Category: A21 Group
a21, Inc. (OTCBB: ATWO) is considered by industry experts to rank among the top 10 largest stock photography companies in the world. a21 was formed as an investment company in 2000 which acquired the stock photography agency SuperStock in 2004 and moved into SuperStock's headquarters in Jacksonville Florida. In 2005 they acquired Ingram Publishing Ltd., a UK-based provider of subscription and Royalty-Free images and print price guides. The following year a21 acquired ArtSelect, an Iowa-based provider of online technology and fulfillment infrastructure for retailers in the custom framed Art and Wall Décor market. In late 2007 a21 announced plans to launch a new stock photography business named MediaMagnet intended to be “A vibrant community site for creative professionals.”
Key executives:
John Z. Ferguson - Chief Executive Officer
Thomas Costanza - Vice President, Chief Financial Officer
Bruce D. Slywka - Executive Vice President of Sales and Marketing
News
A21 reports upbeat 3Q06
A21 Group, owner of Superstock and ArtSelect, has reported 3Q06 results showing significantly improved operating performance over the 2nd quarter. Year over year comparisons showed a dramatic increase in revenue of 190% from the 3rd quarter of 2005 to this most recent quarter. Those figures reflect, however, the added revenue from two acquisitions made earlier this year, those of Art Select, a consumer art and framing business and Ingram Publishing, a royalty-free image production company. Year-over-year, revenue showed organic growth for the third quarter of 10%.
News
John Ferguson, former Getty executive, to become CEO at A21
The A21 Group, owners of Superstock and ArtSelect, announced today the appointment of John Z. Ferguson to the position of Chief Executive Officer of the company. Mr. Ferguson has also joined A21’s Board of Directors. At the same time, the company announced the appointment of interim president and Chief Operating Officer, Philip Garfinkle to the position of Executive Chairman. Mr. Ferguson served most recently as Senior Vice President of Sales – Americas at Getty Images, after having managed sales at Art.com Getty’s on-line art delivery subsidiary. He left Getty in October of 2005 after seven years with the company.
News
A21 reports 2nd Quarter 2006 results
A21 Group, owner of Superstock and ArtSelect, reported an increase in net revenue of 94% from 2Q05 to 2Q06, rising from $2.3MM to $4.5MM. Of that 94% growth, 84% came from the acquisitions of ArtSelect and Ingram Publishing earlier this year, and 9% came from organic growth. We can extrapolate that ArtSelect and Ingram contributed $1.975MM of revenue, while real organic growth at Superstock was $209K. Over the same period, growth in expenses outpaced revenue growth, however, resulting in greater losses. The Cost of Revenue jumped 137% and Selling, General and Administrative expenses nearly doubled, causing the company’s gross loss to increase from $0.7MM in 2Q 05 to $1.7MM in 2Q 06 and its negative Earnings Before Interest, Taxes, Depreciation and Amortization to increase from a loss of $343K to a loss of $990K.
News
a21, Inc has terminated the employment of Thomas V. Butta
According to a Form 8-K filed by a21, Inc. the owner of SuperStock and ArtSelect, the employment of Tom Butta, the President of a21 and the Chief Executive Officer of SuperStock, was terminated on June 19th. a21 board member Philip N. Garfinkle has been appointed interim President and Chief Operating Officer at A21 and interim President and Chief Operating Officer of SuperStock. The report states "The Company and Mr. Butta are negotiating the terms of a termination agreement." This news follows the recent departure of Haim Ariav the former President and Chief Creative Officer of SuperStock.
News
a21 has acquired ArtSelect
Jacksonville Florida based a21 Inc, owner of SuperStock, PureStock, and Ingram Publishing, has announced the acquisition of ArtSelect one of the leading companies offering wall décor and fine art prints online. The Fairfield Iowa based, ArtSelect, employs approx 65 employees providing private label online technology and fulfillment infrastructure to catalogers, retailers and distributors to allow them to offer custom framed art to their end-customers. a21 is touting that ArtSelect earned $12 million in revenue for 2005 giving a21 a revenue increase of approximately 100%. To complete the purchase a21 paid $4.5 million in cash, $2.35 million in three year 6% interest only notes, $3.15 million in a21 Series A Convertible Preferred shares (with a conversion floor of $0.75 per a21 common share), and a four year warrant to purchase 750,000 a21 common shares at $1.00 per share.
News
a21 reports 1st quarter 2006 financial results
A21 Group, owner of SuperStock, PureStock, and Ingram Publishing, posted $2,935K in revenue for the first quarter of 2006, a 27% increase over the first quarter of last year. The company credits 90% of the increase ($561K) to the acquisition of Ingram Publishing which took place in October of last year. This indicates the company achieved only 2.7% organic growth in revenue from 1Q 2005 to 1Q 2006. The company's gross profit margin remained unchanged from the 2005 to the 2006 period at just over 69%.
News
A21 raises $15.5MM Private Investment
A21, Inc., owner of SuperStock, PureStock, and Ingram Publishing, has raised $15.5 million in the form of a private placement of Secured Convertible Notes with both existing investors and new institutional investors. Most notable among the latter, Morgan Stanley, purchased $5 million of the Notes. The Notes, due March 2011, bear interest at 5% per annum, and are convertible into shares of the Company's common stock at $0.65 per share, which was about A21’s stock price as of the end of trading last week. The Company will use the proceeds to repay existing debt, to provide working capital, and for acquisitions and expansion. Chairman and CEO of a21, Albert H. Pleus, said, “We are pleased that this investor group recognizes the progress the Company has made by electing to complete this financing at a premium to the current market price of our common stock." He added, "While about 50% of the Notes were purchased by our existing investors, we have also added some very important new investors to the Company. The financing allows us to improve our capital structure, retire certain outstanding warrants, strengthen our balance sheet, and support the next phase of the Company's growth." Click here for more details.
News
A21 SuperStock Posts $4.7MM Loss for 2005
A21 Group, owner of SuperStock, PureStock, and Ingram Publishing, reported its 2005 full-year results, posting a net loss of $4.8MM on revenue of $9.6MM. Compared to adjusted(*) figures for 2004, this represents a 7% increase in the company’s gross sales and a near doubling of its net loss. The company’s gross profit margin decreased from 70% to 68% as its cost of revenue rose at a faster rate than revenue. Management attributes this relative increase in the cost of revenue to the normal fluctuations in the proportions of higher vs. lower commission imagery it licenses. Conversely, Selling General and Administrative expenses dropped as a percentage of revenue leading to a relatively flat negative EBITDA of $928K in 2005 vs. an adjusted $834K in 2004.
News
A21/Superstock taps industry veterans to help guide company
A21/Superstock has hired several high-level employees recently with direct experience in the stock photo industry in an effort to round out its management team with seasoned players.
Stock industry veteran Ellen Boughn has joined A21 SuperStock as its VP, Content Strategy and Product Manager of Rights-Managed Content. Ms. Boughn, who founded AfterImage in 1976 and later sold that company to Tony Stone in 1992, most recently served as VP at Uppercut Images, the RM division of PunchStock. She has worked for other major stock photo companies, including Corbis, and served as an industry consultant. Ms. Boughn’s responsibilities will include recruiting new photographers and producing new imagery for both the RF and RM collections at Superstock.
News
a21 Opens new office in London
a21/Superstock has announced the opening of a new London Office to be used as the headquarters for the company's European operations and provide a base for sales, marketing, product development and customer support in the UK. The new office will house a staff of 20 individuals lead by Cathal Sheehy, former Director and co-owner at Ingram Publishing. a21/SuperStock acquired Ingram Publishing in the fall of 2005, Mr. Sheehy has been responsible for the integration of SuperStock's and Ingram's European operations. According to Thomas V. Butta, CEO of SuperStock, "This new expanded office in London provides a platform to move into the next phase of growth in Europe. More importantly, it will help us to satisfy and maintain strong relationships with our clients, especially in the UK market." Click here to view the original press release.
News
a21 reports third quarter financial results
A21 Group / Superstock, has reported the 3rd
quarter financial results for the period ending September 30, 2005. According to
the press release revenues
for the third quarter of 2005 were $2,064,000 compared to $2,077,000 for the
same period in 2004. Net loss for the third quarter of 2005 was $1,343,000 or
$0.03 per share, versus a net loss of $1,046,000, or $0.03 per share, for the
same period in 2004.
However, A closer look at the company’s SEC filings
raises questions not answered in the press-release.
News
a21 has jumped into the subscription pool
a21 just announced that it has acquired UK based Ingram publishing allowing a21 to join competitors Getty, Jupiter, and others in offering a Royalty Free subscription product. Ingram currently has approx 100,000 images available from www.ingramstock.com as single images, on CD’s, or through its new subscription product. "In particular, we are very excited about the launch of IngramStock.com and the opportunity it provides to expand SuperStock's offerings to include an innovative subscription product with multi-language and multi-currency capabilities." said Thomas V. Butta, a21 Vice-Chairman and President. a21 recently closed 3.2 million in financing and has wasted little time putting the new capital to good use. The specific terms of this deal are not yet known.
News
A21 finds 3.2 million Pot O Gold
A21 (The parent company of SuperStock) has raised $3.2 million through the sale of the company's common stock. "This financing, in addition to the $1.2 million raised in September, not only provides us with the capital to execute our business plan, but allowed us to minimize dilution by using existing warrants," said Albert H. Pleus, Chairman and CEO of a21. It is not known yet what A21 is intending to do with the money. Click here to review the Press Release.
