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

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

- Continued Revenue Growth and Increase in Adjusted EBITDA Margin -

MORRISTOWN, N.J., Feb. 8 /PRNewswire-FirstCall/ -- 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.

(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.

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(TM) software and Library Management Server(TM) 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(TM) and Theatre Command Center(TM) 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(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.

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.

Contact:
Suzanne Moore
AccessIT
973.290.0080
smoore@accessitx.com

First Call Analyst:
FCMN Contact:

Source: Access Integrated Technologies, Inc.

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

Web site:

http://www.accessitx.com/

-------
Profile: intent