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 first quarter ended September 30, 2024.

Phil Rafnson, Chairman and Chief Executive Officer of MiT commented:

“Our first fiscal quarter delivered promising results, underscoring a positive shift in the industry. The combined impact of a robust summer box office and a critical technology upgrade cycle has provided theaters with the confidence to start releasing budgets to invest in premium technologies. We successfully fulfilled orders for high-end solutions including immersive audio systems, laser projection upgrades and our own proprietary products, reinforcing our commitment to excellence.

"With the strikes now behind us, the industry demonstrated remarkable resilience propelled by a strong domestic box office performance this summer. As we move into the holiday season, momentum is clearly building. Major players like AMC, Regal and Cinemark are reporting solid gains. AMC has experienced increased attendance, especially for major releases, and Cinemark’s third-quarter results surpassed expectations as audiences enthusiastically embrace both premium experiences and traditional moviegoing.

"This resurgence aligns seamlessly with our premium offerings such as immersive sound systems and advanced laser projection upgrades, which are increasingly in demand as customers seek to enhance the theater experience. We are energized by this reinvigorated interest and remain committed to supporting the industry’s growth with innovative high-quality solutions.”

Fiscal 2025 Commentary

“We are optimistic that the industry’s strong box office momentum will extend through the holiday season and transition into an exciting lineup of releases for 2025. While our fiscal Q2 is typically slower due to the holiday season, the current industry climate presents a unique opportunity for favorable year-over-year comparisons due to last year’s setbacks related to the Hollywood strikes. Despite this improved environment, we still have not made back all the ground lost from the post-Covid recovery that was occurring prior to the strikes. However, the industry is re-gaining momentum, and we expect our customers to allocate more of their refreshed budgets in the second half of our fiscal year, which aligns with the first half of calendar 2025.

"In parallel, we are advancing our internal growth initiatives across the cinema and out-of-home entertainment markets, all aimed at driving revenue growth and margin expansion with the majority introducing recurring revenue streams. As we make progress on these initiatives, we look forward to keeping our investors updated on these initiatives and the value they bring.”

Select Financial Metrics: FY25 versus FY24*

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

1Q25

1Q24

Change

Total Revenue

$5.3

$6.6

-20.8%

Gross Profit

$1.4

$1.8

-24.6%

Gross Margin

26.1%

27.4%

 

Operating Income (Loss)

($0.1)

$0.4

NM

Operating Margin

-1.3%

5.8%

 

Net Income (Loss)

($0.0)

$0.4

NM

Diluted Income (Loss) per Share

($0.00)

$0.04

NM

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

First Quarter Highlights (Fiscal 2025 versus Fiscal 2024)

• Revenue decreased 20.8% to $5.3 million compared to $6.6 million;
• Gross Profit decreased 24.6% to $1.4 million compared to $1.8 million; Gross Margin was 26.1%;
• Operating Loss of ($0.1) million compared to Operating Income $0.4 million;
• Net Income and Earnings per Share (EPS) of ($0.0) million and ($0.00) compared to $0.4 million and $0.04, respectively;
• As of September 30, 2024, the Company held cash of $5.2 million.

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

1Q24

2Q24

3Q24

4Q24

1Q25

 

FY21

FY22

FY23

FY24

Total Revenue

$6.6

$3.3

$3.9

$6.3

$5.3

 

$8.5

$18.4

$20.2

$20.1

Gross Profit

$1.8

$0.8

$0.7

$1.4

$1.4

 

$2.0

$4.5

$5.3

$4.7

Gross Margin

27.4%

23.2%

17.4%

22.5%

26.1%

 

23.6%

24.3%

26.3%

23.3%

Operating Income (Loss)

$0.4

($0.8)

($0.6)

($0.5)

($0.1)

 

($1.5)

($1.8)

($2.0)

($1.6)

Operating Margin

5.8%

-25.4%

-16.7%

-7.3%

-1.3%

 

-17.6%

-9.6%

-9.8%

-7.7%

Net Income (Loss)

$0.4

($0.8)

($0.6)

($0.4)

($0.0)

 

($1.6)

($1.3)

($1.8)

($1.4)

Diluted Income (Loss) per Share

$0.04

(0.07)

($0.06)

($0.04)

$0.00

 

($0.23)

($0.13)

($0.16)

($0.13)

*may not add up due to rounding

Dial-in and Webcast Information

Date/Time: Thursday, November 14, 2024, 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=1697703&tp_key=fc786ab55c

Telephone Replay

Telephone Replays will be made available after conference end time.

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671 Replay Expiration: November 28, 2024 at 11:59 p.m. ET Access ID: 13750141

About Moving iMage Technologies

Moving iMage Technologies (NYSE American: MITQ) is a leading provider of technology, products, and services for the Motion Picture Exhibition industry, with expanding ventures into live entertainment venues and Esports. We design and manufacture a wide range of proprietary products in-house, including developing potentially disruptive SaaS and subscription-based solutions. Committed to excellence and innovation, Moving iMage Technologies aims to revolutionize the out of home entertainment experience with cutting-edge technology and superior service. 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,

 

 

 

2024

 

2024

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash

 

$

5,246

 

 

$

5,278

 

 

Accounts receivable, net

 

 

1,027

 

 

 

1,048

 

 

Inventories, net

 

 

2,616

 

 

 

3,117

 

 

Prepaid expenses and other

 

 

312

 

 

 

470

 

 

Total Current Assets

 

 

9,201

 

 

 

9,913

 

 

Long-Term Assets:

 

 

 

 

 

 

 

Right-of-use asset

 

 

1,074

 

 

 

144

 

 

Property and equipment, net

 

 

24

 

 

 

28

 

 

Intangibles, net

 

 

407

 

 

 

422

 

 

Other assets

 

 

16

 

 

 

16

 

 

Total Long-Term Assets

 

 

1,521

 

 

 

610

 

 

Total Assets

 

$

10,722

 

 

$

10,523

 

 

 

 

 

 

 

 

 

 

Liabilities And Stockholders’ Equity

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

1,832

 

 

$

2,261

 

 

Accrued expenses

 

 

347

 

 

 

320

 

 

Customer refunds

 

 

398

 

 

 

399

 

 

Customer deposits

 

 

1,309

 

 

 

1,651

 

 

Lease liability–current

 

 

170

 

 

 

151

 

 

Unearned warranty revenue

 

 

54

 

 

 

31

 

 

Total Current Liabilities

 

 

4,110

 

 

 

4,813

 

 

 

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

 

Lease liability–non-current

 

 

922

 

 

 

—

 

 

Total Long-Term Liabilities

 

 

922

 

 

 

—

 

 

Total Liabilities

 

 

5,032

 

 

 

4,813

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 9,896,850 and 9,896,850 shares issued and outstanding at September 30, 2024 and June 30, 2024, respectively

 

 

—

 

 

 

—

 

 

Additional paid-in capital

 

 

11,971

 

 

 

11,965

 

 

Accumulated deficit

 

 

(6,281

)

 

 

(6,255

)

 

Total Stockholders’ Equity

 

 

5,690

 

 

 

5,710

 

 

Total Liabilities and Stockholders’ Equity

 

$

10,722

 

 

$

10,523

 

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Net sales

 

$

5,252

 

 

$

6,635

 

Cost of goods sold

 

 

3,880

 

 

 

4,816

 

Gross profit

 

 

1,372

 

 

 

1,819

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

 

61

 

 

 

67

 

Selling and marketing

 

 

529

 

 

 

542

 

General and administrative

 

 

850

 

 

 

826

 

Total operating expenses

 

 

1,440

 

 

 

1,435

 

Operating (loss) income

 

 

(68

)

 

 

384

 

Other income (expense)

 

 

 

 

 

 

 

Interest and other income, net

 

 

43

 

 

 

55

 

Total other income

 

 

43

 

 

 

55

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(25

)

 

$

439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

9,896,850

 

 

 

10,685,778

 

Net (loss) income per common share basic and diluted

 

$

(0.00

)

 

$

0.04

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30

 

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(25

)

 

$

439

 

Adjustments to reconcile net (loss)/income to net cash (used in) operating activities:

 

 

 

 

 

 

Provision for credit losses

 

 

11

 

 

 

1

 

Inventory reserve

 

 

80

 

 

 

80

 

Depreciation expense

 

 

4

 

 

 

3

 

Amortization expense

 

 

15

 

 

 

14

 

Right-of-use amortization

 

 

58

 

 

 

66

 

Stock option compensation expense

 

 

5

 

 

 

5

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

10

 

 

 

(1,138

)

Inventories

 

 

421

 

 

 

(413

)

Prepaid expenses and other

 

 

158

 

 

 

203

 

Accounts payable

 

 

(429

)

 

 

1,405

 

Accrued expenses and customer refunds

 

 

26

 

 

 

225

 

Unearned warranty revenue

 

 

23

 

 

 

(14

)

Customer deposits

 

 

(342

)

 

 

(1,016

)

Lease liabilities

 

 

(47

)

 

 

(67

)

Net cash (used in) operating activities

 

 

(32

)

 

 

(207

)

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

—

 

 

 

(1

)

Net cash (used in) investing activities

 

 

—

 

 

 

(1

)

 

 

 

 

 

 

 

Net (decrease) increase in cash

 

 

(32

)

 

 

(208

)

Cash, beginning of the period

 

 

5,278

 

 

 

6,616

 

Cash, end of the period

 

$

5,246

 

 

$

6,408

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Right-of-use assets from lease modification

 

$

(988

)

 

$

—

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241114552512/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