Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 155% increase in revenues to a record of $9,965,000 for the second quarter ended September 30, 2006. The company posted an Adjusted EBITDA(1) (defined below) of positive $704,000, and a basic and diluted loss per share of $0.14, excluding a one-time, non-cash stock-based compensation charge of $2,779,000 or $0.12 per basic and diluted share in the second quarter. Including this charge, the company posted an EBITDA(1) (defined below) loss of $2,075,000 and a net loss of $6,018,000 or $0.26 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 non-cash stock based compensation aggregating $6,073,000.
For the six months ended September 30, 2006, the company reported a 97% increase in revenues, to $15,541,000. Also, for the six months ended September 30, 2006, the company posted an Adjusted EBITDA(1) of positive $486,000, an EBITDA(1) loss of $2,293,000, and a net loss of $8,542,000 or $0.37 per basic and diluted share. The loss before non-cash expenses was $247,000 or $0.01 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of software development, non-cash interest and non-cash stock based compensation aggregating $8,295,000.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "We reached one of our principal goals for this fiscal year: positive Adjusted EBITDA for a full quarter. Our expectations for future quarters are for steady improvement in all key metrics while we continue to pursue our domestic and international growth plans."
Second Fiscal Quarter Highlights
-- Revenues for the second quarter increased by 155%, to $9,965,000 from
$3,902,000 in the comparable year ago period. Revenues for the six
months ended September 30, 2006 increased to $15,541,000, compared to
revenues of $7,873,000 reported in the year ago period, a 97% increase.
Fiscal 2007 second quarter and six month increase in revenues was
driven largely by revenues of UniqueScreen Media ("USM"), VPF revenues
of Christie/AIX and license fees earned by our Digital Media Services
division for its Theatre Command Center software. USM was acquired in
this fiscal 2007 second quarter.
-- Adjusted EBITDA(1), which also excludes non-cash stock based
compensation, for the three and six month periods ended September 30,
2006 was positive $704,000 and positive $486,000, respectively,
compared to Adjusted EBITDA loss of $1,051,000 and $1,574,000 in the
comparable year ago periods, respectively. EBITDA (1) for the three and
six months ended September 30, 2006 was a loss of $2,075,000 and
$2,293,000 respectively, compared to an EBITDA(1) loss of $1,051,000
and $1,574,000 in the comparable year ago periods, respectively. The
decrease in EBITDA(1) was primarily due to non-cash stock based
compensation.
-- Loss from operations in the September 2006 quarter increased to
$5,346,000, from a loss of $2,386,000 in the comparable year ago
quarter. Loss from operations for the six months ended September 30,
2006 increased to $7,763,000 from a loss of $4,323,000 reported in the
comparable year ago period. 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 six months
ended September 30, 2006 decreased to $6,018,000 and $8,542,000,
respectively compared to losses of $9,260,000 and $11,750,000 in the
year ago periods.
-- At September 30, 2006, the Company had installed 1042 digital cinema
systems and 1403 as of today 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.
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EST on Friday, November 3, 2006. The conference can be accessed by dialing 913.981.5584 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, http://www.accessitx.com. A replay of the call will be available after 1:00 p.m. eastern at 719.457.0820 or 888.203.1112, passcode 4468342. The replay will be accessible through Friday, November 10th.
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 Andrew Komendantov
AccessIT The Dilenschneider Group
973.290.0080 212.922.0900
smoore@accessitx.com
(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.
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Three Months Ended
September 30,
2005 2006
Revenues $3,902 $9,965
Costs and expenses:
Direct operating 2,892 5,194
Selling, general and
administrative 2,041 3,970
Provision for doubtful accounts 12 110
Research and development 154 156
Non-cash stock-based compensation - 2,779
Depreciation and amortization 1,189 3,102
Total operating expenses 6,288 15,311
Loss from operations (2,386) (5,346)
Interest income 81 135
Interest expense (1,091) (801)
Non-cash interest expense (1,109) (23)
Debt conversion expense (6,083) -
Other income (expense), net 1,250 (61)
Loss before income tax benefit (9,338) (6,096)
Income tax benefit 78 78
Net loss $(9,260) $(6,018)
Net loss available to common
stockholders per common share:
Basic and diluted $(0.71) $(0.26)
Weighted average number of common
shares outstanding:
Basic and diluted 13,047,151 23,613,396
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands) (Unaudited)
Three Months Ended
September 30,
2005 2006
Net loss $(9,260) $(6,018)
Add Back:
Depreciation and amortization 1,189 3,102
Amortization of software
development 146 169
Interest income (81) (135)
Interest expense 1,091 801
Non-cash interest expense 1,109 23
Debt conversion expense 6,083 -
Other (income) expense, net (1,250) 61
Income tax benefit (78) (78)
EBITDA (as defined) $(1,051) $(2,075)
Add Back:
Non-cash stock-based compensation - 2,779
Adjusted EBITDA (as defined) $(1,051) $704
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Six Months Ended
September 30,
2005 2006
Revenues $7,873 $15,541
Costs and expenses:
Direct operating 5,629 8,616
Selling, general and
administrative 3,792 6,456
Provision for doubtful accounts 35 129
Research and development 287 179
Non-cash stock-based compensation - 2,779
Depreciation and amortization 2,453 5,145
Total operating expenses 12,196 23,304
Loss from operations (4,323) (7,763)
Interest income 83 444
Interest expense (1,524) (1,104)
Non-cash interest expense (1,293) (46)
Debt conversion expense (6,083) -
Other income (expense), net 1,234 (229)
Loss before income tax benefit (11,906) (8,698)
Income tax benefit 156 156
Net loss $(11,750) $(8,542)
Net loss available to common
stockholders per common share:
Basic and diluted $(1.00) $(0.37)
Weighted average number of common
shares outstanding:
Basic and diluted 11,730,966 23,288,537
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands) (Unaudited)
Six Months Ended
September 30,
2005 2006
Net loss $(11,750) $(8,542)
Add Back:
Depreciation and amortization 2,453 5,145
Amortization of software
development 296 325
Interest income (83) (444)
Interest expense 1,524 1,104
Non-cash interest expense 1,293 46
Debt conversion expense 6,083 -
Other (income) expense, net (1,234) 229
Income tax benefit (156) (156)
EBITDA (as defined) $(1,574) $(2,293)
Add Back:
Non-cash stock-based compensation - 2,779
Adjusted EBITDA (as defined) $(1,574) 486
Access Integrated Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except for share data)
March 31, September 30,
2006 2006
ASSETS (Audited) (Unaudited)
Current assets
Cash and cash equivalents $36,641 $21,602
Investment securities, available-for-sale 24,000 -
Accounts receivable, net 1,593 12,492
Unbilled revenue, current portion 1,492 1,659
Prepaid and other current assets 700 1,842
Notes receivable, current portion 43 45
Total current assets 64,469 37,640
Deposits on property and equipment 8,673 8,153
Property and equipment, net 35,878 101,476
Intangible assets, net 2,056 14,125
Capitalized software costs, net 1,680 2,955
Goodwill 9,310 15,095
Accounts receivable, net of current portion - 188
Deferred costs 148 2,455
Notes receivable, net of current portion 1,122 1,290
Unbilled revenue, net of current portion 42 557
Security deposits 389 431
Restricted cash 180 180
Deferred tax asset - 1,042
Total assets $123,947 $185,587
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses $13,282 $6,011
Current portion of notes payable 1,203 5,554
Current portion of customer security deposits 176 156
Current portion of capital leases 89 77
Current portion of deferred revenue 768 8,475
Current portion of deferred rent expense 100 114
Total current liabilities 15,618 20,387
Notes payable, net of current portion 1,948 54,045
Customer security deposits, net of current portion 40 43
Deferred revenue, net of current portion 66 207
Capital leases, net of current portion 5,978 5,942
Deferred rent expense, net of current portion 918 858
Deferred tax liability 898 1,464
Total liabilities 25,466 82,946
Commitments and contingencies
Stockholders' equity:
Class A common stock, $0.001 par value per share;
40,000,000 shares authorized; 22,059,567 and
23,167,696 shares issued and 22,008,127 and
23,116,256 shares outstanding at March 31, 2006
and September 30, 2006, respectively 22 23
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 September 30, 2006, respectively 1 1
Additional paid-in capital 136,929 149,630
Treasury Stock, at cost; 51,440 shares (172) (172)
Accumulated deficit (38,299) (46,841)
Total stockholders' equity 98,481 102,641
Total liabilities and stockholders' equity $123,947 $185,587
Certain reclassifications of prior period data have been made to conform
to the current presentation.