D-BOX Technologies Increases its Sales by 21%

LONGUEUIL, QUÉBEC--(Marketwired - Nov. 14, 2013) - D-BOX Technologies Inc. (TSX:DBO), a leader in innovative motion technology announced today revenues of $4.5 million for the second quarter ended September 30, 2013 in comparison to revenues of $3.7 million in the second quarter of the previous fiscal year. In addition to these quarterly revenues and a sixth consecutive positive adjusted EBITDA, D-BOX increases its cash position by 40% to $6.4 million as at September 30, 2013 in comparison to $4.6 million as at June 30, 2013.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

• Sustained growth in revenues, of adjusted EBITDA and available funds:
  • 21% increase of quarterly revenues
  • Positive adjusted EBITDA of $229 k
  • Increase of 40% in available cash to $6.4 million

Second quarter and six-month period ended September 30 (in thousands of $CA, except per share amounts)
	Second Quarter				Six Months
	2013		2012		2013		2012
Revenues	4,495		3,708		7,994		7,276
Adjusted EBITDA	229		130		242		247
Net loss	(675	)	(1,204	)	(1,194	)	(1,794	)
Basic and diluted net loss per share	(0.0041	)	(0.0074	)	(0.0073	)	(0.0110	)
Information from the consolidated Balance Sheet
			Sept. 30, 2013		June 30, 2013		March 31, 2013
Cash and cash equivalents			6,402		4,577		5,708

• Continuous deployment of 29 new screens with international and strategic theatre chains:
  
  
  • 15 new motion systems installed since July 1:
    
    
    • Kinomax: Russia (3)
    • Barguzin: Russia (2)
    • Luxor: Russia (1)
    • Cinema West, The Grand : United States (3)
    • Les Cinémas Gaumont Pathé: France (3)
    • Golden Harvest: Hong Kong (1)
    • Aeon Entertainment: Japan (1)
    • JT Bioscopen: Netherlands (1)
      
      
  • 14 new theatre chains added to the backlog:
    
    
    • Cinemark USA: United States (4)
    • Cinemark South America: Chile (2)
    • Les Cinémas Gaumont Pathé: France and Switzerland (2)
    • Golden Village : Singapore (2)
    • Linia Kino Oskar Gulliver : Ukraine (2)
    • Golden Harvest: Hong Kong (1)
    • Cinéma Beloeil: Canada (1)

• New longer stroke actuators will be presented by D-BOX in December at the world's largest trade show in the fields of modeling, simulation and training (ITSEC: The Interservice/Industry Training, Simulation and Education Conference). For the industrial market, these new applications will allow opening new markets.

Commenting on the quarterly realizations, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX, declared: "Our most recent financial demonstrate once again the soundness of our growth strategy in both the industrial and entertainment markets. I am convinced that this strategy will have positive effects at every level."

ADDITIONAL INFORMATION IN REGARDS TO THE SECOND QUARTER AND SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2013

The financial information relating to the second quarter and six-month period ended September 30, 2013 should be read in conjunction with the Corporation's condensed consolidated financial statements and Management's Discussion and Analysis dated November 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 submarkets.

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 forecasts to gradually increase the level of its operating expenses aiming amongst others, to support the launch of new applications for its technology in the industrial and other markets. Generally speaking, 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.

		Second quarter ended September 30				Six-month period ended September 30
		2013		2012		2013		2012
Net loss		(675	)	(1,204	)	(1,194	)	(1,794	)
	Amortization of property, plant and equipment	449		428		1,037		914
	Amortization of intangible assets	74		65		144		127
	Amortization of other assets	7		7		30		29
	Write-off of property, plant and equipment	21		-		37		-
	Share-based payment expense	124		231		291		492
	Foreign exchange loss (gain)	218		609		(126	)	491
	Financial results (financial expenses and interest income)	11		(6	)	17		(16	)
	Income taxes	-		-		6		4
Adjusted EBITDA		229		130		242		247

ABOUT D-BOX

D-BOX Technologies Inc. designs, manufactures and commercializes 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 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. By reaching agreements with various industry leaders in the entertainment and industrial markets, D-BOX's 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.