Moving iMage Technologies Announces First Quarter Fiscal 2024 Results
MITQ - Moving iMage Technologies, Inc. reports a 13% increase in revenue, 17% increase in gross profit, and a gross margin of 27.4% for the first quarter of the fiscal year. The company also achieved GAAP and Non-GAAP EPS of $0.04. Phil Rafnson, chairman and CEO, expressed satisfaction with the double-digit growth in revenue, gross margin expansion, and profits.
Positive
Double-digit growth in revenue and profits
Gross margin expansion
Positive EPS of $0.04
11/14/2023 - 07:00 AM
Revenue increased 13% ; gross profit increased 17% ; gross margin of 27.4% ; GAAP and Non-GAAP EPS of $0.04
FOUNTAIN VALLEY, Calif. --(BUSINESS WIRE)--
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 $5.9 million
Gross Profit increased of $1.8 million $1.6 million 27.4% ;
GAAP Operating Income of $0.4 million $0.0 million
GAAP Net Income and Earnings per Share (EPS) of $0.4 million $0.04 ($0.1) million and ($0.01
Non-GAAP Income and EPS of $0.4 million $0.04 $0.1 million $0.01
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
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, $0.00 001
—
—
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
Brian@haydenir.com
Source: Moving iMage Technologies, Inc.
What were the financial results for Moving iMage Technologies, Inc. in the first quarter of the fiscal year?
Moving iMage Technologies, Inc. reported a 13% increase in revenue, 17% increase in gross profit, and a gross margin of 27.4%, with GAAP and Non-GAAP EPS of $0.04.
Who is the chairman and CEO of Moving iMage Technologies, Inc.?
Phil Rafnson is the chairman and CEO of Moving iMage Technologies, Inc.
What sectors does Moving iMage Technologies, Inc. cater to?
Moving iMage Technologies, Inc. is a leading technology and services company for cinema, Esports, stadiums, arenas, and other out-of-home entertainment venues.
