Moving iMage Technologies Announces Fourth Quarter and Full-Year Fiscal 2022 Results

Annual revenue growth of 152% to $18.4 Million

Initiates fiscal 2023 revenue guidance of $22.0 to $23.5 million (+20 to 28% growth) and non-GAAP EPS of $0.04 to $0.08

FOUNTAIN VALLEY, Calif.–(BUSINESS WIRE)–$MITQ–Moving iMage Technologies, Inc. (NYSE AMERICAN: MITQ), (“MiT”), a leading digital cinema technology company, today announced results for its fourth fiscal quarter and full-year ended June 30, 2022.

“We completed our first year as a public company on a high-note, reporting 167% revenue growth for the fourth fiscal quarter and 152% for fiscal 2022,” said Phil Rafnson, chairman and chief executive officer. “The positive tailwinds in the industry remained intact, as movies such as Top Gun: Maverick, dominated the domestic box office and already putting its performance during the first half of calendar 2022 ahead of full-year calendar 2021. Additionally, the technology and theater upgrade cycle still remains in the early innings, and, when combined with our industry leadership, allowed us to finish the year from a position of strength.”

Fiscal Fourth Quarter 2022 Highlights (versus fiscal 2021)

  • Revenue increased 166.7% to $5.6 million versus $2.1 million;
  • GAAP and Non-GAAP operating loss were ($0.5) million and ($0.1) million versus ($0.6) million and ($0.6) million, respectively;
  • GAAP Net loss and diluted loss per share of ($0.7) million and ($0.07) versus net income and earnings per share (EPS) of $0.1 million and $0.01, respectively;
  • Non-GAAP net loss and diluted loss per share of ($0.4) million and ($0.04) versus ($0.6) million and ($0.11), respectively.

Fiscal 2022 Highlights (versus fiscal 2021)

  • Revenue increased 152.1% to $18.4 million versus $7.3 million;
  • GAAP and Non-GAAP operating loss of ($1.8) million and ($1.0) million versus ($1.6) million and ($1.6) million, respectively;
  • GAAP net loss and diluted loss per share of ($1.4) million and ($0.13) versus ($0.7) million and ($0.11), respectively;
  • Non-GAAP net loss and diluted loss per share of ($1.3) million and ($0.12) versus ($0.7) million and ($0.24), respectively;
  • Cash, cash equivalents and marketable securities of $7.0 million.

Select Financial Metrics: Fiscal 2022 versus Fiscal 2021 as of 6/30/2022*

 

 

 

(in millions, except for Loss per Share and percentages)

4Q22

4Q21

Change

FY

2022

FY

2021

Change

Total Revenue

$5.6

$2.1

166.7%

$18.4

$7.3

152.1%

Gross Profit

$1.5

$0.4

256.3%

$4.5

$1.7

164.7%

Gross Margin

26.8%

20.0%

 

24.5%

23.3%

 

GAAP Operating Loss

($0.5)

($0.6)

16.7%

($1.8)

($1.6)

-12.5%

Non-GAAP Operating Loss

($0.1)

($0.6)

80.5%

($1.0)

($1.6)

38.7%

GAAP Net Income (Loss)

($0.7)

$0.1

nm

($1.4)

($0.7)

-100.0%

Non-GAAP Net Loss

($0.4)

($0.6)

40.7%

($1.3)

($0.7)

81.3%

GAAP Diluted Income (Loss) Per Share

($0.07)

$0.01

nm

($0.13)

($0.11)

-18.2%

Non-GAAP Diluted Loss Per Share

($0.04)

($0.11)

68.9%

($0.12)

($0.24)

49.4%

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

Fiscal 2023 Commentary and Guidance

“As we look to fiscal 2023, we expect to benefit from our existing backlog of projects, sales of our proprietary manufactured projects and the ramping of our emerging products, specifically our CineQC SaaS platform and our eSports mobile carts. Given the early stages of the latter, which will have a small impact on our financial results during the first half of the year, we are targeting full-year revenue to be in the range of $22 to $23.5 million (20% to 28% growth). Within this range, we would expect to report non-GAAP EPS of between $0.04 and $0.08,” concluded Rafnson.

Fiscal 2023 Guidance

Fiscal 2022 Actuals

Change

Revenue

$22.0 – $23.5 Million

$18.4 Million

+20 – 28%

Non-GAAP EPS

$0.04 – $0.08

($0.13)

+$0.17 – 0.21

Diluted Shares Outstanding

10.9 million

10.6 million

+0.3 million

Earnings Conference Call and Webcast 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.

Toll Free: 1-877-407-4018

Toll/International: 1-201-689-8471

Webcast Date/Time: Friday September 23, 2022, 11:00 AM ET

Webcast Location: https://investors.movingimagetech.com/

Replay

Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Pin Number: 13732931

Replay Start: Friday September 23, 2022, 2:00 PM ET

Replay Expiry: Friday October 7, 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, 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)

 

 

 

June 30,

 

 

2022

 

2021

Assets

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$

2,340

 

 

$

1,270

 

Marketable securities

 

 

4,363

 

 

 

 

Accounts receivable, net

 

 

1,762

 

 

 

454

 

Inventories, net

 

 

4,033

 

 

 

1,534

 

Prepaid expenses and other

 

 

864

 

 

 

95

 

Total Current Assets

 

 

13,362

 

 

 

3,353

 

Long-Term Assets:

 

 

 

 

 

 

Marketable securities

 

 

325

 

 

 

 

Property, plant and equipment, net

 

 

22

 

 

 

21

 

Intangibles, net

 

 

839

 

 

 

935

 

Goodwill

 

 

287

 

 

 

287

 

Other assets

 

 

16

 

 

 

1,133

 

Total Long-Term Assets

 

 

1,489

 

 

 

2,376

 

Total Assets

 

$

14,851

 

 

$

5,729

 

 

 

 

 

 

 

 

Liabilities And Stockholders’ Equity (Deficit)

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,583

 

 

$

1,911

 

Accrued expenses

 

 

655

 

 

 

620

 

Customer deposits

 

 

3,158

 

 

 

1,339

 

Line of credit

 

 

 

 

 

590

 

Notes payable – current

 

 

 

 

 

237

 

Unearned warranty revenue

 

 

18

 

 

 

34

 

Total Current Liabilities

 

 

5,414

 

 

 

4,731

 

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

Notes payable, net of current portion

 

 

 

 

 

1,702

 

Deferred rent

 

 

22

 

 

 

25

 

Total Long-Term Liabilities

 

 

22

 

 

 

1,727

 

Total Liabilities

 

 

5,436

 

 

 

6,458

 

Stockholders’ Equity/(Deficit)

 

 

 

 

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,828,398 and 5,666,667 shares issued and outstanding

at June 30, 2022 and 2021, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

12,500

 

 

 

1,011

 

Accumulated deficit

 

 

(3,085

)

 

 

(1,740

)

Total Stockholders’ Equity (Deficit)

 

 

9,415

 

 

 

(729

)

Total Liabilities and Stockholders’ Equity (Deficit)

 

$

14,851

 

 

$

5,729

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

 

 

 

Three Months

 

Three Months

 

 

 

 

 

 

 

 

Ended

 

Ended

 

Year Ended

 

Year Ended

 

 

June 30, 

 

June 30, 

 

June 30, 

 

June 30, 

 

    

2022

    

2021

    

2022

    

2021

Net sales

 

$

 5,623

 

 

$

2,171

 

 

$

 18,351

 

 

$

 7,247

 

Cost of goods sold

 

 

 4,147

 

 

 

 1,772

 

 

 

 13,890

 

 

 

 5,558

 

Gross profit

 

 

 1,476

 

 

 

399

 

 

 

 4,461

 

 

 

 1,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 66

 

 

 

 49

 

 

 

 238

 

 

 

 152

 

Selling and marketing

 

 

736

 

 

 

 524

 

 

 

 2,389

 

 

 

 1,458

 

General and administrative

 

 

1,126

 

 

 

 431

 

 

 

 3,596

 

 

 

 1,640

 

Total operating expenses

 

 

 1,928

 

 

 

 1,004

 

 

 

 6,223

 

 

 

 3,250

 

Operating loss

 

 

 (452

)

 

 

 (605

)

 

 

 (1,762

)

 

 

 (1,561

)

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities

 

 

 259

 

 

 

 —

 

 

 

 242

 

 

 

 —

 

Realized gain on marketable securities

 

 

 6

 

 

 

            —

 

 

 

 6

 

 

 

 (459

)

PPP loan and interest forgiveness

 

 

 

 

 

 (694

)

 

 

 (705

)

 

 

(694

)

Interest and other income

 

 

2

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

Interest expense

 

 

 

 

 

 43

 

 

 

 40

 

 

 

 237

 

Total other (income) expense

 

 

 267

 

 

 

 (651

)

 

 

 (417

)

 

 

 (916

)

Net income (loss)

 

$

 (719

)

 

$

 46

 

 

$

 (1,345

)

 

$

 (645

)

Weighted average shares outstanding: basic and diluted

 

 

 10,788,285

 

 

 

 5,666,667

 

 

 

 10,577,994

 

 

 

 5,645,617

 

Net income (loss) per common share basic and diluted

 

$

 (0.07

)

 

$

 0.01

 

 

$

 (0.13

)

 

$

 (0.11

)

 

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

    

Year Ended

    

Year Ended

 

 

June 30, 

 

June 30, 

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

 (1,345

)

 

$

 (645

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

PPP loan forgiveness

 

 

 (705

)

 

 

 (694

)

Provision for doubtful accounts

 

 

 (218

)

 

 

 73

 

Depreciation expense

 

 

 19

 

 

 

 132

 

Amortization expense

 

 

 96

 

 

 

 95

 

Deferred rent

 

 

 (3

)

 

 

 5

 

Stock option compensation expense

 

 

 245

 

 

 

 —

 

Unrealized loss on investments

 

 

 242

 

 

 

 —

 

Realized (gain) loss on investments

 

 

 6

 

 

 

 (459

)

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

 (1,090

)

 

 

 282

 

Inventories

 

 

 (2,499

)

 

 

 60

 

Prepaid expenses and other

 

 

 348

 

 

 

 (444

)

Accounts payable

 

 

 (328

)

 

 

 (783

)

Accrued expenses

 

 

 42

 

 

 

 162

 

Unearned warranty revenue

 

 

 (16

)

 

 

 8

 

Customer deposits

 

 

 1,819

 

 

 

 511

 

Net cash used in operating activities

 

 

 (3,387

)

 

 

 (1,697

)

Cash flows from investing activities

 

 

 

 

 

 

Sales of marketable securities

 

 

 641

 

 

 

 550

 

Purchases of marketable securities

 

 

 (5,577

)

 

 

 —

 

Purchases of property, plant and equipment

 

 

 (20

)

 

 

 (2

)

Net cash provided by (used in) investing activities

 

 

 (4,956

)

 

 

 548

 

Cash flows from financing activities

 

 

 

 

 

 

Net proceeds from initial public offering

 

 

 11,244

 

 

 

 —

 

Payments on notes payable

 

 

 (1,241

)

 

 

 (62

)

Payments on line of credit

 

 

 (590

)

 

 

 (60

)

Paycheck Protection Program loan proceeds

 

 

 —

 

 

 

 698

 

Proceeds from private placement

 

 

 —

 

 

 

 784

 

Net cash provided by financing activities

 

 

 9,413

 

 

 

 1,360

 

Net increase in cash

 

 

 1,070

 

 

 

 211

 

Cash, beginning of the year

 

 

 1,270

 

 

 

 1,059

 

Cash, end of the year

 

$

 2,340

 

 

$

 1,270

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Deferred IPO costs

 

$

 —

 

 

$

 246

 

Reclassification of IPO related costs from other assets to equity

 

$

 1,116

 

 

$

 —

 

Cash paid during the period:

 

 

 

 

 

 

Interest

 

$

 40

 

 

$

 237

 

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,

(in thousands except for Loss per Share and shares

outstanding)

4Q22

4Q21

FY22

FY21

 

 

Income (Loss) from Operations

($452)

($605)

($1,762)

($1,561)

Adjustments:

 

 

 

 

Stock-based Compensation Expense

($235)

($413)

Professional Services

($100)

 

($100)

 

Line of Credit Guarantee

($50)

S-8 Auditors Fees – Incentive Plan Shares (IPO)

($8)

Staff Retention Bonuses (COVID-19)

($210)

Total Adjustments

($335)

$0

($781)

$0

Non-GAAP Income (Loss) from Operations

($117)

($605)

($981)

($1,561)

 Other (Income) Expense

$267

($694)

($457)

($1,153)

 Interest Expense

$0

$43

$40

$237

Adjustments:

 

 

 

 

  PPP Loan Foregiveness

 

$694

$705

$694

Non-GAAP Net Income (Loss)

($384)

($648)

($1,269)

($1,339)

 

 

 

 

 

Non-GAAP Income (Loss) per Share

($0.04)

($0.11)

($0.12)

($0.24)

Weighted Average Shares Outstanding, Basic and Diluted

10,788,285

5,666,667

10,577,994

5,645,617

 

Contacts

Brian Siegel, IRC, MBA

Senior Managing Director, Hayden IR

(346) 396-8696

Brian@haydenir.com