Moving iMage Technologies Announces 241% Revenue Growth in Third Quarter Fiscal 2022

Rhea-AI Summary

Moving iMage Technologies (MITQ) reported a remarkable 241% increase in revenue, reaching $5.8 million for the third fiscal quarter ended March 31, 2022. The company achieved a GAAP net income of $0.6 million and diluted EPS of $0.06, compared to a net loss of ($0.2 million) last year. The non-GAAP net loss decreased to ($0.1 million) with an improved loss per share of $0.00. Additionally, MITQ raised its fiscal 2022 revenue guidance to $17.5 to $18.5 million, indicating significant growth potential.

Positive

• Revenue growth of 241% to $5.8 million.
• GAAP net income of $0.6 million and diluted EPS of $0.06.
• Narrowed non-GAAP net loss to $0.1 million with $0.00 loss per share.
• Increased fiscal 2022 revenue guidance to $17.5 to $18.5 million (155 to 169% growth).
• Backlog of $10.2 million.

Negative

• None.

Revenue growth of 241% to $5.8 Million

GAAP Net Income and diluted EPS of $0.6 million and $0.06

Reduced non-GAAP Net Loss and net Loss Per Share to $0.1 million and $0.00

Increases fiscal 2022 revenue guidance to $17.5 to $18.5 million (155 to 169% growth)

FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)-- Moving iMage Technologies, Inc. (NYSE AMERICAN: MITQ) (“MiT”), a leading digital cinema technology company, today announced results for its third fiscal quarter ended March 31, 2022.

“Robust industry tailwinds combined with our leading market position drove huge growth this quarter,” said Phil Rafnson, chairman and chief executive officer. “In addition to it still being early days in the theater technology upgrade cycle, the Domestic Box Office continues to benefit from early year tentpoles with over a dozen more potential blockbusters scheduled to be released before the end of the year. In addition, the billions of dollars in Shuttered Venue Operations Grant (SVOG) funds are flowing more freely, and our strong proprietary product portfolio and industry leadership position us well to capitalize on these near to mid-term opportunities.”

Fiscal Third Quarter Highlights (Fiscal 2022 versus fiscal 2021)

• Revenue increased 241.2% to $5.8 million versus $1.7 million;
• GAAP and Non-GAAP operating loss narrowed to ($0.1) million versus ($0.3) million;
• GAAP Net Income and diluted Earnings Per Share (EPS) of $0.6 million and $0.06 versus a net loss and loss per share of ($0.2) million and ($0.03), respectively;
• Non-GAAP net loss and diluted loss per share improved to ($0.1) million and ($0.00) versus ($0.2) million and ($0.03), respectively;
• Backlog was $10.2 million;
• Cash, cash equivalents and marketable securities of $9.8 million.

Fiscal 2022 Commentary

“The positive backdrop for the theater industry continues to strengthen, and we expect to be a major beneficiary of these trends. As a result, we are both increasing our revenue guidance and narrowing the range, and we now expect at least $17.5 to 18.5 million or 155 to 169% growth for the year. Within this range and depending on the mix, we expect to leave the year with a break-even or positive run-rate for both non-GAAP EPS and cash flow from operations,” concluded Rafnson.

Earnings Webcast and Replay Information

Management will host a webcast to review the Company’s results and forward expectations. Investors can submit questions ahead of time to brian@haydenir.com or ask questions through the webcast portal in real-time.

Webcast Date/Time: Tuesday, May 17, 2022, 11:00 a.m. Eastern Time
Webcast Location: https://investors.movingimagetech.com/

Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13730078
Replay Start: Tuesday May 17, 2022, 2:00 PM ET
Replay Expiry: Tuesday May 31, 2022, 11:59 PM ET

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. 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)
	March 31,				June 30,
	2022				2021
	(unaudited)				(Note 1)
Assets
Current Assets:
Cash and cash equivalents	$	6,337			$	1,270
Marketable securities		3,082				—
Accounts receivable, net		1,686				454
Inventories, net		2,985				1,534
Prepaid expenses and other		785				95
Total Current Assets		14,875				3,353
Long-Term Assets:
Marketable securities		347				—
Property, plant and equipment, net		24				21
Intangibles, net		863				935
Goodwill		287				287
Other assets		16				1,133
Total Long-Term Assets		1,537				2,376
Total Assets	$	16,412			$	5,729
Liabilities and Stockholders’ Equity (Deficit)
Current Liabilities:
Accounts payable	$	2,237			$	1,911
Accrued expenses		515				620
Customer deposits		3,534				1,339
Line of credit		—				590
Notes payable – current		—				237
Unearned warranty revenue		37				34
Total Current Liabilities		6,321				4,731
Long-Term Liabilities:
Notes payable, net of current portion		—				1,702
Deferred rent		24				25
Total Long-Term Liabilities		24				1,727
Total Liabilities		6,345				6,458
Stockholders’ Equity (Deficit)
Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,636,278 and 5,666,667 shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively		—				—
Additional paid-in capital		12,433				1,011
Accumulated deficit		(2,368	)			(1,740	)
Total Stockholders’ Equity (Deficit)		10,065				(729	)
Total Liabilities and Stockholders’ Equity (Deficit)	$	16,412			$	5,729

MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except share and per share amounts) (unaudited)
	Three Months				Three Months				Nine Months				Nine Months
	Ended				Ended				Ended				Ended
	March 31,				March 31,				March 31,				March 31,
	2022				2021				2022				2021
Net sales	$	5,835			$	1,710			$	12,728			$	5,076
Cost of goods sold		4,468				1,294				9,743				3,786
Gross profit		1,367				416				2,985				1,290
Operating expenses:
Research and development		53				42				172				103
Selling and marketing		539				277				1,653				934
General and administrative		906				389				2,470				1,209
Total operating expenses		1,498				708				4,295				2,244
Operating loss		(131	)			(292	)			(1,310	)			(956	)
Other (income) expense:
Unrealized gain on marketable securities		(17	)			—				(17	)			—
Realized gain on marketable securities		—				(185	)			—				(459	)
PPP loan and interest forgiveness		(705	)			—				(705	)			—
Interest and other income		(1	)			—				(2	)			—
Interest expense		2				57				40				194
Total other (income) expense		(724	)			(128	)			(684	)			(265	)
Net income (loss)	$	593			$	(164	)		$	(626	)		$	(691	)
Weighted average shares outstanding: basic and diluted*		10,636,278				5,666,667				10,508,152				5,638,626
Net income (loss) per common share basic and diluted	$	0.06			$	(0.03	)		$	(0.06	)		$	(0.12	)

MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Nine Months Ended				Nine Months Ended
	March 31,				March 31,
	2022				2021
Cash flows from operating activities:
Net loss	$	(626	)		$	(691	)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for (reversal of) doubtful accounts		(230	)			8
Depreciation expense		15				99
Amortization expense		72				72
Unrealized gain on investments		(17	)			—
Realized gain on investments		—				(459	)
Deferred rent		(1	)			5
Stock option compensation expense		178				—
PPP loan forgiveness		(705	)			—
Changes in operating assets and liabilities
Accounts receivable		(1,002	)			139
Inventories		(1,451	)			(263	)
Prepaid expenses and other		426				(104	)
Accounts payable		326				(311	)
Accrued expenses		(99	)			(78	)
Unearned warranty revenue		3				(21	)
Customer deposits		2,195				(270	)
Net cash used in operating activities		(916	)			(1,874	)
Cash flows from investing activities
Sale of (investment in) marketable securities		(3,412	)			550
Purchases of property, plant and equipment		(18	)			—
Net cash used in investing activities		(3,430	)			550
Cash flows from financing activities
Net Proceeds from initial public offering		11,244				—
Payments on line of credit		(590	)			(60	)
Proceeds from private placement		—				1,334
Paycheck Protection Program loan proceeds		—				698
Payments on notes payable		(1,241	)			(59	)
Net cash provided by financing activities		9,413				1,363
Net increase (decrease) in cash and cash equivalents		5,067				39
Cash and cash equivalents, beginning of the period		1,270				1,059
Cash and cash equivalents, end of the period	$	6,337			$	1,098

Use of Non-GAAP Measures

The Company uses non-GAAP operating income, net income and loss per share as a measure that we believe is 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 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 accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity.

Reconciliation of loss from operations to adjusted net loss	3Q22	3Q21	YTD FY22	YTD FY21
(in thousands except for Loss per Share and shares outstanding)
Income (Loss) from Operations	($131)	($292)	($1,310)	($956)
Adjustments:
Stock Option Compensation Expense	($60)	-	($178)	-
Line of Credit Guarantee	-	-	($50)	-
S-8 Auditors Fees - Incentive Plan Shares (IPO)	-	-	($8)	-
Staff Retention Bonuses (COVID-19)	-	-	($210)	-
Total Adjustments	($60)	$0	($446)	$0
Non-GAAP Income (Loss) from Operations	($71)	($292)	($864)	($956)
Other (Income) Expense	($726)	($185)	($724)	($459)
Interest Expense	$2	$57	$40	$194
Adjustments:
PPP Loan Forgiveness	$705	-	-	-
Non-GAAP Net Income (Loss)	($52)	($164)	($180)	($691)
Non-GAAP Income (Loss) per Share	($0.00)	($0.03)	($0.02)	($0.12)
Weighted Average Shares Outstanding, Basic and Diluted	10,636,278	5,666,667	10,508,152	5,638,626

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220517005472/en/

Brian Siegel, IRC, MBA

Senior Managing Director, Hayden IR

(346) 396-8696

Brian@haydenir.com

Source: Moving iMage Technologies, Inc.

FAQ

What were the earnings results for MITQ in the third fiscal quarter 2022?

MITQ reported a revenue of $5.8 million, a GAAP net income of $0.6 million, and a diluted EPS of $0.06.

What is the revenue guidance for MITQ for fiscal 2022?

MITQ increased its revenue guidance for fiscal 2022 to between $17.5 million and $18.5 million.

How much did MITQ's revenue grow compared to the previous year?

MITQ's revenue grew by 241% compared to the previous year.

What is the current backlog reported by MITQ?

MITQ's current backlog is reported at $10.2 million.

When will MITQ host a webcast to discuss earnings?

MITQ will host a webcast on May 17, 2022, at 11:00 a.m. Eastern Time.