Published: February 03, 2011
RealD Inc. Reports Third Quarter Fiscal 2011 Financial Results
LOS ANGELES - (BUSINESS WIRE) - RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies,
today announced the Company's financial results for the three and nine
months ended December 24, 2010.
Third Quarter Fiscal 2011 Results
For the third quarter of fiscal 2011, RealD reported net revenue of
$57.8 million, compared to $30.2 million for the third quarter of fiscal
2010, an increase of 91 percent.
GAAP net loss attributable to common stockholders for the third quarter
of fiscal 2011 was $16.6 million, or $0.34 per diluted share, compared
to a GAAP net loss attributable to common stockholders of $15.1 million,
or $0.61 per diluted share, for the third quarter of fiscal 2010.
Excluding the impact of motion picture exhibitor option expense of $22.0
million and $11.8 million respectively, non-GAAP net income attributable
to common stockholders for the third quarter of fiscal 2011 was $5.4
million, compared to a non-GAAP net loss attributable to common
stockholders of $3.3 million for the third quarter of fiscal 2010.
Non-GAAP net income (loss) attributable to common stockholders is
defined below and reconciled to net loss attributable to common
stockholders, the most comparable measure under GAAP, in the section
entitled "Use of non-GAAP financial measures."
Adjusted EBITDA for the third quarter of fiscal 2011 was $16.9 million,
compared to $5.4 million for the third quarter of fiscal 2010, an
increase of 213 percent. Adjusted EBITDA, which is a non-GAAP financial
measure, is defined below and reconciled to net income (loss), the most
comparable measure under GAAP, in the section entitled "Use of non-GAAP
financial measures."
As of December 24, 2010, the Company had deployed approximately 11,300
RealD-enabled screens, comprised of 6,900 domestic (United States and
Canada) RealD-enabled screens and 4,400 international RealD-enabled
screens, and representing an increase of 163% from 4,300 screens at
December 25, 2009 and an increase of 22% from approximately 9,300
screens at September 24, 2010.
At December 24, 2010, the Company had total cash and cash equivalents of
$35.5 million.
Management Comments
"We are pleased that the third quarter marked a continuation of the
strong performance we delivered in the first half of fiscal 2011," said
Michael V. Lewis, Chairman and Chief Executive Officer of RealD. "Driven
by an increasing 3D film slate and growing consumer demand for an
immersive 3D visual experience, the 3D box office continued to expand in
the third quarter of fiscal 2011. Our ability to garner over an
estimated 80% of the domestic 3D box office and, we believe, an
increasing share of the international 3D box office, serves as a
testament to the superior technology and value proposition that RealD
delivers to exhibitors. We look forward to enabling the continued growth
of 3D cinema through the ongoing worldwide deployment of our premium
RealD 3D cinema systems which deliver a distinctive and immersive 3D
visual experience to consumers."
First Nine Months Fiscal 2011 Results
For the nine months ended December 24, 2010, RealD reported net revenue
of $187.6 million, compared to $94.4 million for the nine months ended
December 25, 2009, an increase of 99 percent.
GAAP net loss attributable to common stockholders for the nine months
ended December 24, 2010 was $16.8 million, or $0.43 per diluted share,
compared to a GAAP net loss attributable to common stockholders of $30.4
million, or $1.24 per diluted share, for the nine months ended December
25, 2009. Excluding the impact of motion picture exhibitor option
expense of $34.0 million and $18.0 million respectively, non-GAAP net
income attributable to common stockholders for the nine months ended
December 24, 2010 was $17.3 million, compared to a non-GAAP net loss
attributable to common stockholders of $12.4 million for the nine months
ended December 25, 2009.
Adjusted EBITDA for the nine months ended December 24, 2010 was $44.4
million, compared to $11.5 million for the nine months ended December
25, 2009, an increase of 285 percent.
|
Second Half Fiscal 2011 & First Half Fiscal 2012 3D Theatrical
Release Schedule
|
|
(As of February 3, 2011)
|
|
|
|
|
|
|
|
Fiscal Q3 2011
|
|
Film
|
|
Release Date
|
|
|
|
My Soul To Take
|
|
10/8/2010
|
|
|
|
Jackass 3D
|
|
10/15/2010
|
|
|
|
Saw VII
|
|
10/29/2010
|
|
|
|
Megamind
|
|
11/5/2010
|
|
|
|
Tangled (Rapunzel)
|
|
11/24/2010
|
|
|
|
The Chronicles of Narnia: Voyage of the Dawn Treader 3D
|
|
12/10/2010
|
|
|
|
Tron: Legacy 3D
|
|
12/17/2010
|
|
|
|
Yogi Bear
|
|
12/17/2010
|
|
|
|
Gulliver's Travels
|
|
12/22/2010
|
|
|
|
|
|
|
|
Fiscal Q4 2011
|
|
Film
|
|
Release Date
|
|
|
|
The Green Hornet 3D
|
|
1/14/2011
|
|
|
|
James Cameron Presents Sanctum 3D
|
|
2/4/2011
|
|
|
|
Gnomeo & Juliet
|
|
2/11/2011
|
|
|
|
Justin Bieber's Never Say Never 3D
|
|
2/11/2011
|
|
|
|
Drive Angry
|
|
2/25/2011
|
|
|
|
Mars Needs Moms 3D
|
|
3/11/2011
|
|
|
|
|
|
|
|
Fiscal Q1 2012
|
|
Film
|
|
Release Date
|
|
|
|
Rio
|
|
4/15/2011
|
|
|
|
Thor
|
|
5/6/2011
|
|
|
|
Friday the 13th 3D
|
|
5/13/2011
|
|
|
|
Priest 3D
|
|
5/13/2011
|
|
|
|
Pirates of the Caribbean: On Stranger Tides
|
|
5/20/2011
|
|
|
|
Kung Fu Panda: The Kaboom Of Doom
|
|
5/26/2011
|
|
|
|
Green Lantern
|
|
6/17/2011
|
|
|
|
Cars 2
|
|
6/24/2011
|
|
|
|
|
|
|
|
Fiscal Q2 2012
|
|
Film
|
|
Release Date
|
|
|
|
Transformers: Dark Of the Moon 3D
|
|
7/1/2011
|
|
|
|
Harry Potter: Deathly Hallows Part II
|
|
7/15/2011
|
|
|
|
Smurfs 3D
|
|
8/3/2011
|
|
|
|
The Darkest Hour 3D
|
|
8/5/2011
|
|
|
|
Friday Night 3D
|
|
8/19/2011
|
|
|
|
Spy Kids 4: Armageddon 3D
|
|
8/19/2011
|
|
|
|
Conan 3D
|
|
8/19/2011
|
|
|
|
Final Destination 5 3D
|
|
8/26/2011
|
|
|
|
Untitled 3D Shark Thriller
|
|
9/2/2011
|
|
|
|
Piranha 3DD
|
|
9/16/2011
|
|
|
|
Dolphin Tale 3D
|
|
9/16/2011
|
|
|
|
Journey 2: The Mysterious Island
|
|
9/23/2011
|
|
Source: Rentrak
|
Conference call information
Members of RealD management will host a conference call to discuss its
third quarter fiscal 2011 financial results beginning at 4:30 pm ET
(1:30 pm PT), today, February 3, 2011. The conference will be broadcast
live over the Internet, hosted at the Investor Relations section of the
company's website at www.reald.com,
and will be archived online upon completion of the call.
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; 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 substantial revenue from the licensing of RealD's 3D
technologies for use in the 3D consumer electronics market; 3D motion
picture releases and conversions scheduled for 2010 and 2011; our
ability to supply our solutions to our customers on a timely basis; the
progress, timing and amount of expenses associated with RealD's research
and development activities; market and industry trends, including growth
in 3D content; and RealD's projected operating results. 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 our management's control that could cause actual results to
differ materially from the results discussed in the forward-looking
statements. The company's quarterly report on Form 10-Q for the three
and nine months ended December 24, 2010 includes a more detailed
discussion of the risks and uncertainties that may cause that could
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 non-GAAP net income attributable to common stockholders
and Adjusted EBITDA as supplemental measures of its performance. The
company defines non-GAAP net income attributable to common stockholders
as net income attributable to common stockholders excluding the impact
of motion picture exhibitor option expense. The company defines Adjusted
EBITDA as net income (loss), plus net interest expense, income 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 indicative of the company's core
operating performance.
RealD presents non-GAAP net income attributable to common stockholders
and 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'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 is 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; in communications with its Board of Directors
concerning financial performance; and as part of the company's credit
agreement in which Adjusted EBITDA is used to measure compliance with
certain covenants.
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, RealD Format and
gaming technologies to consumer electronics manufacturers and content
producers and distributors to enable the delivery and viewing of 3D
content. RealD's cutting-edge 3D 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;
and Tokyo, Japan. For more information, please visit our website at www.reald.com.
(c) 2011 RealD Inc. All Rights Reserved.
|
RealD Inc.
|
|
Consolidated Statement of Operations
|
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
December 24,
|
|
December 25,
|
|
December 24,
|
|
December 25,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
License
|
|
$
|
18,838
|
|
|
$
|
4,269
|
|
|
$
|
68,390
|
|
|
$
|
25,993
|
|
|
Product and other
|
|
|
38,942
|
|
|
|
25,926
|
|
|
|
119,232
|
|
|
|
68,449
|
|
|
Total revenue
|
|
|
57,780
|
|
|
|
30,195
|
|
|
|
187,622
|
|
|
|
94,442
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
License
|
|
|
5,301
|
|
|
|
2,587
|
|
|
|
11,660
|
|
|
|
7,099
|
|
|
Product and other
|
|
|
46,341
|
|
|
|
29,040
|
|
|
|
138,099
|
|
|
|
77,586
|
|
|
Total cost of revenue
|
|
|
51,642
|
|
|
|
31,627
|
|
|
|
149,759
|
|
|
|
84,685
|
|
|
Gross margin
|
|
|
6,138
|
|
|
|
(1,432
|
)
|
|
|
37,863
|
|
|
|
9,757
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
4,347
|
|
|
|
2,322
|
|
|
|
10,751
|
|
|
|
7,327
|
|
|
Selling and marketing
|
|
|
5,813
|
|
|
|
3,342
|
|
|
|
15,251
|
|
|
|
11,123
|
|
|
General and administrative
|
|
|
10,596
|
|
|
|
3,920
|
|
|
|
25,195
|
|
|
|
9,870
|
|
|
Total operating expenses
|
|
|
20,756
|
|
|
|
9,584
|
|
|
|
51,197
|
|
|
|
28,320
|
|
|
Operating loss
|
|
|
(14,618
|
)
|
|
|
(11,016
|
)
|
|
|
(13,334
|
)
|
|
|
(18,563
|
)
|
|
Interest expense
|
|
|
(71
|
)
|
|
|
(575
|
)
|
|
|
(873
|
)
|
|
|
(1,149
|
)
|
|
Other income (loss)
|
|
|
(431
|
)
|
|
|
(210
|
)
|
|
|
6,376
|
|
|
|
(670
|
)
|
|
Loss before income taxes
|
|
|
(15,120
|
)
|
|
|
(11,801
|
)
|
|
|
(7,831
|
)
|
|
|
(20,382
|
)
|
|
Income tax expense
|
|
|
1,648
|
|
|
|
478
|
|
|
|
3,299
|
|
|
|
1,431
|
|
|
Net loss
|
|
|
(16,768
|
)
|
|
|
(12,279
|
)
|
|
|
(11,130
|
)
|
|
|
(21,813
|
)
|
|
Net (income) loss attributable to noncontrolling interest
|
|
|
181
|
|
|
|
261
|
|
|
|
(692
|
)
|
|
|
726
|
|
|
Accretion of preferred stock
|
|
|
-
|
|
|
|
(3,093
|
)
|
|
|
(4,934
|
)
|
|
|
(9,278
|
)
|
|
Net loss attributable to RealD Inc. common stockholders
|
|
$
|
(16,587
|
)
|
|
$
|
(15,111
|
)
|
|
$
|
(16,756
|
)
|
|
$
|
(30,365
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.34
|
)
|
|
$
|
(0.61
|
)
|
|
$
|
(0.43
|
)
|
|
$
|
(1.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings per common share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
48,760
|
|
|
|
24,607
|
|
|
|
38,689
|
|
|
|
24,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RealD Inc.
|
|
Consolidated Balance Sheets
|
|
(In thousands)
|
|
|
|
|
|
|
|
December 24,
|
|
March 26,
|
|
|
|
2010
|
|
2010
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
35,472
|
|
|
$
|
13,134
|
|
|
Accounts receivable, net
|
|
|
59,258
|
|
|
|
51,184
|
|
|
Inventories
|
|
|
43,076
|
|
|
|
6,539
|
|
|
Deferred costs - eyewear
|
|
|
1,571
|
|
|
|
1,842
|
|
|
Deferred income taxes
|
|
|
4,349
|
|
|
|
4,349
|
|
|
Prepaid expenses and other current assets
|
|
|
4,913
|
|
|
|
1,128
|
|
|
Total current assets
|
|
|
148,639
|
|
|
|
78,176
|
|
|
Property and equipment, net
|
|
|
5,520
|
|
|
|
2,558
|
|
|
Cinema systems, net
|
|
|
95,254
|
|
|
|
40,623
|
|
|
Digital projectors, net-held for sale
|
|
|
10,809
|
|
|
|
25,521
|
|
|
Goodwill
|
|
|
10,657
|
|
|
|
10,657
|
|
|
Other intangibles, net
|
|
|
1,963
|
|
|
|
2,024
|
|
|
Other assets
|
|
|
184
|
|
|
|
2,587
|
|
|
Total assets
|
|
$
|
273,026
|
|
|
$
|
162,146
|
|
|
Liabilities, redeemable convertible preferred stock and equity
(deficit)
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
57,055
|
|
|
$
|
37,625
|
|
|
Accrued expenses and other liabilities
|
|
|
38,813
|
|
|
|
24,608
|
|
|
Deferred revenue
|
|
|
16,590
|
|
|
|
19,430
|
|
|
Credit facility agreement
|
|
|
–
|
|
|
|
20,066
|
|
|
Income taxes payable
|
|
|
1,420
|
|
|
|
1,254
|
|
|
Current portion of long-term debt
|
|
|
2,430
|
|
|
|
9,299
|
|
|
Total current liabilities
|
|
|
116,308
|
|
|
|
112,282
|
|
|
Deferred revenue, net of current portion
|
|
|
15,098
|
|
|
|
14,144
|
|
|
Virtual print fee liability and customer deposits
|
|
|
4,533
|
|
|
|
8,331
|
|
|
Long-term debt, net of current portion
|
|
|
486
|
|
|
|
2,031
|
|
|
Deferred tax liability
|
|
|
4,413
|
|
|
|
4,413
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Series C mandatorily redeemable convertible preferred stock,
|
|
|
–
|
|
|
|
62,831
|
|
|
Equity (deficit)
|
|
|
–
|
|
|
|
|
Series A redeemable convertible preferred stock
|
|
|
–
|
|
|
|
1,978
|
|
|
Series B redeemable convertible preferred stock
|
|
|
–
|
|
|
|
2,970
|
|
|
Series D redeemable convertible preferred stock
|
|
|
–
|
|
|
|
19,952
|
|
|
Common stock
|
|
|
284,297
|
|
|
|
68,371
|
|
|
Accumulated deficit
|
|
|
(154,047
|
)
|
|
|
(137,291
|
)
|
|
Total RealD Inc. stockholders' equity (deficit)
|
|
|
130,250
|
|
|
|
(44,020
|
)
|
|
Noncontrolling interest
|
|
|
1,938
|
|
|
|
2,134
|
|
|
Total equity (deficit)
|
|
|
132,188
|
|
|
|
(41,886
|
)
|
|
Total liabilities, mandatorily redeemable convertible preferred
stock and equity (deficit)
|
|
$
|
273,026
|
|
|
$
|
162,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RealD Inc.
|
|
Schedule of Non-GAAP Reconciliations
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
Reconciliation of Net Loss to Adjusted EBITDA
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
December 24,
|
|
December 25,
|
|
December 24,
|
|
December 25,
|
|
(in thousands)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(16,768
|
)
|
|
$
|
(12,279
|
)
|
|
$
|
(11,130
|
)
|
|
$
|
(21,813
|
)
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
71
|
|
|
|
575
|
|
|
|
873
|
|
|
|
1,149
|
|
|
Income tax expense
|
|
|
1,648
|
|
|
|
478
|
|
|
|
3,299
|
|
|
|
1,431
|
|
|
Depreciation and amortization
|
|
|
4,384
|
|
|
|
2,010
|
|
|
|
10,428
|
|
|
|
5,387
|
|
|
Other (income) loss (1)
|
|
|
431
|
|
|
|
210
|
|
|
|
(6,376
|
)
|
|
|
670
|
|
|
Share-based compensation expense (2)
|
|
|
2,980
|
|
|
|
763
|
|
|
|
5,988
|
|
|
|
2,230
|
|
|
Exhibitor option expense (3)
|
|
|
21,960
|
|
|
|
11,794
|
|
|
|
34,008
|
|
|
|
17,966
|
|
|
Impairment of assets and intangibles (4)
|
|
|
519
|
|
|
|
115
|
|
|
|
814
|
|
|
|
408
|
|
|
Sales and use tax (5)
|
|
|
1,291
|
|
|
|
1,470
|
|
|
|
5,443
|
|
|
|
3,323
|
|
|
Property tax (6)
|
|
|
392
|
|
|
|
174
|
|
|
|
839
|
|
|
|
494
|
|
|
Management fee (7)
|
|
|
-
|
|
|
|
87
|
|
|
|
175
|
|
|
|
263
|
|
|
Adjusted EBITDA
|
|
$
|
16,908
|
|
|
$
|
5,397
|
|
|
$
|
44,361
|
|
|
$
|
11,508
|
|
|
|
|
|
|
(1) Includes amortization of debt issue costs, unrealized foreign
currency exchange gains and losses and gain of $6.7 million from
the sale of digital projectors in the nine month period ended
December 24, 2010.
|
|
|
|
(2) Represents share-based compensation expense of nonstatutory
and incentive stock options and restricted stock units to
employees, officers, directors and consultants.
|
|
|
|
(3) Represents stock options granted to some of our motion picture
exhibitor licensees. The amounts are recorded as contra revenue in
the condensed consolidated financial statements.
|
|
|
|
(4) Represents impairment of long-lived assets, such as fixed
assets, theatrical equipment and identifiable intangibles.
|
|
|
|
(5) Represents taxes incurred by us for cinema license and product
revenue.
|
|
|
|
(6) Represents property taxes on RealD Cinema Systems and digital
projectors.
|
|
|
|
(7) Represents payment of management fees to our Series C
mandatorily redeemable convertible preferred stockholder (included
in general and administrative expense, which was terminated upon
the completion of our initial public offering).
|
|
|
|
|
|
Reconciliation of Net Loss Attributable to Common Stockholders to
|
|
Non-GAAP Net Income (Loss) Attributable to Common Stockholders
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
December 24,
|
|
December 25,
|
|
December 24,
|
|
December 25,
|
|
(in thousands):
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net loss attributable to common stockholders:
|
|
$
|
(16,587
|
)
|
|
$
|
(15,111
|
)
|
|
$
|
(16,756
|
)
|
|
$
|
(30,365
|
)
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Exhibitor option expense
|
|
|
21,960
|
|
|
|
11,794
|
|
|
|
34,008
|
|
|
|
17,966
|
|
|
Non-GAAP net income (loss) attributable to common stockholders:
|
|
$
|
5,373
|
|
|
$
|
(3,317
|
)
|
|
$
|
17,252
|
|
|
$
|
(12,399
|
)
|
Addo Communications
Andrew Greenebaum / Laura Foster
310-829-5400
andrewg@addocommunications.com
/ lauraf@addocommunications.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
|
Search News
