Access Integrated Technologies, Inc. Announces Fiscal 2008 Third Quarter Results
Access Integrated Technologies, Inc. Announces Fiscal 2008 Third Quarter Results
- Continued Revenue Growth and Increase in Adjusted EBITDA Margin -
MORRISTOWN, N.J., Feb. 8 /PRNewswire-FirstCall/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (NASDAQ:AIXD) reported a 51% increase in revenues, to a record $21.5 million for the fiscal 2008 third quarter ended December 31, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $8.4 million or $0.33 per share, and a net loss of $8.4 million or $0.32 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing and stock-based compensation aggregating $11.1 million or $0.43 per share.
Third Fiscal Quarter Highlights -- Revenues for the third quarter increased by 51%, to $21.5 million from $14.2 million, and for the nine months ended December 31st by 99% to $59.1 million from $29.8 million in the comparable year ago periods respectively. These increases were driven largely by gains in the media services segment, including Virtual Print Fees ("VPF"). -- The increases in Adjusted EBITDA(1), year-to-date to $21.4 million from $2.6 million and in the third quarter to $8.4 million from $2.1 million in the comparable year ago periods respectively, were primarily due to the increased revenues, partially offset by increased operating and SG&A expenses resulting from the acquisitions of AccessIT Advertising and Creative Services ("ACS") in July 2006 and The Bigger Picture in January 2007. -- Loss from Operations in the December 2007 quarter decreased to $1.0 million from a loss of $3.2 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 $21.8 million. -- Gross Profit Margin (revenue less direct operating expenses) continues to be over 60% in this each of the three quarters for fiscal 2008. -- Adjusted EBITDA(1) margins improved from 15% in the prior year's third quarter, and from 35% in our recently completed second quarter, to 39% in this quarter. -- Growth of the Company's satellite network to 240 sites in 40 states helped to drive 15 percent growth in third quarter delivery revenues versus the previous quarter. (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. Bud Mayo, Chief Executive Officer of AccessIT, stated, "The third quarter marks the completion of our Phase One deployment, a significant achievement unparalleled by any other company in the world. The platform that we have created with our first set of screens -- a total of more than 3,700 -- also provides our other divisions with revenue opportunities. Significant announcements like The Bigger Picture's signing of a multi-year agreement for content from the San Francisco Opera and the Software division's agreement with Doremi Labs Inc. to provide our Theatre Command Center(TM) software and Library Management Server(TM) to customers internationally are both indications of our progress in other aspects of our business. While we continue to progress toward long-term agreements with the major movie studios for our planned Phase Two digital cinema deployment, we remain focused on growing the businesses we expect to be the strength of this company long after the country's movie screens have been converted to digital cinema."
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EST on Friday, February 8, 2008. The conference can be accessed by dialing 913-312-0865, 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 5363043. The replay will be accessible through Friday, February 15th.
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 almost five 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 Opera, 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-Q 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.
ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share data) (Unaudited) Three Months Ended December 31, 2006 2007 (Restated) Revenues $14,224 $21,480 Costs and expenses: Direct operating (exclusive of depreciation and amortization shown below) 6,583 6,608 Selling, general and administrative 5,554 6,090 Provision for doubtful accounts 192 321 Research and development 95 180 Stock-based compensation 63 162 Depreciation of property and equipment 4,701 8,020 Amortization of intangible assets 191 1,071 Total operating expenses 17,379 22,452 Loss from operations (3,155) (972) Interest income 183 448 Interest expense (3,271) (7,703) Other income (expense), net 4 (125) Net loss $(6,239) $(8,352) Net loss per common share - basic and diluted $ (0.26) $ (0.32) Weighted average number of common shares outstanding: Basic and diluted 23,932,736 25,931,467 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 December 31, 2006 2007 (Restated) Net loss $(6,239) $(8,352) Add Back: Amortization of software development 273 153 Depreciation of property and equipment 4,701 8,020 Amortization of intangible assets 191 1,071 Interest income (183) (448) Interest expense 3,271 7,703 Other (income) expense, net (4) 125 Stock-based compensation 63 162 Adjusted EBITDA (as defined) $2,073 $8,434 ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share data) (Unaudited) Nine Months Ended December 31, 2006 2007 (Restated) Revenues $ 29,765 $ 59,092 Costs and expenses: Direct operating (exclusive of depreciation and amortization shown below) 15,199 19,798 Selling, general and administrative 11,962 17,127 Provision for doubtful accounts 321 691 Research and development 274 503 Stock-based compensation 2,842 361 Depreciation of property and equipment 9,475 20,950 Amortization of intangible assets 563 3,210 Total operating expenses 40,636 62,640 Loss from operations (10,871) (3,548) Interest income 627 1,174 Interest expense (4,469) (20,530) Debt refinancing expense - (1,122) Other income (expense), net (224) (426) Net loss $(14,937) $(24,452) Net loss per common share - basic and diluted $ (0.64) $ (0.96) Weighted average number of common shares outstanding: Basic and diluted 23,462,793 25,344,944 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) Nine Months Ended December 31, 2006 2007 (Restated) Net loss $(14,937) $(24,452) Add Back: Amortization of software development 598 448 Depreciation of property and equipment 9,475 20,950 Amortization of intangible assets 563 3,210 Interest income (627) (1,174) Interest expense 4,469 20,530 Debt refinancing expense - 1,122 Other (income) expense, net 224 426 Stock-based compensation 2,842 361 Adjusted EBITDA (as defined) $ 2,607 $ 21,421 ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except for share data) (Unaudited) March 31, December 31, 2007 2007 ASSETS Current assets Cash and cash equivalents $ 29,376 $ 35,776 Accounts receivable, net 18,504 25,966 Unbilled revenue, current portion 2,324 6,635 Deferred costs 2,318 3,832 Prepaid and other current assets 993 1,651 Notes receivable, current portion 101 183 Total current assets 53,616 74,043 Deposits on property and equipment 8,513 5,163 Property and equipment, net 197,452 275,631 Intangible assets, net 19,432 16,259 Capitalized software costs, net 2,840 3,095 Goodwill 13,249 14,420 Accounts receivable, net of current portion 248 192 Deferred costs 3,304 7,340 Notes receivable, net of current portion 1,227 1,387 Unbilled revenue, net of current portion 1,221 1,367 Security deposits 445 400 Restricted cash 180 255 Total assets $301,727 $399,552 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 28,931 $ 39,580 Current portion of notes payable 2,480 15,527 Current portion of deferred revenue 8,871 9,208 Current portion of customer security deposits 129 346 Current portion of capital leases 75 86 Total current liabilities 40,486 64,747 Notes payable, net of current portion 164,196 252,326 Capital leases, net of current portion 5,903 5,838 Deferred revenue, net of current portion 283 177 Customer security deposits, net of current portion 54 47 Total liabilities 210,922 323,135 Commitments and contingencies Stockholders' equity: Class A common stock, $0.001 par value per share; 40,000,000 shares authorized; 23,988,607 and 25,595,040 issued and 23,937,167 and 25,543,600 shares outstanding at March 31, 2007 and December 31, 2007, respectively 24 26 Class B common stock, $0.001 par value per share; 15,000,000 shares authorized; 763,811 and 733,811 shares issued and outstanding at March 31, 2007 and December 31, 2007, respectively 1 1 Additional paid-in capital 155,957 166,019 Treasury Stock, at cost; 51,440 Class A shares (172) (172) Accumulated deficit (65,005) (89,457) Total stockholders' equity 90,805 76,417 $301,727 $399,552 Certain reclassifications of prior period data have been made to conform to the current presentation. Contact: Suzanne Moore AccessIT 973.290.0080 smoore@accessitx.com
First Call Analyst:
FCMN Contact:
Source: Access Integrated Technologies, Inc.
CONTACT: Suzanne Moore of AccessIT, +1-973-290-0080,
smoore@accessitx.com
Web site: http://www.accessitx.com/
Profile: International Entertainment
posted by EntertainmentNews @ 5:34 AM
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