Morristown, N.J. and Los Angeles, CA -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, reported continued solid growth in its operational and financial performance in the fiscal fourth quarter and year ended March 31, 2011. Cinedigm also reported the first positive fiscal year Adjusted EBITDA(defined below) from its non-deployment businesses in its history, underscoring its leadership position in building complementary business, technology and content services that leverage the growing digital cinema platform.
Revenues for the fiscal year ended March 31, 2011 were $79.9 million, representing a 15.8% increase from prior year's revenues of $69.0 million. The Company achieved Adjusted EBITDA of $45.4 million, increasing 20.3% from $37.7 million in the prior fiscal year. The net loss in the year of $(29.2) 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 net loss for the year ended March 31, 2011 included losses related to various non-cash items and discontinued operations of $48.2 million, as compared to $36.1 million in the prior year which included a non-recurring gain on the extinguishment of note payable.
Revenues for the fiscal fourth quarter were $20.6 million, representing a 31.8% increase from prior year fourth quarter revenues of $15.6 million. The Company posted Adjusted EBITDA of $11.6 million for the fourth quarter, increasing 36.6% from the $8.5 million reported for the fourth quarter of the prior year. The net loss in the fourth quarter of $(7.3) million, or $(0.23) per share, represents a 51.5% improvement compared to the net loss of $(15.0) million, or $(0.51) per share, in the fourth quarter one year ago.
Chris McGurk, Chairman and Chief Executive Officer of Cinedigm, commented, "From a strategic, operational and financial standpoint, fiscal 2011 was an outstanding year for Cinedigm. We have continued to streamline the company's focus, directing our resources and growth efforts toward those businesses where we are confident we can be a market leader and capitalize on the growth opportunities presented by the rapidly expanding digital cinema platform, particularly software and content distribution. First and foremost, we made great progress in our deployment business this quarter, signing over 1,400 screens - a multi-exhibitor record for the company. We now have 119 digital cinema exhibitor partners. Our software business also hit a significant milestone during the quarter with the signing of an overall services management agreement with AMC Theatres, the 2nd largest theatre chain in North America. Our content division continues to see increased activity, including the first ever wide-release 3D music performance with the Foo Fighters, the recently announced partnership with National Geographic Entertainment / YouTube for the documentary ‘Life In A Day,' and the ongoing progress of The Cinedigm Network."
Adam M. Mizel, CFO and Chief Strategy Officer, added, "Cinedigm had an excellent quarter and year. In 2011 we achieved positive Adjusted EBITDA from our non-deployment businesses in the third and fourth fiscal quarters of the year, and for the full fiscal year, a trend that we fully expect to continue and accelerate in the current fiscal year."
Mr. Mizel noted that Adjusted EBITDA, exclusive of Phase I and Phase II deployment, was a positive $0.8 million in the fourth quarter, and $0.5 million for the full fiscal year, which is a significant improvement over fiscal 2010 Adjusted EBITDA losses of $(0.6) million and $(4.9) million, respectively.
On the digital cinema services side, Phase II digital system signings during the quarter were a record 1,402, resulting in 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-$2.5 million of non-deployment EBITDA in the first twelve months through service fees, software license and maintenance fees, and delivery fees," Mr. Mizel continued.
"This is a very exciting time for Cinedigm," Mr. McGurk concluded. "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."