Digiplex Fiscal 2013 Q3 Revenue Rises Ninefold Reflecting Continued Screen Growth
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 Ended | Nine 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) | 1,123 | 217 | 3,426 | 585 | ||||||||||||||||||
Adjusted EBITDA (1) | 398 | (165 | ) | 1,252 | (421 | ) | ||||||||||||||||
Theaters | 18 | 3 | 18 | 3 | ||||||||||||||||||
Average screens | 172 | 19 | 113 | 19 | ||||||||||||||||||
Average attendance per screen | 4,429 | 4,155 | 15,532 | 12,167 | ||||||||||||||||||
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) | 764 | 79 | 1,762 | 231 | ||||||||||||||||||
(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, | |||||||||
2013 | 2012 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
CURRENT ASSETS | ||||||||||
Cash and cash equivalents | $ | 3,134 | $ | 2,037 | ||||||
Accounts receivable | 739 | 238 | ||||||||
Inventories | 159 | 78 | ||||||||
Deferred financing costs, current portion | 267 | - | ||||||||
Prepaid expenses and other current assets | 1,217 | 381 | ||||||||
Total current assets | 5,516 | 2,734 | ||||||||
Property and equipment, net | 28,084 | 15,432 | ||||||||
Goodwill | 4,576 | 980 | ||||||||
Intangible assets, net | 5,268 | 4,114 | ||||||||
Security deposit | 168 | 3 | ||||||||
Deferred financing costs, long term portion, net | 977 | - | ||||||||
Other assets | 290 | 14 | ||||||||
TOTAL ASSETS | $ | 44,879 | $ | 23,277 | ||||||
LIABILITIES AND EQUITY | ||||||||||
CURRENT LIABILITIES | ||||||||||
Accounts payable | $ | 2,051 | $ | 1,939 | ||||||
Accrued expenses | 3,016 | 3,334 | ||||||||
Payable to vendor for digital systems | - | 3,334 | ||||||||
Notes payable, current portion | 1,045 | 1,000 | ||||||||
Capital lease, current portion | 94 | - | ||||||||
Earn out from theater acquisitions, current portion | 550 | 79 | ||||||||
Deferred revenue | 378 | 31 | ||||||||
Total current liabilities | 7,134 | 6,383 | ||||||||
NONCURRENT LIABILITIES | ||||||||||
Notes payable, long term portion | 8,957 | - | ||||||||
Capital lease, net of current position | 289 | - | ||||||||
Unfavorable leasehold liability, long term portion | 167 | 190 | ||||||||
Deferred rent expense | 275 | 83 | ||||||||
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 | 54 | 45 | ||||||||
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 | 9 | 9 | ||||||||
Additional paid-in capital | 25,431 | 19,285 | ||||||||
Accumulated deficit | (6,091 | ) | (2,757 | ) | ||||||
TOTAL STOCKHOLDERS' EQUITY OF DIGITAL CINEMA DESTINATIONS CORP. | 19,403 | 16,582 | ||||||||
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 Ended | Nine Months Ended | |||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
REVENUES | ||||||||||||||||||||||
Admissions | $ | 5,985 | $ | 695 | $ | 13,746 | $ | 2,087 | ||||||||||||||
Concessions | 2,461 | 213 | 5,589 | 614 | ||||||||||||||||||
Other | 319 | 68 | 647 | 174 | ||||||||||||||||||
Total revenues | 8,765 | 976 | 19,982 | 2,875 | ||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||
Cost of operations: | ||||||||||||||||||||||
Film rent expense | 2,844 | 304 | 6,698 | 902 | ||||||||||||||||||
Cost of concessions | 413 | 40 | 895 | 107 | ||||||||||||||||||
Salaries and wages | 1,155 | 109 | 2,378 | 397 | ||||||||||||||||||
Facility lease expense | 1,514 | 122 | 2,847 | 370 | ||||||||||||||||||
Utilities and other | 1,848 | 203 | 3,733 | 532 | ||||||||||||||||||
General and administrative | 1,365 | 409 | 3,311 | 1,083 | ||||||||||||||||||
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 | ) | |||||||||||||||||
