Delaware
|
001-31810
|
22-3720962
|
(State or other jurisdiction
of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
55 Madison Avenue, Suite 300, Morristown, New Jersey
|
07960
|
(Address of principal executive offices)
|
(Zip Code)
|
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statements and Exhibits
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release, dated November 13, 2012, announcing Cinedigm Digital Cinema Corp.’s three months and six months ended September 30, 2012 financial results.
|
CINEDIGM DIGITAL CINEMA CORP.
|
|||
Dated: November 13, 2012
|
By:
|
/s/ Gary S. Loffredo
|
|
Gary S. Loffredo
President of Digital Cinema Services and General Counsel
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release, dated November 13, 2012, announcing Cinedigm Digital Cinema Corp.’s three months and six months ended September 30, 2012 financial results.
|
·
|
Consolidated revenues up 7.5% to $22.6 million
|
·
|
875 digital cinema installations, marking second highest install quarter in Company history
|
·
|
10 independent films acquired year-to-date
|
September 30, 2012
|
March 31, 2012
|
||||||
ASSETS
|
(Unaudited)
|
||||||
Current assets
|
|||||||
Cash and cash equivalents
|
$
|
20,270
|
$
|
17,843
|
|||
Restricted available-for-sale investments
|
—
|
9,477
|
|||||
Accounts receivable, net
|
33,711
|
24,502
|
|||||
Deferred costs, current portion
|
2,199
|
2,228
|
|||||
Unbilled revenue, current portion
|
7,590
|
7,510
|
|||||
Prepaid and other current assets
|
6,200
|
1,121
|
|||||
Note receivable, current portion
|
635
|
498
|
|||||
Assets held for sale
|
—
|
214
|
|||||
Total current assets
|
70,605
|
63,393
|
|||||
Restricted cash
|
5,751
|
5,751
|
|||||
Security deposits
|
241
|
207
|
|||||
Property and equipment, net
|
186,869
|
200,974
|
|||||
Intangible assets, net
|
15,171
|
466
|
|||||
Capitalized software costs, net
|
5,995
|
5,156
|
|||||
Goodwill
|
7,101
|
5,765
|
|||||
Deferred costs, net of current portion
|
4,018
|
5,080
|
|||||
Unbilled revenue, net of current portion
|
677
|
617
|
|||||
Accounts receivable, long-term
|
1,040
|
773
|
|||||
Note receivable, net of current portion
|
424
|
465
|
|||||
Investment in non-consolidated entity, net
|
2,152
|
1,490
|
|||||
Total assets
|
$
|
300,044
|
$
|
290,137
|
September 30, 2012
|
March 31, 2012
|
|||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
(Unaudited)
|
|||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
39,150
|
$
|
20,854
|
||||
Current portion of notes payable, non-recourse
|
33,152
|
35,644
|
||||||
Current portion of capital leases
|
219
|
186
|
||||||
Current portion of deferred revenue
|
3,989
|
3,677
|
||||||
Current portion of contingent consideration for business combination
|
750
|
—
|
||||||
Liabilities as part of assets held for sale
|
—
|
75
|
||||||
Total current liabilities
|
77,260
|
60,436
|
||||||
Notes payable, non-recourse, net of current portion
|
114,207
|
135,345
|
||||||
Notes payable
|
92,161
|
87,354
|
||||||
Capital leases, net of current portion
|
5,128
|
5,244
|
||||||
Interest rate swaps
|
1,105
|
1,771
|
||||||
Deferred revenue, net of current portion
|
11,493
|
11,451
|
||||||
Contingent consideration, net of current portion
|
3,094
|
—
|
||||||
Customer security deposits, net of current portion
|
—
|
9
|
||||||
Total liabilities
|
304,448
|
301,610
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ Deficit
|
||||||||
Preferred stock, 15,000,000 shares authorized;
Series A 10% - $0.001 par value per share; 20 shares authorized; 7 shares issued and outstanding at September 30, 2012 and March 31, 2012, respectively. Liquidation preference of $3,589
|
3,412
|
3,357
|
||||||
Class A common stock, $0.001 par value per share; 118,759,000 and 75,000,000 shares authorized; 48,448,137 and 37,722,927 shares issued and 48,396,786 and 37,671,487 shares outstanding at September 30, 2012 and March 31, 2012, respectively
|
48
|
38
|
||||||
Class B common stock, $0.001 par value per share; 1,241,000 and 15,000,000 shares authorized; 1,241,000 and 25,000 shares issued and 0 and 25,000 shares outstanding, at September 30, 2012 and March 31, 2012, respectively
|
—
|
—
|
||||||
Additional paid-in capital
|
221,293
|
206,348
|
||||||
Treasury stock, at cost; 51,440 Class A shares
|
(172
|
)
|
(172
|
)
|
||||
Accumulated deficit
|
(228,985
|
)
|
(221,044
|
)
|
||||
Total stockholders’ deficit
|
(4,404
|
)
|
(11,473
|
)
|
||||
Total liabilities and stockholders’ deficit
|
$
|
300,044
|
$
|
290,137
|
For the Three Months Ended September 30,
|
For the Six Months Ended September 30,
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||
Revenues
|
$
|
22,609
|
$
|
21,028
|
$
|
43,513
|
$
|
39,069
|
|||||||
Costs and expenses:
|
|||||||||||||||
Direct operating (exclusive of depreciation and amortization shown below)
|
2,928
|
1,697
|
5,363
|
3,290
|
|||||||||||
Selling, general and administrative
|
6,306
|
4,071
|
12,199
|
7,481
|
|||||||||||
Provision for doubtful accounts
|
78
|
—
|
154
|
—
|
|||||||||||
Research and development
|
36
|
35
|
74
|
90
|
|||||||||||
Merger and acquisition expenses
|
—
|
—
|
1,267
|
—
|
|||||||||||
Restructuring expenses
|
340
|
—
|
340
|
—
|
|||||||||||
Depreciation and amortization of property and equipment
|
9,120
|
8,869
|
18,217
|
17,723
|
|||||||||||
Amortization of intangible assets
|
223
|
77
|
381
|
169
|
|||||||||||
Total operating expenses
|
19,031
|
14,749
|
37,995
|
28,753
|
|||||||||||
Income from operations
|
3,578
|
6,279
|
5,518
|
10,316
|
|||||||||||
Interest income
|
3
|
24
|
22
|
75
|
|||||||||||
Interest expense
|
(7,281
|
)
|
(7,569
|
)
|
(14,758
|
)
|
(14,940
|
)
|
|||||||
Income on investment in non-consolidated entity
|
631
|
—
|
662
|
—
|
|||||||||||
Other income, net
|
193
|
385
|
391
|
431
|
|||||||||||
Change in fair value of interest rate swap
|
255
|
219
|
676
|
(568
|
)
|
||||||||||
Net loss from continuing operations
|
(2,621
|
)
|
(662
|
)
|
(7,489
|
)
|
(4,686
|
)
|
|||||||
Income (loss) from discontinued operations
|
10
|
432
|
(274
|
)
|
(1,937
|
)
|
|||||||||
Net loss
|
(2,611
|
)
|
(230
|
)
|
(7,763
|
)
|
(6,623
|
)
|
|||||||
Preferred stock dividends
|
(89
|
)
|
(89
|
)
|
(178
|
)
|
(178
|
)
|
|||||||
Net loss attributable to common stockholders
|
$
|
(2,700
|
)
|
$
|
(319
|
)
|
$
|
(7,941
|
)
|
$
|
(6,801
|
)
|
|||
Net loss per Class A and Class B common share - basic and diluted:
|
|||||||||||||||
Loss from continuing operations
|
$
|
(0.06
|
)
|
$
|
(0.02
|
)
|
$
|
(0.16
|
)
|
$
|
(0.14
|
)
|
|||
Income (loss) from discontinued operations
|
$
|
—
|
$
|
0.01
|
$
|
(0.01
|
)
|
$
|
(0.07
|
)
|
|||||
$
|
(0.06
|
)
|
$
|
(0.01
|
)
|
$
|
(0.17
|
)
|
$
|
(0.21
|
)
|
||||
Weighted average number of Class A and Class B common shares outstanding: Basic and diluted
|
48,299,715
|
37,115,346
|
46,718,464
|
34,886,202
|
For the Three Months Ended September 30,
|
||||||||
($ in thousands)
|
2012
|
2011
|
||||||
Net loss from continuing operations
|
$
|
(2,621
|
)
|
$
|
(662
|
)
|
||
Add Back:
|
||||||||
Amortization of capitalized software costs
|
277
|
152
|
||||||
Depreciation and amortization of property and equipment
|
9,120
|
8,869
|
||||||
Amortization of intangible assets
|
223
|
77
|
||||||
Interest income
|
(3
|
)
|
(24
|
)
|
||||
Interest expense
|
7,281
|
7,569
|
||||||
Other income, net
|
(193
|
)
|
(385
|
)
|
||||
Income on investment in non-consolidated entity
|
(631
|
)
|
—
|
|||||
Change in fair value of interest rate swap
|
(255
|
)
|
(219
|
)
|
||||
Stock-based expenses
|
(5
|
)
|
562
|
|||||
Stock-based compensation
|
528
|
464
|
||||||
Restructuring expenses
|
340
|
—
|
||||||
Allocated costs attributable to discontinued operations
|
—
|
504
|
||||||
Adjusted EBITDA
|
$
|
14,061
|
$
|
16,907
|
||||
Adjustments related to the Phase I and Phase II Deployments:
|
||||||||
Depreciation and amortization of property and equipment
|
$
|
(8,965
|
)
|
$
|
(8,738
|
)
|
||
Amortization of intangible assets
|
(13
|
)
|
(15
|
)
|
||||
Income from operations
|
(4,760
|
)
|
(6,611
|
)
|
||||
Intersegment services fees earned (1)
|
898
|
1,702
|
||||||
Adjusted EBITDA from non-deployment businesses
|
$
|
1,221
|
$
|
3,245
|
For the Six Months Ended September 30,
|
||||||||
($ in thousands)
|
2012
|
2011
|
||||||
Net loss from continuing operations
|
$
|
(7,489
|
)
|
$
|
(4,686
|
)
|
||
Add Back:
|
||||||||
Amortization of capitalized software costs
|
527
|
364
|
||||||
Depreciation and amortization of property and equipment
|
18,217
|
17,723
|
||||||
Amortization of intangible assets
|
381
|
169
|
||||||
Interest income
|
(22
|
)
|
(75
|
)
|
||||
Interest expense
|
14,758
|
14,940
|
||||||
Other income, net
|
(391
|
)
|
(431
|
)
|
||||
Income on investment in non-consolidated entity
|
(662
|
)
|
—
|
|||||
Change in fair value of interest rate swap
|
(676
|
)
|
568
|
|||||
Stock-based expenses
|
300
|
562
|
||||||
Stock-based compensation
|
1,014
|
918
|
||||||
Merger and acquisition expenses
|
1,267
|
—
|
||||||
Restructuring expenses
|
340
|
—
|
||||||
Allocated costs attributable to discontinued operations
|
—
|
504
|
||||||
Adjusted EBITDA
|
$
|
27,564
|
$
|
30,556
|
||||
Adjustments related to the Phase I and Phase II Deployments:
|
||||||||
Depreciation and amortization of property and equipment
|
$
|
(17,904
|
)
|
$
|
(17,510
|
)
|
||
Amortization of intangible assets
|
(26
|
)
|
(27
|
)
|
||||
Income from operations
|
(9,404
|
)
|
(12,037
|
)
|
||||
Intersegment services fees earned (1)
|
1,816
|
3,078
|
||||||
Adjusted EBITDA from non-deployment businesses
|
$
|
2,046
|
$
|
4,060
|