- 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
[email protected]
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.