Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 58% increase in revenues, to a record $16,795,000 for the fiscal year ended March 31, 2006. For the full fiscal year, the company posted an EBITDA(1) (defined below) loss and an Adjusted EBITDA(1) loss of $3,666,000, and a net loss of $16,812,000 or $1.19 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of software development, non- cash interest and debt conversion expenses aggregating $13,224,000.
For the fourth quarter ended March 31, 2006, the company reported a 28% increase in revenues to a record of $4,511,000. EBITDA(1) and Adjusted EBITDA(1) in the fiscal fourth quarter was a loss of $1,274,000, and a net loss of $3,025,000 or $0.17 per basic and diluted share. The net loss for the quarter includes non-cash expenses for depreciation, amortization of software development, non-cash interest and debt conversion expenses totaling $1,610,000.
Fourth Fiscal Quarter and Fiscal Year Highlights
* Revenues for the fourth quarter increased by 28%, to $4,511,000 from
$3,516,000 in the comparable year ago period. Revenues for the fiscal
year ended March 31, 2006 increased to $16,795,000, compared to revenues
of $10,651,000 reported in the year ago period, a 58% increase. Fiscal
2006 fourth quarter and full-year results included the revenues from
FiberSat Global Services LLC and the Pavilion Movie
Theatre/Entertainment Complex, both acquired in fiscal 2005.
* EBITDA(1) for the three and twelve months ended March 31, 2006 was a
loss of $1,274,000 and $3,666,000 respectively, compared to an EBITDA(1)
loss of $567,000 and $1,708,000 in the comparable year ago periods,
respectively. The decrease in EBITDA(1) was primarily due to increased
selling, general and administrative expenses associated with an overall
higher headcount and support services related to the increased size of
the company. Adjusted EBITDA(1), which also excludes non-cash stock
based compensation, for the three and twelve month periods ended March
31, 2006 was a loss of $1,274,000 and $3,666,000, respectively, compared
to Adjusted EBITDA(1) loss of $567,000 and $1,205,000 in the comparable
year ago periods, respectively.
* Loss from operations in the March 2006 quarter increased to $2,741,000,
from a loss of $1,884,000 in the March 2005 quarter. Loss from
operations for the fiscal year ended March 2006 increased to $9,214,000
from a loss of $5,700,000 reported in the year ended March 2005. The
increased loss was due to the reasons referenced above in the EBITDA(1)
discussion, as well as higher depreciation and amortization resulting
from our increased asset base from 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 and twelve
months ended March 31, 2006 increased to $3,025,000 and $16,812,000,
respectively compared to losses of $2,799,000 and $6,788,000 in the year
ago periods.
* The company fully utilized the $75,000,000 Shelf Registration filed in
December 2005. The combined estimated net proceeds of approximately
$69,248,000 are being used for the purchase, installation and
maintenance of digital cinema projection systems by Christie/AIX, in
connection with its Digital Cinema Roll-Out, and for general corporate
purposes.
* In March 2006, our subsidiary Christie/AIX received a commitment from
General Electric Capital Corporation to underwrite up to $217 million of
a senior secured financing, consisting of a $217 million Senior Secured
Multi Draw Term Loan anticipated to be due May 2013. Proceeds from the
Facility will be used for the purchase and installation of approximately
70% of the installed cost of digital cinema projection systems in
connection with our Digital Cinema Roll-Out. The remaining cost would
be funded from equity provided by AccessIT.
* At March 31, 2006, the Company had installed 210 digital cinema systems
and 426 as of May 31, 2006 and remains committed to completing 2,000 to
2,500 digital cinema systems installations by April 2007 and complete
all 4,000 digital cinema systems installations by October 31, 2007.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "Fiscal 2006 was a year of significant achievement for AccessIT and indeed, the whole industry. The benefits of the investments made and those that we continue to make are now beginning to be reflected in our business. Recent product introductions, such as TDS Global and our hardware agnostic Theatre Command Center (TCC) software systems, greatly expands AccessIT's position as the only company capable of combining proven digital cinema technologies with real-world experience. Our capabilities now span the spectrum from global content scheduling, management, accounting and delivery solutions for content owners through to theater operations management for exhibitors. The year ahead will be an exciting one for AccessIT as the number of theatres converting to digital dramatically expands, the digital cinema revolution gathers additional momentum, and related revenue streams begin to impact our bottom line."
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results at 10:00 a.m. EDT on Monday, June 12, 2006. The conference can be accessed by dialing 617.801.9715, passcode 50621351 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 61327675 through Monday, June 19, 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.
(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.
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)
Three Months Ended
March 31,
2005 2006
Revenues:
Media services $1,550 $2,532
Data center services 1,966 1,979
Total revenues 3,516 4,511
Costs of revenues (exclusive of depreciation
and amortization shown below):
Media services 792 1,591
Data center services 1,005 1,219
Total costs of revenues 1,797 2,810
Gross profit 1,719 1,701
Operating expenses:
Selling, general and administrative 1,996 3,016
Provision for doubtful accounts 64 96
Research and development 377 (24)
Depreciation and amortization 1,166 1,354
Total operating expenses 3,603 4,442
Loss from operations (1,884) (2,741)
Interest income 5 136
Interest expense (327) (315)
Non-cash interest expense (676) (82)
Debt conversion expense - (61)
Other income (expense), net 5 (40)
Loss before income tax benefit (2,877) (3,103)
Income tax benefit 78 78
Net loss $(2,799) $(3,025)
Net loss available to common
stockholders per common share:
Basic and diluted $(0.27) $(0.17)
Weighted average number of common
shares outstanding:
Basic and diluted 10,391,502 17,628,282
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands)
Three Months Ended
March 31,
2005 2006
Net loss $(2,799) $(3,025)
Add Back:
Amortization of software development 151 113
Depreciation and amortization 1,166 1,354
Interest income (5) (136)
Interest expense 327 315
Non-cash interest expense 676 82
Income tax benefit (78) (78)
Debt conversion expense - 61
Other (income) expense, net (5) 40
EBITDA (as defined) $(567) $(1,274)
Adjusted EBITDA (as defined) $(567) $(1,274)
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
Twelve Months Ended
March 31,
2005 2006
Revenues:
Media services $4,043 $9,909
Data center services 6,608 6,886
Total revenues 10,651 16,795
Costs of revenues (exclusive of depreciation
and amortization shown below):
Media services 1,696 6,738
Data center services 4,115 4,812
Total costs of revenues 5,811 11,550
Gross profit 4,840 5,245
Operating expenses:
Selling, general and administrative 5,607 8,972
Provision for doubtful accounts 640 186
Research and development 666 300
Non-cash stock-based compensation 4 -
Depreciation and amortization 3,623 5,001
Total operating expenses 10,540 14,459
Loss from operations (5,700) (9,214)
Interest income 5 316
Interest expense (605) (2,152)
Non-cash interest expense (832) (1,407)
Debt conversion expense - (6,269)
Other income, net 23 1,603
Loss before income tax benefit
and minority interest (7,109) (17,123)
Income tax benefit 311 311
Loss before minority interest (6,798) (16,812)
Minority interest in loss of subsidiary 10 -
Net loss $(6,788) $(16,812)
Net loss available to common stockholders
per common share:
Basic and diluted $(0.70) $(1.19)
Weighted average number
of common shares outstanding:
Basic and diluted 9,668,876 14,086,001
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands)
Twelve Months Ended
March 31,
2005 2006
Net loss $(6,788) $(16,812)
Add Back:
Amortization of software development 369 547
Depreciation and amortization 3,623 5,001
Interest income (5) (316)
Interest expense 605 2,152
Non-cash interest expense 832 1,407
Income tax benefit (311) (311)
Minority interest (10) -
Debt conversion expense - 6,269
Other income, net (23) (1,603)
EBITDA (as defined) $(1,708) $(3,666)
Add Back:
Non-cash stock-based compensation 4 -
Provision for customer related unbilled revenue 499 -
Adjusted EBITDA (as defined) $(1,205) $(3,666)
Access Integrated Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
(Audited)
March 31, March 31,
2005 2006
ASSETS
Current assets
Cash and cash equivalents $4,779 $36,641
Investment securities - 24,000
Accounts receivable, net 947 1,593
Prepaid and other current assets 762 700
Note receivable, net of current portion - 43
Unbilled revenue 550 1,492
Total current assets 7,038 64,469
Property and equipment, net 14,261 44,551
Intangible assets, net 3,337 2,056
Capitalized software costs, net 1,622 1,680
Goodwill 10,363 9,310
Deferred costs 726 148
Note receivable, net of current portion - 1,122
Unbilled revenue, net of current portion 69 42
Security deposits 361 389
Restricted cash - 180
Total assets $37,777 $123,947
Liabilities, redeemable stock and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $2,415 $13,282
Current portion of notes payable 1,415 1,203
Current portion of customer security deposits 116 176
Current portion of capital leases 432 89
Current portion of deferred revenue 884 768
Current portion of deferred rent expense 42 100
Total current liabilities 5,304 15,618
Notes payable, net of current portion 12,682 1,948
Customer security deposits, net
of current portion 161 40
Deferred revenue, net of current portion 95 66
Capital leases, net of current portion 6,058 5,978
Deferred rent expense, net of current portion 970 918
Deferred tax liability 1,210 898
Total liabilities 26,480 25,466
Commitments and contingencies
Redeemable Class A common stock, issued and
outstanding, 53,534 and 0 shares issued and
outstanding at March 31, 2005 and March 31,
2006, respectively 250 -
Stockholders' equity:
Class A common stock, $0.001 par value per share;
40,000,000 shares authorized; 9,433,328 and
22,059,567 shares issued and 9,381,888 and
22,008,127 shares outstanding at March 31, 2005
and March 31, 2006, respectively 9 22
Class B common stock, $0.001 par value per share;
15,000,000 shares authorized; 965,811 and 925,811
shares issued and outstanding, at March 31, 2005
and March 31, 2006, respectively 1 1
Additional paid-in capital 32,696 136,929
Treasury Stock, at cost; 51,440 shares (172) (172)
Accumulated deficit (21,487) (38,299)
Total stockholders' equity 11,047 98,481
Total liabilities, redeemable stock
and stockholders' equity $37,777 $123,947