D-BOX Technologies Announces a 15% Increase in Quarterly Revenues and 33% Increase in Screens Signed

LONGUEUIL, QUÉBEC--(Marketwired - Nov. 10, 2015) - D-BOX Technologies inc. (TSX:DBO), a leader in immersive motion technology, today announced a 15% increase in revenues to $5.0 M in comparison to $4.4 M for the second quarter ended September 30, 2014 and a 33% increase to 420 screens signed in the last twelve months.

FINANCIAL HIGHLIGHTS

• Growth in revenue:
  • Quarterly revenue up by 15% to $5,021 k:
    • Sales for the Entertainment market: +8% to $3,634 k;
    • Sales for the Industrial market: +39% to $1,387 k.
• Net loss of $208 k for the quarter compared to net income of $192 k last year.
• Adjusted EBITDA* of $132 k for the quarter compared to $372 k last year.
• Cash flows generated from the operating activities of $943 k for the six-month period compared to a use of funds of $805 k last year.
• Loan of $5,000 k received from the Caisse de dépôt et placement du Québec on August 5, 2015.

Second quarter and six-month period ended September 30 (in thousands of CAD, except per share amounts)
	Second quarter			Six months
	2015		2014	2015		2014
Revenues	5,021		4,354	12,209		8,914
Adjusted EBITDA*	132		372	1,283		391
Net income (loss)	(208	)	192	(178	)	(1,013	)
Basic and diluted net income (loss) per share	(0.0013	)	0.0012	(0.0011	)	(0.0062	)
Information from the consolidated balance sheet
	As at September 30, 2015			As at March 31, 2015
Cash and cash equivalents	11,535			6,710

*	See the reconciliation table of adjusted EBITDA to the net income (loss) below.

OPERATIONAL HIGHLIGHTS

• In the last twelve months, D-BOX increased by 33% the number of screens signed to 420.
• D-BOX continues its deployment in China, one of the fastest growing market in the world for commercial theatre exhibitors. As at September 30, 2015, D-BOX had 10 screens installed in the country compared to 1 screen installed as at September 30, 2014. Furthermore, D-BOX is actively pursuing its business development activities in this high-potential country.
• D-BOX demonstrates its capacity to participate in the convergence between virtual reality and the entertainment world by establishing a partnership with Sony Pictures Entertainment (SPE) in the context of the launch of the Goosebumps movie. This partnership will serve as an important technological showcase for the D-BOX immersive experience in eleven cities across North America.
• Progression in the industrial market with the installation of two new sites: the Museo Interactivo Audiovisual of Las Condes (Chile) (www.mui.cl), and the Richmond Olympic Experience (ROX), the first member of the network of museums of the international Olympic Committee located in North America (www.therox.ca).

Commenting on the quarterly results, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX, declared: "We are very pleased to demonstrate again that our second quarter results continue to show an upward trend in revenue and a positive adjusted EBITDA. Our growth strategy combined with a solid financial situation bodes well for the results of the upcoming quarters".

ADDITIONAL INFORMATION WITH RESPECT TO SECOND QUARTER AND SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2015

The financial information relating to the second quarter and six-month period ended September 30, 2015 should be read in conjunction with the Corporation's unaudited interim condensed consolidated financial statements and Management's Discussion and Analysis dated November 9, 2015. 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 the general upward trend in revenue to continue.

In combination with this expected growth of revenue, D-BOX also forecasts to gradually increase the level of its operating expenses aiming, amongst others, to support the sales and marketing of technological innovations that will help solidify D-BOX's position in existing sub-markets and will facilitate entering new ones. Generally speaking, the Corporation aims to maintain a positive adjusted EBITDA and intends to manage its operations accordingly.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)**

The adjusted EBITDA provides useful and complementary information which allows, among other things, the evaluation of profitability and cash flows provided by operations. It is comprised of net income (loss) but excludes the following: items not affecting cash, foreign exchange gain or loss, financial expenses, interest income and income taxes.

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

		Second quarter ended September 30				Six-month period ended September 30
(in thousands of $)		2015		2014		2015		2014
Net income (loss)		(208	)	192		(178	)	(1,013	)
	Amortization of property and equipment	468		477		1,067		992
	Amortization of intangible assets	137		121		267		197
	Amortization of other assets	19		15		82		36
	Write-off of property and equipment	44		18		134		72
	Gain on disposal of property and equipment	-		-		-		(36	)
	Share-based payments	62		105		119		220
	Foreign exchange gain	(493	)	(564	)	(334	)	(93	)
	Financial expenses (income)	103		8		115		11
	Income taxes	-		-		11		5
Adjusted EBITDA		132		372		1,283		391

**	See the "Non-IFRS" measures section in the Management Discussion and Analysis dated November 9, 2015.

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^®, LIVE THE ACTION®, MOTION ARCHITECTS® and MOVE THE WORLD^® 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.