NEW YORK, NY and LOS ANGELES, CA / ACCESSWIRE / May 15, 2019 / Dolphin Entertainment (NASDAQ: DLPN), a leading independent entertainment marketing and premium content production company, announces its financial results for the quarter ended March 31, 2019.
Q1 2019 and Recent Highlights
- Total revenue increased 9% to $6,317,089 from $5,784,925 in the prior year.
- Entertainment publicity and marketing revenue increased 14% to a record $6,238,099, compared to $5,455,733 in the prior year.
- Operating loss of $(825,161), which included direct costs of $(1,187,419) and non-cash items from depreciation and amortization of $(481,642), compared to an operating loss of $(98,924), which included direct costs of $(571,336) and non-cash items from depreciation and amortization of $(371,181), in the prior year.
- Net income was $122,608, compared to net income of $832,959 in the prior year, of which a substantial portion for both periods is attributable to a change in fair value of put rights.
- 42West and The Door both earned spots on the Observer's prestigious PR Power 50, a widely-respected ranking of the 50 top public relations firms in the nation.
- 42West represented numerous individuals and served in various capacities with 16 films that collectively earned a total of 47 Oscar nominations and won 8 Academy Awards in 2019.
- The Door launched a consumer products division and added seasoned executive Nicole Lowe, Managing Director, to lead the new vertical.
- Viewpoint Creative developed a new brand campaign for Investigation Discovery, America's #1 true crime network.
- The Door celebrated clients Patrick O'Connell, Kevin Boehm and Rob Katz, who won 2019 James Beard Foundation Awards.
Bill O'Dowd, CEO of Dolphin Entertainment, commented: "2019 is off to a great start, with our record-setting $6.2M of revenue from our core Entertainment Publicity and Marketing segment."
Mr. O'Dowd continued, "We are managing toward revenue growth in our unique 'Super Group' of best-in-class entertainment marketing companies, each of which contributed to our strong first quarter results. 42West had a very successful awards season. The Door launched a consumer products PR division which we are very excited about, and Viewpoint continued its leading work with television networks, developing a beautiful brand campaign for Investigation Discovery, America's #1 true crime network."
Mr. O'Dowd concluded, "In terms of continuing organic growth, we are focused on adding clients, cross-selling between subsidiaries and growing average revenue per client, especially with the video creation capabilities brought in through our Viewpoint acquisition. With respect to non-organic growth, we are committed to executing on current M&A opportunities to continue to build our "Super Group" platform, with the goal of housing leading companies across all earned media marketing services to the entertainment and hospitality industries, which will clearly differentiate Dolphin, thereby increasing our value among clients, and resulting in higher revenue and accelerated growth."
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: Thursday, May 16, 2019, at 9:00 a.m. ET
Live Webcast: https://www.investornetwork.com/event/presentation/49162
Conference Call Replay Information
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Reference ID: 49162
About Dolphin Entertainment, Inc.
Dolphin Entertainment is a leading independent entertainment marketing and premium content development 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 and hospitality industries. The Door and 42West are both recognized global leaders in PR services for their respective industries. Dolphin's recent acquisition of Viewpoint Creative adds full-service creative branding and production capabilities to our marketing group. 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 under the caption entitled "Risk Factors" in Dolphin Entertainment's most recent Annual Report on Form 10-K filed with the SEC and under similar headings in its subsequently filed Quarterly Reports on Forms 10-Q and other filings with the SEC, 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.
DOLPHIN ENTERTAINMENT, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2019
As of December 31, 2018
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts of $246,921 and $283,022, respectively.
Other current assets
Total current assets
Capitalized production costs
Right of use assets
Intangible assets, net of accumulated amortization of $3,162,445 and $2,714,785, respectively.
Property, equipment and leasehold improvements, net
Other current liabilities
Line of credit
Loan from related party
Convertible notes payable
Total current liabilities
Convertible notes payable
Other noncurrent liabilities
Total noncurrent liabilities
Commitments and contingencies (Note 19)
Common stock, $0.015 par value, 200,000,000 shares authorized, 14,427,100 and 14,123,157, respectively, issued and outstanding at March 31, 2019 and December 31, 2018.
Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at March 31, 2019 and December 31, 2018.
Additional paid in capital
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
DOLPHIN ENTERTAINMENT, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Entertainment publicity and marketing
Selling, general and administrative
Depreciation and amortization
Legal and professional
Loss before other income (expenses)
Other income (expenses):
Loss on extinguishment of debt
Change in fair value of warrant liability
Change in fair value of put rights
Change in fair value of contingent consideration
Total other income, net
Income before income taxes
Income (Loss) per Share:
Weighted average number of shares used in per share calculation
SOURCE: Dolphin Entertainment, Inc.
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