Dolphin Entertainment 2019 Revenue Increases 11% to $25 Million

NEW YORK, NY and LOS ANGELES, CA / ACCESSWIRE / March 30, 2020 / Dolphin Entertainment, Inc. (NASDAQ:DLPN), a leading entertainment marketing and premium content production company, announces its financial results for the period ended December 31, 2019.

Bill O'Dowd, CEO of Dolphin Entertainment, commented: "I'm happy to report that results exceeded consensus expectations for both revenues and earnings per share. All members of our PR and marketing "Super Group" had a strong 4th quarter, pushing our annual revenues just past $25,000,000, which was terrific. This represents an 11% increase year-over-year.

Furthermore, our net loss in the 4th quarter was just $71,428, which was less than half a cent per share, and this number includes Depreciation and Amortization costs of $500,792, or a little over 3 cents per share. This result also exceeds consensus expectations, which we attribute to the cross-selling of services between members of our entertainment marketing super group.

Also, we received tremendous recognition in December with the publishing of this year's Power 50 list of the top PR firms by the New York Observer. All 3 of our PR firms made the list, with 42West at #4, the highest-ranking of any entertainment PR firm. Putting that in perspective, it is estimated that there are over 12,000 PR firms in this country. Yet, all 3 of ours made the Top 50 list. Secondly, we believe we are the only company to own more than 1 PR firm on the list. This is our differentiating factor. We have what we call an Entertainment Marketing Super Group, led by our 3 PR firms — 42West for movies and television; The Door for celebrity chefs, hospitality and consumer products; and Shore Fire Media for music. The combination of these best-in-class companies represents a platform for future growth that is the heart of the investment thesis into Dolphin."

Highlights

Total Q4 revenue increased 11% year-over-year to $6,450,931 and full year revenue increased 11% to $25,001,867 as compared to same period in the prior year.
Entertainment Publicity and Marketing revenue increased 14% year over year to $24,915,261 for the full year ended December 31, 2019.
Operating loss for the three months ended December 31, 2019 of $643,879, which included non-cash items from depreciation and amortization of $500,792, as compared to operating loss of $3,580,080 including non-cash items for depreciation and amortization of $633,382 and goodwill impairment of $1,857,000 for the same period in the prior year.
Net loss for the three months ended December 31, 2019 of $71,428, compared to net loss of $3,578,467 for the same period in the prior year.
On December 3, 2019, we acquired Shore Fire Media, Ltd, a leading PR firm specializing in music.
42West, The Door, and Shore Fire Media, earned spots on The Observer's prestigious PR Power 50, a widely-respected ranking of the 50 most influential public relations firms in the nation.
Shore Fire Media's clients won a collective 11 GRAMMY Awards, including seven in various Best Album categories.
42West was involved in various capacities with 13 films that earned a total of 49 Academy Award nominations and won 9 Oscars.
Rachel Aberly, Executive Vice President of 42West, won the inaugural "Publicist of the Year" award at the 2020 ICG (International Cinematographers Guild) Publicists Awards
Dolphin Entertainment acquired feature comedy script SISTERS BEFORE MISTERS, and attached Lea Thompson to direct.

Conference Call Information

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Date, Time: Tuesday, March 31, 2020, at 8:45 a.m. ET
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Live Webcast: https://www.webcaster4.com/Webcast/Page/2225/33736

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About Dolphin Entertainment, Inc.

Dolphin Entertainment is a leading independent entertainment marketing and production 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 and hospitality industries. In December 2019, all three PR firms were ranked among the Observer's "Power 50" PR Firms in the United States, an unprecedented achievement. Dolphin's 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.

Contact:

James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com

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 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.

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)

ASSETS

 
As of December 31, 2019
 
 
As of December 31, 2018
 

Current

Cash and cash equivalents

 
$
2,196,249
 
 
$
5,542,272
 

Restricted cash

 
 
714,089
 
 
 
732,368
 

Accounts receivable, net

 
 
3,581,155
 
 
 
3,173,107
 

Other current assets

 
 
372,872
 
 
 
620,970
 

Total current assets

 
 
6,864,365
 
 
 
10,068,717
 

Capitalized production costs

 
 
203,036
 
 
 
724,585
 

Right of use assets

 
 
7,435,903
 
 
 
–
 

Intangible assets, net of accumulated amortization of $4,299,794 and $2,714,785, respectively.

 
 
8,361,539
 
 
 
9,395,215
 

Goodwill

 
 
17,947,989
 
 
 
15,922,601
 

Property, equipment and leasehold improvements, net

 
 
1,036,849
 
 
 
1,182,520
 

Investments

 
 
220,000
 
 
 
220,000
 

Deposits

 
 
502,046
 
 
 
475,956
 

Total Assets

 
$
42,571,726
 
 
$
37,989,594
 

LIABILITIES

Current

Accounts payable

 
$
832,089
 
 
$
944,232
 

Other current liabilities

 
 
5,373,808
 
 
 
7,238,507
 

Line of credit

 
 
1,700,390
 
 
 
1,700,390
 

Put rights

 
 
2,879,403
 
 
 
4,281,595
 

Accrued compensation

 
 
2,625,000
 
 
 
2,625,000
 

Debt

 
 
3,311,198
 
 
 
2,411,828
 

Loan from related party

 
 
1,107,873
 
 
 
1,107,873
 

Lease liability

 
 
1,610,022
 
 
 
–
 

Contract liability

 
 
309,880
 
 
 
522,620
 

Convertible notes payable

 
 
2,452,960
 
 
 
625,000
 

Note payable

 
 
288,237
 
 
 
479,874
 

Total current liabilities

 
 
22,490,861
 
 
 
21,936,919
 

Noncurrent

Put rights

 
 
124,144
 
 
 
1,702,472
 

Convertible notes payable

 
 
1,907,575
 
 
 
1,376,924
 

Notes payable

 
 
1,074,122
 
 
 
612,359
 

Contingent consideration

 
 
330,000
 
 
 
550,000
 

Lease liability

 
 
6,386,209
 
 
 
–
 

Other noncurrent liabilities

 
 
570,000
 
 
 
1,034,393
 

Total noncurrent liabilities

 
 
10,392,050
 
 
 
5,276,148
 

Total Liabilities

 
 
32,882,911
 
 
 
27,213,067
 

Commitments and contingencies (Note 21)

STOCKHOLDERS' EQUITY

Common stock, $0.015 par value, 200,000,000 shares authorized, 17,892,900 and 14,123,157, respectively, issued and outstanding at December 31, 2019 and 2018.

 
 
268,402
 
 
 
211,849
 

Preferred Stock, Series C, $0.001 par value, 50,000 authorized, issued and outstanding at December 31, 2019 and 2018.

 
 
1,000
 
 
 
1,000
 

Additional paid in capital

 
 
105,443,656
 
 
 
105,092,852
 

Accumulated deficit

 
 
(96,024,243
)
 
 
(94,529,174
)

Total Stockholders' Equity

 
$
9,688,815
 
 
$
10,776,527
 

Total Liabilities and Stockholders' Equity

 
$
42,571,726
 
 
$
37,989,594
 

DOLPHIN ENTERTAINMENT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the years ended December 31, 2019 and 2018

 
2019
 
 
2018
 

Revenues:

Entertainment publicity and marketing

 
$
24,915,261
 
 
$
21,916,727
 

Content production

 
 
86,606
 
 
 
632,612
 

Total revenues

 
 
25,001,867
 
 
 
22,551,339
 

Expenses:

Direct costs

 
 
5,043,903
 
 
 
2,176,968
 

Selling, general and administrative

 
 
3,799,765
 
 
 
4,486,023
 

Depreciation and amortization

 
 
1,946,960
 
 
 
1,978,804
 

Legal and professional

 
 
1,560,483
 
 
 
2,119,107
 

Payroll

 
 
16,735,911
 
 
 
14,082,014
 

Goodwill impairment

 
 
–
 
 
 
1,857,000
 

Total expenses

 
 
29,087,021
 
 
 
26,699,916
 

Loss before other expenses

 
 
(4,085,155
)
 
 
(4,148,577
)

Other Income (Expenses):

Gain (loss) on extunguishment of debt

 
 
711,718
 
 
 
(53,271
)

Acquisition costs

 
 
(106,015
)
 
 
(438,552
)

Change in fair value of put rights

 
 
2,880,520
 
 
 
616,943
 

Change in fair value of contigent consideration

 
 
193,557
 
 
 
1,070,000
 

Interest expense

 
 
(1,206,202
)
 
 
(1,050,478
)

Total other income, net

 
 
2,473,579
 
 
 
144,642
 

Loss before income taxes

 
$
(1,611,576
)
 
$
(4,003,935
)

Income tax benefit

 
 
418,199
 
 
 
1,090,614
 

Net loss

 
$
(1,193,377
)
 
$
(2,913,321
)

Loss per share – Basic

 
$
(0.07
)
 
$
(0.22
)

Loss per share – Diluted

 
$
(0.20
)
 
$
(0.23
)

Weighted average number of shares used in per share calculation

Basic

 
 
16,522,924
 
 
 
13,773,395
 

Diluted

 
 
21,425,506
 
 
 
16,159,486
 

SOURCE: Dolphin Entertainment

ReleaseID: 583204