2008-08-07 07:30:00
Access Integrated Technologies, Inc. Announces Fiscal 2009 First Quarter Results
- Revenue Growth and Adjusted EBITDA Margin Increase Continues, Driven by
Virtual Print Fees and Satellite Delivery Business -
MORRISTOWN, N.J., Aug. 7 /EMWNews/ -- Access Integrated
Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a
13% increase in revenues, to $20.6 million for the fiscal 2009 first
quarter ended June 30, 2008, versus the year-ago period. The Company posted
an Adjusted EBITDA(1) (defined below) of $10.2 million or $0.38 per share,
an improvement from both the fiscal 2008 first quarter of $6.1 million and
the fiscal 2008 March quarter of $8.9 million. Net loss of $4.3 million or
$0.16 per share was also an improvement as compared to the year-ago quarter
of $6.8 million, or $0.28 per share respectively. The net loss includes
non-cash expenses for depreciation, amortization of intangible assets,
non-cash interest, stock-based expenses and stock-based compensation
aggregating $11.7 million or $0.44 per share.
First Fiscal Quarter Highlights
-- Revenues for the fiscal 2009 first quarter increased by 13%, to
$20.6 million from $18.1 million in the comparable year ago period. This
increase was driven largely by a 33% gain in the media services segment,
including Virtual Print Fees ("VPFs") and record levels of media delivery
fees in our satellite unit offset by an 18% decrease in revenues from our
content and entertainment segment. As compared to the last fiscal quarter,
revenues were down slightly from $21.9 million due to a reduction of
in-theatre advertising revenue and seasonality which resulted in a slight
decline in VPF revenue, offset by an increase in the satellite delivery
business.
-- Income from Operations in the first quarter improved to $0.7
million, from a loss of $1.3 million in the comparable year ago period and
a loss of $2.4 million in the fiscal 2008 March quarter. The improvement in
loss from operations as compared to last quarter is primarily the result of
a $1.6 million impairment of intangible assets charge last quarter. Lower
direct operating expenses and SG&A were also factors in this improvement.
Year-over-year, the shift to income from operations was due primarily to
higher revenues and decreased direct operating and SG&A expenses, partially
offset by increased depreciation.
-- Gross Profit Margin (revenue less direct operating expenses) was
more than 70% in this first quarter, an improvement over last fiscal year's
overall 67%.
-- Adjusted EBITDA(1) margins improved to 49% in the June 2008 quarter
from 34% in the comparable year ago period, and from 41% in the fiscal 2008
March quarter.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "The growing
financial success in our Media Services Group, specifically the Digital
Cinema deployment, transport and software operating units, highlights that
we are already capitalizing on the digital cinema future even before Phase
2 begins. There is tremendous opportunity to provide services to
distributors and exhibitors alike in the digital cinema era, and AccessIT
is the only company with proven comprehensive and integrated solutions. We
are excited at the prospects for growth and improvement at AccessIT to take
full advantage of this opportunity."
(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. Pursuant to the
requirements of Regulation G, the Company has provided a reconciliation in
the tables attached to this release of Adjusted EBITDA to U.S. GAAP net
income (loss). The Company calculated and communicated Adjusted EBITDA in
the tables because the Company's management believes it is of importance to
investors and lenders by providing additional information with respect to
the performance of its fundamental business activities. The Company's
calculation of Adjusted EBITDA may or may not be consistent with the
calculation of this measure by other companies in the same industry.
Investors should not view Adjusted EBITDA as an alternative to the U.S.
GAAP operating measure of net income (loss). In addition, Adjusted EBITDA
does not take into account changes in certain assets and liabilities as
well as interest and income taxes that can affect cash flows. Management
does not intend the presentation of these non- GAAP measures to be
considered in isolation or as a substitute for results prepared in
accordance with U.S. GAAP. These non-GAAP measures should be read only in
conjunction with the Company's consolidated financial statements prepared
in accordance with U.S. GAAP.
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results
at 10:30 a.m. EDT on Thursday, August 7, 2008. The conference can be
accessed by dialing 719.325.4908, 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,
http://www.accessitx.com . A replay of the call will be available after 1:30 p.m.
eastern at 719.457.0820 or 888.203.1112, passcode 3868943. The replay will
be accessible through Thursday, August 14th.
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(R) and Theatre Command Center(R) software have enabled
theatres across the United States to play more than eight million digital
showings of Hollywood features to date. AccessIT's 24/7 satellite
operations delivers feature movies, alternative content advertising, and
pre-show entertainment through its UniqueScreen Media subsidiary, including
live 2-D and 3-D events through its CineLive(R) satellite network,
expanding box office sales and developing new ways to attract incremental
revenues. Through its alternative content distribution unit, The Bigger
Picture, AccessIT offers channels of programming including Opera, Kidtoons,
Faith Based, Concerts, Sports and Anime. Access Integrated Technologies(R)
and AccessIT(TM) are trademarks of Access Integrated Technologies, Inc. For
more information on AccessIT, visit http://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 protected]
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Three Months Ended
June 30,
2007 2008
Revenues $18,146 $20,570
Costs and expenses:
Direct operating (exclusive of depreciation and
amortization shown below) 6,206 5,797
Selling, general and administrative 5,558 4,833
Provision for doubtful accounts 186 28
Research and development 223 7
Stock-based compensation 87 158
Depreciation of property and equipment 6,125 8,135
Amortization of intangible assets 1,070 947
Total operating expenses 19,455 19,905
(Loss) income from operations (1,309) 665
Interest income 321 124
Interest expense (5,744) (7,176)
Other income (expense), net (111) (150)
Change in fair value of interest rate swap - 2,252
Net loss $(6,843) $(4,285)
Net loss per Class A and B common share - Basic
and diluted $(0.28) $(0.16)
Weighted average number of Class A and B common
shares outstanding:
Basic and diluted 24,758,441 26,865,147
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
June 30,
2007 2008
Net loss $(6,843) $(4,285)
Add Back:
Amortization of software development 129 194
Depreciation of property and equipment 6,125 8,135
Amortization of intangible assets 1,070 947
Interest income (321) (124)
Interest expense 5,744 7,176
Other (income) expense, net 111 150
Change in fair value of interest rate swap - (2,252)
Stock-based expenses - 74
Stock-based compensation 87 158
Adjusted EBITDA (as defined) $6,102 $10,173
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
(Unaudited)
March 31, June 30,
2008 2008
ASSETS
Current assets
Cash and cash equivalents $29,655 $25,003
Accounts receivable, net 21,494 17,259
Unbilled revenue, current portion 6,393 5,652
Deferred costs 3,859 3,809
Prepaid and other current assets 1,316 1,834
Notes receivable, current portion 158 261
Total current assets 62,875 53,818
Property and equipment, net 269,031 261,930
Intangible assets, net 13,592 12,645
Capitalized software costs, net 2,777 2,794
Goodwill 14,549 14,549
Accounts receivable, net of current portion 299 299
Deferred costs 6,595 5,915
Notes receivable, net of current portion 1,220 1,079
Unbilled revenue, net of current portion 2,075 1,967
Security deposits 408 425
Restricted cash 255 255
Fair value of interest rate swap - 2,252
Total assets $373,676 $357,928
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $25,213 $12,354
Current portion of notes payable 16,998 22,159
Current portion of deferred revenue 6,204 5,924
Current portion of customer security deposits 333 354
Current portion of capital leases 89 119
Total current liabilities 48,837 40,910
Notes payable, net of current portion 250,689 244,940
Capital leases, net of current portion 5,814 5,851
Deferred revenue, net of current portion 283 283
Customer security deposits, net of current
portion 46 25
Total liabilities 305,669 292,009
Commitments and contingencies
Stockholders' equity:
Class A common stock, $0.001 par value per
share; 40,000,000 shares authorized;
26,143,612 and 26,849,257 issued and
26,092,172 and 26,797,817 shares outstanding
at March 31, 2008 and June 30, 2008,
respectively 26 27
Class B common stock, $0.001 par value per
share; 15,000,000 shares authorized;
733,811 shares issued and outstanding at
March 31, 2008 and June 30, 2008, respectively 1 1
Additional paid-in capital 168,844 171,040
Treasury Stock, at cost; 51,440 Class A shares (172) (172)
Accumulated deficit (100,692) (104,977)
Total stockholders' equity 68,007 65,919
Total liabilities and stockholders' equity $373,676 $357,928
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