Cinedigm Revenues Up 55 Percent From Same Period Last Year
As CEO Chris McGurk continues to reshape Cinedigm Digital Cinema Corporation, the company Thursday reported record financial results for the second quarter and first half of fiscal 2012, with revenues up 55% from the same period last year.
The strong results were driven by the largest quarter ever for digital cinema installations, as the conversion from film presentation in theaters continues to gain momentum.
Cinedigm did 1,427 conversions of movie screens during the quarter, which was a 122% increase over the previous record for the company, which occurred in the first quarter of the fiscal year.
Revenues from continuing operations in the second quarter were a company record $23.5 million, which was a 55.6% increase from the same quarter last year. That was also 15.5% ahead of the first quarter, which was the previous record.
For the first six months, revenues from continuing operations increased 43.9% to $43.9 million, compared to the same period one year earlier. The company recorded a net loss during the first half of $5.8 million, or 17 cents per share, down from a net loss from continuing operations of $15.4 million, or 52 centers per share, a year earlier.
"The first six months of fiscal 2012 was by far the most successful financial and operational performance period in the history of Cinedigm," said McGurk.
"These achievements reflect our commitment to transform Cinedigm to more aggressively leverage the growing worldwide digital cinema platform," added McGurk, who took over as chairman and CEO this past January.
Cinedigm also posted record EBITDA (earnings before interest, taxes, depreciation and amortization expenses) during the second quarter of $16.7 million, an increase of 53.9% from the prior year, and up 24.9% from the prior quarter.
Since his arrival, McGurk has made major changes. He has divested the pre-show advertising unit and sold the digital content delivery unit, while creating strategic partnerships.
Cinedigm is now focused on businesses where it can be a market leader – most notably software for movie distributors and exhibitors; and content distribution of special event programming for movie theaters.
Cinedigm has been able to put money aside from the division sales while also raising new capital. According to Adam Mizel, who is both CFO and now COO of Cinedigm, they have completed a $6.9 million private placement of common stock, and closed on a $100.5 million non-recourse financing facility.
Much of that money goes to support the growing digital conversion business. Cinedigm has already deployed 2,069 digital systems in fiscal 2012, which brings the total deployed in the fiscal year to 4,265 (through September 30, 2011). In total they have 9,667 screens under license to convert, of which 7,988 have already been installed.