[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
ACCESS INTEGRATED TECHNOLOGIES, INC. ANNOUNCES THIRD QUARTER 2006 RESULTS
RAPID REVENUE GROWTH CONTINUES
MORRISTOWN, N.J. - FEBRUARY 9, 2006 - ACCESS INTEGRATED TECHNOLOGIES, INC.
("ACCESSIT" OR THE "COMPANY") (AMEX: AIX) today reported that quarterly revenues
increased by 61%, to $4,411,000 from $2,739,000 in the comparable year ago
period. Revenues for the nine months ended December 31, 2005 also increased by
72%, to $12,284,000, from $7,135,000 in the comparable year ago period.
EBITDA(1) (defined below) in the quarter was a loss of $818,000. Net loss in the
quarter amounted to $2,037,000 or a loss of $0.13 per basic and diluted share.
THIRD FISCAL QUARTER HIGHLIGHTS
o Quarterly net loss available to common stockholders was $2,037,000 compared
to a loss of $1,319,000 in the comparable year ago period. Net loss available
to common stockholders for the nine months ended December 31, 2005 was
$13,787,000 compared to a loss of $3,988,000 in the comparable year ago
period. The loss reported in the nine months ended included the impact of
increased interest and non-cash interest expenses and debt conversion expense
related to the early conversion of the company's $7.6 million, 4-year
Convertible Debentures and exercise of all related common stock warrants.
Collectively, these non-cash items accounted for $8,936,000 for the nine
month period.
o EBITDA for the three and nine month periods ended December 31, 2005 was a
loss of $818,000, and $2,392,000, respectively, compared to EBITDA losses of
$249,000, and $1,137,000 in the comparable year ago periods. Adjusted
EBITDA(1) (defined below), which also excludes non-cash stock based
compensation and non-recurring items, for the three and nine month periods
ended December 31, 2005 was unchanged from EBITDA and Adjusted EBITDA in the
comparable prior year periods was a loss of $249,000 and $634,000,
respectively, after a non-recurring charge of $499,000 during the nine
months.
o Quarterly loss from operations was $2,150,000, compared to a loss of
$1,236,000 in the comparable year ago period. Loss from operations for the
nine months ended December 31, 2005, was $6,473,000, compared to a loss of
$3,814,000 in the comparable year ago period. The increase was due to higher
selling, general and administrative expenses due to increased headcount and
office expenses; public company expenses; research & development; and to
higher depreciation and amortization resulting from the increased asset base.
o During the quarter, the company secured its first exhibitor commitments for
the rollout of digital cinema systems with Carmike, the nation's third
largest exhibitor and two regional exhibitors, Emagine and Ultrastar. The
company has already completed the installation of 153 digital systems at
Emagine, Ultrastar and its own digital showcase theatre, and plans for
initial installations at Carmike's 2,300 screens have begun. It is the
Company's intention to complete the first 2,500 installations by April 2007
and complete all 4,000 installs contemplated in its plan by October 31, 2007
as previously announced.
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(1) EBITDA is defined by the Company to be earnings before interest, taxes,
depreciation and amortization, and other income/(expense), net, and
non-recurring items. Adjusted EBITDA is defined by the Company to be
earnings before interest, taxes, depreciation and amortization, other
income/(expense), net, non-recurring items, and non-cash stock-based
compensation. EBITDA and Adjusted EBITDA are presented because management
believes it provides additional information with respect to the performance
of its fundamental business activities. A reconciliation of EBITDA to GAAP
net income is included in the table attached to this release. EBITDA is a
measure of cash flow typically used by many investors, but is not a measure
of earnings as defined under Generally Accepted Accounting Principles, and
may be defined differently by others.
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(973) 290-0080 55 MADISON AVENUE, MORRISTOWN, NJ 07960
Bud Mayo, Chief Executive Officer of ACCESSIT, stated: "Revenue growth during
the quarter continues to be driven by increasing activity in our software
services area and at the Pavilion Digital Showcase Theatre. During the quarter,
our digital cinema rollout plan officially got underway with the signing of
three exhibitors, Carmike, Emagine and Ultrastar. Although results in the
quarter do not reflect the receipt of the first virtual print fees and transport
revenues from our recently completed 153 screen deployments with Emagine and
Ultrastar, this revenue, although very modest, will be included in the company's
fourth quarter results - another milestone for the company. Furthermore, the
third quarter marks an important transition period for the company, a period in
which expense growth is expected to slow as we turn our attention to executing
on our studio-supported 4,000-screen digital cinema deployment and ramping-up
revenues and cashflow generated from an increasing base of installed digital
cinema systems."
CONFERENCE CALL NOTIFICATION
ACCESSIT will host a conference call to discuss its financial results at 2:00
p.m. EST today, Thursday, February 9, 2006. The conference can be accessed by
dialing 617-847-8705, passcode 36248099 at least five minutes before the start
of the call. The conference call will also be webcast simultaneously and will be
accessible via the web on ACCESSIT's Web site, WWW.ACCESSITX.COM. A replay of
the call will be available at 617-801-6888, passcode 39143984 through Thursday,
February 16, 2006.
ACCESS INTEGRATED TECHNOLOGIES, INC. (ACCESSIT) is the industry leader in
offering a fully managed storage and electronic delivery service for owners and
distributors of digital content to movie theaters and other venues. Its
studio-backed 4,000 screen ongoing deployment of digital systems is the first
and the largest of its kind in the world. Supported by a robust platform of
fail-safe Internet data centers, ACCESSIT is able to leverage the market-leading
role of its Theatrical Distribution System (TDS) with its innovative digital
delivery capabilities and in-theatre software systems to provide the highest
level of technology available to enable the emerging Digital Cinema industry to
transition from film without changing workflows. For more information on
ACCESSIT, visit www.accessitx.com.
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 ACCESSIT officials during presentations about ACCESSIT, along with
ACCESSIT's filings with the Securities and Exchange Commission, including
ACCESSIT'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 ACCESSIT'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 ACCESSIT,
its technology, economic and market factors and the industries in which ACCESSIT
does business, among other things. These statements are not guarantees of future
performance and ACCESSIT undertakes no specific obligation or intention to
update these statements after the date of this release.
# # #
Contact:
Suzanne Tregenza Moore Michael Glickman
ACCESSIT The Dilenschneider Group
55 Madison Avenue 212.922.0900
Suite 300
Morristown, NJ 07960
973.290.0080
WWW.ACCESSITX.COM
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Three Months Ended
December 31,
-------------------------
2004 2005
---------- ----------
Revenues:
Media services $ 1,300 $ 2,751
Data center services 1,439 1,660
---------- ----------
Total revenues 2,739 4,411
Costs of revenues (exclusive of
depreciation and amortization
shown below):
Media services 570 1,813
Data center services 1,062 1,298
---------- ----------
Total costs of revenues 1,632 3,111
---------- ----------
Gross profit 1,107 1,300
Operating expenses:
Selling, general and administrative 1,303 2,164
Provision for doubtful accounts 23 55
Research and development 122 37
Depreciation and amortization 895 1,194
---------- ----------
Total operating expenses 2,343 3,450
---------- ----------
Loss from operations (1,236) (2,150)
Interest income -- 97
Interest expense (90) (313)
Non-cash interest expense (43) (32)
Debt conversion expense -- (125)
Other (expense) income, net (27) 409
---------- ----------
Loss before income tax benefit (1,396) (2,114)
Income tax benefit 77 77
---------- ----------
Net loss $ (1,319) $ (2,037)
========== ==========
Net loss available to common
stockholders per common share:
Basic and diluted $ (0.13) $ (0.13)
========== ==========
Weighted average number of common
shares outstanding:
Basic and diluted 10,041,879 15,399,530
========== ==========
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands) (Unaudited)
Three Months Ended
December 31,
-------------------------
2004 2005
---------- ----------
Net loss $ (1,319) $ (2,037)
ADD BACK:
Depreciation and amortization 895 1,194
Amortization of software development 92 138
Interest income -- (97)
Interest expense 90 313
Non-cash interest expense 43 32
Income tax benefit (77) (77)
Debt conversion expense -- 125
Other expense (income), net 27 (409)
---------- ----------
EBITDA (as defined) $ (249) $ (818)
========== ==========
Adjusted EBITDA (as defined) $ (249) $ (818)
========== ==========
ACCESS INTEGRATED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
Nine Months Ended
December 31,
-------------------------
2004 2005
---------- ----------
Revenues:
Media services $ 2,496 $ 7,377
Data center services 4,639 4,907
---------- ----------
Total revenues 7,135 12,284
Costs of revenues (exclusive of
depreciation and amortization
shown below):
Media services 912 5,147
Data center services 3,102 3,593
---------- ----------
Total costs of revenues 4,014 8,740
---------- ----------
Gross profit 3,121 3,544
Operating expenses:
Selling, general and administrative 3,588 5,956
Provision for doubtful accounts 598 90
Research and development 288 324
Non-cash stock-based compensation 4 --
Depreciation and amortization 2,457 3,647
---------- ----------
Total operating expenses 6,935 10,017
---------- ----------
Loss from operations (3,814) (6,473)
Interest income -- 180
Interest expense (279) (1,837)
Non-cash interest expense (155) (1,325)
Debt conversion expense -- (6,208)
Other (expense) income, net 17 1,643
---------- ----------
Loss before income tax benefit and
minority interest (4,231) (14,020)
Income tax benefit 233 233
---------- ----------
Loss before minority interest (3,998) (13,787)
Minority interest in loss of subsidiary 10 --
---------- ----------
Net loss $ (3,988) $ (13,787)
========== ==========
Net loss available to common
stockholders per common share:
Basic and diluted $ (0.42) $ (1.07)
========== ==========
Weighted average number of common
shares outstanding:
Basic and diluted 9,432,380 12,926,709
========== ==========
Access Integrated Technologies, Inc.
EBITDA and Adjusted EBITDA (as defined)
Reconciliation to GAAP Net Income
(In thousands) (Unaudited)
Nine Months Ended
December 31,
-------------------------
2004 2005
---------- ----------
Net loss $ (3,988) $ (13.787)
ADD BACK:
Depreciation and amortization 2,457 3,647
Amortization of software development 220 434
Interest income -- (180)
Interest expense 279 1,837
Non-cash interest expense 155 1,325
Income tax benefit (233) (233)
Minority Interest (10) --
Debt conversion expense -- 6,208
Other expense (income), net (17) (1,643)
---------- ----------
EBITDA (as defined) $ (1,137) $ (2,392)
========== ==========
ADD BACK:
Non-cash stock based compensation 4 --
Provision for customer related
unbilled revenue 499 --
---------- ----------
Adjusted EBITDA (as defined) $ (634) $ (2,392)
========== ==========
Access Integrated Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
March 31, December 31,
2005 2005
---------- ----------
(Audited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 4,779 $ 10,105
Accounts receivable, net 947 1,662
Prepaid and other current assets 1,312 1,961
---------- ----------
Total current assets 7,038 13,728
Property and equipment, net 14,261 25,274
Intangible assets, net 3,337 2,228
Capitalized software costs, net 1,622 1,433
Goodwill 10,363 9,310
Other assets 1,156 1,038
---------- ----------
Total assets $ 37,777 53,011
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 2,415 $ 8,380
Notes payable, current portion 1,415 1,188
Capital leases, current portion 432 83
Other current liabilities 1,042 1,157
---------- ----------
Total current liabilities 5,304 10,808
---------- ----------
Notes payable, net of current portion 12,682 2,072
Capital leases, net of current portion 6,058 5,995
Other liabilities 2,436 2,056
---------- ----------
Total liabilities 26,480 20,931
---------- ----------
Commitments and contingencies
Redeemable Class A common stock,
53,534 and 0 shares issued and
outstanding, respectively 250 --
Stockholders' Equity:
Class A common stock, $0.001 par value
per share; 40,000,000 shares authorized;
9,433,328 and 14,658,668 shares issued,
respectively and 9,381,888 and 14,607,228
shares outstanding, respectively 9 15
Class B common stock, $0.001 par value
per share; 15,000,000 shares authorized;
965,811 and 925,811 shares issued and
outstanding, respectively 1 1
Additional paid-in capital 32,696 67,510
Treasury Stock, at cost; 51,440 shares (172) (172)
Accumulated deficit (21,487) (35,274)
---------- ----------
Total stockholders' equity 11,047 32,080
---------- ----------
Total liabilities and stockholders' equity $ 37,777 $ 53,011
========== ==========