MORRISTOWN, N.J., Aug 09, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 225% increase in revenues, to a record $18,146,000 for the first quarter of fiscal 2008 ended June 30, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $6,102,000, and a net loss of $6,843,000 or $0.28 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets and software development, non-cash interest and stock based compensation aggregating $8,497,000 or $0.34 per basic and diluted share.
First Fiscal Quarter Highlights -- Revenues for the first quarter increased by 225%, to $18,146,000 from $5,576,000 in the comparable year ago period driven largely by VPF revenues, delivery fees, software license fees for our Theatre Command Centre(TM) software and contributions from our acquisitions of UniqueScreen Media and The Bigger Picture. -- The increase in Adjusted EBITDA(1) was primarily due to the increased revenues as described above, partially offset by increased operating and SG&A expenses resulting from the acquisitions of USM and The Bigger Picture. -- Loss From Operations in the June 2007 quarter decreased to $1,309,000, from a loss of $2,417,000 in the year ago period. The decreased loss was due primarily to higher revenues partially offset by increased depreciation and additional amortization of intangible assets resulting from the acquisitions of UniqueScreen Media and The Bigger Picture. Non-cash charges included in loss from operations for the year aggregated $7,411,000. -- Gross Margin (revenue less direct operating expenses) increased from 60% in our recently completed fourth quarter to 66% in this first quarter. -- Adjusted EBITDA(1) margins improved from negative 4% in the prior year's first quarter, and from 19% in our recently completed fourth quarter, to 34% in this quarter. -- As of June 30, 2007, the Company had installed 2,692 digital cinema systems and 2,851 as of July 31, 2007 and intends to complete 4,000 digital cinema systems installations by October 31, 2007.
Bud Mayo, Chief Executive Officer of AccessIT, stated, "the first quarter outcome shows our increased focus on internal growth and bottom-line improvements. The continued success of our digital cinema deployment is helping to feed the growth of our four other divisions. We anticipate that increases in revenues and Adjusted EBITDA margins along with decreases in Loss from operations will continue throughout this Fiscal year."
(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. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of its fundamental business activities. A reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles ("GAAP") net income is included in the table attached to this release. Adjusted 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.
CONFERENCE CALL NOTIFICATION
AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EDT on Thursday, August 9, 2007. The conference can be accessed by dialing 913.981.5550, 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 or 888.203.1112, passcode 8182348. The replay will be accessible through Thursday, August 16th.
Access Integrated Technologies, Inc. (AccessIT) provides theater operators the first and only studio-backed digital cinema system delivering nearly three million digital screenings of Hollywood feature films to date. The company's fully networked digital cinema system provides feature films and alternative content via satellite to expand box office sales and develop new ways to attract incremental revenues. Through its alternative content division, The Bigger Picture, AccessIT offers channels of programming including Kidtoon, Faith Based, Music and Anime. The ongoing 4,000-screen deployment is the largest of its kind in the world. 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.
Contact: Suzanne Moore Trent Freeman AccessIT Casey Sayre & Williams 973.290.0080 (310) 396-2400 firstname.lastname@example.org ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share data) (Unaudited) Three Months Ended June 30, 2006 2007 (Restated) Revenues $5,576 $18,146 Costs and expenses: Direct operating 3,422 6,206 Selling, general and administrative 2,486 5,558 Provision for doubtful accounts 19 186 Research and development 23 223 Stock-based compensation - 87 Depreciation of property and equipment 1,851 6,125 Amortization of intangible assets 192 1,070 Total operating expenses 7,993 19,455 Loss from operations (2,417) (1,309) Interest income 309 321 Interest expense (303) (4,658) Non-cash interest expense (23) (1,086) Other income (expense), net (168) (111) Net loss $(2,602) $(6,843) Net loss per common share - Basic and diluted $(0.11) $(0.28) Weighted average number of common shares outstanding: Basic and diluted 22,960,108 24,758,441
Certain reclassifications of prior period data have been made to conform to
the current presentation. Access Integrated Technologies, Inc. Adjusted EBITDA (as defined) Reconciliation to GAAP Net Income (In thousands) (Unaudited) Three Months Ended June 30, 2006 2007 Net loss $(2,602) $(6,843) Add Back: Amortization of software development 156 129 Depreciation of property and equipment 1,851 6,125 Amortization of intangible assets 192 1,070 Interest income (309) (321) Interest expense 303 4,658 Non-cash interest expense 23 1,086 Other (income) expense, net 168 111 Stock-based compensation - 87 Adjusted EBITDA (as defined) $(218) $6,102 ACCESS INTEGRATED TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except for share data) (Unaudited) March 31, June 30, 2007 2007 ASSETS Current assets Cash and cash equivalents $29,376 $28,049 Investment securities, available-for-sale - 1,500 Accounts receivable, net 18,504 20,299 Unbilled revenue, current portion 2,324 2,054 Prepaid and other current assets 1,988 2,097 Notes receivable, current portion 101 213 Total current assets 52,293 54,212 Deposits on property and equipment 8,513 5,000 Property and equipment, net 197,452 222,986 Intangible assets, net 19,432 18,324 Capitalized software costs, net 2,840 2,994 Goodwill 13,249 13,761 Accounts receivable, net of current portion 248 248 Deferred costs 4,627 4,510 Notes receivable, net of current portion 1,227 1,108 Unbilled revenue, net of current portion 1,221 1,278 Security deposits 445 428 Restricted cash 180 180 Total assets $301,727 $325,029 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $28,931 $22,566 Current portion of notes payable 2,480 24,325 Current portion of customer security deposits 129 340 Current portion of capital leases 75 78 Current portion of deferred revenue 8,871 8,198 Total current liabilities 40,486 55,507 Notes payable, net of current portion 164,196 177,767 Customer security deposits, net of current portion 54 53 Deferred revenue, net of current portion 283 177 Capital leases, net of current portion 5,903 5,882 Total liabilities 210,922 239,386 Commitments and contingencies Stockholders' equity: Class A common stock, $0.001 par value per share; 40,000,000 shares authorized; 23,988,607 and 24,207,564 shares issued and 23,937,167 and 24,156,124 shares outstanding at March 31, 2007 and June 30, 2007, respectively 24 24 Class B common stock, $0.001 par value per share; 15,000,000 shares authorized; 763,811 shares issued and outstanding, at March 31, 2007 and June 30, 2007, respectively 1 1 Additional paid-in capital 155,957 157,638 Treasury Stock, at cost; 51,440 Class A shares (172) (172) Accumulated deficit (65,005) (71,848) Total stockholders' equity 90,805 85,643 Total liabilities and stockholders' equity $301,727 $325,029
Certain reclassifications of prior period data have been made to conform to the current presentation.
SOURCE Access Integrated Technologies, Inc.
Suzanne Moore of AccessIT, +1-973-290-0080, email@example.com; or Trent Freeman Casey of Sayre & Williams, +1-310-396-2400, for AccessIT
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