Revenue growth of 69% to $5.9 Million Operating income growth of 109%; EPS growth of 83%

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, 2022.

“We started the year out on solid footing with strong revenue growth, roughly improving to break-even on a net income and EPS basis,” said Phil Rafnson, chairman and chief executive officer. “During the quarter, we signed a major movie theater chain for our emerging CineQC quality control SaaS platform and saw strong sales of our USL ADA compliance products as well. We have also been building our eSports product pipeline in conjunction with our partner SNDBX.”

Fiscal First Quarter 2023 Highlights (compared to the first quarter fiscal 2022)

  • Revenue increased 68.5% to $5.9 million compared to $3.5 million;
  • Gross margin expanded by 580 basis points to 26.6%;
  • Operating income of $0.0 million compared to an operating loss of ($0.5) million;
  • Net loss and diluted loss per share of ($0.1) million and ($0.01) compared to ($0.6) million and ($0.06), respectively.

Select Financial Metrics: Fiscal 2023 versus Fiscal 2022 as of 9/30/2022*

(in millions, except for Loss per Share and percentages)

1Q23

1Q22

Change

Total Revenue

$5.9

$3.5

68.5%

Gross Profit

$1.6

$0.7

115.9%

Gross Margin

26.6%

20.8%

 

Operating Income (Loss)

$0.0

($0.5)

108.9%

Operating Margin

0.8%

-15.5%

 

Net Loss

($0.1)

($0.6)

83.5%

Diluted Loss Per Share

($0.01)

($0.06)

83.3%

Fiscal 2023 Commentary and Guidance

Fiscal 2023 Guidance

Fiscal 2022 Actuals

Change

Revenue

$22.0 - $23.5 Million

$18.4 Million

20 - 31%

EPS

$0.04 - $0.08

($0.13)

$0.17 - 0.21

Diluted Shares Outstanding

10.9 million

10.6 million

0.3 million

“We started 2023 on a high note and have a strong pipeline of opportunities for the remainder of the year. In our second quarter, we expect to see a traditional dropoff in revenue relative to the first quarter due to seasonality over the holidays, where we see three potential blockbusters being released this calendar year leading into a strong lineup for calendar 2023.

“Additionally, we continue to move forward with the sales process for our newer, high-margin products like CineQC and our eSports offering. In fact, we have a strong pipeline of potential opportunities from theater operators/owners that want to host SNDBX’s eSports leagues, which we are optimistic will turn into initial orders in the coming months. Given the early stages of both products, which will have a small impact on our financial results during the first half of the year, we are maintaining the guidance we provided last quarter until we report our second quarter earnings, at which time we’ll have better visibility,” concluded Rafnson.

Earnings Conference Call and Webcast Information

Management will host a conference call and webcast to review the Company’s results and forward expectations. Investors can submit questions ahead of time to brian@haydenir.com or ask questions through the webcast portal in real-time.

Toll Free: 1-877-407-4018 Toll/International: 1-201-689-8471 Webcast Date/Time: Tuesday, November 15, 2022, 11:00 AM ET Webcast Location: https://viavid.webcasts.com/starthere.jsp?ei=1582601&tp_key=ae97d6bd91

Replay Toll Free: 1-844-512-2921 Toll/International: 1-412-317-6671 Replay Pin Number: 13734423 Replay Start: Tuesday, November 15, 2022, 2:00 PM ET Replay Expiry: Tuesday, November 29, 2022, 11:59 PM ET

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, sports venues and eSports. 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,

 

 

2022

 

2022

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

$

2,294

 

$

2,340

 

Marketable securities

 

4,234

 

 

4,363

 

Accounts receivable, net

 

1,750

 

 

1,762

 

Inventories

 

4,920

 

 

4,033

 

Prepaid expenses and other

 

439

 

 

864

 

Total Current Assets

 

13,637

 

 

13,362

 

Long-Term Assets:

 

 

 

 

Marketable securities

 

315

 

 

325

 

Right-of-use asset

 

604

 

 

 

Property, plant and equipment, net

 

22

 

 

22

 

Intangibles, net

 

815

 

 

839

 

Goodwill

 

287

 

 

287

 

Other assets

 

16

 

 

16

 

Total Long-Term Assets

 

2,059

 

 

1,489

 

Total Assets

$

15,696

 

$

14,851

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

$

3,179

 

$

1,583

 

Accrued expenses

 

530

 

 

655

 

Customer deposits

 

1,846

 

 

3,158

 

Lease liability – current

 

258

 

 

 

Unearned warranty revenue

 

46

 

 

18

 

Total Current Liabilities

 

5,859

 

 

5,414

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

Lease liability – non-current

 

364

 

 

 

Deferred rent

 

 

 

22

 

Total Long-Term Liabilities

 

364

 

 

22

 

Total Liabilities

 

6,223

 

 

5,436

 

Stockholders’ Equity

 

 

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,958,398 and 10,828,398 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively

 

 

 

 

Additional paid-in capital

 

12,653

 

 

12,500

 

Accumulated deficit

 

(3,180

)

 

(3,085

)

Total Stockholders’ Equity

 

9,473

 

 

9,415

 

Total Liabilities and Stockholders’ Equity

$

15,696

 

$

14,851

 

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

 

 

 

 

 

 

 

 

 

Three Months

 

Three Months

 

 

Ended

 

Ended

 

 

September 30,

 

September 30,

 

 

2022

 

2021

Net sales

$

5,852

 

$

3,474

 

Cost of goods sold

 

4,293

 

 

2,752

 

Gross profit

 

1,559

 

 

722

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Research and development

 

66

 

 

54

 

Selling and marketing

 

610

 

 

544

 

General and administrative

 

835

 

 

663

 

Total operating expenses

 

1,511

 

 

1,261

 

Operating income (loss)

 

48

 

 

(539

)

Other (income) expenses:

 

 

 

 

Unrealized loss on investments

 

140

 

 

 

Realized loss on investments

 

23

 

 

 

Interest and other income

 

(20

)

 

 

Interest expense

 

 

 

38

 

Total other (income) expense

 

143

 

 

38

 

Net loss

$

(95

)

$

(577

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding: basic and diluted

 

10,928,724

 

 

10,254,686

 

Net loss per common share basic and diluted

$

(0.01

)

$

(0.06

)

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

September 30,

 

September 30,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net loss

$

(95

)

$

(577

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Provision for (reversal of) doubtful accounts

 

3

 

 

(90

)

Depreciation expense

 

2

 

 

13

 

Amortization expense

 

24

 

 

24

 

Unrealized loss on investments

 

140

 

 

 

Realized loss on investments

 

23

 

 

 

Cash expended in excess of rent expense

 

(5

)

 

 

Stock compensation expense

 

 

 

56

 

 

 

 

 

 

Changes in operating assets and liabilities

 

 

 

 

Accounts receivable

 

9

 

 

(354

)

Inventories

 

(887

)

 

(377

)

Prepaid expenses and other

 

425

 

 

(547

)

Accounts payable

 

1,597

 

 

(70

)

Accrued expenses

 

28

 

 

(217

)

Unearned warranty revenue

 

28

 

 

 

Customer deposits

 

(1,312

)

 

1,370

 

Net cash used in operating activities

 

(20

)

 

(769

)

Cash flows from investing activities

 

 

 

 

Sale of marketable securities

 

493

 

 

 

Purchases of marketable securities

 

(517

)

 

 

Purchases of property, plant and equipment

 

(2

)

 

 

Net cash used in investing activities

 

(26

)

 

 

Cash flows from financing activities

 

 

 

 

Net Proceeds from initial public offering

 

 

 

12,360

 

Payments on line of credit

 

 

 

(590

)

Payments on notes payable

 

 

 

(1,241

)

Net cash provided by financing activities

 

 

 

10,529

 

Net increase (decrease) in cash and cash equivalents

 

(46

)

 

9,760

 

Cash and cash equivalents, beginning of the period

 

2,340

 

 

1,270

 

Cash and cash equivalents, end of the period

$

2,294

 

$

11,030

 

Non-cash investing and financing activities:

 

 

 

 

Reclassification of IPO related costs from other assets to equity

$

 

$

1,116

 

Accrued expenses settled by issuance of common stock

$

153

 

 

 

Right-of-use asset recorded upon adoption of ASC 842

$

681

 

$

 

Cash paid during the period:

 

 

 

 

Interest

$

 

$

38

 

Income taxes

$

 

$

 

 

Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com

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