HOLLYWOOD SOUND LEADER TO BUY INTERNATIONAL VIDEO.Byline: Dave McNary Daily News Staff Writer Todd-AO Corp. announced Thursday that it has agreed to buy Burbank-based post-production specialist International Video Conversions Inc. for an undisclosed price in a continuation of its aggressive expansion efforts. Todd-AO, the movie industry's dominant sound services specialist with 18 Academy Awards - including one for ``Apollo 13'' last year - said it expects the deal to close by the end of March. The acquisition will be its sixth since August 1994, leading to Todd-AO's video services accounting for about a third of its revenues compared with almost nothing three years ago. International Video Conversions provides a wide range of videotape videotape Magnetic tape used to record visual images and sound, or the recording itself. There are two types of videotape recorders, the transverse (or quad) and the helical. services, including work in the potentially lucrative high-definition television high-definition television (HDTV) Any system producing significantly greater picture resolution than that of the ordinary 525-line (625-line in Europe) television screen. Conventional television transmits signals in analog form. field. ``We believe this field could proliferate pro·lif·er·ate v. To grow or multiply by rapidly producing new tissue, parts, cells, or offspring. in the future,'' said Todd-AO President Salah Hassanein of IVC's work in HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates . ``We believe that this acquisition will reflect positively in the future earnings of our company,'' Hassanein said. IVC IVC abbr. inferior vena cava is owned mostly by Ken Holland, its chairman and chief executive officer. The deal calls for him to sign an employment contract with Todd-AO. Todd-AO stock was up -1/4 to 10-1/2 in Nasdaq trading Thursday. Analyst Steven E. Slawson of brokerage Brean Murray & Co. Inc. said the deal should boost Todd-AO's profits and added that he continues to recommend the stock. ``I feel very strongly that management would only be buying IVC if it will add to earnings immediately,'' he said. Slawson noted in a recent report that Los Angeles-based Todd-AO should be able to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, industry growth in revenues and profits as a result of such trends as the growth of digital technology, media globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation and consolidation within the post-production industry. ``We believe Todd-AO is uniquely qualified to leverage its leading position in sound mixing to other post-production services,'' he said. The analyst also indicated Todd-AO will continue to expand. ``We believe that the heightened capital expenditures will result in significant acquisition opportunities for Todd-AO,'' Slawson said. ``We anticipate that, through acquisitions, the company will be able to lift its 12 to 14 percent (annual) internal growth rate to better than 20 percent.'' Todd-AO currently operates 26 sound stages, including a scoring stage that can accommodate up to 150 musicians. Its recent acquisitions include Film Video Masters, Skywalker Sound South, Chrysalis chrysalis (krĭs`əlĭs): see pupa. Television, Filmatics and Editworks. |
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