Dolphin Entertainment Reports Second Quarter Financial Results
Aug 14, 2018, 16:26 ET
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
[email protected]
+ 1 646 755 7412
| DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
| As of |
As of |
|||||||
| 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, |
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, |
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, |
166,360 |
158,487 |
||||||
| Preferred Stock, Series C, $0.001 par value, 50,000 shares authorized, issued and outstanding |
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 |
||||||||||||
SOURCE Dolphin Entertainment, Inc.