“The recent release of the first film by an Oscar-nominated director almost concurrently in theaters, DVD, and video-on-demand has added considerable uncertainty to a mature and highly competitive industry already reliant on unpredictable Hollywood content and high fixed costs.”
“The rating reflects the company's high leverage, weak profit margins relative to peers, participation in a highly competitive industry, and reliance on the popularity of Hollywood films.”
“The rating reflects the company's geographic concentration in the western and midwestern states, high leverage, usage of debt to fund a large special dividend, relatively aggressive expansion plan, participation in a highly competitive industry, and reliance on the unpredictable popularity of Hollywood films.”
