November 9, 2007

Access Integrated Technologies, Inc. Announces Fiscal 2008 Second Quarter Results

- Revenue Growth and Adjusted EBITDA Margin Increase Continues, Driven by Virtual Print Fees and Leveraging Customer Relationships -

MORRISTOWN, N.J., Nov 09, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 95% increase in revenues, to a record $19.5 million for the fiscal 2008 second quarter ended September 30, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $6.9 million or $0.27 per basic and diluted share, and a net loss of $9.3 million or $0.37 per basic and diluted share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing and stock-based compensation aggregating $10.4 million or $0.41 per basic and diluted share.

    Second Fiscal Quarter Highlights

    -- Revenues for the second quarter increased by 95%, to $19.5 million from
       $10 million and for the six months ended September 30th increased 142%
       to $37.6 million from $15.5 million in the comparable year ago periods
       respectively.  These increases were driven largely by Virtual Print Fee
       ("VPF") revenues, delivery fees, software license fees for our Theatre
       Command Center(TM) software and contributions from our Advertising and
       Creative Services Division (ACS) and The Bigger Picture, our
       alternative content distribution division.

    -- The increases in Adjusted EBITDA(1), year-to-date to $13 million from
       $534 thousand and in the second quarter to $6.9 million from $752
       thousand in the comparable year ago periods respectively, were
       primarily due to the increased revenues as described above, partially
       offset by increased operating and SG&A expenses resulting from the
       acquisitions of ACS and The Bigger Picture.

    -- Loss From Operations in the September 2007 quarter decreased to $1.3
       million from a loss of $5.3 million 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 ACS and The Bigger Picture.  Non-
       cash charges included in loss from operations for the year aggregated
       $18.9 million.

    -- Gross Margin (revenue less direct operating expenses) continues to be
       over 60% in this second quarter.

    -- Adjusted EBITDA(1) margins improved from 8% in the prior year's second
       quarter, and from 34% in our recently completed first quarter, to 35%
       in this quarter.

    -- As of September 30, 2007, the Company had installed 3,259 digital
       cinema systems.

    -- Growth of the Company's satellite network to 170 sites in 40 states
       helped to drive 26% growth in second quarter delivery revenues versus
       the previous quarter despite digital screen count increase on average
       of 15.6% in the same period.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "the second quarter and most recent weeks have marked an inflection point for AccessIT. We've successfully completed our Phase One digital cinema deployment plan and are gearing up to provide another 10,000 screens to exhibitors in the coming three years. In addition to the expected ramp of revenues from our recently installed screens in our next two quarters, revenue opportunities in three of our four other divisions are also being realized and The Bigger Picture is gearing up to provide a consistent flow of content beginning in the last quarter of our Fiscal year."

CONFERENCE CALL NOTIFICATION

AccessIT will host a conference call to discuss its financial results at 1:00 p.m. EST on Friday, November 9, 2007. The conference can be accessed by dialing 913.981.4901, 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 4:00 p.m. eastern at 719.457.0820 or 888.203.1112, passcode 5884602. The replay will be accessible through Friday, November 16th.

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(TM) and Theatre Command Center(TM) have enabled theatres across the United States to play more than three and a half million digital 2-D and 3-D showings of Hollywood features to date. AccessIT's comprehensive vendor neutral solutions provide pre-show entertainment, feature movies and live and pre-recorded alternative content via satellite to expand box office sales and develop new ways to attract incremental revenues. Through its alternative content distribution division, The Bigger Picture, AccessIT offers channels of programming including Kidtoons, Faith Based, Music, High Octane Sports and Anime. 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
    AccessIT
    973.290.0080
    smoore@accessitx.com

    (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.



                     ACCESS INTEGRATED TECHNOLOGIES, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands, except for share and per share data)
                                 (Unaudited)

                                                     Three Months Ended
                                                        September 30,
                                                      2006         2007
                                                  (Restated)
    Revenues                                         $9,965      $19,466

    Costs and expenses:
    Direct operating (exclusive of depreciation
     and amortization shown below)                   5,194        6,984
    Selling, general and administrative              3,922        5,479
    Provision for doubtful accounts                    110          184
    Research and development                           156          100
    Stock-based compensation                         2,779          112
    Depreciation of property and equipment           2,923        6,805
    Amortization of intangible assets                  179        1,069
        Total operating expenses                    15,263       20,733

    Loss from operations                            (5,298)      (1,267)

    Interest income                                    135          405
    Interest expense                                  (849)      (5,988)
    Non-cash interest expense                          (23)      (1,095)
    Debt refinancing expense                             -       (1,122)
    Other income (expense), net                        (61)        (190)

    Net loss                                       $(6,096)     $(9,257)

    Net loss per common share - Basic and diluted  $ (0.26)      $(0.37)
    Weighted average number of common shares
     outstanding:
       Basic and diluted                        23,613,396   25,338,550


 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
                                                         September 30,
                                                       2006         2007
    Net loss                                        $(6,096)     $(9,257)
    Add Back:
      Amortization of software development              169          166
      Depreciation of property and equipment          2,923        6,805
      Amortization of intangible assets                 179        1,069
      Interest income                                  (135)        (405)
      Interest expense                                  849        5,988
      Non-cash interest expense                          23        1,095
      Debt refinancing expense                            -        1,122
      Other (income) expense, net                        61          190
      Stock-based compensation                        2,779          112
    Adjusted EBITDA (as defined)                       $752       $6,885



                     ACCESS INTEGRATED TECHNOLOGIES, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands, except for share and per share data)
                                 (Unaudited)

                                                      Six Months Ended
                                                         September 30,
                                                      2006         2007
                                                  (Restated)
    Revenues                                        $15,541      $37,612
    Costs and expenses:
    Direct operating (exclusive of depreciation
     and amortization shown below)                    8,616       13,190
    Selling, general and administrative               6,408       11,037
    Provision for doubtful accounts                     129          370
    Research and development                            179          323
    Stock-based compensation                          2,779          199

    Depreciation of property and equipment            4,774       12,930
    Amortization of intangible assets                   371        2,139
        Total operating expenses                     23,256       40,188

    Loss from operations                             (7,715)      (2,576)

    Interest income                                     444          726
    Interest expense                                 (1,152)     (10,646)
    Non-cash interest expense                           (46)      (2,181)
    Debt refinancing expense                              -       (1,122)
    Other income (expense), net                        (229)        (301)

    Net loss                                        $(8,698)    $(16,100)

    Net loss per common share - Basic and diluted   $ (0.37)     $ (0.64)
    Weighted average number of common shares
     outstanding:
       Basic and diluted                         23,288,537   25,050,081


 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)

                                                       Six Months Ended
                                                         September 30,
                                                      2006         2007
    Net loss                                        $(8,698)   $ (16,100)
    Add Back:
      Amortization of software development              325          295
      Depreciation of property and equipment          4,774       12,930
      Amortization of intangible assets                 371        2,139
      Interest income                                  (444)        (726)
      Interest expense                                1,152       10,646
      Non-cash interest expense                          46        2,181
      Debt refinancing expense                            -        1,122
      Other (income) expense, net                       229          301
      Stock-based compensation                        2,779          199
    Adjusted EBITDA (as defined)                       $534      $12,987



                     ACCESS INTEGRATED TECHNOLOGIES, INC.
                         CONSOLIDATED BALANCE SHEETS
                    (In thousands, except for share data)
                                 (Unaudited)

                                                     March 31,   September 30,
                                                       2007          2007
                              ASSETS
    Current assets
      Cash and cash equivalents                      $29,376        $52,353
      Accounts receivable, net                        18,504         20,111
      Unbilled revenue, current portion                2,324          5,718
      Prepaid and other current assets                 1,988          6,587
      Notes receivable, current portion                  101            167
    Total current assets                              52,293         84,936

      Deposits on property and equipment               8,513          1,273
      Property and equipment, net                    197,452        248,509
      Intangible assets, net                          19,432         17,331
      Capitalized software costs, net                  2,840          3,081
      Goodwill                                        13,249         14,420
      Accounts receivable, net of current portion        248            192
      Deferred costs                                   4,627          5,647
      Notes receivable, net of current portion         1,227          1,400
      Unbilled revenue, net of current portion         1,221          1,381
      Security deposits                                  445            430
      Restricted cash                                    180            180
    Total assets                                    $301,727       $378,780

               Liabilities and stockholders' equity

    Current liabilities
      Accounts payable and accrued expenses          $28,931        $25,801
      Current portion of notes payable                 2,480         10,144
      Current portion of customer security deposits      129            342
      Current portion of capital leases                   75             82
      Current portion of deferred revenue              8,871         10,543
    Total current liabilities                         40,486         46,912

      Notes payable, net of current portion          164,196        242,715
      Customer security deposits, net of current
       portion                                            54             51
      Deferred revenue, net of current portion           283            177
      Capital leases, net of current portion           5,903          5,861
    Total liabilities                                210,922        295,716

    Commitments and contingencies

    Stockholders' equity:
     Class A common stock, $0.001 par value per share;
      40,000,000 shares authorized; 23,988,607 and
      25,219,096 shares issued and 23,937,167 and
      25,167,656 shares outstanding at March 31, 2007
      and September 30, 2007, respectively                24             25
     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
      September 30, 2007                                   1              1
     Additional paid-in capital                      155,957        164,315
     Treasury Stock, at cost; 51,440 Class A shares     (172)          (172)
     Accumulated deficit                             (65,005)       (81,105)
    Total stockholders' equity                        90,805         83,064

    Total liabilities and stockholders' equity      $301,727       $378,780


 Certain reclassifications of prior period data have been made to conform to
                          the current presentation.

SOURCE Access Integrated Technologies, Inc.

http://www.accessitx.com

Copyright (C) 2007 PR Newswire. All rights reserved

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