Digital Cinema Destinations Corp. (NasdaqCM: DCIN) (Digiplex), a fast-growing motion picture exhibitor dedicated to transforming movie theaters into digital entertainment centers, today reported its fiscal 2013 first quarter financial results for the three-month period ended September 30, 2012.
TELEPHONE: 800 404 5245. Please call at least five minutes in advance to ensure that you are connected.
WEBCAST: live webcast is available through the Investor Relations section of Digiplex’s website at www.digiplexdest.com. A webcast replay will be available and accessible for at least 30 days following the live event.
SUMMARY AND SUPPLEMENTARY FINANCIAL DATA (unaudited) | |||||||
| Three Months Ended September 30, | |||||||
| (in thousands) | 2012 | 2011 | |||||
| Total revenue | $ | 4,347 | $ | 980 | |||
| Net loss | (661 | ) | (264 | ) | |||
| Theater level cash flow (1) | 967 | 191 | |||||
| Adjusted EBITDA (1) | 339 | (98 | ) | ||||
| Theaters (2) | 9 | 3 | |||||
| Screens (2) | 85 | 19 | |||||
| Average attendance per screen (3) | 5,656 | 4,446 | |||||
| Average admission per patron | $ | 7.23 | $ | 8.78 | |||
| Average concessions sales per patron | $ | 2.88 | $ | 2.36 | |||
| Total attendance (in thousands) (3) | 416,132 | 84,491 | |||||
| (1) | Theater level cash flow and adjusted EBITDA are supplemental non-GAAP financial measures. Reconciliations of these metrics to the net loss for the three months ended September 30, 2012 and 2011, are included in the supplementary tables accompanying this news announcement. | |
| (2) | As of September 30, 2012 | |
| (3) | Total attendance and average per screen attendance for the three-month period ended September 30, 2012 include the Lisbon 12 cinema contribution for only two days, September 29 and 30, 2012. | |
Digiplex Chairman and CEO Bud Mayo stated, “At this stage of our corporate evolution we are first and foremost focused on achieving rapid screen growth through an opportunistic industry consolidation strategy with a goal of ultimately expanding our footprint to 100 theaters and 1000 screens located in the top 100 DMAs. We are actively seeking acquisitions of solid-performing theaters that we can make even better by capitalizing upon our unique expertise in operating on a digital cinema platform, including utilizing best practices in deploying alternative programming and social media to materially grow attendance, while also benefiting from on-screen advertising revenues, virtual print fee generation and overall operating efficiencies and enhanced economies of scale.
“At quarter-end, we completed the acquisition of a state-of-the-art, fully digital 12-plex theater based in Lisbon, CT, raising the Digiplex circuit screen count to 85. We also simultaneously announced the receipt of a five-year, $10 million senior secured term loan from Northlight Trust I. The proceeds from this loan were utilized to fund the Lisbon purchase, and to pay Barco, Inc. for digital projection systems that were previously installed in 48 of our PA-based auditoriums, with the balance covering fees and expenses associated with the loan and working capital.”
DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | ||||||||
September 30, | June 30, | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,449 | $ | 2,037 | ||||
| Accounts receivable | 491 | 238 | ||||||
| Inventories | 77 | 78 | ||||||
| Deferred financing costs, current portion | 62 | - | ||||||
| Prepaid expenses and other current asset | 316 | 381 | ||||||
| Total current assets | 2,395 | 2,734 | ||||||
| Property and equipment, net | 20,686 | 15,432 | ||||||
| Goodwill | 1,521 | 980 | ||||||
| Intangible assets, net | 4,112 | 4,114 | ||||||
| Security deposit | 3 | 3 | ||||||
| Deferred financing costs, long term portion | 249 | - | ||||||
| Other assets | 11 | 14 | ||||||
| TOTAL ASSETS | $ | 28,977 | $ | 23,277 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | 1,616 | $ | 1,939 | ||||
| Payable to vendor for digital systems | - | 3,334 | ||||||
| Notes payable, current portion | 360 | 1,000 | ||||||
| Earn out from theater acquisition, current portion | 79 | 79 | ||||||
| Deferred revenue | 13 | 31 | ||||||
| Dividends payable | 1 | - | ||||||
| Total current liabilities | 2,069 | 6,383 | ||||||
| NONCURRENT LIABILITIES | ||||||||
| Notes payable, long term portion | 9,642 | 190 | ||||||
| Earn out from theater acquisition, long term portion | 550 | - | ||||||
| Unfavorable leasehold liability, long term portion | 185 | 190 | ||||||
| Deferred rent expense | 125 | 83 | ||||||
| Deferred tax liability | 49 | 39 | ||||||
| TOTAL LIABILITIES | 12,620 | 6,695 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred Stock, $0.1 par value, 10,000,000 shares authorized as of September 30, 2012 and June 30, 2012, 6 and 0 shares of Series B Preferred Stock outstanding as of September 30, 2012 and June 30, 2012, respectively | - | - | ||||||
| Class A Common stock, $.01 par value: 20,000,000 shares authorized and 4,519,452 shares issued and outstanding | 45 | 45 | ||||||
| Class B Common stock, $.01 par value, 900,000 shares authorized and 900,000 shares issued and outstanding | 9 | 9 | ||||||
| Additional paid-in capital | 19,721 | 19,285 | ||||||
| Accumulated deficit | (3,418 | ) | (2,757 | ) | ||||
| Total stockholders’ equity | 16,357 | 16,582 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 28,977 | $ | 23,277 | ||||
DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) | ||||||||
| Three Months Ended September 30, | ||||||||
| 2012 | 2011 | |||||||
| REVENUES | ||||||||
| Admissions | $ | 3,009 | $ | 742 | ||||
| Concessions | 1,199 | 199 | ||||||
| Other | 139 | 39 | ||||||
| Total revenues | 4,347 | 980 | ||||||
| COSTS AND EXPENSES | ||||||||
| Cost of operations: | ||||||||
| Film rent expense | 1,439 | 328 | ||||||
| Cost of concessions | 164 | 40 | ||||||
| Salaries and wages | 513 | 143 | ||||||
| Facility lease expense | 523 | 120 | ||||||
| Utilities and other | 741 | 158 | ||||||
| General and administrative | 737 | 321 | ||||||
| Depreciation and amortization | 849 | 129 | ||||||
| Total costs and expenses | 4,966 | 1,239 | ||||||
| OPERATING LOSS | (619 | ) | (259 | ) | ||||
| OTHER EXPENSE | ||||||||
| Interest expense | (23 | ) | - | |||||
| Non-cash interest expense | (2 | ) | - | |||||
| LOSS BEFORE INCOME TAXES | (644 | ) | (259 | ) | ||||
| Income tax expense | 17 | 5 | ||||||
| NET LOSS | $ | (661 | ) | $ | (264 | ) | ||
| Preferred stock dividends | (1 | ) | (73 | ) | ||||
| Net loss attributable to common stockholders | $ | (662 | ) | $ | (337 | ) | ||
| Net loss per Class A and Class B common share – basic and diluted | $ | (0.12 | ) | $ | (0.23 | ) | ||
| Weighted average common shares outstanding | 5,419,452 | 1,469,166 | ||||||
SUPPLEMENTARY NON-GAAP RECONCILIATIONS THEATER LEVEL CASH FLOW AND ADJUSTED EBITDA (Unaudited) ($ in thousands) | ||||||||
| Three Months Ended September 30, | ||||||||
| 2012 | 2011 | |||||||
| Net loss | $ | (661 | ) | $ | (264 | ) | ||
| Depreciation and amortization | 849 | 129 | ||||||
| Interest expense | 25 | - | ||||||
| Income tax expense | 17 | 5 | ||||||
| EBITDA | $ | 230 | $ | (130 | ) | |||
| Stock-based compensation | 43 | 16 | ||||||
| Non-recurring organizational and M&A-related professional fees | 66 | 16 | ||||||
| Adjusted EBITDA | $ | 339 | $ | (98 | ) | |||
| General and administrative expenses (1) | 628 | 289 | ||||||
| Theater level cash flow | $ | 967 | $ | 191 | ||||
(1) Excludes stock-based compensation and non-recurring organizational and M&A-related professional fees
Disclosure Regarding Forward-Looking Statements
This press release and other written or oral statements made by or on behalf of Digital Cinemas Destination Corp. may contain forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs, expectations and future performance, are forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of management, which in turn are based on currently available information. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Risk factors are disclosed in our Form S-1 under the caption “Risk Factors.” We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
About Digital Cinema Destinations Corporation (www.digiplexdest.com)
Digital Cinema Destinations Corp. is dedicated to transforming its movie theaters into interactive entertainment centers. The Company provides consumers with uniquely satisfying experiences, combining state-of-the-art digital technology with engaging, dynamic content that far transcends traditional cinematic fare. The Company’s customers enjoy live sports events, concerts, conferences, operas, videogames, auctions, fashion shows and, on an ongoing basis, the very best major motion pictures. Digiplex operates nine cinemas and 85 screens in PA, NJ and CT. You can connect with Digiplex via Facebook, Twitter, YouTube and Blogger. Digiplex is also participating in DigiNext, a unique, specialty content joint venture (with Nehst Studios) featuring curated content from festivals around the world. DigiNext releases typically include innovative live Q&A sessions between the audience and cast members.
Bud Mayo, Chairman/CEO
908/396-1362 or bmayo@digiplexdest.com
or
JCIR
Robert Rinderman or Jennifer Neuman
212/835-8500 or DCIN@jcir.com