U.S. Markets closed
  • S&P 500

    4,538.43
    -38.67 (-0.84%)
     
  • Dow 30

    34,580.08
    -59.71 (-0.17%)
     
  • Nasdaq

    15,085.47
    -295.85 (-1.92%)
     
  • Russell 2000

    2,159.31
    -47.02 (-2.13%)
     
  • Crude Oil

    66.22
    -0.28 (-0.42%)
     
  • Gold

    1,782.10
    +21.40 (+1.22%)
     
  • Silver

    22.57
    +0.25 (+1.12%)
     
  • EUR/USD

    1.1317
    +0.0012 (+0.1019%)
     
  • 10-Yr Bond

    1.3430
    -0.1050 (-7.25%)
     
  • Vix

    30.67
    +2.72 (+9.73%)
     
  • GBP/USD

    1.3235
    -0.0067 (-0.5029%)
     
  • USD/JPY

    112.8000
    -0.4090 (-0.3613%)
     
  • BTC-USD

    49,625.27
    +2,173.70 (+4.58%)
     
  • CMC Crypto 200

    1,367.14
    -74.62 (-5.18%)
     
  • FTSE 100

    7,122.32
    -6.89 (-0.10%)
     
  • Nikkei 225

    28,029.57
    +276.20 (+1.00%)
     

Dolphin Entertainment Q3 Revenue Increases 70% Year over Year to a Record $9.4 Million – Third Straight Quarter of Record Revenue

  • Oops!
    Something went wrong.
    Please try again later.
·11 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Positive Operating Income for the Second Consecutive Quarter, Even Including Non-Cash Items of Depreciation & Amortization Expenses

  • Net Income of $141,651 Equals $0.02 Basic Earnings Per Share

  • Positive Working Capital for the Second Consecutive Quarter with Surplus of $4.5 Million

  • Record Cash Position of $12.7 Million

  • Dolphin's 2.0 Momentum Continues with NFT Infrastructure Development with FTX, NFT Creative Development Led by Anthony Francisco and Ownership Position in Midnight Theatre

MIAMI, FL / ACCESSWIRE / November 19, 2021 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the third quarter ended September 30, 2021.

"The financial momentum we experienced in the first half of the year continued through the third quarter," stated Bill O'Dowd, CEO of Dolphin Entertainment. "First, revenues of $9.4 million, up 70% year over year, represented our third consecutive record revenue quarter, driven by a terrific year over year 41% organic growth from existing subsidiaries. Secondly, positive operating income was achieved for the second consecutive quarter, even including the non-cash expenses of depreciation and amortization. And, third, our balance sheet has never been stronger, as we reported a record cash position of $12.7 million, which is an increase of 60% compared to December 31, 2020. As you would then expect, we reported a working capital surplus for the second consecutive quarter, growing to $4.5 million."

O'Dowd added, "We've been managing quite nicely to positive operating income, while we've been building out the Dolphin 2.0 business opportunities, including the infrastructure needed to launch our NFT business in earnest shortly. Furthermore, our cash on hand exceeds all debt, including long-term debt, by over $2.8 million, solidifying Dolphin as a financially-sound, profitable and growing company. That is a tremendous platform from which to execute on our first year of Dolphin 2.0 initiatives."

Recent Highlights

  • Total Q3 2021 revenue increased by 70% to $9,399,432, compared to $5,527,943 million in Q3 2020

  • Operating income for the quarter ended September 30, 2021 of $38,289 including non-cash expense from depreciation and amortization of $475,207 as compared to an operating loss of $(493,185), which included non-cash expense from depreciation and amortization of $514,097, for the same period in the prior year

  • Cash and cash equivalents of $12,652,902 million as of September 30, 2021, compared to $7,923,280 million as of December 31, 2020, not including restricted cash.

  • Net Income for the quarter ended September 30, 2021 of $141,651, compared to a net loss of $(137,630) for the quarter ended September 30, 2020

  • Dolphin Entertainment and FTX announced a partnership to create NFT marketplace programs for major sports and entertainment verticals.

  • Ground-breaking and award-winning visual designer Anthony Francisco joined Dolphin in the newly created post of Creative Director. Francisco, a former Marvel Designer, joined to develop and execute numerous NFT series involving original and existing IP. The new role is a significant leap forward for Dolphin's growing NFT studio, which is planning multiple drops in the coming months.

  • Dolphin Entertainment took an ownership position in the Midnight Theatre, a state-of-the-art contemporary variety theater and restaurant experience in the heart of Manhattan. Dolphin will manage all aspects of publicity and marketing for the venue, as well as facilitate talent and commercial relationships within the entertainment and culinary industries. An anchor of Brookfield Properties' recently opened Manhattan West development, the Midnight Theatre is in the final stages of construction, and expects to open in Q1, 2022.

  • Be Social, Dolphin's influencer marketing group, launched its Showroom concept, hosting a two-day Summer Showroom in West Hollywood. Participating brands include Bondi Sands, EyeBuyDirect, MATE The Label, and Peach and Lily, among many others, with key creators in the beauty, fashion, and lifestyle spaces in attendance.

  • BHI was engaged by Fandom, the world's largest fan platform and #1 source for in-depth information on pop culture, entertainment & gaming, to execute comprehensive publicity efforts through 2021 for increased brand awareness and overall business growth.

  • 42West's extraordinary range of work for programs and individuals helped their clients receive a total of 19 Emmy nominations. The company's work on the Amazon series "The Boys" led to nominations for Outstanding Drama Series, Outstanding Special Visual Effects In A Season Or A Movie, Outstanding Sound Mixing For A Comedy Or Drama Series (One Hour), and Outstanding Original Music And Lyrics. Also, as a result of 42West efforts, the acclaimed music documentary ‘Billie Eilish: The World's a Little Blurry' earned a total of four nominations, including Outstanding Picture Editing For A Nonfiction Program and Outstanding Music Direction.

  • The Door and Viewpoint Creative, joined forces with the Leary Firefighters' Foundation to create and distribute content commemorating 9/11 and the 20 years since the attacks. More than a tribute to the heroes who fell that day, the content recognizes "Legacy Firefighters," who continue to struggle with the fallout, and how the FDNY has improved systems and processes based on the events of 9/11.

Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Date: Monday, November 22, 2021 - 4:30 PM Eastern Time
Participant Numbers:
Toll Free: 877-545-0320
International: 973-528-0002
Participant Access Code: 313240
Webcast: https://www.webcaster4.com/Webcast/Page/2225/43568

Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 43568
Webcast replay: https://www.webcaster4.com/Webcast/Page/2225/43568

About Dolphin Entertainment, Inc.
Dolphin Entertainment (NASDAQ:DLPN) is a leading independent entertainment marketing and premium content development company. Through our subsidiaries 42West, The Door and Shore Fire Media, we provide expert strategic marketing and publicity services to many of the top brands, both individual and corporate, in the film, television, music, gaming and hospitality industries. Viewpoint Creative and Be Social complement their efforts with full-service creative branding and production capabilities as well as social media and influencer marketing services. Dolphin's legacy content production business, founded by Emmy-nominated CEO Bill O'Dowd, has produced multiple feature films and award-winning digital series. Dolphin's Non-Fungible Tokens (NFTs) Division is dedicated to designing, producing, distributing and promoting NFTs for itself and its clients within the film, television, music, gaming, culinary and technology industries. The NFTs division is comprised of executives across all six of Dolphin's wholly-owned subsidiaries blending their creative expertise in creative services, digital design, production, marketing, sales and public relations. To learn more, visit: https://www.dolphinentertainment.com

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 Inc.'s offering of common stock as well as 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, except as required by applicable law.

CONTACT:
James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)

ASSETS

As of September 30, 2021

As of December 31, 2020

Current assets:



Cash and cash equivalents

$

12,652,902

$

7,923,280

Restricted cash

541,883

714,096

Accounts receivable, net of allowance for doubtful accounts of $391,575 and $653,272, respectively.

6,227,162

5,027,101

Other current assets

529,133

231,890

Total current assets

19,951,080

13,896,367

Capitalized production costs, net

251,087

271,139

Right-of-use assets

6,614,616

7,106,279

Goodwill

20,015,800

19,627,856

Intangible assets, net of accumulated amortization of $6,932,935 and $5,747,941, respectively.

6,537,065

7,452,059

Property, equipment and leasehold improvements, net

532,485

800,071

Deposits and other assets

231,542

198,180

Total Assets

$

54,133,675

$

49,351,951

LIABILITIES

Current liabilities:

Accounts payable

$

810,167

$

1,190,184

Term loan

600,195

900,292

Notes payable, current portion

305,037

846,749

Convertible notes payable at fair value, current portion

-

580,000

Paycheck Protection Program loans, current portion

304,169

582,438

Contingent consideration

600,000

-

Loan from related party

-

1,107,873

Accrued interest - related party

1,812,315

1,783,121

Accrued compensation

2,625,000

2,625,000

Put rights

-

1,544,029

Lease liability

1,724,404

1,791,773

Contract liability

4,266,539

1,855,209

Other current liabilities

2,368,488

2,045,842

Total current liabilities

15,416,314

16,852,510

Noncurrent liabilities:

Notes payable

896,894

426,645

Convertible notes payable

4,750,000

1,445,000

Convertible notes payable at fair value

1,253,689

947,293

Paycheck Protection Program loans

-

2,517,431

Contingent consideration

1,240,000

530,000

Loan from related party

1,107,873

-

Lease liability

5,531,736

5,964,275

Warrants liability

205,000

450,000

Other noncurrent liabilities

200,000

550,000

Total noncurrent liabilities

15,185,192

12,830,644

Total Liabilities

30,601,506

29,683,154


Commitments and contingencies (Note 16)

STOCKHOLDERS' EQUITY

Common stock, $0.015 par value, 200,000,000 shares authorized, 7,768,684, issued and outstanding at September 30, 2021 and 40,000,000 shares authorized, 6,618,785, issued and outstanding at December 31, 2020

116,528

99,281

Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at September 30, 2021 and December 31, 2020

1,000

1,000

Additional paid in capital

125,167,074

117,540,557

Accumulated deficit

(101,752,433

)

(97,972,041

)

Total Stockholders' Equity

$

23,532,169

$

19,668,797

Total Liabilities and Stockholders' Equity

$

54,133,675

$

49,351,951


DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations


For the three months ended

For the nine months ended


September 30,

September 30,


2021

2020

2021

2020






Revenues:





Entertainment publicity and marketing

$

9,399,432

$

5,527,943

$

25,219,793

$

17,356,468

Content production

-

-

-

-

Total revenues

9,399,432

5,527,943

25,219,793

17,356,468


Operating expenses:

Direct costs

991,708

575,243

2,578,295

1,790,468

Payroll and benefits

5,875,755

3,604,852

16,770,091

11,384,791

Selling, general and administrative

1,519,812

953,993

4,234,309

3,247,474

Depreciation and amortization

475,207

514,097

1,436,189

1,531,561

Legal and professional

498,661

372,943

1,301,267

945,257

Total expenses

9,361,143

6,021,128

26,320,151

18,899,551

Income (loss) before other expenses

38,289

(493,185

)

(1,100,358

)

(1,543,083

)


Other income (expenses):

Gain on extinguishment of debt, net

1,733,400

51,333

2,689,010

3,311,198

Loss on disposal of fixed assets

-

-

(48,461

)

-

Loss on deconsolidation of Max Steel VIE

-

-

-

(1,484,591

)

Change in fair value of convertible notes and derivative liabilities

(223,923

)

8,730

(826,398

)

(540,231

)

Change in fair value of warrants

(55,000

)

145,559

(2,552,877

)

(265,445

)

Change in fair value of put rights

-

159,457

(71,106

)

1,677,267

Change in fair value of contingent consideration

(1,110,000

)

140,000

(1,310,000

)

(330,000

)

Acquisition costs

-

(61,196

)

(22,907

)

(61,196

)

Interest expense and debt amortization

(241,115

)

(270,815

)

(576,146

)

(1,953,790

)

Total other income (expense), net

103,362

173,068

(2,718,885

)

353,212

Income (loss) before income taxes

$

141,651

$

(320,117

)

$

(3,819,243

)

$

(1,189,871

)

Income tax benefit

-

182,487

38,851

182,487

Net income (loss)

$

141,651

$

(137,630

)

$

(3,780,392

)

$

(1,007,384

)


Earnings (loss) per share:

Basic

$

0.02

$

(0.02

)

$

(0.50

)

$

(0.19

)

Diluted

$

0.02

$

(0.04

)

$

(0.50

)

$

(0.45

)


Weighted average number of shares outstanding

Basic

7,740,085

6,676,405

7,551,974

5,223,441

Diluted

7,740,085

6,912,011

7,551,974

5,975,610


SOURCE: Dolphin Entertainment, Inc.



View source version on accesswire.com:
https://www.accesswire.com/673718/Dolphin-Entertainment-Q3-Revenue-Increases-70-Year-over-Year-to-a-Record-94-Million-Third-Straight-Quarter-of-Record-Revenue