RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies, today announced financial results for its fourth quarter and fiscal year ended March 23, 2012.
Fourth Quarter Financial Highlights
- Revenue was $50.0 million, a decrease of 14% from $58.5 million in the fourth quarter of fiscal 2011.
- Net license revenue was $31.7 million, a decrease of 4% from $33.1 million in the fourth quarter of fiscal 2011.
- Net license revenue for the prior-year quarter is net of $2.4 million in motion picture exhibitor stock option expense (a contra revenue item).
- Product and other revenue was $18.4 million, a decrease of 28% from $25.4 million in the fourth quarter of fiscal 2011. These results reflect an $8.1 million decrease in international product revenue that is partially attributable to a growing number of international consumers reusing RealD eyewear purchased at a previous RealD showing.
GAAP Results – Profitability Measures and Balance Sheet
- GAAP net income attributable to common stockholders was $5.5 million, or $0.10 per diluted share, compared to $4.5 million, or $0.08 per diluted share, for the fourth quarter of fiscal 2011. Results for the fourth quarter of fiscal 2012 include an income tax benefit of $2.1 million, equivalent to approximately $0.04 per diluted share.
- Gross margin increased to 54% from 51% in the fourth quarter of fiscal 2011.
- The Company’s balance sheet at March 23, 2012 included total cash and cash equivalents of $24.9 million and total debt of $25.0 million.
- Subsequent to the end of the fourth quarter of fiscal 2012, RealD entered into a new $125 million credit facility. As of May 31, 2012, unused borrowing capacity on the new credit facility was approximately $100 million.
- Adjusted EBITDA was $17.8 million, essentially flat compared to $17.8 million in the fourth quarter of fiscal 2011.
- Adjusted EBITDA increased to 36% of net revenue from 30% of net revenue in the fourth quarter of fiscal 2011.
- Adjusted EBITDA is defined within the section of this press release entitled “Use of Non-GAAP Financial Measures,” which includes a reconciliation to its most comparable GAAP measure, net income (loss).
- International markets generated 49% of license revenue compared to 64% of gross license revenue in the fourth quarter of fiscal 2011. The lower percentage from international license revenue reflects the difficult international comparison versus the prior-year quarter when Tangled, Chronicles of Narnia, Tron Legacy, Megamind and Gulliver’s Travels had strong results overseas. In addition, certain films released in the domestic market during the fourth quarter of fiscal 2012 were scheduled to release in key international countries after the end of the quarter.
- As of March 23, 2012, the Company had deployed approximately 20,200 RealD-enabled screens, an increase of 35% from approximately 15,000 screens as of March 25, 2011, and an increase of 500 screens, or 3%, from approximately 19,700 screens as of December 23, 2011.
- As of March 23, 2012, the Company had approximately 11,700 domestic screens at approximately 2,600 domestic theater locations and approximately 8,500 international screens at approximately 2,500 international theater locations.
- Subsequent to the end of the fourth quarter of fiscal 2012, the Company announced that its Board of Directors had authorized the repurchase of up to $50 million in RealD’s common stock.
- The authorization demonstrates management’s confidence in RealD’s future and its commitment to maximizing shareholder value.
- Revenue was $246.6 million, essentially flat compared to $246.1 million for fiscal 2011.
- Net license revenue was $147.8 million, an increase of 46% from $101.5 million for fiscal 2011.
- Net license revenue for fiscal 2011 is net of $36.4 million in motion picture exhibitor stock option expense (a contra revenue item).
- Product and other revenue was $98.8 million, a decrease of 32% from $144.6 million for fiscal 2011.
- GAAP net income attributable to common stockholders was $36.9 million, or $0.65 per diluted share, compared to a GAAP net loss attributable to common stockholders of $12.3 million, or $0.29 per share, for fiscal 2011.
- Gross margin increased to 52% from 28% for fiscal 2011.
- Adjusted EBITDA was $104.4 million, an increase of 68% from $62.2 million for fiscal 2011.
- Adjusted EBITDA increased to 42% of net revenue from 25% of net revenue for fiscal 2011.
|3D Theatrical Release Schedule for Fiscal 2013|
|(As of May 31, 2012 – Domestic)|
Fiscal Q1 2013
Domestic Release Date
|(ending 6/22/12)||Wrath of the Titans||3/30/2012|
|The Pirates! Band of Misfits||4/27/2012|
|Men in Black III||5/25/2012|
|Madagascar 3: Europe’s Most Wanted||6/8/2012|
|Abraham Lincoln: Vampire Hunter||6/22/2012|
Fiscal Q2 2013
Domestic Release Date
|(ending 9/21/12)||Amazing Spiderman||7/3/2012|
|Katy Perry: Part of Me 3D||7/5/2012|
|Ice Age: Continental Drift||7/13/2012|
|Step Up Revolution||7/27/2012|
|Nitro Circus: The Movie||8/10/2012|
|Resident Evil: Retribution||9/14/2012|
|Finding Nemo (re-release)||9/14/2012|
Fiscal Q3 2013
Domestic Release Date
|Silent Hill: Revelation 3D||10/26/2012|
|Rise of the Guardians||11/21/2012|
|Life of Pi||11/21/2012|
|The Hobbit: An Unexpected Journey||12/14/2012|
|Cirque du Soleil: Worlds Away||12/21/2012|
Fiscal Q4 2013
Domestic Release Date
|(ending 3/22/13)||The Great Gatsby||12/25/2012|
|The Texas Chainsaw Massacre 3D||1/4/2013|
|Hansel and Gretel: Witch Hunters||1/11/2013|
|Monsters, Inc. (re-release)||1/18/2013|
|Battle of the Year: The Dream Team||1/25/2013|
|Escape from Planet Earth||2/14/2013|
|Oz: The Great and Powerful||3/8/2013|
|Jack the Giant Killer||3/22/2013|
Sources: Rentrak and imdb.com.
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