D-BOX Technologies Inc.

D-BOX Technologies Inc.

February 14, 2013 07:00 ET

D-BOX Announces a Quarterly Revenue Increase of Over 85%

LONGUEUIL, QUÉBEC--(Marketwire - Feb. 14, 2013) - D-BOX Technologies Inc. (TSX:DBO), a leader in innovative motion technology, today announced revenues of $3,392,132 for its third quarter ended December 31, 2012 which represents an increase of 87% in comparison to revenues of $1,810,413 realized in the third quarter of the previous fiscal year. Also, for the third consecutive quarter, D-BOX generates a positive adjusted EBITDA while significantly decreasing its net loss.

Quarterly highlights of the third quarter of the 2013 fiscal year

  • Significant increase in revenue compared to last year:
    • Quarterly increase of 87%
      • Commercial theaters : + 288% including:
        • systems sold which went from $50 k to $1,115 k; and
        • utilization rights, rental and maintenance fees: + 34%
      • Original Equipment Manufacturers (« OEMs ») : + 28%
    • 71% increase for the first nine months
  • Important improvement of adjusted EBITDA:
    • Quarterly adjusted EBITDA of $154 k in Q3 F2013 versus ($1,002 k) in Q3 F2012
    • Adjusted EBITDA for the first nine months of F2013 of $401 k compared to ($2,985 k) in F2012
  • Significant decrease of the net loss:
    • Significant decrease of the quarterly net loss which stood at ($273 k) in Q3 F2013 compared to ($1,958 k) in Q3 F2012
    • Significant decrease of the net loss, by more than 55%, for the first nine months of the fiscal year; ($2,067 k) in F2013 compared to ($4,732 k) in F2012
For the third quarter and nine-month period ended
December 31
(in thousands of CA$ except per share data)
Third quarter Nine months
F2013 F2012 F2013 F2012
Revenues 3,392 1,810 10,668 6,249
Adjusted EBITDA* 154 (1,002 ) 401 (2,985 )
Net loss (273 ) (1,958 ) (2,067 ) (4,732 )
Basic and diluted net loss per share (0.0016 ) (0.0120 ) (0,0126 ) (0,0289 )
Information from the Consolidated Balance Sheet
Dec. 31, 2012 March 31, 2012
Cash and cash equivalents 6,972 9,320
Working capital 12,053 14,870
Total assets 24,680 25,823
Property, plant and equipment 9,254 7,993
* See the reconciliation table at the end of this press release.

Commenting on the quarterly and year-to-date realizations, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX declared: "Given its reliability and reputation in its business segments, D-BOX continues to demonstrate great traction in revenue while keeping operating expenses under tight control. With solid financials and a brand which is gaining growing awareness, D-BOX is in an excellent position to pursue its growth."

Additional informational in regards to the third quarter and nine-month periods ended December 31, 2012

The financial information in regards to the three and nine-month periods ended December 31, 2012 should be read in conjunction with the Corporation's interim condensed consolidated financial statements and Management's Discussion and Analysis dated February 12, 2013. These documents are available at the www.sedar.com website.


Given its growing revenues and relatively stable operating expenses, D-BOX anticipates being able to maintain the upwards trend of its adjusted EBITDA on a comparative quarterly basis.

Broadly speaking, D-BOX will focus its commercialization efforts on the two following business development segments, namely: commercial theatres and Original Equipment Manufacturers (OEMs), which both target their specific business market.

With respect to commercial theatres, D-BOX continues to develop its international selling efforts while aiming to gradually increase foreign content which will allow for better market penetration outside of North America.

In North America, D-BOX intends to continue to approach the most significant exhibitors while working with existing customers to optimize revenues.

To support business development efforts of the Original Equipment Manufacturers' market (OEMs), D-BOX will introduce over the next few quarters, a series of new actuators offering a broader range of action and allowing for considerable lifting capacity up to 227 kilos or 500 pounds per actuator. By doing so, D-BOX will propose new solutions which better answer specific needs of the industrial simulation market giving the Corporation an excellent competitive positioning.

Reconciliation of the adjusted EBITDA to the net loss

The adjusted EBITDA designates earnings 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 cash flows provided by operations.

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

Quarter ended
December 31
Nine-month period ended
December 31
2012 2011 2012 2011
Net loss (273 ) (1,958 ) (2,067 ) (4,732 )
Amortization of property, plant and equipment 584 354 1,498 988
Amortization of intangible assets 64 52 191 147
Amortization of other assets 12 36 41 69
Write-off of amortization of property, plant and equipment 5 - 5 -
Share-based payment expense 168 362 660 1,053
Foreign exchange loss (gain) (409 ) 176 82 (405 )
Financial results (financial expenses and interest income) 3 (21 ) (13 ) (104 )
Income taxes - (3 ) 4 (1 )
Adjusted EBITDA* 154 (1,002 ) 401 (2,985 )
* See the « Non-IFRS Financial Measures » in the management discussion and analysis dated February 12, 2013.
** For the quarter ended December 31, 2012, the $409 k foreign exchange gain includes an unrealized foreign exchange gain of $222 k as a result of the translation of the net US dollars denominated monetary assets at the end-of-period date. For the nine-month period ended December 31, 2012, the foreign exchange loss amounted to $82 k which includes an unrealized foreign exchange loss of $29 k

About D-BOX

D-BOX Technologies Inc. designs, manufactures and markets cutting-edge motion systems intended mainly for the entertainment and industrial simulation industries. This unique and patented technology, D-BOX Motion Code, uses motion effects specifically programmed for each visual content which are sent to a motion system integrated into 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. As of today, many major studios offer D-BOX Motion Code on their motion pictures in commercial theatres, on DVDs and Blu-rays. By reaching agreements with various industry leaders, D-BOX's award-winning motion technology is gradually proving itself as a new global standard. 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.

For more information, please visit D-BOX's website at www.d-box.com.

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.

Contact Information

  • Luc Audet
    Chief Financial Officer
    D-BOX Technologies Inc.
    450-442-3003 ext 296

    Investor Relations
    Marc Jasmin, CPA, CMA, President
    Jasmin Financial Communications