Dolphin Q1 Revenue Increases 8% to Record $9.9 Million
"The Blue Angels" Sells to Amazon Studios; Dolphin To Earn approximately $3.5M
LOS ANGELES, CA / ACCESSWIRE / May 15, 2023 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the first quarter ended March 31, 2023.
"2023 is off to a strong start, said Bill O'Dowd, CEO of Dolphin Entertainment. "Q1 revenue, seasonally our lowest quarter, grew 8% to $9.9 million. We're now halfway through the month of May and expect Q2 revenue to be meaningfully higher than Q1. Furthermore, we expect 2023 to hit its revenue goal of 20-25% YoY revenue growth."
"On the operating line, following our Q4 2022 acquisition of Socialyte, we now have two influencer marketing firms in our Q1 2023 results. Influencer marketing firms seasonally lose money in the first quarter, before generating a profit during the rest of the year. As such, we were pleased that our fully diluted Q1 2023 loss per share remained flat vs Q1 2022. We look forward to benefiting from both influencer firms' annual profitability as we move ahead this year. Additionally, we have more acquisition synergies to create that we expect will positively impact our profit lines in future quarters."
"After quarter end, we were pleased to announce The Blue Angels, the first project from our multi-year agreement with IMAX to co-finance the development and production of a slate of feature-length documentaries for global release, was sold to Amazon Studios, which will place the film on its streaming service after it receives a theatrical release in IMAX theaters. We expect to generate approximately $3.5 million to Dolphin from the acquisition agreement, which would result in a 75% ROI before the inclusion of any revenues to Dolphin from the ticket sales from IMAX institutional theaters - providing powerful validation for our model of also taking equity in projects we market."
Mr. O'Dowd concluded, "The great success with "The Blue Angels" gives us a nice springboard for the next projects with IMAX, which we expect to announce this summer. And, with Midnight Theatre building toward a full 7-day a week schedule, and the hiring of Ellie Doty as our Chief Marketing Officer to oversee future Dolphin Ventures (formerly Dolphin 2.0) partnerships, we feel we are building strong momentum as we ramp up our Dolphin Ventures efforts in general. Of course, it's always nice to have a home run early in the process."
Q1 2023 and Recent Highlights
Total Q1 2023 revenue increased 8% to $9.9 million, compared to $9.2 million in Q1 2022.
Operating loss for the quarter ended March 31, 2023 of $(2,566,000) includes non-cash items from depreciation and amortization of $533,096 and a loss from the change in the fair value of contingent consideration of $15,485, along with one-time and non-recurring audit fees of $300,000; this compares to an operating loss for the quarter ended March 31, 2022 of $(1,889,060), which includes non-cash items from depreciation and amortization of $407,238 and a loss from the change in the fair value of contingent consideration of $161,451, along with one-time and non-recurring professional fee expenses of approximately $300,000 primarily related to the 2021 audit.
Net loss for the quarter ended March 31, 2023, of $(2,969,320), included non-cash items from depreciation and amortization of $533,096 and a loss from the change in the fair value of contingent consideration of $15,485, along with one-time and non-recurring audit fees of $300,000; this compares to a net loss for the quarter ended March 31, 2022 of $(1,717,832), which includes non-cash items from depreciation and amortization of $407,238 and a loss from the change in the fair value of contingent consideration of $161,451, along with one-time and non-recurring professional fee expenses of approximately $300,000 primarily related to the 2021 audit.
Fully diluted loss per share remained the same at $0.23 per share based on 12,640,285 and 8,846,567, weighted average shares, respectively, for the three months ended March 31, 2023 and 2022. Basic loss per share was $0.23 and $0.20 per share based on 12,640,285 and 8,713,700, weighted average shares, respectively, for the three months ended March 31, 2023 and 2022.
Cash and cash equivalents of $7.9 million as of March 31, 2023, as compared to $6.1 million as of March 31, 2022.
Ellie Doty was announced as Chief Marketing Officer
Amazon Studios acquired worldwide rights to the IMAX Original Documentary, "The Blue Angels." Bad Robot, Glen Powell's Barnstorm Productions, Zipper Bros Films, and Dolphin Entertainment produced the project that chronicles a year in the cockpit with one of the most exclusive aviator teams in the world, filmed with awe-inspiring IMAX cameras.
Shore Fire client Rhiannon Giddens was awarded the Pulitzer Prize in Music for the opera "Omar," which she co-wrote with Michael Abels ("Get Out," "Nope").
Shore Fire Artists earned Fourteen Awards at 2023 GRAMMYs, Including Song Of The Year and Best New Artist.
Shore Fire returned to the 4th Annual Bud Light Super Bowl Music Fest as the festival's music agency. The event welcomed exhilarating fan favorites each night, including the beloved trio Paramore with special guests Bleachers, led by mega-producer Jack Antonoff (Feb 9); the iconic Dave Matthews Band and special guest DJ Pee .Wee (Anderson .Paak, in an all vinyl set) (Feb 10); and the powerful pairing of Imagine Dragons, Kane Brown and Nightly (Feb 11).
42West helped clients and worked on projects resulting in four nominations for the 76th Tony Awards, four awards at the Sundance Film Festival and five awards at the SXSW Film Festival. Additionally, 42West's work on the "Top Gun: Maverick" campaign resulted in an Academy Award for Best Sound and six Oscar nominations, which follows a 2022 worldwide box office total of $1.49 billion, the biggest of client Tom Cruise's career to date.
42West Client Tyler 'Ninja' Blevins' was appointed as GameSquare's Chief Innovation Officer
As Funko's (FNKO) agency-of-record, 42West/BHI, led the public relations efforts for the pop culture company's first co-branded retail experience with legendary multi-hyphenate Snoop Dogg.
The Door was named PR Agency of Record for Carbone Fine Food
42West and Shore Fire Media, were named to the Observer's PR Power List Honor Roll
Be Social and Socialyte were named Top Talent Managers For Creators by Business Insider
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date: May 15, 2023
Time: 4:30pm ET
Toll Free: 800-225-9448; International: 203-518-9708
Participant Access Code: DOLPHIN
Webcast: https://www.webcaster4.com/Webcast/Page/2225/48423
Replay:
Toll Free: 877-481-4010; International: 919-882-2331
Replay Passcode: 48423
Webcast Replay https://www.webcaster4.com/Webcast/Page/2225/48423
About Dolphin Entertainment, Inc.
Dolphin Entertainment is a leading independent entertainment marketing and production company. Through our subsidiaries 42West, The Door, Shore Fire Media and B/HI (a division of 42West), 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. All three PR firms have been ranked among the most recent Observer's "Power 50" PR Firms in the United States. Viewpoint Creative, Be Social and Socialyte 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, and has recently entered into a multi-year agreement with IMAX to co-produce feature documentaries. To learn more, visit: https://www.dolphinentertainment.com
About 42West With unparalleled experience, contacts, and expertise, 42West is one of the leading full-service public-relations firms in the entertainment industry. The firm's PR professionals have developed and executed marketing and publicity strategies for hundreds of movies, television shows, and digital productions as well as for countless individual actors, filmmakers, recording artists, and authors. In addition, 42West has also provided strategic communications counsel to a wide variety of high-profile individuals and corporate clients - ranging from movie and pop stars to major studios and media conglomerates.
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
ASSETS | As of March | As of December 31, 2022 | ||||||
Current | ||||||||
Cash and cash equivalents | $ | 7,858,570 | $ | 6,069,889 | ||||
Restricted cash | 1,127,960 | 1,127,960 | ||||||
Accounts receivable | ||||||||
Trade, net of allowance of $896,499 and $736,820, respectively | 6,225,319 | 6,162,472 | ||||||
Other receivable | 3,021,712 | 3,794,085 | ||||||
Notes receivable | 4,527,995 | 4,426,700 | ||||||
Other current assets | 801,414 | 523,812 | ||||||
Total current assets | 23,562,970 | 22,104,918 | ||||||
Capitalized production costs, net | 1,603,412 | 1,598,412 | ||||||
Employee receivable | 652,085 | 604,085 | ||||||
Right-of-use asset | 6,845,888 | 7,341,045 | ||||||
Goodwill | 29,314,083 | 29,314,083 | ||||||
Intangible assets, net | 9,378,496 | 9,884,336 | ||||||
Property, equipment and leasehold improvements, net | 265,950 | 293,206 | ||||||
Other long term assets | 2,365,914 | 2,477,839 | ||||||
Total Assets | $ | 73,988,798 | $ | 73,617,924 | ||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable | $ | 3,662,046 | $ | 4,798,221 | ||||
Term loan, current portion | 409,232 | 408,905 | ||||||
Notes payable, current portion | 3,840,321 | 3,868,960 | ||||||
Contingent consideration | 500,000 | 500,000 | ||||||
Accrued interest - related party | 1,636,766 | 1,744,723 | ||||||
Accrued compensation - related party | 2,625,000 | 2,625,000 | ||||||
Lease liability, current portion | 2,024,130 | 2,073,547 | ||||||
Deferred revenue | 2,093,280 | 1,641,459 | ||||||
Other current liabilities | 6,985,305 | 7,626,836 | ||||||
Total current liabilities | 23,776,080 | 25,287,651 | ||||||
Noncurrent | ||||||||
Term loan, noncurrent portion | 2,356,052 | 2,458,687 | ||||||
Notes payable, noncurrent portion | 2,715,000 | 500,000 | ||||||
Convertible notes payable | 5,850,000 | 5,050,000 | ||||||
Convertible notes payable at fair value | 354,000 | 343,556 | ||||||
Loan from related party | 1,107,873 | 1,107,873 | ||||||
Contingent consideration | 254,306 | 238,821 | ||||||
Lease liability | 5,535,423 | 6,012,049 | ||||||
Deferred tax liability | 280,286 | 253,188 | ||||||
Warrant liability | 15,000 | 15,000 | ||||||
Other noncurrent liabilities | 18,915 | 18,915 | ||||||
Total Liabilities | 42,262,935 | 41,285,740 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at March 31, 2023 and December 31, 2022. | 1,000 | 1,000 | ||||||
Common stock, $0.015 par value, 200,000,000 shares authorized, 12,627,336 and 12,340,664 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively. | 189,410 | 185,110 | ||||||
Additional paid in capital | 143,719,252 | 143,119,461 | ||||||
Accumulated deficit | (112,183,799 | ) | (109,214,479 | ) | ||||
Total Stockholders' Equity | $ | 31,725,863 | $ | 34,091,092 | ||||
Total Liabilities and Stockholders' Equity | $ | 73,988,798 | $ | 75,376,832 | ||||
DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three months ended March 31, | ||||||||
2023 | 2022 | |||||||
Revenues | $ | 9,891,421 | $ | 9,177,125 | ||||
Expenses: | ||||||||
Direct costs | 218,896 | 1,110,658 | ||||||
Payroll and benefits | 9,054,730 | 6,960,283 | ||||||
Selling, general and administrative | 1,871,937 | 1,488,338 | ||||||
Depreciation and amortization | 533,096 | 407,238 | ||||||
Change in fair value of contingent consideration | 15,485 | 161,451 | ||||||
Legal and professional | 763,277 | 938,217 | ||||||
Total expenses | 12,457,421 | 11,066,185 | ||||||
Loss from operations | (2,566,000 | ) | (1,889,060 | ) | ||||
Other income (expenses): | ||||||||
Change in fair value of convertible notes | (10,444 | ) | 287,858 | |||||
Change in fair value of warrants | - | 60,000 | ||||||
Interest income | 102,017 | 44,767 | ||||||
Interest expense | (355,870 | ) | (194,173 | ) | ||||
Total other income (expenses), net | (264,297 | ) | 198,452 | |||||
Loss before income taxes and equity in losses of unconsolidated affiliates | (2,830,297 | ) | (1,690,608 | ) | ||||
Income tax expense | (27,098 | ) | (7,224 | ) | ||||
Net loss before equity in losses of unconsolidated affilates | (2,857,395 | ) | (1,697,832 | ) | ||||
Equty in losses of unconsolidated affiliates | (111,925 | ) | (20,000 | ) | ||||
Net loss | $ | (2,969,320 | ) | $ | (1,717,832 | ) | ||
Loss per share: | ||||||||
Basic | $ | (0.23 | ) | $ | (0.20 | ) | ||
Diluted | $ | (0.23 | ) | $ | (0.23 | ) | ||
Weighted average number of shares used in per share calculation | ||||||||
Basic | 12,640,285 | 8,713,700 | ||||||
Diluted | 12,640,285 | 8,846,567 | ||||||
SOURCE: Dolphin Entertainment
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