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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

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: Tuesday, March 31, 2020, at 8:45 a.m. ET
Toll-free: 877-407-0782
International: 201-689-8567
Live Webcast: https://www.webcaster4.com/Webcast/Page/2225/33736

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
Reference ID: 33736

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



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https://www.accesswire.com/583204/Dolphin-Entertainment-2019-Revenue-Increases-11-to-25-Million

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