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Digital Cinema Destinations Corp. (Digiplex) Reports Fiscal 2013 First Quarter and Ongoing Progress



  Digital Cinema Destinations Corp. (Digiplex) Reports Fiscal 2013 First
  Quarter and Ongoing Progress

Business Wire

WESTFIELD, N.J. -- November 13, 2012

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 first quarter financial
results for the three-month period ended September 30, 2012.

TELEPHONE: 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
                                      
                                       September 30,
(in thousands)                         2012        2011
Total revenue                          $ 4,347     $ 980
Net loss                                 (661    )   (264   )
                                                    
Theater level cash flow (1)              967         191
Adjusted EBITDA (1)                      339         (98    )
                                                    
Theaters (2)                             9           3
Screens (2)                              85          19
Average attendance per screen (3)        5,656       4,446
Average admission per patron           $ 7.23      $ 8.78
Average concessions sales per patron   $ 2.88      $ 2.36
Total attendance (in thousands) (3)      416,132     84,491

      Theater level cash flow and adjusted EBITDA are supplemental non-GAAP
(1)   financial measures. Reconciliations of these metrics to the net loss for
      the three months ended September 30, 2012 and 2011, are included in the
      supplementary tables accompanying this news announcement.
(2)   As of September 30, 2012
      Total attendance and average per screen attendance for the three-month
(3)   period ended September 30, 2012 include the Lisbon 12 cinema
      contribution for only two days, September 29 and 30, 2012.
       

Digiplex Chairman and CEO Bud Mayo stated, “At this stage of our corporate
evolution we are first and foremost focused on achieving rapid screen growth
through an opportunistic industry consolidation strategy with a goal of
ultimately expanding our footprint to 100 theaters and 1000 screens located in
the top 100 DMAs. We are actively seeking acquisitions of solid-performing
theaters that we can make even better by capitalizing upon our unique
expertise in operating on a digital cinema platform, including utilizing best
practices in deploying alternative programming and social media to materially
grow attendance, while also benefiting from on-screen advertising revenues,
virtual print fee generation and overall operating efficiencies and enhanced
economies of scale.

“At quarter-end, we completed the acquisition of a state-of-the-art, fully
digital 12-plex theater based in Lisbon, CT, raising the Digiplex circuit
screen count to 85. We also simultaneously announced the receipt of a
five-year, $10 million senior secured term loan from Northlight Trust I. The
proceeds from this loan were utilized to fund the Lisbon purchase, and to pay
Barco, Inc. for digital projection systems that were previously installed in
48 of our PA-based auditoriums, with the balance covering fees and expenses
associated with the loan and working capital.”

DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)
 
                                                    September 30,   June 30,
                                                    2012            2012
                                                    (unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents                           $  1,449        $ 2,037
Accounts receivable                                    491            238
Inventories                                            77             78
Deferred financing costs, current portion              62             -
Prepaid expenses and other current asset               316            381     
                                                                     
Total current assets                                   2,395          2,734
Property and equipment, net                            20,686         15,432
Goodwill                                               1,521          980
Intangible assets, net                                 4,112          4,114
Security deposit                                       3              3
Deferred financing costs, long term portion            249            -
Other assets                                           11             14      
                                                                     
TOTAL ASSETS                                        $  28,977       $ 23,277  
                                                                     
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses               $  1,616        $ 1,939
Payable to vendor for digital systems                  -              3,334
Notes payable, current portion                         360            1,000
Earn out from theater acquisition, current             79             79
portion
Deferred revenue                                       13             31
Dividends payable                                      1              -       
                                                                     
Total current liabilities                              2,069          6,383
NONCURRENT LIABILITIES
Notes payable, long term portion                       9,642          190
Earn out from theater acquisition, long term           550            -
portion
Unfavorable leasehold liability, long term             185            190
portion
Deferred rent expense                                  125            83
Deferred tax liability                                 49             39      
                                                                     
TOTAL LIABILITIES                                      12,620         6,695   
                                                                     
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred Stock, $0.1 par value, 10,000,000
shares authorized as of September 30, 2012 and
June 30, 2012, 6 and 0 shares of Series B              -              -
Preferred Stock outstanding as of September 30,
2012 and June 30, 2012, respectively
Class A Common stock, $.01 par value: 20,000,000
shares authorized and 4,519,452 shares issued and      45             45
outstanding
Class B Common stock, $.01 par value, 900,000
shares authorized and 900,000 shares issued and        9              9
outstanding
Additional paid-in capital                             19,721         19,285
Accumulated deficit                                    (3,418  )      (2,757 )
                                                                     
Total stockholders’ equity                             16,357         16,582  
                                                                     
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY          $  28,977       $ 23,277  
                                                                              

DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share data)
 
                                                 Three Months Ended
                                                 September 30,
                                                  
                                                 2012            2011
REVENUES
Admissions                                       $ 3,009         $ 742
Concessions                                        1,199           199
Other                                              139             39         
                                                                  
Total revenues                                     4,347           980        
                                                                  
COSTS AND EXPENSES
Cost of operations:
Film rent expense                                  1,439           328
Cost of concessions                                164             40
Salaries and wages                                 513             143
Facility lease expense                             523             120
Utilities and other                                741             158
General and administrative                         737             321
Depreciation and amortization                      849             129        
                                                                  
Total costs and expenses                           4,966           1,239      
                                                                  
OPERATING LOSS                                     (619      )     (259      )
OTHER EXPENSE
Interest expense                                   (23       )     -
Non-cash interest expense                          (2        )     -          
                                                                  
LOSS BEFORE INCOME TAXES                           (644      )     (259      )
Income tax expense                                 17              5          
                                                                  
NET LOSS                                         $ (661      )   $ (264      )
                                                                  
Preferred stock dividends                          (1        )     (73       )
                                                                  
Net loss attributable to common stockholders     $ (662      )   $ (337      )
                                                                  
Net loss per Class A and Class B common share    $ (0.12     )   $ (0.23     )
– basic and diluted
Weighted average common shares outstanding         5,419,452       1,469,166

 
SUPPLEMENTARY NON-GAAP RECONCILIATIONS

THEATER LEVEL CASH FLOW AND ADJUSTED EBITDA

(Unaudited)

($ in thousands)
 
                                                           Three Months Ended
                                                          
                                                           September 30,
                                                           2012       2011
Net loss                                                   $ (661 )   $ (264 )
Depreciation and amortization                                849        129
Interest expense                                             25         -
Income tax expense                                           17         5     
                                                                       
EBITDA                                                     $ 230      $ (130 )
Stock-based compensation                                     43         16
Non-recurring organizational and M&A-related                 66         16    
professional fees
                                                                       
Adjusted EBITDA                                            $ 339      $ (98  )
                                                                       
General and administrative expenses (1)                      628        289   
                                                                       
Theater level cash flow                                    $ 967      $ 191   
                                                                              

(1) Excludes stock-based compensation and non-recurring organizational and
M&A-related professional fees

Disclosure Regarding Forward-Looking Statements

This press release and other written or oral statements made by or on behalf
of Digital Cinemas Destination Corp. may contain forward-looking statements
within the meaning of the federal securities laws. Statements that are not
historical facts, including statements about our beliefs, expectations and
future performance, are forward-looking statements. Forward-looking statements
are only predictions and are not guarantees of performance. These statements
are based on beliefs and assumptions of management, which in turn are based on
currently available information. The forward-looking statements also involve
risks and uncertainties, which could cause actual results to differ materially
from those contained in any forward-looking statement. Many of these factors
are beyond our ability to control or predict. Risk factors are disclosed in
our Form S-1 under the caption “Risk Factors.” We believe these
forward-looking statements are reasonable; however, undue reliance should not
be placed on any forward-looking statements, which are based on current
expectations. Further, forward-looking statements speak only as of the date
they are made, and we undertake no obligation to update publicly any of them
in light of new information or future events.

About Digital Cinema Destinations Corporation (www.digiplexdest.com)

Digital Cinema Destinations Corp. is dedicated to transforming its movie
theaters into interactive entertainment centers. The Company provides
consumers with uniquely satisfying experiences, combining state-of-the-art
digital technology with engaging, dynamic content that far transcends
traditional cinematic fare. The Company’s customers enjoy live sports events,
concerts, conferences, operas, videogames, auctions, fashion shows and, on an
ongoing basis, the very best major motion pictures. Digiplex operates nine
cinemas and 85 screens in PA, NJ and CT. You can connect with Digiplex via
Facebook, Twitter, YouTube and Blogger. Digiplex is also participating in
DigiNext, a unique, specialty content joint venture (with Nehst Studios)
featuring curated content from festivals around the world. DigiNext releases
typically include innovative live Q&A sessions between the audience and cast
members.

Contact:

Digital Cinema Destinations Corp.
Bud Mayo, Chairman/CEO
908/396-1362 or bmayo@digiplexdest.com
or
JCIR
Robert Rinderman or Jennifer Neuman
212/835-8500 or DCIN@jcir.com
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