D-BOX Technologies Announces 6% Revenue Growth for its Second Quarter ended September 30, 2018
November 14 2018 - 6:00PM
D-BOX Technologies Inc. (TSX: DBO), a world leader in
immersive entertainment experiences, announced second-quarter
revenues of $8.1 million, up 6% from the same period last
year, and growth in recurring revenues of 15%, totalling
$2.1 million for the three-month period ended September 30,
2018.
FINANCIAL HIGHLIGHTS
Highlights for the second quarter ended
September 30, 2018
Compared with the second quarter ended September
30, 2017:
- Revenues totalled $8.1 million up 6% from $7.7 million.
- Recurring revenues grew 15% to $2.1 million from $1.8
million.
- Quarterly adjusted EBITDA was $127K compared with $176K.
- Recurring revenues rose to 26% of total revenues from 24%.
- Net loss totalled ($748K) compared with ($840K).
Highlights for the six month period
ended September 30, 2018
Compared with the six-month period ended
September 30, 2017:
- Revenues totalled $17.6 million up 11% from $15.8 million.
- Recurring revenues grew 18% to $4.7 million from $4.0
million.
- Quarterly adjusted EBITDA was $1.3 million compared with $0.6
million.
- Recurring revenues rose to 27% of total revenues from 25%.
- Net loss totalled ($977K) compared with ($1,824K).
Second quarter and Six-month
period ended September 30 (in thousands of dollars, except
per share amounts) |
|
Second Quarter |
Six-month period |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues |
8,086 |
|
7,653 |
|
17,598 |
|
15,794 |
|
Net loss |
(748 |
) |
(840 |
) |
(977 |
) |
(1,824 |
) |
Adjusted EBITDA* |
127 |
|
176 |
|
1,284 |
|
553 |
|
Basic and diluted net loss per share |
(0.004 |
) |
(0.004 |
) |
(0.006 |
) |
(0.010 |
) |
Information from the consolidated balance
sheet |
|
As at September 30,2018 |
As at March 31, 2018 |
Cash and cash equivalents |
8,423 |
|
10,141 |
|
* See the “Non-IFRS” measures section in the Management’s
Discussion and Analysis dated November 14, 2018.
OPERATIONAL HIGHLIGHTS
- D-BOX is celebrating the recent installation of new D-BOX
motion seats in several venues across Germany reaching a new
milestone in this country of over 100 screens.
- D-BOX will install motion recliner seats in two full
auditoriums with Maya theatres. The first installation is slated
for November at the Maya Bakersfield Theatre in California. The
second installation will start in December at the Maya North Las
Vegas Theater and be completed just in time for the
highly-anticipated holiday blockbuster season. D-BOX will
also be adding recliner seats to a fully-renovated auditorium at
the Boulevard Mall Theatre with Galaxy Theatres in Las Vegas and is
also working with Galaxy to increase the number of recliner motion
seats in their Riverbank Luxury IMAX Theatre in California. Also,
D-BOX continues to grow its partnership with Cinemark in the US
with the installation of additional D-BOX motion seats in two new
screens.
- D-BOX announced the addition of D-BOX seats across five
countries for the major US exhibitor Cinemark. This expanded
agreement increases the installation of motion seats into theatres
in Colombia, Brazil, and Peru in addition to two new screens in
Chile and Nicaragua.
- D-BOX continued its expansion in China via a new contract with
Link Digital Cinema China Technology (Beijing) Co., Ltd. (Link DC).
The Asian company signed an agreement to purchase additional D-BOX
motion system in an effort to capitalize on the growing demand for
premium entertainment experiences.
- D-BOX and Secret Location, a content studio for emerging
platforms, have signed an agreement making Secret Location the
virtual reality {VR} content management platform provider for
D-BOX. Under the strategic partnership, Secret Location will
be the primary distributor for D-BOX enabled VR content intended
for location-based entertainment (LBE) environments. This new
agreement will facilitate global distribution and provide insights
into consumer behavior and preferences. Ultimately, this
collaboration will accelerate adoption and contribute to the
overall success of the VR LBE industry.
Claude Mc Master, President and Chief
Executive Officer of D‑BOX, announced the company’s second quarter
results: “D-BOX continues to expand its footprints reflected by our
revenue growth.’’
ADDITIONAL INFORMATION REGARDING THE
SECOND QUARTER ENDED SEPTEMBER 30, 2018
The financial information relating to the second
quarter ended September 30, 2018 should be read in conjunction
with the Corporation’s unaudited interim condensed consolidated
financial statements and the Management’s Discussion and Analysis
dated November 14, 2018. These documents are available at
www.sedar.com.
OUTLOOK
D-BOX operates in two major areas: the entertainment market and
the simulation and training market which have their respective
sub-markets. Business development activities aim to increase
motion system sales and grow its recurring revenue. This
strategy will help solidify D-BOX’s position in existing
sub-markets and facilitate entering new segments.
D-BOX’s expertise in immersive motion and
true-to-life simulation positions the Corporation to be an active
participant in the growing virtual reality (VR) market. The
Corporation is actively developing new applications for VR and
other related markets. D‑BOX proprietary technology may also
enhance the expansion of VR by reducing the motion dizziness
sometimes associated with VR experiences. D-BOX is
particularly focused on this new trend as the size of the virtual
and augmented reality markets grow, potentially to billions of
dollars in the near future, according to many industry sources.
RECONCILIATION OF ADJUSTED EBITDA TO NET
INCOME (LOSS)*
Adjusted EBITDA provides useful and
complementary information, which can be used, in particular, to
assess profitability and cash flows provided by operations. It
consists of net income (loss) excluding amortization, financial
expenses net of income, income taxes, write-off of property and
equipment and intangible assets, shared-based payments, foreign
exchange loss (gain) and non-recurring expenses related to
restructuring costs.
|
Second Quarter ended September 30 |
Six-month period ended September
30 |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Net loss |
(748 |
) |
(840 |
) |
(977 |
) |
(1,824 |
) |
Amortization of property and equipment |
538 |
|
576 |
|
1,110 |
|
1,170 |
|
Amortization of intangible assets |
204 |
|
165 |
|
405 |
|
326 |
|
Amortization of other assets |
1 |
|
1 |
|
2 |
|
2 |
|
Financial expenses |
128 |
|
131 |
|
262 |
|
267 |
|
Income taxes |
50 |
|
4 |
|
78 |
|
5 |
|
Share-based payments |
38 |
|
80 |
|
93 |
|
136 |
|
Foreign exchange loss (gain) |
(84 |
) |
59 |
|
311 |
|
214 |
|
Restructuring costs |
— |
|
— |
|
— |
|
257 |
|
Adjusted EBITDA |
127 |
|
176 |
|
1,284 |
|
553 |
|
* See the “Non-IFRS” measures section in the Management’s
Discussion and Analysis dated November 14, 2018.
ABOUT D-BOX
D-BOX redefines and
creates hyper-realistic, immersive entertainment experiences
by moving the body and sparking the imagination through motion.
This expertise is one of the reasons why D-BOX has collaborated
with some of the best companies in the world to
deliver new ways to enhance great stories. Whether it’s for
movies, video games, virtual reality applications, themed
entertainment or professional simulation, D-BOX mission is to move
the world.
D-BOX Technologies Inc. is a publicly traded
Canadian company listed on the Toronto Stock Exchange
(TSX: DBO). The head office is located in Montreal and its
offices are based in Los Angeles, USA and Beijing, China.
D-BOX®, D-BOX Motion Code®, LIVE THE ACTION®,
MOTION ARCHITECTS®, MOVE THE WORLD® and FEEL IT ALL are trademarks
of D-BOX Technologies Inc. Other names are for informational
purposes only and may be trademarks of their respective owners.
DISCLAIMER REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements included herein, including
those that express management’s expectations or estimates of our
future performance, constitute “forward-looking statements” within
the meaning of applicable securities laws. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management at this
time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Investors are
cautioned not to place undue reliance on forward-looking
statements. D-BOX disclaims any intent or obligation to publicly
update these forward‑looking statements, whether as a result of new
information, future events or otherwise.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Jean-François Lacroix
Chief Financial Officer D-BOX Technologies Inc.
450-876-1227jflacroix@d-box.com |
Investor
Relations: Glen Akselrod FounderBristol Capital
Ltd.905-326-1888, ext. 10 glen@bristolir.com |
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