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

  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  Business Wire  WESTFIELD, N.J. -- February 14, 2013  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             Six Months Ended                                                                                December 31,                   December 31,       (in                 2012         2011            2012         2011       thousands)       Total               $ 6,870        $ 920           $ 11,216       $ 1,899       revenue       Net loss              (1,234 )       (321  )         (1,897 )       (587  )                                                                                          Theater       level cash            1,466          178             2,432          368       flow (1)       Adjusted              599            (127  )         934            (224  )       EBITDA (1)              Theaters              16             3               16             3       (2)       Average               96             19              85             19       screens (3)       Average       attendance            6,420          3,565           12,149         8,012       per screen       (3)       Average       admission           $ 7.71         $ 9.60          $ 7.52         $ 9.14       per patron       Average       concessions         $ 3.13         $ 2.98          $ 3.03         $ 2.63       sales per       patron       Total       attendance       (in                   617            68              1,033          152       thousands)       (3)            Theater level cash flow and adjusted EBITDA are supplemental           non-GAAP financial measures. Reconciliations of these metrics to the   (1)  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           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     (3)   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,     June 30,                                                   2012             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                 1,039           - portion 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,                 79              79 current portion 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             550             - term portion Unfavorable leasehold liability, long term          176             190 portion 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                     51              45 outstanding as of December 31, 2012 and June 30, 2012, respectively Class B Common stock, $.01 par value, 900,000 shares authorized and issued and            9               9 outstanding as of December 31, 2012 and June 30, 2012, respectively Additional paid-in capital                          25,381          19,285 Accumulated deficit                                (4,561  )      (2,757 )                                                                               TOTAL STOCKHOLDERS’ EQUITY OF DIGITAL               20,880          16,582 CINEMA DESTINATIONS CORP. 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                Six Months Ended                      December 31,                      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             2,417           270               3,855           598 expense Cost of               317             28                482             68 concessions Salaries and          710             144               1,224           288 wages Facility lease        811             128               1,334           248 expense Utilities and         1,141           172               1,881           329 other General and           1,208           352               1,946           673 administrative Depreciation and                  1,098         132             1,947         262        amortization                                                                                      Total costs and      7,702         1,226           12,669        2,466      expenses                                                                                      OPERATING LOSS        (832      )     (306      )       (1,453    )     (567      ) OTHER EXPENSE Interest              (272      )     -                 (294      )     - expense Non-cash interest              (75       )     -                 (78       )     - expense Other expense        (8        )    -               (8        )    -                                                                                               LOSS BEFORE           (1,187    )     (306      )       (1,833    )     (567      ) INCOME TAXES Income tax           47            15              64            20         expense                                                                                      NET LOSS            $ (1,234    )   $ (321      )     $ (1,897    )   $ (587      )                                                                                      Net loss attributable to      93            -               93            -          non-controlling interest                                                                                      Net loss attributable to Digital Cinema      $ (1,141    )   $ (321      )     $ (1,804    )   $ (587      ) Destinations Corp. Preferred stock      (5        )    (80       )      (6        )    (153      ) dividends                                                                                      Net loss attributable to     $ (1,146    )   $ (401      )     $ (1,810    )   $ (740      ) common stockholders                                                                                      Net loss per Class A and Class B common      $ (0.21     )   $ (0.28     )     $ (0.33     )   $ (0.51     ) share – basic and diluted Weighted average common        5,511,765       1,469,166         5,465,356       1,469,166 shares outstanding                                                                                                                                                              SUPPLEMENTARY NON-GAAP RECONCILIATIONS  THEATER LEVEL CASH FLOW AND ADJUSTED EBITDA  (Unaudited)  ($ in thousands)                                                                                Three Months Ended        Six Months Ended                               December 31,              December 31,                              2012        2011         2012        2011 Net loss                     $ (1,234 )   $ (321 )     $ (1,897 )   $ (587 ) Depreciation and               1,098        132          1,947        262 amortization Interest expense               347          -            372          - Income tax expense             47           15           64          20                                                                                  EBITDA                       $ 258        $ (174 )     $ 486        $ (305 ) Stock-based                    26           16           69           33 compensation Non-recurring organizational and            315        16         362        28    M&A-related professional fees                                                                               Adjusted EBITDA              $ 599       $ (142 )     $ 917       $ (224 )                                                                               General and administrative                867        320        1,515      612   expenses (1)                                                                               Theater level cash           $ 1,466     $ 178       $ 2,432     $ 368   flow (2)    (1)  Excludes stock-based compensation and non-recurring organizational           and M&A-related professional fees           Represents theater level cash flow on a consolidated basis,     (2)   including the results of the Start Media / Digiplex, LLC joint           venture for an approximate 13-day average stub-period prior to           December 31, 2012. See Form 10-Q for further information.             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 and pre-recorded alternative programming such as concerts, operas, ballets, sporting events, conferences, interactive videogames, auctions, fashion shows and, on an ongoing basis, the very best major motion pictures.As of February 1, 2013, Digiplex operates 18 cinemas and 178 screens in AZ, CA, CT, NJ, OH and PA. 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.  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 10-K for the year ended June 30, 2012 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.  Contact:  Digital Cinema Destinations Corp. Bud Mayo Chairman/CEO 908-396-1362 bmayo@digiplexdest.com or JCIR Robert Rinderman or Jennifer Neuman Investor Relations/Corporate Communications 212-835-8500 DCIN@jcir.com  
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