Digiplex Fiscal 2013 Q2 Revenue Rises More Than Seven-Fold to $6.9 Million Reflecting Significant Sc

Digiplex Fiscal 2013 Q2 Revenue Rises More Than Seven-Fold to $6.9 Million Reflecting Significant Screen Growth

Achieves Substantial Increases in Key Operating Metrics Including Theater Level Cash Flow, Adjusted EBITDA and Average Attendance per Screen

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 second quarter financial results for the three-month period ended December 31, 2012.

DATE/TIME: Today, 2/14/13 at 4:30 p.m. ET

TELEPHONE:800/406-7408. 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 Ended

December 31,

Six Months Ended

December 31,

(in thousands)

2012

2011

2012

2011

Total revenue

$

6,870

$

920

$

11,216

$

1,899

Net loss

(1,234

)

(321

)

(1,897

)

(587

)

Theater level cash flow (1)

1,466

178

2,432

368

Adjusted EBITDA (1)

599

(127

)

934

(224

)

Theaters (2)

16

3

16

3

Average screens (3)

96

19

85

19

Average attendance per screen (3)

6,420

3,565

12,149

8,012

Average admission per patron

$

7.71

$

9.60

$

7.52

$

9.14

Average concessions sales per patron

$

3.13

$

2.98

$

3.03

$

2.63

Total attendance (in thousands) (3)

617

68

1,033

152

(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 December 31, 2012 and 2011, are included in the supplementary tables accompanying this news announcement.

(2)

As of December 31, 2012 and 2011, respectively

(3)

Total attendance and average per screen attendance for the three-month period ended December 31, 2012 include a contribution from the seven acquired UltraStar theaters based in CA and AZ for the 13-day average stub period prior to 12/31/12. For the six-month period ended December 31, 2012, total attendance and average per screen attendance includes the contribution from UltraStar noted previously, and a contribution from the Lisbon theater in Connecticut for a 94-day stub period prior to 12/31/12.


Digiplex Chairman and CEO Bud Mayo stated, "We continue to make significant progress in strategically expanding Digiplex's theater and screen footprint in leading markets around the country. At the end of our fiscal second quarter we were up to 159 screens in 16 locations, and added another two theaters with an aggregate of 19 screens in Sparta, NJ and Solon, OH subsequent to Q2. We are transforming each acquired facility into a digital entertainment center that adds significant incremental value to our operating base through accretive revenue, EBITDA and free cash flow generation. Digiplex has come a long way in less than a year since our April 2012 IPO and we are well positioned to achieve the 100 location/1000 screen goal we set for ourselves as a corporate milestone, and in the process we will continue to focus on creating incremental value for all our stakeholders."

DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

December 31,

2012

June 30,

2012

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

3,129

$

2,037

Accounts receivable

600

238

Inventories

162

78

Deferred financing costs, current portion

267

-

Prepaid expenses and other current assets

486

381

Total current assets

4,644

2,734

Property and equipment, net

29,859

15,432

Goodwill

4,343

980

Intangible assets, net

4,152

4,114

Security deposit

8

3

Deferred financing costs, long term portion

1,039

-

Other assets

80

14

TOTAL ASSETS

$

44,125

$

23,277

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable and accrued expenses

$

3,674

$

1,939

Payable to vendor for digital systems

-

3,334

Notes payable, current portion

688

1,000

Capital lease, current portion

17

-

Earn out from theater acquisitions, current portion

79

79

Deferred revenue

513

31

Total current liabilities

4,971

6,383

NONCURRENT LIABILITIES

Notes payable, long term portion

9,300

-

Capital lease, net of current position

79

-

Earn out from theater acquisition, long term portion

550

-

Unfavorable leasehold liability, long term portion

176

190

Deferred rent expense

173

83

Deferred tax liability

89

39

TOTAL LIABILITIES

15,338

6,695

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

Preferred Stock, $0.1 par value, 10,000,000 shares authorized as of December 311, 2012 and June 30, 2012, 6 and 0 shares of Series B Preferred Stock outstanding as of December 31, 2012 and June 30, 2012, respectively

-

-

Class A Common stock, $.01 par value: 20,000,000 shares authorized and 5,134,656 and 4,519,452 shares issued and outstanding as of December 31, 2012 and June 30, 2012, respectively

51

45

Class B Common stock, $.01 par value, 900,000 shares authorized and issued and outstanding as of December 31, 2012 and June 30, 2012, respectively

9

9

Additional paid-in capital

25,381

19,285

Accumulated deficit

(4,561

)

(2,757

)

TOTAL STOCKHOLDERS' EQUITY OF DIGITAL CINEMA DESTINATIONS CORP.

20,880

16,582

Non-controlling interest

7,907

-

TOTAL LIABILITIES AND EQUITY

$

44,125

$

23,277

DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


(In thousands, except share and per share data)

Three Months Ended

December 31,

Six Months Ended

December 31,

2012

2011

2012

2011

REVENUES

Admissions

$

4,752

$

650

$

7,761

$

1,392

Concessions

1,929

202

3,128

401

Other

189

68

327

106

Total revenues

6,870

920

11,216

1,899

COSTS AND EXPENSES

Cost of operations:

Film rent expense

2,417

270

3,855

598

Cost of concessions

317

28

482

68

Salaries and wages

710

144

1,224

288

Facility lease expense

811

128

1,334

248

Utilities and other

1,141

172

1,881

329

General and administrative

1,208

352

1,946

673

Depreciation and amortization

1,098

132

1,947

262

Total costs and expenses

7,702

1,226

12,669

2,466

OPERATING LOSS

(832

)

(306

)

(1,453

)

(567

)

OTHER EXPENSE

Interest expense

(272

)

-

(294

)

-

Non-cash interest expense

(75

)

-

(78

)

-

Other expense

(8

)

-

(8

)

-