Access Integrated Technologies, Inc. ("AccessIT" or the "Company")
(NASDAQ: AIXD) reported a 12% increase in revenues, to $21.8
million for the fiscal 2009 second quarter ended September 30,
2008, versus the year-ago period. The Company posted an Adjusted
EBITDA(1) (defined below) of $10.9 million or $0.40 per share, an
improvement from both the fiscal 2008 second quarter of $6.9
million and the fiscal 2009 June quarter of $10.2 million. Net loss
of $6.3 million or $0.23 per share was also an improvement from the
year-ago quarter of $9.3 million or $0.37 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 $10.3 million or
$0.37 per share.
Second Fiscal Quarter Highlights
-- Revenues for the second quarter increased by 12%, to $21.8 million
from $19.5 million in the comparable year-ago period. This increase was
driven largely by a 31% gain in the media services segment, including
Virtual Print Fees ("VPFs") and record levels of media delivery fees in our
satellite unit offset by a 19% decrease in our content and entertainment
segment. Quarter-over-quarter, revenues increased by 6%, from $20.6 million
mainly due to increases in VPF revenue and satellite delivery revenue.
-- Income From Operations in the September 2008 quarter improved to $1.5
million, from a loss of $1.3 million in the comparable year-ago period and
income of $0.7 million in the June 2008 quarter, resulting from increased
revenues offset by increased direct operating expenses and reduced SG&A.
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 69% in this second quarter, a slight improvement over last fiscal
year's overall 67%.
-- Adjusted EBITDA(1) margins improved to 50% in the September 2008
quarter from 35% in the comparable year-ago period, and from 49% in the
June 2008 quarter.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "Despite
the challenged economy and no new digital cinema system
installations, AccessIT's revenues and EBITDA margins continue to
improve. We are clear about our business plan, and the strategies
we will employ while the credit markets are dormant, including:
signing up exhibitors to our Master License Agreements and
proceeding with site preparation in their locations, signing more
movie distributors to VPF agreements, and completing Supply
Agreements with all major hardware vendors to ensure competitive
pricing and continuous supply. These efforts will enable AccessIT
to move forward quickly as the interim financing we are seeking and
the financing we anticipate upon the return of the credit markets
begins to flow."
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial
results at 10:30 a.m. EST on Thursday, November 6, 2008. The
conference can be accessed by dialing 719.325.4817, 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 1:30 p.m. Eastern at
719.457.0820 or 888.203.1112, passcode 8375274. The replay will be
accessible through Thursday, November 13th.
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� and Theatre Command Center�
software have enabled theatres across the United States to play
more than nine million digital showings of Hollywood features to
date. AccessIT's 24/7 satellite operations deliver 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� 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� and AccessIT? 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.
(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.
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Three Months Ended
September 30,
----------------------------
2007 2008
------------- -------------
Revenues $ 19,466 $ 21,849
Costs and expenses:
Direct operating (exclusive of depreciation
and amortization shown below) 6,984 6,732
Selling, general and administrative 5,479 4,187
Provision for doubtful accounts 184 145
Research and development 100 93
Stock-based compensation 112 200
Depreciation of property and equipment 6,805 8,133
Amortization of intangible assets 1,069 901
------------- -------------
Total operating expenses 20,733 20,391
------------- -------------
(Loss) income from operations (1,267) 1,458
Interest income 405 99
Interest expense (7,083) (6,990)
Debt refinancing expense (1,122) --
Other expense, net (190) (176)
Change in fair value of interest rate swap -- (687)
------------- -------------
Net loss $ (9,257) $ (6,296)
============= =============
Net loss per Class A and B common share -
Basic and diluted $ (0.37) $ (0.23)
============= =============
Weighted average number of Class A and B
common shares outstanding:
Basic and diluted 25,338,550 27,536,371
============= =============
ACCESS INTEGRATED TECHNOLOGIES, INC.
ADJUSTED EBITDA (AS DEFINED)
RECONCILIATION TO GAAP NET INCOME
(In thousands)
(Unaudited)
Three Months Ended
September 30,
----------------------------
2007 2008
------------- -------------
Net loss $ (9,257) $ (6,296)
Add Back:
Amortization of software development 166 194
Depreciation of property and equipment 6,805 8,133
Amortization of intangible assets 1,069 901
Interest income (405) (99)
Interest expense 7,083 6,990
Debt refinancing expense 1,122 --
Other expense, net 190 176
Change in fair value of interest rate swap -- 687
Stock-based expenses -- 45
Stock-based compensation 112 200
------------- -------------
Adjusted EBITDA (as defined) $ 6,885 $ 10,931
============= =============
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Six Months Ended
September 30,
----------------------------
2007 2008
------------- -------------
Revenues $ 37,612 $ 42,419
Costs and expenses:
Direct operating (exclusive of depreciation
and amortization shown below) 13,190 12,529
Selling, general and administrative 11,037 9,020
Provision for doubtful accounts 370 173
Research and development 323 100
Stock-based compensation 199 358
Depreciation of property and equipment 12,930 16,268
Amortization of intangible assets 2,139 1,848
------------- -------------
Total operating expenses 40,188 40,296
------------- -------------
(Loss) income from operations (2,576) 2,123
Interest income 726 223
Interest expense (12,827) (14,166)
Debt refinancing expense (1,122) --
Other expense, net (301) (326)
Change in fair value of interest rate swap -- 1,565
------------- -------------
Net loss $ (16,100) $ (10,581)
============= =============
Net loss per Class A and B common share -
Basic and diluted $ (0.64) $ (0.39)
============= =============
Weighted average number of Class A and B
common shares outstanding:
Basic and diluted 25,050,081 27,202,593
============= =============
ACCESS INTEGRATED TECHNOLOGIES, INC.
ADJUSTED EBITDA (AS DEFINED)
RECONCILIATION TO GAAP NET INCOME
(In thousands)
(Unaudited)
Six Months Ended
September 30,
----------------------------
2007 2008
------------- -------------
Net loss $ (16,100) $ (10,581)
Add Back:
Amortization of software development 295 387
Depreciation of property and equipment 12,930 16,268
Amortization of intangible assets 2,139 1,848
Interest income (726) (223)
Interest expense 12,827 14,166
Debt refinancing expense 1,122 --
Other expense, net 301 326
Change in fair value of interest rate swap -- (1,565)
Stock-based expenses -- 119
Stock-based compensation 199 358
------------- -------------
Adjusted EBITDA (as defined) $ 12,987 $ 21,103
============= =============
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
March 31, September 30,
2008 2008
------------- -------------
ASSETS (Unaudited)
Current assets
Cash and cash equivalents $ 29,655 $ 23,147
Accounts receivable, net 21,494 17,309
Unbilled revenue, current portion 6,393 5,263
Deferred costs 3,859 3,807
Prepaid and other current assets 1,316 2,851
Notes receivable, current portion 158 280
------------- -------------
Total current assets 62,875 52,657
Property and equipment, net 269,031 254,265
Intangible assets, net 13,592 11,744
Capitalized software costs, net 2,777 2,898
Goodwill 14,549 14,549
Accounts receivable, net of current portion 299 299
Deferred costs, net of current portion 6,595 5,360
Notes receivable, net of current portion 1,220 1,037
Unbilled revenue, net of current portion 2,075 1,887
Security deposits 408 425
Restricted cash 255 255
Fair value of interest rate swap -- 1,565
------------- -------------
Total assets $ 373,676 $ 346,941
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 25,213 $ 11,335
Current portion of notes payable 16,998 24,320
Current portion of deferred revenue 6,204 5,797
Current portion of customer security
deposits 333 354
Current portion of capital leases 89 123
------------- -------------
Total current liabilities 48,837 41,929
Notes payable, net of current portion 250,689 238,609
Capital leases, net of current portion 5,814 5,819
Deferred revenue, net of current portion 283 283
Customer security deposits, net of current
portion 46 34
------------- -------------
Total liabilities 305,669 286,674
------------- -------------
Commitments and contingencies
Stockholders' equity:
Class A common stock, $0.001 par value per
share; 40,000,000 and 65,000,000 shares
authorized at March 31, 2008 and September
30, 2008, respectively; 26,143,612 and
26,884,091 shares issued and 26,092,172 and
26,832,651 shares outstanding at March 31,
2008 and September 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 September 30, 2008,
respectively 1 1
Additional paid-in capital 168,844 171,684
Treasury Stock, at cost; 51,440 Class A
shares (172) (172)
Accumulated deficit (100,692) (111,273)
------------- -------------
Total stockholders' equity 68,007 60,267
------------- -------------
Total liabilities and stockholders' equity $ 373,676 $ 346,941
============= =============
Contact: Suzanne Moore AccessIT 973.290.0080 Email Contact
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