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Point.360 Announces First Fiscal Quarter Results



               Point.360 Announces First Fiscal Quarter Results

PR Newswire

BURBANK, Calif., Nov. 8, 2012

BURBANK, Calif., Nov. 8, 2012 /PRNewswire/ -- Point.360 (NASDAQ: PTSX), a
leading provider of integrated media management services, today announced
results for the three month period ended September 30, 2012.  For the quarter,
the Company's sales were $7.7 million generating positive operating cash flow
of $0.3 million and earnings before interest, taxes, depreciation and
amortization and non-cash charges (EBITDAN) of $0.8 million for the period.

Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive
Officer said: "We continued to generate positive operating cash flow in the
first quarter of fiscal 2013. Revenues were somewhat lower than in the prior
year's first quarter due to the timing of seasonal television programming
introductions.  We expect better results now that the new television season is
underway."

Mr. Bagerdjian continued: "In the first quarter, we completed a $14.8 million
refinancing of the Company's revolving line of credit and two mortgages. The
mortgage interest savings alone will be about $360,000 per year at today's low
rates."

Revenues

Revenue for the quarter ended September 30, 2012 totaled $7.7 million compared
to $9.0 million in the same quarter last year. Declines were due primarily to
the timing of new television show introductions by a major customer.

Gross Margin

In the first quarter of fiscal 2013, gross margin was $2.7 million (35% of
sales), compared to $3.4 million (38% of sales) in the prior year's first
quarter.

Selling, General and Administrative and Other Expenses

For the first quarter of fiscal 2013, SG&A expenses were $2.9 million, or 38%
of sales, compared to $3.2 million, or 35% of sales, in the first quarter of
last year.  SG&A personnel costs have been reduced $0.3 million in the current
three month period, when compared to the prior year period. 

Interest expense was $0.2 million and $0.2 million for the three month periods
ended September 30, 2011, and 2012, respectively.

Other income in all periods includes sublease income and gain on sale of fixed
assets. In the 2012 three month period, other income also included a $332,000
discount received on the payoff of a mortgage, offset by the write offs of
$90,000 of deferred financing costs related to that mortgage and a $30,000 fee
to terminate a revolving credit agreement.

Operating Income (Loss)

Operating income was $0.2 million in the first quarter of fiscal 2013 compared
to a $0.3 million profit in last year's first quarter.

Net Income (loss)

For the first quarter of fiscal 2013, the Company reported a net loss of $0.1
million ($0.01 per share) compared to a net income of $0.1 million ($0.01 per
share) in the same period last year.

Earnings Before Interest, Taxes, Depreciation, Amortization and Non-Cash
Charges (EBITDAN)*

The following table reconciles the Company's EBITDAN to net income which is
the most directly comparable financial measure under Generally Accepted
Accounting Principles ("GAAP")

Computation of EBITDAN (unaudited)*
                                        Three Months Ended
                                        September 30,
                                        2011       2012
Net income (loss)                       $ 109,000  $ (105,000)
     Interest (net)                     229,000    168,000
     Income taxes                       -
     Depreciation & amortization        741,000    613,000
Other non-cash charges:
Bad debt expense                        9,000      7,000
 Writeoff of deferred financing credits -          90,000
Stock based compensation                85,000     42,000
EBITDAN                                 $1,173,000 $ 815,000

Consolidated Statements of Operations (unaudited) *

The table below summarizes results for the three month periods ended September
30, 2011 and 2012:

                                     Three Months Ended

                                     September 30,
                                                            
                                     2011
                                                           2012
Revenues                             $                     $          
                                      8,969,000             7,661,000
Cost of services sold                (5,526,000)           (4,953,000)
Gross profit                         3,443,000             2,708,000
Selling, general and administrative  (3,179,000)           (2,933,000)
expense
Operating Income (loss)              264,000               (225,000)
Interest expense                     (229,000)             (168,000)
Other income                         74,000                288,000
Income (loss) before income taxes    109,000               (105,000)
Provision for income taxes           -                     -
Net income (loss)                    $                     $          
                                     109,000                (105,000)
Income (loss) per share:
   Basic:
        Net income (loss)            $                     $                
                                       0.01                 (0.01)
       Weighted average number of    10,513,166            10,513,166
shares
   Diluted:
        Net income (loss)            $                     $                  
                                       0.01                (0.01)
 Weighted average number of shares
                                     10,513,166            10,513,166
             including the dilutive
effect of stock options

Selected Balance Sheet Statistics (unaudited)*

                                June 30,                September 30,

                                2012                    2012
Working Capital                 $             4,261,000 $            
                                                        3,515,000
Property and equipment, net     17,475,000              17,137,000
Total assets                    25,971,000              25,099,000
Current portion of long term    172,000                 372,000
debt
Long-term debt, net of current  9,236,000               8,287,000
portion
Shareholder's equity            10,231,000              10,168,000

*The consolidated statements of operations, computation of EBITDAN and
presentation of balance sheet statistics do not represent the results of
operations or the financial position of the Company in accordance with
generally accepted accounting principles (GAAP), and are not to be considered
as alternatives to the balance sheet, statement of income, operating income,
net income or any other GAAP measurements as an indicator of operating
performance or financial position. Not all companies calculate such statistics
in the same fashion and, therefore, the statistics may not be comparable to
other similarly titled measures of other companies.  Management believes that
these computations provide additional useful analytical information to
investors.

About Point.360

Point.360 (PTSX) is a value add service organization specializing in content
creation, manipulation and distribution processes integrating complex
technologies to solve problems in the life cycle of Rich Media. With locations
in greater Los Angeles, Point.360 performs high and standard definition audio
and video post production, creates virtual effects and archives and
distributes physical and electronic Rich Media content worldwide, serving
 studios, independent producers,  corporations, non-profit organizations and
governmental and creative agencies. Point.360 provides the services necessary
to edit, master, reformat and archive clients' audio and video content,
including television programming, feature films and movie trailers.
Point.360's interconnected facilities provide service coverage to all major
U.S. media centers.  The Company also rents and sells DVDs and video games
directly to consumers through its Movie>Q retail stores.  See www.Point360.com
and www.MovieQ.com.

Forward-looking Statements

Certain statements in Point.360 press releases may contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.  Forward-looking statements include, without limitation, statements
regarding  (i) the Company's projected revenues, earnings, cash flow and
EBITDA; (ii)  planned focus on internal growth and acquisitions; (iii)
reduction of facilities and actions to streamline operations; (iv) actions
being taken to reduce costs and improve customer service and (v) new business
and new acquisitions.  Please also refer to the risk factors described in the
Company's SEC filings, including its annual reports on Form 10-K.  Such
statements are inherently subject to known and unknown risks, uncertainties
and other factors that may cause actual results, performance or achievements
of the Company to be materially different from those expected or anticipated
in the forward-looking statements.  In addition to the factors described in
the Company's SEC filings, the following factors, among others, could cause
actual results to differ materially from those expressed herein: (a) lower
than expected net sales, operating income and earnings; (b) less than expected
growth; (c) actions of competitors including business combinations,
technological breakthroughs, new product offerings and promotional successes;
(d) the risk that anticipated new business may not occur or be delayed; (e)
the risk of inefficiencies that could arise due to top level management
changes and (f) general economic and political conditions that adversely
impact the Company's customers' willingness or ability to purchase or pay for
services from the Company.  The Company has no responsibility to update
forward-looking statements contained herein to reflect events or circumstances
occurring after the date of this release.

SOURCE Point.360

Website: http://www.point360.com
Contact: Alan Steel, Executive Vice President, +1-818-565-1444
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