June 12, 2008

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

- Shows Continued Revenue Growth; Improved Operating Results and Adjusted EBITDA Margins -

MORRISTOWN, N.J., June 12, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 72% increase in revenues, to a record $81 million for the fiscal 2008 year ended March 31, 2008, versus the year-ago period. The Company posted an Adjusted EBITDA(1) (defined below) of $30.3 million or $1.19 per share, and a net loss of $35.7 million or $1.39 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing, impairment of intangible assets and stock-based compensation aggregating $44.4 million or $1.74 per share.

The Company reported a 26% increase in revenues versus the year-ago period to a record $21.9 million for the fiscal 2008 fourth quarter ended March 31, 2008. In the quarter, the Company posted an Adjusted EBITDA of $8.9 million or $0.34 per share, and a net loss of $11.2 million or $0.43 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, impairment of intangible assets and stock-based compensation aggregating $14.5 million or $0.55 per share.

    Fourth Fiscal Quarter and Fiscal Year Highlights

    -- Revenues for the fourth quarter increased by 26%, to $21.9 million from
       $17.3 million, and for the fiscal year ended March 31, 2008 by 72% to
       $81.0 million from $47.1 million in the comparable year ago periods
       respectively.  These increases were driven largely by gains in the
       media services segment, including record levels of Virtual Print Fees
       ("VPF"), increased media delivery fees in our satellite unit and a full
       year of ownership of UniqueScreen Media.
    -- Adjusted EBITDA(1) increased year-to-date to $30.3 million from $6.0
       million and in the fourth quarter to $8.9 million from $3.4 million in
       the comparable year ago periods respectively.
    -- Loss from Operations for the fourth quarter decreased to $2.4 million
       from a loss of $6.9 million in the year ago period.  This improvement
       was due primarily to higher revenues and reductions in direct operating
       and selling, general and administrative expenses.  Additionally, fiscal
       2007's non-recurring loss on disposition of assets was partially offset
       by a one-time charge for impairment of intangible assets in fiscal
       2008.
    -- Gross Profit Margin (revenue less direct operating expenses) continued
       to be more than 60% in each of the four quarters for fiscal 2008.
    -- Adjusted EBITDA(1) margins improved from 20% in the prior year's fourth
       quarter, and from 39% in our recently completed third quarter, to 41%
       in this quarter.  Year-over-year Adjusted EBITDA margins improved from
       13% in fiscal 2007 to 37% in fiscal 2008.
    -- Growth of the Company's satellite network to 254 multiplex sites in 40
       states helped to drive 106% growth in fiscal 2008 delivery revenues
       versus the previous year.


Bud Mayo, Chief Executive Officer of AccessIT, stated, "Fiscal 2008 was a year of great achievement for AccessIT. Among the many accomplishments in our Media Services Segment, we completed our Phase 1 digital cinema deployment of more than 3,700 screens, announced our Phase 2 deployment of an additional 10,000 screens and, in connection with our Phase 2 rollout, we have already entered into definitive agreements with four of the six major studios up to provide content and to pay VPFs. We also executed our first live satellite-delivered event with Disney/ESPN as our partner, expanded our satellite network to 254 multiplex sites covering 109 markets, and signed our first international agreement with Doremi Labs Inc. to provide our Theatre Command Center(TM) software and Library Management Server(TM) to customers internationally. In the Content and Entertainment segment, we signed an exclusive agreement with the San Francisco Opera to bring their performances to theatres throughout the world, and expanded our popular music and Kidtoons offerings. The Advertising and Creative Services unit has been through a major shift and we hope will be able to provide incremental national advertising to all of its screens during fiscal 2009. On the financing side, effective August 1, 2008, we have reduced the interest rate on $200 million of our outstanding GE debt by 2.5 percent to 7.3 percent, and continue to make progress on our refinancing efforts for our Phase 1 debt facility as well as preparations for the financing of Phase 2."

CONFERENCE CALL NOTIFICATION

AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EDT on Thursday, June 12, 2008. The conference can be accessed by dialing 719.325.4863, 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 6749916. The replay will be accessible through Thursday, June 19th.

Access Integrated Technologies, Inc. (AccessIT) is the global leader in providing integrated solutions for digital cinema with more than 3,700 digital cinema screens installed. The Company's ground-breaking digital cinema networked services along with its Library Management Server(R) and Theatre Command Center(R) have enabled theatres across the United States to play more than seven million digital showings of Hollywood features to date. AccessIT's 24/7 satellite operations delivers feature movies, alternative content advertising, and pre-show entertainment, including live 2-D and 3-D events through its CineLive(R) satellite network, expanding box office sales and developing 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, Concerts, 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-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.

    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
                                                           March 31,
                                                       2007          2008


    Revenues                                        $17,345       $21,892

    Costs and expenses:
    Direct operating (exclusive of depreciation
     and amortization shown below)                    7,015         6,771
    Selling, general and administrative               6,603         6,043
    Provision for doubtful accounts                     527           705
    Research and development                             56          (341)
    Stock-based compensation                             78            92
    Loss on disposition of assets                     2,561             -
    Impairment of intangible asset                        -         1,588
    Depreciation of property and equipment            5,224         8,335
    Amortization of intangible assets                 2,210         1,080
        Total operating expenses                     24,274        24,273

    Loss from operations                             (6,929)       (2,381)

    Interest income                                     798           232
    Interest expense                                 (4,706)       (8,797)
    Other income (expense), net                        (224)         (289)
    Net loss                                       $(11,062)     $(11,235)
    Net loss per common share - basic and diluted    $(0.46)       $(0.43)

    Weighted average number of common shares
     outstanding:
       Basic and diluted                         24,362,925    26,277,411

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
                                                           March 31,
                                                       2007          2008

    Net loss                                       $(11,062)     $(11,235)
    Add Back:
      Amortization of software development              242           210
      Depreciation of property and equipment          5,224         8,335
      Amortization of intangible assets               2,210         1,080
      Interest income                                  (798)         (232)
      Interest expense                                4,706         8,797
      Other (income) expense, net                       224           289
      Loss on disposition of assets                   2,561             -
      Impairment of intangible asset                      -         1,588
      Stock-based compensation                           78            92
    Adjusted EBITDA (as defined)                     $3,385        $8,924



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

                                                      Twelve Months Ended
                                                           March 31,
                                                       2007          2008

    Revenues                                        $47,110       $80,984

    Costs and expenses:
    Direct operating (exclusive of depreciation
     and amortization shown below)                   22,214        26,569
    Selling, general and administrative              18,565        23,170
    Provision for doubtful accounts                     848         1,396
    Research and development                            330           162
    Stock-based compensation                          2,920           453
    Loss on disposition of assets                     2,561             -
    Impairment of intangible asset                        -         1,588
    Depreciation of property and equipment           14,699        29,285
    Amortization of intangible assets                 2,773         4,290
        Total operating expenses                     64,910        86,913

    Loss from operations                            (17,800)       (5,929)

    Interest income                                   1,425         1,406
    Interest expense                                 (9,176)      (29,327)
    Debt refinancing expense                              -        (1,122)
    Other income (expense), net                        (448)         (715)
    Net loss                                       $(25,999)     $(35,687)
    Net loss per common share - basic and diluted    $(1.10)       $(1.39)

    Weighted average number of common shares
     outstanding:
       Basic and diluted                         23,729,763    25,576,787

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)

                                                      Twelve Months Ended
                                                           March 31,
                                                       2007          2008

    Net loss                                       $(25,999)     $(35,687)
    Add Back:
      Amortization of software development              840           658
      Depreciation of property and equipment         14,699        29,285
      Amortization of intangible assets               2,773         4,290
      Interest income                                (1,425)       (1,406)
      Interest expense                                9,176        29,327
      Other (income) expense, net                       448           715
      Loss on disposition of assets                   2,561             -
      Debt refinancing expense                            -         1,122
      Impairment of intangible asset                      -         1,588
      Stock-based compensation                        2,920           453
    Adjusted EBITDA (as defined)                     $5,993       $30,345



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

                                                  March 31,      March 31,
                                                     2007          2008
                     ASSETS

    Current assets
      Cash and cash equivalents                     $29,376        $29,655
      Accounts receivable, net                       18,504         21,494
      Unbilled revenue, current portion               2,324          6,393
      Deferred costs                                  2,318          3,859
      Prepaid and other current assets                  993          1,316
      Notes receivable, current portion                 101            158
    Total current assets                             53,616         62,875

      Deposits on property and equipment              8,513          3,802
      Property and equipment, net                   197,452        269,031
      Intangible assets, net                         19,432         13,592
      Capitalized software costs, net                 2,840          2,777
      Goodwill                                       13,249         14,549
      Accounts receivable, net of current portion       248            299
      Deferred costs                                  3,304          6,595
      Notes receivable, net of current portion        1,227          1,220
      Unbilled revenue, net of current portion        1,221          2,075
      Security deposits                                 445            408
      Restricted cash                                   180            255
    Total assets                                   $301,727       $377,478


         LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities
      Accounts payable and accrued expenses         $28,931        $29,015
      Current portion of notes payable                2,480         16,998
      Current portion of deferred revenue             8,871          6,204
      Current portion of customer security deposits     129            333
      Current portion of capital leases                  75             89
    Total current liabilities                        40,486         52,639

      Notes payable, net of current portion         164,196        250,689
      Capital leases, net of current portion          5,903          5,814
      Deferred revenue, net of current portion          283            283
      Customer security deposits, net of current         54             46
       portion
    Total liabilities                               210,922        309,471

    Commitments and contingencies

    Stockholders' equity:
      Class A common stock, $0.001 par value per
       share; 40,000,000 shares authorized;
       23,988,607 and 26,143,612 issued and 23,937,167
       and 26,092,172 shares outstanding at March 31,
       2007 and March 31, 2008, 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 March 31, 2008,
       respectively                                       1              1
      Additional paid-in capital                    155,957        168,844
      Treasury Stock, at cost; 51,440 Class A shares   (172)          (172)
      Accumulated deficit                           (65,005)      (100,692)
    Total stockholders' equity                       90,805         68,007
                                                   $301,727       $377,478

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

SOURCE Access Integrated Technologies, Inc.

http://www.accessitx.com

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