Delaware
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333-178648
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27-3164577
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(State or other jurisdiction
of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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250 East Broad Street
Westfield, New Jersey
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07090
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(Address of principal executive offices)
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(Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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Exhibit
Number
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Description
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99.1
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Text of press release issued by Digital Cinema Destinations Corp. on September 17, 2013.
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DIGITAL CINEMA DESTINATIONS CORP.
(Registrant)
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|||
Date: September 17, 2013
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By:
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/s/ Brian Pflug | |
Name: | Brian Pflug | ||
Title: | Chief Financial Officer and Principal Accounting Officer | ||
DATE/TIME: Today—Tuesday, September 17, 2013 at 4:30 p.m. ET
TELEPHONE: dial 800/404-5245. Please call at least five minutes in advance to ensure that you are connected.
WEBCAST: live webcast is available through the Investor Relations section of Digiplex’s website at www.digiplexdest.com. A webcast replay will be available and accessible for at least 30 days following the live event.
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Three Months Ended
June 30,
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Twelve Months Ended
June 30,
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|||||||||||||||
(in thousands)
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2013
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2012
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2013
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2012
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||||||||||||
Consolidated total revenue
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$ | 11,201 | $ | 3,796 | $ | 31,184 | $ | 6,671 | ||||||||
Consolidated net loss
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(1,209 | ) | (1,002 | ) | (5,256 | ) | (1,967 | ) | ||||||||
Consolidated theater level cash flow (1)
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1,922 | 701 | 5,633 | 1,251 | ||||||||||||
Adjusted EBITDA of Digital Cinema Destinations Corp. (1)
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888 | 32 | 2,366 | (410 | ) | |||||||||||
Theaters (period end)
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18 | 8 | 18 | 8 | ||||||||||||
Average screens
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178 | 62 | 130 | 30 | ||||||||||||
Average attendance per screen
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5,667 | 5,506 | 22,014 | 19,331 | ||||||||||||
Average admission per patron
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$ | 7.92 | $ | 7.82 | $ | 7.83 | $ | 8.31 | ||||||||
Average concessions sales per patron
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$ | 3.45 | $ | 3.04 | $ | 3.27 | $ | 2.89 | ||||||||
Total attendance (in thousands)
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1,009 | 339 | 2,852 | 570 |
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June 30,
2013
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June 30,
2012
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||||||
ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash and cash equivalents
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$ | 3,607 | $ | 2,037 | ||||
Accounts receivable
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697 | 238 | ||||||
Inventories
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191 | 78 | ||||||
Deferred financing costs, current portion
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357 | - | ||||||
Prepaid expenses and other current assets
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1,444 | 381 | ||||||
Total current assets
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6,296 | 2,734 | ||||||
Property and equipment, net
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29,171 | 15,432 | ||||||
Goodwill
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3,156 | 980 | ||||||
Intangible assets, net
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6,186 | 4,114 | ||||||
Security deposit
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205 | 3 | ||||||
Deferred financing costs, long term portion, net
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1,225 | - | ||||||
Other assets
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9 | 14 | ||||||
TOTAL ASSETS
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$ | 46,248 | $ | 23,277 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
CURRENT LIABILITIES
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||||||||
Accounts payable
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$ | 2,478 | $ | 851 | ||||
Accrued expenses
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3,964 | 1,088 | ||||||
Payable to vendor for digital systems
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- | 3,334 | ||||||
Notes payable, current portion
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1,373 | 1,000 | ||||||
Capital lease, current portion
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121 | - | ||||||
Earnout from theater acquisition
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296 | 79 | ||||||
Deferred revenue
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305 | 31 | ||||||
Total current liabilities
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8,537 | 6,383 | ||||||
NONCURRENT LIABILITIES
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||||||||
Notes payable, long term portion
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8,615 | - | ||||||
Capital lease, net of current portion
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239 | - | ||||||
Unfavorable leasehold liability, long term portion
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159 | 190 | ||||||
Deferred rent expense
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407 | 83 | ||||||
Deferred tax liability
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199 | 39 | ||||||
TOTAL LIABILITIES
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18,156 | 6,695 | ||||||
COMMITMENTS AND CONTINGENCIES
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||||||||
STOCKHOLDERS’ EQUITY
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||||||||
Preferred Stock, $.01 par value, 10,000,000 shares authorized as of June 30, 2013 and 2012, respectively; and 6 and 0 shares issued of Series B Preferred Stock issued and outstanding as of June 30, 2013 and 2012, respectively
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- | - | ||||||
Class A Common Stock, $.01 par value, 20,000,000 shares authorized; 5,511,938 and 4,519,452 shares issued and outstanding as of June 30, 2013 and 2012, respectively
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55 | 45 | ||||||
Class B Common Stock, $.01 par value, 900,000 shares authorized; 865,000 and 900,000 shares issued and outstanding as of June 30, 2013 and 2012, respectively
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9 | 9 | ||||||
Additional paid-in capital
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25,816 | 19,285 | ||||||
Accumulated deficit
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(7,049 | ) | (2,757 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY OF DIGITAL CINEMA DESTINATIONS CORP
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18,831 | 16,582 | ||||||
Noncontrolling interest
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9,261 | - | ||||||
Total Equity
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28,092 | 16,582 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 46,248 | $ | 23,277 |
Three Months Ended
June 30,
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Twelve Months Ended
June 30,
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|||||||||||||||
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||||||||||||||||
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2013
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2012
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2013
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2012
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||||||||||||
REVENUES
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||||||||||||||||
Admissions
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$ | 7,578 | $ | 2,651 | $ | 21,305 | $ | 4,738 | ||||||||
Concessions
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3,301 | 1,032 | 8,889 | 1,646 | ||||||||||||
Other
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322 | 113 | 990 | 287 | ||||||||||||
<>
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||||||||||||||||
Total revenues
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11,201 | 3,796 | 31,184 | 6,671 | ||||||||||||
<>
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||||||||||||||||
COSTS AND EXPENSES
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||||||||||||||||
Cost of operations:
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||||||||||||||||
Film rent expense
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3,996 | 1,484 | 10,694 | 2,387 | ||||||||||||
Cost of concessions
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595 | 187 | 1,491 | 294 | ||||||||||||
Salaries and wages
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1,412 | 452 | 3,791 | 849 | ||||||||||||
Facility lease expense
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1,600 | 423 | 4,435 | 821 | ||||||||||||
Utilities and other
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2,052 | 594 | 5,797 | 1,152 | ||||||||||||
General and administrative
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1,743 | 855 | 5,054 | 1,945 | ||||||||||||
Change in fair value of earn out
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(254 | ) | - | (333 | ) | (20 | ) | |||||||||
Depreciation and amortization
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665 | 760 | 4,049 | 1,147 | ||||||||||||
<>
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||||||||||||||||
Total costs and expenses
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11,809 | 4,755 | 34,978 | 8,575 | ||||||||||||
<>
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||||||||||||||||
OPERATING LOSS
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(608 | ) | (959 | ) | (3,794 | ) | (1,904 | ) | ||||||||
OTHER EXPENSE
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||||||||||||||||
Interest expense
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(379 | ) | (12 | ) | (999 | ) | (12 | ) | ||||||||
Non-cash interest expense
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(75 | ) | - | (228 | ) | - | ||||||||||
Other expense
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(14 | ) | (7 | ) | (60 | ) | (9 | ) | ||||||||
<>
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||||||||||||||||
LOSS BEFORE INCOME TAXES
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(1,076 | ) | (978 | ) | (5,081 | ) | (1,925 | ) | ||||||||
Income tax expense
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133 | 24 | 175 | 42 | ||||||||||||
<>
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||||||||||||||||
NET LOSS
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$ | (1,209 | ) | $ | (1,002 | ) | $ | (5,256 | ) | $ | (1,967 | ) | ||||
<>
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||||||||||||||||
Net loss attributable to non-controlling interest
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251 | - | 964 | - | ||||||||||||
Net loss attributable to Digital Cinema Destinations Corp.
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$ | (958 | ) | $ | (1,002 | ) | $ | (4,292 | ) | $ | (1,967 | ) | ||||
Preferred stock dividends
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(5 | ) | (21 | ) | (16 | ) | (257 | ) | ||||||||
<>
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||||||||||||||||
Net loss attributable to common stockholders
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$ | (963 | ) | $ | (1,023 | ) | $ | (4,308 | ) | $ | (2,224 | ) | ||||
<>
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||||||||||||||||
Net loss per Class A and Class B common share – basic and diluted attributable to common stockholders
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$ | (0.15 | ) | $ | (0.23 | ) | $ | (0.74 | ) | $ | (1.00 | ) | ||||
Weighted average common shares outstanding
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6,324,272 | 4,472,914 | 5,828,283 | 2,218,045 |
Three months ended
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Twelve months ended
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|||||||||||||||
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June 30,
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June 30,
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||||||||||||||
2013
|
2012
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2013
|
2012
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|||||||||||||
Net loss
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$ | (1,209 | ) | $ | (1,002 | ) | $ | (5,256 | ) | $ | (1,967 | ) | ||||
Add back:
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||||||||||||||||
Depreciation and amortization
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665 | 760 | 4,049 | 1,147 | ||||||||||||
Interest expense
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454 | 24 | 1,227 | 12 | ||||||||||||
Income tax expense
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133 | 24 | 175 | 42 | ||||||||||||
Other expense
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14 | 7 | 60 | 9 | ||||||||||||
Deferred rent expense (5)
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132 | 33 | 324 | 63 | ||||||||||||
Stock-based compensation (2)
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400 | 155 | 549 | 204 | ||||||||||||
Non-recurring organizational and M&A-related professional fees (3)
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90 | 31 | 642 | 80 | ||||||||||||
Management fees (4)
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288 | - | 543 | - | ||||||||||||
(Deduct) Add:
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||||||||||||||||
Start Media's share of Adjusted EBITDA
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(79 | ) | - | 53 | - | |||||||||||
Adjusted EBITDA of Digital Cinema Destinations Corp.
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$ | 888 | $ | 32 | $ | 2,366 | $ | (410 | ) |
Three months ended
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Twelve months ended
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|||||||||||||||
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June 30,
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June 30,
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||||||||||||||
2013
|
2012
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2013
|
2012
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|||||||||||||
Net loss
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$ | (1,209 | ) | $ | (1,002 | ) | $ | (5,256 | ) | $ | (1,967 | ) | ||||
Add back:
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||||||||||||||||
General and administrative (1)
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1,743 | 855 | 5,054 | 1,945 | ||||||||||||
Depreciation and amortization
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655 | 760 | 4,049 | 1,147 | ||||||||||||
Income tax expense
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133 | 24 | 175 | 42 | ||||||||||||
Interest expense
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454 | 24 | 1,227 | 12 | ||||||||||||
Other expense
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14 | 7 | 60 | 9 | ||||||||||||
Deferred rent expense (5)
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132 | 33 | 324 | 63 | ||||||||||||
Consolidated TLCF
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$ | 1,922 | $ | 701 | $ | 5,633 | $ | 1,251 |
Contacts:
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Bud Mayo, Chairman/CEO
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Robert Rinderman or Jennifer Neuman
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Digital Cinema Destinations Corp.
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JCIR
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908/396-1362 or bmayo@digiplexdest.com
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212/835-8500 or DCIN@jcir.com
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