New York, NY, Los Angeles, CA, June 10, 2013 -- Wizard World, Inc. (OTCBB: WIZD) announced record financial results for the quarter ended March 31, 2013 today.
CEO John Macaluso noted that the plan the company put in place less than twelve months ago continues to show positive results and record improvements. “I am pleased to report that Wizard World continued its financial improvement with a record quarter that saw revenues more than triple from a year ago earlier. Our team did this with while providing positive earnings to our shareholders and delivering a fun and special experience to our customers.”
Q1 Financial Summary
Convention revenue was $1,793,476 for the three months ended March 31, 2013, as compared to $520,155 for the comparable period ended March 31, 2012, an increase of $1,273,321. The Company produced two events during the period ended March 31, 2013, as compared to one event during the comparable period ended March 31, 2012. Average revenue generated per event in 2013 was $896,737 as compared to $520,155 during 2012.
Gross profit percentage increased from a gross profit of 29% during the three months ended March 31, 2012, to a gross profit of 46% for the three months ended March 31, 2013. The increase in convention revenue is primarily attributable to running better advertised and marketed events while expanding our in convention offerings and continued cost control procedures.
Operating expenses for the three months ended March 31, 2013, was $690,507, as compared to $508,419 for the three months ended March 31, 2012. The $182,088 increase is primarily attributable to an increase in labor costs
Income (loss) from operations for the three months ended March 31, 2013, was $126,092 as compared to a loss of $355,024 for the three months ended March 31, 2012. The increase is primarily attributable to running more profitable events during the three months ended March 31, 2013 as compared to the three months ended March 31, 2012.
Other income (expense) for the three months ended March 31, 2013, was $1,048,765, as compared to $51,121for the three months ended March 31, 2012. The increase is primarily attributable to the gain on the fair value of the Company’s derivative liabilities.
Net income (loss) attributable to common shareholder for three months ended March 31, 2012, was $1,104,176 or income per share of $0.03, as compared to $(357,774) or loss per share of $(0.01), for the three months ended March 31, 2012. The per share amounts are calculated net of deemed dividends.
Net cash provided by (used in) operating activities for the three months ended March 31, 2013 and 2012, was $191,861 and $(221,606), respectively. The net income (loss) attributable to common shareholder for the three months ended March 31, 2013 and 2012 was $1,104,176 and $(357,774), respectively. The Company’s cash provided by (used in) operations increased primarily due to running profitable events.
The Company believes that our existing available cash, along with our cash flows from operations will enable the Company to meet the working capital requirements for at least 12 months. The estimated working capital requirement for the next 12 months is $2,300,000 with an estimated burn rate of $190,000 per month. The Company continues to explore potential expansion opportunities in the industry in order to boost sales while leveraging distribution systems to consolidate lower costs.
Statements in this press release relating to Wizard World, Inc.’s future plans, expectations, beliefs, intentions and prospects are "forward-looking statements" and are subject to material risks and uncertainties. When used in this press release, the words “will,” "future," "expect," "look forward to," similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Wizard World that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur. A detailed discussion of these factors and other risks that affect Wizard World’s business is contained in its SEC filings, including its most recent report on Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Jerry Milani, Public Relations, at (646) 380-2479. All information set forth in this press release is current as of June 10, 2013. Wizard World undertakes no duty to update any statement in light of new information or future events.