Digiplex Fiscal 2013 Q3 Revenue Rises Ninefold Reflecting Continued Screen Growth

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Digiplex Fiscal 2013 Q3 Revenue Rises Ninefold Reflecting Continued Screen Growth

- Achieves Improvements in Key Metrics -

WESTFIELD, N.J.--(BUSINESS WIRE)-- 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 third quarter financial results for the three-month period ended March 31, 2013.


DATE/TIME: Today, 5/14/13 at 4:30 p.m. ET

TELEPHONE:800/707-8454. Please call at least five minutes in advance to be 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 EndedNine Months Ended
March 31,   March 31,
(in thousands)

2013

 

2012

2013

 

2012

Total revenue$8,765$976$19,982$2,875
Net loss(2,151)(315)(4,047)(903)
 
Theater level cash flow (1)1,1232173,426585
Adjusted EBITDA (1)398(165)1,252(421)
               
Theaters183183
Average screens1721911319
Average attendance per screen4,4294,15515,53212,167
Average admission per patron$7.84$8.81$7.80$9.03
Average concessions sales per patron$3.22$2.69$3.17$2.65
Total attendance (in thousands)764791,762231
 
(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 and nine months ended March 31, 2013 and 2012 are included in the supplementary tables accompanying this news announcement. These metrics as shown above are net of Start Media's share of these items.

Digiplex Chairman and CEO Bud Mayo stated, "Our organization's top priority continues to be achieving disciplined screen growth as we focus on ultimately expanding Digiplex's footprint to the 100 location/1000 screen goal we set as a corporate milestone. In fiscal Q3 we added two additional theaters with an aggregate of 19 screens in Solon, OH and Sparta, NJ, raising screen count 12% sequentially. It often takes a few quarters to get new locations up-and-running on Digiplex's comprehensive digital platform.

"Once fully integrated, we focus on further enhancing attendance and theater level cash flow through a disciplined strategy that encompasses offering a wide array of alternative content, including our own curated DigiNext titles. We also deploy a full complement of social media and targeted marketing in order to generate a two-way dialog with both existing and new patrons, driving additional traffic to our theaters.

"In early April, we hosted a ribbon-cutting for the Solon location, highlighting completion of the digital conversion and some additional cosmetic enhancements. Within the 16-plex, we rebranded four of the auditoriums as the Arts Center 4, which is a 'theater within the theater.' These auditoriums offer a unique blend of alternative programming, one of our key differentiators, as we stay on the cutting-edge of digital cinema presentation, offering our valued patrons a true 'peek at the future of theatrical exhibition.'

"Looking ahead, we maintain a robust and active pipeline of potential theater acquisition candidates, and we have the capacity and liquidity to grow utilizing additional capital from our Start Media JV as well as the new shelf offering, which was filed subsequent to quarter-end," concluded Mr. Mayo.

    
DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
March 31,June 30,
20132012
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$3,134$2,037
Accounts receivable739238
Inventories15978
Deferred financing costs, current portion267-
Prepaid expenses and other current assets 1,217  381 
 
Total current assets5,5162,734
Property and equipment, net28,08415,432
Goodwill4,576980
Intangible assets, net5,2684,114
Security deposit1683
Deferred financing costs, long term portion, net977-
Other assets 290  14 
 
TOTAL ASSETS$44,879 $23,277 
 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$2,051$1,939
Accrued expenses3,0163,334
Payable to vendor for digital systems-3,334
Notes payable, current portion1,0451,000
Capital lease, current portion94-
Earn out from theater acquisitions, current portion55079
Deferred revenue 378  31 
 
Total current liabilities7,1346,383
 
NONCURRENT LIABILITIES
Notes payable, long term portion8,957-
Capital lease, net of current position289-
Unfavorable leasehold liability, long term portion167190
Deferred rent expense27583
Deferred tax liability 61  39 
 
TOTAL LIABILITIES 16,906  6,695 
 
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY

Preferred Stock, $0.1 par value, 10,000,000 shares authorized as of March 31, 2013 and

June 30, 2012, 6 and 0 shares of Series B Preferred Stock issued and outstanding as of

March 31, 2013 and June 30, 2012, respectively

--

Class A Common stock, $.01 par value: 20,000,000 shares authorized and 5,442,880 and

4,519,452 shares issued and outstanding as of March 31, 2013 and June 30, 2012, respectively

5445

Class B Common stock, $.01 par value, 900,000 shares authorized; 865,000 shares and

900,000 shares issued and outstanding as of March 31, 2013 and June 30, 2012, respectively

99
Additional paid-in capital25,43119,285
Accumulated deficit (6,091) (2,757)
 
TOTAL STOCKHOLDERS' EQUITY OF DIGITAL CINEMA DESTINATIONS CORP.19,40316,582
Noncontrolling interest 8,593  - 
 
TOTAL LIABILITIES AND EQUITY$44,879 $23,277 
 
        
DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except share and per share data)
 
Three Months EndedNine Months Ended
March 31,March 31,
 

2013

    

2012

 

 

 

2013

  

2012

 
REVENUES
Admissions$5,985$695$13,746$2,087
Concessions2,4612135,589614
Other 319  68  647  174 
 
Total revenues 8,765  976  19,982  2,875 
 
COSTS AND EXPENSES
Cost of operations:
Film rent expense2,8443046,698902
Cost of concessions41340895107
Salaries and wages1,1551092,378397
Facility lease expense1,5141222,847370
Utilities and other1,8482033,733532
General and administrative1,3654093,3111,083
Change in fair value of earn out(79)(20)(79)(20)
Depreciation and amortization 1,439  125  3,385  387 
 
Total costs and expenses 10,499  1,292  23,168  3,758 
 
OPERATING LOSS(1,734)(316)(3,186)(883)
OTHER EXPENSE
Interest expense(326)-(620)<
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