Relativity Expects Cash Flow from 13 Films Slated for Release

by San Antonio Attorney

Relativity Media projected to turn in cash flow after two years, due to cash flows from 13 out of 14 film releases.  These movies include Immortals 2, Hunter Killer, The Crow, Kidnap, and Masterminds, according to a recent filing in U.S. Bankruptcy Court.

In the past, the company hardly every shared its financial forecast, particularly for specific films.  However, Relativity has to convince the court on Dec.  2 to approve the reorganization plan to waive their Chapter 11 Bankruptcy Protection.  The presiding judge over the bankruptcy case is Judge Michael Wiles.

Relativity estimated that it will have $51.6 million loss in cash flow on $351 million in revenues by the end of 2016.  The film unit will anticipate losing $33 million on $301.8 million in revenues.

Digital operations will bill up to $19.1 million, along with scripted TV and music that also contribute up to $6.8 million in cash flow.  The anticipated total will be positive $105.6 million in 2017 on $744.0 million in revenues.

Three years from now, Relativity hopes to see $212.0 million in cash flow on $909.4 million in revenues.

Other sources of income such as advertising and marketing will be aided by a collaborator named Aperture Media Partners and EMP Media Partners.

According to a separate filing, both will work hand in hand to raise $250 million for funds.

Relativity movies that are projected to earn millions are:

The Crow, which will release in February 2017, is estimated to earn $107.7 million in lifetime sales, leaving $38.5 million after its $70.5 million in distribution costs.

The movie, “Immortals 2,” which is set to have its premiere in November 2017, is projected to earn $146.1 million in lifetime sales, leaving $28.1 million after its $119.3 million in distribution costs.

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