D-BOX Technologies Inc.
TSX : DBO

D-BOX Technologies Inc.

August 14, 2013 09:13 ET

D-BOX Technologies Increases Its Recurring Revenues by More than 130%

Stimulated by an excellent selection of films, D-BOX considerably increases its revenues from utilization rights, rental and maintenance fees significantly improving its gross margin excluding amortization

LONGUEUIL, QUEBEC--(Marketwired - Aug. 14, 2013) - D-BOX Technologies Inc. (TSX:DBO), a leader in innovative motion technology announced today revenues of $3,498,599 for the first quarter ended June 30, 2013 in comparison to revenues of $3,567,876 in the first quarter of the previous fiscal year. Also, the gross margin excluding amortization increases from 55% to 63% generating for a positive adjusted EBITDA for a fifth consecutive quarter.

Highlights

  • D-BOX records a fifth consecutive quarterly positive adjusted EBITDA:
    • The entertainment market generates revenues from utilization rights, rental and maintenance fees up by more than 130% in comparison with the last quarter ended March 31, 2013.
    • Five productions from Hollywood's main studios shown in theatres by D-BOX were ranked #1 at the North American box-office during opening weekend.
    • The industrial market grows by 20% and continues to offer an interesting diversification to D-BOX's revenues.
    • Growth of the gross margin excluding amortization which represents 63% of revenues in comparison to 55% for the corresponding quarter of last year resulting from the utilizations rights, rental and maintenance fees' exceptional performance.
  • Continuous deployment with international and strategic commercial theatre chains:
    • Cinemark, the third largest chain in the United-States, continues its deployment in South America installing two new theatres equipped with D-BOX's technology in Columbia. These installations follow the deployment of two initial screens in Peru in November 2012.
    • Cineplex, the fifth most important theatre chain in North America and one of D-BOX's most significant customers in the entertainment market will offer going forward, the purchase of D-BOX tickets through the Internet.
Information from the Consolidated Statements of Operations and Comprehensive Loss
For the first quarter ended June 30
(in thousands of $CA, except per share amounts)
2013 2012
Revenues 3,499 3,568
Adjusted EBITDA 13 117
Net loss (519 ) (590 )
Basic and diluted net loss per share (0.0032 ) (0.0036 )
Information from the Consolidated Balance Sheets
June 30, 2013 March 31, 2013
Cash and cash equivalents 4,577 5,708
Inventories 4,597 4,578

Commenting on the quarterly realizations, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX, declared: "Our financial results reflect the business development efforts deployed during the last quarters to ensure growth in our revenues while exercising tight control over our operating expenses. Considering these results, we continue to manage our operations to increase our profitability."

Additional Informational in Regards to First Quarter Ended June 30, 2013

The financial information relating to the first quarter ended June 30, 2013 should be read in conjunction with the Corporation's condensed consolidated financial statements and Management's Discussion and Analysis dated August 13, 2013. 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 sustained despite remaining subject to a certain level of volatility. In combination with this expected growth of revenues over the next few quarters, D-BOX also forecasts to gradually increase the level of its operating expenses. The Corporation aims 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 designates net loss 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.

For the first quarter
ended June 30
2013 2012
Net loss (519 ) (590 )
Amortization of property, plant and equipment 588 486
Amortization of intangible assets 70 62
Amortization of other assets 23 22
Write-off of property, plant and equipment 16 -
Share-based payment expense 167 261
Foreign exchange gain (344 ) (118 )
Financial results (financial expenses and interest income) 6 (10 )
Income taxes 6 4
Adjusted EBITDA 13 117

About D-BOX

D-BOX Technologies Inc. designs, manufactures and commercializes cutting-edge motion systems intended mainly for the entertainment and industrial simulation markets. This unique and patented technology, the D-BOX Motion Code, uses motion effects specifically programmed for each visual content which are sent to a motion system integrated into either a platform or 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 Hollywood 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.

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
    Vice-President and Chief Financial Officer
    D-BOX Technologies Inc.
    450-442-3003 ext 296
    laudet@d-box.com

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