raised its third-quarter revenue outlook to a range of $36 million to $38 million, up from its previous guidance of $33 million to $35 million, as a result of strong sales of its DVDs during the holiday season.
The Chatsworth-based distributor of entertainment DVD titles to retailers also said it was lowering its full-year revenue guidance to a range of $112 million to $117 million, down from its previous outlook of $115 million to $120 million. The new revenue forecast reflects the rescheduling of two of Image's new releases and the Jan. 12 Chapter 11 bankruptcy filing of its Musicland Holding Corp. subsidiary. Musicland accounted for about 5 percent of its revenues in the first nine months of fiscal 2006. Musicland's reorganization is not expected to have a long-term negative effect on Image's revenues.
- Platinum Equity acquired Boyd Coddington specialty wheels from NRG Motorsports, Inc., a manufacturer and distributor of automotive aftermarket parts and accessories. Terms of the deal were not disclosed. Beverly Hills-based Platinum purchased the portion of NRG that designs, manufactures and markets premium aluminum wheels and acquired a license to use their corresponding trademarks. The deal also establishes a consulting agreement with Boyd Coddington, the founder of NRG and host of the Discovery Channel show "American Hot Rods."
- Archer Entertainment Media Communications Inc. signed a letter of intent to acquire privately held Shenzhen, China-based Creations Technology Development Co. Ltd.'s Alpha D-Cinema unit, including all of its interests to convert movie theaters in China to the digital projection format. The L.A.-based entertainment company's A-China Entertainment unit will focus on converting cinemas to the format and building new digital cinemas across China. A joint venture corporation is being set up in Beijing for the companies to work together on the project.
- The Sports Club Co. Inc. announced that it completed the sale of five of its nine sports and fitness Clubs to an affiliate of Millennium Entertainment Partners for $80 million. The clubs sold to Millennium include the company's interest in Reebok Sports Club/NY, and The Sports Club/LA in Washington, D.C., Boston, San Francisco and New York City.
The L.A.-based the company also closed a $60 million financing of the Sports Club/LA Los Angeles property. Proceeds from these transactions were used to retire $100 million of debt. Chief Executive Rex A. Licklider said the transactions "place the company in a substantially strengthened financial position and provide the basis for our future growth and development."
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