DDMG Beats Revenue and Earnings Estimates, Reporting 1st Quarter Revenues of $31.1 Million and EPS Loss of $0.37 per …
PORT ST. LUCIE, Fla.--(BUSINESS WIRE)--
Digital Domain Media Group (NYSE: DDMG - News) today reported revenue of $31.1 million and a GAAP net loss attributable to common stockholders of $14.8 million, or $0.37 per basic share, for the first quarter ended March 31, 2012. For clarification purposes, the companys results exceeded consensus analyst estimates of $26.5 million in revenues and a consensus expected GAAP net loss of $17.1 million, or $0.40 per basic share.
We are continuing to build our company beyond the traditional work-for-hire VFX business, said John Textor, Chairman and CEO of Digital Domain Media Group. In the first quarter, we made significant progress as we opened Tradition Studios, our original-content family feature animation studio, began classroom instruction at the Digital Domain Institute and started filming on our first feature film co-production, the highly anticipated and globally recognized Enders Game. More recently, the first product of our Virtual Performance business, a virtual Tupac Shakur who performed at the Coachella Music festival, launched an entirely new form of entertainment.
Business developments since the beginning of the first quarter include:
With a long list of transformational accomplishments in the first quarter, Textor continued, we are pleased to remain on plan as we grow our business. As we continue to deliver on the promises that we have made to both taxpayers and shareholders, we look forward to our continued migration to a content ownership business model and the expected near-term impact of exciting new forms of entertainment, such as our virtual performance business.
Business Model and Profitability Outlook
As we report our financial results, with a combination of established business segments and new expansion initiatives, we feel it is important to provide a reminder of the logic of our business model and the metrics that are critical to our goal of achieving a level of positive operating cash flow in 2012, Textor commented. As we leverage our visual effects work-for-hire business as a platform to engage in other, more lucrative business opportunities, we have also used substantial grant funding from government relationships to mitigate the risk of our business expansion and associated launch expenses.
The following unaudited table presents an analysis of operations for the three months ended March 31, 2012 and 2011, revealing the impact of new business launch expenses, such as unutilized labor in the Visual Effects segment, the deferred margin impact of Enders Game in the Visual Effects Co-Production segment, and heavy Florida overhead in the new business Corporate segment.
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DDMG Beats Revenue and Earnings Estimates, Reporting 1st Quarter Revenues of $31.1 Million and EPS Loss of $0.37 per ...