Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 41% increase in revenues, to a record $5,576,000 for the first quarter of fiscal 2007 ended June 30, 2006. In the quarter, the company posted an EBITDA(1) (defined below) loss and an Adjusted EBITDA(1) loss of $218,000, and a net loss of $2,524,000 or $0.11 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of software development and non-cash interest aggregating $2,222,000.
First Quarter Fiscal 2007 Highlights
* Revenues for the first quarter increased by 41%, to $5,576,000 from
$3,971,000 in the comparable year ago period driven largely by VPF
revenues of Christie/AIX and license fees earned by DMS for its Theatre
Command Center software.
* EBITDA for the three months ended June 30, 2006 was a loss of $218,000
compared to an EBITDA loss of $524,000 in the comparable year ago
period. The improvement in EBITDA was primarily due to increased
revenue in the company's media services unit, reflecting the receipt of
virtual print fees paid to it by Hollywood studios for movies projected
on Christie/AIX-funded digital cinema systems. This increased revenue
offset selling, general and administrative expenses associated with an
overall higher headcount and support services related to the increased
size of the company. There was no change to Adjusted EBITDA from
EBITDA as there was no non-cash stock based compensation for the three
month period ended June 30, 2006 or the comparable year ago period.
* Loss from operations in the June 2006 quarter increased to $2,417,000,
from a loss of $1,938,000 in the June 2005 quarter. The increased loss
was due to the increased selling, general and administrative expenses
referenced above and to higher depreciation and amortization expenses
from our increased asset base due to the purchase of digital cinema
projections systems by Christie/AIX, in connection with its digital
cinema roll-out.
* Net loss available to common stockholders for the three months ended
June 30, 2006 was $2,524,000 compared to a loss of $2,490,000 in the
year ago period.
* At June 30, 2006, the Company had installed 534 digital cinema systems
up from the 210 systems installed as of March 31, 2006 and the 426
systems installed by the end of May 2006. The company expects to
achieve an install rate of 200 per month by September and remains
committed to completing between 2,000 and 2,500 digital cinema systems
installations by March 31, 2007. The Company also expects that it will
complete all of its planned 4,000 digital cinema systems installations
by October 31, 2007.
The Company further noted that on July 31st 2006, AccessIT completed the previously announced acquisition of privately held UniqueScreen Media Inc. UniqueScreen Media is expected to contribute positively to the Company's results of operations beginning with the third quarter of fiscal 2007.
In addition, on August 1, 2006, the Company closed on a $217 million senior credit facility with GE Capital Corp. This facility, when combined with the equity previously raised by the company, will allow it to comfortably proceed with the funding of the 4,000-screen Christie/AIX digital cinema deployment plan.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "Results of the first quarter have begun to clearly reflect the positive contributions of our multiple digital cinema-related revenue streams, highlighted by significant VPFs, exceeding $600,000 recorded in June alone. The increased revenue from VPFs, transport fees and software licensing has enabled the company to cross-over into positive EBITDA in the month of June and set the stage for what we expect to be sustainable positive quarterly EBITDA in the near future, even before the accretive addition of the operations of UniqueScreen. These contributions will be partially reflected in our results for the next fiscal quarter ended September 30. With the GE credit facility in place, we now have the flexibility to continue accelerating our digital cinema rollout which, coupled with an increasing number of digital releases from Hollywood, should give a substantial boost to revenue and EBITDA going forward."
(1) EBITDA is defined by the Company to be earnings before interest,
taxes, depreciation and amortization, and other income (expense),
net, and non-recurring items. Adjusted EBITDA is defined by the
Company to be earnings before interest, taxes, depreciation and
amortization, other income (expense), net, non-recurring items, and
non-cash stock-based compensation. EBITDA and Adjusted EBITDA are
presented because management believes it provides additional
information with respect to the performance of its fundamental
business activities. A reconciliation of EBITDA to Generally
Accepted Accounting Principles ("GAAP") net income is included in the
table attached to this release. 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.
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results at 1:00 p.m. EDT on Thursday, August 10, 2006. The conference can be accessed by dialing 617.213.8844, passcode 87251343 at least five minutes before the start of the call. 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 at 617.801.6888, passcode 38616397 through Thursday, August 17, 2006.
Access Integrated Technologies, Inc. (AccessIT) is the industry leader in providing fully integrated software and services to enable the motion picture entertainment industry and all of its constituents to transition from film to digital cinema. Its studio-backed 4,000 screen ongoing deployment of digital systems is the first and the largest of its kind in the world. The company's Theatrical Distribution System software and electronic satellite delivery services provide studios and content owners with a seamless entry into the digital era while its vendor neutral Theatre Command Center and Exhibitor Management System provide exhibitors with all the tools needed to transition to digital cinema. For more information on AccessIT, visit http://www.accessitx.com.
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 Tregenza Moore Michael Glickman
AccessIT The Dilenschneider Group
973.290.0080 212.922.0900
smoore@accessitx.com
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Three Months Ended
June 30,
2005 2006
Revenues $3,971 $5,576
Costs and expenses:
Direct operating 2,738 3,422
Selling, general and administrative 1,751 2,486
Provision for doubtful accounts 23 19
Research and development 133 23
Depreciation and amortization 1,264 2,043
Total operating expenses 5,909 7,993
Loss from operations (1,938) (2,417)
Interest income 3 309
Interest expense (433) (303)
Non-cash interest expense (184) (23)
Other (expense) income, net (16) (168)
Loss before income tax benefit (2,568) (2,602)
Income tax benefit 78 78
Net loss $(2,490) $(2,524)
Net loss available to common stockholders
per common share:
Basic and diluted $ (0.24) $ (0.11)
Weighted average number of common shares
outstanding:
Basic and diluted 10,405,814 22,960,108
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands) (Unaudited)
Three Months Ended
June 30,
2005 2006
Net loss $(2,490) $ (2,524)
Add Back:
Depreciation and amortization 1,264 2,043
Amortization of software development 150 156
Interest income (3) (309)
Interest expense 433 303
Non-cash interest expense 184 23
Other expense (income), net 16 168
Income tax benefit (78) (78)
EBITDA (as defined) $(524) $(218)
Adjusted EBITDA (as defined) $(524) $(218)
Access Integrated Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except for share data)
March 31, June 30,
2006 2006
ASSETS (Audited) (Unaudited)
Current assets
Cash and cash equivalents $36,641 $5,181
Investment securities, available-for-sale 24,000 24,000
Accounts receivable, net 1,593 2,119
Unbilled revenue, current portion 1,492 1,832
Prepaid and other current assets 700 751
Notes receivable, current portion 43 44
Total current assets 64,469 33,927
Deposits on property and equipment 8,673 10,369
Property and equipment, net 35,878 64,974
Intangible assets, net 2,056 2,074
Capitalized software costs, net 1,680 2,890
Goodwill 9,310 9,440
Accounts receivable, net of current portion - 229
Deferred costs 148 267
Notes receivable, net of current portion 1,122 1,464
Unbilled revenue, net of current portion 42 42
Security deposits 389 402
Restricted cash 180 180
Total assets $123,947 $126,258
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $13,282 $19,169
Current portion of notes payable 1,203 1,058
Current portion of customer security deposits 176 154
Current portion of capital leases 89 91
Current portion of deferred revenue 768 154
Current portion of deferred rent expense 100 107
Total current liabilities 15,618 20,733
Notes payable, net of current portion 1,948 1,521
Customer security deposits, net of current
portion 40 40
Deferred revenue, net of current portion 66 377
Capital leases, net of current portion 5,978 5,961
Deferred rent expense, net of current portion 918 890
Deferred tax liability 898 820
Total liabilities 25,466 30,342
Commitments and contingencies
Stockholders' equity:
Class A common stock, $0.001 par value per
share; 40,000,000 shares authorized;
22,059,567 and 22,193,012 shares issued and
22,008,127 and 22,141,572 shares outstanding
at March 31, 2006 and June 30, 2006,
respectively
22 22
Class B common stock, $0.001 par value per
share; 15,000,000 shares authorized;
925,811 and 825,811 shares issued and
outstanding, at March 31, 2006 and
June 30, 2006, respectively 1 1
Additional paid-in capital 136,929 136,888
Treasury Stock, at cost; 51,440 shares (172) (172)
Accumulated deficit (38,299) (40,823)
Total stockholders' equity 98,481 95,916
Total liabilities and stockholders' equity $123,947 $126,258 Certain reclassifications of prior period data have been made to conform to
the current presentation.