Market Overview

Dolphin Entertainment Reports Second Quarter Financial Results

Share:

Dolphin Entertainment Reports Second Quarter Financial Results

PR Newswire

NEW YORK and LOS ANGELES, Aug. 14, 2018 /PRNewswire/ -- Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading independent entertainment marketing and premium content production company announces its financial results for the quarter ended June 30, 2018.

Quarterly Highlights   

  • Revenue for Q2 2018 was $5.2 million, compared to $7.8 million in Q2 2017. The decrease in revenue in Q2 2018 is entirely attributable to the life cycle of a feature film that was released in October 2016 and the majority of the revenues from that film being recognized during 2016 and 2017.
  • Entertainment publicity revenue of $5.1 million, essentially flat for the three months ended June 30, 2018 as compared to the same period in the prior year
  • Operating income of $69,267 compared to an operating loss of $155,753 in the same period in the prior year.
  • Net income of $0.2 million for the three months ended June 30, 2018 compared to a net loss of $1.6 million for the same period in the prior year.
  • Stockholders' equity of $5.3 million as of June 30, 2018 compared to a stockholders' deficit of $3 million on June 30, 2017.
  • After the quarter ended, on July 5, 2018, Dolphin acquired top lifestyle and hospitality PR agency, The Door, for aggregate consideration of up to $11 million, which includes performance-based contingent consideration of up to $7 million.
  • After the quarter ended, on July 24, 2018, Dolphin closed a $6.0 million public offering. Two million shares of common stock were issued at a purchase price to the public of $3.00 per share, with no warrants attached.

Dolphin's CEO, Bill O'Dowd, commented: "We are extremely proud of how far we've come in the past year since purchasing 42West and announcing our intention of assembling a "Super Group" of previously privately-held, already profitable, best-in-class entertainment marketing companies.  Acquisitions of The Door and 42West, recognized as the third and fourth most powerful PR firms in the country, respectively, are proof that we can execute on this strategy.  In upcoming quarters, we hope to share more exciting acquisitions, as well as the launch of our content production business, which will represent us firing on all cylinders."

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: Wednesday, August 15, 2018, at 9 a.m. ET
Toll-free: 877-407-0782
International: 201-689-8567
Live Webcast: http://www.investorcalendar.com/event/36994

Conference Call Replay Information

The replay will be available beginning approximately 1 hour after the completion of the live event.
Toll-free: 877-481-4010
International: 919-882-2331
Reference ID: 36994

About Dolphin Entertainment, Inc.

Dolphin Entertainment is a leading independent entertainment marketing and premium content production company. Through our subsidiaries 42West and The Door, we provide expert strategic marketing and publicity services to many of the top brands, both individual and corporate, in the entertainment, lifestyle and hospitality industries. The Door and 42West are both recognized global leaders in PR services for their respective industries and, in December 2017, the New York Observer listed them, respectively, as the third and fourth most powerful PR firms of any kind in the United States.  Dolphin's legacy content production business, founded by Emmy-nominated CEO Bill O'Dowd, has produced multiple feature films and award-winning digital series.

Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, Dolphin Entertainment's expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by the use of words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," or "intend," the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, Dolphin Entertainment's actual results may differ materially from the results discussed in its forward-looking statements. Dolphin Entertainment's forward-looking statements contained herein speak only as of the date of this press release. Factors or events Dolphin Entertainment cannot predict, including those described in the risk factors contained in its filings with the Securities and Exchange Commission, may cause its actual results to differ from those expressed in forward-looking statements. Although Dolphin Entertainment believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved, and Dolphin Entertainment undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise.

Investor Contact:

James Carbonara 
Partner, Hayden IR 
james@haydenir.com 
+ 1 646 755 7412

 

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)




As of
June 30,
2018


As of
December 31,
2017

ASSETS







Current









Cash and cash equivalents


$

2,033,868



$

5,296,873


Accounts receivable, net of allowance for doubtful accounts of $358,859 and $366,280, 
     respectively.



2,841,505




3,700,618


Other current assets



512,329




422,118


Total current assets



5,387,702




9,419,609


Capitalized production costs



884,585




1,075,645


Intangible assets, net of accumulated amortization of $1,649,860 and $1,043,255, 
     respectively.



7,900,140




8,506,745


Goodwill



12,778,860




12,778,860


Property, equipment and leasehold improvements



1,020,851




1,110,776


Investments



220,000




220,000


Deposits



445,289




485,508


Total Assets


$

28,637,427



$

33,597,143


LIABILITIES









Current









Accounts payable


$

733,940



$

1,097,006


Other current liabilities



5,537,592




6,487,819


Line of credit



1,700,390




750,000


Put rights



2,907,913




2,446,216


Accrued compensation



2,625,000




2,500,000


Debt



2,887,886




3,987,220


Loan from related party



1,107,873




1,708,874


Deferred revenue



48,449




48,449


Convertible notes payable



550,000




800,000


Notes payable



900,000




300,000


Total current liabilities



18,999,043




20,125,584


Noncurrent









Warrant liability



923,399




1,441,831


Put rights



2,051,458




3,779,794


Convertible notes payable



75,000




75,000


Notes payable






600,000


Deferred tax



436,813




187,537


Other noncurrent liabilities



859,860




1,311,040


Total noncurrent liabilities



4,346,530




7,395,202


Total Liabilities



23,345,573




27,520,786


STOCKHOLDERS' EQUITY









Common stock, $0.015 par value, 200,000,000 shares authorized, 11,090,688 and 10,565,789, 
     respectively, issued and outstanding at June 30, 2018 and December 31, 2017.



166,360




158,487


Preferred Stock, Series C, $0.001 par value, 50,000 shares authorized, issued and outstanding 
     at June 30, 2018 and December 31, 2017.



1,000




1,000


Additional paid in capital



97,020,742




98,816,550


Accumulated deficit



(91,896,248)




(92,899,680)


Total Stockholders' Equity


$

5,291,854



$

6,076,357


Total Liabilities and Stockholders' Equity


$

28,637,427



$

33,597,143



 

 

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)




For the three months ended


For the six months ended



June 30


June 30



2018


2017


2018


2017

Revenues:













Entertainment publicity


$

5,121,487



$

5,137,556



$

10,577,220



$

5,137,556


Production and distribution



97,961




2,694,096




427,153




3,226,962


Total revenues



5,219,448




7,831,652




11,004,373




8,364,518



















Expenses:

















Direct costs



295,765




2,629,739




865,199




3,130,265


Selling, general and administrative



699,436




947,466




1,598,684




1,135,423


Depreciation and amortization



375,163




322,674




746,343




327,310


Legal and professional



272,794




621,369




681,795




997,434


Payroll



3,507,023




3,466,157




7,142,009




3,802,511


Total expenses



5,150,181




7,987,405




11,034,030




9,392,943


Income (loss) before other income (expenses)



69,267




(155,753)




(29,657)




(1,028,425)



















Other income (expenses):

















Other expense






(44,025)







(44,025)


Loss on extinguishment of debt



(53,271)




(4,167)




(53,271)




(4,167)


Acquisition costs



(34,672)




(207,564)




(34,672)




(745,272)


Change in fair value of warrant liability



350,115




(533,812)




518,432




6,289,513


Change in fair value of put rights



333,043




(100,000)




1,416,639




(100,000)


Change in fair value of contingent consideration






(116,000)







(116,000)


Interest expense



(265,992)




(396,864)




(533,419)




(849,001)


Total other income (expenses)



329,223




(1,402,432)




1,313,709




4,431,048


Income (loss) before income taxes


$

398,490



$

(1,558,185)



$

1,284,052



$

3,402,623


Income taxes



(228,016)







(280,620)





Net income (loss)


$

170,474



$

(1,558,185)



$

1,003,432



$

3,402,623



















Income (Loss) per Share:

















Basic


$

0.01



$

(0.17)



$

0.08



$

0.41


Diluted


$

(0.01)



$

(0.17)



$

(0.03)



$

(0.30)


Weighted average number of shares used in per share calculation

















Basic



12,349,014




9,336,389




12,432,872




8,293,343


Diluted



14,032,001




9,336,389




14,533,224




9,542,846


 

Cision View original content:http://www.prnewswire.com/news-releases/dolphin-entertainment-reports-second-quarter-financial-results-300697117.html

SOURCE Dolphin Entertainment, Inc.

View Comments and Join the Discussion!