Q4 2020 Dolphin Entertainment Inc Earnings Call
[music].
Greetings and welcome to Dolphin Entertainment's fourth quarter 2020 earnings call. At this time, all participants are in a listen only mode.
A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I would now like to turn the conference over to your host James Carbonara of Investor Relations.
Thank you and once again welcome to Dolphin Entertainment's fourth quarter and full year 2020 earnings call with me on the call are below doubt Chief Executive Officer.
And Milton Greaney, Chief Financial Officer.
I would like to begin the call by reading the Safe Harbor statement.
This statement is made pursuant to the Safe Harbor statement for forward looking statements described in the private Securities Litigation Reform Act of 1995, all statements made on this call with the exception of historical facts may be considered forward looking statements within the meaning of section 27 day of debt Securities Act 1933, and section 21 E Securities.
Saint Act of 1934.
Though the company believes that expectations and assumptions reflected in these forward looking statements are reasonable it makes no assurances that such expectations will prove to have been correct.
Actual results may differ materially from those expressed or implied in the forward looking statements due to various risks and uncertainties for a discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward looking statements. Please see risk factors detailed in the Companys annual report on.
Form 10-K contained in subsequent filed quarterly reports on form 10-Q, as well as in other reports that the company files from time to time with the Securities and Exchange Commission.
Any forward looking statements included in this earnings call are made only as of the date of this call. We do not undertake any obligation to update or supplement any forward looking statements to reflect subsequent knowledge events or circumstances now I would like to turn the call over to below doubt Chief Executive Officer of Dolphin Entertainment Bill. Please proceed.
Thanks, James and Hi, everyone. Good afternoon. Thank you for joining us today.
And thank you James for reading the Safe Harbor statement, I think we should announce record debt and release. It is our first startup T.
Atwood that would do very well.
Following in our traditional format I will start by discussing our financials at a high level and then speak about dolphin, one point O and the acquisitions. We made since last year's 10-K earnings call and then move to our launch of Dolphin 2.0, beginning with our recent announcements regarding ftes.
Okay, I said last week that I was excited to share our financials, because our financials reflect the strength of our Super group, let's start with revenue.
Even during the pandemic with movie theaters live music venues restaurants, and hotels closed nationwide Q4 revenue grew to approximately $6 7 million from $6 2 million in 2019.
We believe Q1 revenues will passed $7 million and we continue to believe that 2021 revenues will past 30 million without taking into account any dolphin to point out initiatives, such as our recently announced NFC Division.
As exciting as our revenue growth as we feel even more proud about our improved balance sheet in 2020, even while continuing to pursue our growth and acquisition strategy, we improved our working capital deficit by over 80% from $15 6 million down debt.
$3 million.
As you all know force if you're pursuing an acquisition strategy you use cash so it works against your working capital, but ours improved by over 80%. We're very very proud of that fact, I'm quite frankly, if it weren't for banner see announcements this would be the.
The headline of our improved balance sheet is positioning us for future growth tremendously.
We believe we will Furthermore, we believe we will reach a working capital surplus shortly certainly within 2021.
That's our goal and Furthermore, both stockholders' equity and current assets doubled in value and our cash on hand more than tripled from 2019 to 2020.
And we believe that our financial statements differentiate us in the Microcap space.
To recap how many microcap companies can make the following statements.
First we generate real revenue.
And grew revenue in Q4 year over year during the pandemic.
We have more cash on our balance sheet than debt.
We expect to have a working capital surplus this year.
And lastly, we expect to remove our going concern.
This year.
Oh and by the way, we may be a microcap, but we were considered the best in the world at what we do which is the market pop culture, which is a great segue to dolphin one point out.
Dolphin one point it was the day to day work of our World class PR and marketing agencies.
<unk> been consistently recognized as the premier PR agencies in their fields period, and when you put the very best under one roof. The growth that comes from cross selling is exciting.
Now I recognize that many of the people listening to this call and shareholders of Dolphin in general are relatively new to our story. So let me quickly tell you more about our companies.
First company, we acquired was 42 west in 2017.
42, West as an entertainment PR powerhouse, there's simply no other way to describe them in the most recent power 50 list of the PR firms in this country from the New York Observer Forty-two West was ranked the most powerful PR firm in entertainment last year at the Oscars 42 US what's involved with 13 films that received 49 nominations and won nine Academy.
The awards overall.
And their night at the Emmys with somehow arguably stronger 40 to US was involved with 33 programs that received 145 nominations and won 43 Emmy Awards overall, including.
16 of the 23 winners during the televised portion.
That was incredible.
<unk> 42, West also has a celebrity division that includes names such as Tom cruise, Tom Hanks, Meryl Streep, Jason Statham and Megan these value among many many others.
And in January of this year, we acquired BHI, our leading entertainment consumer products video gaming and E Sports PR firm that has become a division of 42 west.
The acquisition of <unk> provides a tremendous gateway into the last remaining large vertical of entertainment for our Super group, the $160 billion video gaming and E sports market.
This transactions paid immediate dividends as we announced shortly after the acquisition that BHI sign Funko, our fellow NASDAQ company to promote their snap cease consumer product line marketing from goes entry into the toy category for.
42, Western BHI them also saw entitled Blevins, otherwise known as Ninja the most popular video game or in the world.
It's been a great first three months with BHI.
Also in the Dolphin family of shore fire media.
The best in our music PR business.
Maryland Liberty is a legend.
And over the past 30 years. She has built a tremendous business sure fire represents individual recording artist such as Bruce Springsteen and the Dave Matthews band.
Long riders publishers authors and various other individual artists and they also represent live events, such as Super Bowl Music Fest and summer Fest and many others in any given month short biopsy sure fire handles the PR for over 100 artists.
Ingles, an album drops and we believe they are the largest most diverse roster in the music the our business.
Sure fire consistently has tremendous nights at the Grammy Awards, including again this year when short buyers client roster earned 15 Grammy nominations across album of the year and multiple genre film and comedy categories.
The third leg of our PR firms still as the door.
We absolutely adore this company.
They are the leading culinary and hospitality PR firm in the world, representing celebrity chefs and food network stars such as Rachael Ray and Robert Irvine, as well as the Mega events in that industry, such as South Beach wine and Food Festival, The New York Wine and Food Festival in Windy City smoke out in Chicago.
Also represent many of the leading hotel brands, including 11 hotels in their hospitality portfolio that had been recognized by the distinguished kind of Nast traveler Twenty-twenty Reader's Choice Awards.
And in early 2019, the door lost the consumer products division that has grown tremendously and which represents.
A very large opportunity for us.
Complementing these three PR firms as viewpoint creative Creative agency that we feel makes the best promotional videos in the business.
Among many other creative assets their legacy is in television and past and present clients include HBO ESPN Showtime discovery networks, A&D and many more.
And we've now taken their expertise.
And they've created promotional videos for clients across our PR firms, including the consumer products division at the door.
And in August of last year of 2020, we ought to be social a leading influencer marketing firm out of Los Angeles, which was a highly strategic acquisition for US I know we've talked a lot about this on our Q2 earnings call last year.
Social both represents popular individual influencers under its talent management Division.
And also as a brand's services division, which specializes in both organic and paid influencer marketing campaigns.
The relations digital strategy and events.
<unk> and Influencer marketing go together like peanut butter and jelly. They are the twin pillars of earned media.
We believe the ability to offer influencer marketing campaigns targeted by every possible demographic, including location and interest is a tremendous advantage for us and dolphin one pointed out.
Simply put our PR firms can really cross sell be social influencer marketing expertise when designing their campaigns.
And that collaboration speaks to the thesis of Dolphin, one point up and to the benefit of bringing six best in class companies together under one roof as an entertainment marketing Super group.
Six companies means 30 different ways to cross sell.
When we were just one company, we obviously couldn't cross sell with ourselves and when we are two and three companies. We were building, but now we feel we have reached scale on the cross selling and it's showing with our revenue growth.
Revenue growth during a pandemic.
Again with no movies in theaters.
Music venues restaurants and hotels.
So now, let's discuss dolphin to point out.
The core investment thesis of Dolphin for all the new folks on this call and our new shareholders. The core investment thesis of Dolphin.
Is that the relationships and expertise of our world class marketers in the entertainment industry.
Can be monetized in a variety of ways far greater in a world of direct to consumer products and services.
So let me ask you a question to.
The question I, usually end every presentation I may get LD micro.
The other contracts.
If you had the worlds only collection.
Best in class Entertainment marketing companies and best in class.
What would you do.
Our answer to that question is that we would own some of what we are marketing.
Specifically, we will seek to own products and services, where our strength.
Direct to consumer marketing will most greatly increase the likelihood of our success.
Straightforward as that.
We give certain categories of products and services the best possible chance to succeed we.
We certainly believe that is true with entities.
We also believe that to be true with a wide variety of other consumer products.
We also believe that through with specific live events in the food space in the music space and in the esports space.
And we also believe that is true with content, whether it be feature films documentaries television series or podcasts.
Yes.
We are in an inflection point in the history of Dolphin.
If dolphin 1.0.
Is the.
Marketing of pop culture.
Then dolphin to point out is using pop culture to market.
We have now reached scale with dolphin, one point out with.
With scale being defined as the acquisition of the very best marketing agencies across every major vertical of entertainment film television music gaming esports culinary and hospitality.
We were specific about what we wanted.
In the Roadshows or 2017.
For we uplifted to NASDAQ those who have been with US. Since then though we've talked about these verticals for three years, we were specific about what we want it and who we wanted we.
We have only offered six letters of intent to companies along the way and we've made those exact same.
Ex acquisitions.
To use a sports analogy.
We have the players we want in our clubhouse, we are ready to play and we feel the game is only just beginning.
It took us three years to build that scale and dolphin one point, though.
And we will use that scale to maximum advantage for the rest of our lives and dolphin to point out.
So let's talk about dual dolphin to pointed out.
We've been waiting for this day.
Well first how do we think about it.
Well.
As many of you know who are on the call last week, we were in our CEO summit in Miami last week, we divide our opportunities.
Into four major categories of dolphin to point out.
Those four categories are the creation of consumer products by ourselves and with partners.
The creation of content also by ourselves and with partners.
The creation of our own live events.
And finally, the taking of ownership positions in other people's companies that create either consumer products content and live events in exchange for our developing and marketing them across all of the dolphin companies.
So those are our for categories consumer products content live events and equity.
Now we expect to announce.
Two major products or initiatives.
In each 2.0 category.
This year with.
With the exception of live events, which will start in 2022 due to COVID-19.
So that will be six 2.0 products or initiatives this year.
Two from consumer products.
Two from contents.
And two resulting in equity stakes in other companies.
We've announced our first which is <unk> the first of our two and the consumer products category we.
We expect to have five more this year.
The launch of the dolphin to point out dramatically expands the number of traditional catalysts, we expect to have in any given calendar year for.
Previously we made one to two acquisitions per year to build our scale and dolphin one pointed out.
We will continue to make acquisitions, when we identify skill sets or markets that will help us.
However, now.
We expect to add another six catalysts this year and eight catalysts in 2022 and going forward from our dolphin to point O initiatives.
Which begins with entities, which again fall under our consumer products initiatives for 2021.
That was obviously.
The major.
Explanation of dolphin to point out.
What we think we have in front of us.
We used last week's call to share some insights around the launch of our NFC Division.
Last month, we have tremendous excitement around our position in the market.
<unk> are a perfect representation of how our unique set of companies can increase the likelihood of success for this type of product.
Why.
Because let's look at what needs to happen to create Nfc's right.
First you need to identify and develop IP intellectual property right.
That is what Hollywood does.
So what I've done for 25 years, and we feel we are particularly well positioned to either acquire or partner for the very best IP.
I think thats beyond debate.
Second.
You need to produce the actual creative product.
We absolutely know how to do that and we have the viewpoints in house capabilities and the ability to manage all of our collective relationships to the very best creative artists animators graphic designers visual effects supervisors that Hollywood has to offer free.
<unk>, we can identify the best IP and we can create the coolest products and then third.
After posting the NFC for sale most crucially.
You have to be able to market and.
In other words entities are direct to consumer entertainment and sports collectibles that is what they are direct to consumer entertainment and sports collectibles. We feel we are the best in the world at direct to consumer Entertainment marketing.
We have 42 west B a.
The door shore fire and be social.
All leaders in their industries, and all with deep experience promoting entertainment based consumer products that is what we do therefore, we feel our unique expertise and relationships gives us.
Gibbs our Nf Ts.
And gives the NFC as we produce with our partners the very best chance to succeed.
And that is why NFC has made the cut to be one of our six dolphin to point O initiatives. This year and why we're so excited about them.
I think the world is excited about them on last week's call I mentioned the growth of the market and then <unk> I noted that $60 million in NMC sold in 2019 net $250 million amount of tea sold in 2020 and based on reports of sales from the first couple of.
Months of the year.
That it would be reasonable to assume that the market would grow to four or $5 billion in 2021 to many that seem difficult to believe.
Quite frankly, many people are still asking what is an NFC.
Well anyway, I'm here to say that I was wrong I don't believe that anymore I think that estimate of four to 5 billion in 2021 is.
To low <unk>.
Why because it was just reported by CNBC This week using non fungible dotcom data.
Over $2 billion in NFC sales occurred in the first quarter alone.
$2 billion.
And here's the best part that number does not include certain private marketplaces. The biggest of which is nba's top shops. It was reported that MBA top shot sold over $470 million of Ftes in the first quarter.
And for those on the call last week, you know that our entry into this space has been planned since the middle of February long before any of these numbers were public.
We believed in this space for one additional reason and that is the fact that on almost all major NFC exchanges today, you cannot buy an NFC with a credit card. We believe this growth will only accelerate it's hard to believe is that may be when credit cards are accepted.
On last week's call we asked the question.
The NFC market hit $500 billion by 2025.
Similar to how Netflix disrupted.
The film and TV business by digital delivery would be NFC market do the same.
For collectibles.
When we were assuming that this year would see $5 billion in NFC sales that would represent a 100 times growth of course now that it seems that empty sales will pass $10 billion for this year from $250 million last year.
$10 billion. This year, if Q1 saw two 5 billion, including MBA Topshop.
And then 500 billion would represent 50 times growth over the next four years, what could account for that and quite frankly, we think the answer is the acceptance of credit cards, because the vast majority of nmc's today can only be bought with a theory them. It's a single crypto currency. That's it almost every person let alone investor that I've talked to you since our announcement has called me.
After our announcement to start the E&C Division was not aware of that fact, they did not know that you couldnt buy in of T sport with credit cards.
I still have not read the importance of that fact, and any article I read on Ftes and here's the stark comparison, there were less than 150000 active crypto wallets in the NFC space in the United States. That's it that's for all forms of crypto currency not just for theorem less than 150000 crypto wallets the first.
Quarters sales were made by less than 75000 buyers obviously.
Obviously, that's less than 1% of the adult population in United States.
A crypto wallet.
By comparison, what percentage of American adults have credit cards.
Entire growth to date of the NFC marketplace doesn't account for 99 per cent of the buying public.
Of everyone. You know that is bought enough T. How many of them are under the age of 25, My guess would be not many if any at all and why is that important because thats a huge segment of the entertainment and sports collectibles market.
We believe <unk> are here to stay.
Digital delivery of Collectables, just had too many advantages from vastly lower cost of production elimination of inventory and shipping costs and then obviously global markets for every product.
We liked the NFC market, we love our position in it we have the relationships to produce really cool NFC product lines around both content and individuals for motion pictures from television from music from the culinary world from gaming and esports and from traditional.
Sports, which is where we've chosen to start.
With the partnership with Hall of Fame Resort Entertainment Company in these first days of the NFC marketplace.
Force memorabilia is strongest out of the gate.
Tip of the hat to the MBA and dapper labs for creating Mba's top shops, it's a beautiful product and they deserve the success, they're enjoying $470 million plus of revenue in their first full quarter in our first full quarter in the market is astounding.
We know that hall of Fame resort and Entertainment company is a leader at the crossroads of professional football and entertainment, which makes them a perfect first partner for Dolphin, New NFC Division Dolphins best in class Entertainment marketing companies and ability to design produce release and promote and Ftes will deliver tremendous value for.
This powerful partnership.
We like our first product coming out shortly with NFL legend, Tim Brown, Earl Campbell and dog Walker.
We like that this is only the tip of the iceberg for us.
It's the start of our partnership with Mike Crawford and his team at Hall of Fame.
The start of the various announcements, we anticipate having in the coming weeks about our choices of entry with entities. It's all of the various entertainment verticals I just mentioned.
And its the start because <unk> as a whole only represent the very tip of the iceberg for our opportunities within dolphin to point out our.
Our NFC Division was the first announcement of many we anticipate making this year.
Okay.
We've been waiting for this day for over three years, we feel we're now at our starting line dolphin to point out was here and we could not be more excited.
With that said.
I'll now turn it over to mirror itself.
Thank you Bill and good afternoon, everyone I will now discuss results for the year ended December 31 2020.
Revenue for the year ended December 31st 2020 was $24 1 million compared to $25 million from 2019 as discussed on our call last week, we ran certain marketing campaigns during the third and fourth quarter of 2020 totaling approximately $1 $5 million during.
The third quarter of 2020, we had reported approximately $900000 in growth revenues and a corresponding $900000 indirect cost expenses related to these campaigns.
Upon further review of our revenue recognition policy, we determined that the 900000 should have been recorded as a pass through expenses and should not have been recorded as direct cost expense or revenue.
As a result, we have restated our third quarter 2020 financial on our form 10-K can reflect the restatement.
<unk> did not affect our loss from operations net loss our loss per share.
Our condensed consolidated statement of operations.
On our debt.
<unk> consolidated balance sheet, our condensed consolidated statement of cash flow as reported as of September 32020 on our form 10-Q filed for the third quarter of 2020.
Overall operating expenses for the year 2020 were approximately $26 $6 million compared to $29 $1 million in 2019.
Direct costs for the year 2022.
$2 6 million compared to $5 million from 2019.
Selling general and administrative expenses for the year 2020 were $4 8 million compared to $3 $8 million from 2019.
Legal and professional fees were $1 2 million.
In 2020 compared to $1 $6 million in 2019.
Payroll costs for approximately $16 million in 2020, as compared to $16 $7 million from 2019.
Operating loss for the year ended December 31, 2020 up to $6 million included non cash items, depreciation and amortization of $2 million.
And an asset write off of $220000.
This compared to an operating loss of $4 1 million, which included non cash items from depreciation and amortization of $1 9 million for the same period in the prior year.
Net loss for the year ended December 31, 2020 was approximately $1 9 million or <unk> 35 cents per basic loss per share based on five 6 million weighted average shares.
And 58 cents diluted loss per share.
Based on six 4 million weighted average shares.
This compares to a net loss for the year ended December 31, 2019 of approximately $2 3 million.
Or 70 basic loss per share.
Three 3 million weighted average shares and $1 20 diluted loss per share based on for $3 million.
Weighted average shares outstanding.
We should note that during the year ended December 31st 2020, we recorded a beneficial conversion feature on the conversion of net payable.
And the amount of approximately $1 $3 million that is recorded in the caps and interest expense and debt amortization.
We also recorded net gains on changes in fair value of liabilities in the amount of approximately <unk> nine.
$9 million.
A gain on extinguishment of debt in the amount of $3 $3 million and a loss from the deconsolidation of the Max there'll be I E in the amount of $1 $5 million.
During the year ended December 31, 2019, we reported beneficial conversion.
Features related to notes payable.
Turning into common stock in the amount of $1 3 million that is recorded in the caption interest expense and debt amortization for.
For the year ended December 31st 2019, we also recorded net gains on changes in net fair value of liabilities in the amount of approximately.
$3 $3 million and a gain on the extinguishment of debt and the amount of approximately <unk> $7 million.
Cash and cash equivalents were $7 9 million as of December 31, 2020, compared to $2 2 million as of December 31, 2019. This does not include restricted cash of approximately $7 million in each of these years.
That concludes my financial remarks, I will now ask the operator to open the phone lines for Q&A.
Operator can you please poll for questions.
Thank you.
At this time, we'll be conducting a question and answer session. If he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your hankies before pressing the star keys, one moment, please while we.
Pull for questions.
Our first question is from Allen Klee of Maxim Group. Please proceed.
Yes, Hi, two quick accounting questions for the restatement.
Where does the the little under 900000, you reduce the revenue.
Where does it show up in the in the expenses and the second question is what was your share count at the end of the year.
It shows up.
The other direct costs, the expansions up and indirect costs.
Okay, so that will be reduced okay.
And then the share count at the end of the year.
Oh it was.
7 million shares.
And when will the 10-K file do you guesstimate, we're about to file it right now.
Oh, Okay very good.
<unk>.
And then.
For the five companies that you own during the fourth quarter would you be able to just.
Briefly touch on kind.
Kind of.
The key things in terms of.
How they performed in the fourth quarter and and the outlook.
Sure.
P J.
So the five before we bought vendor in the in January share well 42 West obviously.
And also touch on if thats helpful.
We are hopefully coming out of the pandemic.
What that outlook looks like for.
42 west.
Had a very strong year with the streaming services that really.
The capture excuse me, we captured tremendous amount of market share from the streaming services and that.
That'll be business, where we have continuing going forward obviously.
Movie theaters are opening up.
We just passed the 60% market theaters being opened in this country.
And as vaccinations rollout.
The.
Drop dates for the big summer movies or are beginning to stabilize we expect morial day Youll see it first a big studio films.
And it seems like that will hold.
Seven weeks from now we.
Moved.
Obviously, our films James Bond movies for the fall top gun moved from July to November, but that was mostly so Tom to do his world press toward that he does before every film that's extremely well received by theater owners worldwide, you really theres a harder working actor promoting as films I don't know who it is.
And.
But those dates we feel very comfortable will hold.
So when we come out of the summer season and back into independent film season.
Which 40 to us.
So we think the strongest.
As judged by all of the Academy Award nominations received in one over the years, we expect to have a healthy independent film business back again at the end of the summer.
I'd say the outlook is very strong.
Again, considering we haven't had a dime of revenue from films in theaters for a year.
But the streaming service businesses.
Has done a great job, helping us offset that and we'll continue that as we go forward.
Sure fire they were always the least impacted of our firms.
Maryland.
Fantastic job because most of music has promoted.
Singles' day albums without necessarily but touring obviously, we don't have any revenue from touring.
And the promotion of those but.
That I'm not as confident in that.
Coming back in the third quarter, I think that will be.
More fourth quarter.
But obviously the firms like live nation, and AEG are working hard to to Mount those tours again, especially with the bigger artist.
But.
It's doing quite well.
And we're back.
With short fire at pre pandemic revenues.
And beyond <unk>.
Even without the touring business.
The door, obviously as the company has been most impacted by Covid restaurants, and hotels were closed for much if not all.
Of last year and the restaurants still for many of them are just now beginning to think about reopening.
When that occurs and we feel we're seeing the <unk>.
Start of that which I wouldn't have been able to say, even two or three weeks ago.
Then the door.
We're really expand revenue because.
And that probably third quarter of this year, we expect certainly fourth quarter our debt.
Fighting with one and a half hands tied behind your back during the pandemic.
No restaurants.
Tells the consumer products division really carried us with them and.
Done.
Very.
Well, whether the pandemic very well and doing.
Growing.
Quarter over quarter the.
Viewpoint.
Also non.
<unk> impacted.
Barry.
Much given the pandemic growing revenue and.
Having a very strong start to this year.
<unk> social.
Walsh, our kit business.
Sure.
After we acquired them, we love that business.
We're expanding some of their services.
And by the fourth quarter of last year added social media management for brands as well so.
Of course, they join the family opening in August.
We didn't have a full year with would it be social.
Is that helpful. Alan I'm not sure.
That's great and then.
So.
Last year, you talked about the potential of.
Producing two movies and selling them in.
In 2021.
It's still something that you consider debt.
It seems like reasonable or has has that plan changed at all.
Well, we are excited to announce our two.
Our initiatives in the content category of Dolphin to point out.
Features are certainly a possibility.
B.
We and many of the other independent producers as I was saying last year, so waiting on scripted.
<unk> features.
For production insurance.
Two.
Be it widely available in the industry.
We do see that day coming and I expect it to be available by the end of the summer and if we can Mount the first and this year. We will certainly do so we think we'll be able to if not in the queue.
Q3, hopefully Q for.
And we have other content partnerships and initiatives.
We hope to be able to announce shortly.
Other than just features of it.
Okay do you use.
So the production.
To point out stuff is.
It's harder to figure out how to model. It today, obviously, it's old news and stuff do you see envision like.
Hmm.
Whats the past, where we can maybe try to try to try to put some numbers around some of this stuff.
Yeah sure.
Well, let's see.
We're sitting here on April 15th and we.
We will report our Q1 15.
And by then.
They have some.
And additional clarity or two in the NFC space, but I really think by the time the.
The announcements, we anticipate being able to make from late spring and summer we will start providing some.
Clarity and particulars around the other.
Uh huh.
Five initiatives for.
For the year.
We would expect to announce the majority of those before we're all back on our call August obtained from that would help us all model the upside of dolphin in the next 12 months.
By then too.
The partnerships within the NFC space are widely announced if if not all announced by then I would assume.
I imagine we will have as I said, another announcement or two on the NFC space before we all gather again may 15th.
So I think that'll give us some.
Greater ability to model the revenue often ftes.
Both.
And our partnership with Hall of Fame.
And some of the very exciting announcements.
Both Mike and I'll be making in <unk>.
In short order as well as.
Again, the other partnerships will have in the NFC space.
So.
I would think.
Obviously, I'm just not at Liberty to say, what those announcements will be on this call but in the next several weeks.
I believe you'll see some that'll give you a chance to start at least.
<unk> the placeholders on the modeling.
Alan the content is being lined up the.
Equity.
It's definitely being lined up and then of course, we'll have a second major initiative in consumer products this year as well.
Okay. Thank you.
I'm sort of backing into these numbers I'm not completely confident yet, but it looks like you are.
Sure.
That.
In the fourth quarter on a EBITDA basis.
You did well you were profitable.
And better than I expected and.
Could you talk about kind of maybe just.
From that perspective, maybe.
What was behind that and do you view that as being sustainable going forward.
Thank you Alan.
We feel we have very strong year, especially against any of our.
Expectations. This time last year I mean, it's hard to believe we're doing a call last year.
And I indicated no one knew where the pandemic was going to go we certainly knew how it impacted directly before that call in the previous two weeks all of our restaurant business all of our motion picture business right.
<unk> the.
Uh huh.
Truth was that I indicated I believe on that call that we would do our best to manage towards.
Cash breakeven, we believe we would've had.
A cash positive year last year, but for the pandemic and I'm very proud to say that on a cash basis at year end.
You back out the depreciation and amortization you back out the 220000, when we wrote off the assets that was on the balance sheet of 40 to us before we bought them.
That stock in a private company.
Then you'll see that I believe from.
Q2, Q3 and Q4.
We work in.
Just above cash breakeven, which is on an operating income basis.
When you factor in the losses, we took in Q1 last year. So.
That's very exciting for us and quite frankly.
I'm, hoping that as is well received.
I think it should be because to manage to that result.
Yes.
Was no easy feat for our company and were proud that.
There'll be able to say that.
With that said then.
Going forward.
Some of these dolphin to point out initiatives will take modest investments we have the cash on hand, obviously, we're excited about.
So its not a heavy capital requirement.
<unk> manage that investment in the first half of this year.
And in the first quarter.
There will be a little heavier than the second quarter, and then they'll be paying big dividends for us we hope to three two for going forward.
We think we have tremendous momentum and.
And as we reported Q4's revenue being above.
Pretty significantly above Q for the year before and we expect Q1 to grow from Q4, obviously.
I think that.
The estimates that were out there in the marketplace of $30 million of revenue plus.
From.
Dolphin, one point O I feel very confident about that.
<unk>.
Then dolphin to point only represents.
What we think is very potentially huge upside for us.
Exciting.
And Alan you know you cover many micro caps.
We feel this was a momentous day for US yes, we've always been pointing to the start of 2021 anybody who has been following us three years to give us three years, we'll build Super group.
And then we can start off from two point out but.
But I think we're way ahead on our balance sheet to where people thought we would be when we finished the acquisition strategy right or this phase of the acquisition strategy.
We're talking about a company that after six acquisitions.
As a working capital deficit of only $3 million this time last year.
In the midst of the acquisition strategy, we had a working capital adjusted of $15 $6 million, we went from $15 six down to three and 12 months.
That's <unk>.
Thanks.
That's us and separates us from the overwhelming majority.
Microcap companies that have no clear path.
To.
Our working capital surplus.
And.
And obviously.
We have more cash on the books from debt, which I don't think what percentage of micro caps can say that so.
We're excited about where we are from a balance sheet perspective and to answer your question about the growth from.
From 2020, I imagine what we can do when we have all of our businesses is actually fully operating.
Right yes.
Yeah, you definitely outperformed on profitability in the fourth quarter compared to what I was expecting.
So one one last question on.
B social I saw it two days ago on April 13th the company I see a worldwide, which does.
Influence marketing.
They put out an announcement that they said that day.
As of that day.
They already exceeded the total amount of managed services bookings that they had done for the entirety of the same quarter.
For the prior year, which makes me think that maybe that's a good data point for for your business.
How do you think about.
The outlook for beef social.
A b social that's such a bright future with us.
Yes.
I was trying to say in the prepared remarks.
Those of US who list and those who listen to the Q2 earnings call.
Influencer marketing and PR really do go hand in hand.
And.
Now think of it from the lens of dolphin to point out.
We're going to have our own.
Live events, let's just say one of them for food event in Memphis, Tennessee.
And it's a chili cook off well imagine if you could target.
Influencers food.
Food Influencers specifically.
Interest there and by location within 30 square miles.
A 30 mile radius of Memphis, Tennessee, what could you do to drive people.
Broad awareness and drive people to the event what could we do when we sell in Ftes.
Our our value hasn't been recognized yet in the NFC space, probably because it's so early right Alan it's hard to model, but you look at our competitors or other companies trying to launch into the NFC space without we have so many advantages not only do we have the direct relationships to the IP, we can partner.
With people like Hall of Fame resort and put out NFC is around.
The only individuals that ever won the Heisman Trophy winner.
Been inducted in the protocol for him, but imagine what our relationships are in movies, TV et cetera will now be social for that.
You imagine doing an influencer marketing campaign with Influencers, who have an interest in sports around the sports NFC for movies with a moving honesty or food around food Nfc's.
Gaming around gaming and Ftes.
We're marketing we're using the strength of a company like the social not just enhance our clients campaigns with the PR firms, but to enhance the sale of our own products.
So.
Highly highly strategic.
Yes for Dolphin, one point, though but for dolphin to point out.
B social is.
Not so secret secret weapon.
And.
I think I think the comment I made in August was the holidays came early this was the one.
Goal, we have for 2020, while we were finishing the acquisition phase of Dolphin was to buy the very first choice of an influencer marketing firm.
We really had two point now in mind as much as one point.
Great. Okay got it. Thank you so much congratulations.
Thank you Alan.
Ladies and gentlemen, we have reached the end of the question and answer session.
Like to turn the call back to below doubt for closing remarks.
Okay, well. Thank you everyone for joining I wanted at the end of today. This call did you can just give up.
Special Shout out to.
160, or so employees of dolphin, because they were kind enough to make a video for my birthday, which is today.
I saw just before starting this call and it was the coolest video ever.
And I'm very.
<unk>.
Other.
Net to journeys.
Hits on separate ways with original Ericsson I was very touched so if there are any.
Of our folks out there listening live for this call.
Very appreciative.
It was a perfect birthday present.
Thank you all for.
Joining today and and appreciate the interest in Dolphin and hopefully we'll have some exciting things to share with you in the coming in.
In the coming weeks.
Thank you everybody.
This concludes Tonight's conference you may disconnect your lines at this time. Thank you for your participation.