Digiplex Reports Solid Fiscal 2014 First Quarter Results, Including Across-the-Board Per Cap Increases

  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
bmayo@digiplexdest.com
or
JCIR – Investor Relations/Corporate Communications
Robert Rinderman or Jennifer Neuman
212-835-8500
DCIN@jcir.com