**a peek into the future of theatrical exhibition** nasdaq: dcin

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**A Peek Into The Future of Theatrical Exhibition** NASDAQ: DCIN www.digiplexdest.com

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  • Slide 1

**A Peek Into The Future of Theatrical Exhibition** NASDAQ: DCIN www.digiplexdest.com Slide 2 Forward-Looking Statements Certain statements and estimates in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements about: expected benefits from the conversion to digital cinema; and the Companys ability to successfully pursue its strategies. These forward-looking statements are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, including the risks set forth under the heading Risk Factors in our 10-K for the year ended June 30, 2012, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Any estimates or other forward-looking statements provided in this presentation speak only as of the date they were made, and, except to the extent required by law, we undertake no obligation to update or review any estimate and/or forward-looking statement because of new information, future events or other factors. 2 Slide 3 Fast-growing U.S. exhibitor (founded 2010) led by digital cinema pioneers (Clearview/Cinedigm legacy), transforming movie theaters into digital entertainment centers Current footprint - 18 theaters/178 screens in six statesadded 159 screens since April 12 IPO Goal - national circuit featuring 100 theaters/1,000 screens in 75/top 100 DMAs Targeting 300 screens by 12/31/13 Acquiring cash flow positive theaters, expanding profitability on digital platform, achieving: Incremental revenue and theater level cash flow generation Cost efficiencies/reductions Unique differentiators include: Alternative programming expertise Social media focus Virtual Print Fee (VPF) receipt (film rent offset)receiving VPFs on current 85 screens (but probably wont receive for all future screens) DigiNext JV + other content JVs (in the works) downstream/ancillary revenue opportunities Secured Start Media JV and Term Loan to assist in support of theater circuit expansion Digiplex Growth Opportunity/Differentiators 3 Slide 4 Corporate Strategy 4 Slide 5 Strategy: Opportunistically expand DCINs footprint by identifying and acquiring solid performing theaters in accretive transactions at reasonable cash flow multiples (~5-6X, including initial CapEx) Mid- to Long-term Goal: 100 theaters/1,000 screens in 75/100 top DMAs (Designated Marketing Areas) creating national circuit where consumers of entertainment can interact with every form of content owner Progress Update: Significantly grew screen count since April 2012 IPO from 3 theaters/19 screens to 18 theaters/178 screens at 2/1/2013 Generating Disciplined/Aggressive Screen Growth StateTheatersScreens3D (#)/(%)Digital AZ114 5100% CA66015100% CT22011100% NJ314 7100% OH116 5100% PA55421100% Total1817864/36%*100% DCIN Screen Growth (#)DCIN Theater Statistics Acquired Cinema Centers (5 theaters, 54 screens) Acquired Lisbon Landing Cinema 12 (1 theater, 12 screens) Selinsgrove, PA Concessions Area Camp Hill, PA Theater Exterior View Acquired UltraStar Cinemas (7 theaters, 74 screens) Acquired Solon, OH & Sparta, NJ Theaters (2 theaters, 19 screens) 5 *DCINs goal is to have ~33% of its screens 3-D enabled Slide 6 Strategy: Utilizing managements collective experience and expertise to effectively operate upon state-of-the- art digital platform Near-term goal: Achieve circuit-wide operating efficiencies and immediate benefits from transition to DCINs digital cinema network Progress Update: DCIN continues to make significant headway transforming each acquired facility into a digital entertainment center that adds incremental value to its operating base through accretive revenue, EBITDA and free cash flow generation Maximizing Digital Cinema Circuit and Financial Benefits 6 July 2012: Completed digital rollout of 54 Cinema Centers Screens September 2012: Completed acquisition Lisbon 12 Multiplex Fiscal Q113: First full quarter collecting pre-show ad revenues from National CineMedia (NCM) and Virtual Print Fees (VPFs) from major studios, which are an offset to film rent expense* December 2012: Completed acquisition of 74 UltraStar Cinemas screens January/February 2013: Commenced lease of aggregate 19 screens in Solon, OH and Sparta, NJ Fiscal Q313: Revenue rises more than ninefold to $8.8 million reflecting continued circuit and screen growth *Including Lisbon Landings 12 screens for two-day stub period as this acquisition was completed September 29, 2012 Slide 7 Strategy: Schedule wide range of alternative programming, building awareness and attendance gains through active targeted marketing and comprehensive social media customer engagement initiatives Long-term goal: Generate 20% of total box receipts from alternative content, improving attendance metrics at ~50% higher ticket pricereplacing underperforming Hollywood titles on screen Progress Update: Continuing to introduce DCINs alternative programming, targeted marketing platform, and active, low-cost social-based outreach strategies that were successfully implemented in its first 3 locations to its newly acquired facilities Alternative programming as a % of total fiscal Q313 admissions revenues averaged ~6% at 8 locations (73 screens) owned for more than one year Alternative Programming Enhanced by Social Media 7 Procure ContentSchedule ProgrammingMarket Events A diverse range of programming that appeals to wide array of audiences Ideally Mon.-Thurs., when average cinemas operate at