D-BOX Technologies Reports First Quarter Results
08 September 2021 - 11:01PM
D-BOX Technologies Inc. (“D-BOX” or the "Corporation") (TSX: DBO) a
world leader in haptic and immersive experiences, today announced
results for the first quarter of fiscal 2022 ended June 30,
2021. All dollar amounts are expressed in Canadian currency.
First Quarter Ended June 30(in
thousands of dollars, except per share amounts) |
|
First Quarter |
2021 |
|
2020 |
|
Revenue |
3,163 |
|
2,230 |
|
Net loss |
(1,344 |
) |
(966 |
) |
Adjusted EBITDA* |
(598 |
) |
(95 |
) |
Basic and diluted net loss per share |
(0.006 |
) |
(0.005 |
) |
Information from the consolidated balance
sheets |
|
As at June 30, 2021 |
As at March 31, 2021 |
Cash and cash equivalents |
6,700 |
|
9,134 |
|
* See the “Non-IFRS” measures section in the
Management’s Discussion and Analysis dated September 8, 2021
“We are satisfied of the progressive return of
our market and our cash level which are inline with our
expectations. A good portion of our commercial theatre partners are
now reopened and revenues related to the D-BOX premium offering
were up 524% year-over-year and 99% sequentially thanks to the
return of blockbusters such as “Godzilla vs Kong” and “F9”. This
bodes well for the remainder of the year, conditional to COVID
Delta variant impacts, with the release of tent pole movies such as
James Bond: “No Time to Die”, “The Matrix 4” and “Spider-Man: No
Way Home,” stated Mr. David Montpetit, CFO of D-BOX. “Moreover,
D-BOX’s strategy to focus on established theatrical chains is
paying off with the announcement of significant rollouts with
Cinemark, and recently with our European distribution partner ECCO
and another major exhibitor chain in the Southern Hemisphere.
Subsequent to the quarter-end, D-BOX is pleased to get the
financial support from National Bank of Canada [“NBC”], improve its
balance sheet position by $1.0M enabling D-BOX’s transformation and
commercial growth initiatives.”
On September 7, 2021, the Corporation signed an
agreement with the National Bank of Canada [“NBC”] related to a
loan amounting to $1.0 million for the ongoing operations and
working capital of the Corporation. This loan bearing interest at
the fixed rate of 4% is repayable in 24 monthly principal
installments of $8 thousand from the 13th month after the payment
and the balance at maturity in 36 months. The loan is secured by
second-ranking hypothec and security interests on all assets of the
Corporation and its U.S. subsidiary and is guaranteed by the
Business Development Bank of Canada [“BDC”].
“From a strategic standpoint, D-BOX is on track
with its development plan for the home entertainment market. Our
R&D team has adapted our technology stack to enable an easy
integration with different types of seated products. As a result,
the Motion 1 gaming chair from Cooler Master, which is expected to
integrate D-BOX’s high-fidelity haptic technology, was officially
unveiled during their most recent Summer Summit event in July. This
gaming chair will provide D-BOX’s latest technological
breakthrough, a haptic mode compatible to all PC games. While we
remain focused on the delivery of a gaming chair with our partner
Cooler Master this coming fall, we are entertaining advanced
discussions with additional well-established gaming peripheral
partners for the launch of more products this fiscal year. We
believe the potential in the gaming peripheral market for D-BOX to
be massive in the upcoming years, as gamers experience the benefits
of haptics confirmed by third-party consumer review”, mentioned
Sébastien Mailhot, President and CEO of D-BOX Technologies. “The
content scalability remains a top priority for the home
entertainment segment. and we are pleased to have available in
D-BOX format recent popular streaming franchises such as Star Wars:
The Bad Batch, Loki, Jack Ryan, The Witcher, and Lupin, amongst
others. Our innovative coding tools are increasing significantly
content production speed for the home title portfolio!”
OPERATIONAL HIGHLIGHTS
- D-BOX has entered into an agreement
with Cinemark Holdings Inc, one of the world’s largest and most
influential movie theatre companies, to install D-BOX haptic
recliner seats in 8 additional locations, driving up the total
number of D-BOX Cinemark screens to 99 throughout the United
States.
- Cooler Master, a global leader in
designing and manufacturing innovative computer components and
peripherals, in collaboration with D-BOX, officially launched
Motion 1, an immersive haptic gaming chair.
- D-BOX has collaborated with Serious
Labs to develop a new VR commercial truck driving simulator. This
innovation will not only help to create an expedited route to
proficiency and safety for drivers, but contribute to a better,
cleaner environment by lowering greenhouse gas emissions.
- D-BOX has collaborated with ANGRUP
Software Technologies to develop a heavy vehicle training
simulator. The new product is developed completely domestically
using real vehicle equipment and electronics.
- D-BOX is partnering with Los
Angeles Distribution & Broadcasting Inc. (LADB), a Los
Angeles-based leader in digital media and content processing, to
accelerate its penetration into the consumer market. This long-term
agreement will strengthen D-BOX’s presence in Los Angeles and
increase the capacity and speed of haptic content output. It will
also allow us to solidify our business relationships with major
film studios and large movie exhibitors in the United States, and
to benefit from LADB’s local business network with movies studios
and more specifically with emerging streaming platforms.
- D-BOX recently finalized an
official study with the Tech3lab from HEC Montréal, evaluating the
impact of high-fidelity haptics on the player in a gaming
environment. The study concludes that D-BOX haptic experience:
- Enhances the immersion experienced
and perceived by the gamer
- Increases the level of enjoyment
and intensity of emotions
- And contributes positively to the
gaming experience
ADDITIONAL INFORMATION REGARDING THE
FIRST QUARTER ENDED JUNE 30, 2021The financial
information relating to the first quarter ended June 30, 2021
should be read in conjunction with the Corporation’s audited
consolidated financial statements and the Management’s Discussion
and Analysis dated September 8, 2021. These documents are available
at www.sedar.com.
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, share-based payments, foreign
exchange loss (gain) and non-recurring expenses related to
restructuring costs.
The following table reconciles adjusted EBITDA
to net loss (amounts are in thousands of Canadian dollars):
|
First quarterended June 30 |
|
2021 |
|
2020 |
|
Net Income (loss) |
(1,344 |
) |
(966 |
) |
Amortization of property and equipment |
297 |
|
475 |
|
Amortization of intangible assets |
224 |
|
191 |
|
Financial expenses (income) |
153 |
|
94 |
|
Income taxes (recovery) |
(1 |
) |
(1 |
) |
Share-based payments |
48 |
|
46 |
|
Foreign exchange loss |
25 |
|
66 |
|
Adjusted EBITDA |
(598 |
) |
(95 |
) |
* See the “Non-IFRS” measures section in the Management’s
Discussion and Analysis dated September 8, 2021.
ABOUT D-BOX
D-BOX creates and redefines realistic, immersive
entertainment experiences by moving the body and sparking the
imagination through effects: motion, vibration and texture. D-BOX
has collaborated with some of the best companies in the world to
deliver new ways to enhance great stories. Whether it’s movies,
video games, music, relaxation, virtual reality applications,
themed entertainment or professional simulation, D-BOX creates a
feeling of presence that makes life resonate like never before.
D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal
with offices in Los Angeles, USA and Beijing, China. Visit
D-BOX.com.
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:
David Montpetit Chief Financial OfficerD-BOX Technologies
Inc.450-442-3003, ext. 296dmontpetit@d-box.com |
Steve Li Vice President Investor Relations andCorporate
StrategyD-Box Technologies Inc.450-442-3003, ext.
403sli@d-box.com |
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