Premier Exhibitions shareholder cites company's latest financials as evidence change is needed

By Lisa Kerner

Charlotte, N.C., Jan. 7 - Premier Exhibitions, Inc.'s latest earnings release shows that "the company's financial condition and core business continue to deteriorate," according to shareholder Sellers Capital LLC.

Sellers Capital said it believes that urgent action is necessary to improve the company's financial condition.

Premier Exhibitions indicated it may need additional capital resources in fiscal 2010 to continue operating, a Sellers Capital news release said.

According to the 16.3% shareholder, "Premier's current burn rate will cause it to run out of cash and fully use up any available borrowing capability under its credit facility within two to three months."

Sellers Capital is also concerned that Premier Exhibitions will lose access to its credit facility.

Premier Exhibitions also failed to address the resignations of its chief financial officer and chief accounting officer in its earnings release, Sellers Capital said.

Sellers Capital said Premier Exhibitions has waited too long to take actions it recommended, such as reducing the company's overhead cost structure and expanding its sales efforts.

In December, Premier Exhibitions urged its shareholders not to submit a consent solicited by Sellers Capital in connection with its bid to have four nominees elected to Premier Exhibitions' board of directors. The nominees are Christopher J. Davino, William M. Adams, Jack Jacobs and Bruce Steinberg.

Sellers Capital has also sought the resignation of Premier Exhibitions chairman and chief executive officer Arnie Geller.

Premier Exhibitions, located in Atlanta, develops tour exhibits and operates as the salvor-in-possession of the Titanic shipwreck.

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