Access Integrated Technologies, Inc. Announces Fiscal 2009 First Quarter Results

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


    -- 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.


    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, . 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 . [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 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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