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