Provides Initial Outlook for Full Year
2019To Present at ICR Conference on January
15th
iPic® Entertainment Inc. (“iPic” or the “Company”) (NASDAQ: IPIC),
creators of America’s coveted iPic® luxury theater-and-restaurant
destinations, today reported preliminary sales results for the
fourth quarter and full year ended December 31, 2018 that are above
the Company’s previous guidance ranges. iPic also provided an
initial outlook for full year 2019 and announced that it will
present at the ICR Conference on January 15, 2019 at 11:00 a.m.
Eastern Time.
Hamid Hashemi, Founder & Chief Executive
Officer of iPic® Entertainment, commented, “Our fourth quarter was
truly an exceptional period of top-line growth at iPic and we are
pleased that our preliminary 2018 revenue and comparable-store
sales results exceeded our own projections despite a weaker slate
of movie titles compared to the prior year. Our outperformance was
partially due to the conversion of five Generation I theaters to
Generation III auditoriums which lifted sales and we were also
successful in delivering 20% growth in membership and sponsorship
revenues.”
Hashemi added, “Looking ahead, 2019 is poised to
be an exciting year at iPic as we continue to execute our four key
strategic initiatives: 1) Improving Profitability at Existing
Locations; 2) Opening New iPic Locations Domestically; 3) Pursuing
International Growth Opportunities; and 4) Increasing Alternative
Revenue Streams. We are hopeful that our success in realizing these
objectives will meaningfully improve our top and bottom-line
results as reflected in our initial 2019 guidance, and in doing so,
create long-term value for stockholders.”
Preliminary Fourth Quarter 2018 Sales
Results
- Total revenue of $36.5 million to $37.5 million (previous
guidance of $34.5 million to $36.5 million).
- Comparable-store sales growth of 1.5% to 2.0% (previous
guidance of minus 5.0% to 0.0%).
Preliminary Full Year 2018 Sales
Results
- Total revenue of $143.0 million to $144.0 million (previous
guidance of $141 million to $143 million).
- Comparable-store sales growth of 1.6% to 2.0% (previous
guidance of 0.0% to 1.0%).
Initial Full Year 2019 Financial
Outlook
For the year ending December 31, 2019, the
Company is providing these initial expectations:
- Total revenue of $153 million to $158 million, representing an
approximately 7% to 11% increase above preliminary total revenue in
2018.
- Comparable-store sales growth of low-to-mid single digits.
- Store-level EBITDA, a non-GAAP measure, of $19 million to $21
million.
- Adjusted EBITDA, a non-GAAP measure, of $(3.0) million to
$(1.0) million.
- Two domestic openings: Delray Beach, FL in the first quarter
and Irvine, CA in the fourth quarter.
- One international opening: Riyadh, Saudi Arabia in the fourth
quarter.
- One remodel in Boca Raton, FL to the Generation III
design.
- Capital expenditures of $17 million to $19 million, net of
tenant improvement dollars, marking a substantial decrease from
2018.
Key Strategic Initiatives
- Improving Profitability at Existing Locations:
- iPic intends to realize greater cost efficiencies, which
combined with comparable-store sales growth, should yield higher
profitability at the store-level.
- Opening New iPic Locations Domestically:
- The Company currently operates 115 screens at 15 locations in
nine states with the ultimate long-term goal of reaching 200
locations across the US.
- iPic plans to open two new domestic locations in 2019 in Delray
Beach, FL and in Irvine, CA.
- Pursuing International Growth Opportunities:
- The Company is actively exploring the potential to expand the
iPic® brand internationally through licensed and/or asset-light
partnerships.
- On November 6, 2018, iPic announced that is has been cleared to
receive its license to operate theaters in The Kingdom of Saudi
Arabia and should receive it once required final documents are
processed. The Company intends to open its first one-of-a-kind,
world-class luxurious iPic® theater-and-restaurant location in
Riyadh in late 2019.
- iPic believes the market in Saudi Arabia is large enough to
support 25 to 30 iPic® locations within the next ten years and
expects to expand to all parts of the country.
- Increasing Alternative Revenue Streams:
- The Company recently announced a new Access Membership Rewards™
program with four membership levels offering exciting new benefits
and plans to continue leveraging its growing membership network as
the brand expands and increases its market presence.
- iPic projects membership and sponsorship revenues to grow at a
faster pace than food-and-beverage and theater revenues for the
foreseeable future. This expectation is reflected in the Company’s
preliminary sales results for 2018 as membership and sponsorship
revenues grew approximately 20% while food-and-beverage and theater
revenues grew 1.5%.
ICR Conference
Participation
Hamid Hashemi, CEO and Founder, will present at
the 21st Annual ICR Conference at the JW Marriott Orlando Grande
Lakes in Orlando, FL on Tuesday, January 15, 2019 and host investor
meetings throughout the day.
The presentation will begin at 11:00 a.m.
Eastern Time and will be webcast live from the Company's Investor
Relations website at investors.ipictheaters.com and from the ICR
Conference website at icrconference.com. An archive of the webcast
will be available at the same location on these websites shortly
after the presentation has concluded.
Key Financial Definitions
New store openings – Our ability to expand our
business and reach new guests is influenced by the opening of
additional iPic locations in both new and existing markets. The
success of our new iPic locations is indicative of our brand appeal
and the efficacy of our site selection and operating models.
Comparable-store sales – Comparable-store sales
are a year-over-year comparison of sales at iPic locations open at
the end of the period which have been open for at least 12 months
prior to the start of such quarterly period. It is a key
performance indicator used within the industry and is indicative of
acceptance of our initiatives as well as local economic and
consumer trends. Our comparable iPics consisted of 14 and 15 iPics
as of the end of the fourth quarter of 2017 and 2018, respectively.
From period to period, comparable-store sales are generally
impacted by attendance and average spend per person. Spend per
person is, in turn, composed of pricing and sales-mix changes.
Store-level EBITDA – A non-GAAP measure,
store-level EBITDA consists of total revenues less store-level
expenses that include food-and beverage cost-of-goods sold,
box-office-and-other-income costs-of-goods-sold, labor costs,
occupancy expenses and other-operating expenses.
EBITDA – A non-GAAP measure, is defined as net
income before net interest, taxes, depreciation and
amortization.
Adjusted EBITDA – A non-GAAP measure, is defined
as net income before net interest, taxes, depreciation and
amortization, and which also excludes equity-based compensation
expense, losses on the disposal of property and equipment, as well
as certain non-recurring items that the Company does not believe
directly reflect its core operations.
About iPic® Entertainment Inc.
Established in 2010 and headquartered in
Boca Raton, FL, iPic® Entertainment is America’s premier
luxury restaurant-and-theater brand. A pioneer of the dine-in
theater concept, iPic® Entertainment’s mission is to provide
visionary entertainment escapes, presenting high-quality,
chef-driven culinary and mixology in architecturally unique
destinations that include premium movie theaters and restaurants.
iPic® Theaters offers guests two tiers of luxury leather seating,
Premium Chaise lounge and Premium Plus pod or reclining seating
options. iPic® Theaters currently operates 15 locations with
115 screens in Arizona, California, Florida, Illinois, Maryland,
New Jersey, New York, Texas, and Washington and new locations
planned for Florida, Georgia, Texas, California and Connecticut.
For more information, visit www.iPic.com.
Forward-Looking Statements
This press release includes ''forward-looking
statements'' within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
including statements regarding our preliminary fourth quarter &
full year 2018 sales results and financial outlook for the full
year 2019; our expectations with respect to the opening of
new locations in the near and long term; our expectations with
respect to capital expenditures and improvements to existing
locations; our expectations with respect to international growth;
and our ability to grow our membership network. Such
forward-looking statements can be identified by the use of words
such as ''should,'' ''may,'' ''intends,'' ''anticipates,''
''believes,'' ''estimates,'' ''projects,'' ''forecasts,''
''expects,'' ''plans,'' and ''proposes'' or other variation of
these or similar words, or by discussions of future events,
strategies or risks and uncertainties. Such forward looking
statements are inherently subject to risks, uncertainties and
assumptions about us, including risks related to the following: our
inability to successfully identify and secure appropriate sites and
timely develop and expand our operations in existing and new
markets, including international markets; our inability to optimize
our theater circuit through new construction and transforming our
existing theaters; competition from other theater chains and
restaurants; our inability to operate profitably; our dependence on
a small number of suppliers for motion picture products; our
inability to manage fluctuations in attendance in the motion
picture exhibition industry; our inability to address the increased
use of alternative film delivery methods or other forms of
entertainment; our ability to serve menu items that appeal to our
guests and to avoid food safety problems; our inability to obtain
sufficient capital to open up new units, to renovate existing units
and to deploy strategic initiatives; our ability to address
issues associated with entering into long-term non-cancelable
leases; our inability to protect against security breaches of
confidential guest information; our inability to manage our growth;
our inability to maintain sufficient levels of cash flow, or access
to capital, to meet growth expectations; our inability to manage
our substantial level of outstanding debt; our ability to continue
as a going concern; our failure to meet any operational and
financial performance guidance we provide to the public; our
ability to compete and succeed in a highly competitive and evolving
industry; we have identified a material weakness in our internal
control over financial reporting which may result in our financial
statements containing material misstatements or cause us to fail to
meet our periodic reporting obligations and other factors described
in our Annual Report on Form 10-K, our Quarterly Reports on Form
10-Q and our Current Reports on Form 8-K, each as filed with the
Securities and Exchange Commission.
Although the forward-looking statements in this
press release are based on our beliefs, assumptions and
expectations, taking into account all information currently
available to us, we cannot guarantee future transactions, results,
performance, achievements or outcomes. No assurance can be made
that the expectations reflected in our forward-looking statements
will be attained. Should one or more of the risks or uncertainties
referred to above materialize or should any of our assumptions
prove to be incorrect, our actual results may vary in material and
adverse respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as may be required under
applicable securities laws.
Investor Relations: ICRRaphael
Gross iPicIR@icrinc.com203-682-8253
Media Relations:The Gab Group for iPic®
Entertainment Corporate Michelle
Soudrymsoudry@thegabgroup.com 561-750-3500
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