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 second quarter ended December 31, 2023.

“As expected, our second quarter results were down versus last year, reflecting the end to the Shuttered Venue Operators Grant, or SVOG, spending and the impact of the writers’ and actors’ strikes, which negatively impacted the box office and our customers’ ability to build budgets for 2024,” said Phil Rafnson, chairman and chief executive officer, MiT. “As a result of these delays, we saw no major projects move forward during the quarter, however, we did see continued benefits from the ongoing technology upgrade cycle.”

Second Quarter Highlights (Fiscal 2024 versus Fiscal 2023)

• Revenue decreased 32.6% to $3.3 million compared to $4.8 million;
• Gross Profit decreased to $0.8 million compared to $1.3 million; Gross Margin of 23.2%;
• GAAP Operating Loss of ($0.8) million compared to ($0.1) million;
• GAAP Net Loss and Loss per Share (EPS) of ($0.8) million and ($0.07) compared to GAAP Net Income and EPS of $0.0 million and $0.00, respectively;
• Non-GAAP Net Loss and Loss per Share (EPS) of ($0.8) million and ($0.07) compared to non-GAAP Net Income and EPS of $0.0 million and $0.00, respectively.

Select Financial Metrics: FY24 versus FY23 as of 12/31/2023*

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

2Q24

2Q23

Change

 

YTD FY24

 

YTD FY23

Change

 

Total Revenue

$3.3

$4.8

-32.6%

$9.9

$10.7

-7.4%

 

Gross Profit

$0.8

$1.3

-42.1%

$2.6

$2.9

-10.2%

 

Gross Margin

23.2%

27.1%

 

26.0%

26.8%

 

 

Operating Income (Loss)

($0.8)

($0.1)

-501.4%

($0.4)

($0.1)

-395.6%

 

Operating Margin

-25.4%

-2.8%

 

-4.5%

-0.8%

 

 

GAAP Net Income (Loss)

($0.8)

$0.0

nm

($0.4)

($0.0)

nm

 

GAAP Earnings (Loss) per Share

($0.07)

$0.00

nm

($0.03)

($0.00)

nm

 

Non-GAAP Net Income (Loss)

($0.8)

$0.0

nm

($0.4)

($0.0)

nm

 

Non-GAAP Income (Loss) Per Share

($0.07)

$0.00

nm

($0.03)

($0.01)

nm

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

Fiscal 2024 Commentary

“With the strikes behind us, the film industry is returning to normalized movie-making and marketing operations, but the impact from the strikes will be felt in the box office growth rates this year, which analysts expect to be flat to down. Additionally, our customers have just recently set or are establishing their budgets for 2024, which we hope will reflect more robust spending on new projects during the year’s second half (our first half of fiscal 2025).

“While the overall industry recovers from the strikes, our customers continue to upgrade technology for projectors and servers, and we are also having early success getting LEA Professional smart power amplifiers scoped into future projects. Additionally, several large potential customers are evaluating this product line for replacing current power amplifiers as they fail and need replacing at existing cinemas. We believe the latter, the attrition market for LEA smart power amplifiers, represents a $30-60 million annual TAM in North America for us to penetrate over time.

“We also continued to move forward with our emerging product lines in recent months. Our E-caddy concept was well received by the handful of Major League Baseball stadium executives we met. We are now preparing for in-factory field validation and testing of the hardware and firmware, a precursor to real-world field testing. At the same time, we are scoping out the service opportunity for this offering, which we believe can potentially transform the Company over the next several years,” concluded Rafnson.

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

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

 

FY22

FY23

YTD FY24

Total Revenue

$5.9

$4.8

$3.7

$5.8

$6.6

$3.3

 

$18.4

$20.2

$9.9

Gross Profit

$1.6

$1.3

$1.0

$1.4

$1.8

$0.8

 

$4.5

$5.3

$2.6

Gross Margin

26.6%

27.1%

27.9%

24.2%

27.4%

23.2%

 

24.3%

26.3%

26.0%

Operating Income (Loss)

$0.0

($0.1)

($0.5)

($1.4)

$0.4

($0.8)

 

($1.8)

($2.0)

($0.4)

Operating Margin

0.8%

-2.8%

-14.1%

-23.5%

5.8%

-25.4%

 

-9.6%

-9.8%

-4.5%

GAAP Net Income (Loss)

($0.1)

$0.0

($0.4)

($1.3)

$0.4

($0.8)

 

($1.3)

($1.8)

($0.4)

Diluted Income (Loss) per Share

($0.01)

$0.00

($0.04)

($0.12)

$0.04

  (0.07)

 

($0.13)

($0.17)

($0.03)

Non-GAAP Net Income (Loss)

($0.1)

$0.0

($0.4)

($0.2)

$0.4

($0.8)

 

($1.5)

($0.7)

($0.4)

Non-GAAP Diluted Income (Loss) per Share

($0.01)

$0.00

($0.04)

($0.02)

$0.04

($0.07)

 

($0.14)

($0.07)

($0.03)

*may not add up due to rounding                    

Dial-in and Webcast Information

Date/Time: Wednesday, February 14, 2024, 11:00 a.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=1655735&tp_key=73206c05af

Telephone Replay

Replay Dial-In: 1-844-512-2921 or 1-412-317-6671 Replay Expiration: Wednesday, February 28, 2024 at 11:59 p.m. ET Access ID: 13744353 Telephone Replays will be made available after 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)

 

 

December 31,

 

June 30,

2023

 

2023

 

Assets

 

 

 

 

 

 

Current Assets:

 

 

Cash

 

$

5,139

 

$

6,616

Accounts receivable, net

1,138

905

Inventories, net

 

 

4,459

 

 

4,419

Prepaid expenses and other

 

954

 

451

Total Current Assets

 

 

11,690

 

 

12,391

Long-Term Assets:

 

 

Right-of-use asset

 

 

282

 

 

415

Property and equipment, net

35

28

Intangibles, net

 

 

451

 

 

480

Other assets

 

16

 

16

Total Long-Term Assets

 

 

784

 

 

939

Total Assets

$

12,474

$

13,330

 

 

 

 

 

 

 

Liabilities And Stockholders’ Equity

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

$

1,192

$

1,507

Accrued expenses

 

 

682

 

 

618

Customer deposits

3,131

3,169

Lease liability–current

 

 

296

 

 

280

Unearned warranty revenue

 

40

 

26

Total Current Liabilities

 

 

5,341

 

 

5,600

 

 

Long-Term Liabilities:

 

 

 

 

 

 

Lease liability–non-current

 

—

 

151

Total Long-Term Liabilities

 

 

—

 

 

151

Total Liabilities

 

5,341

 

5,751

Stockholders’ Equity

 

 

 

 

 

 

Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,576,643 and 10,685,778 shares issued and outstanding at December 31, 2023 and June 30, 2023, respectively

—

—

Additional paid-in capital

 

 

12,371

 

 

12,462

Accumulated deficit

 

(5,238)

 

(4,883)

Total Stockholders’ Equity

 

 

7,133

 

 

7,579

Total Liabilities and Stockholders’ Equity

$

12,474

$

13,330

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except share and per share amounts)

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

December 31,

December 31,

2023

2022

2023

2022

 

Net sales

 

$

3,265

 

$

4,843

 

$

9,900

 

$

10,695

Cost of goods sold

 

2,506

 

3,531

 

7,322

 

7,824

Gross profit

 

 

759

 

 

1,312

 

 

2,578

 

 

2,871

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

72

61

139

127

Selling and marketing

 

 

628

 

 

594

 

 

1,170

 

 

1,204

General and administrative

 

889

 

795

 

1,716

 

1,630

Total operating expenses

 

 

1,589

 

 

1,450

 

 

3,025

 

 

2,961

Operating loss

 

(830)

 

(138)

 

(447)

 

(90)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities

—

269

—

129

Realized loss on marketable securities

 

 

—

 

 

(110)

 

 

—

 

 

(133)

Interest and other income, net

 

36

 

25

 

92

 

45

Total other income

 

 

36

 

 

184

 

 

92

 

 

41

 

Net income/(loss)

 

$

(794)

 

$

46

 

$

(355)

 

$

(49)

 

Net profit/(loss) per common share basic and diluted

$

(0.07)

$

0.00

$

(0.03)

$

(0.00)

Weighted average shares outstanding: basic and diluted (Note 3)

 

 

10,655,686

 

 

10,958,398

 

 

10,670,732

 

 

10,943,561

MOVING IMAGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

December 31,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

(355

)

 

$

(49

)

Adjustments to reconcile net profit/(loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Provision for doubtful accounts

 

 

4

 

 

 

(17

)

Depreciation expense

 

 

5

 

 

 

3

 

Amortization expense

 

 

29

 

 

 

48

 

ROU amortization

 

 

133

 

 

 

(4

)

Stock option compensation expense

 

 

10

 

 

 

—

 

Realized loss on investments

 

 

—

 

 

 

4

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(237

)

 

 

360

 

Inventories, net

 

 

(40

)

 

 

(694

)

Prepaid expenses and other

 

 

(503

)

 

 

597

 

Accounts payable

 

 

(315

)

 

 

44

 

Accrued expenses

 

 

64

 

 

 

(125

)

Unearned warranty revenue

 

 

14

 

 

 

41

 

Customer deposits

 

 

(38

)

 

 

(913

)

Lease liabilities

 

 

(135

)

 

 

—

 

Net cash used in operating activities

 

 

(1,364

)

 

 

(705

)

Cash flows from investing activities

 

 

 

 

 

 

Sales of marketable securities

 

 

—

 

 

 

4,088

 

Purchases of marketable securities

 

 

—

 

 

 

(4,144

)

Purchases of property and equipment

 

 

(12

)

 

 

(4

)

Net cash used in investing activities

 

 

(12

)

 

 

(60

)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Stock Buyback

 

 

(101

)

 

 

—

 

Net cash (used in) financing activities

 

 

(101

)

 

 

—

 

 

 

 

 

 

 

 

Net decrease in cash

 

 

(1,477

)

 

 

(765

)

Cash, beginning of the year

 

 

6,616

 

 

 

2,340

 

Cash, end of the year

 

$

5,139

 

 

$

1,575

 

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

 

FY22

FY23

YTD FY24

GAAP Net Income (Loss)

($0.1)

$0.0

($0.4)

($1.3)

$0.4

($0.8)

 

($1.3)

($1.8)

($0.4)

 

 

 

 

 

 

 

 

 

 

 

Other Income (expense)

$0.1

($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

 

$0.0

$0.6

$0.0

SNDBX Write-off

$0.0

$0.0

$0.0

$0.4

$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

 

$0.4

$0.1

$0.0

PPP Adjustment

$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)

 

($1.5)

($0.7)

($0.4)

Non-GAAP Diluted Income (Loss) per Share

$0.0

($0.0)

($0.0)

($0.0)

$0.0

($0.1)

 

($0.2)

($0.1)

($0.0)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214585591/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