The Company continues to execute its four-pronged plan: advance co-ventures for recurring revenue, scale the ride business to reflect demand, focus our technology development on product innovation and revenue diversification and aggressively expand our parts and service business.
TORONTO, April 29, 2022 (GLOBE NEWSWIRE) — Dynamic Technologies Group Inc. (TSXV: DTG, OTC:ERILF) ( the “Company” and “our”) today reported its audited consolidated financial results for the quarter and year ended December 31, 2021. The consolidated financial statements and MD&A have been filed on SEDAR and can be viewed at sedar.com or at dynamictechgroup.com.
“We are continuing our drive towards a recurring revenue business model based on co-ventures,” said Guy Nelson, Executive Chairman and CEO. “The impact of the COVID-19 global pandemic on the theme park industry has brought into sharp focus the need to both diversify our revenue sources and significantly reduce our ride supply capacity in terms of both employees and manufacturing facilities. Our Dynamic Structures R&D and engineering unit is extending our market reach beyond theme parks and into high-demand industries such as carbon-capture, alternative energy, and under-sea modules. We are also well advanced in our strategy to re-capitalize the Company to take advantage of these co-venture opportunities and to enhance the Company’s working capital and expect to announce details in the coming weeks.”
Summary of 2021 Consolidated Annual Results
- Revenues decreased to $35.6 million in 2021, down 49% from 2020.
- EBITDA loss of $5.9 million in 2021 compared to an EBITDA gain of $3.5 million in 2020. The change was driven largely by reduced revenues and a much reduced level of government subsidy in 2021.
- Net loss in 2021 of $14.9 million versus a Net loss of $12.5 million in 2020.
- Cash generated in operating activities was $8.3 million in 2021 versus cash used in operating activities of $2.3 million in 2020.
- The $2.5 million of asset sales and the cash generated in operating activities allowed the company to reduce its funded debt and bank advances by $12.8 million in 2021.
- Cash on hand at December 31, 2021 was $1.3 million as compared to $5.5 million in 2020.
- Contract Backlog was $90.7 million at the end of 2021, down 20.4% from the end of 2020. Currently 73% of the backlog (4 contracts) are on hold because of client and/or pandemic caused delays.
|For the year and quarter ended December 31 2021|
|($ millions, except per-share amounts)||Fiscal
|Net loss from continuing operations||(14.1||)||(10.6||)||(2.7||)||(2.4||)|
Per Share Information (Basic & Diluted)
|Loss per share – continuing operations||(0.09||)||(0.06||)||(0.02||)||(0.01||)|
|Loss per share – all operations||(0.09||)||(0.07||)||(0.02||)||(0.01||)|
¹ Earnings (loss) before interest, tax, depreciation and amortization (EBITDA) is not defined by IFRS. The definition of EBITDA does not take into account the Company’s share of profit of an associate investment, gains and losses on the disposal of assets, fair value changes in foreign currency forward contracts and non-cash components of stock based compensation. While not IFRS measures, EBITDA is used by management, creditors, analysts, investors and other financial stakeholders to assess the Company’s performance and management from a financial and operational perspective. Readers are cautioned that EBITDA should not be considered to be more meaningful than loss before tax determined in accordance with IFRS.
The Company has been very active executing its four-pronged operational plan:
- the restructuring of the Ride Division (Dynamic Attractions) was largely implemented in 2020 and 2021 and is largely completed by the end of 2021. The Company has retained the ability to scale back up once ride procurement market demand improves, although we do not expect this to occur until 2023 and after.
- continue to accelerate the Company’s development plans for the co-venture business (Dynamic Entertainment), including the acquisition of a 50% interest in the SkyFly™: Soar America flying theater attraction located at the Island in Pigeon Forge, Tennessee;
- aggressively market our innovative and very talented engineering capability to diversify the Company’s revenue sources beyond the attractions industry and to continue to use its engineers knowhow to develop new media-based attraction ride systems for the meta-verse and large theme parks and miniaturize its product line for the smaller parks and tourist locations (Dynamic Structures);
- continue to aggressively market its parts and service division to its customers as they started the process of reactivating their theme and amusement parks (Dynamic Attractions);
The Company has been working aggressively to strengthen its balance sheet and has been working with potential strategic investors to actively implement a financing plan to improve our working capital, reduce our current debt and fund several co-ventures the Company is developing. These discussions are ongoing, and we expect to have a resolution during the second quarter of 2022. In the meantime, our senior lenders have been supportive, extending the principal repayment terms of their loan facilities when needed. Strategic investor interest is being driven by the Company’s hidden assets of; proprietary IP, technical and creative knowhow, backlog of co-venture prospects, proven reputation of creating and delivering innovative, iconic ride systems and the Company’s very substantial tax losses to shelter future profits.
Update on Co-ventures
The Company continues to be very bullish on its ability to penetrate the tourist location, entertainment market leveraging its world class attraction IP. It is the Company’s view that its co-venture strategy is well suited to capitalize on a post-pandemic world.
On December 31, 2021, the Company exercised its option to acquire a 50% share of SkyFly™: Soar America, the flying theatre attraction in The Island Theme Park in the Smoky Mountains of Tennessee. The transaction closed on January 31, 2022. SkyFly™ opened July 9, 2021, and was voted Best New Attraction of 2021 in the USA Today Readers’ Choice awards.
The Company’s pipeline of co-venture prospects is geographically broad and advancing, in-spite of travel restrictions. The Company’s co-venture offices in Toronto and Orlando have been able to cover North America and Europe/UK effectively and its offices in Singapore and Shanghai have allowed it to continue to develop prospects in Asia and South Asia. The Company has three senior executives in Asia and this is helping to continue to advance prospects in this key market.
Update on Financing
On April 12, 2022, the Company announced a private placement of USD $4 million. The first tranche of USD $1 million closed on April 20, 2022. The Company is well advanced on a more comprehensive re-financing package, with a combination of debt and equity that would be used to re-pay the current senior lenders and provide working capital and growth capital for the co-venture initiative. We expect to announce more details in the coming weeks.
About Dynamic Technologies Group Inc.
Dynamic is a world leader in the design engineering, production, and commissioning of iconic, media-based attractions and ride systems for the global theme park industry and entertainment destinations. It also applies these same engineering integration and problem solving skills for special projects in diversified industries such as alternative energy and large optical telescopes and enclosures. Dynamic also has commenced an initiative to leverage its world class flying theater products and attraction development capability on a co-venture ownership basis. Dynamic’s common shares are listed on the TSX Venture Exchange under the symbol DTG.
For more information about the Company, visit www.dynamictechgroup.com or contact:
|Guy Nelson||Allan Francis|
|Executive Chair & CEO||Vice President – Corporate Affairs and Administration|
|Phone: (416) 366-7977||Phone: (204) 589-9301|
|Email: email@example.com||Email: firstname.lastname@example.org|
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Dynamic’s business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, “booked”, ‘‘scheduled’’, “positions”, ‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’, “believes” or variations of such words and phrases or state that certain actions, events or results ‘‘may’’, “may be”, ‘‘could’’, “should”, ‘‘would’’, ‘‘might’’ or ‘‘will’’, ‘‘occur’’ or ‘‘be achieved’’. Such statements include statements with respect to (i) the Company’s ability to execute its co-venture plan, ride business restructuring, and R&D diversification plan, (ii) the Company’s ability to source the funding required to implement its co-venture plan and to correct its working capital deficiency, (iii) the Company’s ability to scale back up once ride procurement market demand improves; (iv) the expectation that ride procurement market demand will improve in 2023 and beyond; (v) the Company’s ability to implement a financing plan to improve our working capital, reduce our current debt and fund several co-ventures; and (vi) the Company’s belief that its co-venture strategy is well suited to capitalize on a post-pandemic world. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this news release assume, inter alia, that the conditions for completion of the funding required to implement its co-venture plan and to correct its working capital deficiency, including regulatory approval will be met. Although Dynamic believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of the Company. The forward-looking statements contained in this news release represent Dynamic’s expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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