June 11, 2009

Cinedigm Digital Cinema Corp. Announces Fiscal Year End 2009 and Fiscal 2009 Fourth Quarter Results

Fiscal Year 2009 Revenue Growth, Operating Income and Adjusted EBITDA Margin Improvements Continue, Record $39.4 Million Adjusted EBITDA for Fiscal Year 2009 and Strong Operating Cash Flow of $8.4 Million in Fiscal Fourth Quarter 2009, Fourth Quarter Driven by Planned Step-Down in Virtual Print Fees

MORRISTOWN, NJ, Jun 11, 2009 (MARKETWIRE via COMTEX News Network) -- Access Integrated Technologies, now doing business as Cinedigm Digital Cinema Corp. ("Cinedigm" or the "Company") (NASDAQ: CIDM), reported a 3% increase in fiscal year 2009 revenue to $83.0 million, and an 18% decrease in revenue, to $17.9 million for the fiscal 2009 fourth quarter ended March 31, 2009, versus the year-ago periods. The Company posted Adjusted EBITDA(1) (defined below) of $39.4 million for the fiscal year 2009, an improvement from fiscal year 2008 Adjusted EBITDA of $30.3 million. The net loss for the fiscal year 2009 of $37.4 million includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, stock-based expenses, stock-based compensation, impairment of goodwill and change in the fair value of interest rate swap aggregating $53.6 million or $1.95 per share compared to $44.4 million or $1.74 per share in the fiscal 2008 year-end. The Company generated positive cash flow from operations of $8.4 million in the fiscal 2009 fourth quarter and ended the fiscal year with over $26 million of cash on its balance sheet.

FISCAL YEAR 2009 AND FOURTH QUARTER HIGHLIGHTS

--  Fiscal year 2009 revenue increased by 3% to $83.0 million compared to
    $81.0 million in the prior year. The yearly improvement was driven largely
    by an increase in the media services segment, including increased Virtual
    Print Fees ("VPFs") as a result of a larger number of digital screens
    deployed and higher media delivery fees in our Digital Media Services
    ("DMS") delivery unit, offset by a decrease in our content and
    entertainment segment due primarily to the movement of several events to
    fiscal year 2010 and planned reductions in unprofitable pre-show
    advertising contracts.

--  Total fiscal year 2009 Media Services segment revenues of $59.0
    million and EBITDA of $46.8 million, versus prior year amounts of $53.9
    million and $38.8 million, respectively (before corporate allocation).

--  Total fiscal year 2009 Content and Entertainment segment revenue of
    $22.7 million and EBITDA loss of $0.5 million, versus prior year amounts of
    $25.8 million and loss of $1.2 million, respectively (before corporate
    allocation).

--  Fiscal 2009 fourth quarter revenue decreased by 18%, to $17.9 million
    from $21.9 million in the comparable year-ago period primarily due to a
    contracted 16% step-down in VPF rates and seasonally fewer titles and
    prints in the quarter. This contracted step-down in VPF rates charged to
    the major studios will stabilize with just one more contracted reduction of
    7% in the third quarter of fiscal 2012.

--  Fiscal year 2009 Loss From Operations improved to $4.9 million from a
    loss of $5.9 million in the prior year, due to increased revenues and
    reduced direct operating expenses and SG&A, offset by an impairment charge
    and increased depreciation. Loss From Operations for the fiscal 2009 fourth
    quarter decreased to $2.0 million, from a loss of $2.4 million in the
    comparable year-ago period, due to reduced operating expenses, offset by
    decreased revenues.

--  $5 million of annualized expense savings driven by a reduction in
    headcount and operating costs, with $2 million of the savings recognized in
    fiscal Year 2009

--  Adjusted EBITDA margins improved to 47% for fiscal Year 2009 from 37%
    in the prior year. Adjusted EBITDA margins remained at 41% in the fiscal
    2009 fourth quarter, the same margin as in the comparable year-ago period.


Bud Mayo, Chief Executive Officer of Cinedigm, stated, "The past year has been tremendously exciting for Cinedigm. Not only did we rebrand the company, but we also brought ground-breaking events to consumers and fans of college football and the NBA in the fourth quarter. Despite continuing economic challenges, I am confident that Cinedigm is in a strong position to capitalize on trends we are seeing in the resilient theatre industry, including the increasing demand for 3-D content. We look forward to continuing to play a leadership role in the transition of the exhibition industry to digital cinema and will leverage our leadership position to drive the growth in our system deployment, digital delivery, software and content and entertainment segments. We will also continue to work diligently to sustain our disciplined expense controls and will continue to find innovative ways to leverage our industry leading digital cinema platform in an effort to increase revenues organically with minimal use of capital."

PHASE 2 UPDATE

Mayo added, "We are optimistic about our intensifying efforts to secure financing for Phase 2 installations through third party lenders as well as our exhibitor and vendor partners which will generate ongoing fees and other key revenue streams for Cinedigm. To date we have installed 139 Phase 2 screens and approximately 3,900 screens in total."

FISCAL YEAR 2010 FINANCIAL GUIDANCE

All comments regarding fiscal year 2010 do not assume a large Phase 2 deployment or a large rollout by other entities, including DCIP, although the Company expects both to occur. Nevertheless, Cinedigm expects to produce double digit increases in revenues and EBITDA over fiscal year 2009 levels as a result of the full year impact of $5 million of expense savings, the overall increase in industry digital screen deployments, which will lead to growth in our DMS division's revenues, an increase in contracted content events for Fiscal year 2010 as well as continued solid performance of its Phase 1 deployments.

CONFERENCE CALL NOTIFICATION

Cinedigm will host a conference call to discuss its financial results at 10:30 a.m. EDT on Thursday, June 11, 2009. The conference can be accessed by dialing 719.325.4826 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 Cinedigm's Web site, www.cinedigmcorp.com. A replay of the call will be available after 1:30 p.m. Eastern at 719.457.0820 or 888.203.1112, passcode 5649731. The replay will be accessible through Thursday, June 18th.

About Cinedigm

Cinedigm Digital Cinema Corp. is the global leader in fulfilling the promise of digital cinema. Its ground-breaking technology platform helps exhibitors, distributors, studios and content providers transform the consumer movie experience -- by expanding theatrical features to include not only movies but also live 2-D and 3-D performances such as major sporting events, concerts and gaming. The Company also enables theatres to create exhibitions and advertising opportunities targeted to specific audience groups and locations thereby offering new revenue opportunities for these venues. Cinedigm's leading digital cinema platform and one-of-a-kind satellite delivery operations support almost 4,000 theatre screens equipped with DLP Cinema(R) projection systems across the United States with over thirteen million digital showings of Hollywood features to date. www.Cinedigm.com [CIDM-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 Cinedigm officials during presentations about Cinedigm, along with Cinedigm's filings with the Securities and Exchange Commission, including Cinedigm'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 Cinedigm'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 Cinedigm, its technology, economic and market factors and the industries in which Cinedigm does business, among other things. These statements are not guarantees of future performance and Cinedigm undertakes no specific obligation or intention to update these statements after the date of this release.

(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. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of Adjusted EBITDA to U.S. GAAP net income (loss). The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the U.S. GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.

                  ACCESS INTEGRATED TECHNOLOGIES, INC.
                   d/b/a CINEDIGM DIGITAL CINEMA CORP.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
          (In thousands, except for share and per share data)
                              (Unaudited)
                                                     Three Months Ended
                                                         March 31,
                                                   -----------------------
                                                      2008        2009
                                                   ----------- -----------
Revenues                                           $    21,892 $    17,885
Costs and expenses:
Direct operating (exclusive of depreciation and
 amortization shown below)                               6,771       6,074
Selling, general and administrative                      6,043       4,359
Provision for doubtful accounts                            705         316
Research and development                                  (341)        (19)
Stock-based compensation                                    92         292
Impairment of intangible asset                           1,588           -
Depreciation of property and equipment                   8,335       8,137
Amortization of intangible assets                        1,080         765
                                                   ----------- -----------
  Total operating expenses                              24,273      19,924
                                                   ----------- -----------
Loss from operations                                    (2,381)     (2,039)
Interest income                                            232          61
Interest expense                                        (8,797)     (6,419)
Other income (expense), net                               (289)       (266)
Change in fair value of interest rate swap                   -        (683)
                                                   ----------- -----------
Net loss                                               (11,235)     (9,346)
Preferred stock dividends                                    -         (50)
                                                   ----------- -----------
Net loss attributable to shareholders              $   (11,235)$    (9,396)
                                                   =========== ===========
Net loss per Class A and B common share - basic
 and diluted                                       $     (0.43)$     (0.34)
                                                   =========== ===========
Weighted average number of Class A and B common
 shares outstanding:
Basic and diluted                                   26,277,411  27,941,161
                                                   =========== ===========
                   Access Integrated Technologies, Inc.
                    d/b/a Cinedigm Digital Cinema Corp.
                       Adjusted EBITDA (as defined)
                    Reconciliation to GAAP Net Income
                             (In thousands)
                               (Unaudited)
                                                     Three Months Ended
                                                         March 31,
                                                   -----------------------
                                                      2008        2009
                                                   ----------- -----------
Net loss                                           $   (11,235) $   (9,346)
Add Back:
  Amortization of software development                     210          76
  Depreciation of property and equipment                 8,335       8,137
  Amortization of intangible assets                      1,080         765
  Interest income                                         (232)        (61)
  Interest expense                                       8,797       6,419
  Other (income) expense, net                              289         266
  Change in fair value of interest rate swap                 -         683
  Impairment of intangible asset                         1,588           -
  Stock-based expenses                                       -          37
  Stock-based compensation                                  92         292
                                                   ----------- -----------
Adjusted EBITDA (as defined)                       $     8,924  $    7,268
                                                   =========== ===========
                     ACCESS INTEGRATED TECHNOLOGIES, INC.
                      d/b/a CINEDIGM DIGITAL CINEMA CORP.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands, except for share and per share data)
                                  (Unaudited)
                                                     Twelve Months Ended
                                                         March 31,
                                                   -----------------------
                                                      2008        2009
                                                   ----------- -----------
Revenues                                           $    80,984 $    83,014
Costs and expenses:
Direct operating (exclusive of depreciation and
 amortization shown below)                              26,569      25,671
Selling, general and administrative                     23,170      18,070
Provision for doubtful accounts                          1,396         587
Research and development                                   162         188
Stock-based compensation                                   453         945
Impairment of intangible asset                           1,588           -
Impairment of goodwill                                       -       6,525
Depreciation of property and equipment                  29,285      32,531
Amortization of intangible assets                        4,290       3,434
                                                   ----------- -----------
  Total operating expenses                              86,913      87,951
                                                   ----------- -----------
Loss from operations                                    (5,929)     (4,937)
Interest income                                          1,406         372
Interest expense                                       (29,327)    (27,520)
Debt refinancing expense                                (1,122)          -
Other income (expense), net                               (715)       (754)
Change in fair value of interest rate swap                   -      (4,529)
                                                   ----------- -----------
Net loss                                               (35,687)    (37,368)
Preferred stock dividends                                    -         (50)
                                                   ----------- -----------
Net loss attributable to shareholders              $   (35,687) $  (37,418)
                                                   =========== ===========
Net loss per Class A and B common share - basic
 and diluted                                       $     (1.40) $    (1.36)
                                                   =========== ===========
Weighted average number of Class A and B common
 shares outstanding:
Basic and diluted                                   25,576,787  27,476,420
                                                   =========== ===========
                     Access Integrated Technologies, Inc.
                      d/b/a Cinedigm Digital Cinema Corp.
                         Adjusted EBITDA (as defined)
                      Reconciliation to GAAP Net Income
                               (In thousands)
                                 (Unaudited)
                                                     Twelve Months Ended
                                                         March 31,
                                                   -----------------------
                                                      2008        2009
                                                   ----------- -----------
Net loss                                           $   (35,687) $  (37,368)
Add Back:
  Amortization of software development                     658         677
  Depreciation of property and equipment                29,285      32,531
  Amortization of intangible assets                      4,290       3,434
  Interest income                                       (1,406)       (372)
  Interest expense                                      29,327      27,520
  Other (income) expense, net                              715         754
  Change in fair value of interest rate swap                 -       4,529
  Debt refinancing expense                               1,122           -
  Impairment of intangible asset and goodwill            1,588       6,525
  Stock-based expenses                                       -         193
  Stock-based compensation                                 453         945
                                                   ----------- -----------
Adjusted EBITDA (as defined)                       $    30,345 $    39,368
                                                   =========== ===========
                       ACCESS INTEGRATED TECHNOLOGIES, INC.
                        d/b/a CINEDIGM DIGITAL CINEMA CORP.
                            CONSOLIDATED BALANCE SHEETS
                      (In thousands, except for share data)
                                    (Unaudited)
                                                      March 31,  March 31,
                                                        2008       2009
                                                     ---------- ----------
                       ASSETS
Current assets
  Cash and cash equivalents                          $   29,655 $   26,329
  Accounts receivable, net                               21,494     13,884
  Unbilled revenue, current portion                       6,393      3,082
  Deferred costs                                          3,859      3,936
  Prepaid and other current assets                        1,316      1,798
  Notes receivable, current portion                         158        616
                                                     ---------- ----------
Total current assets                                     62,875     49,645
  Property and equipment, net                           269,031    243,124
  Intangible assets, net                                 13,592     10,707
  Capitalized software costs, net                         2,777      3,653
  Goodwill                                               14,549      8,024
  Accounts receivable, net of current portion               299        386
  Deferred costs                                          6,595      3,967
  Notes receivable, net of current portion                1,220        959
  Unbilled revenue, net of current portion                2,075      1,253
  Security deposits                                         408        424
  Restricted cash                                           255        255
                                                     ---------- ----------
Total assets                                         $  373,676 $  322,397
                                                     ========== ==========
          LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Accounts payable and accrued expenses              $   25,213 $   14,954
  Current portion of notes payable                       16,998     25,248
  Current portion of deferred revenue                     6,204      5,535
  Current portion of customer security deposits             333        314
  Current portion of capital leases                          89        175
                                                     ---------- ----------
Total current liabilities                                48,837     46,226
  Notes payable, net of current portion                 250,689    225,957
  Capital leases, net of current portion                  5,814      5,832
  Deferred revenue, net of current portion                  283      1,057
  Customer security deposits, net of current portion         46          9
  Fair value of interest rate swap                            -      4,529
                                                     ---------- ----------
Total liabilities                                       305,669    283,610
                                                     ---------- ----------
Commitments and contingencies
Stockholders' equity:
  Preferred stock, $0.001 par value per share;
   15,000,000 shares authorized; issued and
   outstanding:
    Series A 10%-20 shares authorized; 0
     and 8 shares issued and outstanding, at
     March 31, 2008 and March 31, 2009,
     respectively. Liquidation preference $4,050              -      3,476
    Class A common stock, $0.001 par value per share;
     40,000,000 and 65,000,000 shares authorized at
     March 31, 2008 and March 31, 2009, respectively;
     26,143,612 and 27,544,315 issued and 26,092,172
     and 27,492,875 shares outstanding at March 31,
     2008 and March 31, 2009, respectively                   26         27
    Class B common stock, $0.001 par value per share;
     15,000,000 shares authorized; 733,811 shares
     issued and outstanding at March 31, 2008 and
     March 31, 2009, respectively                             1          1
    Additional paid-in capital                          168,844    173,565
    Treasury Stock, at cost; 51,440 Class A shares         (172)      (172)
    Accumulated deficit                                (100,692)  (138,110)
                                                     ---------- ----------
Total stockholders' equity                               68,007     38,787
                                                     ---------- ----------
Total liabilities and stockholders' equity           $  373,676 $  322,397
                                                     ========== ==========

Contact:
Suzanne Moore
Cinedigm
973.290.0080
Email Contact


SOURCE: Cinedigm Digital Cinema Corp.

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