Digiplex Reports Solid Fiscal 2014 First Quarter Results, Including Across-the-Board Per Cap Increases - Company Continues Achieving Circuit Growth and Operational Improvements - Business Wire WESTFIELD, N.J. -- November 7, 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 2014 first quarter financial results for the three-month period ended September 30, 2013. DATE/TIME: Today-Thursday, November 7, 2013 at 4:30 pm ET TELEPHONE: dial 800 268 5851. 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) 2013 2012 Consolidated total revenue $ 11,469 $ 4,347 Consolidated net loss (1,374 ) (661 ) Consolidated theater level cash flow (1) 1,829 1,009 Adjusted EBITDA of Digital Cinema 1,007 358 Destinations Corp. (1) Theaters (period end) 19 9 Average screens 183 73 Average attendance per screen 5,893 5,690 Average admission per patron $ 7.59 $ 7.23 Average concessions sales per patron $ 3.27 $ 2.88 Total attendance (in thousands) 1,077 416 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, 2013 and 2012 are included in the supplementary tables accompanying this news announcement. Digiplex Chairman and CEO Bud Mayo stated, “The September quarter was another productive period for Digiplex as well as for the overall U.S. box office, which rose more than 6%, buoyed by a record-setting summer slate. Importantly, our growing organization again achieved revenue, Adjusted EBITDA, and theater level cash flow increases, versus the year-ago period. Per screen attendance, admissions and concessions sales also trended higher in fiscal Q1 2014, compared to Q1 ’13 levels, over our considerably larger theater and screen base. “To support future circuit growth we successfully completed a $5.7 million registered direct offering of DCIN Class A Common Stock to institutional investors in October, pursuant to our effective shelf registration statement. In addition to footprint expansion, gross proceeds are expected to be utilized for general corporate purposes, which may include repayment of debt, capital expenditures, the acquisition of additional units of membership interest in our joint venture, Start Media/Digiplex, LLC and the financing of ongoing operating expenses and overhead. “Several weeks after the share offering we entered into asset purchase agreements to acquire an 8-plex located in Mechanicsburg, PA (Harrisburg DMA 39) as well as a 7-screen theater based in Churchville, MD (Baltimore DMA 27). In addition, we signed a multi-year theater operating lease that takes effect April 1, 2014. We expect to begin occupancy of the New Smyrna Beach, FL (Daytona DMA 19) 12-plex in late spring or early summer next year, following completion of digital projection system installations at this location. This entertainment complex will be operated under Digiplex’s theater management agreement with Start Media/Digiplex. Additionally, today we entered into an asset purchase agreement to acquire a 10-plex in Londonderry, NH (Boston DMA 7), and also announced the upcoming addition of two screens to an existing theater.” (financial tables follow) DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, June 30, 2013 2013 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,337 $ 3,607 Accounts receivable 660 697 Inventories 170 191 Deferred financing costs, current portion 357 357 Prepaid expenses and other current assets 1,391 1,444 Total current assets 3,915 6,296 Property and equipment, net 29,163 29,171 Goodwill 3,156 3,156 Intangible assets, net 6,029 6,186 Security deposits 207 205 Deferred financing costs, long term portion, 1,135 1,225 net Other assets 47 9 TOTAL ASSETS $ 43,652 $ 46,248 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 1,997 $ 2,478 Accrued expenses and other current liabilities 1,957 3,964 Notes payable, current portion 1,746 1,373 Capital lease, current portion 97 121 Earn out from theater acquisitions 355 296 Deferred revenue 375 305 Total current liabilities 6,527 8,537 NONCURRENT LIABILITIES Notes payable, long term portion 8,397 8,615 Capital lease, net of current portion 240 239 Unfavorable leasehold liability, long term 150 159 portion Deferred rent expense 512 407 Deferred tax liability 206 199 TOTAL LIABILITIES 16,032 18,156 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred Stock, $.01 par value, 10,000,000 shares authorized as of September 30, 2013 and June 30, 2013, 6 shares of Series B Preferred - - Stock issued and outstanding as of September 30, 2013 and June 30, 2013 and 2012, respectively Class A Common stock, $.01 par value: 20,000,000 shares authorized; and 5,642,208 and 56 55 5,511,938 shares issued and outstanding as of June 30, 2013 and 2012, respectively Class B Common stock, $.01 par value, 900,000 shares authorized; 849,000 and 865,000 shares 8 9 issued and outstanding as of September 30, 2013 and June 30, 2013, respectively Additional paid-in capital 26,418 25,816 Accumulated deficit (8,100 ) (7,049 ) TOTAL STOCKHOLDERS' EQUITY OF DIGITAL CINEMA 18,382 18,831 DESTINATIONS CORP. Non-controlling interest 9,238 9,261 Total equity 27,620 28,092 TOTAL LIABILITIES AND EQUITY $ 43,652 $ 46,248 DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) Three Months Ended September 30, 2013 2012 REVENUES Admissions $ 7,758 $ 3,009 Concessions 3,338 1,199 Other 373 139 Total revenues 11,469 4,347 COSTS AND EXPENSES Cost of operations: Film rent expense 3,778 1,412 Cost of concessions 602 164 Salaries and wages 1,450 513 Facility lease expense 1,470 523 Utilities and other 2,386 768 General and administrative 1,318 737 Change in fair value of earn out 59 - Depreciation and amortization 1,335 849 Total costs and expenses 12,398 4,966 OPERATING LOSS (929 ) (619 ) OTHER EXPENSE Interest expense (351 ) (23 ) Non-cash interest expense (76 ) (2 ) Other expense (9 ) - LOSS BEFORE INCOME TAXES (1,365 ) (644 ) Income tax expense 9 17 NET LOSS $ (1,374 ) $ (661 ) Net loss attributable to non-controlling 323 - interest Net loss attributable to Digital Cinema $ (1,051 ) $ (661 ) Destinations Corp. Preferred stock dividends (5 ) (1 ) Net loss attributable to common $ (1,056 ) $ (662 ) stockholders Net loss per Class A and Class B common share- basic and diluted attributable to $ (0.16 ) $ (0.12 ) common stockholders Weighted average common shares 6,470,484 5,419,452 outstanding: SUPPLEMENTARY NON-GAAP RECONCILIATION OF THEATER LEVEL CASH FLOW (Unaudited) ($ in thousands) Three months ended September 30, 2013 2012 Net loss $ (1,374 ) $ (661 ) Add back: General and administrative (1) 1,318 737 Depreciation and amortization 1,335 849 Income tax expense 9 17 Interest expense 427 25 Other expense 9 - Deferred rent expense (5) 105 42 Consolidated TLCF $ 1,829 $ 1,009 SUPPLEMENTARY NON-GAAP RECONCILIATION OF ADJUSTED EBITDA (Unaudited) ($ in thousands) Three months ended September 30, 2013 2012 Net loss $ (1,374 ) $ (661 ) Add back: Depreciation and amortization 1,335 849 Interest expense 427 25 Income tax expense 9 17 Other expense 9 - Deferred rent expense (5) 105 42 Stock-based compensation (2) 239 43 Non-recurring organizational and 56 43 M&A-related professional fees (3) Management fees (4) 286 - Start Media's share of adjusted EBITDA (85 ) - Adjusted EBITDA of Digital Cinema $ 1,007 $ 358 Destinations Corp. (1) TLCF is intended to be a measure of theater profitability. Therefore, our corporate general and administrative expenses have been excluded. (2) Represents the fair value of shares of Class A common stock and restricted stock awards issued to employees and non-employees for services rendered. As these are non-cash charges, we believe that it is appropriate to show Adjusted EBITDA excluding this item. (3) Primarily represents professional fees incurred in connection with specific acquisitions. Since the amounts will vary depending on the size and quantity of any acquisition, and are not part of ongoing operations of our theaters, we believe that it is appropriate to exclude these items from Adjusted EBITDA. (4) To add back management fees to Digiplex from Start Media/Digiplex, LLC. (5) Represents non-cash deferred rent expense which is included in our facility lease expense in the consolidated statements of operations. As these are non-cash changes, we believe it is appropriate to show TLCF and Adjusted EBITDA excluding this item. Disclosure Regarding Forward-Looking Statements This press release and other written or oral statements made by or on behalf of Digital Cinema Destinations 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 Annual Report on Form 10-K 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 Corp.(www.digiplexdest.com) Digital Cinema Destinations Corp. (NasdaqCM: DCIN) is Digiplex Destinations, 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 opera, ballet, Broadway shows, sports events, concerts and, on an ongoing basis, the very best major motion pictures. Digiplex operates 19 cinemas and 184 screens in AZ, CA, CT, OH, PA, and NJ. You can connect with Digiplex via Facebook, Twitter, YouTube and Blogger. Contact: Digital Cinema Destinations Corp. Bud Mayo, Chairman/CEO 908-396-1362 firstname.lastname@example.org or JCIR – Investor Relations/Corporate Communications Robert Rinderman or Jennifer Neuman 212-835-8500 DCIN@jcir.com
Digiplex Reports Solid Fiscal 2014 First Quarter Results, Including Across-the-Board Per Cap Increases
Press spacebar to pause and continue. Press esc to stop.