February 9, 2007

Access Integrated Technologies, Inc. Announces Fiscal 2007 Third Quarter Results

Positive EBITDA and Positive Adjusted EBITDA

MORRISTOWN, NJ, Feb 09, 2007 (MARKET WIRE via COMTEX News Network) -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (NASDAQ: AIXD) reported a 365% increase in revenues to a record of $12,783,000 for the third quarter ended December 31, 2006 as compared to the third quarter ended December 31, 2005. The company posted an EBITDA(1) (defined below) from continuing operations of positive $2,052,000, an Adjusted EBITDA(1) (defined below) from continuing operations of positive $2,102,000 and a net loss from continuing operations of $5,587,000 or $0.23 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 $5,858,000.

For the nine months ended December 31, 2006, the company reported a 244% increase in revenues, to $25,396,000 as compared to the nine months ended December 31, 2005. Also, for the nine months ended December 31, 2006, the company posted an EBITDA(1) from continuing operations of positive $125,000, an Adjusted EBITDA(1) from continuing operations of positive $2,945,000, and a net loss from continuing operations of $13,209,000 or $0.56 per basic and diluted share. The earnings before non-cash expenses were $393,000 or $0.02 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 $13,602,000.

Certain financial information in this release, including revenue, EBITDA, and Adjusted EBITDA are presented "from continuing operations." The Company has decided to pursue the possible disposition of the businesses contained in the Data Center Services Segment, and therefore those operating results are now contained in a separate line item in the Company's financial statements. All prior periods have been restated accordingly.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "In addition to the year-over-year growth, we are directing our attention to improving our quarter-over-quarter revenue, operating margins and EBITDA, a trend we intend to continue. Our 90% organic revenue growth in this quarter versus our June quarter was primarily responsible for the improved margins and EBITDA. It is important to note that these improvements occurred without sacrificing our retractable business development expenses worldwide of approximately $1 million in the quarter, an amount we do not expect to grow significantly in the future."

Third Fiscal Quarter Highlights

--  Revenues for the third quarter increased by 365%, to $12,783,000 from
    $2,751,000 in the comparable year ago period.  Revenues for the nine months
    ended December 31, 2006 increased to $25,396,000, compared to revenues of
    $7,377,000 reported in the year ago period, a 244% increase.  Fiscal 2007
    third quarter and nine month increase in revenues was driven largely by
    revenues of UniqueScreen Media ("USM"), Virtual Print Fee 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.

--  EBITDA(1) from continuing operations for the three and nine months
    ended December 31, 2006 was positive $2,052,000 and positive $125,000
    respectively, compared to an EBITDA(1) loss of $1,067,000 and $3,433,000 in
    the comparable year ago periods, respectively.  The increase in EBITDA(1)
    was primarily due to the increased revenues as described above, partially
    offset by increased operating expenses resulting from the acquisition of
    USM and the advancement of the Company's digital cinema deployment.
    Adjusted EBITDA(1), which also excludes non-cash stock-based compensation,
    for the three and nine month periods ended December 31, 2006 was positive
    $2,102,000 and positive $2,945,000, respectively, compared to Adjusted
    EBITDA loss of $1,067,000 and $3,433,000 in the comparable year ago
    periods, respectively.

--  Loss from continuing operations in the December 2006 quarter increased
    to $2,834,000, from a loss of $2,012,000 in the comparable year ago
    quarter.  Loss from continuing operations for the nine months ended
    December 31, 2006 increased to $9,689,000 from a loss of $6,199,000
    reported in the comparable year ago period.  The increased losses were due
    to 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, which includes the losses
    from discontinued operations, interest and other expenses, for the three
    and nine months ended December 31, 2006 was $6,162,000 and $14,704,000,
    respectively compared to losses of $2,037,000 and $13,787,000 in the year
    ago periods.

--  At December 31, 2006, the Company had installed 1,693 digital cinema
    systems and 2,036 as of Wednesday 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, February 9, 2007. The conference can be accessed by dialing 913.981.5559 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 1:00 p.m. eastern at 719.457.0820, passcode 6964770. The replay will be accessible through Thursday, February 15th.

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 Library Management Server, Theatre Command Center and Exhibitor Management System provide exhibitors with all the tools needed to transition to digital cinema. Access Integrated Technologies(R) and AccessIT(TM) 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) 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
                                                        December 31,
                                                  ------------------------
                                                      2005         2006
                                                  -----------  -----------
Revenues                                          $     2,751  $    12,783
Costs and expenses:
Direct operating                                        1,813        5,070
Selling, general and administrative                     2,098        5,597
Provision for doubtful accounts                             8          192
Research and development                                   37           95
Non-cash stock-based compensation                           -           50
Depreciation and amortization                             807        4,613
                                                  -----------  -----------
     Total operating expenses                           4,763       15,617
                                                  -----------  -----------
Loss from continuing operations                        (2,012)      (2,834)
Interest income                                            96          183
Interest expense                                         (313)      (2,087)
Non-cash interest expense                                 (32)        (922)
Debt conversion expense                                  (125)           -
Other income (expense), net                               414            4
                                                  -----------  -----------
Loss before income tax benefit and discontinued
 operations                                            (1,972)      (5,656)
Income tax benefit                                         69           69
                                                  -----------  -----------
Net loss from continuing operations                    (1,903)      (5,587)
                                                  -----------  -----------
Loss from discontinued operations                        (134)        (575)
                                                  -----------  -----------
Net loss                                          $    (2,037) $    (6,162)
                                                  ===========  ===========
Loss per common share - Basic and diluted:
Loss from continuing operations                   $     (0.12) $     (0.23)
Loss from discontinued operations                       (0.01)       (0.03)
                                                  -----------  -----------
Net loss per common share - Basic and diluted     $     (0.13) $     (0.26)
                                                  ===========  ===========
Weighted average number of common shares
 outstanding:
     Basic and diluted                             15,399,530   23,932,736
                                                  ===========  ===========
Certain reclassifications of prior period data have been made to conform to
the current presentation.
                      ACCESS INTEGRATED TECHNOLOGIES, INC.
                     EBITDA and Adjusted EBITDA (as defined)
                       Reconciliation to GAAP Net Income
                           (In thousands) (Unaudited)
                                                        Three Months Ended
                                                           December 31,
                                                        ------------------
                                                          2005      2006
                                                        --------  --------
Net loss from continuing operations                     $ (1,903) $ (5,587)
Add Back:
  Depreciation and amortization                              807     4,613
  Amortization of software development                       138       273
  Interest income                                            (96)     (183)
  Interest expense                                           313     2,087
  Non-cash interest expense                                   32       922
  Debt conversion expense                                    125         -
  Other (income) expense, net                               (414)       (4)
  Income tax benefit                                         (69)      (69)
                                                        --------  --------
EBITDA (as defined) from continuing operations          $ (1,067) $  2,052
                                                        ========  ========
Add Back:
  Non-cash stock-based compensation                            -        50
                                                        --------  --------
Adjusted EBITDA (as defined) from continuing operations $ (1,067) $  2,102
                                                        ========  ========
                      ACCESS INTEGRATED TECHNOLOGIES, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
              (In thousands, except for share and per share data)
                                (Unaudited)
                                                      Nine Months Ended
                                                        December 31,
                                                  ------------------------
                                                      2005         2006
                                                  -----------  -----------
Revenues                                          $     7,377  $    25,396
Costs and expenses:
Direct operating                                        5,147       10,813
Selling, general and administrative                     5,755       11,691
Provision for doubtful accounts                            18          271
Research and development                                  324          274
Non-cash stock-based compensation                           -        2,820
Depreciation and amortization                           2,332        9,216
                                                  -----------  -----------
     Total operating expenses                          13,576       35,085
                                                  -----------  -----------
Loss from continuing operations                        (6,199)      (9,689)
Interest income                                           180          627
Interest expense                                       (1,836)      (3,191)
Non-cash interest expense                              (1,325)        (968)
Debt conversion expense                                (6,208)           -
Other income (expense), net                             1,648         (195)
                                                  -----------  -----------
Loss before income tax benefit and discontinued
 operations                                           (13,740)     (13,416)
Income tax benefit                                        207          207
                                                  -----------  -----------
Net loss from continuing operations                   (13,533)     (13,209)
                                                  -----------  -----------
Loss from discontinued operations                        (254)      (1,495)
                                                  -----------  -----------
Net loss                                          $   (13,787) $   (14,704)
                                                  ===========  ===========
Loss per common share - Basic and diluted:
Loss from continuing operations                   $     (1.05) $     (0.56)
Loss from discontinued operations                       (0.02)       (0.07)
                                                  -----------  -----------
Net loss per common share - Basic and diluted     $     (1.07) $     (0.63)
                                                  ===========  ===========
Weighted average number of common shares
 outstanding:
     Basic and diluted                             12,926,709   23,462,793
                                                  ===========  ===========
Certain reclassifications of prior period data have been made to conform to
the current presentation.
                      ACCESS INTEGRATED TECHNOLOGIES, INC.
                     EBITDA and Adjusted EBITDA (as defined)
                       Reconciliation to GAAP Net Income
                           (In thousands) (Unaudited)
                                                        Nine Months Ended
                                                          December 31,
                                                      --------------------
                                                        2005       2006
                                                      ---------  ---------
Net loss from continuing operations                   $ (13,533) $ (13,209)
Add Back:
  Depreciation and amortization                           2,332      9,216
  Amortization of software development                      434        598
  Interest income                                          (180)      (627)
  Interest expense                                        1,836      3,191
  Non-cash interest expense                               1,325        968
  Debt conversion expense                                 6,208          -
  Other (income) expense, net                            (1,648)       195
  Income tax benefit                                       (207)      (207)
                                                      ---------  ---------
EBITDA (as defined) from continuing operations        $  (3,433) $     125
                                                      =========  =========
Add Back:
  Non-cash stock-based compensation                           -      2,820
                                                      ---------  ---------
Adjusted EBITDA (as defined) from continuing
 operations                                           $  (3,433) $   2,945
                                                      =========  =========
                  Access Integrated Technologies, Inc.
                      Consolidated Balance Sheets
                 (In thousands, except for share data)
                                               March 31,      December 31,
                                                 2006             2006
                                              -----------     -----------
                    ASSETS                     (Audited)      (Unaudited)
Current assets
   Cash and cash equivalents                  $    36,641     $    55,382
   Investment securities, available-for-sale       24,000               -
   Accounts receivable, net                         1,132          14,167
   Unbilled revenue, current portion                1,492           1,922
   Prepaid and other current assets                   627           1,777
   Notes receivable, current portion                   43              79
   Current assets of discontinued operations        4,756           5,063
                                              -----------     -----------
Total current assets                               68,691          78,390
   Deposits on property and equipment               8,673           9,879
   Property and equipment, net                     32,434         156,807
   Intangible assets, net                           1,802          14,983
   Capitalized software costs, net                  1,680           2,895
   Goodwill                                         9,123          15,556
   Accounts receivable, net of current portion          -             215
   Deferred costs                                     148           4,138
   Notes receivable, net of current portion         1,122           1,245
   Unbilled revenue, net of current portion            42             890
   Security deposits                                   52              80
   Restricted cash                                    180             180
                                              -----------     -----------
Total assets                                  $   123,947     $   285,258
                                              ===========     ===========
     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
   Accounts payable and accrued expenses      $    13,249     $    31,523
   Current portion of notes payable                 1,203           2,290
   Current portion of customer security
    deposits                                          105              83
   Current portion of capital leases                   84              74
   Current portion of deferred revenue                738           7,920
   Current liabilities of discontinued
    operations                                      1,360           1,200
                                              -----------     -----------
Total current liabilities                          16,739          43,090
   Notes payable, net of current portion            1,948         136,933
   Deferred revenue, net of current portion             -           1,266
   Capital leases, net of current portion           5,978           5,924
   Deferred tax liability                             801             593
                                              -----------     -----------
Total liabilities                                  25,466         187,806
                                              -----------     -----------
Commitments and contingencies
Stockholders' equity:
   Class A common stock, $0.001 par value per
    share; 40,000,000 shares authorized;
    22,059,567 and 23,334,725 shares issued
    and 22,008,127 and 23,283,285 shares
    outstanding at March 31, 2006 and
    December 31, 2006, respectively                    22              23
   Class B common stock, $0.001 par value per
    share; 15,000,000 shares authorized;
    925,811 and 763,811 shares issued and
    outstanding, at March 31, 2006 and
    December 31, 2006, respectively                     1               1
   Additional paid-in capital                     136,929         150,603
   Treasury Stock, at cost; 51,440 Class A
    shares                                           (172)           (172)
   Accumulated deficit                            (38,299)        (53,003)
                                              -----------     -----------
Total stockholders' equity                         98,481          97,452
                                              -----------     -----------
Total liabilities and stockholders' equity    $   123,947     $   285,258
                                              ===========     ===========
Certain reclassifications of prior period data have been made to conform to
the current presentation.

Contact:

Suzanne Moore
AccessIT
973.290.0080
Contact via http://www.marketwire.com/mw/emailprcntct?id=6CA0B2121729C042


SOURCE: Access Integrated Technologies

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