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 third quarter ended March 31, 2024.
“As expected, the long tail of the actors and writers strike in
late 2023 impacted our third quarter results,” said Phil Rafnson,
chairman and chief executive officer of MiT. “The strikes impacted
the industry year to date for several reasons, including the lower
2024 domestic box office, which analysts expect to be flat to down,
and budgeting delays at many of our customers. Specifically, we
have seen multiple projects and orders pushed out into future
quarters. Additionally, our quarterly financial results were
affected by a large order for seats, which have a significantly
lower gross margin than the Company average, and the negative side
to having strong operating leverage.”
Fiscal 2024 Commentary
“While we expect the industry hangover to continue into our
fourth fiscal quarter, we have seen new recent activity that gives
us reasons for optimism. First, we finished field testing for LEA’s
smart power amps with a top-10 circuit, and the results were
promising. We also began testing these products at another top-10
circuit and hope to start field testing at two other top-10
circuits over the next few quarters. While we have had some early
success scoping LEA products into new cinema builds, keep in mind
the attrition market for LEA smart power amplifiers represents a
$30-60 million annual TAM in North America for us to penetrate over
time.
“Behind the scenes, we continue moving forward with our emerging
product lines. Our E-caddy concept was well received by the handful
of Major League Baseball and other sports stadium executives we met
and is now expected to move into the early manufacturing and
testing stage during our fourth quarter. Here, we also had some
recent positive news on the hardware side related to power
consumption, which could materially expand the range of services we
can offer.
“For CineQC, the SaaS quality control and management platform
that we license and resell into cinema, the broader rollout has
been delayed due to needing a more robust system. While we’ve been
co-developing with our paying customer, at zero expense to us,
after a thorough evaluation, we decided the underlying technology
needs alterations to scale, and we plan to significantly upgrade
the technology, which should take approximately two quarters to
complete. When finished, we expect to have direct control of the
technology and a path to finally market the offering more
broadly.
“For Esports, we’ve pivoted recently to take a parallel approach
with certain larger potential customers while SNDBX is working to
raise growth capital. If successful, we believe this could help
scale our Esports business more quickly,” concluded Rafnson.
Third Quarter Highlights
(Fiscal 2024 versus Fiscal 2023)
- Revenue increased 4.0% to $3.9 million compared to $3.7
million;
- Gross Profit decreased to $0.7 million compared to $1.0
million; Gross Margin was 17.4%;
- GAAP Operating Loss of ($0.6) million compared to ($0.5)
million;
- GAAP Net Loss and Loss per Share (EPS) of ($0.6) million and
($0.06) compared to ($0.4) million and $(0.04), respectively;
- Non-GAAP Net Loss and Loss per Share (EPS) of ($0.6) million
and ($0.06) compared to ($0.4) million and $(0.04),
respectively;
- As of March 31, 2024, the Company held cash of $5.9
million;
- During the quarter, the Company repurchased 310,000
shares.
Select Financial Metrics: FY24
versus FY23*
in millions, except for Income (loss) per
Share and percentages
3Q24
3Q23
Change
YTD FY24
YTD FY23
Change
Total Revenue
$3.9
$3.7
4.0%
$13.8
$14.4
-4.5%
Gross Profit
$0.7
$1.0
-35.1%
$3.3
$3.9
-16.8%
Gross Margin
17.4%
27.9%
23.6%
27.1%
Operating Income (Loss)
($0.6)
($0.5)
-23.4%
($1.1)
($0.6)
-78.5%
Operating Margin
-16.7%
-14.1%
-7.9%
-4.3%
GAAP Net Income (Loss)
($0.6)
($0.4)
-41.7%
($1.0)
($0.5)
-102.5%
GAAP Earnings (Loss) per Share
(0.06)
($0.04)
-48.8%
($0.09)
($0.04)
-96.8%
Non-GAAP Net Income (Loss)
($0.6)
($0.4)
-40.6%
($1.0)
($0.5)
-109.3%
Non-GAAP Income (Loss) Per
Share
($0.06)
($0.04)
-47.6%
($0.09)
($0.04)
-104.8%
nm = not measurable/meaningful; *may not
add up due to rounding
Trended Financials* in millions, except for Income
(loss) per Share and percentages
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
FY22
FY23
YTD FY24
Total Revenue
$5.9
$4.8
$3.7
$5.8
$6.6
$3.3
$3.9
$18.4
$20.2
$13.8
Gross Profit
$1.6
$1.3
$1.0
$1.4
$1.8
$0.8
$0.7
$4.5
$5.3
$3.3
Gross Margin
26.6%
27.1%
27.9%
24.2%
27.4%
23.2%
17.4%
24.3%
26.3%
23.6%
Operating Income (Loss)
$0.0
($0.1)
($0.5)
($1.4)
$0.4
($0.8)
($0.6)
($1.8)
($2.0)
($1.1)
Operating Margin
0.8%
-2.8%
-14.1%
-23.5%
5.8%
-25.4%
-16.7%
-9.6%
-9.8%
-7.9%
GAAP Net Income (Loss)
($0.1)
$0.0
($0.4)
($1.3)
$0.4
($0.8)
($0.6)
($1.3)
($1.8)
($1.0)
Diluted Income (Loss) per Share
($0.01)
$0.00
($0.04)
($0.12)
$0.04
(0.07)
($0.06)
($0.13)
($0.17)
($0.09)
Non-GAAP Net Income (Loss)
($0.1)
$0.0
($0.4)
($0.2)
$0.4
($0.8)
($0.6)
($1.5)
($0.7)
($1.0)
Non-GAAP Diluted Income (Loss) per Share
($0.01)
$0.00
($0.04)
($0.02)
$0.04
($0.07)
($0.06)
($0.14)
($0.07)
($0.09)
*may not add up due to rounding
Dial-in and Webcast
Information
Date/Time: Wednesday, May 15, 2024, 12:00 p.m. ET
Toll-Free: 1-877-407-4021 Toll/International:
1-201-689-8472 Call me™: Participants can use Guest dial-in
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Webcast:
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Telephone Replay
Replay Dial-In: 1-844-512-2921 or 1-412-317-6671
Replay Expiration: Wednesday, May 29, 2024 at 11:59 p.m. ET
Access ID: 13746715 Telephone Replays will be made available
after the 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)
(unaudited)
March 31,
June 30,
2024
2023
(unauditied)
Assets
Current Assets:
Cash
$
5,946
$
6,616
Accounts receivable, net
890
905
Inventories, net
4,220
4,419
Prepaid expenses and other
938
451
Total Current Assets
11,994
12,391
Long-Term Assets:
Right-of-use asset
214
415
Property and equipment, net
31
28
Intangibles, net
437
480
Other assets
16
16
Total Long-Term Assets
698
939
Total Assets
$
12,692
$
13,330
Liabilities And
Stockholders’ Equity
Current Liabilities:
Accounts payable
$
1,457
$
1,507
Accrued expenses
747
618
Customer deposits
3,895
3,169
Lease liability–current
224
280
Unearned warranty revenue
52
26
Total Current Liabilities
6,375
5,600
Long-Term Liabilities:
Lease liability–non-current
—
151
Total Long-Term Liabilities
—
151
Total Liabilities
6,375
5,751
Stockholders’ Equity
Common stock, $0.00001 par value,
100,000,000 shares authorized, 10,285,971 and 10,685,778 shares
issued and outstanding at March 31, 2024 and June 30, 2023,
respectively
—
—
Additional paid-in capital
12,157
12,462
Accumulated deficit
(5,840
)
(4,883
)
Total Stockholders’ Equity
6,317
7,579
Total Liabilities and Stockholders’
Equity
$
12,692
$
13,330
MOVING IMAGE TECHNOLOGIES,
INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in thousands except share and
per share amounts)
(unaudited)
Three Months Ended
Nine Months Ended
March 31,
March 31,
2024
2023
2024
2023
Net sales
$
3,890
$
3,741
$
13,790
$
14,435
Cost of goods sold
3,214
2,699
10,536
10,523
Gross profit
676
1,042
3,254
3,912
Operating expenses:
Research and development
73
66
212
195
Selling and marketing
547
663
1,717
1,867
General and administrative
705
839
2,421
2,464
Total operating expenses
1,325
1,568
4,350
4,526
Operating loss
(649
)
(526
)
(1,096
)
(614
)
Other income (expense)
Unrealized loss on marketable
securities
—
81
—
243
Realized loss on marketable securities
—
—
—
(167
)
Interest and other income, net
48
21
140
66
Total other income (expense)
48
102
140
142
Net income/(loss)
$
(601
)
$
(424
)
$
(956
)
$
(472
)
Net profit/(loss) per common share basic
and diluted
$
(0.06
)
$
(0.04
)
$
(0.09
)
$
(0.04
)
Weighted average shares outstanding: basic
and diluted
10,436,519
10,956,413
10,593,229
10,947,790
MOVING IMAGE TECHNOLOGIES,
INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
December 31,
2024
2023
Cash flows from operating
activities:
Net income/(loss)
$
(956
)
$
(472
)
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities:
Provision for credit losses
(52
)
(5
)
Inventory reserve
433
80
Depreciation expense
9
6
Amortization expense
43
72
ROU amortization
201
—
Stock option compensation expense
15
—
Realized gain on investments
—
(76
)
Changes in operating assets and
liabilities
Accounts receivable
67
778
Inventories, net
(234
)
(883
)
Prepaid expenses and other
(487
)
289
Accounts payable
(50
)
558
Accrued expenses
129
(6
)
Unearned warranty revenue
26
30
Customer deposits
726
(1,066
)
Lease liabilities
(207
)
—
Net cash used in operating activities
(337
)
(685
)
Cash flows from investing
activities
Sales of marketable securities
—
12,418
Purchases of marketable securities
—
(7,660
)
Purchases of property and equipment
(12
)
(7
)
Net cash provided by used in investing
activities
(12
)
4,751
Cash flows from financing activities
Stock Buyback
(334
)
(49
)
Stock issued for Director expense
13
—
Net cash (used in) financing
activities
(321
)
(49
)
Net increase (decrease) in cash
(670
)
4,017
Cash, beginning of the year
6,616
2,340
Cash, end of the year
$
5,946
$
6,357
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
eliminating one-time items and non-cash stock compensation expense
is useful in evaluating our core operating results and 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
2Q24
3Q24
FY22
FY23
YTD FY24
GAAP Net Income (Loss)
($0.1)
$0.0
($0.4)
($1.3)
$0.4
($0.8)
($0.6)
($1.3)
($1.8)
($1.0)
Other Income (expense)
$0.1
($0.2)
$0.0
$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
$0.0
$0.0
$0.6
$0.0
SNDBX Write-off
$0.0
$0.0
$0.0
$0.4
$0.0
$0.0
$0.0
$0.0
$0.4
$0.0
Stock Compensation Expense
$0.0
$0.0
$0.0
$0.1
$0.0
$0.0
$0.0
$0.4
$0.1
$0.0
PPP Adjustment
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
$0.0
($0.7)
$0.0
$0.0
Non-GAAP Net Income (Loss)
$0.0
($0.1)
($0.4)
($0.2)
$0.4
($0.8)
($0.6)
($1.5)
($0.7)
($1.0)
Non-GAAP Diluted Income (Loss) per Share
$0.00
($0.01)
($0.04)
($0.02)
$0.04
($0.07)
($0.06)
($0.15)
($0.07)
($0.09)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240515222987/en/
Brian Siegel, IRC, MBA Vice President, Investor Relations and
Strategic Communications for MiT Senior Managing Director, Hayden
IR (346) 396-8696 Brian@haydenir.com
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