RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2012
LOS ANGELES, Nov 02, 2011 (BUSINESS WIRE) -- RealD Inc. RLD -13.85% , a leading global licensor of 3D technologies, today announced financial results for its second quarter of fiscal 2012 ended September 23, 2011.
Second Quarter Financial Highlights
-- Revenue was $88.0 million, an increase of 35% from $65.3 million in the second quarter of fiscal 2011.
-- Net license revenue was $52.0 million, an increase of 119% from $23.8 million in the second quarter of fiscal 2011.
-- Excluding the impact of $11.6 million in exhibitor stock option expense in the prior year quarter (a contra revenue item), licensing revenue increased 47% year-over-year. Since all exhibitor stock options vested in fiscal 2011, RealD does not expect to incur exhibitor stock option expense during the current fiscal year or in future years.
-- Product and other revenue was $36.0 million, a decrease of 13% from $41.6 million in the second quarter of fiscal 2011. The decrease is partially attributable to an increasing number of international consumers returning to the cinema with RealD eyewear purchased at a previous RealD showing.
-- License revenue increased to 59% of gross revenue during the quarter from 46% of gross revenue in the second quarter of fiscal 2011, whereas product revenue decreased to 41% of gross revenue during the quarter from 54% of gross revenue in the second quarter of fiscal 2011.
GAAP Results -- Profitability Measures and Balance Sheet
-- GAAP net income attributable to common stockholders was $18.9 million, or $0.33 per diluted share. In the second quarter of fiscal 2011, the Company recorded a GAAP net loss attributable to common stockholders of $5.1 million, or $0.12 per share.
-- Gross margin increased to 48% from 21% in the second quarter of fiscal 2011.
-- The Company's balance sheet at September 23, 2011 included total cash and cash equivalents of $32.5 million and total debt of $25.0 million. The Company had $25 million available on its line of credit as of September 23, 2011.
Non-GAAPResults -- Profitability Measures
-- Adjusted EBITDA was $44.4 million, an increase of 169% from $16.5 million in the second quarter of fiscal 2011.
-- Adjusted EBITDA increased to 50% of net revenue from 25% of net revenue in the second 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.
"A strong 3D film slate and our growing base of 3D cinema systems worldwide enabled RealD to deliver significant year-over-year growth in license revenue, a key driver of our growth in net income and Adjusted EBITDA during the quarter," said Michael V. Lewis, Chairman and Chief Executive Officer of RealD.
Key Metrics and International Revenue Statistics
-- International markets generated 56% of gross license revenue in the quarter compared to 52% of gross license revenue in the second quarter of fiscal 2011.
-- As of September 23, 2011, the Company had deployed approximately 18,700 RealD-enabled screens, an increase of 101% from approximately 9,300 screens as of September 24, 2010, and an increase of 1,200 screens, or 7%, from approximately 17,500 screens as of June 24, 2011.
-- As of September 23, 2011, the Company had approximately 11,100 domestic screens at approximately 2,500 domestic theater locations and approximately 7,600 international screens at approximately 2,400 international theater locations.
Recent Business Highlights
-- RealD entered into agreements with two Chinese cinema circuits: SHIMAO Cinema and Beijing SAGA Luxury Cinema. Each exhibitor committed to equip a minimum of 100 auditoriums with RealD technology.
-- RealD today is announcing revised expectations for its license agreement with Samsung Electronics LCD Business. In May 2011, RealD and Samsung announced that panels featuring RealD 3D display technology were expected to be made available to consumer electronics manufacturers by early 2012. RealD has recently learned that Samsung's initiative to manufacture panels under the RealD license agreement is not being pursued at this time. As a result, RealD is now pursuing other potential partners for its 3D display technology among consumer electronics panel manufacturers.