Cinedigm Digital Cinema (CIDM) Posts Q4, FY Results, Operational Outline

QualityStocks would like to highlight Cinedigm (NASDAQ: CIDM), a leader in providing the services, experience, technology and content critical to transforming movie theaters into digital and networked entertainment centers. The company partners with Hollywood movie studios, independent movie distributors, and exhibitors to bring movies in digital cinema format to audiences across the country.

In the company’s news yesterday,

Cinedigm posted financial results for the fourth quarter and full year ended March 31, 2011, reflecting the company’s efforts to streamline its focus toward becoming a market leader.

Adjusted EBITDA of $11.6 million for the fourth quarter increased 36.6 percent from the $8.5 million reported for the fourth quarter of the prior year.

Net loss in the fourth quarter of 2011 was $7.3 million, or $(0.23) per share, a 51.5 percent improvement compared to the net loss of $15.0 million, or $(0.51) per share, in the fourth quarter one year ago.

For the full fiscal year of 2011, Cinedigm posted revenues of $79.9 million, a 15.8 percent increase from prior year’s revenues of $69.0 million.

Full-year adjusted EBITDA was $45.4 million, a 20.3 percent from $37.7 million in the prior fiscal year.

Net loss for the year was $9.2 million, or $(0.95) per share, compared to the net loss of $29.5 million, or $(1.03) per share, in the prior fiscal year.

The company reported phase II digital system signings during the quarter at a record 1,402, 2,750 systems signed for the full fiscal year with 1,859 installed during the fiscal year, and 2,195 total phase II digital systems deployed to-date.

“As we have consistently noted, each one thousand screens we deploy will add $2.0 million-$2.5 million of non-deployment EBITDA in the first 12 months through service fees, software license and maintenance fees, and delivery fees,” Adam M. Mizel, CFO and chief strategy officer Mizel stated in the press release.

Chris McGurk, chairman and CEO of Cinedigm, detailed how the company’s business strategy will channel into capital and noted the company’s confidence in its efforts moving forward.

“This is a very exciting time for Cinedigm,” McGurk stated. “The expanding digital screen platform provides Cinedigm with the ability to generate significant revenues and profits from the variety of software and services we provide, as well as aggressively pursue the high potential alternative content business on the digital cinema backbone. As a management team we are all committed to exploiting the many opportunities in front of us, and we are confident that a disciplined and focused approach will yield continued strong results to our bottom line, and of course shareholder value.”

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.