Santa Monica Company Announces Acquisition

Mirror staff

   Intervisual Books, Inc. (IBI), Santa Monica, a leading creator and producer of interactive pop-up books for children and adults, has acquired the privately held Fast Forward Marketing, Inc., Marina del Rey, a sales organization that distributes video and audio products for motion picture studios, including Walt Disney, Warner Brothers, Universal, Paramount and 20th Century Fox, as well as independent producers.
   Dan Reavis, IBI’s executive vice president and chief financial officer, confirmed that IBI has acquired all of Fast Forward’s stock in exchange for 670,000 shares of IBI’s common stock and future payments of up to $350,000 in cash.
   Norm Sheinman, president and chief operating officer of IBI, said, “Based on Fast Forward’s 1998 preliminary results, we expect the acquisition to double IBI’s 1999 sales to over $30 million and to contribute to improved bottom line performance.
   “Since its founding by Steven Ades in 1987, Fast Forward has built an account base of more than 4,000 retailers, including national chains such as Toys R Us, Blockbuster, Target, Borders, Musicland and Best Buy as well as specialty retailers such as Zany Brainy, Store of Knowledge, Noodle Kidoodle, Gumboree,, Books a Million and Internet retailers.
   “Upon completion of this transaction, Steven and...his organization are expected to join IBI.” Ades will be named to the IBI board and become president of its new New Media and Audio Division. Vice president and chief financial officer of Fast Forward, Steve Selsky, will become IBI’s senior vice president of finance and operations and its vice president of sales, Steve Wallace, will become IBI’s senior vice president of sales.
   IBI’s net sales foe the first quarter of 1999, historically its weakest quarter, increased 31% to $1,519,054 from $1.157,783 for the first quarter of 1998. Reflecting a 30% reduction in the loss from operations, the net loss for the first quarter of 1999 was $383,377 or $.09 per share, which included $150,000 of licensing income.
   Sheinman said, “IBI’s improved first quarter performance is an encouraging sign that we are moving in the right direction...We are also encouraged by the enthusiastic response to IBI’s new titles presented to our publishing partners at the International Books Fair in Bologna in April and to U.S. publishers and booksellers at the BookExpo American fair in Los Angeles in early May.”
   In discussing the acquisition of Fast Forward, Sheinman said, it “allows us to activate a three-tiered marketing plan: we will continue to sell packaged book products to our major U.S. and international publishing partners; The Fast Forward sales force will enable us to expand and accelerate the marketing of IBI’s self-published Piggy Toes and Pop-Up Press titles to major trade accounts. The Company will also benefit from increased video sales into new accounts who are currently existing IBI customers and have never been offered a program for purchasing home video products;
   Fast Forward’s 4,000 accounts, including national chains and specialty retailers, will be able to offer customers a choice selection from IBI’s book line and the 55,000 videos and DVDs from Fast Forward’s catalogue.”