D-Box Technologies Inc.

TSX : DBO


D-Box Technologies Inc.

August 13, 2014 09:14 ET

D-BOX Technologies Increases its Quarterly Revenue by 30%

LONGUEUIL, QUEBEC--(Marketwired - Aug. 13, 2014) - D-BOX Technologies inc. (TSX:DBO), a leader in innovative motion technology, today announced revenues of $4.6 million for its first quarter ended June 30, 2014, an increase of 30% compared to revenues of $3.5 million for the quarter ended June 30, 2013.

FINANCIAL HIGHLIGHTS

  • Quarterly revenues up 30% to $4,560 k including $1,143 k of recurring revenue from utilization rights, rental and maintenance and $1,878 k in system sales for the entertainment market.

  • Adjusted EBITDA* of $19 k for the quarter representing a ninth consecutive positive adjusted EBITDA and net loss of $1,205 k. As expected, D-BOX increased the level of sales and marketing and R&D expenses to support the planned launch of new products and the anticipated revenue growth.

  • Investments in intangible assets of $351 k including $266 k for the development of new products. These new products have brought in revenues of more than $100 k during the quarter.
First quarter ended June 30
(in thousands of $CA, except per share amounts)
2014 2013
Revenues 4,560 3,499
Adjusted EBITDA* 19 13
Net Loss (1,205 ) (519 )
Basic and net loss per share (0.0074 ) (0.0032 )
Information from the consolidated balance sheet
June 30, 2014 March 31, 2014
Cash and cash equivalents 4,057 6,717
Working capital 10,873 11,502
* See the reconciliation table of adjusted EBITDA to the net loss on the next page of this press release.

OPERATIONAL HIGHLIGHTS

  • Signing of new contracts in the entertainment market representing 20 screens including:
    • 8 in South America
    • 4 in Japon
    • 3 in Germany
    • 3 in Malaysia
    • 2 in United Stated
  • Nine productions from major Hollywood studios were coded by D BOX for presentation in theatres during the quarter, of which 6 ranked # 1 at the North American box office on opening weekend.

Commenting on the achievements of the quarter, Claude Mc Master, President and Chief Executive Officer of D BOX said: "Although we expected to increase our operating expenses in order to achieve our growth strategy, the increase in revenues continues and we continue to record positive adjusted EBITDA for the ninth consecutive quarter. At the same time, we are investing in the development of new products that will allow us to respond to market demands in the coming quarters."

ADDITIONAL INFORMATION WITH RESPECT TO THE FIRST QUARTER ENDED JUNE 30, 2014

The financial information relating to the first quarter should be read in conjunction with the Corporation's consolidated financial statements and Management's Discussion and Analysis dated August 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 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. 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 to evaluate the Corporation's profitability and its capacity to generate funds from its operating activities. 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.

First quarter ended June 30
2014 2013
Net loss (1 205 ) (519 )
Amortization of property, plant and equipment 515 588
Amortization of intangible assets 76 70
Amortization of other assets 21 23
Write-off of property, plant and equipment 54 16
Gain on disposal of property, plant and equipment (36 ) -
Share-based payment expense 115 167
Foreign exchange loss (gain) 471 (344 )
Financial results (financial expenses and interest income) 3 6
Income taxes 5 6
Adjusted EBITDA 19 13
** See the "non-IFRS" measures section in the Management Discussion and Analysis dated August 12, 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.

Contact Information

  • D-Box Technologies Inc.
    Luc Audet
    Vice-President and Chief Financial Officer
    450-442-3003 ext 296
    laudet@d-box.com
    www.d-box.com

    Investor Relations:
    Marc Jasmin CPA, CMA, President
    Jasmin Financial Communications
    514-231-2360
    marc@comjasmin.com