November 10, 2011

Cinedigm Digital Cinema Corp. Announces Best Financial Performance in Company's History for Second Quarter and First Half of Fiscal 2012

Revenues and Adjusted EBITDA for the Second Quarter Increase 56% and 62% Respectively, and for the First Half of Fiscal 2012 Increase 44% and 47%, Respectively

MORRISTOWN, NJ and WOODLAND HILLS, CA -- (MARKET WIRE) -- 11/10/11 -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today reported record financial performance for the second quarter and first half of fiscal 2012, ended September 30, 2011. The Company also announced outstanding operational progress, highlighted by the largest quarter of digital cinema installations in its history with 1,427 screen deployments recorded, a 122% increase over the previous record which occurred in the first quarter of this fiscal year.

Revenues from continuing operations for the second quarter were a record $23.5 million, representing a 55.6% increase from the comparable prior year second quarter revenues of $15.1 million. The strong quarter reflected outstanding growth across all divisions.

The Company posted record Adjusted EBITDA(1) (defined below) from continuing operations of $16.7 million in the second quarter, a comparable increase of 62.3% from the prior year.

The net loss from continuing operations in the quarter was ($1.0) million, or ($0.03) per share, which compares to the net loss from continuing operations of ($8.8) million, or ($0.29) per share, in the second quarter one year ago, and is a significant improvement over the comparable net loss of ($4.9) million or ($0.14) per share in the first quarter of fiscal 2012. The consolidated net loss of ($0.2) million, or ($0.01) per share, in the quarter compares to a consolidated net loss of ($10.8) million, or ($.36) per share, in the comparable prior year period.

For the first six months of fiscal 2012, revenues from continuing operations increased 43.9% to $43.9 million, as compared to $30.5 million for the same period one year earlier. Adjusted EBITDA(1) (defined below) from continuing operations for the year to date was $30.0 million, which is 47.3% ahead of the $20.4 million in the first half of the prior year. The net loss from continuing operations for the first six months of the fiscal year was ($5.9) million or ($.17) per share, which favorably compares to a net loss from continuing operations of ($15.4) million or ($.52) per share one year earlier. The consolidated net loss of ($6.6) million or ($.19) per share for the first six months of the fiscal year compares to a consolidated net loss of ($17.9) million or ($.60) per share in the comparable prior year period.

Cinedigm also reported a record level of Adjusted EBITDA from its continuing non-deployment businesses of $3.0 million in the second quarter, as compared to ($0.3) million in the prior year period. For the first six months of fiscal 2012, adjusted EBITDA from continuing non-deployment businesses was $3.5 million, representing a $4.7 million increase over the ($1.2) million recorded in the first half of the prior year. Results for the current quarter and the previous quarters have been restated to reflect the sale of Unique Screen Media to Screenvision, LLC on September 1, 2011 and its resulting reclassification under GAAP as a discontinued operation.

"The first six months of fiscal 2012 was by far the most successful financial and operational performance period in the history of Cinedigm," commented Chris McGurk, Chairman and Chief Executive Officer. "Besides setting financial records for the Company on all of our key performance measures, we made significant strides from an operational standpoint by achieving a record level of digital cinema deployments, signing several major software clients and expanding our content distribution pipeline. These achievements reflect our commitment to transform Cinedigm to aggressively leverage the growing worldwide digital cinema platform. In that regard, during the quarter we divested our non-core pre-show advertising unit and signed an agreement to sell our non-core digital content delivery unit. As part of these transactions, we created strategic software licensing and content distribution partnerships with the buyers, Screenvision and Technicolor, respectively. These partnerships should help strengthen growth prospects for our core software and content distribution businesses."

"Going forward, we will continue to strongly support our deployment program while we focus our energies on our software and content distribution businesses, both of which are high growth, high multiple businesses where we can be the clear market leader," Mr. McGurk explained. "We are optimistic that the business momentum generated by our strong results reported in the first half of this year -- indeed for the past four fiscal quarters -- will build for the foreseeable future as we continue to transform the company and evaluate additional accretive strategic growth opportunities."

Adam M. Mizel, recently named Chief Operating Officer of Cinedigm in addition to his position as Chief Financial Officer, added, "The first half of fiscal 2012 was extremely gratifying operationally and financially. The rapid expansion of our digital screen conversions in the year to date exceeded our expectations as exhibitors rushed to embrace the benefits of digital cinema and complete installations ahead of the September 2012 studio imposed installation deadline. We now have deployed 2,069 digital systems to date in fiscal 2012 through our Phase II program, bringing our total number of deployed Phase II systems to 4,265 as of September 30, 2011. In total from Phase 1 and Phase 2, we have 9,667 screens under license agreement and 7,988 installed as of September 30, 2011."

"Cinedigm's financial performance was equally strong," Mr. Mizel continued. "Revenues and Adjusted EBITDA, both including and excluding the contributions of our Phase I and Phase II programs, were at record levels. Highlighting our rapid turnaround, the Adjusted EBITDA from our non-deployment businesses for the trailing twelve months was $4.6 million, an $8.2 million increase as compared to ($3.6) million in the previous twelve months. The record second quarter and first half adjusted EBITDA registered for our non-deployment businesses signals the success of our efforts to transform the company and aggressively build momentum in our core growth businesses."

"Finally, we further enhanced our balance sheet and financial capacity to support our continued growth, through a $6.9 million private placement of common stock in July, and the recent closing of a $100.5 million non-recourse financing facility to support our exhibitors in the digital conversion process. Our strong operating results and improved balance sheet position us well for continued strong results in the quarters ahead," Mr. Mizel concluded.

(1) Adjusted EBITDA is defined by the Company to be earnings before interest, taxes, depreciation and amortization, other income (expense), net, stock-based compensation, allocated costs attributable to discontinued operations 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.

CONFERENCE CALL NOTIFICATION
Cinedigm will host a conference call to discuss its financial results at 4:30 p.m. EST on November 10, 2011. The conference can be accessed by dialing (877) 754-5303 or (678) 894-3030 at least five minutes prior to the start of the call. No passcode is required. The conference call will also be webcast simultaneously and will be accessible at http://investor.cinedigm.com/events.cfm.

A replay of the call will be available after 7:30 p.m. EST on November 10, 2011 at (855) 859-2056 or (404) 537-3406, conference ID 24311793. The replay will be accessible through 11:59 p.m. EST on November 17, 2011.

About Cinedigm
Cinedigm offers a new business model to exhibitors by enabling theatres to present engaging alternative programming including live 2D and 3D sporting events and concerts, shorts, cartoons, live Q&As, as well as branded entertainment. Recent releases by Cinedigm include the groundbreaking, LIVE 3D broadcast of The Foo Fighters performance, the worldwide LIVE 3D broadcast of the FIFA World Cup Championship, the BCS Championship in LIVE 3D, the Dave Matthews Band 3D concerts, and the sold out 3D PHISH concerts. Cinedigm has also released the KIDTOONS series for the past six years, a weekly family friendly matinee series that runs in over 165 theatres across the country. Cinedigm also provides a number of powerful software applications that enable exhibitors to enhance and streamline their daily operations. Additionally, Cinedigm offers precision marketing tools to dramatically increase exhibitor marketing effectiveness, including social media initiatives, targeted advertising and strategic public relations. Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of Cinedigm Digital Cinema Corp. www.cinedigm.com [CIDM-E]






                       CINEDIGM DIGITAL CINEMA CORP.

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

            (In thousands, except for share and per share data)

                                (Unaudited)



                           For the Three Months    For the Six Months Ended

                            Ended September 30,          September 30,

                         ------------------------  ------------------------

                             2011         2010         2011         2010

                         -----------  -----------  -----------  -----------

Revenues                 $    23,517  $    15,117  $    43,885  $    30,501

Costs and Expenses:

  Direct operating

   (exclusive of

   depreciation and

   amortization shown

   below)                      3,479        2,188        7,377        5,069

    Selling, general and

     administrative            4,525        3,668        8,379        7,878

    Provision for

     doubtful accounts            23          122           23          122

    Research and

     development                  31           97           96          162

    Depreciation and

     amortization of

     property and

     equipment                 9,384        8,114       18,752       16,085

    Amortization of

     intangible assets            86           84          174          167

                         -----------  -----------  -----------  -----------

Total operating expenses      17,528       14,273       34,801       29,483

                         -----------  -----------  -----------  -----------

Income from operations         5,989          844        9,084        1,018



  Interest income                 24           38           75          105

    Interest expense          (7,573)      (6,645)     (14,954)     (13,474)

    Loss on

     extinguishment of

     note payable                 --           --           --       (4,448)

    Other income

     (expense), net              380         (159)         426         (292)

    Change in fair value

     of interest rate

     swaps                       219         (987)        (568)      (1,445)

    Change in fair value

     of warrant

     liability                    --       (1,891)          --        3,142

                         -----------  -----------  -----------  -----------

Net loss from continuing

 operations                     (961)      (8,800)      (5,937)     (15,394)



Income (loss) from

 discontinued operations         733       (2,035)        (684)      (2,500)

                         -----------  -----------  -----------  -----------

Net income (loss)               (228)     (10,835)      (6,621)     (17,894)

Preferred stock

 dividends                       (89)        (105)        (178)        (205)

                         -----------  -----------  -----------  -----------



Net loss attributable to

 common stockholders     $      (317) $   (10,940) $    (6,799) $   (18,099)

                         ===========  ===========  ===========  ===========

Net loss per Class A and

 Class B common share -

 basic and diluted

    Loss from continuing

     operations          $     (0.03) $     (0.29) $     (0.17) $     (0.52)

    Income (loss) from

     discontinued

     operations                 0.02        (0.07)       (0.02)       (0.08)

                         -----------  -----------  -----------  -----------

                         $     (0.01) $     (0.36) $     (0.19) $     (0.60)

                         ===========  ===========  ===========  ===========

Weighted average number

 of Class A and Class B

 common shares

 outstanding: basic and

 diluted                  37,115,346   30,294,306   34,886,202   29,860,122

                         ===========  ===========  ===========  ===========







                        CINEDIGM DIGITAL CINEMA CORP.

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                    (In thousands, except for share data)



                                                 September 30,   March 31,

                                                      2011          2011

                                                 ------------- -------------

ASSETS                                            (Unaudited)

Current assets

  Cash and cash equivalents                      $      17,832 $      10,748

  Restricted available-for-sale investments              9,081         6,480

  Accounts receivable, net                              20,009        15,495

  Deferred costs, current portion                        2,084         2,058

  Unbilled revenue, current portion                      9,662         6,768

  Prepaid and other current assets                       1,166         1,030

  Note receivable, current portion                         566           438

  Assets held for sale                                      --        14,569

                                                 ------------- -------------

Total current assets                                    60,400        57,586



  Restricted cash                                        5,753         5,751

  Security deposits                                        217           178

  Property and equipment, net                          222,433       223,906

  Intangible assets, net                                   583           731

  Capitalized software costs, net                        3,872         3,767

  Goodwill                                               5,874         5,874

  Deferred costs, net of current portion                 6,813         7,565

  Unbilled revenue, net of current portion                 704           834

  Note receivable, net of current portion                1,070         1,296

  Accounts receivable, net of current portion               24            --

                                                 ------------- -------------

Total assets                                     $     307,743 $     307,488

                                                 ============= =============







                       CINEDIGM DIGITAL CINEMA CORP.

                   CONDENSED CONSOLIDATED BALANCE SHEETS

                   (In thousands, except for share data)

                                (continued)



                                               September 30,    March 31,

                                                    2011           2011

                                               -------------  -------------

LIABILITIES AND STOCKHOLDERS' EQUITY            (Unaudited)

Current liabilities

    Accounts payable and accrued expenses      $      11,126  $       8,688

    Current portion of notes payable, non-

     recourse                                         30,871         28,483

    Current portion of notes payable                      --            142

    Current portion of capital leases                    184             27

    Current portion of deferred revenue                4,101          3,141

    Current portion of customer security

     deposits                                             60             60

    Liabilities as part of held for sale

     assets                                               --         11,244

                                               -------------  -------------

Total current liabilities                             46,342         51,785

    Notes payable, non-recourse, net of

     current portion                                 155,774        164,071

    Notes payable, net of current portion             82,692         78,175

    Capital leases, net of current portion             5,341              3

    Interest rate swaps                                2,539          1,971

    Deferred revenue, net of current portion          11,439          9,687

    Customer security deposits, net of current

     portion                                               9              9

                                               -------------  -------------

    Total liabilities                                304,136        305,701

                                               -------------  -------------

Commitments and contingencies (see Note 7)

Stockholders' Equity

Preferred stock, 15,000,000 shares authorized;

 Series A 10% - $0.001 par value per share; 20

 shares authorized; 7 shares issued and

 outstanding at September 30, 2011 and March

 31, 2011, respectively. Liquidation

 preference $3,559                                     3,304          3,250

Class A common stock, $0.001 par value per

 share; 75,000,000 shares authorized;

 37,644,164 and 32,320,287 shares issued and

 37,592,724 and 32,268,847 shares outstanding

 at September 30, 2011 and March 31, 2011,

 respectively                                             38             32

Class B common stock, $0.001 par value per

 share; 15,000,000 shares authorized; 25,000

 shares issued and outstanding, at September

 30, 2011 and March 31, 2011, respectively                --             --

  Additional paid-in capital                         204,884        196,420

  Treasury stock, at cost; 51,440 Class A

   shares                                               (172)          (172)

  Accumulated deficit                               (204,447)      (197,648)

  Accumulated other comprehensive loss                    --            (95)

                                               -------------  -------------

Total stockholders' equity                             3,607          1,787

                                               -------------  -------------

Total liabilities and stockholders' equity     $     307,743  $     307,488

                                               =============  =============







                       CINEDIGM DIGITAL CINEMA CORP.

                        ADJUSTED EBITDA (as defined)

         Reconciliation to GAAP Net Loss from Continuing Operations

                               (In thousands)

                                (Unaudited)



                                                       For the Three Months

                                                        Ended September 30,

                                                       --------------------

                                                          2011       2010

                                                       ---------  ---------

Net loss from continuing operations                    $    (961) $  (8,800)

Add Back:

------------------------------------------------------

    Amortization of software development                     152        197

    Depreciation and amortization of property and

     equipment                                             9,384      8,114

    Amortization of intangible assets                         86         84

    Interest income                                          (24)       (38)

    Interest expense                                       7,573      6,645

    Loss on extinguishment of note payable                    --         --

    Other expense, net                                      (380)       159

    Change in fair value of interest rate swap              (219)       987

    Change in fair value of warrants                          --      1,891

    Stock-based expenses                                     562         --

    Stock-based compensation                                 424        669

    Allocated costs attributable to discontinued

     operations                                               59        124

    Non-recurring CEO transition expenses                     --        229

                                                       ---------  ---------

Adjusted EBITDA                                        $  16,656  $  10,261

                                                       =========  =========



Adjustments related to the Phase I and Phase II

 Deployments:

------------------------------------------------------

    Depreciation and amortization of property and

     equipment                                            (8,738)    (7,596)

    Amortization of intangible assets                        (15)       (11)

    Income from operations                                (6,611)    (4,211)

    Intersegment services fees earned(1)                   1,710      1,270

                                                       ---------  ---------

Adjusted EBITDA from non-deployment Phase I and Phase

 II businesses                                         $   3,002  $    (287)

                                                       =========  =========



(1) Intersegment revenues of the Services segment represent service fees

    earned from the Phase I and Phase II Deployments.





                       CINEDIGM DIGITAL CINEMA CORP.

                        ADJUSTED EBITDA (as defined)

         Reconciliation to GAAP Net Loss from Continuing Operations

                               (In thousands)

                                (Unaudited)



                                                        For the Six Months

                                                        Ended September 30,

                                                       --------------------

                                                          2011       2010

                                                       ---------  ---------

Net loss from continuing operations                    $  (5,937) $ (15,394)

Add Back:

------------------------------------------------------

    Amortization of software development                     364        372

    Depreciation and amortization of property and

     equipment                                            18,752     16,085

    Amortization of intangible assets                        174        167

    Interest income                                          (75)      (105)

    Interest expense                                      14,954     13,474

    Loss on extinguishment of note payable                    --      4,448

    Other expense, net                                      (426)       292

    Change in fair value of interest rate swap               568      1,445

    Change in fair value of warrants                          --     (3,142)

    Stock-based expenses                                     562         --

    Stock-based compensation                                 903      1,345

    Allocated costs attributable to discontinued

     operations                                              148        230

    Non-recurring CEO transition expenses                     --      1,141

                                                       ---------  ---------

Adjusted EBITDA                                        $  29,987  $  20,358

                                                       =========  =========



Adjustments related to the Phase I and Phase II

 Deployments:

------------------------------------------------------

    Depreciation and amortization of property and

     equipment                                           (17,510)   (15,061)

    Amortization of intangible assets                        (27)       (22)

    Income from operations                               (12,037)    (8,769)

    Intersegment services fees earned(1)                   3,077      2,292

                                                       ---------  ---------

Adjusted EBITDA from non-deployment Phase I and Phase

 II businesses                                         $   3,490  $  (1,202)

                                                       =========  =========



(1) Intersegment revenues of the Services segment represent service fees

    earned from the Phase I and Phase II Deployments.

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-Q and annual report on Form 10-K, 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.

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For Cinedigm Digital Cinema:



Press Contact:

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Office: 310-301-1785

Mobile: 310-749-3055

Maggie@mbcprinc.com



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