Everyman Media Share Discussion Threads

[boozey] 01/2/2024 10:49

It is PE so unless a third party bidder comes on board to bid I would not expect a major premium, should indeed an offer be forthcoming.

[everton448] 01/2/2024 10:47

So I am guessing that Blue Coast are about to make an offer for them - but I cannot see how they get the big shareholders who bailed them out during COVID to accept maybe 80p per share? Or do you think something else is going on?

[quepassa] 01/2/2024 10:46

The question is how quickly parties can act upon the share price before sparks start flying

[qs99] 01/2/2024 10:32

Finally market woken up

[quepassa] 01/2/2024 10:03

You don't need to be a rocket scientist to work out what is going on here....

[qs99] 01/2/2024 09:43

Yes maybe he took them to help a seller, but that is some big "help"!

Not sure why you would take 70p. Specific industry writer strikes hit company, but metrics IMO look pretty solid, plus picking up cinemas out of insolvency should IMO be a cheap "win"...let's see..

DYOR

[boozey] 01/2/2024 08:51

Who was selling that volume of shares? Especially at 56p? More like a kind of MBO rather than bid possible. But let's see. If we get 70p I would take it!

[qs99] 01/2/2024 08:47

so has bought c.4-5% of business post the trading update, and near to 29.9%....will he push to get to that figure? DYOR

[qs99] 01/2/2024 08:24

So now near to 29.9% stake, that is a material purchase.....bid coming? DYOR

[everton448] 31/1/2024 09:37

Your post appeared to me a criticism of the company - as if they were using the term director purchase inappositely, when they were not in fact using that term at all. That seemed to me to be unfair. That’s all. And that apart, I agree with you that the future for Everyman looks highly uncertain. Although arguably balanced to the upside since Blue Coast could not vote on a takeover proposal made by them, and the shares are tightly held by other major shareholders and directors who in aggregate own over 60 per cent and who presumably would not allow PE to buy the business cheaply - although I understand cheaply here is a chameleon word which takes its colour from the reader’s own view of value

[quepassa] 31/1/2024 09:21

1. I erroneously lifted up my terminolgy from previous post.

But you are right it is, to be accurate , a Director Shareholding notification.

I have amended my original post accordingly.



Who's digging at what??

[everton448] 31/1/2024 09:06

I'm not sure whether "they" call it a director purchase. Isn't this the required format (and descriptor) for purchases of this type? I agree with so much of what you say, and your criticism often seems justified particularly when set against the mindless, ignorant optimism of so many posters on this site - but this seems a little unfair as a dig

[quepassa] 31/1/2024 09:00

Well, they call it a Director Shareholding notification but it relates to a purchase by a Private Equity company where a certain Director has foot in both camps..

It's a purchase by a Private Equity Partnership called Blue Coast Private Equity L.P.

And they upped their stake to a massive 24.2% which is now within spitting distance of a 25% Declaration threshold.

So, the question on one's mind is whether Blue Coast may or may not make an approach at some indeterminate point or other in the future.

Blue Coast specialise in Hotels/Hospitality. See their easily-found website. It would seemingly be a fit for their portfolio.


You'd think this would stimulate the share price but, in my experience, when private equity start stake-building, they are very astute about prices and timing and patience. - And sometimes, rather than the share price going up, it mysteriously goes the other way.

Who can say, know or guess whether Everyman will still be a quoted company in a few years time or less - or whether it will be taken private on the cheap by PE??


ALL IMO. DYOR.
QP

[qs99] 31/1/2024 08:34

Another material director purchase DYOR

[quepassa] 24/1/2024 12:41

well, maybe not Hampstead because it is such a small historic cinema but the nearby Everyman in Muswell Hill - which has similar prices - and which is by comparison a massive cinema (ugly old converted Odeon) - is mostly like a ghost-town.

they grow audience numbers by increasing the estate of venues.

i'd much prefer to see seat occupancy rates/percentages - like airlines give.

and they never give a break-down of profitable venues vs. borderline profitable venues.

all imo. dyor.
qp

[everton448] 24/1/2024 12:16

Hi QuePassa - I am always interested in your thoughts on this business. You make an important point about relative costs; but I'm not sure if the demographic in NW3 is put off by £20 cinema tickets. Vue (say, on Finchley Road) has its market - but not the same one as the Hampstead Everyman.

[quepassa] 24/1/2024 07:00

They always give average seat prices but I cannot reconcile those figures with the prices in London

This is where it all began at the Everyman in Hampstead, London.

hXXps://www.everymancinema.com/venues-list/x06zw-everyman-hampstead/

Ticket prices:-

Adult £19.75
Concession £17.70
Child £15.15

PLUS ONLINE BOOKING FEE OF £2.25.

So an adult booking one ticket online costs £22.00

Vue is a third of the price.



ALL IMO. DYOR.
QP

[qs99] 23/1/2024 22:05

We have an EveryMan up the road. Slightly more expensive on food etc, but well worth the extra money, seats & environment are great, food is tasty and brought to your seat, its a great cinema experience

great deals for purchasing yearly tickets, mid-week deals etc etc....

they should try and get OAPs in during the week for special "oldie" film showings!

[boozey] 23/1/2024 10:04

One for the bottom drawer in my view and hope there is not another pandemic. Organic growth with some targeted acquisitions to grow the company may ultimately make it large enough to attract PE interest. Of course continued favourable market forces are the key factor so we need football to attend the next generation of movie blockbusters whatever they may be.

[qs99] 23/1/2024 07:30

So c.£76m EV with £16.2m EBITDA pencilled in and interims had £23m drawn facilities, but big H2 EBITDA may have helped reduce that or keep it same (as an assumption)

so 4.7 X EV/EBITDA with 44 venues and 152 screens up from interims 41 venues and 141 screens, with new venues / screens bought 15th December, so underlying operations should be up 10-15% so with their modus operandi, I'd like to think this EV/EBITDA ratio into 2024 is going to materially shrink, thus the opportunity.

Views?

DYOR as ever

[qs99] 23/1/2024 07:24

Thanks Boozey, not a bad result IMO given writer's strike etc.

let's see how market take it

[boozey] 23/1/2024 07:18

QS99, agreed, but slightly short of market expectations which were: Revenue GBP94.4m and Adjusted EBITDA of GBP17.2m.

[qs99] 23/1/2024 07:10

£16m EBITDA....great stuff, 2024 could be a corker as well given organic openings, possible opportunistic deals, IMO no reason they can't see the back of £20m EBITDA in next few years, making the market cap of c.£50m per ADVFN above look churlish....

Debt looks all manageable with new facilities as well

DYOR

[qs99] 23/12/2023 09:46

Indeed Boozey.

Looks wrong price IMO - management appear to be delivering, although would be good to see leverage come down a little, but with sizeable and growing EBITDA it looks more than manageable.

DYOR but have bought in size for NY trading update. Cinemas around me seem to be full, hoping that is a good sign!

[boozey] 22/12/2023 10:24

And a lot of Director buying in recent times...