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Access Integrated Technologies, Inc. Announces Fiscal 2009 Second Quarter Results Revenue Growth, Operating Income and Adjusted EBITDA Margin Improvements Continue, Driven by Virtual Print Fees and Growth in Content Delivery Business MORRISTOWN, NJ--(MARKET WIRE)--Nov 6, 2008 -- Access Integrated Technologies, Inc.
("AccessIT" or the "Company") (NasdaqGM:AIXD - News) 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: Contact:
Suzanne Moore
AccessIT
973.290.0080
Email Contact
Source: Access Integrated Technologies, Inc.
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