D-BOX Technologies Announces Revenues of $5.0 Million for Its Last Quarter

LONGUEUIL, QUÉBEC--(Marketwired - Feb. 12, 2015) - Technologies D-BOX inc. (TSX:DBO), a leader in innovative motion technology, today announced revenues of $5.0 million for its third quarter ended December 31, 2014 compared to revenues of $4.6 million for the quarter ended December 31, 2013.

FINANCIAL HIGHLIGHTS

• Quarterly revenues of $4,994 k representing an increase of 8% compared to last year: up 25% to $3,450 k in the entertainment market and down 17% to $1,544 k in the industrial market.
  
  
• 31% increase in the number of theatres equipped with D-BOX MFX systems over the last year with 297 theatres installed worldwide. As at December 31, 2014, the backlog consists of 55 screens of which 35 are scheduled to be delivered and installed in the upcoming quarter.
  
  
• Quarterly net loss of $315 k and adjusted EBITDA* of $200 k for the quarter.
  
  
• Cash flows relating to operating activities before working capital variations of $460 k for the first nine months of the fiscal year.

Third quarter and nine-month period ended December 31 (in thousands of $CA, except per share amounts)
	Third Quarter				Nine Months
	2014		2013		2014		2013
Revenues	4,994		4,619		13,908		12,613
Adjusted EBITDA *	200		333		591		575
Net Loss	(315	)	(352	)	(1,328	)	(1,546	)
Basic and diluted net loss per share	(0.0019	)	(0.0021	)	(0.0081	)	(0.0094	)
Information from the consolidated balance sheet
	As at Dec. 31, 2014				As at Sept. 30, 2014		As at March 31, 2014
Cash and cash equivalents	4,512				5,038		6,717

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

OPERATIONAL HIGHLIGHTS

• New agreement with Cinemark, the third largest theatre chain in the United States with 4,473 screens, providing for the deployment of 20 screens in major US markets and bringing to 24 the number of screens with this chain in the United States. As of today, the total number of screens either installed or to be installed nationally or internationally amounts to 366 screens including 72 screens in backlog.
  
  
• Over the quarter, D-BOX has developed new products as a result of its investments in research and development, including:
  
  For the commercial theatre market - The launch of a two-seat motion system allowing D-BOX to enter new markets.
  
  For the home entertainment market - The launch of a new universal Home Entertainment Motion Controller (HEMC) that synchronizes the motion code with any visual content, whether through a digital data storage device (DVD, Blu-ray®, hard drive) or through online streaming via Netflix®, Apple TV®, YouTube® or any website that offers visual content.
  
  For the industrial market - The ongoing commercialization of a new three-inch actuator offering a larger array of movement possibilities, a longer reach and better weight-lifting capabilities. This actuator is particularly adapted to the needs of the simulation and training markets and has been developed and tested with customers.

Commenting on the quarterly realizations, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX, declared: "We are very pleased with the progression of our business since the beginning of the third quarter which was highlighted by the signing of 55 new theatre screens. We also proceeded with the launch of a new two-seat motion system which will allow us to enter new markets, and the launch of a new HEMC motion controller for home entertainment. These achievements will without any doubt contribute to the Corporation's future growth".

ADDITIONAL INFORMATION IN REGARDS TO THE THIRD QUARTER AND NINE-MONTH PERIOD ENDED DECEMBER 31, 2014

The financial information relating to the third quarter and nine-month period ended December 31, 2014 should be read in conjunction with the Corporation's condensed consolidated financial statements and Management's Discussion and Analysis dated February 12, 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, the investments related to new products and the strength of the backlog at the end of the quarter, D-BOX expects that the upward trend in revenue will continue. In conjunction with the anticipated growth in revenue, D-BOX expects to gradually increase the level of its operating expenses related to sales, marketing research and development that will support the commercialization of new products. In general, 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 NET INCOME (NET LOSS)**

The adjusted EBITDA allows to evaluate the Corporation's profitability and its capacity to generate funds from its operating activities. It designates the net income (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 adjusted EBITDA to the net income (net loss).

		Third Quarter ended December 31				Nine-month period ended December 31
		2014		2013		2014		2013
Net Loss		(315	)	(352	)	(1,328	)	(1,546	)
	Amortization of property, plant and equipment	541		492		1,533		1,529
	Amortization of intangible assets	121		71		318		215
	Amortization of other assets	23		38		59		68
	Write-off of property, plant and equipment	10		86		82		123
	Gain on disposal of property, plant and equipment	―		―		(36	)	―
	Share-based payment expense	105		143		325		434
	Foreign exchange gain	(295	)	(150	)	(388	)	(276	)
	Financial results (financial expenses and interest income)	14		1		25		18
	Income taxes	(4	)	4		1		10
Adjusted EBITDA		200		333		591		575

**	See the "Non-IFRS" measures section in the Management Discussion and Analysis dated February 11, 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^®, 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.