Los Angeles, CA -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today announced financial results for the full year and fourth quarter of the fiscal year ended March 31, 2012.
Revenues for the fiscal year ended March 31, 2012 were $76.6 million, a 31.0% increase from $58.4 million in fiscal 2011. Adjusted EBITDA(1) for the full year was $58.0 million, a 26.7% increase from $45.8 million in the prior year. Net loss from continuing operations for the full year improved by $7.6 million, or 35.4% to ($14.0) million, or ($0.39) per share, compared with ($21.6) million, or ($0.71) per share in the comparable prior year period.
"Fiscal 2012 marked a successful strategic transformation of the Company. We repositioned Cinedigm by focusing on our core digital cinema servicing, software and independent content distribution units where we are clear market leaders, selling two non-core divisions and completing the acquisition of New Video, the world's largest digital aggregator of independent content," said Chris McGurk, the Company's Chairman and Chief Executive Officer, "Fiscal 2013 will be a year of investment and growth. We will launch our independent film releasing efforts starting with the June 22nd release of the documentary The Invisible War, continue to build our content library, invest in next generation software tools and expand internationally. We are moving aggressively to secure new customers and build upon our leading market position in all our core businesses while we make the investments necessary to drive strong shareholder returns in Fiscal 2013 and beyond."
Revenues for the fourth quarter of fiscal 2012 were $17.7 million, a 15.2% increase from $15.4 million in the fourth quarter a year ago. The increase in revenues was primarily the result of an increase from the Company's deployment units as well as its digital cinema servicing unit partially offset by a decline in revenues from the Company's Content and Entertainment unit, as focus was placed on the New Video acquisition.
In the fourth quarter of fiscal 2012, Adjusted EBITDA (1) from continuing operations totaled $13.2 million, an increase of 9.7% from $12.0 million in the year-ago period. Excluding the Company's deployment business, Adjusted EBITDA from continuing operations was $0.2 million, from $1.2 million a year ago. This decline was primarily due to unexpected delays in software revenue recognition and deployments for three major customers. This timing delay represented approximately $1.4 million of expected license fee revenues not occurring in this quarter. Nevertheless, deliveries and installations have begun, and the Company expects to recognize much of these revenues in the first and second quarters of Fiscal 2013.
Net loss from continuing operations in the fourth quarter of fiscal 2012 was ($5.5) million, or ($0.15) per share. This is compared to a net loss from continuing operations of ($4.9) million, or ($0.16) per share in the comparable prior year period. The fourth quarter 2012 was impacted by the final restructuring charge of $0.4 million related to the 2011 restructuring plan and M&A costs of $0.6 million from the New Video acquisition. An additional $1.1 million of New Video acquisition costs were recognized in April with the closing of the transaction and will impact the first quarter of 2013.
"We experienced a record fiscal 2012 with financial performance increases across all of our business units, including revenue and Adjusted EBITDA growth of 31% and 27%, respectively," said Adam Mizel, the Company's Chief Operating Officer and CFO. "Even with the impact of unexpected delays in software installations and the resulting delay in revenue recognition during the fourth quarter, we achieved record financial results for the year. As of March 31, 2012 the Phase II deployment had 6,725 systems under license agreement and had installed 5,609 systems to date. We expect to install an additional 600-630 systems during the current first fiscal quarter 2013 and we have a robust pipeline of new deployment customers as we approach the end our deployment period, and have received several case-specific extensions beyond this deadline. Combined Phase I and Phase II signings currently stand at 10,877. Our software sales pipeline also is larger than in recent years, and we are optimistic about new customer signings in the months ahead."
Fiscal 2013 Outlook
The Company expects consolidated GAAP revenues including its deployment units of $91-$97 million, and consolidated Adjusted EBITDA of $57-$59 million in Fiscal 2013.
The Company expects Fiscal 2013 Adjusted EBITDA from non-deployment operations of $11.2-$12.7 million, prior to the $4.5-$5.0 million of GAAP expense impact from 8-10 movie acquisitions and additional library acquisitions. Net of the GAAP expense impact, the Company expects to produce reported Adjusted EBITDA from non-deployment operations for Fiscal 2013 of $6.7-$7.7 million. The Company expects its portfolio of movie distribution rights to produce a strong and accretive return on investment (ROI).
(1) Adjusted EBITDA is defined by the Company to be earnings before interest, taxes, depreciation and amortization, other income (expense), net, stock-based compensation, provision for doubtful accounts, restructuring and transition expenses, merger and acquisition costs, allocated costs attributable to discontinued operations and certain other items. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of Adjusted EBITDA to U.S. GAAP net income (loss). The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the U.S. GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.