Wizard World, Inc. (OTCBB: WIZD) discusses financial results for the quarter ended June 30, 2013 today. CEO John Macaluso stated “I am very pleased to announce that Wizard World has begun generating positve cash flow from operations. This important milestone in our company’s history is a testament to our team working diliigently on behalf of our shareholders to both grow the company’s revenues and put us on the path to real profitability”
Convention revenue was $2,901,416 for the three months ended June 30, 2013, as compared to $1,860,253 for the comparable period ended June 30, 2012, an increase of $1,041,163 year over year or over 55%. The Company operated two events during the period ended June 30, 2013, as compared to two events during the comparable period ended June 30, 2012
Average revenue generated per event in the second quarter of 2013 was $1,450,708 as compared to $930,127 during 2012. This is the second full quarter in which revenue per event rose by more than 30% on year over year basis.
Income (loss) from operations for the three months ended June 30, 2013, was ($293,666) as compared to a loss of ($239,465) for the three months ended June 30, 2012. The loss for the quarter is primarily attributable to the Company operating an unprofitable New York City event during 2013. The Company did not operate a New York City event during 2012. First year events are often unprofitable as the company spends significantly more to build attendance through advertising and higher venue cost. Historically our shows that have one year or more of operating history become profitable within the first few years.
Net income (loss) attributable to common shareholder for three months ended June 30, 2013, was $(3,183,533) or loss per share of $(0.09), as compared to $(3,632,086) or loss per share of $(0.10), for the three months ended June 30, 2012. The per share amounts are calculated net of deemed dividends.
Net cash provided by (used in) operating activities for the six months ended June 30, 2013 and 2012, was $250,680 and $(5,966), respectively. The net income (loss) attributable to common shareholder for the six months ended June 30, 2013 and 2012, was $(1,923,244) and $(2,991,295), respectively. The Company’s cash provided by (used in) operations increased primarily due to operating profitable events.
Net cash obtained through all financing activities for the six months ended June 30, 2013, was $0, as compared to $1,316,764 for the six months ended June 30, 2012. The Company raised $1,550,000 through the sale and issuance of convertible preferred stock, less $233,236 in issuance costs for the six months ended June 30, 2012.
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.
In addition, we encourage our shareholders to view our full Quarterly Report as filed on Form 10-Q which can be found on www.sec.gov.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The actual results or outcomes of Wizard World, Inc. may differ materially from those anticipated. Although Wizard World, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Wizard World, Inc. can provide no assurance that any of the forward-looking statements contained in this letter will prove to be accurate.
In light of the significant uncertainties and risks inherent in the forward-looking statements included in this letter, such information should not be regarded as a representation by Wizard World, Inc. that its objectives or plans will be achieved. Included in these uncertainties and risks are, among other things, fluctuations in operating results, general economic conditions, uncertainty regarding the results of certain legal proceedings and competition. Forward-looking statements consist of statements other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as “may,” “intend,” “expect,” “will,” “anticipate,” “estimate” or “continue” or the negatives thereof or other variations thereon or comparable terminology. Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Wizard World, Inc.’s most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Wizard World, Inc. does not undertake an obligation to update publicly any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.