Point.360

CIK:0001398797|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Revenues	$ 6,656,000	$ 8,874,000	$ 21,227,000	$ 29,328,000
Cost of services sold	(5,462,000)	(7,153,000)	(18,038,000)	(22,510,000)
Gross profit	1,194,000	1,721,000	3,189,000	6,818,000
Selling, general and administrative expense	(3,372,000)	(4,104,000)	(11,371,000)	(13,210,000)
Impairment of long lived assets	(361,000)	0	(361,000)	0
Operating loss	(2,539,000)	(2,383,000)	(8,543,000)	(6,392,000)
Interest expense	(146,000)	(151,000)	(468,000)	(366,000)
Gain on bargain asset purchase	0	0	0	4,099,000
Other income	247,000	241,000	620,000	728,000
Income (loss) before income taxes	(2,438,000)	(2,293,000)	(8,391,000)	(1,931,000)
Income tax (expense) - current	0	0	0	(5,000)
Income tax benefit - deferred	0	0	0	2,714,000
Net income (loss)	$ (2,438,000)	$ (2,293,000)	$ (8,391,000)	$ 778,000
Net income (loss)	$ (0.19)	$ (0.18)	$ (0.66)	$ 0.06
Weighted average number of shares	12,740,506	12,611,550	12,719,229	12,503,685
Net income (loss)	$ (0.19)	$ (0.18)	$ (0.66)	$ 0.06
Weighted average number of shares including the dilutive effect of stock options	12,740,506	12,611,550	12,719,229	13,128,504

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ (8,391,000)	$ 778,000
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Gain on bargain asset purchase	0	(4,099,000)
Impairment of long lived assets	361,000	0
Income tax benefit - deferred	0	(2,714,000)
Depreciation and amortization	1,638,000	1,590,000
Amortization of deferred gain on real estate	(179,000)	(133,000)
Amortization of deferred lease credit	(157,000)	(157,000)
Provision for doubtful accounts	18,000	(153,000)
Stock compensation expense	266,000	226,000
Issuance of common stock	54,000	54,000
Changes in operating assets and liabilities:
Decrease in accounts receivable	649,000	482,000
Decrease in inventories	6,000	65,000
(Increase) decrease in prepaid expenses and other current assets	64,000	(388,000)
(Increase) in other assets	(129,000)	(170,000)
(Increase) in deferred tax asset	0	(305,000)
Increase (decrease) in accounts payable	1,333,000	(34,000)
(Decrease) in accrued wages and benefits	(962,000)	(42,000)
Increase (decrease) in other accrued expenses	(39,000)	111,000
Increase in other liabilities	54,000	0
Increase in deferred taxes payable	0	305,000
Net cash used in operating activities	(5,414,000)	(4,584,000)
Cash flows from investing activities:
Proceeds from sale of fixed assets	9,800,000	0
Capital expenditures	(1,685,000)	(782,000)
Net cash provided by (used in) investing activities	8,115,000	(782,000)
Cash flows from financing activities:
Borrowings from revolving credit agreement	1,701,000	923,000
Borrowings of notes payable	330,000	5,000,000
Repayment of notes payable	(4,718,000)	(166,000)
Acquisition (repayment) of capital lease obligations	46,000	(53,000)
Net cash provided by (used in) financing activities	(2,641,000)	5,704,000
Net increase in cash and cash equivalents	60,000	338,000
Cash and cash equivalents at beginning of period	49,000	22,000
Cash and cash equivalents at end of period	109,000	360,000
Cash payments for income taxes (net of refunds)	0	5,000
Cash payments for interest	223,000	305,000
Assets acquired under capital lease	138,000	119,000
Purchase of assets for common stock and warrants	0	1,417,000
Non-cash deferred interest expense	$ 0	$ 165,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 109,000	$ 49,000
Accounts receivable, net of allowances for doubtful accounts of $293 and $311, respectively	4,062,000	4,729,000
Inventories, net	121,000	127,000
Prepaid expenses and other current assets	451,000	498,000
Total current assets	4,743,000	5,403,000
Property and equipment, net	5,098,000	13,924,000
Other assets, net	1,297,000	1,215,000
Total assets	11,138,000	20,542,000
Current liabilities:
Current portion of notes payable	2,126,000	5,142,000
Current portion of capital lease obligations	99,000	102,000
Accounts payable	2,170,000	838,000
Accrued wages and benefits	1,095,000	2,057,000
Other accrued expenses	149,000	188,000
Current portion of deferred gain on sale of real estate	345,000	178,000
Current portion of deferred lease incentive	209,000	209,000
Total current liabilities	6,193,000	8,714,000
Notes payable, less current portion	6,215,000	5,868,000
Capital lease obligations, less current portion	128,000	79,000
Deferred gain on sale of real estate, less current portion	1,617,000	668,000
Deferred lease incentive, less current portion	626,000	783,000
Total long-term liabilities	8,586,000	7,398,000
Total liabilities	14,779,000	16,112,000
Commitments and contingencies (Note 5)
Shareholders’ equity:
Preferred stock - no par value; 5,000,000 shares authorized; none issued and outstanding	0	0
Common stock - no par value; 50,000,000 shares authorized; 12,630,506 and 12,740,506 shares issued and outstanding on June 30, 2016 and March 31, 2017, respectively	22,978,000	22,924,000
Additional paid-in capital	12,182,000	11,916,000
Accumulated deficit	(38,801,000)	(30,410,000)
Total shareholders’ equity	(3,641,000)	4,430,000
Total liabilities and shareholders’ equity	$ 11,138,000	$ 20,542,000