EX-99.1 2 a13-14495_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

RealD Inc. Reports Fourth Quarter and Fiscal Year 2013 Financial Results

 

LOS ANGELES (June 6, 2013) - RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies, today announced financial results for its fourth quarter and fiscal year ended March 31, 2013.

 

“RealD delivered strong free cash flow for our fourth quarter and fiscal year ended March 31, 2013, despite the slight year-over-year decline in license revenue,” said Michael V. Lewis, Chairman and Chief Executive Officer of RealD.  “We also continue to advance our international expansion initiatives, highlighted by the recent opening of our first office in Latin America.  Additionally, RealD’s largest exhibitor customer in Latin America, Cinepolis, entered into an expanded agreement to equip at least 400 additional auditoriums with RealD 3D technology across the Cinepolis circuit in Latin America, the United States and India within the next 12 months.”

 

Fourth Quarter Fiscal 2013 Financial Highlights

 

·                 Total revenue was $45.4 million, comprised of license revenue of $31.3 million and product and other revenue of $14.2 million, for the fourth quarter of fiscal 2013.   For the fourth quarter of fiscal 2012, total revenue was $50.0 million, comprised of license revenue of $31.7 million and product and other revenue of $18.4 million.

·                 GAAP net loss attributable to common stockholders was $4.3 million, or $0.09 per share, compared to GAAP net income attributable to common stockholders of $5.5 million, or $0.10 per diluted share, for the fourth quarter of fiscal 2012.  The fourth quarter of fiscal 2012 included a tax benefit of $2.1 million.

·                 Adjusted EBITDA was $13.9 million, compared to $17.8 million in the fourth 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).

 

Full Year Fiscal 2013 Financial Highlights

 

·                 Total revenue was $215.6 million, comprised of license revenue of $137.8 million and product and other revenue of $77.8 million, for the year ended March 31, 2013.  For the year ended March 23, 2012, total revenue was $246.6 million, comprised of license revenue of $147.8 million and product and other revenue of $98.8 million.

·                 GAAP net loss attributable to common stockholders was $9.7 million, or $0.20 per share, compared to GAAP net income of $36.9 million, or $0.65 per diluted share, for the year ended March 23, 2012.

·                 Adjusted EBITDA was $63.3 million, compared to $104.4 million for the year ended March 23, 2012.

 



 

Cash Flows, Stock Repurchases and Balance Sheet Highlights

 

·                 For the year ended March 31, 2013, cash flows from operating activities were $79.7 million and total capital expenditures were $34.3 million, resulting in free cash flow of $45.4 million.

·                 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 fourth quarter of fiscal 2013, RealD repurchased approximately 1,106,000 shares of common stock for $12.7 million, representing an average cost of $11.47 per share.

·                 Since the inception of the stock repurchase program in April 2012 through March 31, 2013, RealD has repurchased approximately 5,928,000 shares of common stock at an average cost of $10.20 per share.  As of March 31, 2013, $14.6 million remained available under the $75 million stock repurchase authorization.

·                 As of March 31, 2013, cash and cash equivalents were $31.0 million and total debt was $47.5 million.  The increase of $12.5 million in total debt from December 31, 2012 primarily funded stock repurchases during the quarter.

 

Key Metrics

 

·                 Estimated box office generated on RealD-enabled screens(1) for the fourth quarter of fiscal 2013 was $614 million ($268 million domestic, $346 million international).   In the fourth quarter of fiscal 2012, estimated box office generated on RealD-enabled screens was $589 million ($337 million domestic, $252 million international).

·                 The percentage of RealD box office generated from animation and family genre films (which have lower average ticket prices) decreased compared to the fourth quarter of fiscal 2012.

·                 Seven 3D films were released in the fourth quarter of fiscal 2013, compared to eight 3D films in the fourth quarter of fiscal 2012.  These figures reflect the number of 3D films released domestically during the periods.

·                 International markets generated 61% of license revenue and 29% of product and other revenue in the fourth quarter of fiscal 2013.

·                 As of March 31, 2013, RealD had deployed approximately 22,700 RealD-enabled screens, an increase of 12% from approximately 20,200 screens as of March 23, 2012, and an increase of 500 screens (200 domestic, 300 international), or 2%, from approximately 22,200 screens as of December 31, 2012.

·                 As of March 31, 2013, RealD had approximately 12,800 domestic screens at approximately 2,800 domestic theater locations and approximately 9,900 international screens at approximately 2,700 international theater locations.

 

 

(1)         Estimated domestic box office on RealD-enabled screens represents the estimated 3D box office generated on RealD-enabled domestic screens. Estimated international box office on RealD-enabled international screens is the estimated 3D box office generated on RealD-enabled international screens.  RealD’s estimates of box office on RealD-enabled screens rely on box office tracking data.  International box office reflects RealD’s estimates of international box office generated on RealD-enabled screens in 20 foreign countries where box office tracking is available.  RealD estimates these countries represent approximately 85% of RealD’s international license revenues.

 

Previously Announced Plan to Change Definition of Adjusted EBITDA, a Non-GAAP Measure, Beginning in FY 2014

 

As previously announced, beginning in the first quarter of fiscal 2014 that ends on June 30, 2013, RealD intends to modify its definition of Adjusted EBITDA for financial reporting purposes to align with the Adjusted EBITDA definition under RealD’s expanded credit facility.  As a result, for future reporting periods, RealD no longer intends to add back sales and use tax and property tax to calculate Adjusted EBITDA for financial reporting purposes.

 



 

3D Theatrical Release Schedule for Fiscal 2014

(As of June 6, 2013 – Domestic)

 

 

 

 

 

 

 

 

 

 

 

Fiscal Q1 2014

 

Film

 

Domestic Release Date

(ending 6/30/13)

 

Jurassic Park (re-release)

 

4/5/2013

 

 

Iron Man 3

 

5/3/2013

 

 

The Great Gatsby

 

5/10/2013

 

 

Star Trek Into Darkness

 

5/16/2013

 

 

Epic

 

5/24/2013

 

 

Man of Steel

 

6/14/2013

 

 

World War Z

 

6/21/2013

 

 

Monsters University

 

6/21/2013

 

 

 

 

 

Fiscal Q2 2014

 

Film

 

Domestic Release Date

(ending 9/30/13)

 

Despicable Me 2

 

7/3/2013

 

 

Pacific Rim

 

7/12/2013

 

 

Turbo

 

7/17/2013

 

 

R.I.P.D.

 

7/19/2013

 

 

The Wolverine

 

7/26/2013

 

 

The Smurfs 2

 

7/31/2013

 

 

Percy Jackson: Sea of Monsters

 

8/7/2013

 

 

Planes

 

8/9/2013

 

 

One Direction: This Is Us

 

8/30/2013

 

 

Battle of the Year: The Dream Team

 

9/13/2013

 

 

Cloudy With a Chance of Meatballs 2

 

9/27/2013

 

 

 

 

 

Fiscal Q3 2014

 

Film

 

Domestic Release Date

(ending 12/31/13)

 

Sin City: A Dame to Die For

 

10/4/2013

 

 

Gravity

 

10/4/2013

 

 

Metallica: Through the Never

 

10/4/2013

 

 

The Seventh Son

 

10/18/2013

 

 

Free Birds

 

11/1/2013

 

 

Thor: The Dark World

 

11/8/2013

 

 

Frozen

 

11/27/2013

 

 

Postman Pat: The Movie - You Know You’re the One

 

11/27/2013

 

 

The Hobbit: The Desolation of Smaug

 

12/13/2013

 

 

Walking With Dinosaurs

 

12/20/2013

 

 

47 Ronin

 

12/25/2013

 

 

 

 

 

Fiscal Q4 2014

 

Film

 

Domestic Release Date

(ending 3/31/14)

 

The Nut Job

 

1/17/2014

 

 

I, Frankenstein

 

1/24/2014

 

 

The Lego Movie

 

2/7/2014

 

 

Pompeii

 

2/28/2014

 

 

Mr. Peabody and Sherman

 

3/7/2014

 

 

300: Rise of an Empire

 

3/7/2014

 

 

 

 

 

 

 

Sources: Rentrak and imdb.com.

 



 

Conference Call Information

 

Members of RealD’s management will host a conference call to discuss RealD’s financial results for the fourth quarter of fiscal 2013, beginning at 4:30 pm ET (1:30 pm PT), today, June 6, 2013.  To access the call via telephone, interested parties should dial (855) 769-4820 (U.S.) or (407) 374-0083 (International) ten minutes prior to the start time and use conference ID 73037700.

 

The conference call will also be broadcast live over the Internet, hosted at the Investor Relations section of RealD’s website at www.reald.com.  An archived replay of the call will be available via webcast at www.reald.com or by dialing (855) 859-2056, or (404) 537-3406 for international callers. The conference ID for the telephone replay is 73037700.

 

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; our expectations regarding demand and acceptance for our technologies; RealD’s ability to continue to derive substantial revenue from the licensing of RealD’s 3D technologies for use in the motion picture industry, as well as RealD’s ability to generate revenue from the licensing of RealD’s 3D technologies for use in 3D-enabled display devices; 3D motion picture releases and conversions scheduled for fiscal 2014 ending March 31, 2014 and beyond, their commercial success and consumer preferences, that, in recent periods, have trended in favor of 2D over 3D in some motion pictures in domestic markets; our ability to increase our revenues and the number of RealD-enabled screens in domestic and international markets and our market share; our ability to supply our solutions to our customers on a timely basis; RealD’s 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 RealD’s research and development activities, which may increase in future periods; market and industry trends, including growth in 3D content; our plans, strategies and expected opportunities; the deployment of and demand for our products and products incorporating our technologies; RealD’s projected operating results; and competitive pressures in domestic and international cinema markets impacting license and product revenues.

 

These statements are based on our management’s 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 management’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements.  RealD’s Annual Report on Form 10-K for the twelve months ended March 23, 2012, RealD’s Quarterly Report on Form 10-Q for the third fiscal quarter ended December 31, 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 RealD’s financial statements presented on a GAAP basis, RealD provides Adjusted EBITDA and free cash flow as supplemental measures of its performance.   RealD 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 RealD’s core operating performance.  RealD 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 RealD’s operating results in a manner that focuses on what RealD’s 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.  RealD’s 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, RealD’s 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 management’s 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 RealD’s 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. RealD’s 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, content producers and distributors to enable the delivery and viewing of 3D content on a variety of visual displays and devices.

 

RealD was founded in 2003 and has offices in Beverly Hills, California; Boulder, Colorado; London, United Kingdom; Moscow, Russia; Shanghai, China; Hong Kong; Tokyo, Japan; and Rio de Janeiro, Brazil.  For more information, please visit our website at www.reald.com.

 

© 2013 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)

 

 

 

Three months ended

 

Year ended

 

 

March 31,

 

March 23,

 

March 31,

 

March 23,

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

License

 

  $

31,253

 

 

  $

31,655

 

 

  $

137,752

 

 

  $

147,801

 

Product and other

 

14,196

 

 

18,392

 

 

77,800

 

 

98,827

 

Total revenue

 

45,449

 

 

50,047

 

 

215,552

 

 

246,628

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

License

 

12,424

 

 

9,480

 

 

47,243

 

 

39,801

 

Product and other

 

12,751

 

 

13,672

 

 

78,117

 

 

78,137

 

Total cost of revenue

 

25,175

 

 

23,152

 

 

125,360

 

 

117,938

 

Gross profit

 

20,274

 

 

26,895

 

 

90,192

 

 

128,690

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

4,588

 

 

3,764

 

 

19,454

 

 

16,500

 

Selling and marketing

 

6,394

 

 

7,423

 

 

25,266

 

 

27,682

 

General and administrative

 

12,033

 

 

12,454

 

 

47,830

 

 

42,189

 

Total operating expenses

 

23,015

 

 

23,641

 

 

92,550

 

 

86,371

 

Operating income (loss)

 

(2,741

)

 

3,254

 

 

(2,358

)

 

42,319

 

Interest expense

 

(456

)

 

(261

)

 

(1,483

)

 

(971

)

Other income (loss)

 

(425

)

 

625

 

 

(982

)

 

782

 

Income (loss) before income taxes

 

(3,622

)

 

3,618

 

 

(4,823

)

 

42,130

 

Income tax expense (benefit)

 

822

 

 

(2,065

)

 

5,064

 

 

5,105

 

Net income (loss)

 

(4,444

)

 

5,683

 

 

(9,887

)

 

37,025

 

Net (income) loss attributable to noncontrolling interest

 

108

 

 

(147

)

 

197

 

 

(156

)

Net income (loss) attributable to RealD Inc. common stockholders

 

  $

(4,336

)

 

  $

5,536

 

 

  $

(9,690

)

 

  $

36,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

  $

(0.09

)

 

  $

0.10

 

 

  $

(0.20

)

 

  $

0.68

 

Diluted

 

  $

(0.09

)

 

  $

0.10

 

 

  $

(0.20

)

 

  $

0.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

49,792

 

 

54,587

 

 

52,345

 

 

54,352

 

Diluted

 

49,792

 

 

56,468

 

 

52,345

 

 

56,852

 

 



 

RealD Inc.

Consolidated Balance Sheets

(In thousands)

 

 

 

(unaudited)

 

 

 

 

 

 

March 31,

 

 

March 23,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

  $

31,020

 

 

  $

24,894

 

Accounts receivable, net

 

45,472

 

 

59,212

 

Inventories

 

15,430

 

 

40,577

 

Deferred costs – eyewear

 

538

 

 

932

 

Prepaid expenses and other current assets

 

3,973

 

 

2,630

 

Total current assets

 

96,433

 

 

128,245

 

Property and equipment, net

 

25,002

 

 

12,713

 

Cinema systems, net

 

125,379

 

 

141,024

 

Digital projectors, net-held for sale

 

728

 

 

1,078

 

Goodwill

 

10,657

 

 

10,657

 

Other intangibles, net

 

7,417

 

 

1,746

 

Deferred income taxes

 

3,001

 

 

3,049

 

Other assets

 

5,031

 

 

3,663

 

Total assets

 

  $

273,648

 

 

  $

302,175

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

  $

22,737

 

 

  $

22,617

 

Accrued expenses and other liabilities

 

25,013

 

 

28,870

 

Deferred revenue

 

9,916

 

 

7,201

 

Income taxes payable

 

603

 

 

1,121

 

Deferred income taxes

 

2,860

 

 

3,149

 

Current portion of long-term debt

 

1,042

 

 

 

Total current liabilities

 

62,171

 

 

62,958

 

Credit facility agreement

 

46,458

 

 

25,000

 

Deferred revenue, net of current portion

 

10,392

 

 

13,920

 

Other long-term liabilities, customer deposits and virtual print fee liability

 

5,438

 

 

2,691

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (deficit)

 

 

 

 

 

 

Common stock

 

332,694

 

 

309,894

 

Accumulated deficit

 

(182,846

)

 

(112,711

)

 

 

115

 

 

 

Total RealD Inc. stockholders’ equity

 

149,963

 

 

197,183

 

Noncontrolling interest

 

(774

)

 

423

 

Total equity

 

149,189

 

 

197,606

 

 

 

 

 

 

 

 

Total liabilities and equity

 

  $

273,648

 

 

  $

302,175

 

 



 

RealD Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Year ended

 

 

 

March 31,

 

March 23,

 

 

 

2013

 

2012

 

Cash flows from operating activities

 

 

 

 

 

Net income (loss)

 

 $

(9,887)

 

 $

37,025

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

33,131

 

28,266

 

Deferred income tax

 

(241)

 

38

 

Non-cash interest expense

 

483

 

151

 

Non-cash stock compensation

 

18,474

 

15,744

 

Gain on sale of digital projectors

 

 

(1,742)

 

Loss on disposal of property and equipment

 

44

 

452

 

Impairment of long-lived assets

 

8,679

 

10,269

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

11,266

 

(6,062)

 

Inventories

 

25,147

 

14,394

 

Prepaid expenses and other current assets

 

(954)

 

(896)

 

Deferred costs - eyewear

 

394

 

(883)

 

Other assets

 

(590)

 

(1,528)

 

Accounts payable

 

125

 

(36,916)

 

Accrued expenses and other liabilities

 

(7,790)

 

(11,399)

 

Other long-term liabilities, customer deposits and virtual print fee liability

 

2,747

 

1,989

 

Income taxes receivable/payable

 

(518)

 

1,260

 

Deferred revenue

 

(813)

 

(7,161)

 

Net cash provided by operating activities

 

79,697

 

43,001

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property and equipment

 

(16,169)

 

(8,760)

 

Purchases of cinema systems and related components

 

(18,121)

 

(52,708)

 

Purchases of intangible assets

 

(6,084)

 

 

Proceeds from sale of digital projectors

 

2,474

 

3,999

 

Net cash used in investing activities

 

(37,900)

 

(57,469)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Noncontrolling interest distribution

 

(1,000)

 

(1,509)

 

Payments of debt issuance costs

 

(1,167)

 

 

Repayments of long-term debt

 

 

(2,311)

 

Proceeds from credit facility

 

60,000

 

30,000

 

Repayments on credit facility

 

(37,500)

 

(5,000)

 

Proceeds from exercise of stock options

 

3,516

 

972

 

Proceeds from issuance of common stock pursuant to employee stock purchase plan

 

810

 

 

Proceeds from exercise of warrants

 

 

271

 

Proceeds from exercise of motion picture exhibitor options

 

 

3

 

Repurchase of common stock

 

(60,445)

 

 

Net cash provided (used) by financing activities

 

(35,786)

 

22,426

 

Effect of currency exhange rate changes on cash and cash equivalents

 

115

 

 

Net increase in cash and cash equivalents

 

6,126

 

7,958

 

Cash and cash equivalents, beginning of year

 

24,894

 

16,936

 

Cash and cash equivalents, end of year

 

 $

31,020

 

 $

24,894

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

Cash payments for income taxes

 

 $

1,967

 

 $

1,060

 

Cash payments for interest expense

 

1,000

 

820

 

Sale of digital projectors in accounts receivable

 

 $

 

 $

2,474

 

 



 

RealD Inc.

Schedule of Non-GAAP Reconciliations

(In thousands)

(Unaudited)

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

 

 

Three months ended

 

Year ended

 

 

 

March 31,

 

March 23,

 

March 31,

 

March 23,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net income (loss)

 

  $

(4,444)

 

  $

5,683

 

  $

(9,887)

 

  $

37,025

 

Add (deduct):

 

 

 

 

 

 

 

 

 

Interest expense, net

 

456

 

261

 

1,483

 

971

 

Income tax expense (benefit)

 

822

 

(2,065)

 

5,064

 

5,105

 

Depreciation and amortization

 

9,001

 

7,708

 

33,131

 

28,266

 

Other (income) loss (1)

 

425

 

(625)

 

982

 

(782)

 

Share-based compensation expense (2)

 

4,509

 

4,026

 

18,474

 

15,744

 

Impairment of assets and intangibles (3)

 

2,098

 

1,245

 

8,679

 

10,269

 

Sales and use tax (4) 

 

780

 

1,287

 

3,950

 

6,363

 

Property tax (5) 

 

256

 

301

 

1,447

 

1,434

 

Adjusted EBITDA

 

  $

13,903

 

  $

17,821

 

  $

63,323

 

  $

104,395

 

 

 

(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 and employee stock purchase plan to employees, officers and directors.

(3)         Represents impairment of long-lived assets, such as fixed assets, theatrical equipment and related purchase commitments 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.

 

RealD Inc.

Schedule of Non-GAAP Reconciliations

(In thousands)

(Unaudited)

 

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

 

 

 

Year ended

 

 

 

March 31,

 

March 23,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Net cash provided by operating activities

 

  $

79,697

 

  $

43,001

 

Purchases of property and equipment

 

(16,169)

 

(8,760)

 

Purchases of cinema systems and related components

 

(18,121)

 

(52,708)

 

Free cash flow

 

  $

45,407

 

  $

(18,467)