Mr. Sebastien Mailhot reports
D-BOX TECHNOLOGIES REPORTS THIRD QUARTER RESULTS
D-Box Technologies Inc. has released its financial results for the third quarter ended Dec. 31, 2020. All amounts in this press release are in Canadian dollars.
Highlights for the third quarter ended Dec. 31, 2020
Cash and cash equivalents were $4.8-million as at Dec. 31, 2020, compared with $4.1-million as at March 31, 2020.
Total revenues decreased to $3.0-million from $5.5-million for the same period last year as a result of the adverse impact of the COVID-19 pandemic.
Net loss was $2.2-million compared with a net loss of $1.6-million during the same period last year.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased to ($1.3)-million from $300,000 for the same period last year.
Highlights for the nine-month period ended Dec. 31, 2020
Total revenues decreased to $8.1-million from $19.3-million for the same period last year as a result of the adverse impact of the COVID-19 pandemic.
Net loss increased to $3.7-million from $3.2-million for the same period last year.
Adjusted EBITDA decreased to ($2.0)-million from $600,000 for the same period last year.
On Jan. 25, 2021, D-Box entered into an amendment agreement with National Bank of Canada. In light of the COVID-19 pandemic and its effects on D-Box's businesses, the company did not meet certain financial covenant ratios as at Dec. 31, 2020. The amendment provides D-Box with the immediate suspension of certain financial covenants, and upon certain conditions will be extended to the fourth quarter of 2021 ended March 31, 2021. As at Feb. 11, 2021, an aggregate of $3.3-million was outstanding under the credit facilities.
"The strategic transformation towards high-growth opportunities related to home entertainment have accelerated during the third quarter with the signing of new commercial partners, product release and the strengthening of the management team with the arrival of Stephane Vidal, as vice-president of marketing and communications, an experienced executive who brings expertise at successfully implementing marketing digital strategies at the international level. Following the groundbreaking partnership announcement of Ubisoft in the previous quarter, D-Box's gaming ecosystem is growing with the additions of Cooler Master, a retailer of computer accessories, five Quebec video gaming studios, and more recently, AudioKinetic, a leading player in video game design tools. These partners not only bring market leadership and a well-established ecosystem, but will also enable gaming studios to natively integrate D-Box's HaptiCode into video games for most platforms (Playstation, Xbox, Nintendo, iOS, Android, Windows, Linux), increase the depth and breadth of our video game library, and most importantly, deliver for the first time in the world, a haptic experience on a gaming chair. As a reminder, the global gaming and streaming gear market is worth approximately $40-billion according to Jon Peddie Research and D-Box is thrilled to address this market opportunity," mentioned Sebastien Mailhot, president and chief executive officer of D-Box. "D-Box is also proud to receive the first official endorsement for a haptic immersive system by the Federation Internationale de l'Automobile (FIA). This recognition will bring significant value to the eyes of avid video gaming consumers who seek the best racing simulator. Finally, the launch of D-Box Lifestyle by Jaymar Experience, a home entertainment recliner that enriches your entertainment experience, is an important milestone for D-Box. The immersive haptic seat is available on amazon.com, wayfair.com and jaymarexperience.com for U.S. consumers, and soon through Jaymar's network of authorized retailers for Canadians. This groundbreaking product will allow consumers to feel immerse on more than 2,000-plus movies, TV series and music, including your favorite classics, recent releases and many more," added Mr. Mailhot.
"Considering the impact of the COVID-19 pandemic, we are satisfied with our financial performance this quarter. Home entertainment revenues have grown 94 per cent compared to the same period last year and 246 per cent sequentially. Also, sales activities have been strengthening which bodes well for a recovery in the upcoming quarters. Moreover, our cash balance at the end of Q3 stood at $4.8-million in cash compared to $4.9-million in Q2. Considering the COVID-19 vaccine global rollout, the heavy lineup of blockbusters expected to be released in the second half of 2021, the high margin royalty revenues that D-Box recognizes from theatrical box office receipts and the contribution of our newly launched home entertainment solutions, we are confident that we will see a turnaround in fiscal 2022," explained David Montpetit, chief financial officer of D-Box.
D-Box and Cooler Master, a leading manufacturer of computer and gaming peripherals, joined forces on the design and commercialization of an innovative video gaming chair, integrating D-Box whole-body haptic feedback technology. Aimed at gamers of all genres and skill levels, this immersive chair will enhance the gaming experience and will be available in the summer 2021 via Cooler Master's global retail network.
- D-Box and Jaymar, one of North America's leading furniture manufacturers, launched a recliner which integrates D-Box haptic technology, providing fans of TV series, movies and video games with immersive and haptic experiences.
- D-Box, True Course Simulations and Morane Technologies combined their expertise for the delivery of 30 flight simulation Immersive Training Devices (ITD) installed in the U.S. Air Force Academy (USAFA).
- The Federation Internationale de l'Automobile (FIA), the governing body of motor sport and mobility, announced the exclusive endorsement and recommendation of D-Box products to its members.
The financial information relating to the third quarter ended Dec. 31, 2020, should be read in conjunction with the corporation's unaudited condensed consolidated financial statements and the management's discussion and analysis dated Feb. 11, 2021. These documents are available on SEDAR.
D-Box redefines and creates realistic, haptic and immersive entertainment experiences by providing feedback to the whole body and sparking the imagination through motion. Haptic essentially allows to feel sensations that would be felt if the body was interacting directly with physical objects. D-Box has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it's movies, video games, virtual reality applications, themed entertainment or professional simulation, D-Box creates a feeling of presence that makes life resonate like never before. D-Box Technologies is headquartered in Montreal with offices in Los Angeles, United States, and Beijing, China.
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