Moving iMage Technologies Announces 113% Revenue Growth in Second Quarter Fiscal 2022

NEW YORK–(BUSINESS WIRE)–Moving iMage Technologies, Inc. (NYSE AMERICAN: MITQ), (“MiT”), a leading digital cinema technology company, today announced results for its second fiscal quarter ended December 31, 2021.

“We delivered robust numbers in what is historically our seasonally slowest quarter,” said Phil Rafnson, chairman and chief executive officer. “We continued to benefit from a combination of our strong proprietary product portfolio and leading industry position, as cinema operators are just beginning to invest the Cares Act grants (SVOG) into technology and overall theater upgrades to remain competitive. Additionally, the domestic box office continued its strong recovery, with multiple blockbusters in late 2021 and analysts expecting a strong recovery in 2022.”

Fiscal Second Quarter Highlights (compared to fiscal 2021)

  • Revenue increased 113% to $3.4 million versus $1.6 million;
  • GAAP operating loss of ($0.6) million, versus ($0.4) million;
  • Non-GAAP operating loss of ($0.4) million versus ($0.4) 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;
  • Non-GAAP net loss and diluted loss per share was ($0.4) million and ($0.04) versus ($0.4) million and ($0.07), respectively;
  • Backlog increased to $11.1 million;
  • Cash and cash equivalents of $9.0 million.

Select Financial Metrics: Fiscal 2022 versus Fiscal 2021 as of 12/31/2021*

(in millions, except for loss per share and percentages)

2Q22

2Q21

Change

YTD

2022

YTD

2021

Change

Total Revenue

$3.4

$1.6

112.5%

$6.9

$3.4

102.9%

Gross Profit

$0.9

$0.4

112.8%

$1.6

$0.9

77.8%

Gross Margin

26.4%

26.3%

 

23.2%

26.5%

 

GAAP Operating Loss

($0.6)

($0.4)

-80.8%

($1.2)

($0.7)

-71.4%

Non-GAAP Operating Loss

($0.4)

($0.4)

50.0%

($0.8)

($0.7)

-14.3%

GAAP Net Loss

($0.6)

($0.4)

-60.8%

($1.2)

($0.8)

-50.0%

Non-GAAP Net Loss

($0.4)

($0.4)

0.0%

($0.8)

($0.8)

0.0%

GAAP Diluted Loss Per Share

($0.06)

($0.07)

14.3%

($0.12)

($0.14)

14.3%

Non-GAAP Diluted Loss Per Share

($0.04)

($0.07)

42.9%

($0.08)

($0.14)

42.9%

nm = not measurable/meaningful; *may not add up due to rounding

 

 

 

 

 

 

Fiscal 2022 Commentary

“The billions of dollars in government grants are still in the early days of being spent, and we expect this money to provide a higher jumping off point versus last cycle to the nascent upgrade cycles for both technology and facilities during the second half of our fiscal year and into fiscal 2023. As a result, we are both increasing our revenue guidance and narrowing the range, and we now expect at least $14 – 16 million, or 93 – 121% growth for the year.” concluded Rafnson.

Earnings Webcast and Replay Information

Management will host a webcast that can be accessed through the investor relations portion of the Company’s website at https://investors.movingimagetech.com/, and investors can submit questions ahead of time to brian@haydenir.com.

Replay

Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Pin Number: 13727051

Replay Start: Wednesday February 9, 2022, 2:00 PM ET

Replay Expiry: Wednesday February 23, 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. 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)

 

 

December 31,

 

June 30,

 

 

2021

 

2021

 

 

(unaudited)

 

Assets

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,952

 

 

$

1,269

 

Accounts receivable, net

 

 

658

 

 

 

454

 

Inventories

 

 

3,498

 

 

 

1,534

 

Prepaid expenses and other

 

 

751

 

 

 

86

 

Total Current Assets

 

 

13,859

 

 

 

3,343

 

Long-Term Assets:

 

 

 

 

 

 

Property, plant and equipment, net

 

 

9

 

 

 

21

 

Intangibles, net

 

 

887

 

 

 

935

 

Goodwill

 

 

287

 

 

 

287

 

Other assets

 

 

16

 

 

 

1,133

 

Total Long-Term Assets

 

 

1,199

 

 

 

2,376

 

Total Assets

 

$

15,058

 

 

$

5,719

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ and Members’ Equity (Deficit)

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,208

 

 

$

1,911

 

Accrued expenses

 

 

319

 

 

 

620

 

Customer deposits

 

 

3,364

 

 

 

1,339

 

Line of credit

 

 

 

 

 

590

 

Notes payable – related party

 

 

 

 

 

1,272

 

Notes payable – current

 

 

147

 

 

 

237

 

Unearned warranty revenue

 

 

32

 

 

 

34

 

Total Current Liabilities

 

 

5,070

 

 

 

6,003

 

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

Notes payable, net of current portion

 

 

551

 

 

 

1,702

 

Deferred rent

 

 

25

 

 

 

25

 

Total Long-Term Liabilities

 

 

576

 

 

 

1,727

 

Total Liabilities

 

 

5,646

 

 

 

7,730

 

Stockholders’ and Member’s Equity (Deficit)

 

 

 

 

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,636,278

shares issued and outstanding at December 31, 2021

 

 

 

 

 

 

Additional paid-in capital

 

 

10,234

 

 

 

 

Members’ deficit

 

 

 

 

 

(2,011

)

Accumulated deficit

 

 

(822

)

 

 

 

Total Stockholders’ and Members’ Equity (Deficit)

 

 

9,412

 

 

 

(2,011

)

Total Liabilities and Stockholders’ and Members’ Equity (Deficit)

$

15,058

$

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

 

Six Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

2021

 

2020

 

2021

 

2020

Net sales

 

$

3,419

 

 

$

1,609

 

 

$

6,893

 

 

$

3,366

 

Cost of goods sold

 

 

2,523

 

 

 

1,188

 

 

 

5,275

 

 

 

2,492

 

Gross profit

 

 

896

 

 

 

421

 

 

 

1,618

 

 

 

874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

65

 

 

 

34

 

 

 

119

 

 

 

61

 

Selling and marketing

 

 

571

 

 

 

374

 

 

 

1,115

 

 

 

657

 

General and administrative

 

 

902

 

 

 

368

 

 

 

1,565

 

 

 

818

 

Total operating expenses

 

 

1,538

 

 

 

776

 

 

 

2,799

 

 

 

1,536

 

Operating loss

 

 

(642

)

 

 

(355

)

 

 

(1,181

)

 

 

(662

)

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1

 

 

 

55

 

 

 

38

 

 

 

137

 

Total other expense

 

 

1

 

 

 

55

 

 

 

38

 

 

 

137

 

Net loss

 

$

(643

)

 

$

(410

)

 

$

(1,219

)

 

$

(799

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding: basic and diluted

 

 

10,636,278

 

 

 

5,666,667

*

 

 

10,222,771

 

 

 

5,666,667

*

Net loss per common share basic and diluted

 

$

(0.06

)

 

$

(0.07

)*

 

$

(0.12

)

 

$

(0.14

)*

*

 

The weighted average shares outstanding and net loss per share for the three and six months ended December

31, 2020 are proforma information to show the effect of the exchange of Class B membership interest in Moving

iMage Technologies, LLC for shares of common stock of Moving iMage Technologies, Inc. prior to the initial public

offering.

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Six Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,219

)

 

$

(799

)

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

 

 

 

 

 

 

Provision for (reversal of) doubtful accounts

 

 

(40

)

 

 

115

 

Depreciation expense

 

 

13

 

 

 

67

 

Amortization expense

 

 

48

 

 

 

47

 

Deferred rent

 

 

 

 

 

4

 

Stock option compensation expense

 

 

118

 

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(164

)

 

 

145

 

Inventories

 

 

(1,964

)

 

 

197

 

Prepaid expenses and other

 

 

(662

)

 

 

(89

)

Accounts payable

 

 

(703

)

 

 

(299

)

Accrued expenses

 

 

(302

)

 

 

(76

)

Unearned warranty revenue

 

 

(2

)

 

 

(17

)

Customer deposits

 

 

2,025

 

 

 

(673

)

Net cash used in operating activities

 

 

(2,852

)

 

 

(1,378

)

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(2

)

 

 

 

Net cash used in investing activities

 

 

(2

)

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Cash acquired through Exchange Agreement

 

 

8

 

 

 

 

Proceeds from equity raises, net of offering costs

 

 

12,360

 

 

 

 

Payments on notes payable

 

 

(1,241

)

 

 

(14

)

Payments on line of credit

 

 

(590

)

 

 

(60

)

Proceeds from notes payable

 

 

 

 

 

784

 

Net cash provided by financing activities

 

 

10,537

 

 

 

710

 

Net increase (decrease) in cash and cash equivalents

 

 

7,683

 

 

 

(668

)

Cash and cash equivalents, beginning of the period

 

 

1,269

 

 

 

1,058

 

Cash and cash equivalents, end of the period

 

$

8,952

 

 

$

390

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Deferred IPO costs

 

$

 

 

$

139

 

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

 

$

38

 

 

$

108

 

Use of Non-GAAP Measures

The Company uses non-GAAP 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, non-GAAP 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, (in thousands except for Loss per Share and shares outstanding)

2Q22

2Q21

YTD FY22

YTD FY21

   
   

Loss from Operations

($642)

($355)

($1,181)

($662)

   

Adjustments:

 

 

 

 

   

Stock Option Compensation Expense

($62)

($118)

   

Line of Credit Guarantee

($50)

   

S-8 Auditors Fees – Incentive Plan Shares (IPO)

($8)

   

Staff Retention Bonuses (COVID-19)

($160)

($210)

   

Total Adjustments

($222)

($386)

   

Non-GAAP Loss from Operations

($420)

($355)

($795)

($662)

   

 

 

 

 

 

   

Interest Expense

$1

$55

$38

$137

   

Non-GAAP Net Loss

($421)

($410)

($833)

($799)

   

 

 

 

 

 

   

Non-GAAP Loss per Share

($0.04)

($0.07)

($0.08)

($0.14)

   

Weighted Average Shares Outstanding, Basic and Diluted

10,636,278

5,666,667

10,222,771

5,666,667