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Dolphin Entertainment Q1 2018 Revenue Increases to $5.7 Million, compared to $0.5 million in Q1 2017
  By PR Newswire

NEW YORK and LOS ANGELES, May 15, 2018 /PRNewswire/ -- Dolphin Entertainment (NASDAQ: DLPN), a publicly-traded independent producer of premium feature films and digital content, and parent company of 42West, one of the largest public relations and marketing services firms in the entertainment industry, announces its financial results for the quarter ending March 31, 2018.

Quarterly Highlights

  • Revenue of $5.7 million, up from $0.5 million as compared to the same period in the prior year.
  • 42West Revenue of $5.4 million, up from $4.6 million as compared to the same period in the prior year.
  • 88.88% of 42West Revenue was from repeat clients (i.e. 42West clients in 2017).
  • Operating loss of $98,924 compared to an operating loss of $871,692 in the same period in the prior year.
  • Net income of $0.8 million, compared to net income of $4.9 million in the same period in the prior year. The March 31, 2017 net income included $6.8 million of changes in fair value of derivative liabilities as compared to $1.3 million included in the March 31, 2018 net income.
  • 42West signed many new clients, including the Emmy-nominated star of "Empire," Taraji P. Henson, multi-platinum pop phenomenon Camila Cabello, and comedian and podcaster Marc Maron, along with increased business from existing clients, including Universal Films and one of the largest Internet video streaming services in the world.

Dolphin's CEO, Bill O'Dowd, commented, "Our first quarter has us off to a great start in 2018, with our March 2017 acquisition of 42West really performing for us. Revenue grew substantially, to $5.7 million, compared to half a million in the prior year, with 42West revenue growing to $5.4 million, a 16.34% increase from Q1 2017, which we feel points to, and validates, 42West's market-leading position in the entertainment industry.  To this end, it is worth noting that almost 90% of Q1 42West revenue came from repeat clients, providing a strong base of predictable billings every month."



Mr. O'Dowd continued, "We're also excited about our new clients that we signed in the first quarter, including Taraji P. Henson, Camila Cabello and Marc Maron, among several others. The organic growth of 42West is something we hope to highlight for many quarters and years to come.  Also, as we have noted before, we have a solid pipeline for acquisitions of companies and personnel to complement 42West in public relations and marketing for celebrities and entertainment content. We continue to believe we can close the first of these acquisitions in 2018.  Finally, with respect to our legacy content production business, we remain committed to moving at least one film into production this year, contributing additional revenues from our production division and providing upside optionality in 2019. Between 42West's organic growth, our acquisition pipeline and our feature film production slate, we remain very excited about our business and believe we are well-positioned for meaningful growth in both 2018 and 2019."

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: Wednesday, May 16, 2018, at 9 a.m. ET
Toll-free: 877-407-0782
International: 201-689-8567
Live Webcast: http://www.investorcalendar.com/event/29627

Conference Call Replay Information

The replay will be available beginning approximately 1 hour after the completion of the live event.
Toll-free: 877.481.4010
International: 919.882.2331
Reference ID: 29627

About Dolphin Entertainment, Inc.

Dolphin Entertainment is a leading independent entertainment marketing and premium content production company. Through our recent acquisition of 42West, we provide expert strategic marketing and publicity services to all of the major film studios, and many of the leading independent distributors and streaming content providers, as well as for hundreds of A-list celebrity talent, including actors, directors, producers and recording artists. 42West is a recognized global leader in PR services for the entertainment industry and, in December 2017, the New York Observer listed 42West as one of the top four most powerful PR firms of any kind in the United States. Our content production business is a long established independent producer, committed to distributing best-in-class film and digital entertainment primarily aimed at family and young adult markets.  The strategic acquisition of 42West brings together industry-leading marketing services with our legacy content production business, creating significant opportunities to serve our respective constituents more strategically and to grow and diversify our revenue streams.

Investor Contact:

James Carbonara 
Partner, Hayden IR 
[email protected] 
+ 1 646 755 7412

 

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)





ASSETS

As of March 31, 2018


As of December 31, 2017

Current




Cash and cash equivalents

$                4,538,122


$               5,296,873

Accounts receivable, net of allowance for doubtful accounts of $392,530 and  $366,280,
respectively. 

3,087,579


3,700,618

Other current assets

525,155


422,118

Total current assets

8,150,856


9,419,609

Capitalized production costs

930,947


1,075,645

Intangible assets, net of accumulated amortization of $1,346,558 and $1,043,255, respectively.

8,203,442


8,506,745

Goodwill

12,778,860


12,778,860

Property, equipment and leasehold improvements

1,063,402


1,110,776

Investments

220,000


220,000

Deposits

445,289


485,508

Total Assets

$              31,792,796


$             33,597,143

LIABILITIES




Current




Accounts payable

$                   928,265


$               1,097,006

Other current liabilities

7,466,944


6,487,819

Line of credit

1,700,390


750,000

Put rights

2,675,568


2,446,216

Accrued compensation

2,562,500


2,500,000

Debt

2,948,492


3,987,220

Loan from related party

1,577,873


1,708,874

Deferred revenue

48,449


48,449

Convertible notes payable

800,000


800,000

Notes payable

500,000


300,000

Total current liabilities

21,208,481


20,125,584

Noncurrent




Warrant liability

1,273,514


1,441,831

Put rights

2,466,846


3,779,794

Convertible notes payable

75,000


75,000

Notes payable

400,000


600,000

Deferred tax

187,537


187,537

Other noncurrent liabilities

936,732


1,311,040

Total noncurrent liabilities

5,339,629


7,395,202

Total Liabilities

26,548,110


27,520,786

STOCKHOLDERS' EQUITY








Common stock, $0.015 par value, 200,000,000 shares authorized, 11,229,144 and 10,565,789,
respectively, issued and outstanding at March 31, 2018 and December 31, 2017.

168,437


158,487

Preferred Stock, Series C, $0.001 par value, 50,000 shares authorized, issued and outstanding at
March 31, 2018 and December 31, 2017.

1,000


1,000

Additional paid in capital

97,141,970


98,816,550

Accumulated deficit

(92,066,721)


(92,899,680)

Total Stockholders' Equity

$                5,244,686


$               6,076,357

Total Liabilities and Stockholders' Equity

$              31,792,796


$             33,597,143

 

 

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)


For the three months ended



March 31, 



2018

2017






Revenues:




Entertainment publicity

$            5,455,733

$                      -


Production and distribution

329,192

532,866


Total revenues

5,784,925

532,866






Expenses:




Direct costs

571,336

500,526


Selling, general and administrative

1,032,407

187,774


Depreciation and amortization

371,181

4,635


Legal and professional

459,580

375,269


Payroll 

3,449,345

336,354


Total expenses

5,883,849

1,404,558


Loss before other expenses

(98,924)

(871,692)






Other Income (Expenses):




Acquisition costs

-

(537,708)


Change in fair value of warrant liability

168,317

6,823,325


Change in fair value of put rights 

1,083,596

-


Interest expense

(267,426)

(452,137)


Total other income (expense)

984,487

5,833,480


Income before income taxes

$               885,563

$       4,961,788


Income taxes

(52,604)

-


Net income

$               832,959

$       4,961,788






Income per Share:




Basic 

$                     0.07

$                0.69


Diluted

$                     0.07

$                0.10


Weighted average number of shares used in per share calculation




Basic 

12,517,660

7,238,707


Diluted

12,786,065

8,652,809


 

 

Cision View original content:http://www.prnewswire.com/news-releases/dolphin-entertainment-q1-2018-revenue-increases-to-5-7-million-compared-to-0-5-million-in-q1-2017--300649057.html

SOURCE Dolphin Entertainment, Inc.

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