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

)