Moving iMage Technologies, Inc.

Greetings, and welcome to the Moving Image Technologies fourth quarter and full year fiscal 2022 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Siegel, Senior Managing Director at Hayden IR. Thank you, sir. You may begin.

Good morning, and welcome to the Moving Image Technologies fourth quarter and full year fiscal 2022 earnings conference call and webcast. With me today is Chairman and CEO Phil Raffinson, Co-Founder and Executive VP of Sales and Marketing Joe Delgado, and CFO Mike Sherman. Today's call will begin with prepared remarks and follow with a Q&A session. For those of you on the webcast, you can submit your questions through the webcast portal, and we'll do our best to answer them. Please note this event is being recorded. This earnings call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth in contemplated by or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. Now I'd like to turn the call over to Phil. Phil?

I'm Phil Rapson, CEO of Movie Image Technology, or MIT for short. Like last quarter, today I'm going to spend my part providing an update on overall industry trends that we believe will drive the tremendous growth opportunity for MIT over the next few years. And then Joe will provide an overview of MIT's business and growth strategy. He will then turn to call over to our CFO, Mike Sherman, to discuss today's results, followed by a question and answer period. MIT serves the commercial cinema and live event industry in several ways. Today, most of our business is serving cinema owners and operators. And in North America, there are approximately 40,000 screens, 18,000 of which are outside the top five circuits. While we work with majors, most of our business is with small to medium-sized operators. As you probably know, this industry has been hit hard by COVID during 2020 and the first half of 2021, with box office receipts declining from over $11 billion in 2019 to $2.1 billion in 2020. And that trend has continued into 2022 with many blockbusters having already been released. As we look to the remainder of the year, we expect probably three more blockbusters, including Avatar, The Way of the Water, Black Panther, Wakanda Forever, and the new Black Adam movie starring The Rock. For 2023, there is also an already existing slate of releases expected, setting the backdrop for an even stronger year. As I've discussed on the past few calls, there are additional trail wins that we expect to benefit both the cinema and live venue industry. The first is related to government grants. This part of the CARES Act, as part of the CARES Act, publicly traded live event operators were able to access over $16 billion in grants through the SBA. This program, called the Shuttered Venue Operations Grant, or SVOG, to date provided almost $14.6 billion in grants, with over $2.5 billion going to cinema operators. This money is flowing, and this spending is kicking off a multi-year growth cycle. Next, the theater operators use these funds for operations and to proactively refurbish, upgrade, and build new modern theaters to significantly enhance overall cinema-going experience. This includes adding amenities such as in-house bars and lounges, breweries, restaurants, and in-cinema dining. among others. In fact, Dynion cinemas are among the fastest growing parts of the industry, and we are very well positioned with these circuits. Finally, we're in the early stages of a technology upgrade cycle, especially for laser projectors and servers. During the last upgrade cycle, we participated in approximately 17,000 cinema screens over nearly five years. So we believe there is a long runway ahead So how does MIT fit in? We are a technology and hardware designer and manufacturer, an integrator and distributor of third-party technologies, and a project manager to the theater industry. We have strong, longstanding relationships with suppliers, key technology providers, and customers, as well as architects and technical personnel which help design in our products. Over 70% of our revenue comes from small to mid-sized cinema operators, which tend to be expanding more quickly than the big three, with whom we also work. From a Prestige perspective, we have also installed over 40 in-home screening rooms in industry VIPs for industry VIPs, which include senior industry executives, producers, and directors. In conclusion, I'd like to thank our dedicated employees without whom we would not be in what I believe is the strongest position we've ever been in as a company from an operational, financial, product, and competitive perspective. And for our existing and future shareholders, I feel your pain as a company's largest shareholder. The business and our stock are heading in the right direction, and we are working hard to bring new investors to the table. I am excited about our strong growth perspectives, and over the next several years, as we strive to turn MIT into a $50-plus million company, now I'll turn the call over to Joe.