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Digiplex Fiscal 2014 Q2 Revenue Rises to $11.2 Million, Reflecting Ongoing Screen Growth and Successful Circuit Expansion

  Digiplex Fiscal 2014 Q2 Revenue Rises to $11.2 Million, Reflecting Ongoing   Screen Growth and Successful Circuit Expansion               - Reports Theater Level Cash Flow of $1.9 Million -  Business Wire  WESTFIELD, N.J. -- February 12, 2014  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 second quarter financial results for the three-month period ended December 31, 2013.   DATE/TIME: Today, 2/12/14 at 4:30 p.m. ET  TELEPHONE: 800 891 8357. 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 thousands)               2013        2012         2013        2012 Consolidated total revenue   $ 11,196     $ 6,870      $ 22,665     $ 11,216 Consolidated net loss          (1,356 )     (1,234 )     (2,727 )     (1,897 )                                                                      Consolidated theater level     1,943        1,553        3,773        2,554 cash flow (1) Adjusted EBITDA of Digital Cinema Destinations Corp.      950          644          1,958        997 (1)                                                              Theaters (period end)          20           16           20           16 Average screens                185          96           184          84 Average attendance per         5,367        6,459        11,257       12,252 screen Average admission per        $ 7.93       $ 7.71       $ 7.76       $ 7.52 patron Average concessions sales    $ 3.31       $ 3.13       $ 3.29       $ 3.03 per patron Total attendance (in           993          619          2,070        1,035 thousands)                                                                             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 and six months ended December 31, 2013 and 2012 are included       in the supplementary tables accompanying this news announcement.         Digiplex Chairman and CEO Bud Mayo stated, “Digiplex continues to capitalize on the attractive M&A environment and favorable industry backdrop as we expand our footprint into leading domestic markets. In recent months we completed a previously announced acquisition in the Harrisburg DMA, further growing our Pennsylvania presence. We also have a number of pending locations that have been announced and these are in various stages of final due diligence. We are also in active negotiations and advanced high-level discussion on a wide array of other potential theater purchases as well.  “As with previous acquisitions our mission continues to be transforming all Digiplex locations into digital entertainment centers featuring a wide range of content, including alternative programming that helps drive capacity utilization during non-peak times. This strategy has been working according to plan and we are approximately one-quarter of the way to our organization’s ultimate goal of operating a national circuit located in top markets,” concluded Mr. Mayo.   DIGITAL CINEMA DESTINATIONS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)                                                      December 31,  June 30,                                                      2013           2013                                                      (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents                            $  6,992       $ 3,607 Accounts receivable                                     740           697 Inventories                                             148           191 Deferred financing costs, current portion               357           357 Prepaid expenses and other current assets              1,295       1,444                                                                        Total current assets                                    9,532         6,296 Property and equipment, net                             29,666        29,171 Goodwill                                                3,502         3,156 Intangible assets, net                                  7,012         6,186 Security deposit                                        209           205 Deferred financing costs, long term portion, net        1,052         1,225 Other assets                                           107         9                                                                            TOTAL ASSETS                                         $  51,080     $ 46,248                                                                       LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable                                     $  1,985       $ 2,478 Accrued expenses and other current liabilities          3,658         3,964 Notes payable, current portion                          1,716         1,373 Capital lease, current portion                          162           121 Earn out from theater acquisitions                      350           296 Deferred revenue                                       767         305                                                                          Total current liabilities                               8,638         8,537                                                                      NONCURRENT LIABILITIES Notes payable, long term portion                        8,048         8,615 Capital lease, net of current position                  470           239 Unfavorable leasehold liability, long term portion      141           159 Deferred rent expense                                   617           407 Deferred tax liability                                 207         199                                                                          TOTAL LIABILITIES                                      18,121      18,156                                                                       COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Class A Common stock, $.01 par value: 20,000,000 shares authorized and 7,035,058 and 5,511,938 shares issued and               70            55 outstanding as of December 31, 2013 and June 30, 2013, respectively Class B Common stock, $.01 par value, 900,000 shares authorized; 849,000 and 865,000 shares issued and outstanding as of             9             9 December 31, 2013 and June 30, 2013, respectively Additional paid-in capital                              32,959        25,816 Accumulated deficit                                    (9,121  )    (7,049 )                                                                      TOTAL STOCKHOLDERS’ EQUITY OF DIGITAL CINEMA DESTINATIONS                                            23,917        18,831 CORP. Non-controlling interest                               9,042       9,261                                                                        Total equity                                           32,959      28,092                                                                       TOTAL LIABILITIES AND EQUITY                         $  51,080     $ 46,248                                                                         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,                   2013           2012            2013           2012 REVENUES                                                                                                                                         Admissions        $ 7,590         $ 4,752         $ 15,347        $ 7,761 Concessions         3,166           1,929           6,504           3,128 Other              440           189           814           327                                                                                         Total revenues     11,196        6,870         22,665        11,216                                                                                      COSTS AND EXPENSES Cost of operations: Film rent           3,936           2,401           7,714           3,813 expense Cost of             581             317             1,183           482 concessions Salaries and        1,297           710             2,747           1,224 wages Facility lease      1,450           811             2,920           1,334 expense Utilities and       2,099           1,157           4,484           1,923 other General and         1,348           1,208           2,666           1,946 administrative Change in fair value of            (5        )     -               54              - earnout Depreciation and                1,373         1,098         2,708         1,947      amortization                                                                                  Total costs and    12,079        7,702         24,476        12,669     expenses                                                                                  OPERATING LOSS      (883      )     (832      )     (1,811    )     (1,453    ) OTHER EXPENSE Interest            (348      )     (272      )     (699      )     (294      ) expense Non-cash interest            (76       )     (75       )     (152      )     (78       ) expense Other expense      (40       )    (8        )    (47       )    (8        )                                                                                  LOSS BEFORE         (1,347    )     (1,187    )     (2,709    )     (1,833    ) INCOME TAXES Income tax         9             47            18            64         expense                                                                                  NET LOSS          $ (1,356    )   $ (1,234    )   $ (2,727    )   $ (1,897    )                                                                                  Net loss attributable to    331           93            655           93         non-controlling interest                                                                                  Net loss attributable to Digital Cinema    $ (1,025    )   $ (1,141    )   $ (2,072    )   $ (1,804    ) Destinations Corp. Preferred stock    (5        )    (5        )    (10       )    (6        ) dividends                                                                                  Net loss attributable to   $ (1,030    )   $ (1,146    )   $ (2,082    )   $ (1,810    ) common stockholders                                                                                  Net loss per Class A and Class B common share – basic and               $ (0.14     )   $ (0.21     )   $ (0.30     )   $ (0.33     ) diluted attributable to common stockholders Weighted average common      7,565,123       5,511,765       7,014,926       5,465,356 shares outstanding   SUPPLEMENTARY NON-GAAP RECONCILIATION OF THEATER LEVEL CASH FLOW (Unaudited) ($ in thousands)                             Three months ended       Six months ended                              December 31,              December 31,                               2013      2012       2013      2012    Net loss                     $ (1,356 )   $ (1,234 )   $ (2,727 )   $ (1,897 ) Add back: General and administrative     1,348        1,208        2,666        1,946 (1)                                                                      Depreciation and               1,373        1,098        2,708        1,947 amortization Income tax expense             9            47           18           64 Interest expense               424          347          851          372 Other expense                  40           8            47           8 Deferred rent expense (5)     105        79         210        114     Consolidated TLCF            $ 1,943     $ 1,553     $ 3,773     $ 2,554                                                                         SUPPLEMENTARY NON-GAAP RECONCILIATION OF ADJUSTED EBITDA (Unaudited) ($ in thousands)                                                                                  Three months ended        Six months ended                              December 31,              December 31,                              2013        2012         2013        2012 Net loss                     $ (1,356 )   $ (1,234 )   $ (2,727 )   $ (1,897 ) Add back: Depreciation and               1,373        1,098        2,708        1,947 amortization Interest expense               424          347          851          372 Income tax expense             9            47           18           64 Other expense                  40           8            47           8 Deferred rent expense (5)      105          79           210          114 Stock-based compensation       122          26           361          69 (2) Non-recurring organizational and             53           315          110          362 M&A-related professional fees (3) Management fees (4)            275          52           560          52 Deduct: Start Media's share of        (95    )    (94    )    (180   )    (94    ) Adjusted EBITDA Adjusted EBITDA of Digital Cinema Destinations          $ 950       $ 644       $ 1,958     $ 997     Corp.                                                                            (1)   TLCF is intended to be a measure of theater profitability. Therefore,       our corporate general and administrative expenses have been excluded.       Represents the fair value of shares of Class A common stock and (2)   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.       Primarily represents professional fees incurred in connection with       start-up activities, the creation of acquisition template documents that       will be used by us for future transactions, and certain other costs (3)   related to our acquisition strategy. Since we intend to acquire       additional theaters, we have laid the groundwork for our acquisition       program and we expect to incur reduced legal fees in connection with       future acquisitions. We therefore believe that it is appropriate to       exclude these items from Adjusted EBITDA. (4)   To add back management fees to Digiplex from JV.       Represents non-cash deferred rent expense which is included in our (5)   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 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.  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. You can connect with Digiplex via Facebook, Twitter, YouTube and Blogger.  Contact:  Digital Cinema Destinations Corp. Bud Mayo, 908-396-1362 Chairman/CEO bmayo@digiplexdest.com or JCIR Robert Rinderman or Jennifer Neuman, 212-835-8500 DCIN@jcir.com  
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