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RealD Inc. announced financial results for the third quarter of its fiscal year 2014, ended December 31, 2013.

For more information visit: www.reald.com

Unedited press release follows:

CORRECTING and REPLACING RealD Inc. Reports Third Quarter Fiscal Year 2014 Financial Results

LOS ANGELES — In the Condensed Consolidated Balance Sheets table, the figures for Total liabilities and equity for December 31, 2013 (unaudited) and March 31, 2013 should read $258,869 and $273,648, respectively (sted $366,857 and $398,107).

The corrected release reads:

REALD INC. REPORTS THIRD QUARTER FISCAL YEAR 2014 FINANCIAL RESULTS

RealD Inc. (NYSE: RLD), a leading global licensor of 3D and other visual technologies, today announced financial results for its third quarter of fiscal 2014 ended December 31, 2013.

“RealD delivered a strong third quarter, outperforming across nearly every financial measure,” said Michael V. Lewis, Chairman and Chief Executive Officer of RealD. “Both RealD box office and licensing revenue were up year-over-year, led by the success of Gravity. Delivering over $300 million in RealD box office to-date, Gravity demonstrates that the RealD platform can deliver strong results when a high-quality film is supported with proper marketing of the 3D format and appropriate 3D programming. As we did with Gravity, our goal is to identify these types of films early-on, work closely alongside the key film constituents and dedicate resources to maximize the performance of each film across our platform.

“At the same time, profitability and free cash flow in the quarter benefitted from reduced levels of operating expenses and capital expenditures, the result of recent actions taken to optimize our financial performance and better position the company for the future,” Mr. Lewis added. “Looking ahead, we will continue to invest in our international growth markets, as well as continue our focus on visual technology initiatives that are expected to offer compelling growth potential for RealD over the longer term. Notably, subsequent to quarter-end, we were pleased to announce RealD TrueImage™, the first measurable display of our effort to expand RealD’s business beyond 3D.”

Third Quarter Fiscal 2014 Financial Highlights
Total revenue was $55.4 million, comprised of license revenue of $35.6 million and product and other revenue of $19.8 million. For the third quarter of fiscal 2013, total revenue was $46.9 million, comprised of license revenue of $30.3 million and product and other revenue of $16.6 million.
GAAP net loss attributable to common stockholders was $271,000, or $0.01 per share, compared to GAAP net loss attributable to common stockholders of $4.2 million, or $0.08 per share, for the third quarter of fiscal 2013.

Adjusted EBITDA was $21.3 million, compared to $10.9 million in the third quarter of fiscal 2013.

As previously announced, RealD has modified its definition of Adjusted EBITDA for financial reporting purposes to align with the Adjusted EBITDA definition under RealD’s credit facility. As a result, the prior year calculation of Adjusted EBITDA was revised to conform with RealD’s new definition of Adjusted EBITDA.
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 (loss).

Nine-Month Fiscal 2014 Financial Highlights
Total revenue was $158.6 million, comprised of license revenue of $103.9 million and product and other revenue of $54.7 million. For the nine months ended December 31, 2012, total revenue was $170.1 million, comprised of license revenue of $106.5 million and product and other revenue of $63.6 million.
GAAP net loss attributable to common stockholders was $6.5 million, or $0.13 per share, compared to GAAP net loss attributable to common stockholders of $5.4 million, or $0.10 per share, for the nine months ended December 31, 2012.
Adjusted EBITDA was $51.0 million, compared to $45.1 million for the nine months ended December 31, 2012.

Cash Flows and Balance Sheet Highlights
For the nine months ended December 31, 2013, cash flows from operating activities were $21.5 million and total capital expenditures were $19.4 million, resulting in free cash flow of $2.1 million. The Company expects that its future cash flows will vary considerably from quarter to quarter, due to box office seasonality, among other factors.
Free cash flow 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 cash provided by operating activities.
As of December 31, 2013, cash and cash equivalents were $29.6 million and total debt was $49.4 million.

Key Metrics
Estimated box office generated on RealD-enabled screens(1) for the third quarter of fiscal 2014 was $752 million ($341 million domestic, $411 million international). In the third quarter of fiscal 2013, estimated box office generated on RealD-enabled screens was $643 million ($299 million domestic, $344 million international).
Eight 3D films were released in the third quarter of fiscal 2014, compared to nine 3D films in the third quarter of fiscal 2013. These figures reflect the number of 3D films released domestically during the periods.

International markets generated 67% of license revenue and 33% of product and other revenue in the third quarter of fiscal 2014.

As of December 31, 2013, RealD had deployed approximately 24,800 RealD-enabled screens, an increase of 12% from approximately 22,200 screens as of December 31, 2012, and an increase of 600 screens (100 domestic, 500 international), or 2%, from approximately 24,200 screens as of September 30, 2013.
As of December 31, 2013, RealD had approximately 13,400 domestic screens at approximately 3,000 domestic theater locations and approximately 11,400 international screens at approximately 2,900 international theater locations.

(1)           Estimated domestic box office on RealD-enabled screens represents the estimated 3D box office generated on RealD-enabled domestic screens. Estimated international box office on RealD-enabled international screens is the estimated 3D box office generated on RealD-enabled international screens. RealD’s estimates of box office on RealD-enabled screens rely on box office tracking data. International box office reflects RealD’s estimates of international box office generated on RealD-enabled screens in 19 foreign countries where box office tracking is available. RealD estimates these countries represent approximately 85% of RealD’s international license revenues.

Conference Call Information
Members of RealD’s management will host a conference call to discuss RealD’s financial results for the third quarter of fiscal 2014, beginning at 4:30 p.m. ET (1:30 p.m. PT), today, February 5, 2014. To access the call via telephone, interested parties should dial (855) 769-4820 (U.S.) or (407) 374-0083 (International) ten minutes prior to the start time and use conference ID 33414570.

The conference call will also be broadcast live over the Internet, hosted at the Investor Relations section of RealD’s website at www.reald.com. An archived replay of the call will be available via webcast at www.reald.com or by dialing (855) 859-2056, or (404) 537-3406 for international callers. The conference ID for the telephone replay is 33414570.

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; our expectations regarding demand and acceptance for our technologies; RealD’s ability to continue to derive substantial revenue from the licensing of RealD’s 3D technologies for use in the motion picture industry; 3D motion picture releases and conversions scheduled for fiscal 2014 ending March 31, 2014 and beyond, their commercial success and consumer preferences, that, in recent periods, have trended in favor of 2D over 3D in some motion pictures in domestic and international markets; our ability to increase our revenues and the number of RealD-enabled screens in domestic and international markets and our market share; our ability to supply our solutions to our customers on a timely basis; RealD’s relationships with its exhibitor and studio partners and the business model for 3D eyewear in North America; the progress, timing and amount of expenses associated with RealD’s research and development activities, which may increase in future periods; market and industry trends, including growth in 3D content; our plans, strategies and expected opportunities; the deployment of and demand for our products and products incorporating our technologies; RealD’s projected operating results; and competitive pressures in domestic and international cinema markets impacting license and product revenues.

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. RealD’s Annual Report on Form 10-K for the twelve months ended March 31, 2013 and other documents filed with the SEC include a more detailed discussion of the risks and uncertainties that may 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 Adjusted EBITDA and free cash flow as supplemental measures of its performance. RealD defines Adjusted EBITDA as net income (loss) plus expenses for interest, income taxes, depreciation, amortization, impairment and stock-based compensation plus net foreign exchange loss (gain) plus expenses under RealD’s Credit Agreement for the non-U.S. GAAP category “restructuring charges, severance costs and reserves.” RealD defines free cash flow as net cash provided by operating activities less total capital expenditures in a given period (e.g., purchases of cinema systems and property and equipment on a combined basis).

RealD presents 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 presents free cash flow to provide investors a metric for our capacity to generate cash from our operating and investing activities to sustain our operating activities. 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 and free cash flow are 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; and in communications with its Board of Directors concerning financial performance. Because not all companies use identical calculations, RealD’s presentation of Adjusted EBITDA and free cash flow may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as tax and debt service payments. Adjusted EBITDA also differs from the amounts calculated under the similarly titled definition in our credit agreement, which is further adjusted to reflect certain other cash and non-cash charges and is used to determine compliance with financial covenants and RealD’s ability to engage in certain activities, such as incurring additional debt and making certain restricted payments.

About RealD Inc.
RealD is a leading global licensor of 3D and other visual technologies. RealD’s extensive intellectual property portfolio is used in applications that enable a premium 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, and RealD Format technologies to consumer electronics manufacturers, content producers and distributors to enable the delivery and viewing of 3D and other premium content on a variety of visual displays and devices.

RealD was founded in 2003 and has offices in Beverly Hills, California; Boulder, Colorado; London, United Kingdom; Moscow, Russia; Shanghai, China; Hong Kong; Tokyo, Japan; and Rio de Janeiro, Brazil. For more information, please visit our website at www.reald.com.

© 2014 RealD Inc. All Rights Reserved.

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