Entertainment Services Strategic and Operational Finance Experience for the Entertainment Industry Every industry has its own set of strategic finance challenges and nuances, but the field of entertainment can be particularly difficult to navigate. Money and reputations are on the line, and a single poor strategic decision can devastate a studio, production house, or other enterprise. Industry experience can make all the difference. We are Hyper Local We know entertainment industry finance, and our entertainment practice is based in and focused on Los Angeles. Our firm includes 55+ Professionals with deep entertainment and media experience in planning, analysis, reporting, industry-specific financial software applications, transaction support and a range of other practice areas. Our Experience 8020 Consulting provides specialized finance and accounting entertainment services across a broad spectrum of Entertainment Businesses and Segments including the following: PRODUCTION DISTRIBUTION PARKS AND RECREATION TV EST and DTO-Electronic Sell Through and Download to Own CONTENT Cable Franchise Reporting EHV/VOD Theatrical Premium Video On-Demand Music Transactional Video On-Demand ENTERTAINMENT CONTROLLERSHIP Subscription Video On-Demand Corporate Consolidations Special Effects Fee/Advertising Video On-Demand Pay per View LIVE EVENTS THV-Traditional Home Video and Physical Sell Through Event Management Basic and Premium Cable TV Live Performance Broadcast Network TV Multi-Channel Networks GAMING Licensing Video Games Stores/Retail Entertainment Apps Our team has performed work in the following companies and more: Featured Members of our Consulting Team: Scott John Devon Scott Longacre is an Ernst & Young CPA John Woolard is an Arthur Andersen Devon Coleman is an MBA from the with 20 years of finance and accounting CPA with over 25 years of experience in University of Wisconsin at Madison and experience in a variety of companies both Project Consulting and Executive has 20 years of Financial Planning and including STX Entertainment, MGO, Management positions in companies Analysis and Data Management experience DreamWorks Animation, Awesomeness, including, Walt Disney Studio, Warner in companies including, Walt Disney Paramount Pictures, Technicolor, DMX Bros., New Regency Productions, Post- Feature Animation, Warner Bros., MarVista Music, Cinetech Inc., and Walt Disney Logic Studios, DreamWorks, Virgin Entertainment and GoDigital Media Group. Pictures and Television. During this time, Entertainment, MGA Entertainment, Devon has extensive experience in the Scott has project managed multiple Lantern Entertainment, WIIP and Mob strategy development and implementation systems implementations, performed Scene. John has served as CFO and of Entertainment acquisitions, Asset strategic analysis of film and television Corporate Controller and on a project- valuations, Specialized Financial Planning products, overseen the post-merger basis has implemented a variety of and Analysis, Model building, system accounting integration efforts of several initiatives at all stages of a company implementations and system integrations companies, re-engineered short- and lifecycle, including early stage forecasting, of RightsLine with Anaplan and other long-term forecasts and driven efficiency controls and financial reporting to Enterprise Performance Management tools. in process in multiple work streams and preparing a company for sale. John has functions. additionally implemented offshoring and new offices in international territories and has supported the turnaround efforts of several companies. Examples of Entertainment Projects our professionals have performed: ACCOUNTING AND FINANCIAL REPORTING x Researched accounting pronouncements and other x Built Accounting infrastructure for a newly formed applicable authoritative literature to determine $25M entertainment industry focused joint venture. x Provided due diligence and purchase accounting the proper recording, reporting, and disclosure of Included establishing accounting procedures, support to the CFO of Worldwide media company complex business transactions and accounting issues, both prior to and after the transaction. including acquisitions and business combinations contracts to determined proper accounting treatment (ASC 805), stock compensation (ASC 718), and the creating first year financial statements, reviewing x Created and managed the accounting function of a Company’s recapitalization, in accordance with US information. newly created Digital Talent Management business. GAAP. and working with Operations to establish flow of x Partnered with the Vice President / Controller of x Provided guidance, oversight and support to x Prepared monthly analysis and journal entries for Brand Development Accounting to convert revenue production cost accounting staff across various certain complex areas and non-recurring transactions recognition practices from cash basis to accrual basis content verticals. including accounts receivable reserves, capitalized and continually reviewed and maintained ledgers to x Built Accounting infrastructure for a newly formed production costs, non-standard revenue recognition, support the new recognition method. $25M entertainment industry focused joint venture. etc. x Implemented new reporting processes and chart Included establishing accounting procedures, creating x related production costs, residuals and participations. producer of live television programing. Developed determine proper accounting treatment and working Recorded and reconciled film ultimate revenues and accompanyingof accounts for reportsamortization for staff of usefilm while rights performing for first-year financial statements, reviewing contracts to x Conducted Post-Acquisition evaluation and the monthly close process, as well as developed assessment of newly acquired Film Company’s x withCreated operations and maintained to establish revenue flow recognitionof information. models reporting for management and executive review. for branded entertainment and licensing revenue and procedures. x Re-constructed Equity Structure for producer and streams. finance and accounting team and key processes x Integrated newly acquired $675M Studio into x Researched and advised GAAP accounting treatment inception (dealing with internal and external distributor of film and television content from on a diversity of transactions including studio Attorney’s) and worked with Auditors to ensure consolidation, realignment of multiple revenue acquisitions (e.g., VIE analysis), litigation settlements understanding and answer all questions. streams,Interactive balance Media sheet Group, cleanup, including JV re-evaluation,financial account and ASC 606 Revenue Recognition considerations earn-out calculation and strategic planning and (private company implementation) for interactive analysis. gaming company. FINANCIAL PLANNING & ANALYSIS x x Managed the design and implementation of the new Created and maintained 5-year cash flow projection character equity and discretionary bonus to talent x modelDesigned which and contained created annual detailed Budget cash forflows Worldwide by show. Post Production consisting of Theatrical, Episodic, this involved senior executives, talent contracts and Marketing, Mastering and Sound P&Ls (Revenue to changesprocess forin responsibilities entertainment bookand calculations. and film publisher; OCF) across four international business units. x Evaluated series performance and recommended x Developed and maintained complex analysis and optimal participations payout to achieve 2 goals: models in Excel to provide key business insights reward talent for past performance and align talents’ and recommendations partnering with Network, Production and Sales execs to evaluate title for future projects. creative goals with management’s profitability goals x Put early stage cash forecasting tools in place, x profitabilityDeveloped detail for Greenlights. budget and forecasts for a multi- channel network with multiple revenue streams for startup TV production company. Worked with (YouTube distribution, syndication distribution, investorsinternal controls and private and financialequity group reporting on funding capabilities of the brand integration, original IP, and merchandising). x Leveraged Excel’s advanced Power Pivot & x businessCreated production, and early stage overhead financing. and development Power Query functionality to build custom, easily spend budget model and accompanying budget maintainable “middleware” translating the output of presentation for company investors for early stage legacy ultimates models into new, driver-based model production company. inputs for upload into a new ultimates solution. x Led consultant due diligence team that served as x Heavily-involved with CFO in all Due Diligence Requirements (working with Jefferies and PwC) potential purchase of a media company that had surrounding the acquisition of the Company by financial advisor to a management team on the Major Hollywood Studio. x recentlyOversaw filed the compilation for chapter 11of duebankruptcy. diligence materials, x including revenue ultimates by title and genre, cash support for a joint venture transaction ($100M combinedProvided due revenues) diligence involving and financial the Digital modeling Services region for a potential equity capital investment. business. Preparedflow by title projected and genre, revenue and revenue by title throughby geographic 2027 for all titles in the company’s film