LONGUEUIL, QUEBEC–(Marketwired – June 19, 2017) – D-BOX Technologies Inc. (TSX:DBO), a leader in immersive motion technology, announced today revenues of $10.6 million, a 23% increase over last year, and a net income of $286 thousand for the fourth quarter ended March 31, 2017.
FINANCIAL HIGHLIGHTS
- Strong sales results for the fourth quarter and growth in revenue for the fiscal year with:
- Quarterly revenue up by 23% to $10,613K, including an increase of 18% to $8,671K for the entertainment market and an increase of 57% to $1,942K for the simulation and training market; and
- Annual revenue up by 8% to $31,409K including $18,963 K of system sales and $6,813K of recurring revenue for the entertainment market and 30% increase to $5,633K in sales for the simulation and training market.
- Net income of $286K for the quarter compared to a net loss of $406K last year and net loss of $2,892K for the year compared to $187K in 2016.
- Quarter and annual adjusted EBITDA*:
- Adjusted EBITDA of $963K for the fourth quarter compared to $944K last year; and
- Adjusted EBITDA of $512K for the fiscal year compared to $3,598K last year.
| Fourth quarter and fiscal year ended March 31 (in thousands of dollars, except per share amounts) |
||||||||
| Fourth Quarter | Fiscal Year | |||||||
| 2017 | 2016 | 2017 | 2016 | |||||
| Revenues | 10,613 | 8,612 | 31,409 | 29,042 | ||||
| Net income (loss) | 286 | (406 | ) | (2,892) | (187 | ) | ||
| Adjusted EBITDA* | 963 | 944 | 512 | 3,598 | ||||
| Basic and diluted net income (loss) per share | 0.001 | (0.002 | ) | (0.017) | (0.001 | ) | ||
| Information from the consolidated balance sheet | ||||||||
| As at March 31, 2017 |
As at March 31, 2016 |
|||||||
| Cash and cash equivalents | 8,867 | 16,454 | ||||||
| * | See the reconciliation table of adjusted EBITDA to the net income (loss) below and the “Non-IFRS” measures section in the Management Discussion and Analysis dated June 19, 2017. |
OPERATIONAL HIGHLIGHTS
- Continuous development of our entertainment business activities with:
- 12% increase in screens installed or in backlog to 640 at year-end including additional screens installed with Cineplex in Canada and with Cinemark in United States and Latin America.
- Major developments in China with a first motion coding studio in Beijing, a partnership with State Production Base of China Film Studio, a distribution agreement with Link DC China, and the installation of the first entire auditorium equipped with our technology with Shanghai Bestar Cinemas Management Co. Ltd.
- Important distribution agreement with a subsidiary of Gold Finance Group to distribute and promote D-BOX high-end home entertainment motion systems in China for revenues of up to US $22M.
- Key role in a series of successful virtual reality (VR) ventures for Ubisoft, Fox Innovation Lab, VRC, HTC Viveland, mk2, Samsung and others. D-BOX also played a role in the state-of-the-art IMAX VR Experience Center in Los Angeles.
- Recently selected by the National Football League, NFL Experience Times Square, to take part in the creation by Cirque du Soleil of a thrilling state-of-the-art sports-themed immersive attraction in the heart of New York City.
- Developments in the simulation and training market:
- Introduction of a second generation of actuators (D-BOX Gen II) for the simulation and training market. This latest evolution of its motion-cueing solutions provides adopters an unprecedented range of creativity and flexibility and will contribute opening new markets for D-BOX.
- Partnership with ICAR, Canada’s largest racing motion simulator center in Mirabel, Canada’s ultimate motorsports complex.
- Additional orders from John Deere and other existing clients and agreements with the new ones.
Commenting on the quarterly results, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX, declared: “We are very pleased with the strong fourth quarter results and accomplishments realized during the last year. These achievements are confirming our strategic plan and the acceleration of our global footprint. We are confident that the business development initiatives of the past quarters will continue to create growth in the coming year and value to our shareholders.”
ADDITIONAL INFORMATION WITH RESPECT TO THE FOURTH QUARTER AND FISCAL YEAR ENDED MARCH 31, 2017
The financial information relating to the fourth quarter and fiscal year ended March 31, 2017 should be read in conjunction with the Corporation’s consolidated financial statements, the Management Discussion and Analysis, and the Annual Information Form (AIF) dated June 19, 2017. These documents are available at www.sedar.com.
OUTLOOK
D-BOX focuses on two major development areas: the entertainment market and the simulation and training market which have their respective sub-markets. In light of the business development activities in each of these two markets, D-BOX anticipates the long-term upward trend in revenue to continue. In combination with this expected growth of revenue, D-BOX intends to increase the level of its operating expenses aiming, amongst others, to accelerate China market penetration and to support the sales and marketing of technological innovations. This strategy will help solidify D-BOX’s position in existing sub-markets and will facilitate entering new ones.
With the advent of the VR world and with D-BOX expertise in immersive motion and true-to-life simulation, D-BOX has actively been developing new applications for VR and other key markets. De facto, D-BOX is well positioned to become a key player in the VR industry given that its technology can reduce motion dizziness sometimes associated with such experiences and may be the missing link that will solve one of the main challenges virtual reality needs to overcome. D-BOX is particularly excited to be part of the new trend as the size of the virtual and augmented reality markets may soon reach billions of dollars according to many industry sources.
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)**
The adjusted EBITDA provides useful and complementary information which allows, among other things, the evaluation of profitability and cash flows provided by operations. It is comprised of net income (loss) but excludes items not affecting cash and the following: foreign exchange loss (gain), financial expenses (income) and income taxes. The following table explains the reconciliation of adjusted EBITDA to the net income (loss).
| (in thousands of CDN $) | Fiscal year ended March 31 |
Fourth Quarter ended March 31 |
||||||
| 2017 | 2016 | 2017 | 2016 | |||||
| Net Income (loss) | (2,892 | ) | (187 | ) | 286 | (406 | ) | |
| Amortization of property and equipment | 2,198 | 2,333 | 343 | 528 | ||||
| Amortization of intangible assets | 602 | 536 | 156 | 137 | ||||
| Amortization of other assets | 9 | 114 | – | 10 | ||||
| Write-off of property and Equipment | 13 | 167 | 3 | 9 | ||||
| Share-based payments | 132 | 224 | 38 | 46 | ||||
| Foreign exchange loss (gain) | (26 | ) | 4 | 2 | 456 | |||
| Financial expenses (income) | 470 | 379 | 129 | 135 | ||||
| Income taxes | 6 | 28 | 6 | 29 | ||||
| Adjusted EBITDA | 512 | 3,598 | 963 | 944 | ||||
| ** | See the “Non-IFRS” measures section in the Management Discussion and Analysis dated June 19, 2017. |
D-BOX TECHNOLOGIES ANNOUNCES RETIREMENT OF CHIEF FINANCIAL OFFICER
Mr. Luc Audet has informed the Chief Executive Officer and the Board of Directors of D-BOX of his intention to retire as Chief Financial Officer of D-BOX.
A process has been initiated to identify a new Chief Financial Officer to succeed to Mr. Audet who will however remain in office until the new Chief Financial Officer has been appointed.
“During the transition period, Mr. Audet will continue to exercise the same level of dedication and commitment as he has shown in the past eight years. We expect to be able to announce his successor in the next few months”, said Mr. Claude Mc Master, Chief Executive Officer.
“On behalf of D-BOX and its Board of Directors, we want to express our gratitude to Mr. Audet for his very significant contributions throughout the years and through the various stages of the company’s development and growth. D-BOX would not be the same today if it hadn’t been for Mr. Audet’s involvement”, added Mr. Mc Master.
ABOUT D-BOX
D-BOX Technologies Inc. designs, manufactures and commercializes cutting-edge motion systems intended for the entertainment and the simulation and training 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, a seat or any other product. The resulting motion is perfectly synchronized with the on-screen action, thus creating an unparalleled realistic immersive experience.
D-BOX®, D-BOX Motion Code®, LIVE THE ACTION®, MOTION ARCHITECTS® and MOVE THE WORLD® are 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. D-BOX disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.
Mr. Luc Audet
Chief Financial Officer
450-876-1227
laudet@d-box.com
Investor Relations:
Mr. Glen Akselrod
Founder Bristol Capital Ltd.
(905) 326-1888 ext. 10
glen@bristolir.com