DLPN - Earnings call transcript Q1 2022 | Dolphin Entertainment, Inc.

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Operator

Greetings, ladies and gentlemen, and welcome to the Dolphin Entertainment First Quarter 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, James Carbonara. Sir, the floor is yours.

James Carbonara

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

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

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

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

Bill O’Dowd

today. you and hi, James, everyone. Thanks, thank afternoon and for us joining Good

by operating financial review financial and a and we’ll up for with of As then always, highlights, start it a open full we’ll Q&A. review, some followed

start revenue marketing to super organic services QX to of annual million the XXXX entertainment strong year-over-year. to the increase continue $XX increase This larger derived feel the million positions for last a to versus $X.X companies. Dolphin growth group EBITDA of within in expect exceed represents starting a the We with we our pure year represented XX% financials. from revenue generate Commensurately, of So year. cross-selling in XXXX. profit

QX, collections operating March back XXXX that and operating our includes was investments a also little includes loss in quarter bit. Turning items now and completely $XXX,XXX, NFT onetime NFT our upcoming the finished. though in the related line, on for More amortization it is our XX, noncash on to from $XXX,XXX depreciation nearly ended to of $XXX,XXX, marketplace business our

items also Finally, expenses, onetime which our approximately that operating $XXX,XXX onetime consideration was also audit, initiatives. X.X noncash of to XXXX, of noncash Even of improvement filed $XXX,XXX changes with and of those QX QX included from number Dolphin depreciation was to includes May $XXX,XXX amortization $XXX,XXX. which nonrecurring related value in fair fee and and charges, over QX an ultimately from and of annual professional contingent primarily

I to would to the sheet. like balance Now, move

do on make possibly a and on get most XX-K. call, a few today’s stop because point chance minutes this we to call Let’s important on after is pause for something this the the our to didn’t

major growing, and are Ks. understands entertainment LLP. remaining no entertainment more and all of and far debt and extra now reached companies reached acquisition long the have since the dramatic our But we of been cash the exact. of just Qs vast the for has long is paid but paying the equity with in and continuing $X.X tells experience, heading That is amount out to all million of is of has sheet record It at of that concern, that and earn-out on And NASDAQ services we puts all strategy to XXXX to on majority hand less Grant Dolphin, and paid. and XX% more puts, six so, $X.X believe consideration place profits debt for debt below Fortune Grant remaining look a we building all on is milestone we our remaining shareholders’ all And almost our Furthermore, all to is even with half our diversifying the be Thornton to reduction. the point one of of our and important the our studios. than the also the $X.X extremely from is all where professional a Group, million, books firm listed has of in lowest part million. Super financial in of going $XX balance have the it’s of only we million. At our to been term. and million of auditor XXXX is million. a factor change earn-out we focus. systems story. improvement anyway. $X to acquisitions. space, of our over for Basically, It’s financial debt media filing Our high next the the to apex Grant is update, worth this paid, now build contingent a to and of announced cash low At history balance marketplace. Simply us our have financially All and now providing debt, been in complete statement remove differentiating allowed disclosure Dolphin timely the Super put, serves best us moved Group, we finished ensure industry than has sheet Thornton we which a one XX%, This procedures in point transformation of investments. speaking, Company’s a but our term believe under puts as $XX in June, ongoing we concern can Thornton

Shelton World Also, with special see and Cyrus, which than Dolphin’s voice Stefani happen. off well as have great Shore Fire nights Halsey start let’s those Springsteen’s other XXXX just those announced of to including for talent, XXXX, Mickey Media, Shore guests. as to again you Machine Now once James call and listening to our carpet year that some has first Green Boss Super better and kicking firm, Tour. Fest with Carbonara. on Miley had if Super Day the numbers and next move start there We’ll operational QX with Fire Hopefully, and the companies a are PR all-star music updates Kelly, to making sing Guyton Gwen we’ll by at Group Light red Bud Bruce and Gun The of Blake locations along some out only helming with great the dates Bowl Music a this three industry-leading

to busy Paris Kylie the a campaigns management to along Dolphin’s team Moving LightStim marketing Jenner, Be with Revlon, included brand such talent and has group, as the Canva, it Pinterest. blue-chip has has red that year influencer while negotiated brands for and hot campaigns with Australian Social, been start L’Oreal EyeBuyDirect company, Prada,

Viewpoint, Peacock, Business agency Turning for videos a and production completed respected Sports now in and video School. of including PayPal marketing Viewpoint boutique. and NBC wide Harvard clients QX, AAA, creative to Dolphin’s range brand work

well the once was of ranked any had again, Observer’s worldwide highest named have ranked successful remarkably helping in X XXWest XXWest with film Tom Maverick The the and XX. firm The start the Door Finally, Top a Day were in has this client, in number passed it’s that million. The entertainment largest $X.X and the Firms longtime office. XXWest Cruise at a box $XXX.X not very ranking to XXXX, Gun: the performed number has Powerful Memorial XX annual country, and now to most Most grossing opening nation, to billion Both launch domestic surprise list recently of Door history summer the

longtime Honest Door Door has having clients, snack fame. part, Goldman venture The to landed Burger Mendelsohn XXXX, Chef newest launch strong a the fast-growing Seth Goldman’s and Spike a had late also a venture, The the Change, quick of already Door the on company. plant-based service start to in restaurant brought its For Spike entrepreneur Eat plant-based between PLNT and was Tea year,

multiyear behind in to beverage best-in-class in We facilitate with December That’s beverages recent the the under Tea eating. to marketing ownership the he and we Goldman The Powerful a Door is some watch, its Dolphin in agreement perennially Observer’s major on X.X IMAX. brands, this for Crafthouse know stake company equity Companies movement Door Door’s by XXWest, and the segue taking are clients. bring PLNT Eat have feature market assets we and Because the Honest just announcement That’s Cocktails; they Change our these Burger past a discontinuation Kudos why Dolphin how why that planet-friendly to shareholders into May, The with we X.X, announced concrete That Eat With know thesis of that of fold we ready-to-drink how Dolphin with Most have again ready-to-drink player might and concludes an projects gave stakes upside after is took will that perfect want and to list. called The on proving Coca-Cola. routinely X.X. market. ownership and that in You to we examples in companies and the our PR equity the X.X and participate XXXX, Dolphin films. Change a yet seen Dolphin back the update in why both my to

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restaurants the restaurants, within as Leaf ago, which in that’s that Let’s is of and with Lilia’s, true as with you from between other timeless those by acclaimed variety represent one date opened restaurant contemporary Josh sum a Many Chef spot Josh’s Theatre, get are and an Executive The XXrd it multiple of So, a also, Chai art bar scene and just I and of Avenues with favorite the Buddakan is influential out small is Brookfield a is have our development and America. which renowned and including Cafe. publications night bars, straight bartender both into the many was some menu hardest stunning Theatre, XXst restaurant but London drop-dead to of the in anchor beautiful New making Hidden out of a Montana. newest of wildly $X.X the them as not with couple Inside for been a know by deco well aperitivo world. features there. first gorgeous Iain The a theater personally and Shane high-energy of the foray restaurant Trivedi, restaurateur, bar design. previously Lyan, Great out the bars Manhattan. London have bars City there Dandelyan By the those West, aside, Pan-Asian you concept for one drink billion of from White menu, would [Ph] the into street-level foodies Josh will And of created celebrities, start York think Brooklyn a and favorites as internationally Theatre, we Manhattan Midnight stand-alone of be It Leaf’s Hidden if you’re Griffiths, Gatsby. ranked way, too And opening Midnight Midnight dim to XXth restaurant Cohen. and and off in Hidden Xth and world. the many weeks this plats familiar a has recruited the Midnight from between co-founder we permanent the his who best of Tamarind partner, name Leaf, companion,

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the Midnight XXX range a two defined theater, variables even because will of Theatre straightforward model. predictable As it in components, modeling the There seats XXX as many the there and restaurant a are we’ve be though mentioned and theater. that has before, in we’re a seats for hopeful creates the relatively of already restaurant, or

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in how $X this approximately venture of at invested stage can this of stake You very XXXX. exciting become quickly can the million into see a Dolphin opportunity company a for We XX.X%. for

for to -- in up approximately another We also options XX invested XX%.

excited we look As of and course, world. around you to the Midnight add locations very and country we’re Theatre will can around tell, the success, for

with leading XXXX, had clients to the restaurateurs, with in need didn’t to agency. dozen clients the year. Dolphin and turn out. the that Come agency a and clients foodies Come cooking culinary NFT owners Peace mogul, music collection community partnership March developed a In Bella virtual and led by Tom I’ll Colicchio Now, NFTs. Come the We marketing, an the Chfty, In Peace integrate over launch Peace’s founders NFTs past quarter, In The our full continue X launched metaverse-related sale We Chfty NFT Mendelsohn Spike the will space. of on Peace has with went consulting events. quickly and a creation first already first attracting to including Entertainment helping agency, a slate with the communications aimed We collection WebX in-person In into metaverse quickly ecosystem and in within and sold partnered In supermodel of develop acquire to at quarter and and celebrity of ones with industry We larger after and the provide Come Carter. access Hadid to with chefs chefs, In Troy of WebX brands We projects, culinary WebX. We

dozen call. includes for forward NFT you QX to Our collections than in few our and progress when of our summer again slate a speak on half updating look drops more we earnings a we weeks

coproduction documentary Dolphin initiative features. Lastly, earlier. a has is and announcement X.X IMAX I a agreement of for recent distribution our the slate with most multiyear Dolphin entertainment struck referenced

we stories the Productions, producer the in Angels a of rush be is final squadron Angels featured will in cameras a take view Blue training will currently ride also for lifetime. audiences project coproduced while ever, this first Blue Super first time state-of-the-art expected mark its Bad follows production stories Blue the the sharing formation, inside Corps their be F/A-XX yellow the time half film Marine be the renowned Abrams hit their Blue potential with shot with of experience into team, and these Angels veterans is aerial and visceral the iconic of will second certain to class the the developed incredible Films. heart-stopping have blue their and the with the flights. moviegoing only is will like Navy to provide able IMAX and have as It and IMAX. storied fullest first flight adrenaline on for unique Hornets Angels and J.J. year is truly artistry, The and IMAX to cockpit through experience. Bros in the simply being newest of greenlit Robot pilots, emotional season will along who the go Zipper best-in-class is The helmet enjoyed first the comes of XXXX. IMAX inside of can inside and IMAX it theaters to when to the the in seen intense

are We need excited this slate with big we partnership screen. that to together team build to seen work of the the as by unforgettable on documentaries IMAX be tremendously a

additional X.X for now, top the a first it these quarters So, in and very initiatives, proud expect we’re And for five for pleased on there our also importantly be Dolphin these in conversation like us X.X investments years most to we summary, are and and a extremely that X.X sheet summer XXXX. we are of of business. to growing come. balance to today, factor differentiating detail. today’s hopefully, with reiterate I In provided the some would of are,

way, now. NASDAQ XXXX fun was only we’re began getting be of and and best Group. of it to The this to are before, Officer. is December the way assembling us. as Super we Thank over started. uplisted It’s Mirta ride of our joining where you and we financials, now said we All I’ll on But to this thesis to Chief walk still way, turn in for when ahead Financial our the through us Negrini,

Mirta Negrini

to for March depreciation $XXX,XXX the increase compared $XXX,XXX to depreciation XX, initiatives. benefit the million prior X.X for in of XXXX additional amortization year. $XXX,XXX XX, professional quarter included $X.X $XXX,XXX XXXX, $XXX,XXX, were unchanged period in legal $X Net quarter fees of March year. primarily $XXX,XXX for which consideration approximately were quarter of loss $XXX,XXX a the depreciation noncash and million fees the quarter same XX, afternoon, fee included $X.X prior approximately quarter Thank and was same compared which support of in compared will consideration now the XXXX, the March and the the for gain were convertible administrative compared noncash $XXX,XXX loss which quarter for put to $X.X and $X.X million contingent $XXX,XXX from our items for nonrecurring in the to quarter million, and Legal depreciation XXXX, and were for of for the loss in was the items amortization and increase you, liabilities, Revenues audit to $XX.X expenses of ended of ended $XXX,XXX. The $X.X XXXX. Overall change changes the of gain same and I primarily certain are and March is the the in warrants, ended of prior XX, everyone. March QX of the were year. business. a approximately XX, million fair the the from quarter of administrative compared Selling, contingent XX, related $X.X general in March XX, professional million quarter the compared a quarter XXXX. overrun aggregate. ended approximately depreciation the consideration in net The XX, general an growth of -- value notes value and due result as changes payroll approximately of XX, payable good fair onetime period value ended warrants headcount ended to changes and the and our XX, in March XXXX Bill, the of discuss from Operating value of rights fees. and amortization as fair $X.X costs business. of change expenses approximately restatement, expenses legal $X.X of to primarily of noncash due costs, approximately results for includes $XXX,XXX March operating the March to to ended of the a March XXXX, from $XXX,XXX in value XXXX, approximately were of $XXX,XXX March included the of operating negative benefits, XXXX for and compared the change of in ended the amortization and in loss XX, of XXXX. in consideration, selling, and in and XXXX, note $XXX,XXX the ended for items million to and million and the promissory noncash ended items Operating costs, fees increase and The period of XX, same and March the ended XXXX, expenses quarter contingent direct of quarter the Direct consideration NFT year. composed value stemming Payroll for period was and from fair ended the prior XXXX from and million to in million the professional of contingent derivative loss costs $X.X incurred convertible a million quarter fair for contingent amortization, Dolphin XXXX, fair $X.X

X,XXX,XXX $X.XX loss March weighted XXXX, average XX, Cash basic diluted XX, as to I shares XXXX, share XXXX. based for per XXXX. per line diluted March per share for $X.X remarks. based $X.X on That compared a March ended $X.XX, were and shares based weighted ask million average would to of average ended will and on loss please XX, phone loss fully my weighted equivalents of compared questions? financial basic of $X.XX is and cash you million poll X,XXX,XXX as open shares on for is X,XXX,XXX quarter operator quarter the both For Operator, now to the March concludes the the XX, Q&A. share

Operator

Thank Maxim Klee you. coming Allen Group. with from is question Absolutely. [Operator first the And Instructions]

Allen Klee

is, The all doing can sense us X.X of first -- is to you give for segment question how projects? in a of much revenue and that’s in PR marketing type one your the related

Bill O’Dowd

I know than this Sure. would year, have ramping of that less QX don’t in up we this -- very summer. been That’s little, all Allen. it $XXX,XXX,

the thesis X.X% X.X% all it to it gives So, year-over-year growth cross-selling it’s it just getting between our didn’t acquisitions, because had a organic had the So, more right? companies. view, same we is and with. we and cross-selling better XXXX -- was the in in at the have between we company really validates any And companies cross-sell

months you now, can So, acquisition. growth we’ve an that XXXX, and the in quarter-over-quarter XX year-over-year quarterly what straight the to see -- led growth now sequential without had that’s

Allen Klee

should you. I of -- NFT-related onetime that like why about expenses. auditing so, And something $XXX,XXX thought is also you expenses. heard maybe Thank -- I also? considered say Did you thought Could understood there’s right? explain XXX accounting-related you hear around I be around I that onetime $XXX,XXX that mostly say But something that onetime I why I if heard that?

Bill O’Dowd

our that was with collections sell the partner directly QX. collections use and to NFTs We to a in finished either will we would or on, allow consumer from clients Yes. Sure. that built own that marketplace us it marketplace

or the we They obviously, amount about capitalize entire of So a little $XXX,XXX. over didn’t expensed -- it.

don’t So in we quarters. in again to that it’s future a but QX, P&L to see hit expect

Allen Klee

Great. Okay.

that’s… So

Bill O’Dowd

I number, it don’t QX building exact QX think in last We very had well, QX. last QX I year wasn’t but the of and started carried we the year, because a as of and that dissimilar, number remember at end

Allen Klee

very Thank any the done? update -- -- Could any they’ve That’s of how that you on have for launched you. helpful. NFTs so an of kind the give

Bill O’Dowd

Yes. Sure.

next starts weeks. slate couple in of big the Our now

So, a sell with been we tremendous launches point. a The the in celebrity they chefs to [ph] it’s getting have But of commission brought Chfy, in mint out size of couple was within days, a a highlighted and was total $X.X Door million, and was to one if using bolster fan this differently did for smaller at in virtual club, business I with market obviously will, will, we this late need. couple live one, and mind maybe team teams chefs Door since the QX test, products. a primary that smaller one other you of we’ve The And over think, different than as the and as matter culinary benefits. little that. developed And it if received celebrity QX it cook-alongs techniques, marketing NFTs you of that a mint, the with stress but been

You need to be Twitter. able and to manage almost Discord XX/X community on

well. to will have this media an we need have do it give And advantage marketplaces. along, ability sell to to direct you social the other think to different with management are there capabilities So along us

a start have one Bella proves that launching not will bigger seven-figure to bigger see this with Chronicles we’ll collection. a thesis so be collections exclusive. We’re that here Anthony summer. collections be collection, are The will Creature trying true if we total -- be Hadid But sales. when bigger Those

it And picture. beyond they because that So, itself extend we’re have also trying the pretty offer what to do to different that’s NFT benefits we collections the utility a makes our think right. beyond we want that

if see we’ll we’re So, right.

Allen Klee

third will this it. Will see the second or be be revenues Got the you’ll quarter? quarter, do do think really in when -- X.X? -- any be will third then it in How you from you the in

Bill O’Dowd

have QX. we’ll and in QX when QX, QX I really the quarter. but we Midnight expenses in those happening, that that’s third but it because kicks open theater, but restaurant in in in open, think won’t mentioned We the revenue is we I in Theatre starts had here venue now that have

-- quarter of possible expected as full have first then of go first before X QX. we to X will for but have And quite in larger days and before I NFTs, the QX, it mentioned, the theater a again September. started we’ll talk even being both So, going open first larger collections already to week, restaurant it the being and

So X.X in have I would QX, say now revenue. we’ll

Allen Klee

great. then, for extra show the you the of did the -- the costs? Okay, are segment when had up And which marketplace, that what and cost for where NFTs building

Mirta Negrini

direct in It’s costs.

Allen Klee

answers lot. That a

was gross I margin. Because wondering affected what Okay.

I’m the So, that that guessing impact. had

Bill O’Dowd

Yes. in no costs direct QX, revenue. $XXX,XXX of

So start now, we’ll QX. in recouping

Allen Klee

last -- get the does does that when finished? When Great. contingent earn-out

Bill O’Dowd

Yes, finished XXst. it’s it’s at Social, and here December Be

all be $XXX,XXX companies will stock. And -- they’ll we’ll mix fully cash And paid to and a hit So, of it. once six for. next up paid spring, it’s that’s

Allen Klee

Okay, great.

in be outlook can I there the would Is what you of adjusted for tell ‘XX? that ‘XX you from for you higher terms ‘XX? versus of say provide this you commentary at point I other think So, in year, to EBITDA any can expect heard

Bill O’Dowd

No, nice target be about the $XX over growth. of million, I which feel continued revenue good will

those I think QX, QX we’ll nice. we feel excited grow of and four start. that’s again, very good year-over-year, in a share course, results good to quarter-over-quarter, about, off weeks. to is

to has feel could, that plan. Gun. of pleasant Top Top to have we’ll that speaking what taking summer today a operating, about talked the the And announcement, documentary of Blue course, success QX you that and if which to of revenues have very dropping well, only And XXth, little a on makes the roots the I documentary should here but tell bit. the release last all a love sense. a just return NFT that that two. blessed but good part out, we feel year X.X is Dolphin did production was for anticipate schedule. surprise it XXXX, will -- Gun was We Theatre we’ll business, And event, we partial the content in I involved. revenues, have July I and after this knew last the IMAX a we first mean, we year on since so. if we for XX film year had about from Midnight this prior in certainly really of years, of that this by public. and partial Angels master have a be coming of Dolphin XXXX, the But of we’ll I’d all business Top So, Gun That’s a then, been I full those is Because of the we’re the

So, all ownership in on obviously, larger in revenue where cylinders. all we’ll generating have we take major three, and XXXX, three initiatives all stakes X.X those

Allen Klee

it. Got

going at to know and dropped back the the open outlook seas kind has we your lot, for view at like we segment? NFT of all volumes change of that the business, stuff. if Just that Does look trading a

Bill O’Dowd

buy comes we sell were right? certainly for it in gateway, type it’s and to of NFTs fan but consumer just whatever right? type get to the or been other included, name it happens. restaurants from which try, joining different excited I aware we going Maybe NFT right? where it traditional only people want seen and we’re advantage and in masters access you gives drops of NBA or what give it, sharpens in community, our tickets effort sets than the of among use game think see what sports by we right? Good -- a NFT and an -- Those club because the competitive allowing transfer You industry collections, game, to a us a easier we’re around our or benefits, to on of key for rebrand want already that as benefits, always at you we what an a NFTs what what And May bit it, need does like interested are celebrities it bad, buying marketing whatever And in, call members some it it the to And down NFTs we haven’t you us we away where I have to easier NFTs, -- is this, what a tickets, next get NFTs put extensively. that track clubs to from have or ticket, tickets calling they version yourself, SoHo picture maybe blockchain behind it’s NFT it club call into separates you we’ve other House, that’s to the communities or something profile be think a we’re as of that to using the and to a whether yet of want and as just Allen, and private little to it the the the a so, seeing an building really real-world to that and NFTs, whether a to do, NFT. are can and talk the they June want basketball -- help of the to But teams to the building a they NFT really start access do and go areas this. with NFTs they events, year, to focus an NFT mean those go themselves. NFT what of heard are about market virtual see our conversations,

more so, fall, have got that we want be try a and I excited a a that’s will those this to we some for down, if partner. in from very of couple and And once could, marketing we’ve we what like us. And this we’re then starting exciting feel cases, expertise summer coming

I in great somebody development, that’s and will excited we’ve that of And times, extensively world whole to entity that try partner from offer a and build that can live similar script something to benefits QX. if try the them project. exist a something Hollywood with to We to in excited has screen There’ll and events, develop But other we’re or or for can be could it’s we you from right? and be a and virtual in that cloth, start real we’ll got existing about play that’s thinking that to. old what find very been that be QX book we’re communities or an my with will, community. certain think may an And job, you NFTs, Some scratch. already towards

Allen Klee

and contingent related guess, just if think $XXX,XXX income the cost then that the I more fair math that have to operating the I get as or then acquisition right? onetime or of I EBITDA, -- marketplace. viewing value spending math cost -- I doing your that and that me a my build change sound Am the excludes to earn-out But not. loss legal, extra an does accounting And over the I tell positive. plus Thank the the -- to added question, if related the I if $XXX,XXX of you. D&A, if like wrong of back I I’m like in $XXX,XXX. take $XXX,XXX But something doing

Bill O’Dowd

No.

four shrink I way. think point that for think went consideration growth confident those over then, contingent year. last And I feel very other loss, the dramatically. the would your do the EBITDA -- in you flip we through EBITDA steps would But the to significant if year

yes. So,

Allen Klee

growth, When say imply EBITDA? you you positive

Bill O’Dowd

positive EBITDA. Yes, EBITDA, than higher last positive year’s

Allen Klee

seems have maybe kind of I’ve I’m terms been business -- a great. about and that Door, been -- a like in Great, things And lot. been hearing of has strength that of bunch just The like it the like assuming seeing. hotels improving

Bill O’Dowd

Yes.

really movie in It we those Emmy roll QX. it Toms., of along starting in itself business. Door’s revenues I great returning Top working it’s nominations QX, one businesses. to released X It’s is and coming number. then, itself Elvis, to Well, continues in one to Gun future The staggering XXWest showed come very of to in quarters. some on. but returning that will -- restaurant and QX business but are we’re in our to know the back course, don’t showing with and a lucky that’s have And have life. We many grow how back. And continue

of of XXWest reasons, fourth marketing the is expect a third such strong year So, same mostly season. Emmys as with around right? and this -- quarter always film independent year push season thing and seasonal, for just the we did stronger second our I back-to-school grows holiday. wouldn’t it for the Historically, but stronger a has And company companies year, we’re variety of the award it say the is quarter the our in the year. most into half throughout of influencer last certainly around

about and we’re can movies you add happen excited in a when healthy half second year. a it, business then this and So, should restaurant to business what theaters the healthy of

Allen Klee

be should to quarter, way there like the sounds momentum it, each about It right? Good. just think

Bill O’Dowd

I what that comes think revenue X.X, taking things in -- we’re in And our with swings that we’re in, success. and that will supercharge obviously so.

hopefully, difference the maker we’re business quarter, will trying opening a So, in with NFT do time Theatre we’re fourth it being September, in very And patient it to hope with collections. Midnight we right as the and be bigger too. that

Allen Klee

Great.

Thank that’s you much. Well, it my questions. Congratulations. Okay. for so

Bill O’Dowd

Thanks, Allen.

Operator

Stevenson question next with from Brad The Instructions] [Operator Investors. coming is Breakout

Brad Stevenson

Hey, Bill.

Bill O’Dowd

Brad. Hey,

Brad Stevenson

second as in you. June any thought I a some talk it that? reason, Questions going was one there thought I it I that? of targeted your to about for Girls have in maybe -- for I drop. heard I Hey. calls for remembered a on And maybe update Flower you had Is

Bill O’Dowd

June XXst nice an remember, the made team the had drop. whole Girls were Girls at Girls announcement Flower there. in Flower have And Flower that a would that have that Hotel thinking Girls, the event would event have did remember I at we We don’t been with night NFT But announcement a Crosby NFT about a in Manhattan, I we night. we creative with convention the a June. Flower do big Yes. NYC,

For Flower the else time there this are take But successful Girls I’m time now, not on put rest bullish different a that if postponed May the a June conference. Girls think at that that in lot it liberty good Flower space. to NFT industry, but very good the the right on know say with and reasons, of were a at announcement. we through working felt and to I we’re was But and year. There don’t was out something brand people of about I program

Brad Stevenson

X said maybe on Creature or Okay. think X weeks, And Chronicles, I you one? that then

Bill O’Dowd

Yes. Yes.

that. then that started happening. of happy we’ll the couple hopefully, right, about week Twitter Discord weeks I or the community feel be within it these next We and goes two, opening think progress of usually a community, in And things good are for up sale there. we as are all and the goes in the with

and gauge, the the way, marketing. try as of timing you type surf right? kind the ballpark wave right Different So, that’s of

Brad Stevenson

talk about Okay. And about you then, weeks. you two that your said report, in talking a quarter few actually could

that on point? at deadline deadline Do the reason any this August to miss you you’ll think is believe that have I XXth.

Bill O’Dowd

about them plan QX of on worked a as to Grant with I with get current today. very out No, us we QX part feel having to putting was good now and QX out plan Thornton, because switched that

time. good that feel So, about to on release QX expect and

Brad Stevenson

on Theatre, the your you’ve actually of don’t be? I when that option? Okay. timing XX% about additional Midnight of share when the talked execute that, would might think you timing you like Can

Bill O’Dowd

It after opens. will it be

tracking opening the we get market we start. I good see we’re can until don’t a have And those make to the with off of decision. to And and exercise the it’s well, think able we’ve moment. are to to want visibility the open we theaters it of we’d results open options. at had to several being and date, first But feel on the bullish expect we an So, months we good -- that that to decision and make of already and even then but the it in, couple very informed

Brad Stevenson

to I for -- not asking to able thinking Will you through initiatives into operations? would cash kind cash is can sort thinking this you forward you of we get to you you you when that’s guidance, know -- cash before be X.X be able may next it. of do think we there? give year from positive Are -- going flow be this fund future year? probably But Okay. be Do

Bill O’Dowd

was first broke sorry? question, up what that the You And part Brad, a little. of

Brad Stevenson

begin think you operations? your investments be funding from do to cash able X.X When through flow additional you’d

Bill O’Dowd

positive, get for to can to any or depends that That flow, that probably so where enough where or quarters in by in idea always investment off years a build would X where the us get a do we a could investment. do to it’s we’re within out cash so to X.X ‘XX -- that’s gray point first and X it on may of capital was which enough we’re could multiple year Group almost area to of or and to to additional of it did free But grow. to Super near sets our the of our during while the growing, be cash fund if able we is last to we uplisting our business much as that then, on of multiple our point out we we capital in have we to And need point plan think next want funding X.X the NASDAQ, then we And X in we on spinning of it talked or the do Obviously, even X that this possible it use investments. year, year. where EBITDA that mind right, we build smaller, future we’ve investments ourselves. depending companies out sooner. size think flywheel, point. to some years I got continue the keep anywhere our buying But investment it’s that there’ll flow get getting cash about which skill years X.X

get the next but raise right? ourselves. getting investments to capital require going for flywheel, don’t additional that regular we schedule too. closer. we’re to from and are may to course, X.X we’re cover investments into just some these area We But a gray So, And now of have cash need make that enough to quarters, of flow to in profits. where certain closer spinning X.X just X.X off initiatives cash they’ll capital But our add few

Brad Stevenson

when we I a have expect live [Technical might Difficulty] two about One, anything you I event X.X don’t more. think live mentioned events.

Bill O’Dowd

don’t events, company, investment live explaining you for good a up know have an I you I -- know an having right, because a that that X.X. did I example if bringing job thank thank well, Yes, of because already We with Crafthouse. don’t in

put it have although IMAX. I started an venue, don’t consumer which know but with a business. with content -- started well, would products NFT the example of in, I Content We category

we events, don’t So content haven’t now X.X question, the it’s for you -- that announcement made yet, leg that May. and last we thank live the of started in that we

think we and do business -- we think. actively live with, ready discussing the because we’re the that that into So, we for -- are that events could we well look to go partner the partners is world

We’re seeing it across our businesses, Brad.

firm, It of to back are music Our of That six I that clients. that can’t by artists road. I ago. made true I alluded mean, tour year number true a but on PR ago. announcement, the count wasn’t the multiply I Springsteen Shore wasn’t the months out dozens -- Fire,

share a too, to XXXX for as But the would have XXXX. to it end people world it big year the well, think them seems I hope dream field, whatever events if selling we events. every day in ready are culinary, from such year. the by would area, marketing advantage. in be music, fiscal in live X.X strategy yes, headline great. we both having that’s so others, that They’re promoting has the big advantage And a events be live that our And and of a in That out. tool So, So, of live generating that able think to our for would of revenue be legs events we right? all access to obviously,

we’re working We’re and that, hopeful. towards

Operator

closing time, to back like any Okay. for the remarks. At O’Dowd this floor Bill to turn I’d

Bill O’Dowd

the Sure. call. listening thank questions for Brad Well, from you both, those and Thank to Allen. those you for

start vast situation Super we the Super timely reporting -- the well in far companies closer earlier to We’ll years excited And to and month we was or a be the two Group’s Group schedule. Group’s been dream, majority right? closer report to and Super today, balance back today. paid. We been quarter just each you have on heard But, are different it as excited very of QX ago. the get built, be wanted one our and as has the here is with the than we’re sheet And towards

X.X year closer then, made the expect right, quite this first we’re investments need we X.X us half X.X just target X.X. So for where hit investments. to by or year, are -- whether XXXX, we funding at our starting be nice and this that a the We getting it quarter, future own would have acquisitions will are investments. where just cash both second to revenue investments. the we be generating which have then we to in to X.X investments, scale, point that those of XXXX we And the frankly. market, We’ve and And enough say, the generating starting now be multiple free flow

worked Midnight done check you’re getting I So, mean, out come -- restaurant. in Manhattan, team’s that very of Theatre. very hard, if the proud ever

it’s said, I gorgeous, As it’s it’s a place. and going just -- to be special

So, we’re excited for investment, that course. of

the So, credit to what’s an thank a just point. to in long-time period And update look giving in a giving you all this our very weeks. listeners I’ll to for short -- get for forward time us of to going be and who few

hope of has day, and Monday, rest a everybody. I So, everybody great your happy

Operator

This and ladies today’s does you, gentlemen. conclude Thank conference call.

you may this have your You phone day. for participation. your time, at and disconnect lines wonderful a Thank

Dolphin Entertainment (DLPN) 19 Jul 222022 Q1 Earnings call transcript