UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (date of earliest event reported): October 29, 2012
RealD Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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001-34818 |
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77-0620426 |
(State or other |
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(Commission File Number) |
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(IRS Employer |
100 N. Crescent Drive, Suite 200 |
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90210 |
(Address of principal executive offices) |
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(Zip Code) |
(310) 385-4000
(Registrants telephone number, including area code)
NA
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o 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.
On October 29, 2012, RealD Inc. (or the Company) issued a press release reporting its financial results for the three and six months ended September 21, 2012. The press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
The information contained in this report and the attached press release is furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
On October 29, 2012, the Company will conduct a properly noticed conference call to discuss its results of operations for the second quarter of fiscal 2013 and to answer any questions raised by the calls audience.
Item 8.01 Other Events.
On October 29, 2012, the Company announced that it intends in future periods to convert from a 4-4-5 week quarterly accounting period to a calendar month end and calendar quarter end accounting period. Commencing in the current third quarter of fiscal 2013, the Companys quarter would end on December 31, with subsequent quarters ending on March 31, June 30 and September 30. The Companys fiscal year will continue to end in March.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is attached to this Current Report on Form 8-K:
Exhibit No. |
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Description |
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99.1 |
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Press release, dated October 29, 2012, entitled RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2013. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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RealD Inc. | |
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By: |
/s/ Craig Gatarz |
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Craig Gatarz |
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Executive Vice President, General Counsel and Secretary |
Date: October 29, 2012
Exhibit 99.1
RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2013
LOS ANGELES (October 29, 2012) - RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies, today announced financial results for its second quarter of fiscal 2013 ended September 21, 2012.
We continued to advance our key growth initiatives during the quarter, although we had a very challenging comparison versus last years second quarter that included exceptional contributions from Harry Potter and Transformers, said Michael V. Lewis, Chairman and Chief Executive Officer of RealD. We demonstrated our confidence in RealDs future by repurchasing approximately 2.4 million common shares during the quarter, funded by cash flows from operations.
Second Quarter Fiscal 2013 Financial Highlights
· Total revenue was $55.0 million, comprised of license revenue of $35.0 million and product and other revenue of $20.0 million. For the second quarter of fiscal 2012, total revenue was $88.0 million, comprised of license revenue of $52.0 million and product and other revenue of $36.0 million.
· GAAP net loss attributable to common stockholders was $4.2 million, or $0.08 per share, compared to GAAP net income attributable to common stockholders of $18.9 million, or $0.33 per diluted share, for the second quarter of fiscal 2012.
· Cost of license revenue for the second fiscal quarter of 2013 included an impairment charge of $3.5 million (equivalent to approximately $0.06 per share) related to a non-cancelable purchase commitment for a specific configuration of 3D cinema systems.
· Adjusted EBITDA was $13.8 million, compared to $44.4 million in the second quarter of fiscal 2012.
· 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).
Six-Month Fiscal 2013 Financial Highlights
· Total revenue was $123.2 million, comprised of license revenue of $76.2 million and product and other revenue of $47.0 million. For the six months ended September 23, 2011, total revenue was $147.6 million, comprised of license revenue of $87.7 million and product and other revenue of $59.9 million.
· GAAP net loss attributable to common stockholders was $1.2 million, or $0.02 per share, compared to GAAP net income of $28.5 million, or $0.50 per diluted share, for the six months ended September 23, 2011.
· Adjusted EBITDA was $36.9 million, compared to $70.4 million for the six months ended September 23, 2011.
Cash Flows, Stock Repurchases and Balance Sheet Highlights
· For the six months ended September 21, 2012, cash flows from operating activities were $50.6 million and total capital expenditures were $12.9 million, resulting in free cash flow of $37.7 million. The Company expects that its future cash flows will vary considerably from quarter to quarter, due to box office seasonality, among other factors.
· Free cash flow 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 cash provided by operating activities.
· During the quarter, the Company repurchased approximately 2,426,000 common shares for $24.6 million, representing an average cost of $10.16 per share.
· To-date, the company has repurchased approximately 2,560,000 common shares under its $50 million stock repurchase program. As of September 21, 2012, $23.8 million remained available under the repurchase authorization.
· Cash and cash equivalents as of September 21, 2012 were $25.2 million. The decrease of $20.3 million from June 22, 2012 primarily reflects the Companys stock repurchases and debt repayment.
· Total debt as of September 21, 2012 was $12.5 million, a decrease of $12.5 million from June 22, 2012.
Key Metrics
· International markets generated 61% of license revenue, compared to 56% of license revenue in the second quarter of fiscal 2012.
· International markets generated 44% of product and other revenue, compared to 41% of product and other revenue in the second quarter of fiscal 2012.
· As of September 21, 2012, the Company had deployed approximately 21,500 RealD-enabled screens, an increase of 15% from approximately 18,700 screens as of September 23, 2011, and an increase of 800 screens, or 4%, from approximately 20,700 screens as of June 22, 2012.
· As of September 21, 2012, the Company had approximately 12,300 domestic screens at approximately 2,700 domestic theater locations and approximately 9,200 international screens at approximately 2,600 international theater locations.
Updated Guidance for Fiscal Year 2013 Operating Expenses
· The Company has updated its outlook for fiscal 2013 operating expenses. The Company currently expects total fiscal 2013 operating expenses to be in the range of $95 million to $100 million, a decrease from its prior expectation of $105 million to $110 million disclosed on RealDs first quarter of fiscal 2013 results investor conference call held on July 30, 2012.
· The Companys moderated expectations for growth in fiscal 2013 operating expenses primarily reflect slower than-anticipated growth in headcount, a shift in the timing for certain initiatives, and operating efficiencies that contributed to lower-than-expected growth in operating expenses during the second quarter and six months ended September 21, 2012.
Proposed New Quarter End Dates for RealD
· Historically, RealDs fiscal year has included four 13-week periods for a total of 52 weeks. As a result, the timing of the end of RealDs quarterly periods has often differed significantly compared to other publicly-traded companies.
· In the future, RealD intends to slightly adjust its quarterly periods to coincide with traditional calendar quarterly reporting periods. For example, the Companys third quarter of fiscal 2013 would end on December 31, 2012, and its fourth quarter of fiscal 2013 would end on March 31, 2013. In Fiscal 2014, RealDs quarters would end on June 30, 2013; September 30, 2013; December 31, 2013; and March 31, 2014.
3D Theatrical Release Schedule for Fiscal 2013
(As of October 29, 2012 Domestic)
Fiscal Q1 2013 |
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Film |
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Domestic Release Date |
(ended 6/22/12) |
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Wrath of the Titans |
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3/30/2012 |
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Titanic (re-release) |
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4/4/2012 |
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The Pirates! Band of Misfits |
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4/27/2012 |
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The Avengers |
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5/4/2012 |
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Men in Black III |
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5/25/2012 |
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Piranha 3DD |
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6/1/2012 |
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Madagascar 3: Europes Most Wanted |
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6/8/2012 |
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Prometheus |
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6/8/2012 |
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Brave |
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6/22/2012 |
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Abraham Lincoln: Vampire Hunter |
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6/22/2012 |
Fiscal Q2 2013 |
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Film |
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Domestic Release Date |
(ended 9/21/12) |
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Amazing Spiderman |
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7/3/2012 |
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Katy Perry: Part of Me 3D |
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7/5/2012 |
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Ice Age: Continental Drift |
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7/13/2012 |
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Step Up Revolution |
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7/27/2012 |
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Nitro Circus: The Movie |
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8/8/2012 |
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ParaNorman |
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8/17/2012 |
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Resident Evil: Retribution |
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9/14/2012 |
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Finding Nemo (re-release) |
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9/14/2012 |
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Dredd |
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9/21/2012 |
Fiscal Q3 2013 |
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Film |
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Domestic Release Date |
(ending 12/31/12) |
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Hotel Transylvania |
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9/28/2012 |
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Frankenweenie |
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10/5/2012 |
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Silent Hill: Revelation 3D |
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10/26/2012 |
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Wreck-It Ralph |
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11/2/2012 |
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Rise of the Guardians |
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11/21/2012 |
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Life of Pi |
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11/21/2012 |
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The Hobbit: An Unexpected Journey |
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12/14/2012 |
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Monsters, Inc. (re-release) |
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12/19/2012 |
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Cirque du Soleil: Worlds Away |
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12/21/2012 |
Fiscal Q4 2013 |
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Film |
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Domestic Release Date |
(ending 3/31/13) |
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The Texas Chainsaw Massacre 3D |
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1/4/2013 |
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Hansel and Gretel: Witch Hunters |
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1/25/2013 |
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Escape from Planet Earth |
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2/14/2013 |
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Jack the Giant Slayer |
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3/1/2013 |
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Oz: The Great and Powerful |
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3/8/2013 |
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The Croods |
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3/22/2013 |
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G.I. Joe: Retaliation |
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3/29/2013 |
Sources: Rentrak and imdb.com.
Conference Call Information
Members of RealD management will host a conference call to discuss the Companys financial results for the second quarter of fiscal 2013, beginning at 4:30 pm ET (1:30 pm PT), today, October 29, 2012. To access the call via telephone, interested parties should dial (877) 407-0789 (U.S.) or (201) 689-8562. (International) ten minutes prior to the start time and use conference ID 401081.
The conference call will also be broadcast live over the Internet, hosted at the Investor Relations section of the Companys website at www.reald.com. An archived replay of the call will be available via webcast at www.reald.com or by dialing (877) 870-5176, or (858) 384-5517 for international callers. The conference ID for the telephone replay is 401081.
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and statements, including but not limited to: statements concerning anticipated future financial and operating performance; RealDs ability to continue to derive substantial revenue from the licensing of RealDs 3D technologies for use in the motion picture industry, as well as RealDs relationships with consumer electronics manufacturers and its ability to generate substantial revenue from the licensing of RealDs 3D technologies for use in the 3D consumer electronics market; 3D motion picture releases and conversions scheduled for fiscal 2013 ending March 31, 2013, their commercial success and consumer preferences; our ability to increase the number of RealD-enabled screens in domestic and international markets and market share; our ability to supply our solutions to our customers on a timely basis; RealDs relationships with its exhibitor and studio partners and the business model for 3D eyewear in North America; the progress, timing and amount of expenses associated with RealDs research and development activities; market and industry trends, including growth in 3D content; RealDs projected operating results; and competitive pressures in domestic and international markets. These statements are based on our managements current expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside managements control that could cause actual results to differ materially from the results discussed in the forward-looking statements. The Companys Annual Report on Form 10-K for the twelve months ended March 23, 2012, the Companys Quarterly Report on Form 10-Q for the first fiscal quarter ended June 22, 2012 and other documents filed with the SEC include a more detailed discussion of the risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements.
RealD undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
To supplement RealDs financial statements presented on a GAAP basis, RealD provides Adjusted EBITDA and free cash flow as supplemental measures of its performance. The Company defines Adjusted EBITDA as net income (loss), plus net interest expense, income and other taxes, and depreciation and amortization, as further adjusted to eliminate the impact of share based compensation expense, exhibitor option expense and certain other items not considered by RealD management to be indicative of the companys core operating performance. The Company defines free cash flow as net cash provided by operating activities less total capital expenditures in a given period (e.g. purchases of cinema systems and property and equipment on a combined basis).
RealD presents Adjusted EBITDA in reporting its financial results to provide investors with additional tools to evaluate RealDs operating results in a manner that focuses on what RealDs management believes to be its ongoing business operations. RealD presents free cash flow to provide investors a metric for our capacity to generate cash from our operating and investing activities to sustain our operating activities. RealDs management does not itself, nor does it suggest that investors should, consider any such Non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adjusted EBITDA and free cash flow are used by management for planning purposes, including: the preparation of internal budgets, forecasts and strategic plans; in analyzing the effectiveness of business strategies; to evaluate potential acquisitions; in making compensation decisions; and in communications with its Board of Directors concerning financial performance. Because not all companies use identical calculations, the Companys presentation of Adjusted EBITDA and free cash flow may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not intended to be a measure of free cash flow for managements discretionary use, as it does not consider certain cash requirements such as tax and debt service payments. Adjusted EBITDA also differs from the amounts calculated under the similarly titled definition in our credit agreement, which is further adjusted to reflect certain other cash and non-cash charges and is used to determine compliance with financial covenants and the Companys ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.
About RealD Inc.
RealD is a leading global licensor of 3D technologies. RealDs extensive intellectual property portfolio is used in applications that enable a premium 3D viewing experience in the theater, the home and elsewhere. RealD licenses its RealD Cinema Systems to motion picture exhibitors that show 3D motion pictures and alternative 3D content. RealD also provides its RealD Display, active and passive eyewear, and RealD Format technologies to consumer electronics manufacturers and content producers and distributors to enable the delivery and viewing of 3D content. RealDs cutting-edge technologies have been used for applications such as piloting the Mars Rover.
RealD was founded in 2003 and has offices in Beverly Hills, California; Boulder, Colorado; London, United Kingdom; Shanghai, China; Hong Kong; Tokyo, Japan; and Moscow, Russia. For more information, please visit our website at www.reald.com.
© 2012 RealD Inc. All Rights Reserved.
Investor Contact:
Erik Randerson, CFA
424-702-4317
eranderson@reald.com
Media Contact:
Rick Heineman
310-339-9347
rheineman@reald.com
RealD Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
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Three months ended |
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Six months ended |
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September 21, |
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September 23, |
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September 21, |
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September 23, |
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2012 |
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2011 |
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2012 |
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2011 |
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Revenue: |
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License |
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$ |
34,976 |
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$ |
51,981 |
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$ |
76,165 |
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$ |
87,692 |
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Product and other |
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20,010 |
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36,014 |
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46,999 |
|
59,863 |
| ||||
Total revenue |
|
54,986 |
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87,995 |
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123,164 |
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147,555 |
| ||||
Cost of revenue: |
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|
|
|
|
|
|
|
| ||||
License |
|
14,283 |
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14,703 |
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24,296 |
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21,119 |
| ||||
Product and other |
|
23,049 |
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30,770 |
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49,869 |
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48,595 |
| ||||
Total cost of revenue |
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37,332 |
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45,473 |
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74,165 |
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69,714 |
| ||||
Gross profit |
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17,654 |
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42,522 |
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48,999 |
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77,841 |
| ||||
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
Research and development |
|
4,592 |
|
3,755 |
|
9,490 |
|
8,400 |
| ||||
Selling and marketing |
|
5,924 |
|
6,466 |
|
12,819 |
|
13,695 |
| ||||
General and administrative |
|
12,189 |
|
9,792 |
|
23,451 |
|
18,222 |
| ||||
Total operating expenses |
|
22,705 |
|
20,013 |
|
45,760 |
|
40,317 |
| ||||
Operating income (loss) |
|
(5,051 |
) |
22,509 |
|
3,239 |
|
37,524 |
| ||||
Interest expense, net |
|
(288 |
) |
(272 |
) |
(601 |
) |
(483 |
) | ||||
Other income (loss) |
|
(21 |
) |
1,099 |
|
(374 |
) |
949 |
| ||||
Income (loss) before income taxes |
|
(5,360 |
) |
23,336 |
|
2,264 |
|
37,990 |
| ||||
Income tax expense (benefit) |
|
(1,129 |
) |
4,159 |
|
3,548 |
|
9,411 |
| ||||
Net income (loss) |
|
(4,231 |
) |
19,177 |
|
(1,284 |
) |
28,579 |
| ||||
Net (income) loss attributable to noncontrolling interest |
|
58 |
|
(272 |
) |
90 |
|
(79 |
) | ||||
Net income (loss) attributable to RealD Inc. common stockholders |
|
$ |
(4,173 |
) |
$ |
18,905 |
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$ |
(1,194 |
) |
$ |
28,500 |
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Earnings (loss) per common share: |
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Basic |
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$ |
(0.08 |
) |
$ |
0.35 |
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$ |
(0.02 |
) |
$ |
0.53 |
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Diluted |
|
$ |
(0.08 |
) |
$ |
0.33 |
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$ |
(0.02 |
) |
$ |
0.50 |
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|
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Shares used in computing earnings (loss) per common share: |
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Basic |
|
53,915 |
|
54,343 |
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54,314 |
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54,151 |
| ||||
Diluted |
|
53,915 |
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56,788 |
|
54,314 |
|
57,287 |
|
RealD Inc.
Consolidated Balance Sheets
(In thousands)
|
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September 21, |
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March 23, |
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2012 |
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2012 |
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(unaudited) |
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Assets |
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Current assets: |
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|
|
|
| ||
Cash and cash equivalents |
|
$ |
25,238 |
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$ |
24,894 |
|
Accounts receivable, net |
|
50,195 |
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59,212 |
| ||
Inventories |
|
14,850 |
|
40,577 |
| ||
Deferred costs eyewear |
|
558 |
|
932 |
| ||
Prepaid expenses and other current assets |
|
3,696 |
|
2,630 |
| ||
Total current assets |
|
94,537 |
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128,245 |
| ||
Property and equipment, net |
|
16,696 |
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12,713 |
| ||
Cinema systems, net |
|
131,691 |
|
141,024 |
| ||
Digital projectors, net-held for sale |
|
1,002 |
|
1,078 |
| ||
Goodwill |
|
10,657 |
|
10,657 |
| ||
Other intangibles, net |
|
1,662 |
|
1,746 |
| ||
Deferred income taxes |
|
3,049 |
|
3,049 |
| ||
Other assets |
|
6,038 |
|
3,663 |
| ||
Total assets |
|
$ |
265,332 |
|
$ |
302,175 |
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|
|
|
|
|
| ||
Liabilities and equity |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
|
$ |
15,343 |
|
$ |
22,617 |
|
Accrued expenses and other liabilities |
|
29,154 |
|
28,870 |
| ||
Deferred revenue |
|
8,924 |
|
7,201 |
| ||
Income taxes payable |
|
1,570 |
|
1,121 |
| ||
Deferred income taxes |
|
3,093 |
|
3,149 |
| ||
Total current liabilities |
|
58,084 |
|
62,958 |
| ||
Credit facility agreement |
|
12,500 |
|
25,000 |
| ||
Deferred revenue, net of current portion |
|
12,485 |
|
13,920 |
| ||
Other long-term liabilities, customer deposits and virtual print fee liability |
|
2,999 |
|
2,691 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Equity (deficit) |
|
|
|
|
| ||
Common stock |
|
320,071 |
|
309,894 |
| ||
Accumulated deficit |
|
(140,140 |
) |
(112,711 |
) | ||
Total RealD Inc. stockholders equity |
|
179,931 |
|
197,183 |
| ||
Noncontrolling interest |
|
(667 |
) |
423 |
| ||
Total equity |
|
179,264 |
|
197,606 |
| ||
|
|
|
|
|
| ||
Total liabilities and equity |
|
$ |
265,332 |
|
$ |
302,175 |
|
RealD Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
Six months ended |
| ||||
|
|
September 21, |
|
September 23, |
| ||
|
|
2012 |
|
2011 |
| ||
Cash flows from operating activities |
|
|
|
|
| ||
Net income (loss) |
|
$ |
(1,284 |
) |
$ |
28,579 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
|
15,936 |
|
13,152 |
| ||
Deferred income tax |
|
(56 |
) |
(180 |
) | ||
Non-cash interest expense |
|
157 |
|
133 |
| ||
Non-cash stock compensation |
|
9,094 |
|
7,632 |
| ||
Gain on sale of digital projectors |
|
|
|
(1,156 |
) | ||
Loss on disposal of property and equipment |
|
44 |
|
|
| ||
Impairment of long-lived assets and related purchase commitments |
|
5,901 |
|
7,828 |
| ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Accounts receivable |
|
6,541 |
|
(3,086 |
) | ||
Inventories |
|
25,720 |
|
(725 |
) | ||
Prepaid expenses and other current assets |
|
(676 |
) |
150 |
| ||
Deferred costs - eyewear |
|
374 |
|
(162 |
) | ||
Other assets |
|
(1,598 |
) |
(1,822 |
) | ||
Accounts payable |
|
(7,256 |
) |
(17,818 |
) | ||
Accrued expenses and other liabilities |
|
(3,323 |
) |
(12,772 |
) | ||
Other long-term liabilities, customer deposits and virtual print fee liability |
|
308 |
|
1,223 |
| ||
Income taxes receivable/payable |
|
449 |
|
7,030 |
| ||
Deferred revenue |
|
288 |
|
136 |
| ||
Net cash provided by operating activities |
|
50,619 |
|
28,142 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities |
|
|
|
|
| ||
Purchases of property and equipment |
|
(6,266 |
) |
(1,993 |
) | ||
Purchases of cinema systems and related components |
|
(6,664 |
) |
(38,011 |
) | ||
Proceeds from sale of digital projectors |
|
2,474 |
|
3,999 |
| ||
Net cash used in investing activities |
|
(10,456 |
) |
(36,005 |
) | ||
|
|
|
|
|
| ||
Cash flows from financing activities |
|
|
|
|
| ||
Repayments of long-term debt |
|
|
|
(2,311 |
) | ||
Proceeds from credit facility |
|
25,000 |
|
30,000 |
| ||
Repayments on credit facility |
|
(37,500 |
) |
(5,000 |
) | ||
Payments of debt issuance costs |
|
(1,167 |
) |
|
| ||
Proceeds from exercise of stock options |
|
782 |
|
479 |
| ||
Proceeds from employee stock purchase plan |
|
301 |
|
|
| ||
Proceeds from exercise of warrants |
|
|
|
271 |
| ||
Proceeds from exercise of motion picture exhibitor options |
|
|
|
3 |
| ||
Purchases of treasury stock |
|
(26,235 |
) |
|
| ||
Distributions to noncontrolling interests |
|
(1,000 |
) |
|
| ||
Net cash (used) provided by financing activities |
|
(39,819 |
) |
23,442 |
| ||
Net increase in cash and cash equivalents |
|
344 |
|
15,579 |
| ||
Cash and cash equivalents, beginning of period |
|
24,894 |
|
16,936 |
| ||
Cash and cash equivalents, end of period |
|
$ |
25,238 |
|
$ |
32,515 |
|
RealD Inc.
Schedule of Non-GAAP Reconciliations
(In thousands)
(Unaudited)
Reconciliation of Net Income (Loss) to Adjusted EBITDA
|
|
Three months ended |
|
Six months ended |
| ||||||||
|
|
September 21, |
|
September 23, |
|
September 21, |
|
September 23, |
| ||||
(in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income (loss) |
|
$ |
(4,231 |
) |
$ |
19,177 |
|
$ |
(1,284 |
) |
$ |
28,579 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
| ||||
Interest expense, net |
|
288 |
|
272 |
|
601 |
|
483 |
| ||||
Income tax expense (benefit) |
|
(1,129 |
) |
4,159 |
|
3,548 |
|
9,411 |
| ||||
Depreciation and amortization |
|
8,086 |
|
7,054 |
|
15,936 |
|
13,152 |
| ||||
Other (income) loss (1) |
|
21 |
|
(1,099 |
) |
374 |
|
(949 |
) | ||||
Share-based compensation expense (2) |
|
4,812 |
|
4,733 |
|
9,094 |
|
7,632 |
| ||||
Impairment of assets and intangibles (3) |
|
4,327 |
|
7,710 |
|
5,901 |
|
7,828 |
| ||||
Sales and use tax (4) |
|
1,309 |
|
2,017 |
|
2,162 |
|
3,507 |
| ||||
Property tax (5) |
|
291 |
|
330 |
|
611 |
|
766 |
| ||||
Adjusted EBITDA |
|
$ |
13,774 |
|
$ |
44,353 |
|
$ |
36,943 |
|
$ |
70,409 |
|
(1) |
Includes gains and losses from foreign currency exchange and foreign currency forward contracts. |
(2) |
Represents share-based compensation expense of nonstatutory and incentive stock options and restricted stock units to employees, officers and directors. |
(3) |
Represents impairment of long-lived assets, such as fixed assets, theatrical equipment and identifiable intangibles. |
(4) |
Represents taxes incurred by us for cinema license and product revenue. |
(5) |
Represents property taxes on RealD Cinema Systems and digital projectors. |
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
|
|
Six months ended |
| ||||
|
|
September 21, |
|
September 23, |
| ||
(in thousands) |
|
2012 |
|
2011 |
| ||
Net cash provided by operating activities |
|
$ |
50,619 |
|
$ |
28,142 |
|
Purchases of property and equipment |
|
(6,266 |
) |
(1,993 |
) | ||
Purchases of cinema systems and related components |
|
(6,664 |
) |
(38,011 |
) | ||
Free cash flow |
|
$ |
37,689 |
|
$ |
(11,862 |
) |
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