Digital Cinema Destinations Corp. (Digiplex) Reports Fiscal 2013 Fourth Quarter Increases in Revenue

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Digital Cinema Destinations Corp. (Digiplex) Reports Fiscal 2013 Fourth Quarter Increases in Revenue and Per Cap Metrics

- Theater Level Cash Flow and Adjusted EBITDA Also Rise Significantly -


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 fourth quarter and full-year financial results for the periods ended June 30, 2013. Management is hosting a conference call and webcast at 4:30 p.m. ET to review the results.

 
 

DATE/TIME:Today—Tuesday, September 17, 2013 at 4:30 p.m. ET

 

TELEPHONE: dial 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

June 30,

  Twelve Months Ended

June 30,

(in thousands)

2013

  

2012

2013

  

2012

Consolidated total revenue$11,201$3,796$31,184$6,671
Consolidated net loss(1,209)(1,002)(5,256)(1,967)
 
Consolidated theater level cash flow (1)1,9227015,6331,251
Adjusted EBITDA of Digital Cinema Destinations Corp. (1)888322,366(410)
           
Theaters (period end)188188
Average screens1786213030
Average attendance per screen5,6675,50622,01419,331
Average admission per patron$7.92$7.82$7.83$8.31
Average concessions sales per patron$3.45$3.04$3.27$2.89
Total attendance (in thousands)1,0093392,852570
 
  (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 twelve months ended June 30, 2013 and 2012 are included in the supplementary tables accompanying this news announcement.
 
 

Digiplex Chairman and CEO Bud Mayo stated, "The fiscal fourth quarter was a productive period for Digiplex and also for the U.S. box office. Industry admissions receipts grew approximately 7.8% versus the prior year and our Company achieved revenue, Adjusted EBITDA, and theater level cash flow increases, due to the 116 additional average screens under operation, compared to the 2012 fiscal fourth quarter, as well as internal operational improvements during a favorable box office environment.

"Of note, the 2013 fiscal fourth quarter marks the first time in our organization's short history that over one million patrons attended Digiplex's locations. We continue to focus on providing our valued customers with high quality service and a clean and friendly environment to enjoy the best selection of popular Hollywood titles, specially curated independent pictures and exciting alternative programming events. We are also driving incremental theater traffic through unique social media and targeted marketing strategies.

"An exciting development during fiscal Q4 was the opening of our first IMAX® location, at Digiplex's Surprise Pointe 14 theater in Arizona. We are extremely pleased to form a new alliance with IMAX® and will evaluate potential additional large format locations that feature their leading entertainment experience as the Digiplex circuit continues expanding. Subsequent to fiscal year-end, we also 4D-enabled an auditorium at our Solon, OH theater with the installation of immersive ButtKicker seating. We will continue experimenting with state-of-the-art technologies that further enhance the enjoyment of our guests.

"Throughout fiscal 2013, Digiplex opportunistically identified and completed acquisitions in attractive markets that adhere to our theater level cash flow and asset quality criteria. As a result, our organization nearly tripled its average screen count versus the prior year. We completed the purchase of a state-of-the art, fully digital 12-plex in Lisbon, CT during the fiscal first quarter, in fiscal Q2 we acquired seven theaters and 74 screens from UltraStar Cinemas on the west coast and we added two additional theaters with an aggregate of 19 screens in Solon, OH and Sparta, NJ during fiscal Q3. Additionally, subsequent to our year-end we acquired a 6-plex in Torrington, CT, further expanding the Company's circuit to 19 locations and 184 screens.

"We are proud of our achievements to date, but acknowledge that we are still in the early stages of expanding Digiplex's footprint to the 100 location/1000 screen goal we have set as a corporate milestone. Our top priority continues to be executing disciplined growth through opportunistic acquisitions. As we build scale, roll new theaters onto our digital platform, and leverage the Company's corporate infrastructure and operating disciplines, over time we expect to achieve meaningful improvements in both top- and bottom-line results," Mr. Mayo concluded.

      
 

DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 
June 30,

2013

June 30,

2012

ASSETS
CURRENT ASSETS
Cash and cash equivalents$3,607$2,037
Accounts receivable697238
Inventories19178
Deferred financing costs, current portion357-
Prepaid expenses and other current assets 1,444  381 
 
Total current assets6,2962,734
Property and equipment, net29,17115,432
Goodwill3,156980
Intangible assets, net6,1864,114
Security deposit2053
Deferred financing costs, long term portion, net1,225-
Other assets 9  14 
 
TOTAL ASSETS$46,248 $23,277 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable$2,478$851
Accrued expenses3,9641,088
Payable to vendor for digital systems-3,334
Notes payable, current portion1,3731,000
Capital lease, current portion121-
Earnout from theater acquisition29679
Deferred revenue 305  31 
 
Total current liabilities8,5376,383
 
NONCURRENT LIABILITIES
Notes payable, long term portion8,615-
Capital lease, net of current portion239-
Unfavorable leasehold liability, long term portion159190
Deferred rent expense40783
Deferred tax liability 199  39 
 
TOTAL LIABILITIES 18,156  6,695 
 
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY

Preferred Stock, $.01 par value, 10,000,000 shares authorized as of June 30, 2013 and 2012,
respectively; and 6 and 0 shares issued of Series B Preferred Stock issued and outstanding as
of June 30, 2013 and 2012, respectively

--
 

Class A Common Stock, $.01 par value, 20,000,000 shares authorized; 5,511,938 and
4,519,452 shares issued and outstanding as of June 30, 2013 and 2012, respectively

5545
 

Class B Common Stock, $.01 par value, 900,000 shares authorized; 865,000 and 900,000
shares issued and outstanding as of June 30, 2013 and 2012, respectively

99
 
Additional paid-in capital25,81619,285
Accumulated deficit (7,049) (2,757)
TOTAL STOCKHOLDERS' EQUITY OF DIGITAL CINEMA DESTINATIONS CORP18,83116,582
Noncontrolling interest 9,261  - 
 
Total Equity 28,092  16,582 
TOTAL LIABILITIES AND EQUITY$46,248 $23,277 
 
 
        
 

DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

 

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2013

2012

2013

2012

REVENUES
Admissions$7,578$2,651$21,305$4,738
Concessions3,3011,0328,8891,646
Other 322  113  990  287 
 
Total revenues 11,201  3,796 

 

31,184

  6,671 
 
COSTS AND EXPENSES
 
Cost of operations:
Film rent expense3,9961,48410,6942,387
Cost of concessions5951871,491294
Salaries and wages1,4124523,791849
Facility lease expense1,6004234,435821
Utilities and other2,0525945,7971,152
General and administrative1,7438555,0541,945
Change in fair value of earn out(254)-(333)(20)
Depreciation and amortization 665  760  4,049  1,147 
 
Total costs and expenses 11,809  4,755  34,978  8,575 
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