2022-06-02 | TSX:BOD | Press release | D-Box Technologies Inc.

Delivers 92% year-over-year revenue growth and positive adjusted EBITDA

Q4 2022

  • Total revenue increased 137% year over year to $7.0 million
  • System sales revenue increased 105% year-over-year to $5.4 million
  • Revenue from use, rental and maintenance fees quadrupled to $1.6 million
  • Net profit totaled $0.2 million compared to a net loss of $2.5 million in the fourth quarter of 2021
  • Adjusted EBITDA* was $1.0 million compared to negative $1.6 million for the same period in 2021

Financial year 2022

  • Total revenue increased 92% year over year to $21.3 million
  • System sales revenue increased 54% year-over-year to $15.7 million
  • Revenue from use, rental and maintenance rights increased 530% year over year to $5.6 million
  • Net loss of $1.9 million compared to $6.2 million in 2021
  • Adjusted EBITDA* was $0.9 million, compared to negative $3.5 million in 2021
  • Cash position and undrawn credit facility totaled $6.9 million at year end

LONGUEUIL, Quebec, June 02, 2022 (GLOBE NEWSWIRE) — D-BOX Technologies inc. (“D-BOX” or the “Company”) (TSX: DBO), a global leader in haptic and immersive experiences, today announced its results for the fourth quarter and fiscal year ended March 31, 2022. All dollar amounts are expressed in Canadian dollars.

“We are pleased with the growth in our revenues and profitability generated in fiscal 2022, while continuing to strengthen our position as a leader in haptic technology,” said Sébastien Mailhot, President and CEO of D-BOX Technologies. “Despite a challenging environment marked by the COVID-19 pandemic, supply chain disruptions and rising component costs, we delivered 92% revenue growth and positive Adjusted EBITDA in 2022. The projection of our fourth quarter results over a 12-month period would bring our financial performance above pre-pandemic levels. We announced strategic partnerships with various market leaders (LADB, eNASCAR, BMW), launched new products and concepts (Cooler Master, Razer), increased our theatrical presence by over 40 screens, strengthened our sales team and positioned D-BOX’s leadership within the influential Haptics Industry Forum. fiscal 2023, we intend to invest in selected high-growth areas to support our profitable growth strategy, while delivering the best immersive haptic experience to consumers.”

“We are optimistic about our strong financial performance and the positive industry trends seen in fiscal 2022,” said David Montpetit, Chief Financial Officer of D-BOX Technologies. “The fourth quarter and fiscal year were marked by significant increases in system sales revenue, which grew 105% and 54%, respectively, and right-of-use revenue which jumped 530% in the fourth quarter and quadrupled for the year. . The box office performance, led by ‘The Batman’ and ‘Spider-Man’ films, generated record D-BOX ticket sales, while upcoming blockbusters like ‘Top Gun: Maverick’ and ‘Doctor Strange’ bodes well for the first quarter of 2023.”

“The strong performance of our commercial segment is expected to continue in the coming year, and we expect to recognize revenue from our home entertainment initiatives in the second quarter. With a cash position and unused credit facility totaling $6.9 million, D-BOX has sufficient funds to fund its ongoing operations and execute its product development strategy.”

Fiscal year and fourth QQuarter ended March 31

(in thousands of dollars, except per share data)
Fiscal year Fourth trimester
2022 2021 2022 2021
Revenue 21,313 11,080 6,972 2,936
Net profit (loss) (1,867) (6,192) 238 (2,491)
Adjusted EBITDA* 922 (3,549) 972 (1,592)
Basic and diluted net earnings (loss) per share
(0.009) (0.035) 0.001 (0.014)
Information from consolidated balance sheets
Like a

March 31, 2022
Like a

March 31, 2021
Cash and cash equivalents 3,937 9,134

* See “Non-IFRS” section on measures in the MD&A dated June 2, 2022

Q4 2022 OPERATIONAL HIGHLIGHTS

  • D-BOX, BMW and Sim-Lab have joined forces to create the new BMW Motion Platform.
  • Advanced SimRacing, a growing North American racing simulation chassis manufacturer and retailer of digital motorsports equipment, has become an official distributor of D-BOX simulator racing solutions.
  • Metropolitan Theaters installed their first D-BOX screen with 23 high-fidelity haptic reclining seats located in Metropolitan Theaters’ flagship luxury cinema MetroLux Theaters in southern Orange County, California.
  • John Deere introduces a new full-tree forestry training simulator designed and supported by long-time D-BOX partner CM-Labs.
  • In March 2022, the Company signed an amending agreement with BDC for the repayment of the outstanding principal balance of $1.2 million as of May 31, 2023 in 36 monthly installments of $33,000, until June 1, 2026.

ADDITIONAL INFORMATION CONCERNING THE FOURTH QUARTER ENDED MARCH 31, 2022

Financial information for the fourth quarter and year ended March 31, 2022 should be read in conjunction with the Company’s audited consolidated financial statements and MD&A dated June 2, 2022. These documents are available at www. .sedar.com.

RECONCILIATION OF ADJUSTED EBITDA AND NET INCOME*

Adjusted EBITDA provides useful and complementary information, which in particular makes it possible to assess profitability and cash flows generated by operations. It consists of net income (loss) excluding amortization, net finance costs from income, income taxes, write-off of property, plant and equipment and intangible assets, share-based payments, loss (gain) of foreign exchange and non-recurring expenses related to restructuring costs.

The following table reconciles adjusted EBITDA and net loss (amounts are in thousands of Canadian dollars):

Fourth trimester

ended March 31
Twelve month period

ended March 31
2022

2021 2022 2021
Net loss 238 (2,491 ) (1,867 ) (6,192 )
Depreciation of property, plant and equipment 277 267 1,124 1,530
Amortization of intangible assets 211 211 848 819
Write-offs of property and equipment 24 24
Impairment of property, plant and equipment 235 235
Impairment of intangible assets 179
Depreciation (recovery) of the finance lease receivable (26 ) (26 )
Financial expenses 99 150 396 488
Income taxes (recovery) (32 ) (34 )
Share-based payments 48 58 192 154
Exchange loss (gain) 99 12 50 (133 )
Restructuring costs (414 )
Adjusted EBITDA 972 (1,592 ) 922 (3,549 )

* See “Non-IFRS” section on measures in the MD&A dated June 2, 2022

ABOUT D-BOX

D-BOX creates and redefines realistic and immersive entertainment experiences by moving the body and stimulating the imagination through effects: movement, vibration and texture. D-BOX has collaborated with some of the best companies in the world to deliver new ways to make great stories better. Whether it’s movies, video games, music, relaxation, virtual reality applications, metaverse experience, themed entertainment or professional simulation, D-BOX creates a sense of presence that resonates life like never before. D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal with offices in Los Angeles, USA and Beijing, China. Visit D-BOX.com.

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

Certain statements included herein, including those that express management’s expectations or estimates regarding our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to place undue reliance on forward-looking statements. D-BOX disclaims any intention or obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

FOR MORE INFORMATION, PLEASE CONTACT:

David Montpetit

Financial director

D-BOX Technologies Inc.

450-999-3216

[email protected]
Steve Li

Vice President Investor Relations and

Business strategy

D-BOX Technologies Inc.

450-912-2036

[email protected]

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