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