EX-99.1 2 a05-13691_1ex99d1.htm 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 2005 SECOND QUARTER RESULTS

 

- Revenues Increase 12% to $13.0 Million, Net Income Rises 26% to $1.1 Million -

 

OMAHA, Nebraska (July 27, 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 six-month periods ended June 30, 2005.

 

Net revenues for the three-month period ended June 30, 2005 rose 12% to approximately $13.0 million from $11.7 million in the comparable year-ago period.  The net revenue increase reflects higher demand from motion picture exhibitors for the Company’s theater products and increased sales of Xenon replacement bulbs.

 

Gross profit in the second quarter of 2005 rose 14% to $3.7 million, or 28.3% of net revenues, from $3.2 million, or 27.8% of net revenues, in the second quarter of 2004.  Gross profit margin in the 2005 period reflects continuing efficiencies in the manufacturing process, offset by increased sales of lower margin Xenon lamps and lower sales of higher margin replacement parts.

 

Net income in the 2005 second quarter increased 26% to $1,061,261, or $0.08 per diluted share, compared to net income of $845,315, or $0.06 per diluted share, in the 2004 second quarter.  Per share results are based on a weighted average number of diluted shares outstanding of 13,886,873 and 13,560,628 for the second quarters of 2005 and 2004, respectively.

 

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “Overall demand for our projection equipment and related theater products remained strong in the second quarter and on track to meet our full-year expectations.  Replacement parts sales of $1.8 million were lower compared to the year-ago level, but rose from the $1.7 million level we recorded in the 2005 first quarter, as we predicted.  Sales of Xenon lamps increased to $1.3 million, while sales to foreign customers remained flat, compared to year-ago levels.”

 

-more-

 


 

“During the second quarter, we entered into a definitive agreement with NEC Solutions (America), Inc. to distribute its full line of digital cinema and in-theater advertising products.  NEC products are well-regarded in the motion picture exhibition industry and their status as one of three licensees of the Texas Instruments’ DLP digital cinema technology makes them an ideal partner for our market reach and distribution network.”

 

“Although we do not expect to generate material revenue from this agreement in 2005, we believe the relationship importantly positions Ballantyne with an attractive partner for the motion picture industry’s eventual transition to digital cinema.  Our long-term goal is to advance our relationship with NEC so that Ballantyne participates, to the greatest extent possible, in the manufacture of NEC’s next-generation of digital cinema products for the commercial exhibition market, due in 2006.  This will maximize our investment in the manufacturing process and ultimately achieve a higher return for our shareholders.”

 

For the six-month period ended June 30, 2005, net revenues rose 11% to approximately $25.6 million from approximately $23.0 million in the comparable year-ago period.  Gross profit in the first half of 2005 rose 11% to $7.1 million, or 27.7% of net revenues, from $6.4 million, or 27.9% of net revenues, in the first six months of 2004.  Net income in the first six months of 2005 increased 18% to approximately $2.0 million, or $0.14 per diluted share, compared to net income of approximately $1.7 million, or $0.13 per diluted share, in year ago period.  Per share results are based on a weighted average number of diluted shares outstanding of 13,865,167 and 13,543,569 for the first six months of 2005 and 2004, respectively.

 

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, including but 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.

 

-tables follow-

 

2


 

Ballantyne of Omaha, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

13,041,594

 

$

11,657,967

 

$

25,553,463

 

22,955,379

 

Cost of revenues

 

9,354,602

 

8,420,804

 

18,471,880

 

16,560,482

 

Gross profit

 

3,686,992

 

3,237,163

 

7,081,583

 

6,394,897

 

 

 

 

 

 

 

 

 

 

 

Selling & administrative expenses:

 

 

 

 

 

 

 

 

 

Selling

 

616,497

 

627,385

 

1,355,909

 

1,371,432

 

Administrative

 

1,423,124

 

1,313,536

 

2,617,536

 

2,344,734

 

Total selling & administrative exp.

 

2,039,621

 

1,940,921

 

3,973,445

 

3,716,166

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

1,647,371

 

1,296,242

 

3,108,138

 

2,678,731

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(9,387

)

20,469

 

(38,906

)

(19,482

)

 

 

 

 

 

 

 

 

 

 

Income before interest and taxes

 

1,637,984

 

1,316,711

 

3,069,232

 

2,659,249

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

86,558

 

17,248

 

150,054

 

18,607

 

Income before income taxes

 

1,724,542

 

1,333,959

 

3,219,286

 

2,677,856

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

(663,281

)

(488,644

)

(1,216,111

)

(977,546

)

Net income

 

$

1,061,261

 

$

845,315

 

$

2,003,175

 

1,700,310

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

$

0.07

 

$

0.15

 

0.13

 

Diluted

 

$

0.08

 

$

0.06

 

$

0.14

 

0.13

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

13,218,957

 

12,812,270

 

13,135,310

 

12,767,265

 

Diluted

 

13,886,873

 

13,560,628

 

13,865,167

 

13,543,569

 

 

-tables follow-

 

3


 

Selected Balance Sheet Items:

 

 

 

June 30,
2005

 

December 31,
2004

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

16,603,484

 

$

14,031,984

 

Accounts receivable, net

 

6,025,878

 

6,159,764

 

Inventories, net

 

12,197,722

 

12,173,966

 

Current portion of long-term debt

 

26,831

 

25,935

 

Long-term debt

 

28,725

 

42,370

 

Accounts payable and accrued expenses

 

6,709,165

 

7,077,303

 

Total stockholders’ equity

 

$

37,263,548

 

$

34,523,438

 

 

Selected Cash Flow Statement Items (unaudited):

 

 

 

Six Months Ended
June 30,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net income

 

$

2,003,175

 

$

1,700,310

 

Depreciation and amortization

 

583,605

 

563,912

 

Net cash provided by operating activities

 

2,375,431

 

4,632,808

 

Capital expenditures

 

(538,117

)

(519,088

)

Net cash used in investing activities

 

(528,117

)

(518,288

)

Net cash provided by financing activities

 

724,186

 

56,806

 

Net increase in cash & cash equivalents

 

2,571,500

 

4,171,326

 

Cash & cash equivalents at beginning of period

 

14,031,984

 

8,761,568

 

Cash & cash equivalents at end of period

 

$

16,603,484

 

$

12,932,894

 

 

# # #

 

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