8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

March 11, 2005

Date of Report (Date of earliest event reported)

BALLANTYNE OF OMAHA, INC.

(Exact name of registrant as specified in its charter)

Delaware	1-13906	47-0587703
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation)	File Number)	Identification No.)
4350 McKinley Street
Omaha, Nebraska		68112
(Address of principal executive offices)		(Zip Code)

(402) 453-4444

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Form 8-K

Item 2.02Results of Operations and Financial Condition

Ballantyne of Omaha, Inc. (the “Company”) issued a press release on March 11, 2005 with earnings information on the Company’s quarter and year ended December 31, 2004. The press release is furnished with this Form 8-K as Exhibit 99.1.

Item 9.01Financial Statements and Exhibits

99.1 Press Release, dated March 11, 2005, issued by the Company.

The information contained in this Current Report under Item 2.02, including the exhibit referenced in Item 9.01, is being “furnished” pursuant to “Item 2.02 Results of Operations and Financial Condition” of Form 8-K and, as such, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BALLANTYNE OF OMAHA, INC.
Date: May 10, 2005	By:	/s/ Brad French
		Brad French
		Secretary/Treasurer and
		Chief Financial Officer

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EX-99.1

Exhibit 99.1

NEWS ANNOUNCEMENT	FOR IMMEDIATE RELEASE
CONTACT:
Brad French	Stewart Lewack, Joseph Jaffoni
Chief Financial Officer	Jaffoni & Collins Incorporated
402/453-4444	212/835-8500; btne@jcir.com

BALLANTYNE OF OMAHA REPORTS FOURTH QUARTER

AND YEAR-END RESULTS

- 2004 Revenues Increase 31% to $49.1 Million;

Net Income Rises to $5.1 Million or $0.37 Per Diluted Share -

OMAHA, Nebraska (March 11, 2005) Ballantyne of Omaha, Inc. (Amex: BTN), a manufacturer of motion picture projection and specialty lighting equipment, today reported financial results for the three- and twelve-month periods ended December 31, 2004.

Net revenues in 2004 rose 31% to approximately $49.1 million from $37.4 million in 2003.  The revenue increase reflects a 32% increase in sales of Ballantyne’s theater equipment, as well as the recognition of $2.1 million in revenues related to the previously announced sale of large-format projectors and associated equipment to a theme park in China.

Gross profit in 2004 rose 57% to $13.5 million, or 27.5% of revenues, from $8.6 million, or 23.0% of revenues, in 2003.  The year-over-year increase in the gross profit margin reflects higher sales volume and the Company’s ability to achieve efficiencies in the manufacturing process, partially offset by higher cost of sales associated with the large format projector sale to the theme park in China.

Net income in 2004 increased to $5.1 million, or $0.37 per diluted share, compared to net income of approximately $0.6 million, or $0.04 per diluted share, in 2003.  In addition to the increase in gross profit, the results for the 2004 period also reflect an income tax benefit of $1.2 million for the reversal of certain deferred tax valuation allowances.  Per share results are based on a weighted average number of shares outstanding of 13,608,876 and 13,186,968 for 2004 and 2003, respectively.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “Ballantyne saw increased demand for its theater products across all product categories during 2004, from complete projection systems to individual components such as replacement parts, xenon bulbs and lenses.  We believe this demand continues to reflect the improved economic health of theater exhibition customers who continue to expand or upgrade their theater circuits, as well as a larger installed base of our equipment in service.

-more-

Net revenues for the three months ended December 31, 2004 rose 31% to approximately $14.5 million from $11.1 million in the year-ago period.  Gross profit in the 2004 fourth quarter rose 43% to $3.8 million, or 26.3% of revenues, from $2.7 million, or 24.1% of revenues, in the year-ago quarter.

Net income for the fourth quarter of 2004 rose to approximately $1.2 million, or $0.09 per diluted share, compared to net income of $0.2 million, or $0.02 per diluted share, in the fourth quarter of 2003.  Per share results are based on a weighted average number of shares outstanding of 13,703,081 and 13,146,516 for the fourth quarters of 2004 and 2003, respectively.

Mr. Wilmers continued, “Over the past two years, we have worked hard to achieve productivity gains and operate our business for maximum profit.  We increased the gross margin during this period from 16.6% in 2002, excluding discontinued operations, to 27.5% in 2004 by achieving higher sales volume, increased labor productivity and other manufacturing efficiencies.  By prudently managing selling, administrative and other corporate expenses along with these productivity gains, we transformed a 31% revenue increase from 2003 to 2004 into a more than five-fold increase in income from operations and a more than eight-fold increase in net income.

“We enter 2005 in strong financial shape with over $14 million in cash, negligible debt and the financial flexibility to continue pursuing new growth initiatives throughout the coming year.  The theater exhibition industry is expected to continue to improve in 2005 and, as such, we expect our sales and profits to improve through an increase in projector unit shipments over 2004 levels and continued operating leverage gained through manufacturing efficiencies.  Our strategic focus will be on further diversifying our revenue base through the development of new product lines and through strategic acquisitions.”

About Ballantyne of Omaha

Ballantyne is a leading U.S. supplier of commercial motion picture and specialty projection equipment utilized by major theater chains and location-based entertainment providers.  The Company also manufactures specialty entertainment lighting products used at top arenas, television and motion picture production studios, theme parks and architectural sites around the world.

Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties.  The potential risks and uncertainties include but are not limited to quarterly fluctuations in results; customer demand for the Company’s products; the development of new technology for alternate means of motion picture presentation; domestic and international economic conditions; the management of growth; and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings.  Actual results may differ materially from management’s expectations stated or implied by such forward-looking statements.

-tables follow-

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Ballantyne of Omaha, Inc. and Subsidiaries

Consolidated Statements of Operations

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2004			2003			2004			2003
	(Unaudited)						(Unaudited)
Net revenues	$	14,513,617		$	11,052,041		$	49,144,510		$	37,433,286
Cost of revenues	10,698,153			8,383,174			35,629,838			28,817,635
Gross profit	3,815,464			2,668,867			13,514,672			8,615,651
Selling & administrative expenses:
Selling	995,347			673,928			3,126,174			3,209,321
Administrative	1,055,663			1,420,584			4,605,220			4,430,137
Total selling & administrative exp.	2,051,010			2,094,512			7,731,394			7,639,458
Income from operations	1,764,454			574,355			5,783,278			976,193
Other income (expense), net	(47,297		)	(106,658		)	13,563			49,916
Income before interest and taxes	1,717,157			467,697			5,796,841			1,026,109
Net interest income	45,955			844			94,672			47,872
Income before income taxes	1,763,112			468,541			5,891,513			1,073,981
Income tax expense	(534,232		)	(246,637		)	(818,184		)	(495,471		)
Net income	$	1,228,880		$	221,904		$	5,073,329		$	578,510
Earnings per share
Basic	$	0.09		$	0.02		$	0.40		$	0.05
Diluted	$	0.09		$	0.02		$	0.37		$	0.04
Weighted average shares outstanding:
Basic	12,943,245			12,629,990			12,828,096			12,637,880
Diluted	13,703,081			13,146,516			13,608,876			13,186,968

-tables follow-

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Selected Balance Sheet Items:

	December 31, 2004		December 31, 2003
	(Unaudited)
Cash and cash equivalents	$	14,031,984	$	8,761,568
Accounts receivable, net	6,159,764		6,698,725
Inventories, net	12,173,966		12,459,852
Current portion of long-term debt	25,935		24,253
Long-term debt	42,370		68,306
Accounts payable and accrued expenses	7,077,303		7,797,284
Total stockholders’ equity	$	34,523,438	$	29,089,089

Selected Cash Flow Statement Items:

	Twelve Months Ended December 31,
	2004			2003
	(Unaudited)
Net income	$	5,073,329		$	578,510
Depreciation and amortization	1,082,360			1,203,939
Net cash provided by operating activities	5,905,440			2,044,818
Capital expenditures	(1,131,792		)	(406,717		)
Net cash used in investing activities	(818,543		)	(116,717		)
Net cash provided by financing activities	183,519			84,225
Net cash contributed to continuing operations from discontinued operations	¾			473,231
Net increase in cash & cash equivalents	5,270,416			2,485,557
Cash & cash equivalents at beginning of year	8,761,568			6,276,011
Cash & cash equivalents at end of year	$	14,031,984		$	8,761,568

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