Random Thoughts 93

Posted on 12/9/2004 by Jim Pickerell | Printable Version | Comments (0)



December 9, 2004

Amana/Zefa Rumor FALSE

Amana CEO David Neilson sent me the following correction to Story (685) that I published on Tuesday concerning a rumor about amana's interest in Zefa.

"The rumor about amana inc. considering making an offer for Zefa Visual Media imminently is completely untrue. I can confirm that amana was one of a number of parties invited to consider the purchase of Zefa Visual Media back in September. Amana backed out of the process almost immediately without submitting any form of bid and has not been involved since. My understanding [and I must stress this is only my understanding of the situation] is that Corbis Images and Zefa Visual Media have entered a period of exclusivity in terms of their discussions with a view to transact a sale in the near future."

Getty Announces Financial Guidance for 2005

Getty Images, Inc. has announced its financial guidance for 2005 as part of its 2004 Analyst Day in New York City. For 2005, the company expects revenue growth of 12 to 14 percent, resulting in annual revenue of approximately $690 million to $700 million. The company expects an operating margin of approximately 30 percent and diluted earnings per share for 2005 of $2.05 to $2.15.

The company also reaffirmed guidance for the full year of 2004, with revenue of approximately $615 million and diluted earnings per share of approximately $1.70.

The above guidance for 2004 and 2005 assumes consummation, by year end, of the company's offer to exchange up to $265.0 million aggregate principal amount of its newly issued 0.5% Convertible Subordinated Debentures, Series B due 2023 for an equal amount of its outstanding 0.5% Convertible Subordinated Debentures due 2023. If the exchange offer is not consummated, the company would expect diluted earnings per share for 2005 to be $1.94 to $2.04 and for 2004 to be approximately $1.61.

Guidance for 2005 does not include costs related to the expensing of stock-based compensation, which is expected to become mandatory in mid-2005 based on the Financial Accounting Standards Board issuing its final statement.

The breakdown of revenue for the various lines of business is expected to be as follows: (The figures are in millions of dollars.)













Other Services  









The company expects a 5% growth in RM volumes in 2005 and an average price increase of 2%. The RF volume growth will be about 7% and the price increase is expected to be about 10%.

Editorial is expected to grow by about 18% and Film by about 15%. In the film area about 7% of the growth will be due to volume increase and 7% due to price.

In the Other category photo assignments grew in 2004 by about 30% and are expected to grow by another 40% next year. It was pointed out that assignments were never expected to generate major revenue for the company, but that being able to offer this service is extremely important in building customer relationships and being able to provide customers with a full range of services including RM, RF and Media Asset Management. About $4 million of "Other" will be from Publicity Distribution and the company expects growth in Media Management Services as well.

Copyright © 2004 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


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