MITQ Moving iMage Technologies Inc

Revenue increased 13%; gross profit increased 17%; gross margin of 27.4%; GAAP and Non-GAAP EPS of $0.04

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 first quarter ended September 30, 2023.

“We started the new fiscal year on a strong note with double-digit growth in revenue, gross margin expansion and profits,” said Phil Rafnson, chairman and chief executive officer, MiT. “We’ve been talking about a technology refresh cycle for several quarters now, and this quarter’s results were encouraging, as projector replacements and our ADA compliance products were a key driver. We also made progress on several of the newer initiatives that we expect to drive revenue growth and profits over the next several years, including receiving our first orders for LEA Professional’s smart power amplifiers.

“From a capital allocation perspective, we put in place a 10b5-1 trading program for our previously approved share buyback at the end of the quarter. This meant that beginning November 1, the number of trading days that we could repurchase shares increased to approximately 250 days per year versus 90 days previously.”

First Quarter Fiscal 2024 Highlights (versus Fiscal 1Q23)

• Revenue increased 13.4% to $6.6 million compared to $5.9 million;
• Gross Profit increased of $1.8 million compared to $1.6 million; Gross Margin of 27.4%;
• GAAP Operating Income of $0.4 million compared to $0.0 million;
• GAAP Net Income and Earnings per Share (EPS) of $0.4 million and $0.04 compared to a GAAP Net Loss and Loss per Share of ($0.1) million and ($0.01), respectively;
• Non-GAAP Income and EPS of $0.4 million and $0.04 compared to Non-GAAP Net Income and Income per Share of $0.1 million and $0.01, respectively.

Select Financial Metrics: FY24 versus FY23 as of 9/30/2023* in millions, except for Income (loss) per Share and percentages

1Q24

1Q23

Change

Total Revenue

$6.6

$5.9

13.4%

Gross Profit

$1.8

$1.6

16.7%

Gross Margin

27.4%

26.6%

 

Operating Income

$0.4

$0.0

700.0%

Operating Margin

5.8%

0.8%

 

GAAP Net Income (Loss)

$0.4

($0.1)

nm

GAAP Earnings (Loss) per Share

$0.04

($0.01)

nm

Non-GAAP Net Income (Loss)

$0.4

($0.1)

nm

Non-GAAP Income (Loss) Per Share

$0.04

($0.01)

nm

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

Fiscal 2024 Commentary

“With the Hollywood strikes now behind us, the industry can jump start the production and release schedules and our customers, the cinema owners, which were not able to budget their expenditures with any confidence during the strike, can now start planning as well. Our initial fiscal 2024 guidance, which only included our legacy business and not our newer and emerging businesses, for low double-digit revenue growth with continuing to move towards break-even on a non-GAAP basis, took these delays into account with a down second quarter and a stronger second half of the year.

“That said, we continue to see multiple upside opportunities from our newer initiatives, which aren’t included in our current guidance. For instance, our guidance doesn’t include any sales of LEA Professional smart power amplifiers, but, in the second fiscal quarter, we already announced two orders for these products, and there is ongoing evaluation and testing occurring at more cinemas as we speak. Additional areas of potential upside include: an ADA compliance product refresh at a large national circuit that we are working to lock down; order growth in Esports shipments 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 significant opportunities to accelerate growth, we plan to provide updates throughout the year as our growth initiatives hit milestones,” concluded Rafnson.

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

1Q23

2Q23

3Q23

4Q23

1Q24

 

FY22

FY23

YTD FY24

Total Revenue

$5.9

$4.8

$3.7

$5.8

$6.6

 

$18.4

$20.2

$6.6

Gross Profit

$1.6

$1.3

$1.0

$1.4

$1.8

 

$4.5

$5.3

$1.8

Gross Margin

26.6%

27.1%

27.9%

24.2%

27.4%

 

24.3%

26.3%

$0.3

Operating Loss

$0.0

($0.1)

($0.5)

($1.4)

$0.4

 

($1.8)

($2.0)

$0.4

Operating Margin

0.8%

-2.8%

-14.1%

-23.5%

5.8%

 

-9.6%

-9.8%

$0.1

GAAP Net Income (Loss)

($0.1)

$0.0

($0.4)

($1.3)

$0.4

 

($1.3)

($1.8)

$0.4

Diluted Income (Loss) Per Share

($0.01)

$0.00

($0.04)

($0.12)

$0.04

 

($0.13)

($0.17)

$0.04

Non-GAAP Net Income (Loss)

($0.1)

$0.0

($0.4)

($0.2)

$0.4

 

($1.5)

($0.7)

$0.4

Non-GAAP Diluted Income (Loss) Per Share

($0.01)

$0.00

($0.04)

($0.02)

$0.04

 

($0.14)

($0.07)

$0.04

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

Dial-in and Webcast Information

Date/Time: Tuesday, November 14, 2023, 12:00 p.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=1642336&tp_key=f7b20dddac

Telephone Replay

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671 Replay Expiration: Tuesday, November 28, 2023 at 11:59 p.m. ET Access ID: 13742538 Telephone Replays will be made available 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)

 

 

 

 

 

 

 

September 30,

 

June 30,

 

 

 

2023

 

 

 

2023

 

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash

 

$

6,408

 

 

$

6,616

 

Accounts receivable, net

 

 

2,042

 

 

 

905

 

Inventories, net

 

 

4,752

 

 

 

4,419

 

Prepaid expenses and other

 

 

248

 

 

 

451

 

Total Current Assets

 

 

13,450

 

 

 

12,391

 

Long-Term Assets:

 

 

 

 

Right-of-use asset

 

 

349

 

 

 

415

 

Property and equipment, net

 

 

26

 

 

 

28

 

Intangibles, net

 

 

466

 

 

 

480

 

Other assets

 

 

16

 

 

 

16

 

Total Long-Term Assets

 

 

857

 

 

 

939

 

Total Assets

 

$

14,307

 

 

$

13,330

 

 

 

 

 

 

Liabilities And Stockholders’ Equity

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$

2,912

 

 

$

1,507

 

Accrued expenses

 

 

843

 

 

 

618

 

Customer deposits

 

 

2,153

 

 

 

3,169

 

Lease liability–current

 

 

288

 

 

 

280

 

Unearned warranty revenue

 

 

12

 

 

 

26

 

Total Current Liabilities

 

 

6,208

 

 

 

5,600

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

Lease liability–non-current

 

 

76

 

 

 

151

 

Total Long-Term Liabilities

 

 

76

 

 

 

151

 

Total Liabilities

 

 

6,284

 

 

 

5,751

 

Stockholders’ Equity

 

 

 

 

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

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

12,467

 

 

 

12,462

 

Accumulated deficit

 

 

(4,444

)

 

 

(4,883

)

Total Stockholders’ Equity

 

 

8,023

 

 

 

7,579

 

Total Liabilities and Stockholders’ Equity

 

$

14,307

 

 

$

13,330

 

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

September 30,

 

September 30,

 

 

2023

 

2022

 

 

(unaudited)

 

 

Net sales

 

$

6,635

 

$

5,852

 

Cost of goods sold

 

 

4,816

 

 

4,293

 

Gross profit

 

 

1,819

 

 

1,559

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Research and development

 

 

67

 

 

66

 

Selling and marketing

 

 

542

 

 

610

 

General and administrative

 

 

826

 

 

835

 

Total operating expenses

 

 

1,435

 

 

1,511

 

Operating profit

 

 

384

 

 

48

 

Other income (expense)

 

 

 

 

Unrealized loss on marketable securities

 

 

—

 

 

(140

)

Realized loss on marketable securities

 

 

—

 

 

(23

)

Interest and other income, net

 

 

55

 

 

20

 

Total other expense (income)

 

 

55

 

 

(143

)

 

 

 

 

 

Net profit/(loss)

 

$

439

 

$

(95

)

 

 

 

 

 

Weighted average shares outstanding: basic and diluted

 

 

10,685,778

 

 

10,928,724

 

Net profit/(loss) per common share basic and diluted

 

$

0.04

 

$

(0.01

)

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

September 30,

 

September 30,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net profit/(loss)

 

$

439

 

 

$

(95

)

Adjustments to reconcile net profit/(loss) to net cash provided by (used in) operating activities:

 

 

 

 

Provision for doubtful accounts

 

 

1

 

 

 

3

 

Depreciation expense

 

 

3

 

 

 

2

 

Amortization expense

 

 

14

 

 

 

24

 

ROU amortization

 

 

66

 

 

 

(5

)

Stock option compensation expense

 

 

5

 

 

 

—

 

Unrealized loss on investments

 

 

—

 

 

 

140

 

Realized loss on investments

 

 

—

 

 

 

23

 

Changes in operating assets and liabilities

 

 

 

 

Accounts receivable

 

 

(1,138

)

 

 

9

 

Inventories, net

 

 

(333

)

 

 

(887

)

Prepaid expenses and other

 

 

203

 

 

 

425

 

Accounts payable

 

 

1,405

 

 

 

1,597

 

Accrued expenses

 

 

225

 

 

 

28

 

Unearned warranty revenue

 

 

(14

)

 

 

28

 

Customer deposits

 

 

(1,016

)

 

 

(1,312

)

Lease liabilities

 

 

(67

)

 

 

—

 

Net cash used in operating activities

 

 

(207

)

 

 

(20

)

Cash flows from investing activities

Sales of marketable securities

 

 

—

 

 

 

493

 

Purchases of marketable securities

 

 

—

 

 

 

(517

)

Purchases of property and equipment

 

 

(1

)

 

 

(2

)

Net cash used in investing activities

 

 

(1

)

 

 

(26

)

 

 

 

 

 

Net decrease in cash

 

 

(208

)

 

 

(46

)

Cash, beginning of the year

 

 

6,616

 

 

 

2,340

 

Cash, end of the year

 

$

6,408

 

 

$

2,294

 

 

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 the elimination of one-time items and non-cash stock compensation expense 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 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

 

FY22

FY23

YTD FY24

GAAP Net Income (Loss)

($0.1)

$0.0

($0.4)

($1.3)

$0.4

 

($1.3)

($1.8)

$0.4

 

 

 

 

 

 

 

 

 

Other Income (expense)

($0.2)

$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

$0.6

$0.0

SNDBX Write-off

$0.0

$0.0

$0.0

$0.4

$0.0

 

$0.0

$0.4

$0.0

Stock Compensation Expense

$0.0

$0.0

$0.0

$0.1

$0.0

 

$0.4

$0.1

$0.0

PPP Adjustment

$0.0

$0.0

$0.0

$0.0

$0.0

 

($0.7)

$0.0

$0.0

 

 

 

 

 

 

 

 

 

Non-GAAP Net Income (Loss)

$0.1

$0.0

($0.4)

($0.2)

$0.4

 

($1.5)

($0.7)

$0.4

Non-GAAP Diluted Income (Loss) Per Share

$0.01

$0.0

($0.04)

($0.02)

$0.04

 

($0.14)

($0.07)

$0.0

Shares O/S

10.9

11.0

11.0

10.9

10.7

 

10.6

10.9

10.7

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231114785533/en/

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