AIX Access Integr Tech A

Rapid Revenue Growth Continues MORRISTOWN, N.J., Feb. 9 /PRNewswire-FirstCall/ -- 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 * 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. * 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. * 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. * 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. 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, http://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 http://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 http://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 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 (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. DATASOURCE: Access Integrated Technologies, Inc. CONTACT: Suzanne Tregenza Moore of AccessIT, +1-973-290-0080; or Michael Glickman of The Dilenschneider Group for AccessIT, +1-212-922-0900 Web site: http://www.accessitx.com/

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