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Friday, November 09, 2007

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

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. 9 /PRNewswire-FirstCall/ -- 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.

CONTACT: Suzanne Moore of AccessIT, +1-973-290-0080 or
smoore@accessitx.com

Web site:

http://www.accessitx.com/


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