Attached files
| file | filename |
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| 8-K - FORM 8-K - BLOCKBUSTER INC | d8k.htm |
 Blockbuster Inc.
Annual Meeting of Stockholders
June 2010
Exhibit 99.1 |
 2
Disclosure Regarding Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements may also be included from time to time in our other public
filings, press releases, our website and oral and written presentations by management.
Specific forward-looking statements can be identified by the fact that they do not relate strictly to
historical or current facts and include, without limitation, words such as “may,”
“will,” “expects,” “believes,” “anticipates,”
“plans,” “estimates,” “projects,” “predicts,” “targets,” “seeks,” “could,” “intends,” “foresees” or the
negative of such terms or other variations on such terms or comparable terminology. Similarly,
statements that describe our strategies, initiatives, objectives, plans or goals are
forward-looking. These forward-looking statements are based on management’s current intent, belief,
expectations, estimates and projections. These statements are not guarantees of future
performance and involve risks, uncertainties, assumptions and other factors that are difficult
to predict. Therefore, actual results may vary materially from what is expressed in or
indicated by the forward-looking statements. The risk factors set forth under “Item 1A. Risk Factors”
in our Annual Reports on Form 10-K and other matters discussed from time to time in our filings
with the Securities and Exchange Commission, including the “Disclosure Regarding
Forward-Looking Information” and “Risk Factors” sections of our Quarterly
Reports on Form 10-Q, among others, could affect future results, causing these results to
differ materially from those expressed in our forward-looking statements.
In the event that the risks disclosed in our public filings and those discussed above cause results to
differ materially from those expressed in our forward-looking statements, our business,
financial condition, results of operations or liquidity could be materially adversely affected
and investors in our securities could lose part or all of their investments. Accordingly,
our investors are cautioned not to place undue reliance on these forward-looking statements
because, while we believe the assumptions on which the forward-looking statements are based are
reasonable, there can be no assurance that these forward-looking statements will prove to be
accurate. Further, the forward-looking statements included in this presentation and those included from time
to time in our other public filings, press releases, our website and oral and written
presentations by management are only made as of the respective dates thereof. We
undertake no obligation to update publicly any forward-looking statement in this
presentation or in other documents, our website or oral statements for any reason, even if new
information becomes available or other events occur in the future.
|
 3
Financial Accomplishments
Recapitalization: a work in progress…
Eliminated final $24 million in letters of credit (“LCs”) related
to Viacom
In total, released approximately $70 million in restricted
cash
from
LCs
to
enhance
liquidity
Completed two successful refinancing actions during an
extremely challenging credit market
$250 million amended revolving credit facility in May 2009
$675 million 11.75% senior secured notes offering,
reducing 2010 amortization payments by over $300 million
and extending debt maturities
Reduced G&A by $306 million for the full year of 2009
Maintained capital expenditures at $30 million per year
Continued to aggressively manage working capital
Refinancing
Eliminated LC
Related to Viacom
Operational Efficiencies
Revenue share
Improved credit terms
Studio Cooperation |
   4
Progress on Recapitalization
We
have
made
progress
in
our
efforts
to
recapitalize
the
balance
sheet
and
continue to explore all possible options
Current Stakeholders
11.75% Senior Secured Notes
Due 2014
9% Senior Subordinated Notes
Due 2012
7.5% Convertible Preferred
Common A
Common B
Hollywood studios
Potential Strategic Investors
Technology
Media Distribution (cable /
satellite / telecom)
With a number of offers and counter-offers, it requires considerable
time to explore and assess all possible options |
 5
Integrated Approach Addresses Evolving Customer Needs
Consumers demand the entertainment experience deliver on several
functional
needs, and our integrated approach best addresses them
“New
Blockbuster”
Convenience
1
“I can get what I want, when I
want –
on my own schedule”
2
Choice/Variety
“I get the RIGHT movie plus I
have choices in how I get it”
3
Service/No Hassle
“I want an experience which does
not detract from leisure time”
4
Cost/Value
“I get value from renting when it
meets all my needs” |
 6
Window…
28-day advantage with three major studios, simplified pricing and
improved our product assortment
Store Accomplishments |
 7
By-Mail
Launched games by-mail roll out, established new strategic partnerships,
launched Direct Access and improved website |
 8
Future Stores with Automated Retail
…over 5,000 automated retail locations deployed to date, digital download
testing underway and retail titles available in July
|
 9
Digital Opportunities –
Blockbuster On Demand
Integrated in more than 70 different consumer electronic devices
and launched
mobile… |
 10
Blockbuster On Demand –
Multi-Screen Availability
Blockbuster can leverage brand across channels
to deliver content anyway, anywhere
–
Utilize customer database
–
Realize supply chain efficiencies
–
Deliver superior customer experience
Blockbuster’s multi-channel integration will enable the company to deliver
one customer view through multiple channels and universal “Get
It” functionality |
 11
Blockbuster: Anytime and Anywhere…
Blockbuster’s mission is to become the preferred choice for convenient access
to media entertainment -
anytime, anywhere –
with stores at the epicenter |
 Thank you for your ongoing support |