Moving iMage Technologies Announces Third Quarter Fiscal 2024 Results
Moving iMage Technologies, Inc. (NYSE:MITQ), ("MiT"), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced results for its third quarter ended March 31, 2024.
"As expected, the long tail of the actors and writers strike in late 2023 impacted our third quarter results," said Phil Rafnson, chairman and chief executive officer of MiT. "The strikes impacted the industry year to date for several reasons, including the lower 2024 domestic box office, which analysts expect to be flat to down, and budgeting delays at many of our customers. Specifically, we have seen multiple projects and orders pushed out into future quarters. Additionally, our quarterly financial results were affected by a large order for seats, which have a significantly lower gross margin than the Company average, and the negative side to having strong operating leverage."
Fiscal 2024 Commentary
"While we expect the industry hangover to continue into our fourth fiscal quarter, we have seen new recent activity that gives us reasons for optimism. First, we finished field testing for LEA's smart power amps with a top-10 circuit, and the results were promising. We also began testing these products at another top-10 circuit and hope to start field testing at two other top-10 circuits over the next few quarters. While we have had some early success scoping LEA products into new cinema builds, keep in mind the attrition market for LEA smart power amplifiers represents a $30-60 million annual TAM in North America for us to penetrate over time.
"Behind the scenes, we continue moving forward with our emerging product lines. Our E-caddy concept was well received by the handful of Major League Baseball and other sports stadium executives we met and is now expected to move into the early manufacturing and testing stage during our fourth quarter. Here, we also had some recent positive news on the hardware side related to power consumption, which could materially expand the range of services we can offer.
"For CineQC, the SaaS quality control and management platform that we license and resell into cinema, the broader rollout has been delayed due to needing a more robust system. While we've been co-developing with our paying customer, at zero expense to us, after a thorough evaluation, we decided the underlying technology needs alterations to scale, and we plan to significantly upgrade the technology, which should take approximately two quarters to complete. When finished, we expect to have direct control of the technology and a path to finally market the offering more broadly.
"For Esports, we've pivoted recently to take a parallel approach with certain larger potential customers while SNDBX is working to raise growth capital. If successful, we believe this could help scale our Esports business more quickly," concluded Rafnson.
Third Quarter Highlights (Fiscal 2024 versus Fiscal 2023)
- Revenue increased 4.0% to $3.9 million compared to $3.7 million;
- Gross Profit decreased to $0.7 million compared to $1.0 million; Gross Margin was 17.4%;
- GAAP Operating Loss of ($0.6) million compared to ($0.5) million;
- GAAP Net Loss and Loss per Share (EPS) of ($0.6) million and ($0.06) compared to ($0.4) million and $(0.04), respectively;
- Non-GAAP Net Loss and Loss per Share (EPS) of ($0.6) million and ($0.06) compared to ($0.4) million and $(0.04), respectively;
- As of March 31, 2024, the Company held cash of $5.9 million;
- During the quarter, the Company repurchased 310,000 shares.
Select Financial Metrics: FY24 versus FY23* |
||||||
in millions, except for Income (loss) per Share and percentages |
3Q24 |
3Q23 |
Change |
YTD FY24 |
YTD FY23 |
Change |
Total Revenue |
$3.9 |
$3.7 |
4.0% |
$13.8 |
$14.4 |
-4.5% |
Gross Profit |
$0.7 |
$1.0 |
-35.1% |
$3.3 |
$3.9 |
-16.8% |
Gross Margin |
17.4% |
27.9% |
|
23.6% |
27.1% |
|
Operating Income (Loss) |
($0.6) |
($0.5) |
-23.4% |
($1.1) |
($0.6) |
-78.5% |
Operating Margin |
-16.7% |
-14.1% |
|
-7.9% |
-4.3% |
|
GAAP Net Income (Loss) |
($0.6) |
($0.4) |
-41.7% |
($1.0) |
($0.5) |
-102.5% |
GAAP Earnings (Loss) per Share |
(0.06) |
($0.04) |
-48.8% |
($0.09) |
($0.04) |
-96.8% |
Non-GAAP Net Income (Loss) |
($0.6) |
($0.4) |
-40.6% |
($1.0) |
($0.5) |
-109.3% |
Non-GAAP Income (Loss) Per Share |
($0.06) |
($0.04) |
-47.6% |
($0.09) |
($0.04) |
-104.8% |
nm = not measurable/meaningful; *may not add up due to rounding |
||||||
| Trended Financials* | |||||||||||
| in millions, except for Income (loss) per Share and percentages | 1Q23 |
2Q23 |
3Q23 |
4Q23 |
1Q24 |
2Q24 |
3Q24 |
|
FY22 |
FY23 |
YTD FY24 |
| Total Revenue | $5.9 |
$4.8 |
$3.7 |
$5.8 |
$6.6 |
$3.3 |
$3.9 |
|
$18.4 |
$20.2 |
$13.8 |
| Gross Profit | $1.6 |
$1.3 |
$1.0 |
$1.4 |
$1.8 |
$0.8 |
$0.7 |
|
$4.5 |
$5.3 |
$3.3 |
| Gross Margin | 26.6% |
27.1% |
27.9% |
24.2% |
27.4% |
23.2% |
17.4% |
|
24.3% |
26.3% |
23.6% |
| Operating Income (Loss) | $0.0 |
($0.1) |
($0.5) |
($1.4) |
$0.4 |
($0.8) |
($0.6) |
|
($1.8) |
($2.0) |
($1.1) |
| Operating Margin | 0.8% |
-2.8% |
-14.1% |
-23.5% |
5.8% |
-25.4% |
-16.7% |
|
-9.6% |
-9.8% |
-7.9% |
| GAAP Net Income (Loss) | ($0.1) |
$0.0 |
($0.4) |
($1.3) |
$0.4 |
($0.8) |
($0.6) |
|
($1.3) |
($1.8) |
($1.0) |
| Diluted Income (Loss) per Share | ($0.01) |
$0.00 |
($0.04) |
($0.12) |
$0.04 |
(0.07) |
($0.06) |
|
($0.13) |
($0.17) |
($0.09) |
| Non-GAAP Net Income (Loss) | ($0.1) |
$0.0 |
($0.4) |
($0.2) |
$0.4 |
($0.8) |
($0.6) |
|
($1.5) |
($0.7) |
($1.0) |
| Non-GAAP Diluted Income (Loss) per Share | ($0.01) |
$0.00 |
($0.04) |
($0.02) |
$0.04 |
($0.07) |
($0.06) |
|
($0.14) |
($0.07) |
($0.09) |
| *may not add up due to rounding | |||||||||||
Dial-in and Webcast Information
Date/Time: Wednesday, May 15, 2024, 12:00 p.m. ET
Toll-Free: 1-877-407-4021
Toll/International: 1-201-689-8472
Call me™: Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ Link for instant telephone access to the event. Call me™ link will be made active 15 minutes prior to scheduled start time.
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Telephone Replay
Replay Dial-In: 1-844-512-2921 or 1-412-317-6671
Replay Expiration: Wednesday, May 29, 2024 at 11:59 p.m. ET
Access ID: 13746715
Telephone Replays will be made available after the conference end time.
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) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
March 31, |
|
June 30, |
||||
|
|
2024 |
|
2023 |
||||
|
|
(unauditied) |
|
|
|
|||
Assets |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash |
$ |
5,946 |
|
$ |
6,616 |
|
||
Accounts receivable, net |
|
890 |
|
|
905 |
|
||
Inventories, net |
|
4,220 |
|
|
4,419 |
|
||
Prepaid expenses and other |
|
938 |
|
|
451 |
|
||
Total Current Assets |
|
11,994 |
|
|
12,391 |
|
||
Long-Term Assets: |
|
|
|
|
||||
Right-of-use asset |
|
214 |
|
|
415 |
|
||
Property and equipment, net |
|
31 |
|
|
28 |
|
||
Intangibles, net |
|
437 |
|
|
480 |
|
||
Other assets |
|
16 |
|
|
16 |
|
||
Total Long-Term Assets |
|
698 |
|
|
939 |
|
||
Total Assets |
$ |
12,692 |
|
$ |
13,330 |
|
||
|
|
|
|
|
||||
Liabilities And Stockholders' Equity |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
$ |
1,457 |
|
$ |
1,507 |
|
||
Accrued expenses |
|
747 |
|
|
618 |
|
||
Customer deposits |
|
3,895 |
|
|
3,169 |
|
||
Lease liability–current |
|
224 |
|
|
280 |
|
||
Unearned warranty revenue |
|
52 |
|
|
26 |
|
||
Total Current Liabilities |
|
6,375 |
|
|
5,600 |
|
||
|
|
|
|
|
||||
Long-Term Liabilities: |
|
|
|
|
||||
Lease liability–non-current |
|
— |
|
|
151 |
|
||
Total Long-Term Liabilities |
|
— |
|
|
151 |
|
||
Total Liabilities |
|
6,375 |
|
|
5,751 |
|
||
Stockholders' Equity |
|
|
|
|
||||
Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,285,971 and 10,685,778 shares issued and outstanding at March 31, 2024 and June 30, 2023, respectively |
|
— |
|
|
— |
|
||
Additional paid-in capital |
|
12,157 |
|
|
12,462 |
|
||
Accumulated deficit |
|
(5,840 |
) |
|
(4,883 |
) |
||
Total Stockholders' Equity |
|
6,317 |
|
|
7,579 |
|
||
Total Liabilities and Stockholders' Equity |
$ |
12,692 |
|
$ |
13,330 |
|
||
MOVING IMAGE TECHNOLOGIES, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands except share and per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
March 31, |
|
March 31, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales |
$ |
3,890 |
|
$ |
3,741 |
|
$ |
13,790 |
|
$ |
14,435 |
|
||||
Cost of goods sold |
|
3,214 |
|
|
2,699 |
|
|
10,536 |
|
|
10,523 |
|
||||
Gross profit |
|
676 |
|
|
1,042 |
|
|
3,254 |
|
|
3,912 |
|
||||
|
|
|
|
|||||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
73 |
|
66 |
|
212 |
|
195 |
|
||||||||
Selling and marketing |
|
547 |
|
|
663 |
|
|
1,717 |
|
|
1,867 |
|
||||
General and administrative |
|
705 |
|
|
839 |
|
|
2,421 |
|
|
2,464 |
|
||||
Total operating expenses |
|
1,325 |
|
|
1,568 |
|
|
4,350 |
|
|
4,526 |
|
||||
Operating loss |
|
(649 |
) |
|
(526 |
) |
|
(1,096 |
) |
|
(614 |
) |
||||
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Unrealized loss on marketable securities |
— |
|
81 |
|
— |
|
243 |
|
||||||||
Realized loss on marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
(167 |
) |
||||
Interest and other income, net |
|
48 |
|
|
21 |
|
|
140 |
|
|
66 |
|
||||
Total other income (expense) |
|
48 |
|
|
102 |
|
|
140 |
|
|
142 |
|
||||
Net income/(loss) |
$ |
(601 |
) |
$ |
(424 |
) |
$ |
(956 |
) |
$ |
(472 |
) |
||||
Net profit/(loss) per common share basic and diluted |
$ |
(0.06 |
) |
$ |
(0.04 |
) |
$ |
(0.09 |
) |
$ |
(0.04 |
) |
||||
Weighted average shares outstanding: basic and diluted |
|
10,436,519 |
|
|
10,956,413 |
|
|
10,593,229 |
|
|
10,947,790 |
|
||||
MOVING IMAGE TECHNOLOGIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
|
||||||
|
|
Nine Months Ended |
||||||
|
|
December 31, |
||||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income/(loss) |
$ |
(956 |
) |
$ |
(472 |
) |
||
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: |
||||||||
Provision for credit losses |
|
(52 |
) |
|
(5 |
) |
||
Inventory reserve |
433 |
|
80 |
|
||||
Depreciation expense |
|
9 |
|
|
6 |
|
||
Amortization expense |
43 |
|
72 |
|
||||
ROU amortization |
|
201 |
|
|
— |
|
||
Stock option compensation expense |
15 |
|
— |
|
||||
Realized gain on investments |
|
— |
|
|
(76 |
) |
||
Changes in operating assets and liabilities |
||||||||
Accounts receivable |
|
67 |
|
|
778 |
|
||
Inventories, net |
(234 |
) |
(883 |
) |
||||
Prepaid expenses and other |
|
(487 |
) |
|
289 |
|
||
Accounts payable |
(50 |
) |
558 |
|
||||
Accrued expenses |
|
129 |
|
|
(6 |
) |
||
Unearned warranty revenue |
26 |
|
30 |
|
||||
Customer deposits |
|
726 |
|
|
(1,066 |
) |
||
Lease liabilities |
|
(207 |
) |
|
— |
|
||
Net cash used in operating activities |
|
(337 |
) |
|
(685 |
) |
||
Cash flows from investing activities |
||||||||
Sales of marketable securities |
|
— |
|
|
12,418 |
|
||
Purchases of marketable securities |
— |
|
(7,660 |
) |
||||
Purchases of property and equipment |
|
(12 |
) |
|
(7 |
) |
||
Net cash provided by used in investing activities |
|
(12 |
) |
|
4,751 |
|
||
Cash flows from financing activities |
|
|
|
|
||||
Stock Buyback |
(334 |
) |
(49 |
) |
||||
Stock issued for Director expense |
|
13 |
|
|
— |
|
||
Net cash (used in) financing activities |
|
(321 |
) |
|
(49 |
) |
||
Net increase (decrease) in cash |
|
(670 |
) |
|
4,017 |
|
||
Cash, beginning of the year |
|
6,616 |
|
|
2,340 |
|
||
Cash, end of the year |
$ |
5,946 |
|
$ |
6,357 |
|
||
Use of Non-GAAP Measures
The Company uses non-GAAP net income/loss and earnings/loss per share as a measure 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 eliminating one-time items and non-cash stock compensation expense is useful in evaluating our core operating results and comparing results to prior periods. However, non-GAAP metrics are not a measure of financial performance under GAAP in the United States of America and should not be considered an alternative to Net Income as an indicator of our operating performance.
RECONCILIATION OF NON-GAAP ITEMS |
|||||||||||
(in $millions except for per share numbers) |
|||||||||||
| in millions, except for Income (loss) per Share | 1Q23 |
2Q23 |
3Q23 |
4Q23 |
1Q24 |
2Q24 |
3Q24 |
|
FY22 |
FY23 |
YTD FY24 |
| GAAP Net Income (Loss) | ($0.1) |
$0.0 |
($0.4) |
($1.3) |
$0.4 |
($0.8) |
($0.6) |
|
($1.3) |
($1.8) |
($1.0) |
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (expense) | $0.1 |
($0.2) |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
$0.1 |
$0.0 |
$0.0 |
| Impairments | $0.0 |
$0.0 |
$0.0 |
$0.6 |
$0.0 |
$0.0 |
$0.0 |
|
$0.0 |
$0.6 |
$0.0 |
| SNDBX Write-off | $0.0 |
$0.0 |
$0.0 |
$0.4 |
$0.0 |
$0.0 |
$0.0 |
|
$0.0 |
$0.4 |
$0.0 |
| Stock Compensation Expense | $0.0 |
$0.0 |
$0.0 |
$0.1 |
$0.0 |
$0.0 |
$0.0 |
|
$0.4 |
$0.1 |
$0.0 |
| PPP Adjustment | $0.0 |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
($0.7) |
$0.0 |
$0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Net Income (Loss) | $0.0 |
($0.1) |
($0.4) |
($0.2) |
$0.4 |
($0.8) |
($0.6) |
|
($1.5) |
($0.7) |
($1.0) |
| Non-GAAP Diluted Income (Loss) per Share | $0.00 |
($0.01) |
($0.04) |
($0.02) |
$0.04 |
($0.07) |
($0.06) |
|
($0.15) |
($0.07) |
($0.09) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515222987/en/