Welcome!

Microsoft Cloud Authors: Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White, Yeshim Deniz

News Feed Item

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

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

December 31,

      Six Months Ended

December 31,

(in thousands)

2012

   

2011

2012

   

2011

Total revenue $ 6,870 $ 920 $ 11,216 $ 1,899
Net loss (1,234 ) (321 ) (1,897 ) (587 )
 
Theater level cash flow (1) 1,466 178 2,432 368
Adjusted EBITDA (1) 599 (127 ) 934 (224 )
 
Theaters (2) 16 3 16 3
Average screens (3) 96 19 85 19
Average attendance per screen (3) 6,420 3,565 12,149 8,012
Average admission per patron $ 7.71 $ 9.60 $ 7.52 $ 9.14
Average concessions sales per patron $ 3.13 $ 2.98 $ 3.03 $ 2.63
Total attendance (in thousands) (3) 617 68 1,033 152
   

(1)

 

Theater level cash flow and adjusted EBITDA are supplemental non-GAAP financial measures. Reconciliations of these metrics to the 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

(3)

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 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,

2012

June 30,

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 portion 1,039 -
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, current portion 79 79
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 term portion 550 -
Unfavorable leasehold liability, long term portion 176 190
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 outstanding as of December 31, 2012 and June 30, 2012, respectively 51 45
Class B Common stock, $.01 par value, 900,000 shares authorized and issued and outstanding as of December 31, 2012 and June 30, 2012, respectively 9 9
Additional paid-in capital 25,381 19,285
Accumulated deficit   (4,561 )   (2,757 )
 
TOTAL STOCKHOLDERS’ EQUITY OF DIGITAL CINEMA DESTINATIONS CORP. 20,880 16,582
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

December 31,

Six Months Ended

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 expense 2,417 270 3,855 598
Cost of concessions 317 28 482 68
Salaries and wages 710 144 1,224 288
Facility lease expense 811 128 1,334 248
Utilities and other 1,141 172 1,881 329
General and administrative 1,208 352 1,946 673
Depreciation and amortization   1,098     132     1,947     262  
 
Total costs and expenses   7,702     1,226     12,669     2,466  
 
OPERATING LOSS (832 ) (306 ) (1,453 ) (567 )
OTHER EXPENSE
Interest expense (272 ) - (294 ) -
Non-cash interest expense (75 ) - (78 ) -
Other expense   (8 )   -     (8 )   -  
 
LOSS BEFORE INCOME TAXES (1,187 ) (306 ) (1,833 ) (567 )
Income tax expense   47     15     64     20  
 
NET LOSS $ (1,234 ) $ (321 ) $ (1,897 ) $ (587 )
 
Net loss attributable to non-controlling interest   93     -     93     -  
 
Net loss attributable to Digital Cinema Destinations Corp. $ (1,141 ) $ (321 ) $ (1,804 ) $ (587 )
Preferred stock dividends   (5 )   (80 )   (6 )   (153 )
 
Net loss attributable to common stockholders $ (1,146 ) $ (401 ) $ (1,810 ) $ (740 )
 
Net loss per Class A and Class B common share – basic and diluted $ (0.21 ) $ (0.28 ) $ (0.33 ) $ (0.51 )
Weighted average common shares outstanding 5,511,765 1,469,166 5,465,356 1,469,166
 
 

SUPPLEMENTARY NON-GAAP RECONCILIATIONS

THEATER LEVEL CASH FLOW AND ADJUSTED EBITDA

(Unaudited)

($ in thousands)

         
Three Months Ended

December 31,

Six Months Ended

December 31,

2012   2011 2012   2011
Net loss $ (1,234 ) $ (321 ) $ (1,897 ) $ (587 )
Depreciation and amortization 1,098 132 1,947 262
Interest expense 347 - 372 -
Income tax expense 47 15 64   20  
 
EBITDA $ 258 $ (174 ) $ 486 $ (305 )
Stock-based compensation 26 16 69 33
Non-recurring organizational and M&A-related professional fees   315     16     362     28  
 
Adjusted EBITDA $ 599   $ (142 ) $ 917   $ (224 )
 
General and administrative expenses (1)   867     320     1,515     612  
 
Theater level cash flow (2) $ 1,466   $ 178   $ 2,432   $ 368  
   

(1)

 

Excludes stock-based compensation and non-recurring organizational and M&A-related professional fees

(2)

Represents theater level cash flow on a consolidated basis, 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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
"Avere Systems deals with data performance optimization in the cloud or on-premise. Even to this day many organizations struggle with what we call the problem of data gravity - 'Where should I put the data?' - because the data dictates ultimately where the jobs are going to run," explained Scott Jeschonek, Director Cloud Solutions at Avere Systems, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.