February 8, 2008

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

- Continued Revenue Growth and Increase in Adjusted EBITDA Margin -

MORRISTOWN, N.J., Feb 08, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 51% increase in revenues, to a record $21.5 million for the fiscal 2008 third quarter ended December 31, 2007, versus the year-ago period. In the quarter, the Company posted an Adjusted EBITDA(1) (defined below) of $8.4 million or $0.33 per share, and a net loss of $8.4 million or $0.32 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing and stock-based compensation aggregating $11.1 million or $0.43 per share.

    Third Fiscal Quarter Highlights

    -- Revenues for the third quarter increased by 51%, to $21.5 million from
       $14.2 million, and for the nine months ended December 31st by 99% to
       $59.1 million from $29.8 million in the comparable year ago periods
       respectively.  These increases were driven largely by gains in the
       media services segment, including Virtual Print Fees ("VPF").

    -- The increases in Adjusted EBITDA(1), year-to-date to $21.4 million from
       $2.6 million and in the third quarter to $8.4 million from $2.1 million
       in the comparable year ago periods respectively, were primarily due to
       the increased revenues, partially offset by increased operating and
       SG&A expenses resulting from the acquisitions of AccessIT Advertising
       and Creative Services ("ACS") in July 2006 and The Bigger Picture in
       January 2007.

    -- Loss from Operations in the December 2007 quarter decreased to $1.0
       million from a loss of $3.2 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 $21.8 million.

    -- Gross Profit Margin (revenue less direct operating expenses) continues
       to be over 60% in this each of the three quarters for fiscal 2008.

    -- Adjusted EBITDA(1) margins improved from 15% in the prior year's third
       quarter, and from 35% in our recently completed second quarter, to 39%
       in this quarter.

    -- Growth of the Company's satellite network to 240 sites in 40 states
       helped to drive 15 percent growth in third quarter delivery revenues
       versus the previous quarter.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "The third quarter marks the completion of our Phase One deployment, a significant achievement unparalleled by any other company in the world. The platform that we have created with our first set of screens -- a total of more than 3,700 -- also provides our other divisions with revenue opportunities. Significant announcements like The Bigger Picture's signing of a multi-year agreement for content from the San Francisco Opera and the Software division's agreement with Doremi Labs Inc. to provide our Theatre Command Center software and Library Management Server to customers internationally are both indications of our progress in other aspects of our business. While we continue to progress toward long-term agreements with the major movie studios for our planned Phase Two digital cinema deployment, we remain focused on growing the businesses we expect to be the strength of this company long after the country's movie screens have been converted to digital cinema."

CONFERENCE CALL NOTIFICATION

AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EST on Friday, February 8, 2008. The conference can be accessed by dialing 913-312-0865, 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 5363043. The replay will be accessible through Friday, February 15th.

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 have enabled theatres across the United States to play almost five 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 Opera, Kidtoons, Faith Based, Music, High Octane 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-Q 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.

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

                                                      Three Months Ended
                                                         December 31,
                                                       2006          2007
                                                     (Restated)

    Revenues                                        $14,224       $21,480

    Costs and expenses:
    Direct operating (exclusive of depreciation
     and amortization shown below)                    6,583         6,608
    Selling, general and administrative               5,554         6,090
    Provision for doubtful accounts                     192           321
    Research and development                             95           180
    Stock-based compensation                             63           162
    Depreciation of property and equipment            4,701         8,020
    Amortization of intangible assets                   191         1,071
        Total operating expenses                     17,379        22,452

    Loss from operations                             (3,155)         (972)

    Interest income                                     183           448
    Interest expense                                 (3,271)       (7,703)
    Other income (expense), net                           4          (125)
    Net loss                                        $(6,239)      $(8,352)
    Net loss per common share - basic and diluted   $ (0.26)      $ (0.32)

    Weighted average number of common shares
     outstanding:
         Basic and diluted                       23,932,736    25,931,467

    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
                                                         December 31,
                                                       2006          2007
                                                     (Restated)

    Net loss                                        $(6,239)      $(8,352)
    Add Back:
       Amortization of software development             273           153
       Depreciation of property and equipment         4,701         8,020
       Amortization of intangible assets                191         1,071
       Interest income                                 (183)         (448)
       Interest expense                               3,271         7,703
       Other (income) expense, net                       (4)          125
       Stock-based compensation                          63           162
    Adjusted EBITDA (as defined)                     $2,073        $8,434



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

                                                      Nine Months Ended
                                                         December 31,
                                                      2006          2007
                                                    (Restated)

    Revenues                                       $ 29,765      $ 59,092

    Costs and expenses:
    Direct operating (exclusive of depreciation
     and amortization shown below)                   15,199        19,798
    Selling, general and administrative              11,962        17,127
    Provision for doubtful accounts                     321           691
    Research and development                            274           503
    Stock-based compensation                          2,842           361
    Depreciation of property and equipment            9,475        20,950
    Amortization of intangible assets                   563         3,210
        Total operating expenses                     40,636        62,640

    Loss from operations                            (10,871)       (3,548)

    Interest income                                     627         1,174
    Interest expense                                 (4,469)      (20,530)
    Debt refinancing expense                              -        (1,122)
    Other income (expense), net                        (224)         (426)
    Net loss                                       $(14,937)     $(24,452)
    Net loss per common share - basic and diluted  $  (0.64)     $  (0.96)

    Weighted average number of common shares
     outstanding:
         Basic and diluted                       23,462,793    25,344,944

    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)

                                                     Nine Months Ended
                                                        December 31,
                                                      2006          2007
                                                   (Restated)

    Net loss                                       $(14,937)     $(24,452)
    Add Back:
       Amortization of software development             598           448
       Depreciation of property and equipment         9,475        20,950
       Amortization of intangible assets                563         3,210
       Interest income                                 (627)       (1,174)
       Interest expense                               4,469        20,530
       Debt refinancing expense                           -         1,122
       Other (income) expense, net                      224           426
       Stock-based compensation                       2,842           361
    Adjusted EBITDA (as defined)                   $  2,607      $ 21,421




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

                                                    March 31,    December 31,
                                                       2007          2007

                        ASSETS
    Current assets
      Cash and cash equivalents                      $ 29,376       $ 35,776
      Accounts receivable, net                         18,504         25,966
      Unbilled revenue, current portion                 2,324          6,635
      Deferred costs                                    2,318          3,832
      Prepaid and other current assets                    993          1,651
      Notes receivable, current portion                   101            183
    Total current assets                               53,616         74,043

    Deposits on property and equipment                  8,513          5,163
      Property and equipment, net                     197,452        275,631
      Intangible assets, net                           19,432         16,259
      Capitalized software costs, net                   2,840          3,095
      Goodwill                                         13,249         14,420
      Accounts receivable, net of current portion         248            192
      Deferred costs                                    3,304          7,340
      Notes receivable, net of current portion          1,227          1,387
      Unbilled revenue, net of current portion          1,221          1,367
      Security deposits                                   445            400
      Restricted cash                                     180            255
    Total assets                                     $301,727       $399,552


         LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
      Accounts payable and accrued expenses          $ 28,931       $ 39,580
      Current portion of notes payable                  2,480         15,527
      Current portion of deferred revenue               8,871          9,208
      Current portion of customer security deposits       129            346
      Current portion of capital leases                    75             86
    Total current liabilities                          40,486         64,747

      Notes payable, net of current portion           164,196        252,326
      Capital leases, net of current portion            5,903          5,838
      Deferred revenue, net of current portion            283            177
      Customer security deposits, net of current
       portion                                             54             47
    Total liabilities                                 210,922        323,135

    Commitments and contingencies

    Stockholders' equity:
      Class A common stock, $0.001 par value per
       share; 40,000,000 shares authorized;
       23,988,607 and 25,595,040 issued and
       23,937,167 and 25,543,600 shares outstanding
       at March 31, 2007 and December 31, 2007,
       respectively                                        24             26
      Class B common stock, $0.001 par value per
       share; 15,000,000 shares authorized;
       763,811 and 733,811 shares issued and
       outstanding at March 31, 2007 and December 31,
       2007, respectively                                   1              1
      Additional paid-in capital                      155,957        166,019
      Treasury Stock, at cost; 51,440 Class A shares     (172)          (172)
      Accumulated deficit                             (65,005)       (89,457)
    Total stockholders' equity                         90,805         76,417
                                                     $301,727       $399,552

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

Contact: Suzanne Moore AccessIT 973.290.0080 smoore@accessitx.com

SOURCE Access Integrated Technologies, Inc.

 
http://www.accessitx.com

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