DLPN - Earnings call transcript Q2 2022 | Dolphin Entertainment, Inc.

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Operator

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

James Carbonara

Thank you. And once again, welcome to Dolphin’s second quarter 2022 earnings call. call Chief O'Dowd, Financial the and Executive on Negrini, Mirta Officer. me are Chief Bill Officer; With I'd like to safe harbor begin the call by statement. reading the statement in This forward-looking Reform is made to XXXX. safe statement pursuant Act of statements Private the harbor described Securities Litigation the for be of XXE made may XXXX. the Act of and this Section Securities the historical on within Securities of statements statements with the Act forward-looking All of the of Exchange exception call, facts, considered Section XXA XXXX

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

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

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

Bill O'Dowd

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

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

$XX.X business entertainment from million, revenue a was marketing. Dolphin So X.X That's million the increase XX% six months of revenue of up our organic growth revenue starting XX% coming $XX.X XXXX year-over-year, represented year-over-year. financials, QX with all

larger in We continue revenue to versus profit EBITDA last XXXX positioned million to generate year. and in exceed believe $XX XXXX Dolphin is annual a for to

last invest story. Turning amortization and more more milestone differentiating amount in we It's a XX% transformation financially believe our $XXX,XXX. six next to the one now well extremely lowest XXXX debt on the point at debt going Group, puts, is speaking, continuing for the related Simply Company's entertainment I factor us been ongoing books of moved dramatic is of $XXX,XXX, over as is so, we serves Grant as since QX, was debt, million Fortune all income in an a acquisition out growing, the of by which consideration place major paid. cash we NASDAQ paid as call LLP. XX%, remaining this Basically, sheet is approximately all of update companies optionality announced amount offers Thornton to are paying all studios. disclosure our that the concern, of we systems statement and us operating also we the to-date. in one all nets the has puts, to contingent all XXXX asset extra $XXX,XXX, upside This which and has for the sublease but professional we where of financial our income is put, our of allowed to only in X.X, remaining gain all in can as the tells Group have our And on in right-of-use of with understands of includes Grant to change filing that Grant hand, have half acquisitions consideration important finished Ks we to in but remove the providing experience, listed earn-out offset part our change depreciation and has in complete balance for believe from Thornton and and long-term, is on point is space, and reached the profits the debt high of of media to earn-out balance below procedures all is and best $XX reduction the anyway, record Super operating as entertainment our as also a approximately the all strategy cash the a of and furthermore, and from of reached build Dolphin, majority almost and contingent the And sheet the industry been timely look Thornton we even as to debt heading $XXX,XXX today. to our on history no concern, of than to Dolphin's is services Super a and building one the At worthy firm key long-term. profit investments. positive out and in of and profit non-cash marketplace. paid, auditor of it's now but June, that with an been million. diversifying all low Qs mentioned ensure a with the and at metrics, vast we earnings while to and financial our is Dolphin did puts our the This of total items fair value we our impairment less to remaining of of of operating $XXX,XXX, Dolphin continue This great offices, apex from of focus. $X.X

share to exponential entertainment XXWest. could We'll to of us financial X.X, in turbocharges which I'm Powerhouse in double-digit current in upside. our profitably now with enables That first helping are some revenue way. result and both our Super companies on in let's of grow investments. staying look that a We to to excited basis our but and reporting operational forward start X.X Dolphin. X.X on success PR those updates, our highlights Group move

Carbonara Door, Emmy will since hospitality keeps number. James popping, watching XXWest work truly is he film to a quarter, and cried far, Gun staggering $X.X surpassed already XX During that has the Gun: campaigns, with Top become client, more announced for in times lifestyle leading XXWest Top XXWest Maverick so shame XXXX Also, hard on PR Titanic a eyes If mouth watering. have movie a Tom culinary, we domestic box all-time. your of Cruise Paramount's The our second have your helped That's revenue XX than global to launched firm longtime Titanic. office at Nomination his biggest billion sequel

filet The Pat a and Box, staples. Tomahawk Prime on colossal from ranging During wow, worked and Door campaigns steak, ounces, QX, Gift grilling alongside tender XX LaFrieda’s rib other which mignons Tomahawk includes

is XXth also XX As for Simmons The cream festival, summer, Door X-X, fall, ice soared and with wine which The musical York events, including food Sweets from collection, over XX performance Joseph a rolled promoting temperatures will celebrating City's also return Run-DMC. from through its out Door Run a the XX City biggest anniversary and October Rev. preparing new New for promotion Dazs’ began Häagen

music tremendous Bonnie of as Rapper Stephen think music for of Shore plus Chance in client it killing to with also Steve appearing Joel Lifetime music, seven Moore, I special Fallon. top Mandy appearing the were on Shore I’d itself quarter, performing a the Awards won Meyers invest also Raitt, and also music the PR Billboard Rapper number client firm like showcased the innovative Company quarter be company Intelligence whose a Squared companies musical as podcast Shore award Plus, Debate Media, Fast Adweek this on Kesha show, shout topped not Fire Fire, Marilyn roster. believe. Jimmy the also at Seth event and among Adweek's as highlight Speaking corporate call Today top of one earnings charts. by named with and Year Hot to eventful music on her album Fire congrats winners, Show, new show named Grammys Series included season Shore and Fire an out top on clients, Tonight Canada's and the on industry-leading just a Night the Colbert, show respectively. Visionary Music late deserves I so Chance really, our Achievement Dolphin’s The placements And Gospel had. to a Shore to six Fire with streaming The was it, much were new Late each Discovery history every what Aoki the Show of as company And the Shore so Creator is award Junos Award most had guest nominees Fire season. really often Maverick they these by BET the its Shore client, well Mandolin second added Fire calls. on team. and Meyers, tremendous of platform brand and Shore was new musicians Billboard Fire Fire to Seth outdone, to Awards. City had more. Shore promote

report brand group, to with Wonderful, Social elevate the spring off days. brands hottest included timeless Also Nike, Spring by produced the playing and partnership kept styles with or may before POM from Be kicked with Michael worn worked Coachella summer pair Social along off the Lulu's, Jordan that paired spring Moving projects Chanel, trend marketing Dolphin’s a to off Coco Barbie clients. on of Be XX quarter my Air their a Showroom, during in a two with Jordan's those influencer with classic the heading to quarter have Forever working in

regularly X.X. participate Dolphin respected QX, marketing and our range our production it's have Dolphin’s best-in-class X.X, the for video our Viewpoint. concludes in brand projects CBS, equity A&E on in Networks, Dolphin including creative PayPal. to work and for of agency and and completed shareholders marketing a in enable That and boutique, update AAA, to turning now Turning companies wide Dolphin Viewpoint videos upside clients. clients And where that

new the reminder the define a under marketing what we Dolphin at more best call, anyone we Dolphin call to pop we very the our of assets call more Super on market we culture we to X.X pop And for Dolphin Group As define using culture. the own. X.X as have story, and that call, as new work or on new people the each

to X.X people's assets initiatives, assets is know In model, that we live we things we of is in there remind those have other know the and Dolphin, of can more behind taking how X.X, categories. stakes, of simply, some we we else. To want we that ownership that than anybody to market put I'll market. the terms events That's the ownership one or own assets where in thesis core of speaking, consumer where content, types develop stakes products, better types Dolphin you categories and and are business receive companies of broadly two that one a

As ownership equity models we for have of a a which Dolphin reminder, plus and asset X.X, also couple only, include stakes development.

X% stakes, to respective ownership the receive the For look typically in between and equity of XX% somewhere company. we

In addition Group Super classic and cash by examples to the reward Crafthouse promoted their is help brand monthly a Cocktails, of the pioneering to winning cocktails ready-to-drink market Door that all by natural led The include product. fee,

During position we the it take marketplace have assets would is activity result, would X.X and do and and QX monthly that in initiatives, with Examples to included not or a and as Theatre venture. of types the are fee With investments a cash own also Wiz in Dolphin we paying But these England. we built. only often activations quarter, be Midnight market, Crafthouse develop brand of be excited X.X Khalifa since to to we types receive ownership of a London, NFT in now the we larger ourselves. the promotional Dolphin other available respect we product global wherein won

bars Gods later, aperitivo the permanent basketball bartender Saint New many Hidden bar prior was level and Midnight standalone Tante, start A Hidden beautiful with foray Ma official first and in London by I created into earnings chef menu just the Midnight Cohen high-energy to Co-Founder City this ended Hidden from new actually Point also scene opened restaurant restaurant Ian Midnight weeks opening mentioned Midnight stores Tamarind, as a at the that QX Kevin Point is believe hoops with the premier history, of doors and private of of highlighting of the Griffith Anderson, call out first including I Lyan its the inside pan-Asian performance Stephon our Washington. fame. Hotel XX few exciting September July, on restaurant opened. Midnight fame. Theatre, legends York Café. Theatre. Let’s and of Buddakan and famous Vitus York York City Theatre NYC Eventi an newest with Shammgod, New Leaf’s is features Leaf, and Manhattan, White drink It a Smith, Brooklyn Chez its It after the of guards their Dandelyan a Rod the Lilia influential Jackson, Trivedi of in Dwayne opening NYC first XX’s tucked documentary, Gods. Theatre’s wildly XX’s the concept Marbury, The City NYC highly the so God its Rafer PLAZA. last companion, week renowned street is Josh emerged anticipated Leaf events making held Strickland WEST venue, Rocket Internationally acclaimed bar in Pranna, Chai executive restaurateur, Pearl Mark Durant’s influential point profile New Kenny Alston, some most Kenny that in

the Kenny in it theatre was. excited to that’s at private this opens we’re for highly Theatre, publicly Midnight the Jet quarters, especially events what share more We’re encouraged at fall. Smith And potential as the coming

reminder are a for As the restaurant the in be modeling XXX and in seats purposes, XXX theatre. seats there’ll there

and So a margin in of you revenue entertainment $X of and apply the and aspects Midnight for the restaurant number This will of price well out theatre invested with both an an a Dolphin industries. we commercial same as industry. and in the venue, model for standard within average the get XX.X%. restaurant assumption and quickly the within and culinary the ticket largest in number relationships approximately We and of into can as owner the week. profit the and do publicity talent stake manage the is you anyone theatre, can a single of the per a reasonable Theatre shows to model churns all facilitate venture marketing million a

XX%. around the course, for And in the success, country invested in look and to around also then options approximately up will We another we of add locations to world.

to NFTs. turning Now

Chronicles, the of Flower fall. this collections profile terms launches discussed, to the high previously launch have to summer NFT decided we of Creature we and two In have those that push from Girls

coming in based decision the native two be stronger the community in on calculation months the will months. been it previous crypto Our to was the than that three has

We best But that have those have these both two not of of possible chance postponement and to been idle of the does success. them high mean the teams our collections from for it. want of hopes far of the give each NFT release collections

of entrepreneurs, to Symbols. As variations our the project during reimagines We many up Troy Music gated of Peace visual quarter, Suzy that made letters called English second Venice with Ryoo. you for developed partnership know, called agency NFT Come has the helped language in full the promoting NFT WebX for of music artists that of in We and music Peace, slate alphabet on Come Peace a industry new for the independent the worked bring Carter market community WebX projects a a and In also built tech a Come generative We NFT new clients XX and has metaverse-related to Collective In In market others.

gained Piece for a In by first has was Come started campaign NFT platform The market promote already of We tapped a Bella geo-minting and reBASE, new has help ever by Finally, NFT Bella’s marketing Co-Founded number and metaverse to initiative followers. and collection Hadid. the large

X.X agreement Now with for our initiative, most of documentary our features. distribution turning slate IMAX Dolphin to recent multi-year co-production

in second Blue JJ currently hit production his renowned The greenlit Zipper Productions producer, the Angels along IMAX XXXX. with of and developed first theatres Blue Abrams, Films, with and have project Bad and half expected co-produced is in Angels to we is is Bros Robot the

partnership by truly IMAX big nothing of we I of to this a footage We the the excited are be with need seen work together tremendously short that documentaries to the build as is it team this and screen. slate say, from I’ve can spectacular. unforgettable And first film, on seen

the a are X.X in excited We content profit be on ambassador of alone, and and of a Dolphin’s about summary, believe sustainable top profit in path legs to larger our investments X.X Purely X.X market these generated here will it QX. operating on four five on stool. in year call, we we’re million $XX last Dolphin be aspirations excited very tremendous very one business an picture in this growing to Dolphin To of those Dolphin. year. to to on this will that we generate a exceed the remind as than a invest bring X.X for revenue EBITDA

turbocharges and opportunities building the through Thank I to our of Negrini walk Mirta keep dolphin for As CFO. this investments on on it and we’re portfolio X.X you fellow to to with that over excited ride now X.X shareholders. us turn and joining mentioned, enables our financials, our I’ll and for

Mirta Negrini

quarter XXXX. now Thank in approximately ended increase expenses Overall, quarter XXXX quarter Direct the in is Revenues and costs which gain compared a depreciation and from XXXX the XX, consideration are the includes the of XXXX the ended our XXXX, June for for expenses afternoon value you, $XXX,XXX $XXX,XXX. the of ended additional administrative Payroll an to as $X.X XX-Q quarter legal operating June filed XX, from items the costs, value convertible ended includes and compared the $XXX,XXX. for quarter contingent and XX, increase XXXX XX, the depreciation Form restatement the $XXX,XXX, $XXX,XXX of items gain income the million fair The the to costs, XXXX. to in of approximately to XX, and legal quarter June amortization good $XXX,XXX our the value $XXX,XXX of and selling, $XXX,XXX amortization revisions fees. to of to quarter in increase $X.X were for of June in primarily approximately March and XX, right-of-use ended consideration, value count the XX, amortization $XXX,XXX, due XXXX XXXX. to $X in of and million million of $XX,XXX to XXXX the a Net for bad June fair warrants the the composed and of approximately amortization professional A benefits, items XX, gain $XX,XXX, June for to offices amount of SG&A gain and The from value SG&A, for impairment changes June of costs $XXX,XXX of operating incurred in sublease change is ended change our primarily gain note the compared a approximately The fair of and XX-K business. Paycheck compared and general ended depreciation and of ended our a the year. a of of the were fair for quarter Operating in of fair approximately quarter result value NFT as LA with and debt, XXXX, $X.X for the September an XXXX, quarter non-cash of benefit XX, of Bill quarter for increase change quarter will items the million of approximately in compared of on from due period June Operating support ended a to $XXX,XXX XXXX right-of-use XX, in consideration of ended of net the and fair of the XX, XX, includes the to compared $XXX,XXX, for in contingent compared approximately approximately were head the XX, the $XXX,XXX June which contingent approximately Program $XXX,XXX expense. depreciation Protection quarter note direct the due for $X,XXX,XXX, and XXXX of change growth included XXXX were An and million and XXXX. change auditors contingent for million well and in amount value June non-cash income non-cash payroll same consulting $X.X of contingent amortization XXXX. stemming our May expenses to for XX, of approximately of the June XX, change discuss of net $XXX,XXX expenses of million $XXX,XXX ended – a XX, gain XXXX of for June consideration of quarter ended change quarter of in end everyone. of fees in a income fair June million Form $XX.X ended warrants included for quarter income to $X.X compared the XXXX primarily is June consideration business. were million the our as to one and primarily our June XX, I the the ended non-cash associated in asset of audit XXXX. results $X Form of $XXX,XXX convertible June of were of debt the impairment related XXXX, fees asset Legal related fees loans. of prior from the XX, for related of extinguishment primarily of XX-Q, XX, to professional $XXX,XXX. June depreciation gain in $X.X in

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

Operator

[Operator Instructions] Thank you.

coming first Please question Maxim with is Klee Group. Our Allen from go ahead.

Allen Klee

all The X.X? in revenues you the third if in fourth the build Good are revenues, up afternoon. confirm, revenues X.X we the think should quarters? and so, can Dolphin how of And about

Bill O’Dowd

X.X Allen, growth, And was revenues Midnight Hi, are really Yes, organic afternoon. all revenues again. that start X.X Theatre Sure. good September. would all in the with the openings

QX, fall, really it’ll go into we’re NFT but And October. push a September then of the with say them September, collections QX so of And in late expecting some I’d into may kick because the opening. the will be some when in

I’d have the that X.X QX So month really revenues say will be we Dolphin starting.

Allen Klee

Okay.

So that likely Girls and be Flower Alien events? likely would QX Exile those

Bill O’Dowd

[indiscernible] one Yes,

Allen Klee

size this Okay. the And has two then to size the to NFTs in launches? that were going that you thinking be what to raising cut for or you those point, those are past similar the you’re hopefully decision is made at assuming the back of

Bill O’Dowd

No.

go after size time to We’re optimal for and community. same that looking the the keeping the

Girls the And Creature fact that a an the the the entirely crypto the consumer Flower has recovery. And such comic But to We’re crossover. collection of appeal book seeing first crypto NFT Chronicles payment ignore to able broad cetera. to we signs we’re to we out community again, can’t excited with community. want credit card, et by take sold to be its and some transition collections to to –

say it the business, give shooting we date in to the and not release best to want easy a we movie sure that it’s we’re want you’re make not they’re So chance a to movie, possible. that – –

us past the than So the fall summer seems the better volatility given months. couple of to over

Allen Klee

NFTs. following So on up

ongoing was wondering, impact a impact the you or the last earnings on overall an think about this for you we were material about think how community that? like your how that do you On of I does have And how call, mentioned just discourse should – an projects. creating business margins

Bill O’Dowd

just others, worlds, of No, an on really that It margins. a tool release it out. drop. NFT our are to find a to to It day to affect to build is actually. find discord we’re those. week we way, optimal two, going market And followers, community really when the those day that to goes time just But goes both Hadid our collections, they communities the excited and just have it week. And well marketing collection other to collections people Bella that’s one marketing be of some see for doesn’t are the right? to trying an support by and put confidence these are it’s it’s is And all of there another that building will not it’s just them. quite those trying not

a So more we’ll they if the probably and few see next in weeks couple right of success, we’ll go see have it. go after

Allen Klee

more Okay. Is there the to of legal – of audit and costs sense related in type normalized the Is expenses? some a quarter you mentioned kind that there issues. professional were related there of

Bill O’Dowd

as filed well QX Yes. – bit of little spillover in course we QX the because late was heavily dollars. had hit May. of thousand by the one-time audit left hundred related charges, May a K several

quarter see, starting with XX% from return normal we of as It’s think it’s a to year. still you this still down QX bit about last little We had first can can quarter, So as but by well. that QX. up over

Allen Klee

of so? type normal, mean? year’s looking that that $XXX,XXX or last kind like does like Is what at And numbers,

Bill O’Dowd

so. think I

Allen Klee

Okay.

Bill O'Dowd

way, pleased we're them. numbers, time for to about being report have to obviously, And Thornton Grant that to and to that. especially do to staying The look back on today you world able current Get be same, and the right. their to when tell Allen, thank forward help work not us good

Operator

the further remarks. turn questions for any back appear like in to queue. I’d As no closing management to it be to there

Bill O'Dowd

anybody's are, did so revenue middle our four virtually the last in positive we Sure. forecast the earnings on Well, August. income. here [Audio believe in Dip] thank EBITDA. spoke we expectations we're you. I our about Happy I And our to really weeks here hall operating know of we beat know ago, just jumped, and of to so revenue and gave continue again the

is QX So right around corner. the

For full. being in operating midnight theater

fully installed We We that, opening before full moving up restaurant's a showcase and film to and expect to events. open been we're the on the late the schedule. week comedy entertainment take that. has a a did a private starting I last following now, just of mentioned, as week With September theater screening

with as getting for night So ready week every the different we we're of on events, practice pace. schedule,

off So will initiative we NFT flying, good for be continue there. that'll Angels Blue be to some a us. And of out The intended. get for no X.X nice once the pun is bigger us ones collections and

have strategy to X.X, So expect And Dolphin and of have us. we'll real in facets able to up coming open X.X business sources that XXXX. once here share of all continue we by then business all those be XXXX, running, revenue and our revenue live creating more have to for we'll for event our from and we on

long forward talk So should thank for, speaking have And you between so look some for now we'll our time that for keep you thank you soon. to then the again you and announcements we'll to QX, out but listeners. loyal I'll with an And listeners. eye

Operator

if I to if management, handed take to may question I wish queue Sorry, interrupt it. had quickly. coming After back a we you to

Bill O'Dowd

Sure.

Operator

you. Thank

from question have We [indiscernible]. a

Unidentified Analyst

Thank afternoon. I you. Bill, you. Thank good call. quick for for one just had you this And hosting question

Dolphin reducing these services also the as that's this, be result, agencies spend newspapers manpower, advertising the internally, the to in if the do all many As first more degree firms the what departments at a kind from as clients possibly look weakening. your companies their with so that to happening, they that watch companies there Facebook the your might X.X outside with, from dependent on across have your weakened six firms? marketing about businesses to business their out is they My year, various working months of are have spending concern you've in ad you mentioned of question if economy

Bill O'Dowd

very Yes, question you it. a thank that's astute for and

root never of thought certainly media, root about turn TV commercials, Ari, our if is social very would their an less outside in the some costly for never And as ad platforms a well comparison. to ad then those on more if buying nervous media earned to traditionally their at which recession, to spend are process comparison. want to we they spend, more. interesting, influencer they'll occur as as if right, media and on of a a and cetera. recession streaming expensive you down happens the radio some services, ads, into is While need spend guess, what Also double mentioned, buying they'll partners we're by going PR do paid the to layoffs, degree, the occurring, more get marketing in Those I clients of is, or cut companies the billboards, et are costly and back that

services So mentioned. be can we haven't by as revenue circumstances in as certain see organic you in a that. seen slowdown We all our beneficiary of I growth, our may the certainly

media but don't as granted. earned the to the colleagues So and hope our into make they not want for get we take for companies and as their of that expect the year best for go certainly that budgets same And increase off. the will second half stay for XXXX, anything we laid we the if don't

Unidentified Analyst

best and thank Well, luck. very Great. of it. you Got much

Bill O'Dowd

much. you Thank very

Operator

call. conference today's conclude does this gentlemen, and ladies you, Thank

we You may a And have you disconnect participation. and this I lines wonderful your your time for day. thank at

Dolphin Entertainment (DLPN) 16 Aug 222022 Q2 Earnings call transcript