D-BOX Technologies Increases its Sales by 36%

LONGUEUIL, QUÉBEC--(Marketwired - Feb. 13, 2014) - D-BOX Technologies inc. (TSX:DBO), a leader in innovative motion technology announced today revenues of $4,618,889 for the third quarter ended December 31, 2013 in comparison to revenues of $3,392,132 in the third quarter of the previous fiscal year. In addition to these quarterly revenues and a seventh consecutive positive adjusted EBITDA, D-BOX increases its cash position by 34 % to $7.6 million as at December 31, 2013 in comparison to $5.7 million as at March 31, 2013.

FINANCIAL HIGHTLIGHTS

• Growth in revenues and available funds:
  • Quarterly revenues up by 36% including $1,081 k of recurring revenues from utilization rights, rental and maintenance fees.
  • Increase of available funds to $7.6 M.
    
    
• Net loss of $352 k for the quarter, lower by 25% at $1,546 k for the nine-month period in comparison to last year.
  
  
• Positive adjusted EBITDA* and cash flow relating to operating activities for the first nine months of the fiscal year:
  • Positive adjusted EBITDA* of $333 k for the quarter and of $575 k for the nine-month period.
  • Cash flow relating to operating activities of $2,520 k for the first nine months of the fiscal year.

For the third quarter and nine-month period ended December 31 (in thousands of $CA, except per share amounts)
	Third Quarter				Nine Months
	2013		2012		2013		2012
Revenues	4,619		3,392		12,613		10,668
Adjusted EBITDA*	333		154		575		401
Net loss	(352	)	(273	)	(1,546	)	(2,067	)
Basic and diluted net loss per share	(0.0019	)	(0.0016	)	(0.0092	)	(0.0126	)
Information from the consolidated Balance Sheet
	Dec. 31, 2013				Sept. 30, 2013		March 31, 2013
Cash and cash equivalents	7,626				6,402		5,708

* See the section «Reconciliation of the Adjusted EBITDA to the Net Loss » on this press release.

OPERATIONAL HIGHLIGHTS

• Continuous and strategic deployment with large theatre chains:
  • 27 screens added since October 1, 2013, including:
    • Two initial installations representing four screens with Cinemark USA, the third largest theatre chain in the United States and a breakthrough in Colombia with Cinemark Colombia S.A.S. which also installed two theatres representing four screens.
    • Initial installations in the Swiss market (with Gaumont Pathé, who is an existing customer in France) and new inroads in Hong Kong and in Russia.
      
      
• Recent introduction of new longer stroke actuators targeting amongst others the industrial market. These new applications will shortly be commercialized and will allow for the accelerated development of existing and new markets for the industrial simulation, virtual training and arcades.

Commenting the quarterly realizations, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX declared: "The third quarter of 2013 was marked by the growth of our revenues, of our adjusted EBITDA and of our cash position reflecting the continuous progression of both our entertainment and industrial sectors. This clearly demonstrates that the measures we've undertaken over the course of the last few years are delivering results and are contributing to position us advantageously for the future."

ADDITIONAL INFORMATION IN REGARDS TO THE THIRD QUARTER AND NINE-MONTH PERIOD ENDED DECEMBER 31, 2013

The financial information relating to the third quarter and nine-month period ended December 31, 2013 should be read in conjunction with the Corporation's condensed consolidated financial statements and Management's Discussion and Analysis dated February 12, 2014. These documents are available at www.sedar.com

OUTLOOK

D-BOX focuses on two major development areas: the entertainment market and the industrial market which have their respective submarkets.

In light of the business development activities in each of these two markets, D-BOX anticipates that the upward trend in revenues should be maintained.

In combination with this expected growth of revenues, D-BOX also forecasts to gradually increase the level of its operating expenses aiming amongst others, to support the launch of new applications for its technology in the industrial and other markets. Generally speaking, the Corporation however aims to maintain a positive adjusted EBITDA and intends to manage its operations based on attaining this objective.

RECONCILIATION OF THE ADJUSTED EBITDA TO THE NET LOSS

The adjusted EBITDA designates net loss before items not affecting cash, the foreign exchange gain or loss, financial expenses, interest income and income taxes. This measure supplies useful and complementary information which allows amongst others to evaluate profitability and the Corporation's capacity to generate funds from its operating activities.

The following table explains the reconciliation of the adjusted EBITDA to the net loss.

		Third Quarter ended December 31				Nine-month Period ended December 31
		2013		2012		2013		2012
Net loss		(352	)	(273	)	(1,546	)	(2,067	)
	Amortization of property, plant and equipment	492		584		1,529		1,498
	Amortization of intangible assets	71		64		215		191
	Amortization of other assets	38		12		68		41
	Write-off of property, plant and equipment	86		5		123		5
	Share-based payment expense	143		168		434		660
	Foreign exchange gain	(150	)	(409	)	(276	)	82
	Financial results (financial expenses and interest income)	1		3		18		(13	)
	Income taxes	4		-		10		4
Adjusted EBITDA		333		154		575		401

ABOUT D-BOX

D-BOX Technologies Inc. designs, manufactures and commercializes cutting-edge motion systems intended for the entertainment and industrial markets. This unique and patented technology uses motion effects specifically programmed for each visual content which are sent to a motion system integrated into either, a platform, a seat or any other product. The resulting motion is perfectly synchronized with the on-screen action, thus creating an unparalleled realistic immersive experience. By reaching agreements with various industry leaders, the D-BOX motion technology is gradually imposing itself as a global standard. D-BOX is a public company whose shares are traded on the Toronto Stock Exchange under the symbol DBO.

D-BOX is a public company whose shares are traded on the Toronto Stock Exchange under the symbol DBO. D-BOX^® and D-BOX Motion Code^® are registered trademarks of D-BOX Technologies Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

DISCLAIMER IN REGARDS TO 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 put undue reliance on forward-looking statements. The Corporation disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.