Dynamic Technologies Group Reports First Quarter Results

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The Firm continues to execute its four-pronged plan: advance co-ventures to create recurring income, develop our components and repair enterprise, scale the journey enterprise to mirror demand, and focus our expertise growth on product innovation and income diversification

TORONTO, Could 27, 2022 (GLOBE NEWSWIRE) — Dynamic Applied sciences Group Inc. (TSXV: DTG, OTC:ERILF) ( the “Firm” and “our”) immediately reported its audited consolidated monetary outcomes for the quarter ended March 31, 2022. The consolidated monetary statements and MD&A have been filed on SEDAR and will be seen at www.sedar.com or at www.dynamictechgroup.com.

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“The acquisition of our 50% curiosity within the award profitable, Skyfly™- Soar America patented flying theatre attraction on the Island in Pigeon Forge, Tennessee was the spotlight of the primary quarter,” stated Man Nelson, Govt Chairman and CEO. “It demonstrates our technical and inventive experience and has already contributed free money distributions to the Firm, which we view validates our drive in the direction of a recurring income enterprise mannequin primarily based on co-ventures. There have been surprising delays in our re-financing efforts, arising from the shutdown of the Metropolis of Shanghai the place the lead strategic investor is predicated, however the lifting of that shutdown seems to be on the horizon, which ought to get our financing again on monitor. Within the meantime, our senior lender has prolonged the subsequent principal reimbursement from Could 31, 2022 till the sooner of June 30, 2022 or 10 days after the Shanghai shutdown is lifted. We recognize their ongoing assist and confidence.”

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Abstract of first quarter consolidated outcomes

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¹ Earnings (loss) earlier than curiosity, tax, depreciation and amortization (EBITDA) is just not outlined by IFRS. The definition of EBITDA doesn’t take into consideration the Firm’s share of revenue of an affiliate funding, positive aspects and losses on the disposal of property, honest worth modifications in overseas foreign money ahead contracts and non-cash parts of inventory primarily based compensation. Whereas not IFRS measures, EBITDA is utilized by administration, collectors, analysts, buyers and different monetary stakeholders to evaluate the Firm’s efficiency and administration from a monetary and operational perspective.   Readers are cautioned that EBITDA shouldn’t be thought of to be extra significant than loss earlier than tax decided in accordance with IFRS.

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The Firm continues to execute its four-pronged operational plan:

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Replace on Financing

One other accomplishment in the course of the quarter was the reimbursement of $4.3 million extra of our debt. We’ve got been in a position to scale back our debt stage by over $17 million in 2021 and thru to the top of March 31, 2022. Our refinancing initiative was transferring ahead however the pandemic as soon as once more affected our Firm as a result of the investor group we’ve been negotiating with are primarily based in China and the lead investor is predicated in Shanghai. Regardless of the delay brought on by Shanghai being locked down for over six weeks, it seems that Shanghai can be open by mid-June permitting folks to go away their residences, staff to return to work and the banks to renew their enterprise actions. Assuming the restrictions are lifted by mid-June we anticipate to switch our senior lender by the top of June.

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The objectives of our financing initiative haven’t modified, that are to enhance our working capital within the journey manufacturing division and supply fairness and mission debt for our co-venture division. We anticipate the financing initiative will scale back total curiosity expense making it rather more manageable going ahead and alter our working capital place from adverse to constructive in 2022.   Within the meantime, our senior lenders have been supportive, extending the principal reimbursement phrases of their mortgage amenities when wanted. Our strategic investor’s curiosity is being pushed by the Firm’s proprietary IP, possession of fifty% of SkyFly, backlog of co-venture prospects, technical and inventive knowhow, confirmed popularity of making and delivering modern, iconic journey methods and the Firm’s substantial tax losses to shelter future earnings.

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Modification to Senior Mortgage Settlement

The Firm has executed an modification to its mortgage settlement with its senior lender to increase the due date of the principal reimbursement within the quantity of USD $10.4 million from Could 31, 2022 to the sooner of (i) June 30, 2022, and (ii) 10 enterprise days after the date on which the COVID-19 restrictions imposed by the governmental authorities in Shanghai, China which are presently in impact are lifted that are stopping the strategic investor from initiating worldwide wire transfers.

Replace on Co-ventures

The Firm continues to be bullish on its capacity to penetrate the vacationer location, leisure market by leveraging its world class attraction IP. It’s the Firm’s view that its co-venture technique, being pursued by wholly owned subsidiary, Dynamic Leisure, is effectively suited to capitalize on the leisure alternatives in a post-pandemic world as pent-up demand and elevated buyer financial savings hunt down memorable visitor experiences. Visitor satisfaction and worth would be the key success elements for in style vacationer areas that select to enhance their expertise with our award profitable, world class, media-based points of interest.

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The Firm’s first co-venture, Sky Fly™ – Soar America, opened July 9, 2021 and has continued to get pleasure from superb critiques and glorious attendance on the gateway to the Smoky Mountains, one of the in style vacationer locations in America. The attraction itself was awarded the Greatest New Attraction for 2021 by USA Right now’s Readers’ Selection Awards. Replicating SkyFly’s success is the plan for Dynamic Leisure, our co-venture enterprise unit.

The Firm’s pipeline of co-venture prospects is geographically broad and is progressing, regardless of journey restrictions. Our co-venture workplaces in Toronto and Orlando have been in a position to cowl North America, UK, and Australia successfully and our workplace in Shanghai has allowed us to proceed to develop our prospects in Asia. We’ve got three senior executives in Asia, and that is serving to to proceed to advance our prospects on this space.

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Replace on Experience Enterprise

The Firm has continued to give attention to lowering and aligning our price construction in our journey division with the delayed tasks in our contract backlog and the slower strategy to awarding new journey contracts. The Firm has continued to scale back its price construction considerably all through 2021 and into the primary half of 2022 in response to the lowered backlog and the decrease stage of gross sales which are anticipated due to the virtually two years of theme park journey capital expenditure planning time that was misplaced due to the pandemic.

We’ve got continued to give attention to rising of our Experience division’s components and repair group and it continues to get stronger and contribute extra to the Firm’s backside line

About Dynamic Applied sciences Group Inc.

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Dynamic is a world chief within the design engineering, manufacturing, and commissioning of iconic, media-based points of interest and journey methods for the worldwide theme park trade and leisure locations. It additionally applies these identical engineering integration and drawback fixing abilities for particular tasks in diversified industries similar to different power and enormous optical telescopes and enclosures. Dynamic additionally has commenced an initiative to leverage its world class flying theater merchandise and attraction growth functionality on a co-venture possession foundation. Dynamic’s widespread shares are listed on the TSX Enterprise Alternate underneath the image DTG.

For extra details about the Firm, go to www.dynamictechgroup.com or contact:

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Reader Advisory
This information launch comprises forward-looking statements, inside the that means of relevant securities laws, regarding Dynamic’s enterprise and affairs. In sure circumstances, forward-looking statements will be recognized by means of phrases similar to ‘‘plans’’, ‘‘expects’’ or ‘‘doesn’t anticipate’’, ‘‘funds’’, “booked”, ‘‘scheduled’’, “positions”, ‘‘estimates’’, “forecasts’’, ‘‘intends’’, ‘‘anticipates’’, “believes” or variations of such phrases and phrases or state that sure actions, occasions or outcomes ‘‘might’’, “could also be”, ‘‘might’’, “ought to”, ‘‘would’’, ‘‘may’’ or ‘‘will’’, ‘‘happen’’ or ‘‘be achieved’’.   Such statements embrace statements with respect to (i) the Firm’s capacity to execute its co-venture plan, enlargement of its components and repair enterprise, journey enterprise restructuring, and R&D diversification plan, (ii) the Firm’s view that the money distributions from its curiosity in Skyfly™ – Soar America validates its recurring income mannequin primarily based on co-ventures; (iii) the Firm’s capacity to supply and shut the funding required to refinance its senior debt, implement its co-venture plan, right its working capital deficiency, and scale back its present debt; (iv) the expectation that the financing initiative will scale back the Firm’s total curiosity expense and alter the Firm’s working capital from adverse to constructive in 2022; (v) the Firm’s capacity to cut back up as soon as journey procurement market demand improves; (vi) the expectation that journey procurement market demand will enhance in 2023 and past; (vii) the Firm’s view that its co-venture technique is effectively suited to capitalize on a post-pandemic world; (viii) the Firm’s plan to duplicate the success with its funding in Sky Fly™ – Soar America; and (ix) the decrease stage of gross sales which are anticipated due to the virtually two years of theme park journey capital expenditure planning time that was misplaced due to the pandemic.   These statements contain identified and unknown dangers, uncertainties and different elements that will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking statements. The forward-looking statements on this information launch assume, inter alia, that the circumstances for completion of the funding required to implement its co-venture plan and to right its working capital deficiency, together with regulatory approval can be met.   Though Dynamic believes these statements to be cheap, no assurance will be provided that these expectations will show to be right and such forward-looking statements included on this information launch shouldn’t be unduly relied upon. Precise outcomes might differ materially from these anticipated in these forward-looking statements because of prevailing financial circumstances, and different elements, a lot of that are past the management of the Firm. The forward-looking statements contained on this information launch symbolize Dynamic’s expectations as of the date hereof, and are topic to alter after such date. The Firm disclaims any intention or obligation to replace or revise any forward-looking statements whether or not because of new info, future occasions or in any other case, besides as could also be required by relevant securities laws. Neither the TSX Enterprise Alternate nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this launch.