Dolphin Entertainment, Inc.

Q3 2021 Earnings Conference Call


spk_0: good afternoon ladies and gentlemen and welcome to the dolphin entertainment third quarter twenty twenty one earnings call that this time all participants have been placed on alison only mode and we will open the floor for your questions and comments after the presentation and is now my pleasure to turn the for over to your host james thurber narrow cert the floors yours
spk_1: thank you and once again walking to dolphin entertainment's third quarter two thousand twenty one earnings call with me on the color below doubt chief executive officer and mirth in a grainy chief financial officer i'd like to been begin to call by reading the safe harbor state this statement is made pursuant to the safe harbor statement for forward looking statements described in the private securities litigation reform act and ninety ninety five or statements made on this call with the exception of historical facts may be considered forward looking statements with him sex and twenty seven a obscurity that ignited thirty three and section twenty one he of the screen exchange act of night and thirty four although the company believe that expectations and assumptions reflected in his for looking statements are reasonable that makes no assurances that such expectations or prince have been correct actual results may differ materially from those expressed or implied in the form of the statements due to various risks and uncertainties for discussion of such risk factors and uncertainties which could cause actual reason also differ from those expressed or implied in the forward looking statements they see risk factors detailed and company's annual report on for ten k contained in subsequent filed reports on form take you as well as and other reports of the copy files from time to time but the securities and exchange commission a for looking statements included in the senate or are made only as the database called you do not undertake any obligation to update or supplement any phone book statements turf like subsequent knowledge events or circumstances
spk_2: now i would like to turn the color good a below that chief executive officer of dolphin entertainment bill please proceed thanks james and hi everyone good afternoon and thank you for joining us today as always will start with the review that some financial an operating highlights qualify for financial review and then opened it up for at you and it so from a financial highlights perspective at the momentum from earth half the year carried through to the third quarter looking at the piano we have said another new record with nine point four million in revenue up seventy percent year over year with an absolutely fantastic forty one percent year over year organic growth from existing subsidiaries please note that this follows cute to would set a record of a point six million in revenues which while with you one which itself how to set a record of seven point two million and rose next looking at our operating income which is the metric by which we gave ourselves it's positive for the second consecutive quarter even when including the non cash expenses of depreciation and amortization to reiterate positive operating income from a like or capita same a company even including the dna expense from our acquisitions what's also nice is that we are either deposited eight or nine months a year even while investing in our to point out an issue it okay let's turn to the balance sheet we have a record cash position of twelve point seven million dollars which is an increase of sixty percent compared to december thirty first twenty twenty also we now have seen evidently more cash than out that combine including long term debt furthermore let's look at are working capital after reaching a peak working capital dusted at the m twenty nineteen of just under sixteen million as we borrowed to pursue our acquisition strategy to build our supergroup are now reporting a working capital surplus standing at four point five million which is more than tripled are working capital surplus as of june thirtieth and of course since we're a cat positive company we expect the surplus will only continue to grow does our balance sheet today less than two years removed from our peak working capital deficit
spk_1: can only be fairly described as possibly or biggest strength when compared to or micro cap years i like to reiterate the reason this is so important to us as because that working capital surplus gives us the muscle on our balance sheet for the next set of acquisitions and two point oh investments
spk_2: for acquisitions on the same terms of any the six we've already done for example we will be able to pay the cash component for the of them from cash currently on our balance sheet furthermore we have not needed to borrow money or do a drawdown on rs three to fund the development or entity business a short this perfectly illustrates the better mousetrap we feel we've built with often a growing task positive core business and dolphin one point out that is capable of self funding the majority of investments in development costs of the big tent or upside opportunities of dolphin two point now it's moved to some operational updates on her supergroup the companies are making those great numbers happen
spk_1: let's start with short fire media dolphins industry leading music the are from which is having an absolutely terrific year
spk_2: sure fire help the concert in about business relaunched by publicizing forty tours year to date from artist and all genres the nation's largest festival milwaukee summer fast and the reopening of nationally recognized venues including new york's legendary blue note and the award winning brooklyn bowl nashville sure fire client angelica job was named one of times one hundred most influential people carole king and todd rundgren worked out into the rock roll hall of fame and athlete chris bosh was inducted into the and be a basement holiday short fires corporate clients including north america's leading livestream shopping platform network checked focus digital fan engagement company mandolin and reservations technology platform light of one best in class awards recently and fast company forbes at age add week and rolling stone thanks to short fires up it's okay how about forty two us dolphins entertainment the our power powerhouse lol speaking of september that jammies month and forty two was extraordinary range of work for programs in individuals
spk_1: put their clients and position to receive a total might pin emmy nominations just a highlight a couple the company's work on the amazon series the boys let's multiple nominations including for outstanding drama series also as a result of for it to us campaign efforts the acclaimed use a documentary billy i wish the world's a little blurry
spk_2: earned a total of four nominations turning to be a johnny a division of forty two us with particular focus on entertainment consumer products and gaming bh i was engaged by fandom the world's largest and platform and number one source for in depth information on pop culture entertainment in gaming to execute comprehensive publicity efforts for increase brand awareness an overall business growth for contacts fandom as an entertainment and gaming juggernaut greeting more than three hundred fifty million
spk_1: and unique visitors each month cross two hundred fifty thousand fan power communities with thirty million pages of content to get thirty million page views per year moving along to be social dolphins influence or marjorie group be social launched it's showroom concept posing a today summer show room in west hollywood participating brands included bondi fans i buy direct made the label and peter lilley among many others with t creators in the beauty
spk_2: fashion and lifestyle spaces in attendance those who follow our company closely know that i'm a big fan of this initiative now good as tell influencer showrooms work while the model the showroom concepts pretty simple brands pay a fee to be included in the showroom and work with the social on selecting products that are carefully tailored for the influencers attending from their be social handles all event blah option in addition spearheading influence or outreach the social users around and house roster talent along with their teams longstanding imports relationships
spk_1: drive traffic to the event
spk_2: influences are gifted products from each participating brand during the event and then be social monitors all social coverage secured from the event for full month sending his brand a tailored report outlining all social placements care for their products as a result of the of it totally that helps provide context where the showroom concept we intend to scale and twenty twenty two
spk_1: next up be point trade of dolphins respected creative relations agency and video production boutique
spk_2: viewpoint joined forces with the leary firefighters foundation a crate distribute content crook commemorating nine eleven and the twenty years since the attacks more than attributed heroes who fell that day the content recognized legacy firefighters continue to struggle with fallout and how the of the lives of root systems and processes based on events of nine eleven
spk_1: raleigh's very proud and willing to highlight this type of work that viewpoint does and last but not least let's talk about the door or leading commentary hospitality and lifestyle pr for
spk_2: the integrated marketing division at the door doing great work for their consumer products clients and the commentary and hospitality teams are fresh are promoting the new york city wanted to test will last month
spk_1: but truth be told us a the door for last in order to allow them to serve as a bridge and a dolphin to point out since charlie low as an entire team or plane and essential part in both of the two point oh nurses were going thought about today
spk_2: to let's go let's talk about often to point out as a reminder for anyone knew on the call or to the dolphin story we define the work of our supergroup hundred often one point out as the very best at marketing pop culture and we define what we called off and to point out as using pop culture to market assets that we'll what type of assets do we want to aren't easy ones where our expertise in marketing gives us the greatest likelihood of success we want to own what we know we can market better than anybody else that's why last month we announced a major daughter to point out that should have the acquisition of an ownership stake and midnight theater a contemporary variety theater and restaurant that will anchor the four and a half billion dollar development firm brookfield known as manhattan west to cross ninth avenue for moynahan station to the east and across tenth avenue from hudson yards to the west and only a short walk from the javits center new york's preeminent to mention facility we feel the midnight deters being built in the very best location in manhattan okay let's talk about the burning the midnight theater features three distinct experiences for the guess the theater itself a separate pan asian restaurant called hidden leaf and a ground level cap it let's take the variety theater first it's an intimate luxury state of the art hundred sixty feet theater which is the name implies will have a rotating schedule of a wide variety of performances across music comedy broadway and magic shows i'm in a theater also has built in livestream capabilities allowing for events inside the theater to expand beyond into people's homes and corporate offices a theater will be available at host livestream podcast comedy specials music events corporate keynote events and more didn't leave his the modern pan asian restaurant concept on the second floor the midnight the inner space led by renowned restaurants or george cohen maybe know several josh is brooklyn hot spots including the italian mainstay lily as of the most in demand restaurant small of york city for the midnight theater
spk_1: didn't lead will feature is seventy five the dining room twenty feet private dining room and a forty seep lounge bar area
spk_2: hidden leaf will be open for lunch and dinner and will incorporate world class food with interactive elements such as tables i prep wind consignments and memberships and the bars where where you'll be able to find james carbonara every tuesday wednesday thursday friday night or dolphin the midnight theaters most exciting live by new concept we have seen in a very long time it will be a truly modern variety theater paired with fantastic restaurant which is a combination it is missing in the cultural landscape today
spk_1: is in the final stages of construction and we expect the opened by the end of the first quarter of next year
spk_2: dolphin will manage all aspects of publicity and marketing for the any of those restaurant and theater as well as facilitate talent and commercial relationships with them both the entertainment and commentary and street as we look to own assets were in our specific marketing expertise will give us a greater likelihood of success
spk_1: it is hard to imagine anything more in our wheelhouse in a world class restaurant for the door to publicize paired with a state of the are graded theater that will program musical performances broadway cabarets comedy actor magic shows all of which short bar and for it was currently promote
spk_2: and of course will be short abby social bring a steady stream of influencers as our guess and posts about the great time they had afterwards playing dolphins marketing strength as what dolphin two point knows all about which is also why we lost our and of to business and twenty twenty one i know many of you solar big announcement this morning before we talk about that specifically i'd like to take us back through the two key milestones in the past three months deposition does to make today possible first or partnership with fdx us which we announced in august for any that need reminding objects was a leading crypto currency exchange and wallet provider with over one million active users never ten billion dollars of average trading volume per day with access that the axis platform and wallet services we can l aggressively pursue our ambition to develop a program global energy collections targeting all of dolphins verticals including the sports film television music gaming is boards common area lifestyle and charity and street with the technical development well under way we then turned our attention to the creative side of the coin and brought in award winning visual designer anthony francisco few weeks ago and the newly created post of creative director to develop and execute numerous and of the series involving original and existing ip
spk_1: anthony came goes from marvel studios are he was the senior visual develop an artist responsible for designing iconic characters across the marvel cinematic universe such as baby groot personal favorite of money that all and loki and adore him a logic female warriors and black it
spk_2: in short we feel we won the lottery for and of t business of securing of the axis or technical partner and by bring in anthony francisco's or creatively and together that is what enabled us this morning to announced the launch of creature chronicles exiled aliens dolphins first generative and a fee collection which will feature ten thousand unique custom crafted avatars of an ancient race of aliens designed by anthony francisco each exiled alien avatar will fall into a specific the alien hierarchy a sign trades and randomly generated the collection is available for viewing today right now a creature cup chronicles dot iowa and it's slated for minting in december now in ten creature chronicle to be a moped i see them and of t of that after the release of exiled aliens the community and fan experience as will continue to evolve and grow while the story line develops a new and of t drops are released during upcoming seasons dolphin one sure that acts out aliens community members will enjoy a wide range of benefits including limited edition and to his master classes with anthony francisco and friends creative competitions with incredible prizes
spk_1: private events
spk_2: and future surprises all leveraging dolphins world class relationships across the creative community furthermore holders maxalt exiled aliens avatars will receive priority status for the purchase of future seasons a creature trials we are pricing each backs out alien a two hundred dollars which includes both the end of the avatar and inclusion into the ongoing treat or chronicles community with all the benefits such as mentioned
spk_1: users can purchase exiled aliens directly on site you're a simple registration process which stab oceans a proprietary mtx us wallet for each user
spk_2: the users fts us while it allows for payments to be made via credit and debit cards as well as a wide variety of crypto currencies including soul eater and bitcoin the entities will be meant and stored on the salon a block chain a leading proof of stake watching those recognized as faster more efficient lower cost than more environmentally friendly than it's proof of work competitors notably at the area to their it is all of us a dolphin are really excited as they come on we can share our very first and of the collection designed to watch our first hundred we are obviously playing to the strength of anthony and he has delivered the graphic art within the exiled elite collections absolutely breathtaking and no offense to the aliens but we humbly there's a better visual artists are shared universe and anthony we think this collection will appeal to the existing and of the enthusiasts also serving as an entry point to those you're curious about entities and wanted if they're telling was something really cool from a world class designer and quite frankly we're excited to program for the community which allows to play your strengths and offer benefits and access to the world's of entertainment a pop culture that are simply unique and the marketplace today
spk_1: thunder midnight our next out aliens and one conversation
spk_2: were extremely pleased with these first two dolphin two point oh initiatives and hopefully today's conversation shared some context to why they were chosen to lead dolphin to this new arab ownership of assets that we are marketing
spk_1: any dolphin two point no opportunity is judged by it's ability in success to serve as a major catalyst for our company we feel these are two certainly have tremendous growth potential with midnight theaters possibility to expand and other cities and with our plan to launch of t collections cross all the industry's a dolphin companies currently market
spk_2: by the time we jump on earnings call for ten k we would hope that midnight theater open and everyone on this call scheduling their first visit and one or two more and up t collections launched and community activities are all of them well underway
spk_1: and we're not stopping we have more two point oh initiatives in the final stages of closing that we anticipate announcing the or the end of the year
spk_2: or dolphin flywheel is turning and momentum it's helping us to gain speed
spk_1: we feel that our marketing companies are the very best in their respective industries like frankly i think that's almost impossible to argue and there's no shortage of attractive partners and opportunities for us the to point out pipeline a strong for and f t and non and of the opportunities a like and we will pursue those first that we believe will create the most shareholder value in closing i would like to remind everyone that these two point oh investments are on top of a growing one point out us that has led to wrecker revenues for three quarters in a row including seventy percent year over year revenue growth you're in the third quarter consecutive quarters a positive positive operating income even after the noncash expenses appreciation and recession from our acquisitions and a record level of cash on hand over twelve million dollars in fact which is approximately three million more than all remaining debt combined including the long term debt we are profitable and growing with a beautiful balance sheet and now we're launching dolphin to point out in earnest
spk_3: these are the days that we've been raining out since we up with them at deck almost four years ago and began assembling supergrid thank you for joining us to that and on our turn it over to get it thank you bell and good afternoon everyone i will now discussed results for the quarter ended september thirty twenty twenty one revenue for the quarter ended september thirty twenty twenty one with approximately nine point four million dollars compared to approximately five point five million dollars in the quarter ended september thirty twenty twenty overall operating expenses for the third quarter of twenty twenty one or approximately nine point four million dollars compared to approximately six million dollars and a quarter and and the third quarter of twenty twenty operating expenses are composed of direct card hey well and benefit selling general and administrative costs depreciation and amortization and legal and professional feet direct hard for the third quarter of twenty twenty one were approximately nine hundred ninety two thousand dollars compared to approximately five hundred and seventy five thousand dollars in the same period of the prior year hey will cause were approximately five point nine million dollars in the third quarter of twenty twenty one i've compared to approximately three point six million dollars in the third quarter of twenty twenty selling general and administrative expenses for the third quarter of twenty twenty one were approximately one point five million dollars compared to approximately nine hundred and fifty thousand dollars in the third quarter of twenty twenty legal and professional fees were approximately four hundred and ninety nine thousand dollars in that their quarter of twenty twenty one compared to approximately three hundred and seventy three thousand in the third quarter twenty twenty operating income for the quarter ended september thirty twenty twenty one of approximately thirty eight thousand dollars included noncash item from depreciation and amortization of approximately four hundred and seventy five thousand dollars as compared to an operating lot of approximately four hundred and ninety three thousand dollars which included noncash item from depreciation and amortization of approximately five hundred and fourteen thousand dollars for the same period in the prior year net income for the quarter ended september thirty twenty twenty one with approximately one hundred and forty two thousand dollars compared to a net loss of approximately one hundred and thirty eight thousand dollars for the quarter ended september thirty twenty twenty for the three months ended september thirty twenty twenty one we had basic and fully diluted earnings per share of two cents per share based on seven million seven hundred and forty thousand eighty five weighted average shares outstanding for the three months ended september thirty twenty twenty we had basic lost per share of to send per share based on six million six hundred and seventy six thousand four hundred and five weighted average shared and fully diluted lot for share of for them or share based on six million nine hundred and twelve thousand and eleven weighted average shares outstanding cash and cash equivalents or twelve point seven
spk_0: million dollars as of september thirty twenty twenty one compared to seven point nine million dollars as of december thirty first twenty twenty not including restricted cache of approximately five hundred and forty two thousand dollars and seven hundred and fourteen thousand dollars and each period respectively
spk_4: that includes my financial remarks i will now as the operator to open the phone line for que any operator can reapply for for questions
spk_0: absolutely right you ladies and gentlemen the for his now open for questions if you have any questions or comments please press star one on your touchstone phone pressing start to remove you from the queue should your question be answered and last new opposing your question please pick up the handset it was listening on speakerphone to ride optimum sound quality
spk_5: please hold while we pull for questions okay first question is coming from alan freed from maxim group your lines live oh good afternoon congratulations on strong quarter i i i i wanted to start off with the end of t that really seems like you
spk_2: you put a business together now have that that this couldn't have an impact next next year passed hi
spk_6: how do you think about kind of his her way to think about like how how the opportunities here thank you
spk_1: her for die young guys really kind words yet we're thrilled with the progress from him from que tu on the numbers on to get stronger on entities yeah it's an exciting business i think we we really wanted this announcement before we did our earnings call we'll talk about and let people go check out i'm ends up them and that there today to see erm
spk_2: what what we've been building with the on the technological side without the axe to allows to to sell directly on our own sites on you know each branded sight of you will and erbil take credit cards as well as every form of crypto not just good you know the single form on the block chain that were using we're thrilled that it salon a poem with a salon has so many advantages and as speed and environmentally friendly two big ones for us both work we're excited for today in terms of scaling
spk_1: you can see that this type of product is very exciting for us the idea of a community based and of seasons them i'm sell ten thousand memberships if you will and get a whole bunch of cool stuff on and we think that plays to our strength we can program the cool stuff part if you're interested in
spk_2: animation graphic design who better and somebody like an any francisco to to do master classes with to program around imagine if we did social screen with any of the movie the neocons worked on and off to but i soon what he did for them from them the story decisions imagine sweepstakes comprises a result and you know all expense paid trip to comicon what were we have teams of people at every summer
spk_1: you can imagine we go to other verticals whether it's music movies television sports what we can do were already at the grammys the emmys the oscars the superbowl
spk_2: i think we think of be on a t business as community based on and i think if you talk to people on the inside i'm talking the block james the competitive marketplace is like cetera
spk_1: how long pure art for art's sake
spk_2: will last as an open question but the few everyone agrees with the future of in appease is in utility
spk_1: at the end of t allows you to do something or receive something and i think that's exactly why we built what we've built and where we just quite frankly feel we have tremendous advantages and entertainment related and a t community we have access two and can program better than anybody and so that's what we're excited to roll out to the market and along the way by the way our arch gonna look really really cool cause we'd have anthony and so
spk_5: that's that's all we're launching today and and then the question after this initial launch will be the frequency and in the him and the speed that we can get the other verticals up and running
spk_2: birds as we get into the first half next year all the major verticals we would have wanted we will have one to have launched
spk_1: we're we're in enough for the long haul but we're excited to start you to the verticals that we already have expertise and
spk_2: is it reasonable to think that that the and have t product ship should be a a high margin product term to the i mean it seems that way to make that to could you explain it
spk_1: sure and if i could you know
spk_2: those are trying to say in our numbers is really is illustrated of will work we hope is considered a better mouse trap by the market on a real the optionality and a huge catalyst in and iffy is right i i would argue that and appease the dolphin represent the potential upside or more have many of the highest return
spk_7: investment out there from biotech or wherever else if they work well we feel our catalysis as good as anybody elses
spk_2: but were profitable along the way we've been building this technology in our ability to offer that product to market i'm an have any the deposited in the second and third quarter so
spk_1: therefore that a pretty much tell you what the margin can be on you know obviously people that are very steep numerous calls laypeople people see the quick math ten thousand avatars a two allergy to the two million dollar product and you're you're starting a community it's and so that means you can engage with our community every week
spk_2: a daily hit the had our early on social media but the and and as we know this product with designed to be in a van most i see an event see even have more drops more contests and sweepstakes and and that's what allows you to to build and sustain this community that will help you to drop or so you might have another two billion dollar product in a for six months from now an eccentric cetera so it it scales very quickly
spk_1: and and then of course once we have multiple verticals going imagine a product in music one in film one in sports one and charity one and cullen airy one in gaming in of right now work that that the sex and you start cross selling with each other so you cross pollinate your your communities and of course you're gonna more than one community and inside each article on a music itself you know have one music community you'll have multiple so for different types of music right so it's an exciting world for us and we needed
spk_8: we needed the robustness
spk_1: of i just coined the term not sure other fcx and their wallet to allow for both the acceptance a credit cards
spk_2: the speed
spk_9: the strength of being able to build on the block chain for those that volume of of offering globally
spk_2: so some of our programs including anthony's around appeal to an international audience very much the aliens no no national boundaries
spk_5: so on i've been exciting a and exciting day and i think it it opens a glimpse to those are interesting dolphin for our and of t capabilities
spk_1: to really get a sense of what we what we can accomplish and just to confirm that i understand that and have t market right you have the potential is a true that you have the potential the get recurring revenue if you're the creator of an and as t because every time there's a secondary sale kicking can you get saddam up a piece of that yeah thank you inside and go back to previous gotcha answer in three parts but the new question that on yeah it's a bit of sorry the sorry for myself i met at the very high margin business because
spk_2: i especially xl dailies is as as an internal dolphin developed property can we own hundred percent of it and
spk_1: it's exciting for us to launch with that and a show our creative chops a why we took the time to build an entire story line around it there's a there's a saga hear that that fans are gonna want to be a part of in it and imagine not receiving issue number one at one of the classic dc or marvel comics right yeah if you're a collector your own what op episode on an exciting for us as i mean by
spk_2: peter and of t drops but secondly you know yes we we have recurring potential perjury revenue and couple was one it or the future dropped to the same community
spk_1: we haven't decided on the number of episodes of exiled aliens but whatever number it might be
spk_5: ill as were refining that now yeah those are that's that's revenue you can go to the same community and and or give them though added value along the way and secondly each an empty that we sell if it resells in the open market because new people to be part community or certain of these entities and be very rare and valuable from moment number one fan yes as they resell dolphin keep seven and a half percent of the revenue in perpetuity across all failed thank you as a sizable and look at some a year dolphin one point out this insist that they should all be benefiting from op's post dumb pandemic car recovery and i was wondering if you could find our that give us a sense of kind of what inning we are in the recovery for somebody is i i know for example like live nation
spk_1: a on their third quarter call i think they said that there ah that there's some their tickets for major festivals were selling out an overall sales were up ten percent versus two thousand and nineteen which is pretty amazing so i'm i'm just curious for yourself for yourselves how you thinking about where where you are in the recovery and the potential just just of in some of the
spk_2: there is just getting back to atlanta where you weren't terry added growth has been accomplished without
spk_1: a full recovery week we've had some recovery which is great it's only gonna it's continuing to build momentum but near the the two big areas motion pictures of started come back in theaters which is great i'm obviously we're james bond
spk_2: an earlier might be rather have them or it gets mother's coming up but it's still not where it was it will we expect the motion picture business will be and hope that it will be where it was by second quarter of next year and it's growing up until that point out one it's still out there that hasn't recovered yet or is the restaurant business
spk_1: when there's there's sign of shoot coming up from out of the ground
spk_2: trickling in but that's going to be a nice recovery play force and twenty twenty two i don't know if it's first quarter of it's gonna take till the spring berta that that a meaningful impact our numbers the or the disc revenue growth been accomplished without that business being that
spk_1: and as and and by the way that's really true our sub see i really included that line yes were of seventy percent year over year that's forty one percent organic growth from the existing thought
spk_5: you know that's tremendous growth and we have more to go as we get both a recovery play but then also as long time fans of the stock know yeah we of that companies are getting stronger stronger cross selling with each other have more more joint projects
spk_2: the old joke i made when we at forty two left alone in the group three years ago was you can't process with yourself but now i've yet to six companies and you know this this dolphin one point know is only going to continue to grow because we can cross or and or and recover so it's typically consummate have gone from seven point something that a point something the nine point something and successive quarter of record revenue so that gotta say something somebody and of he social is it's kind of fascinating how i can kind of touch every time i'm pat how do you think of our kind of how that expands next year well it's funny that allen because yeah it am in those who remember from the queue to twenty twenty member the job we made them was at holiday the holidays came early would be social join the group because every one of our market leading pr firms wanted a sister company that was great it in the marketing of her dog
spk_1: in one point out that's the field i'm not gonna under emphasize in a adding be social to the group of what it's meant but for dolphin few pointers to talk about touching everything is i highlighted a meme midnight theater yep they can use be social but for the restaurant the theater
spk_2: influence or marketing campaigns are marketing wanna one today for any restaurant opening as the door
spk_5: tom or hotel opening on but then also
spk_2: within a piece i mean how do you get the word out and online about a new
spk_1: offering and i think the fact that you know a strong influence or margin campaign as we go forward go to twenty twenty two were certainly looking for
spk_2: engaging be social on a come on a consistent basis to help with these watches because you know they bring a lot of the word of mouth and a lot of the cool factor to it so be social so very important strategic part of our company and it couldn't be nicer people are animals cocktail of that with them last thursday it in in los angeles and yeah
spk_1: our work we feel very lucky that the be social since added off the kremlin
spk_2: that's great i'm in terms of deny theater will will there be a point next year where we can get a sense of ah what the contribution today i know it's too early now but yeah i think salads with you know as we get the opening we have a lot of metrics were that we're we're very confident and the in in an investment we think it's gonna do very well and it has a lot of room for growth i get to on a second but lots of metrics i time we speak on the cake all because you know up in a with a theater yet advance ticket sales
spk_1: what will no pre opening numbers will probably know a post opening numbers love a sense
spk_2: of of how does and and i by good or house doing i think the you know that aspect of the variety theaters really cool and i think it may had made the advantages of that may be missed about a casual investor
spk_1: you know a true brought in a a classic would call it broadway theater
spk_2: rides entirely on whichever shows and the theater xavier the richard rodgers and you got hamilton you're feeling great but if you don't you know that's at riskier the it's an all or nothing proposition for variety of theater you have a variety of acts and you have a variety of different audiences that you can bring in because of those acts and something like an intimate hundred sixty seat theater that the lot of seats eat you know to fill that theater and you don't need a villa to be profitable about to to to sell tickets to their it and you're not it's not a heavy left a variety theater gives you a broad broad audience to go after their something literally for everyone over short period of time the challenge of variety theaters he say well why does everybody to a there there's a shortage of them because you eat there's to challenges yet the on a program at yeah build a market all those different well that's where in a one plus one who league was a eleven
spk_1: you what what do we have the ability to do we have the ability to market all those different acts we already do
spk_2: from a wide variety of eucalyptus or far as the biggest and most expansive music pr berman the world that the types of ads that short bar has in the roster they have every genre of music it's not just pop it's rock it's jazz it's are and be it's classic it's everyday and many of those actually played mean i dare say get you know a double when a both marketing and helping the program and so
spk_1: as i mentioned on that in a prepared remarks you know whether comedy whether it's broadly cabarets whether it's magic we already promote a one of our pr agencies all you already promotes those individual types of act so we have that expertise and if you can market it then then then you've eliminated was usually the challenge and you're left with what's usually the positive and or and of course every one of those accident or new audiences to the restaurant and new audiences he can market to in the future and you get all that data of what programs well in a jazz does it work and does it work on tuesdays thursdays saturday's like cetera east and he gets smarter smarter is a with each passing mud sayed it's exciting and then the course for the upside
spk_2: he had this great than you and is gorgeous location i mean for those who are familiar with men have less that live in new york to should really check it out
spk_5: i mean it's it's it's brand new keyboard half billion dollar
spk_2: the city block right but but there's no reason why and success you can't think that concept other cities and and then the scaling of those economics is just gorgeous you know whether los angeles whether to london whether it's national whether it's miami the minutes when we talk about catalyst new york alone would be a catalyst to accompany are size he starts scaling it's the whole different ballgame so that that's why midnight theaters was extremely attractive to it came my last question has find a somewhat financial pat how do you feel about your expense structure now i'm staffing and then whatever tech spending on relative to your revenue growth do you think that there's operate leverage at this point in the business model
spk_1: i think that we we read that
spk_2: preparing for the day right fairly were close to both that things needed to
spk_5: i'm really would be able to expand the other t business summit of but most you want to cut back on past
spk_0: this one collection into a series of collections or when it had one or two more people at their on a honor
spk_10: in that division but
spk_2: bulk of what we needed we have and house now so as exciting for us and tear original question on the entity business
spk_1: it not only i march a business and success it's the highest margin business so we have so erm it's it's a
spk_2: but i would hope will be a meaningful contributor and twenty twenty two to me that's great thank you so much
spk_1: sure
spk_11: and alec ten the for back to below doubt ceo of dolphin entertainment for closing remarks
spk_2: oh man
spk_1: i was so shows and get more questions as got ah well thank everybody and
spk_0: she that last point on on allen's question i i should also say let's also i saw we managed ourselves to the

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