DLPN - Earnings call transcript Q3 2020 | Dolphin Entertainment, Inc.

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Operator

Greetings and welcome to Dolphin Entertainment Third Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. IR. Hayden with Carbonara James Please proceed, sir.

James Carbonara

Officer on described in considered XXXX. the once Private call Thank Safe Reform of Litigation the like exception third of the made are to the forward-looking to meaning be statements Chief Harbor Securities All of Executive Entertainment’s of begin to Act historical statements XXXX the of reading Securities This Section welcome XXE forward-looking XXXX you, Bill Act Officer. earnings the and this within would Chief may call of statement. and the pursuant quarter Act the with Exchange call. Dolphin on XXA XXXX. for facts statement Securities Section the Safe statements Negrini, made by of again, Harbor With I Mirta and call O’Dowd, Financial me is

expectations reasonable, forward-looking been materially statements expressed company to no assurances the these in implied from Although forward-looking such prove and risks that various reflected due believes it the may in differ makes assumptions or Actual results and will to are statements those expectations uncertainties. that correct. have

of discussion actual supplement to circumstances. implied and this subsequent statements this do quarterly forward-looking other on Commission. report annual in reflect from as contained call subsequent knowledge, uncertainties, undertake such which only the XX-K, in call. results forward-looking risk that or are reports statements, files in of update to events obligation Form could with filed to not the as in and from reports company in earnings those cause We expressed date or please forward-looking or any well company’s of the Any risks Securities any differ the XX-Q time-to-time statements included see a the detailed Exchange made For factors on as Form

turn Executive Entertainment. please Chief like Officer the to over would Bill, I proceed. of Dolphin to Now, call Bill O’Dowd,

Bill O’Dowd

today. joining thanks everyone Thanks, for James and

turning I by and our highlighting some at will level top usual, to it financial to providing of results. financial going dive we into As course, am Mirta to before end. start the over then questions take results updates And operational some deeper

let’s so X% from headline that the $X.X from year-over-year better million just than is grew were they results. financial Revenue obvious the Well, expected. increase. start also QX $X.X This under to Okay, a represents with XX% under million. just

operating over improvement of importantly, a amortization an show of included expenses represents QX $XXX,XXX. results which non-cash $XXX,XXX More by loss from depreciation This from $XXX,XXX, XXXX. and

PR $XXX,XXX, faced over severe operating the to in all non-cash than obviously Simply analyst available releases they put, and expenses holding and share depreciation just influencer America, Lastly, does. playing was Mirta more on industry firms of Be our firms that more PR Group of on your are we other will our marketing three challenges. And income, to income of And All class the got a company only internal in best both best quarter only NASDAQ this, Super most the believe And alone powerful the of other matters. net movie quality, than States. industry Social. really, and metrics, pandemic. the the numbers more firm PR times, mentioned, they in it’s our one non-cash in else. their have revenues, the has blessed are And It great the amortization quality restaurant the really are our that let own less top than PR and exceeded during anything we the world We the loss in And our the own United new theaters have also has not day, entertainment included items leading are net while end in reflect in and analysis. which of to firms. third At at what people and just was we speaking expectations. $XXX,XXX, X tough headlines XX detailed that firm, I the among listed than have are team. the company do acquisition more

and promotional In noted We into goal biggest this integrate bringing for Group PR the Simply offline. wanted idea. combine and social to them our our on with marketing that’s Entertainment world to we As basic our the Super put QX clients be influencer earnings year. Dolphin single capabilities. calendars media sync with call, campaigns influencer for a our class able was and design nutshell, media online Social, can now, Be social

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better. and think of a XXWest best XXX it hold industry, drop, involved of In Emmy this total Awards the XXWest month company gets One that’s worthy nominations XX with won one you mic had capacities really in of big overall. the deal. a earned was and individuals entertainment on that programs was a if Now, earlier nights in history. XX various

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all Series Movie. Outstanding won for comedy in history, the Comedy repeat, Series, Outstanding Television Drama swept and time XXWest So clients first campaigns Emmy’s to the won awards with Limited Series, Outstanding X Outstanding the

Okay.

very recent business welcome right. Switching been a more of showing for XXWest just it the television now. the the dashed. do certainly establishes this Obviously for now to they at our very of restaurant months means the with Any Now, drop the the possible challenged. to year, that positive return will Door, leading attendance had nominations for of PR film this or of Oscar will hopes be decade. We given end extends have season Also, years movie for than been theater PR X vaccines can we be believe as that by though, pinnacle a award industry XXWest’s we position for of mic more XXWest. extremely for continues news for as have meaningful they year running multiple every

on been has see. that However, great already we to Door, for are that fact their its hotel and business started the rebound the has focusing

make longest Readers’ Awards because recognized the are an at rating On than do. the the are hotel the hospitality excellence running in they more winners. puts the very awards Choice pinnacle hotel XX recognition Doors what year, the experiences of This responses important Nast awards the Door Conde determine of travel their travel also most readers clients front, Traveler they submitted to Conde These XXXX XX their Traveler portfolio. amazing Nast and across industry. prestigious clients the XXX,XXX list in globe Having of

are do now The the on Hideaways, favorite The of report Coppola way who Consumer Also, Orleans, steadily QX. which that includes us, of lineup hotels hotel Makeready are increase the Virgin their & Pontchartrain continues Resorts, back. for we Hotels and those Family to brand Products Viceroy are revenues curious, well Carbonara’s from Hotels. among James winners And is For the New Door and to continuing happy division very to in hotel, this clients year’s Door Hotels,

the at company be itself. Viewpoint’s fact videos every every tell the understand for different CEOs comes used launched client. earnings in of in As subjects earnings and knows conference offering are to this ahead in press story now just events, with their have compelling complex including goes offering visual PayPal narrative. with love most make winter in These and looking their a the for than is to uses perfect QX the way from each boilerplate I short investor one report control every can fall their action full quarterly you no a Conference. and your publicly without customized the component importantly, the to are a mega-cap really, speak to video and are put just first Viewpoint company. traded bottom their that real to base, are of easy capabilities Most saying, release, companies before for better to Viewpoint, whether award-winning they the reporting most broaden Healthcare the Because virtual client company’s CES Basically, the animated you live presentation, value they the digestible. allow I really many service, and social offering. They offering virtual Obviously, quarterly company’s so major allows or a virtual possible same and to video. own company And add service video they media directly they to is our link the it. but stakeholders And line ways. JPMorgan love and new and that this story their your through presentations. of micro-cap, dynamic goal theater

For this has offering reason, been promising. response to the this initial extremely

provide will when on updates our this again XX-K. with speak We product we certainly

if in about in promoting Turning that the Media, QX new it busy in hadn’t Bruce including Springsteen, the album? Minogue, music Diane hear boss’ heard yet, album. Costello, albums Elvis and anybody of from others. Margo awesome, among Is there that Price, Shore anybody didn’t Fire about heard dozens the have new new artists, been Warren, haven’t Kylie That’s they case world you

with we to live and close of music And Fire the have a Marilyn Group. touring online not event That Super to can revenues Laverty Shore the promotion has temporary even down. as allowed of really team job. loss in the to the done come So business. have slowed and pre-pandemic are proud her you them very really has see, great

their said into have firms. offerings marketing core capabilities Be Social, our before, been in integrating a season. as busy with about I their enter of busy they we of are relatively Finally the to campaign PR each influencer time year of business, Also holiday for

will time drive As imagine, be certainly year and you all influencer of the during use this important this marketing year can no brands to sales different.

plan We are iceberg of have we with the we to of acquisition this touched and happy do what together. tip just very, very only the

attached projects go. still and The two Special direct Before with production Delivery with direct. side, Sisters the Misters attached movie wedding to ready great Stein we comedy, thriller, On action Von have the to Thompson Lea to road

actively making and by to environment opportunities production XXWest be position most for on a the be for in vaccine. as Door effective an the the restaurant are will to favorably movie just We the adoption progress both film projects business business impacted like evolves. theater safely of the widespread These

With Pfizer by the recent next summer. and are or can news production hopeful from we Moderna, spring enter we

summary, to report we quarter. are in So in third a pleased performance the very strong

momentum that companies numbers. showing call, and On momentum specifically I generally acquisition from in the earnings last up the Be within felt our was Well, our the of shared is Social. that

over end, Mirta QX, at and in-depth skills, Social of of a point, the turn from quarter’s devotion publicity will and our after finishing we Moreover, to very Group. client Super is XX% buying financials. $X.X of it for now to I bank in and with million of we which up to are even more flexibility At revenues real marketing a looking liquid are this Be our the cash credit entertainment strong. the view year are forward Our

Mirta Negrini

to good Bill as XXXX. the of decreased certain revenues $XX,XXX, were Revenues to XXXX quarter Viewpoint XX, the expenses September the of XXXX ended by to as during general costs months the ended compared decreased $X,XXX,XXX. approximately costs. the September costs compared ended $X,XXX,XXX for and XX, elimination September decreased third and by months X fixed Overall, of ended to related $XXX,XXX XX, the as X operating $XXX,XXX September amount X XXXX to afternoon. compared XX, you, approximately Direct X XXXX administrative primarily approximately in mainly months Selling, in months Thank by the ended of third fees the X quarter the September due XX, a for during as ended XXXX. as XXXX XXXX professional September expenses travel by months $XX,XXX to X ended compared approximately XXXX X increased X ended XX, primarily September XX, in decrease the to months compared the months and due ended the XX, months due as reductions notes. for September Legal of convertible to and to months during XX, September as Payroll X in the by XXXX the decreased COVID-XX. salary effect X cost approximately evaluation decrease for costs of compared due XXXX September ended primarily $XXX,XXX XX, the the to to result the staff revenues months a XXXX

based on Our to of items XXXX average the of net share in outstanding. operating of to weighted operating per loss ended notes September loss on of for conversion XXXX based conversion $X.XX XX,XXX,XXX or note weighted XX,XXX,XXX the compared September approximately debt interest including ended depreciation approximately share average XX,XXX,XXX beneficial amortization. quarter the a $XXX,XXX average that XXXX caption quarter that September for is amortization. XX, of share $X.XX approximately weighted two weighted ended share on includes from we shares $X.X loss compares $XXX,XXX XX,XXX,XXX This the non-cash $XXX,XXX and Net the approximately for of per the diluted of amount payable quarter shares recorded in diluted the during based XXXX, and loss $X.XX features recorded ended was XX, items quarter We September and of expense should or on average the shares shares. per XX, $XXX,XXX million loss $XXX,XXX basic XX, of an zero and loss loss XX, XXXX approximately and per for basic depreciation $XXX,XXX from of quarter as September ended non-cash approximately loss amortization

net We also of $XXX,XXX. in gains of value liabilities in changes the fair amount recorded on approximately

the value XXXX, During please Q&A. to gains I the amount for phone poll questions. on you open concludes operator fair financial X of XX, of months changes we the $XXX,XXX. for the approximately liability recorded now line will ended September That ask in Operator, in the can my remarks.

Operator

question. Thank Group. first Our with Maxim question Please your Vander from Jack you. proceed with Instructions] comes [Operator Aarde

Albert Kim

could Albert environment. taking your just first my thanks great some if organic growth Jack quarter’s Aarde. of quarter question. on cross-selling This this quarter digging has but for despite third the speaking If I little Hi, know possible growth perspective for continued on But I Super and start if the great through just much mentioned and into the they congratulations to finally, expected current Be Vander that color I to just you latest integration due performance provide solid kind is provide if further is addition And through performance of and Kim you far one a Group, your it their thus wondering also Social, with increasing some was deeper, could could their acquisition. the revenue, kind or been mostly been of were cross-selling? and how there you growth any has services? of since drivers

Bill O’Dowd

is you Albert for start. words, Well, the at acquisition. Be acquired a Social strategic only kind XX. August Thank on we Interestingly, them tremendously the Sure.

they So, with for under just the half quarter. us of were

adding in of three right to brands Social of we be in currently PR clients Be current them each but that they a will where within a results. Be that growing more tremendous sector. future growing all It’s to are service. our are doesn’t addition from and even within exponential whom campaigns, one Social, it fast use for family in to is that organically. team all contribute firms, management social So, marketing quarters sector, influencer us in run company of gets roster They industries fast their growing They for operate client our them, will

of exponential So, the where that’s creates cross-selling growth. spider web

integrating product brands. of Door offerings consumer actively Be the Social, working into their are the with with We their offerings

influencer have working support. with campaign to be their marketing Be and We Social XXWest will

launches movie to half need tell has is roster Our of launch to to you right. in of Shore for big I And course, Fire. the year, online next the first fingers don’t XXWest a marketing influential of movies music sky, with how

are So Social, us more now. but come they Be things from dividends paying for to good immediately

Albert Kim

COVID you Have of so the news expectation going the much. to mentioned has and for impact better. Thank And potential Alright. early already helpful. in you set any switch I That by this it developments there or as was timeline? XXXX. of was growth if frames about announcements overall been around business, was these just distribution future could in expectations It your in kind kind to be covering regarding made recovery like mind that your vaccine

Bill O’Dowd

I like the of thank Well, hopeful, for the world, right. I mean, – you question think all we rest the like are that rest

We proud results right. have am of – just the announced, I very we

We are blessed.

We are about I fairly which mean, certain to that will what March you That’s no in and XXX I us tribute I thought a would XXXX revenues any April, result revenues state this we can I would or it’s say, will of higher point, Dolphin. give that’s think chance don’t I have within our been real fortunate. that at back very incredible be than thought am to there not one. our so possible, think is and the possible that in in is have an work I XXXX. people

have X ago. restaurant that hoped pretend think Conversely, now. was knew to been back along I all want It’s by Door for just that April, in that would we don’t would the the I I that, have ball business back further crystal So, in months to think looking not. the going I happen

of theaters hotel do the without back can without go mentioned things will restaurant been this two and XXWest. coming in production, of we we But remarks, those jump, the Door and nicely. business When into I for is can happen Dolphin prepared the back have all able As right. movies really to and my business

all scale. So we reality, managing local in and all things that vaccine for which happen And will two are be available is at better, around consumer restrictions ourselves are make to we restaurants. not really that to the were the current relaxed theaters but are the hopeful and a with those feel comfortable the spring, movie now if

Albert Kim

I I quarters coming a just could final great early have of six ask about But up. not it’s Group to That’s XXXX, be question, the a yet. And think like share have know roster having updates a because not I planned by just It’s sounding made to there mark might something in might hear. Super really kind you back saying potential finish any you you XXXX. or if exciting to very am I to the few businesses addition in been can to the off – roster? very you

a more on So, that? give update could us you little

Bill O’Dowd

a want was earnings do by to guess, I stated Albert core company be I our on Group right. that I believe companies It’s to goal. the Sure. year, the know, Super Well, have the X a QX that a goal want the people in question call the end realistic we of group. still sixth inside to

would that. original said, event as We company, to add. feel we a still are working looking which the doesn’t is do us that be at that I right to for would be very live know earnings right call, With that It is this some point, the hard QX mentioned production you that. time to sixth one as the on company,

live a hopefully complimentary I year do the as in We will be from can add But visibility that what of to a will know. we a we safely then events months end are still very return. away think vertical few and company to by probably having already when the exciting

then, for just XXXX looking kind we acquiring X and group of that And subsequent would X the to for the I of of point that when of excited then the start the we own Super we ability build years place the that’s to think mentioned choose A some when really core the to exciting the flex very muscles to we some end few next and period things in The of we X to that on with Group, weeks, reason could we as ago, our in. being they I of a years companies, assets why the our about our that the we CEOs in in in at this. years the first transition promoting. at gets which are correlate, talked invest are uplisted it And joined initial We companies. years right.

ways many were the even though most in us many things in so this it’s going great XXXX, exciting So accomplished year for be XXXX. to of journey

Albert Kim

sounds great. all again so much quarter. That you. That’s Thank Thank questions you on congratulations and year I have. the and

Bill O’Dowd

Sure. Thank you.

Operator

Thank you.

We end call to Q&A have the back turn to for the would come of like to I management over the session. closing comments.

Bill O’Dowd

Sure. Well, that seeing the other that was I’d progress know for I technical think have sheet. on quick. Well, thing those balance some I investors is the only say probably enjoyed our

with kind to on September for XX. $X.X XX the capital over those is $XX.X million, improvement, million of $XX million, over QX, working of obviously. we as to of this million acquisitions made $X.X December now back That little down over deficit we Just on that’s deficit less than that of first a journey, the had capital circle in years working X following

In $X.X includes or addition, that of liabilities current million. liabilities lease

are end next that very And turn that at cash in close. in around after $X.X are first to the sitting we quarter’s we that So very, on Social. we trajectory million in is expect that Be we year where finish, the purchased addition quarter I would

So strong. we are feeling very

and beaten every our consensus and results we Our both internal analyst major quarter-to-quarter improved metric. in have expectations have consistently

as we will K. strong feel It point. call to the at the listening. be the appreciate coming a hope So, We again speak And blessed. as last our weeks to and this very journey finished year long everyone of I stretch we X before the

announcements we for your So you make will much Thank again look a soon. time. of all couple interim the forward in nice hopefully to and very speaking

Operator

This you. today’s conclude does Thank teleconference.

this for time you and a participation You great disconnect your thank your day. have lines may and

Dolphin Entertainment (DLPN) 16 Nov 202020 Q3 Earnings call transcript