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Moving iMage Technologies Announces Third Quarter Fiscal 2024 Results

FOUNTAIN VALLEY, Calif.–(BUSINESS WIRE)–

“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.

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1671871&tp_key=cda72b6393

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)

 

Contacts

Brian Siegel, IRC, MBA

Vice President, Investor Relations and Strategic Communications for MiT

Senior Managing Director, Hayden IR

(346) 396-8696

Brian@haydenir.com

Written by SerieAUKWire

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