D-BOX Technologies Increases its Annual Sales and its Adjusted EBITDA by 23% and 64% Respectively

LONGUEUIL, QUÉBEC--(Marketwired - June 11, 2014) - D-BOX Technologies Inc. (TSX:DBO), a leader in innovative motion technology announced today revenues of $17.6 million for the 2014 fiscal year ended March 31, 2014 which represents a 23% increase in comparison to revenues of $14.3 million for the fiscal year ended March 31, 2013.

Financial Highlights

• Growth in revenues and available funds:
  
  
  • Annual revenues up by 23% to $17,593 k including $3,654 k of recurring revenues from utilization rights, rental and maintenance fees.
    
    
  • Quarterly revenues up by 39% to $4,980 k, including $815 k of recurring revenues also from utilization rights, rental and maintenance fees.
    
    
  • Available funds of $6,717 k as at March 31, 2014.
    
    
• Net loss of $1,589 k for the fiscal year and of $43 k for the quarter representing respectively 38% and 92% decreases in comparison to last year.
  
  
• Positive adjusted EBITDA* and cash flow relating to operating activities for the fiscal year ended March 31, 2014:
  
  
  • Adjusted EBITDA* of $957 k for the fiscal year and of $382 k for the quarter.
    
    
  • Cash flow relating to operating activities of $2,165 k for the fiscal year.
    
    

Fourth quarter and fiscal year ended March 31 (in thousands of $CA, except per share amounts)
		Fourth Quarter				Fiscal Year
		2014		2013		2014		2013
	Revenues	4,980		3,585		17,593		14,253
	Net loss	(43	)	(508	)	(1,589	)	(2,575	)
	Basic and diluted net loss per share	(0.0003	)	(0.0031	)	(0.0097	)	(0.0157	)
Information from the consolidated Balance Sheet
		March 31, 2014				March 31, 2013
	Cash and cash equivalents	6,717				5,708

* See the reconciliation table of adjusted EBITDA to the net loss on the next page of this press release.

Adjusted EBITDA (in thousands of $CA)
Quarters of 2014
Q1 June 30, 2013		Q2 September 30, 2013		Q3 December 31, 2013		Q4 March 31, 2014		Fiscal Year March 31, 2014
13		229		333		382		957

Operational Highlights

• Continuous and strategic deployment with large theatre chains: 45 screens added since April 1, 2013, including a significant breakthrough in South America with Cinemark, in France and Switzerland with Gaumont Pathé and in Russia with Luxor, Barguzin and Kinomax.
  
  
• 39 films from Hollywood's main studios were coded by D-BOX to be presented in commercial theatres of which 15 ranked number one at the box-office on opening weekend. This compares to 28 titles obtained in the fiscal year ended March 31, 2013.
  
  
• Recent commercialization of new longer-stroke actuators targeting the industrial market. These new applications make it possible to accelerate the development of existing markets while providing the opportunity to enter new business activities. At the same time, additional resources were added to the sales team to address this potential.
  
  

Commenting the year's realizations, Mr. Claude Mc Master, President and CEO of D-BOX declared: ‟Our financial results are constantly improving while we keep growing in the entertainment and industrial markets, invest more in our R&D and strengthen our sales team. Considering these results and our advantageous positioning, I anticipate enthusiastically the upcoming fiscal year."

Additional information with respect to the fiscal year and fourth quarter ended March 31, 2014

The financial information relating to the fourth quarter and fiscal year ended March 31, 2014 should be read in conjunction with the Corporation's consolidated financial statements and Management's Discussion and Analysis dated June 10, 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 sub-markets. 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 expects to gradually increase the level of its operating expenses including fees related to sales, marketing, research and development that will support the commercialization of new applications for its technology for new industrial sub-markets. Generally speaking, the Corporation aims, however, 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 allows evaluating profitability and the Corporation's ability to generate cash flows from its operations. It designates the net loss before items not affecting cash, the foreign exchange gain or loss, financial expenses, interest income and income taxes.

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

	Fiscal Year ended March 31				Fourth Quarter ended March 31
	2014		2013		2014		2013
Net loss	(1,589	)	(2,575	)	(43	)	(508	)
Amortization of property, plant and equipment	2,018		2,005		489		507
Amortization of intangible assets	290		259		75		68
Amortization of other assets	180		85		112		44
Write-off of property, plant and equipment	78		-		(45	)	(5	)
Write-off of other assets	-		5		-		5
Write-off of intangible assets	-		4		-		4
Share-based payment expense	617		883		183		223
Foreign exchange gain	(667	)	(74	)	(391	)	(156	)
Financial results (financial expenses and interest income)	21		(14	)	3		(1	)
Income taxes	9		6		(1	)	2
Adjusted EBITDA*	957		584		382		183

* See the "non-IFRS" measures section in the Management Discussion and Analysis dated June 10, 2014.

About D-BOX

D-BOX Technologies Inc. designs, manufactures and commercialize 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.

D-BOX^®, D-BOX Motion Code^®, Motion Architects™ and Architectes du Mouvement™ are 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.