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 November 7, 2013.
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DIGITAL CINEMA DESTINATIONS CORP.
(Registrant)
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|||
Date: November 7, 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-Thursday, November 7, 2013 at 4:30 pm ET
TELEPHONE: dial 800 268 5851. 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
September 30,
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||||||||
(in thousands)
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2013
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2012
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||||||
Consolidated total revenue
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$ | 11,469 | $ | 4,347 | ||||
Consolidated net loss
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(1,374 | ) | (661 | ) | ||||
Consolidated theater level cash flow (1)
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1,829 | 1,009 | ||||||
Adjusted EBITDA of Digital Cinema Destinations Corp. (1)
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1,007 | 358 | ||||||
Theaters (period end)
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19 | 9 | ||||||
Average screens
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183 | 73 | ||||||
Average attendance per screen
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5,893 | 5,690 | ||||||
Average admission per patron
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$ | 7.59 | $ | 7.23 | ||||
Average concessions sales per patron
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$ | 3.27 | $ | 2.88 | ||||
Total attendance (in thousands)
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1,077 | 416 |
(1)
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Theater level cash flow and Adjusted EBITDA are supplemental non-GAAP financial measures. Reconciliations of these metrics to the net loss for the three months ended September 30, 2013 and 2012 are included in the supplementary tables accompanying this news announcement.
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September 30,
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June 30,
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|||||||
2013
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2013
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|||||||
ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash and cash equivalents
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$ | 1,337 | $ | 3,607 | ||||
Accounts receivable
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660 | 697 | ||||||
Inventories
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170 | 191 | ||||||
Deferred financing costs, current portion
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357 | 357 | ||||||
Prepaid expenses and other current assets
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1,391 | 1,444 | ||||||
Total current assets
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3,915 | 6,296 | ||||||
Property and equipment, net
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29,163 | 29,171 | ||||||
Goodwill
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3,156 | 3,156 | ||||||
Intangible assets, net
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6,029 | 6,186 | ||||||
Security deposits
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207 | 205 | ||||||
Deferred financing costs, long term portion, net
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1,135 | 1,225 | ||||||
Other assets
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47 | 9 | ||||||
TOTAL ASSETS
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$ | 43,652 | $ | 46,248 | ||||
LIABILITIES AND EQUITY
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||||||||
CURRENT LIABILITIES
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||||||||
Accounts payable
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$ | 1,997 | $ | 2,478 | ||||
Accrued expenses and other current liabilities
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1,957 | 3,964 | ||||||
Notes payable, current portion
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1,746 | 1,373 | ||||||
Capital lease, current portion
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97 | 121 | ||||||
Earn out from theater acquisitions
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355 | 296 | ||||||
Deferred revenue
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375 | 305 | ||||||
Total current liabilities
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6,527 | 8,537 | ||||||
NONCURRENT LIABILITIES
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||||||||
Notes payable, long term portion
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8,397 | 8,615 | ||||||
Capital lease, net of current portion
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240 | 239 | ||||||
Unfavorable leasehold liability, long term portion
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150 | 159 | ||||||
Deferred rent expense
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512 | 407 | ||||||
Deferred tax liability
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206 | 199 | ||||||
TOTAL LIABILITIES
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16,032 | 18,156 | ||||||
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 September 30, 2013 and June 30, 2013, 6 shares of Series B Preferred Stock issued and outstanding as of September 30, 2013 and June 30, 2013 and 2012, respectively
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- | - | ||||||
Class A Common stock, $.01 par value: 20,000,000 shares authorized; and 5,642,208 and 5,511,938 shares issued and outstanding as of June 30, 2013 and 2012, respectively
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56 | 55 | ||||||
Class B Common stock, $.01 par value, 900,000 shares authorized; 849,000 and 865,000 shares issued and outstanding as of September 30, 2013 and June 30, 2013, respectively
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8 | 9 | ||||||
Additional paid-in capital
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26,418 | 25,816 | ||||||
Accumulated deficit
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(8,100 | ) | (7,049 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY OF DIGITAL CINEMA DESTINATIONS CORP.
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18,382 | 18,831 | ||||||
Non-controlling interest
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9,238 | 9,261 | ||||||
Total equity
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27,620 | 28,092 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 43,652 | $ | 46,248 |
Three Months Ended
September 30,
|
||||||||
2013
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2012
|
|||||||
REVENUES
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||||||||
Admissions
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$ | 7,758 | $ | 3,009 | ||||
Concessions
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3,338 | 1,199 | ||||||
Other
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373 | 139 | ||||||
Total revenues
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11,469 | 4,347 | ||||||
COSTS AND EXPENSES
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||||||||
Cost of operations:
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||||||||
Film rent expense
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3,778 | 1,412 | ||||||
Cost of concessions
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602 | 164 | ||||||
Salaries and wages
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1,450 | 513 | ||||||
Facility lease expense
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1,470 | 523 | ||||||
Utilities and other
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2,386 | 768 | ||||||
General and administrative
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1,318 | 737 | ||||||
Change in fair value of earn out
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59 | - | ||||||
Depreciation and amortization
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1,335 | 849 | ||||||
Total costs and expenses
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12,398 | 4,966 | ||||||
OPERATING LOSS
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(929 | ) | (619 | ) | ||||
OTHER EXPENSE
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||||||||
Interest expense
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(351 | ) | (23 | ) | ||||
Non-cash interest expense
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(76 | ) | (2 | ) | ||||
Other expense
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(9 | ) | - | |||||
LOSS BEFORE INCOME TAXES
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(1,365 | ) | (644 | ) | ||||
Income tax expense
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9 | 17 | ||||||
NET LOSS
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$ | (1,374 | ) | $ | (661 | ) | ||
Net loss attributable to non-controlling interest
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323 | - | ||||||
Net loss attributable to Digital Cinema Destinations Corp.
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$ | (1,051 | ) | $ | (661 | ) | ||
Preferred stock dividends
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(5 | ) | (1 | ) | ||||
Net loss attributable to common stockholders
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$ | (1,056 | ) | $ | (662 | ) | ||
Net loss per Class A and Class B common share- basic and diluted attributable to common stockholders
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$ | (0.16 | ) | $ | (0.12 | ) | ||
Weighted average common shares outstanding:
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6,470,484 | 5,419,452 |
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Three months ended September 30,
|
|||||||
2013
|
2012
|
|||||||
Net loss
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$ | (1,374 | ) | $ | (661 | ) | ||
Add back:
|
||||||||
General and administrative (1)
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1,318 | 737 | ||||||
Depreciation and amortization
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1,335 | 849 | ||||||
Income tax expense
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9 | 17 | ||||||
Interest expense
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427 | 25 | ||||||
Other expense
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9 | - | ||||||
Deferred rent expense (5)
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105 | 42 | ||||||
Consolidated TLCF
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$ | 1,829 | $ | 1,009 |
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Three months ended September 30,
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|||||||
2013
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2012
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|||||||
Net loss
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$ | (1,374 | ) | $ | (661 | ) | ||
Add back:
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||||||||
Depreciation and amortization
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1,335 | 849 | ||||||
Interest expense
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427 | 25 | ||||||
Income tax expense
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9 | 17 | ||||||
Other expense
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9 | - | ||||||
Deferred rent expense (5)
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105 | 42 | ||||||
Stock-based compensation (2)
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239 | 43 | ||||||
Non-recurring organizational and M&A-related professional fees (3)
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56 | 43 | ||||||
Management fees (4)
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286 | - | ||||||
Start Media's share of adjusted EBITDA
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(85 | ) | - | |||||
Adjusted EBITDA of Digital Cinema Destinations Corp.
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$ | 1,007 | $ | 358 |
Contacts:
Bud Mayo, Chairman/CEO
Digital Cinema Destinations Corp.
908/396-1362 or bmayo@digiplexdest.com
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Robert Rinderman or Jennifer Neuman
JCIR – Investor Relations/Corporate Communications
212/835-8500 or DCIN@jcir.com
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