Goal: national circuit featuring 100 theatres and 1,000 screens in 75/top 100 DMAs
Acquiring cash flow positive theatres and expanding profitability on digital platform
Alternative programming increase theater attendance during non-peak hours
Digital Cinema Destinations Corp., engages in theatre exhibition operations in the United States. The Company is involved in transforming its movie theatres into interactive entertainment centers. It provides live sports events, concerts, conferences, operas, videogames, auctions, fashion shows and motion pictures.
We believe that DCIN will reach 300 screens by year-end FY14, and our model projects that the Company would produce yearly run rate adjusted EBITDA of $9.1 million at 300 screens. We apply this EBITDA estimate to an EV/EBITDA multiple of 10.2, only slightly above the median of our peer group (8.5x) despite what we believe are significantly superior growth prospects, to derive a target price of $10.00.