MITQ Moving iMage Technologies Inc

Revenue growth of 42% to $4.8 million

Operating loss decreased by 79%; Achieved break-even EPS

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, 2022.

“We continued to see momentum during our second fiscal quarter with strong revenue growth, improved margins and profits,” said Phil Rafnson, chairman and chief executive officer. “The second quarter is typically our seasonally slowest due to the holidays, but we benefited from the acquisition of our ADA product line and discreet technology orders.”

Fiscal Second Quarter 2023 Highlights (versus fiscal 2Q22)

• Revenue increased 41.6% to $4.8 million compared to $3.4 million;
• Gross profit increased 46.4% to $1.3 million compared to $0.9 million, and gross margin expanded by 90 basis points to 27.1%;
• Operating loss decreased 78.5% to ($0.1) million compared to ($0.6) million;
• Net income and diluted EPS of $0.0 million and $0.00 compared to a net loss and a loss per share of ($0.6) million and ($0.06), respectively.

Select Financial Metrics: Fiscal 2023 versus Fiscal 2022 as of 12/31/2022*

(in millions, except for Loss per Share and percentages)

2Q23

2Q22

Change

YTD 2Q23

YTD 2Q22

Change

Total Revenue

$4.8

$3.4

41.6%

$10.7

$6.9

55.2%

Gross Profit

$1.3

$0.9

46.4%

$2.9

$1.6

77.4%

Gross Margin

27.1%

26.2%

 

26.8%

23.5%

 

Operating Income (Loss)

($0.1)

($0.6)

78.5%

($0.1)

($1.2)

92.4%

Operating Margin

-2.8%

-18.8%

 

-0.8%

-17.1%

 

Net Income (Loss)

$0.0

($0.6)

nm

($0.0)

($1.2)

96.0%

Diluted Earnings (Loss) Per Share

$0.00

($0.06)

nm

($0.00)

($0.12)

99.2%

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

 

 

Trended Financials* (in millions, except for Loss per Share and percentages)

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

 

FY21

FY22

FY23 (YTD)

Total Revenue

$3.5

$3.4

$5.8

$5.6

$5.9

$4.8

 

$8.5

$18.4

$10.7

Gross Profit

$0.7

$0.9

$1.4

$1.5

$1.5

$1.3

 

$2.0

$4.5

$2.9

Gross Margin

20.8%

26.2%

23.4%

26.2%

25.7%

27.1%

 

23.6%

24.3%

26.8%

Operating Loss

($0.5)

($0.6)

($0.1)

($0.5)

($0.0)

($0.1)

 

($1.5)

($1.8)

($0.1)

Operating Margin

-15.5%

-18.8%

-2.2%

-8.0%

-0.1%

-2.8%

 

-17.6%

-9.6%

-0.8%

Net Income (Loss)

($0.6)

($0.6)

$0.6

($0.7)

($0.1)

$0.0

 

($1.6)

($1.3)

($0.0)

Diluted Income (Loss) Per Share

($0.06)

($0.06)

$0.06

($0.07)

($0.01)

$0.00

 

($0.23)

($0.13)

($0.00)

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

Fiscal 2023 Commentary and Guidance

Fiscal 2023 Guidance

Fiscal 2022 Actuals

Change

Revenue

$22.5 - $23.5 Million

$18.4 Million

23 - 28%

Diluted EPS

$0.04 - $0.06

($0.13)

$0.17 - 0.19

Diluted Shares Outstanding

10.9 million

10.6 million

0.3 million

“Our results for the first six. months of the year were strong, and we are well positioned to deliver strong year over year growth and margin improvement in fiscal 2023. While we are still evaluating the forecast for two of our newer product lines, which have the potential to deliver upside to our guidance.

“With respect to these two new product lines specifically, our partner SNDBX has a strong pipeline of potential customers, and we expect to receive additional orders for our MovEsports mobile cart system as they sign up more amateur, local Esports leagues and theaters to host these leagues across the country. Additionally, in January, we became the exclusive global distributor into cinema for LEA Professional and its line of smart power amplifiers. We are still assessing the potential sales opportunities for the remainder of the year for these products and have not included any potential financial impact in our guidance,” concluded Rafnson.

Earnings Conference Call and Webcast Information

Management will host a conference call and audio webcast to review the Company’s results and forward expectations at 11:00 a.m Eastern Time. Investors can submit questions ahead of time to brian@haydenir.com or ask questions through the webcast portal in real-time.

Dial-in and Webcast Information

Date/Time: Tuesday, February 14, 2023, 11:00 a.m. ET Toll-Free: 1-877-407-4018 Toll/International: 1-201-689-8471 Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1597941&tp_key=ef82d2e391

Telephone Replay

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671 Replay Expiration: Tuesday, February 28, 2023 at 11:59 PM ET Access ID: 13736361 Telephone Replays will be made available approximately 3 hours after 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)

 

December 31,

 

June 30,

 

2022

 

2022

(unaudited)

Assets

 

 

 

 

 

 

Current Assets:

 

Cash and cash equivalents

 

$

1,575

 

$

2,340

Marketable securities

4,421

4,363

Accounts receivable, net

1,419

1,762

Inventories

 

 

4,727

 

 

4,033

Prepaid expenses and other

 

267

 

864

Total Current Assets

 

 

12,409

 

 

13,362

Marketable securities

 

 

319

 

 

325

Right-of-use asset

543

--

Property, plant and equipment, net

 

 

23

 

 

22

Intangibles, net

791

839

Goodwill

 

 

287

 

 

287

Other assets

 

16

 

16

Total Assets

$

14,388

$

14,851

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

$

1,627

$

1,583

Accrued expenses

 

 

377

 

 

655

Customer deposits

2,245

3,158

Lease liability-current

 

 

265

 

 

--

Unearned warranty revenue

 

59

 

18

Total Current Liabilities

 

 

4,573

 

 

5,414

 

Long-Term Liabilities:

 

Lease liability-non-current

 

 

296

 

 

--

Deferred rent

 

--

 

22

Total Long-Term Liabilities

 

 

296

 

 

22

Total Liabilities

4,869

5,436

Stockholders’ Equity

 

 

 

 

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,958,398 and 10,828,398 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively

—

—

Additional paid-in capital

 

 

12,653

 

 

12,500

Accumulated deficit

 

(3,134)

 

(3,085)

Total Stockholders’ Equity

 

 

9,519

 

 

9,415

Total Liabilities and Stockholders’ Equity

$

14,388

$

14,851

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

(unaudited)

 

Three Months

Three Months

Six Months

Six Months

Ended

Ended

Ended

Ended

December 31,

December 31,

December 31,

December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net sales

 

$

4,843

 

$

3,419

 

$

10,695

 

$

6,893

 

Cost of goods sold

 

3,531

 

 

2,523

 

 

7,824

 

 

5,275

 

Gross profit

 

 

1,312

 

 

896

 

 

2,871

 

 

1,618

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Research and development

 

61

 

 

65

 

 

127

 

 

119

 

Selling and marketing

 

 

556

 

 

571

 

 

1,166

 

 

1,115

 

General and administrative

 

833

 

 

902

 

 

1,668

 

 

1,565

 

Total operating expenses

 

 

1,450

 

 

1,538

 

 

2,961

 

 

2,799

 

Operating income (loss)

 

(138

)

 

(642

)

 

(90

)

 

(1,181

)

Other (income) expenses:

 

 

 

 

 

Unrealized (gain) loss on investments

 

(11

)

 

—

 

 

129

 

 

—

 

Realized (gain) loss on investments

 

 

(156

)

 

—

 

 

(133

)

 

—

 

Interest and other income

 

(17

)

 

—

 

 

(37

)

 

—

 

Interest expense

 

 

—

 

 

2

 

 

—

 

 

40

 

Total other (income) expense

 

(184

)

 

2

 

 

(41

)

 

40

 

Net income (loss)

 

$

46

 

$

(644

)

$

(49

)

$

(1,221

)

 

 

 

 

Weighted average shares outstanding: basic and diluted

 

10,958,398

 

 

10,636,278

 

 

10.943,561

 

 

10,445,482

 

Net loss per common share basic and diluted

 

$

0.00

 

$

(0. 06

)

$

0.00

 

$

(0. 12

)

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Six Months Ended

 

Six Months Ended

December 31,

 

December 31,

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

Net loss

 

$

(49

)

 

$

(1,221

)

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

 

 

 

Provision for (reversal of) doubtful accounts

 

 

(17

)

 

 

(40

)

Depreciation expense

 

3

 

 

 

13

 

Amortization expense

 

 

48

 

 

 

48

 

Unrealized loss on investments

 

(129

)

 

 

—

 

Realized gain on investments

 

133

 

 

 

—

 

Cash expended in excess of rent expense

 

 

(4

)

 

 

—

 

Stock compensation expense

 

—

 

 

 

118

 

Changes in operating assets and liabilities

 

 

 

 

Accounts receivable

 

360

 

 

 

(164

)

Inventories

 

 

(694

)

 

 

(1,964

)

Prepaid expenses and other

 

597

 

 

 

(653

)

Accounts payable

 

 

44

 

 

 

(703

)

Accrued expenses

 

(125

)

 

 

(302

)

Unearned warranty revenue

 

 

41

 

 

 

(2

)

Customer deposits

 

(913

)

 

 

2,025

 

Net cash used in operating activities

 

 

(705

)

 

 

(2,845

)

Cash flows from investing activities

 

 

 

Sales of marketable securities

 

 

4,088

 

 

 

—

 

Purchase of marketable securities

 

 

(4,144

)

 

 

—

 

Purchases of property, plant and equipment

 

(4

)

 

 

(2

)

Net cash used in investing activities

 

 

(60

)

 

 

(2

)

Cash flows from financing activities

 

 

 

Net Proceeds from initial public offering

 

 

—

 

 

 

12,360

 

Payments on line of credit

 

—

 

 

 

(590

)

Payments on notes payable

 

—

 

 

 

(1,241

)

Net cash provided by financing activities

 

 

—

 

 

 

10,529

 

Net increase (decrease) in cash and cash equivalents

 

(765

)

 

 

7,682

 

Cash and cash equivalents, beginning of the period

 

 

2,340

 

 

 

1,270

 

Cash and cash equivalents, end of the period

$

1,575

 

 

$

8,952

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005211/en/

Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com