and advertising; Mothership, which offers digital advertising and marketing solutions for brand advertisers and advertising agency clients; and In - Three that involves in the creation and conversion of 2D content into 3D content. The company’s animation studio business focuses on the development of original full - length, family - oriented computer - generated imagery animated feature films. Its education business operates a post - secondary educational institution to produce workforce - ready graduates possessing traditional motion picture arts, and technical animation and visual effects computer generation skills.
History
Formerly known as Digital Domain Holdings Corporation.
Primary business line
Operates as a digital production company.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
Focuses on visual effects for feature films and advertising productions such as 3D content, performance capture, and CG visual effects, such as fluid simulation, terrain generation, and photorealistic CG animation.
Size estimate
Not available.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Main customers
Not available.
Auditor/Advisor/Bank name
type
address
SINGERLEWAK LLP American Stock Transfer & Trust
Auditor Transfer Agent
-
Board name
date of birth
nationality
function
Mr. Mr. Mr. Mr. Mr. Mr.
1965 12/10/1971 -
-
Chairman of the Board, Chief Executive Officer Independent Director Independent Director Independent Director Independent Director Director
1973
-
Chief Executive Officer, Director
John C Textor Kevin C Ambler Casey L Cummings Kaleil Isaza Tuzman John W Kluge Jeffrey W Lunsford
Mr. Jonathan F Teaford
Sharehoders (the first twenty shareholders ordered by Direct %) Rating:
PBC GP III LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
US 37.88 -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
23.15 -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
0 2012/06
Address : Not available
Rating:
TEXTOR JOHN C. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2012/06
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
COMVEST CAPITAL II, LP Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 7.71 -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
-
Operating Revenue (MIL $)
Rating:
TEAFORD JONATHAN F. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
5.26 -
Total Assets (MIL $) Number of Employees Information date
US 0.98
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
2012/06
Rating:
EMPERY ASSET MANAGEMENT LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
0 2012/06
0 2012/06
Address : Not available
Rating:
WALL STREET ASSOCIATES LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
0.89
2.6
Total Assets (MIL $) Number of Employees Information date
20 2012/03
Rating:
BB
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
9081 179896 10100
0.72
Information date
2012/03
US 0.23
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address : Not available
0.20
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct %
US -
Total % Address : Not available
Rating:
STATE OF CALIFORNIA via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
2012/03
Rating:
GRT CAPITAL PARTNERS via its funds
Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
0 2012/03
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
WILLIAM BLAIR & COMPANY LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 0.11
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Not available.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
511.4 0 2012/03
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
DIGITAL DOMAIN MEDIA GROUP, INC.
Thursday, 13 September 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741