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D-BOX Technologies Announces 17% Revenue Growth for its First Quarter of Fiscal 2019

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LONGUEUIL, Quebec, Aug. 14, 2018 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. (TSX: DBO), a world leader in immersive entertainment experiences, announced first-quarter revenues of $9.5 million, up 17% from the same period last year, and growth in adjusted EBITDA of more than 200%, totalling $1.2 million for the three-month period ended June 30, 2018.

FINANCIAL HIGHLIGHTS

Highlights for the first quarter ended June 30, 2018

Compared with the first quarter ended June 30, 2017:

  • Revenues totalled $9.5 million, up 17% from $8.1 million.
  • Recurring revenues grew 21% to $2.6 million from $2.2 million.
  • Quarterly adjusted EBITDA reached $1.2 million compared with $0.4 million.
  • Adjusted EBITDA margin rose to 12% from 5%.
  • Net loss totalled ($229K), compared with ($984K).
First Quarter Ended June 30
(in thousands of dollars, except per share amounts)
  First Quarter
2018   2017  
Revenues 9,512   8,141  
Net loss (229 ) (984 )
Adjusted EBITDA* 1,157   377  
Basic and diluted net loss per share (0.001 ) (0.006 )
Information from the Consolidated Balance Sheet
  As at
June 30, 2018
As at
March 31, 2018
Cash and cash equivalents 7,409   10,141  

* See the "Non-IFRS" measures section in the Management's Discussion and Analysis dated August 14, 2018.

OPERATIONAL HIGHLIGHTS

  • Recurring revenues rose to 27% of total revenues for the first quarter ended June 30, 2018 compared with 26% for 2017.
  • D-BOX installed its 100th screen in Canada.
  • D-BOX announced the addition of D-BOX motion seats to 18 new screens throughout Germany with Kinopolis, Germany's largest independent cinema operator.
  • D-BOX signed a new contract with Trondheim Kino, Norway's largest cultural and entertainment company. Norway becomes the 40th country to offer D-BOX's innovative technology.

Claude Mc Master, President and Chief Executive Officer of D‑BOX, announced the company's first quarter results: "With revenues up 17% to $9.5 million and a $1.2 million quarterly adjusted EBITDA, this has been a good quarter for D-BOX, which reflects our hard work and the corporation's long-term vision.''

ADDITIONAL INFORMATION REGARDING THE FIRST QUARTER ENDED JUNE 30, 2018

The financial information relating to the first quarter ended June 30, 2018 should be read in conjunction with the Corporation's unaudited interim condensed consolidated financial statements and the Management's Discussion and Analysis dated August 14, 2018. These documents are available at www.sedar.com.

OUTLOOK

D-BOX operates in two major areas: the entertainment market and the simulation and training market which have their respective sub-markets.  Business development activities aim to increase motion system sales and grow its recurring revenue.  This strategy will help solidify D-BOX's position in existing sub-markets and facilitate entering new segments.

D-BOX's expertise in immersive motion and true-to-life simulation positions the Corporation to be an active participant in the growing virtual reality (VR) market.  The Corporation is actively developing new applications for VR and other related markets.  D‑BOX proprietary technology may also enhance the expansion of VR by reducing the motion dizziness sometimes associated with VR experiences.  D-BOX is particularly focused on this new trend as the size of the virtual and augmented reality markets grow, potentially to billions of dollars in the near future, according to many industry sources.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)*

Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flows provided by operations. It consists of net income (loss) excluding amortization, financial expenses net of income, income taxes, write-off of property and equipment and intangible assets, shared-based payments, foreign exchange loss (gain) and non-recurring expenses related to restructuring costs.

  First Quarter
Ended June 30
2018   2017  
Net loss (229 ) (984 )
Amortization of property and equipment 572   594  
Amortization of intangible assets 201   161  
Amortization of other assets 1   1  
Financial expenses 134   136  
Income taxes 28   1  
Share-based payments 55   56  
Foreign exchange loss 395   155  
Restructuring costs   257  
Adjusted EBITDA 1,157   377  

* See the "Non-IFRS" measures section in the Management's Discussion and Analysis dated August 14, 2018.

ABOUT D-BOX

D-BOX redefines and creates hyper-realistic, immersive entertainment experiences by moving the body and sparking the imagination through motion. This expertise is one of the reasons why D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it's for movies, video games, virtual reality applications, themed entertainment or professional simulation, D-BOX mission is to move the world.

D-BOX Technologies Inc. is a publicly traded Canadian company listed on the Toronto Stock Exchange (TSX: DBO). The head office is located in Montreal and offices are based in Los Angeles, USA and Beijing, China.

D-BOX®, D-BOX Motion Code®, LIVE THE ACTION®, MOTION ARCHITECTS®, MOVE THE WORLD® and FEEL IT ALL are trademarks of D-BOX Technologies Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

DISCLAIMER REGARDING 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 place undue reliance on forward-looking statements. D-BOX disclaims any intent or obligation to publicly update these forward‑looking statements, whether as a result of new information, future events or otherwise.

FOR FURTHER INFORMATION, PLEASE CONTACT:
  Investor Relations:
Jean-François Lacroix Glen Akselrod
Chief Financial Officer Founder Bristol Capital Ltd.
D-BOX Technologies Inc. 905-326-1888, ext. 10
450-876-1227 glen@bristolir.com 
jflacroix@d-box.com   

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