MITQ Moving iMage Technologies Inc

Moving iMage Technologies, Inc. (NYSE AMERICAN: MITQ), (“MiT”), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced results for its fourth quarter and full-year ended June 30, 2023.

“We completed a solid year with double-digit revenue growth, higher gross margin and reduced non-GAAP losses,” said Phil Rafnson, chairman and chief executive officer. “Fiscal 2023 was a transition year for MiT. As the box office increased sharply, we saw the beginning of a new, multi-year technology upgrade cycle, and cinema owners continued investing in new FF&E projects. Additionally, we made meaningful progress in our strategy to transform our business with higher margin, recurring revenue technology offerings that have the potential to meaningfully accelerate revenue growth and profits over the medium to longer term.

“Additionally, our fiscal 2023 results would have been even better had we not seen approximately $3.4 million of pushouts in our legacy FF&E projects business during the second half of fiscal 2023. Pushouts are not uncommon in this part of our business, and this lumpiness is a big reason we are developing new technology offerings with recurring revenue streams. We also had roughly $1 million, or $0.09 per share, in non-recurring, non-cash year-end accounting write-downs in the fourth quarter that negatively impacted our GAAP operating and net losses.”

Fourth Quarter Fiscal 2023 Highlights (versus Fiscal 2Q22)

• Revenue of $5.8 million compared to $5.6 million;
• Gross Profit of $1.4 million compared to $1.5 million; Gross Margin of 24.2%;
• GAAP Operating Loss of ($1.4) million compared to ($0.5) million;
  • GAAP Operating loss in fiscal 2023 included ($1.0 million) in non-cash accounting write-downs;
• GAAP Net Loss and Loss per Share of ($1.3) million and ($0.12) compared to ($0.7) million and ($0.07), respectively;
• Non-GAAP Net Loss and Loss per Share of ($0.2) million and ($0.02) compared to ($0.7) million and ($0.06), respectively.

Fiscal Year 2023 Highlights (versus Fiscal 2Q22)

• Revenue of $20.2 million compared to $18.4 million;
• Gross Profit of $5.3 million compared to $4.5 million, Gross Margin expanded by 200 basis points to 26.3%;
• GAAP Operating Loss of ($2.0) million compared to ($1.8) million;
  • GAAP Operating loss in fiscal 2023 included ($1.0 million) in non-cash accounting write-downs;
• GAAP Net Loss and Loss per Share of ($1.8) million and ($0.17) compared to ($1.3) million and ($0.13), respectively;
• Non-GAAP Net Loss and Loss per Share of ($0.7) million and ($0.07) compared to Non-GAAP Net Loss and Loss per Share of ($1.5) million and ($0.14), respectively.

Select Financial Metrics: FY23 versus FY22 as of 6/30/2023*

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

4Q23

4Q22

Change

FY23

FY22

Change

Total Revenue

$

5.8

 

$

5.6

 

2.6

%

$

20.2

 

$

18.4

 

10.1

%

Gross Profit

$

1.4

 

$

1.5

 

-5.4

%

$

5.3

 

$

4.5

 

19.0

%

Gross Margin

 

24.2

%

 

26.2

%

 

 

26.3

%

 

24.3

%

 

Operating Loss

($

1.4

)

($

0.5

)

200.7

%

($

2.0

)

($

1.8

)

-12.1

%

Operating Margin

 

-23.5

%

 

-8.0

%

 

 

-9.8

%

 

-9.6

%

 

GAAP Net Loss

($

1.3

)

($

0.7

)

nm

($

1.8

)

($

1.3

)

-33.7

%

GAAP Loss Per Share

($

0.12

)

($

0.07

)

nm

($

0.17

)

($

0.13

)

-30.4

%

Non-GAAP Net Loss

($

0.2

)

($

0.7

)

65.4

%

($

0.7

)

($

1.5

)

53.6

%

Non-GAAP Loss Per Share

($

0.02

)

($

0.06

)

65.9

%

($

0.07

)

($

0.14

)

54.2

%

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

Fiscal 2024 Commentary

“Given the lumpy nature of our projects, we are approaching fiscal 2024 guidance cautiously by targeting low double-digit revenue growth from our legacy businesses while continuing to move towards break-even on a non-GAAP basis. That said, we do see multiple upside opportunities from our newer initiatives, which aren’t included in our current guidance. These include an ADA compliance product refresh at a large national circuit, recording any sales of LEA Professional products, order growth in Esports above the modest fiscal 2023 levels, National Amusements rolling out CineQC to its international locations, initial sales of MiTranslator and other international sales. Given these, we have significant opportunities to accelerate growth, and we plan to provide updates throughout the year as our growth initiatives hit milestones,” 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 10:00 a.m Eastern Time.

Dial-in and Webcast Information

Date/Time: Tuesday, September 26, 2023, 10:00 a.m. ET Toll-Free: 1-877-407-4018 Toll/International: 1-201-689-8471 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=1635216&tp_key=7431f4e981

Telephone Replay

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671 Replay Expiration: Thursday, November 9, 2023 at 11:59 p.m. ET Access ID: 13741344 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.

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

June 30,

 

2023

2022

Assets

 

 

Current Assets:

 

 

Cash

$

6,616

 

$

2,340

 

Marketable securities - current

 

—

 

 

4,363

 

Accounts receivable, net

 

905

 

 

1,762

 

Inventories, net

 

4,419

 

 

4,033

 

Prepaid expenses and other

 

451

 

 

864

 

Total Current Assets

 

12,391

 

 

13,362

 

Long-Term Assets:

 

 

Marketable securities – long-term

 

—

 

 

325

 

Right-of-use asset

 

415

 

 

—

 

Property and equipment, net

 

28

 

 

22

 

Intangibles, net

 

480

 

 

839

 

Goodwill

 

—

 

 

287

 

Other assets

 

16

 

 

16

 

Total Long-Term Assets

 

939

 

 

1,489

 

Total Assets

$

13,330

 

$

14,851

 

 

 

 

Liabilities And Stockholders’ Equity

 

 

Current Liabilities:

 

 

Accounts payable

$

1,507

 

$

1,583

 

Accrued expenses

 

618

 

 

655

 

Customer deposits

 

3,169

 

 

3,158

 

Lease liability–current

 

280

 

 

—

 

Unearned warranty revenue

 

26

 

 

18

 

Total Current Liabilities

 

5,600

 

 

5,414

 

 

 

 

Long-Term Liabilities:

 

 

Lease liability–non-current

 

151

 

 

—

 

Deferred rent

 

—

 

 

22

 

Total Long-Term Liabilities

 

151

 

 

22

 

Total Liabilities

 

5,751

 

 

5,436

 

Stockholders’ Equity

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,685,778 and 10,828,398 shares issued and outstanding at June 30, 2023 and 2022, respectively

 

—

 

 

—

 

Additional paid-in capital

 

12,462

 

 

12,500

 

Accumulated deficit

 

(4,883

)

 

(3,085

)

Total Stockholders’ Equity

 

7,579

 

 

9,415

 

Total Liabilities and Stockholders’ Equity

$

13,330

 

$

14,851

 

 

MOVING IMAGE TECHNOLOGIES, INC.

CONSOLIDATED

STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

 

 

 

 

Year Ended

Year Ended

 

June 30,

June 30,

 

2023

2022

Net sales

$

20,207

 

$

18,351

 

Cost of goods sold

 

14,897

 

 

13,890

 

Gross profit

 

5,310

 

 

4,461

 

 

 

 

Operating expenses:

 

 

Research and development

 

261

 

 

238

 

Selling and marketing

 

2,630

 

 

2,389

 

General and administrative

 

3,440

 

 

3,596

 

Impairment of long-term assets

 

954

 

 

—

 

Total operating expenses

 

7,285

 

 

6,223

 

Operating loss

 

(1,975

)

 

(1,762

)

Other expenses (income)

 

 

Unrealized loss on marketable securities

 

—

 

 

242

 

Realized (gain)/loss on marketable securities

 

(38

)

 

6

 

PPP loan forgiveness

 

—

 

 

(705

)

Interest expense and other income, net

 

(139

)

 

40

 

Total other expense (income)

 

(177

)

 

(417

)

Net loss

$

(1,798

)

$

(1,345

)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding: basic and diluted (Note 5)

 

10,922,710

 

 

10,577,994

 

Net loss per common share basic and diluted

$

(0.16

)

$

(0.13

)

 

MOVING IMAGE TECHNOLOGIES, INC.

CONSOLIDATED

STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

Year Ended

Year Ended

 

June 30,

June 30,

 

2023

2022

Cash flows from operating activities:

 

 

 

 

 

Net loss

$

(1,798

)

$

(1,345

)

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

 

 

PPP loan forgiveness

 

—

 

 

(705

)

Provision for doubtful accounts

 

389

 

 

(218

)

Depreciation expense

 

9

 

 

19

 

Amortization expense

 

96

 

 

96

 

Impairment expense

 

550

 

 

—

 

ROU amortization

 

244

 

 

(3

)

Stock option compensation expense

 

146

 

 

245

 

Unrealized loss on investments

 

—

 

 

242

 

Realized (gain) loss on investments

 

(38

)

 

6

 

Changes in operating assets and liabilities

 

 

Accounts receivable

 

868

 

 

(1,090

)

Inventories, net

 

(386

)

 

(2,499

)

Prepaid expenses and other

 

413

 

 

348

 

Accounts payable

 

(76

)

 

(328

)

Accrued expenses

 

83

 

 

42

 

Unearned warranty revenue

 

8

 

 

(16

)

Customer deposits

 

11

 

 

1,819

 

Advances on notes receivable

 

(250

)

 

—

 

Net cash used in operating activities

 

269

 

 

(3,387

)

Cash flows from investing activities

 

 

Sales of marketable securities

 

12,395

 

 

641

 

Purchases of marketable securities

 

(7,669

)

 

(5,577

)

Purchases of property and equipment

 

(15

)

 

(20

)

 

 

(400

)

 

—

 

Net cash provided by (used in) investing activities

 

4,311

 

 

(4,956

)

 

 

 

Cash flows from financing activities

 

 

Net proceeds from initial public offering

 

—

 

 

11,244

 

Payments on notes payable

 

—

 

 

(1,241

)

Payments on line of credit

 

—

 

 

(590

)

Stock Buyback

 

(304

)

 

—

 

Net cash provided by (used in) financing activities

 

(304

)

 

9,413

 

 

 

 

Net increase in cash

 

4,276

 

 

1,070

 

Cash, beginning of the year

 

2,340

 

 

1,270

 

Cash, end of the year

$

6,616

 

$

2,340

 

 

MOVING IMAGE TECHNOLOGIES, INC.

RECONCILIATION OF NON-GAAP ITEMS

(in millions except for per share numbers)

 

4Q23

4Q22

FY23

FY22

GAAP Net Loss

$

(1.3

)

$

(0.7

)

$

(1.8

)

$

(1.3

)

Add back:

 

Impairments of Goodwill and Intangibles

$

0.6

 

$

-

 

$

0.6

 

$

-

 

SNDBX Note Write-off

$

0.4

 

$

-

 

$

0.4

 

$

-

 

Other Income/Expense

$

-

 

$

(0.2

)

$

-

 

$

0.1

 

PPP Loan Forgiveness Gain

$

-

 

$

-

 

$

-

 

$

(0.7

)

Stock Compensation Expense

$

0.1

 

$

0.2

 

$

0.1

 

$

0.4

 

 

Non-GAAP Net Loss

$

(0.2

)

$

(0.7

)

$

(0.7

)

$

(1.5

)

Non-GAAP Loss Per Share

$

(0.02

)

$

(0.06

)

$

(0.07

)

$

(0.14

)

Shares Outstanding

 

10.9

 

 

10.8

 

 

10.6

 

 

10.9

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230926038747/en/

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