- Reports year-over-year revenue growth of 98% to $3.5
Million;
- Extinguished $3.1 million in debt in the quarter
- Backlog of $7.7 million at the end of the quarter
- Initiates fiscal 2022 revenue guidance of $12 to $15 million
(67% to 108% year-over-year growth)
Moving iMage Technologies, Inc. (NYSE AMERICAN: MITQ), (MiT) a
leading digital cinema technology company, today announced results
for its first fiscal quarter ended September 30, 2021.
“I’m excited to announce in our first full quarter as a public
company we delivered strong year-over-year revenue growth of 98%,”
said Phil Rafnson, chairman and chief executive officer. “MiT
benefited in the quarter from several tailwinds, including strong
signs from consumers and theater operators that we are in the very
early stages of recovering from the effects of the pandemic; in
addition to a nascent cinema technology upgrade cycle.
“We also successfully completed our IPO, which was upsized and
oversubscribed, raising net proceeds of $12.3 million, while also
seeing strong bookings in the quarter, which was reflected in our
backlog of $7.7 million. Finally, we introduced our ADA-compliant,
multi-language translator product, which we believe has disruptive
potential from both a product and recurring services perspective
and is expected to provide an enhanced cinematic experience to a
much broader audience.”
Fiscal First Quarter Highlights
(compared to fiscal 2021)
- Revenue increased 98% to $3.5 million versus $1.8 million;
- GAAP operating loss of ($0.5) million, versus an operating loss
of ($0.3) million;
- Adjusted operating loss of ($0.4) million versus ($0.3)
million;
- GAAP Net loss and diluted loss per share of ($0.6) million and
($0.06) versus a net loss and loss per share of ($0.4) million and
($0.07), respectively;
- Adjusted net loss and adjusted diluted loss per share was
($0.4) million and ($0.04) versus ($0.4) million and ($0.07),
respectively;
- Backlog of $7.7 million;
- Cash and cash equivalents of $11.0 million.
Fiscal 2022 Commentary
“We believe that fiscal 2021 was a trough year. We used this
period to lean out our operations and expand our proprietary
product offerings in preparation for the industry’s recovery from
the pandemic, and I am encouraged to see industry optimism gaining
momentum in recent months. When combined with the billions of
dollars in government grants to venue operators, a nascent
technology upgrade cycle, new theater construction, theatre
upgrades and refurbishment of existing theaters to enhance the
overall movie-going experience, I believe we are well-positioned to
capitalize on the opportunity ahead. Our relationships within the
industry are strong, and we are well-positioned with both the
growing small and mid-size theater operators as well as the major
circuits, and we believe the first quarter of fiscal 2022 was
reflective of this and a sign of even better things to come from
both the industry and MiT. As such, we are introducing our initial
fiscal 2022 revenue guidance of $12 to $15 million, or 67% to 108%
growth over fiscal 2021, and we expect to deliver positive cash
flow from operations as well,” concluded Rafnson.
Earnings Announcement and Supplemental
Information
MiT’s earnings release will be filed on Form 8-K and posted on
the MiT investor relations website
(https://investors.movingimagetech.com/) at approximately 4:10 p.m.
Eastern on November 11, 2021.
Management will host an earnings webcast beginning at 4:30 p.m.
Eastern. Management’s presentation of the results, outlook and
strategy will be followed by webcast Q&A with investors.
The call will also be webcast through the investor relations
portion of the Company’s website at
https://investors.movingimagetech.com/
About Moving iMage
Technologies
Moving iMage Technologies is a leading manufacturer and
integrator of purpose-built technology solutions and equipment to
support a wide variety of entertainment applications, with a focus
on motion picture exhibitions. MiT offers a wide range of products
and services, including custom engineering, systems design,
integration and installation, enterprise software solution, digital
cinema, A/V integration, as well as customized solutions for
emerging entertainment technology. MiT’s Caddy Products division
designs and sells proprietary cup-holder and other seating-based
products and lighting systems for theaters and stadiums. For more
information, visit www.movingimagetech.com.
Forward-Looking
Statements
All statements above that are not purely about historical facts,
including, but not limited to, those in which we use the words
“believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,”
“target” and similar expressions, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. While these forward-looking statements represent our
current judgment of what may happen in the future, actual results
may differ materially from the results expressed or implied by
these statements due to numerous important factors. Our filings
with the SEC provide detailed information on such statements and
risks and should be consulted along with this release. To the
extent permitted under applicable law, we assume no obligation to
update any forward-looking statements.
MOVING
IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands except share and per share amounts)
September 30,
June 30,
2021
2021
(unaudited)
Assets
Current Assets:
Cash and cash equivalents
$
11,029
$
1,269
Accounts receivable, net
898
454
Inventories, net
1,911
1,534
Prepaid expenses and other
642
86
Total Current Assets
14,480
3,343
Long-Term Assets:
Property, plant and equipment, net
8
21
Intangibles, net
911
935
Goodwill
287
287
Other assets
16
1,133
Total Long-Term Assets
1,222
2,376
Total
Assets
$
15,702
$
5,719
Liabilities And
Stockholders’ Equity/Members’ Deficit
Current Liabilities:
Accounts payable
$
1,841
$
1,911
Accrued expenses
402
620
Customer deposits
2,709
1,339
Line of credit
—
590
Notes payable – related party
—
1,272
Notes payable – current
110
237
Unearned warranty revenue
34
34
Total Current Liabilities
5,096
6,003
Long-Term Liabilities:
Notes payable, net of current portion
588
1,702
Deferred rent
25
25
Total Long-Term Liabilities
613
1,727
Total Liabilities
5,709
7,730
Stockholders’ Equity/Member’s
Deficit
Common stock, $0.00001 par value,
100,000,000 shares authorized, 10,636,278 shares issued and
outstanding at September 30, 2021, respectively
—
—
Additional paid-in capital
10,150
—
Members’ deficit
—
(2,011
)
Accumulated deficit
(157
)
—
Total Stockholders’ Equity/Members’
Deficit
9,993
(2,011
)
Total Liabilities and Stockholders’
Equity/Members’ Deficit
$
15,702
$
5,719
MOVING
IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands except share and
per share amounts)
(unaudited)
Three months ended
Three months ended
September 30,
September 30,
2021
2020
Net sales
$
3,474
$
1,757
Cost of goods sold
2,752
1,304
Gross profit
722
453
Operating expenses:
Research and development
54
27
Selling and marketing
544
283
General and administrative
663
450
Total operating expenses
1,261
760
Loss from operations
(539
)
(307
)
Other expenses
Interest expense
37
82
Total other expense
37
82
Net loss
$
(576
)
$
(389
)
Weighted average shares outstanding, basic
and diluted
9,809,264
5,666,667*
Net loss per share, basic and diluted
$
(0.06
)
$
(0.07
)
*-The weighted average shares outstanding
and net loss per share at September 30, 2020 is proforma.
MOVING
IMAGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
(unaudited)
Three months ended
Three months ended
September 30,
September 30,
2021
2020
Cash flows from operating
activities:
Net loss
$
(576
)
$
(389
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Provision for doubtful accounts
(90
)
40
Depreciation expense
13
34
Amortization expense
24
24
Deferred rent
—
2
Stock option compensation expense
56
—
Changes in operating assets and
liabilities
Accounts receivable
(354
)
171
Inventories
(377
)
(25
)
Prepaid expenses and other
554
(148
)
Accounts payable
(70
)
(167
)
Accrued expenses
(219
)
(133
)
Unearned warranty revenue
—
(9
)
Customer deposits
1,370
(249
)
Net cash used in operating activities
(777
)
(849
)
Cash flows from financing
activities
Cash acquired through Exchange
Agreement
8
—
Proceeds from equity raises, net of
offering costs
12,360
—
Net borrowings (payments) on notes
payable
(1,241
)
14
Payments on line of credit
(590
)
(60
)
Proceeds from PPP notes payable
—
784
Net cash provided by financing
activities
10,537
738
Net increase (decrease) in cash
9,760
(111
)
Cash and cash equivalents, beginning of
the period
1,269
1,058
Cash and cash equivalents, end of the
period
$
11,029
$
947
Non-cash investing and financing
activities:
Deferred IPO costs
$
—
$
121
Reclassification of IPO related costs from
other assets to equity
$
1,116
$
—
Reverse Capitalization, net of cash
received
$
1,272
—
Cash paid during the period:
Interest
$
37
$
82
Use of Non-GAAP Measure
The Company uses adjusted operating income, net income and loss
per share as a measure that we believe is customarily used by
investors and analysts to evaluate the financial performance of
companies in addition to the GAAP measures that we present. Our
management also believes that the elimination of one-time items is
useful in evaluating our core operating results and when comparing
results to prior periods. However, adjusted metrics are not a
measure of financial performance under accounting principles
generally accepted in the United States of America and should not
be considered an alternative to net income or operating income as
an indicator of our operating performance or to net cash provided
by operating activities as a measure of our liquidity.
Reconciliation of loss from operations
to adjusted net loss
Fiscal
1Q22
1Q21
Loss from Operations
($539)
($307)
Adjustments:
Stock Option Compensation Expense
($56)
$
-
Line of Credit Guarantee
($50)
$
-
S-8 Auditors Fees - Incentive Plan Shares
(IPO)
($8)
$
-
Staff Retention Bonuses (COVID-19)
($50)
$
-
Total Adjustments
($164)
$
-
Adjusted Loss from Operations
($375)
($307)
Interest Expense
$37
$82
Adjusted Net Loss
($412)
($389)
Adjusted Loss per Share
($0.04)
($0.07)
Weighted Average Shares Outstanding, Basic
and Diluted
9,809,264
5,666,667
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211111006065/en/
Brian Siegel IRC, MBA Managing Director Hayden IR (346) 396-8696
Investor.relations@movingimagetech.com
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