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Access Integrated Technologies, Inc. Announces Fiscal 2008 Second Quarter Results
Nov 09, 2007 (08:11 AM EST)
MORRISTOWN, N.J., Nov. 9 /PRNewswire-FirstCall/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") reported a 95% increase in revenues, to a record $19.5 million for the fiscal 2008 second quarter ended September 30, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $6.9 million or $0.27 per basic and diluted share, and a net loss of $9.3 million or $0.37 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing and stock-based compensation aggregating $10.4 million or $0.41 per basic and diluted share.
Second Fiscal Quarter Highlights -- Revenues for the second quarter increased by 95%, to $19.5 million from $10 million and for the six months ended September 30th increased 142% to $37.6 million from $15.5 million in the comparable year ago periods respectively. These increases were driven largely by Virtual Print Fee ("VPF") revenues, delivery fees, software license fees for our Theatre Command Center(TM) software and contributions from our Advertising and Creative Services Division (ACS) and The Bigger Picture, our alternative content distribution division. -- The increases in Adjusted EBITDA(1), year-to-date to $13 million from $534 thousand and in the second quarter to $6.9 million from $752 thousand in the comparable year ago periods respectively, were primarily due to the increased revenues as described above, partially offset by increased operating and SG&A expenses resulting from the acquisitions of ACS and The Bigger Picture. -- Loss From Operations in the September 2007 quarter decreased to $1.3 million from a loss of $5.3 million in the year ago period. The decreased loss was due primarily to higher revenues partially offset by increased depreciation and additional amortization of intangible assets resulting from the acquisitions of ACS and The Bigger Picture. Non- cash charges included in loss from operations for the year aggregated $18.9 million. -- Gross Margin (revenue less direct operating expenses) continues to be over 60% in this second quarter. -- Adjusted EBITDA(1) margins improved from 8% in the prior year's second quarter, and from 34% in our recently completed first quarter, to 35% in this quarter. -- As of September 30, 2007, the Company had installed 3,259 digital cinema systems. -- Growth of the Company's satellite network to 170 sites in 40 states helped to drive 26% growth in second quarter delivery revenues versus the previous quarter despite digital screen count increase on average of 15.6% in the same period.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "the second quarter and most recent weeks have marked an inflection point for AccessIT. We've successfully completed our Phase One digital cinema deployment plan and are gearing up to provide another 10,000 screens to exhibitors in the coming three years. In addition to the expected ramp of revenues from our recently installed screens in our next two quarters, revenue opportunities in three of our four other divisions are also being realized and The Bigger Picture is gearing up to provide a consistent flow of content beginning in the last quarter of our Fiscal year."
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results at 1:00 p.m. EST on Friday, November 9, 2007. The conference can be accessed by dialing 913.981.4901, at least five minutes before the start of the call. No passcode is required. The conference call will also be webcast simultaneously and will be accessible via the web on AccessIT's Web site, www.accessitx.com . A replay of the call will be available after 4:00 p.m. eastern at 719.457.0820 or 888.203.1112, passcode 5884602. The replay will be accessible through Friday, November 16th.
Access Integrated Technologies, Inc. (AccessIT) is the global leader in providing integrated solutions for digital cinema. The company's ground- breaking digital cinema networked services along with its Library Management Server(TM) and Theatre Command Center(TM) have enabled theatres across the United States to play more than three and a half million digital 2-D and 3-D showings of Hollywood features to date. AccessIT's comprehensive vendor neutral solutions provide pre-show entertainment, feature movies and live and pre-recorded alternative content via satellite to expand box office sales and develop new ways to attract incremental revenues. Through its alternative content distribution division, The Bigger Picture, AccessIT offers channels of programming including Kidtoons, Faith Based, Music, High Octane Sports and Anime. Access Integrated Technologies(R) and AccessIT(TM) are trademarks of Access Integrated Technologies, Inc. For more information on AccessIT, visit www.accessitx.com . [AIXD-E]
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of AccessIT officials during presentations about AccessIT, along with AccessIT 's filings with the Securities and Exchange Commission, including AccessIT's registration statements, quarterly reports on Form 10-QSB and annual report on Form 10-KSB, are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects'', "anticipates'', "intends'', "plans'', "could", "might", "believes'', "seeks", "estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by AccessIT's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about AccessIT, its technology, economic and market factors and the industries in which AccessIT does business, among other things. These statements are not guarantees of future performance and AccessIT undertakes no specific obligation or intention to update these statements after the date of this release.
Contact: Suzanne Moore AccessIT 973.290.0080 email@example.com (1) Adjusted EBITDA is defined by the Company to be earnings before interest, taxes, depreciation and amortization, other income (expense), net, stock-based compensation and non-recurring items. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of its fundamental business activities. A reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles ("GAAP") net income is included in the table attached to this release. Adjusted EBITDA is a measure of cash flow typically used by many investors, but is not a measure of earnings as defined under GAAP, and may be defined differently by others. ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share data) (Unaudited) Three Months Ended September 30, 2006 2007 (Restated) Revenues $9,965 $19,466 Costs and expenses: Direct operating (exclusive of depreciation and amortization shown below) 5,194 6,984 Selling, general and administrative 3,922 5,479 Provision for doubtful accounts 110 184 Research and development 156 100 Stock-based compensation 2,779 112 Depreciation of property and equipment 2,923 6,805 Amortization of intangible assets 179 1,069 Total operating expenses 15,263 20,733 Loss from operations (5,298) (1,267) Interest income 135 405 Interest expense (849) (5,988) Non-cash interest expense (23) (1,095) Debt refinancing expense - (1,122) Other income (expense), net (61) (190) Net loss $(6,096) $(9,257) Net loss per common share - Basic and diluted $ (0.26) $(0.37) Weighted average number of common shares outstanding: Basic and diluted 23,613,396 25,338,550
Certain reclassifications of prior period data have been made to conform to
the current presentation. Access Integrated Technologies, Inc. Adjusted EBITDA (as defined) Reconciliation to GAAP Net Income (In thousands) (Unaudited) Three Months Ended September 30, 2006 2007 Net loss $(6,096) $(9,257) Add Back: Amortization of software development 169 166 Depreciation of property and equipment 2,923 6,805 Amortization of intangible assets 179 1,069 Interest income (135) (405) Interest expense 849 5,988 Non-cash interest expense 23 1,095 Debt refinancing expense - 1,122 Other (income) expense, net 61 190 Stock-based compensation 2,779 112 Adjusted EBITDA (as defined) $752 $6,885 ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share data) (Unaudited) Six Months Ended September 30, 2006 2007 (Restated) Revenues $15,541 $37,612 Costs and expenses: Direct operating (exclusive of depreciation and amortization shown below) 8,616 13,190 Selling, general and administrative 6,408 11,037 Provision for doubtful accounts 129 370 Research and development 179 323 Stock-based compensation 2,779 199 Depreciation of property and equipment 4,774 12,930 Amortization of intangible assets 371 2,139 Total operating expenses 23,256 40,188 Loss from operations (7,715) (2,576) Interest income 444 726 Interest expense (1,152) (10,646) Non-cash interest expense (46) (2,181) Debt refinancing expense - (1,122) Other income (expense), net (229) (301) Net loss $(8,698) $(16,100) Net loss per common share - Basic and diluted $ (0.37) $ (0.64) Weighted average number of common shares outstanding: Basic and diluted 23,288,537 25,050,081
Certain reclassifications of prior period data have been made to conform to
the current presentation. Access Integrated Technologies, Inc. Adjusted EBITDA (as defined) Reconciliation to GAAP Net Income (In thousands) (Unaudited) Six Months Ended September 30, 2006 2007 Net loss $(8,698) $ (16,100) Add Back: Amortization of software development 325 295 Depreciation of property and equipment 4,774 12,930 Amortization of intangible assets 371 2,139 Interest income (444) (726) Interest expense 1,152 10,646 Non-cash interest expense 46 2,181 Debt refinancing expense - 1,122 Other (income) expense, net 229 301 Stock-based compensation 2,779 199 Adjusted EBITDA (as defined) $534 $12,987 ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except for share data) (Unaudited) March 31, September 30, 2007 2007 ASSETS Current assets Cash and cash equivalents $29,376 $52,353 Accounts receivable, net 18,504 20,111 Unbilled revenue, current portion 2,324 5,718 Prepaid and other current assets 1,988 6,587 Notes receivable, current portion 101 167 Total current assets 52,293 84,936 Deposits on property and equipment 8,513 1,273 Property and equipment, net 197,452 248,509 Intangible assets, net 19,432 17,331 Capitalized software costs, net 2,840 3,081 Goodwill 13,249 14,420 Accounts receivable, net of current portion 248 192 Deferred costs 4,627 5,647 Notes receivable, net of current portion 1,227 1,400 Unbilled revenue, net of current portion 1,221 1,381 Security deposits 445 430 Restricted cash 180 180 Total assets $301,727 $378,780 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $28,931 $25,801 Current portion of notes payable 2,480 10,144 Current portion of customer security deposits 129 342 Current portion of capital leases 75 82 Current portion of deferred revenue 8,871 10,543 Total current liabilities 40,486 46,912 Notes payable, net of current portion 164,196 242,715 Customer security deposits, net of current portion 54 51 Deferred revenue, net of current portion 283 177 Capital leases, net of current portion 5,903 5,861 Total liabilities 210,922 295,716 Commitments and contingencies Stockholders' equity: Class A common stock, $0.001 par value per share; 40,000,000 shares authorized; 23,988,607 and 25,219,096 shares issued and 23,937,167 and 25,167,656 shares outstanding at March 31, 2007 and September 30, 2007, respectively 24 25 Class B common stock, $0.001 par value per share; 15,000,000 shares authorized; 763,811 shares issued and outstanding at March 31, 2007 and September 30, 2007 1 1 Additional paid-in capital 155,957 164,315 Treasury Stock, at cost; 51,440 Class A shares (172) (172) Accumulated deficit (65,005) (81,105) Total stockholders' equity 90,805 83,064 Total liabilities and stockholders' equity $301,727 $378,780
Certain reclassifications of prior period data have been made to conform to the current presentation.
CONTACT: Suzanne Moore of AccessIT, +1-973-290-0080 or firstname.lastname@example.org
Web site: http://www.accessitx.com/