EX-99.1 2 a09-18572_2ex99d1.htm EX-99.1

Exhibit 99.1

 

 

NEWS ANNOUNCEMENT

 

FOR IMMEDIATE RELEASE

 

Conference call:

 

Today, Friday, August 7, 2009 at 10:00 a.m. ET

Webcast / Replay URL:

 

www.earnings.com or http://www.ballantyne-strong.com/IREvents.aspx

 

 

The replay will be available on the Internet for 90 days.

Dial-in number:

 

800-734-8507 (no pass code required)

 

Ballantyne Q2 Net Revenues Rise 44% to $19.6 Million

and EPS Rises to $0.07 From Year-Ago Loss of ($0.01)

 

OMAHA, Nebraska (August 7, 2009) Ballantyne Strong, Inc. (NYSE Amex: BTN), formally known as Ballantyne of Omaha, Inc., a provider of motion picture projection, digital cinema and cinema screen equipment and cinema services, today reported improved financial results for the second quarter (Q2) ended June 30, 2009.

 

Q2 2009 net revenues rose 44% to $19.6 million from net revenues of $13.6 million in Q2 2008.  Net income increased to $0.9 million, or $0.07 per diluted share, in Q2 2009 compared to a net loss of $0.1 million, or ($0.01) per diluted share, a year-ago.

 

Digital projection equipment sales increased to $10.0 million in Q2 2009 compared to $2.6 million a year ago, reflecting global demand for systems used to deliver a 3-D cinema experience.  In addition, sales of cinema screens rose to $3.1 million versus $1.1 million in Q2 2008, largely reflecting continued strong demand for specialty “silver” screens used for 3-D digital cinema.  A year-over-year increase in cinema service revenues also contributed to the improved sales results.

 

Q2 2009 gross profit increased to $4.3 million, or 21.7% of net revenues, compared to Q2 2008’s gross profit of $2.0 million, or 15.0% of net revenues.  The increase in gross profit reflected higher cinema screen and digital projection sales as well as a margin improvement in the Company’s cinema service business.

 

SG&A in Q2 2009 increased to $2.6 million compared to $2.4 million in the year ago period yet declined as a percentage of revenue to 13.5% in Q2 2009 from 17.4% in Q2 2008.  The decline as a percentage of revenues resulted from the impact of higher sales volume on fixed expenses.  The increase in expenses primarily reflects higher insurance costs due to increased business volume, higher non-cash stock compensation expense and expenses related to the Company’s office in Beijing, China which was not open a year-ago.

 

Six Month Results

 

For the six-month period ended June 30, 2009, net revenues rose 32% to $36.7 million compared to $27.8 million a year ago.  Gross profit in the first half of 2009 was $7.6 million, or

 


 

20.8% of net revenues, compared to first half 2008 gross profit of $4.4 million, or 15.7% of net revenues.  Net income for the first six months of 2009 was $1.5 million, or $0.10 per diluted share, compared to a net loss of $0.4 million, or $(0.03) per diluted share, in the first half of 2008.

 

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “Following our improved performance last quarter, Ballantyne again delivered additional growth in revenue and net income.  Our results so far in 2009 reflect growing industry demand for digital cinema projection products and services, particularly as exhibitors seek to capitalize on the growing availability of, and consumer demand for, 3-D content.  The strength of our digital projection equipment sales in the quarter reflect the sale of 100 digital projectors to China Film Group, coupled with active demand from a number of independent chains in the US as well as increased sales in Latin America.  In addition, our Strong/MDI screen business delivered substantial growth in the period, reflecting ongoing 3-D related demand.

 

“We are confident that the industry’s transition to digital projection equipment will continue throughout 2009.  We believe Ballantyne is well positioned to participate in this global trend given our wide array of high quality products and our reputation for the best in customer service.  We are also excited about the substantial services opportunity as digital cinema deployments continue to ramp up.  Our services group has one of the largest and best trained teams of digital projection technicians in North America, putting us in a leadership position to support large and small customers with their installation, service and maintenance needs.”

 

Balance Sheet Update:

 

As previously reported, during Q2 2009 Ballantyne redeemed all of its remaining outstanding AAA-rated Auction Rate Securities (ARS) at par value, yielding total cash proceeds of approximately $9.4 million. Reflecting these proceeds, coupled with $0.6 million of ARS redemptions at par value from other means, Ballantyne’s cash and cash equivalents rose to $21.2 million from $11.4 million at the end of fiscal year 2008.

 

About Ballantyne Strong, Inc.

 

Ballantyne is a provider of motion picture projection, digital cinema projection and specialty lighting equipment and services.  The Company supplies major theater chains, top arenas, television and motion picture production studios, theme parks and architectural sites around the world.  For more information visit www.ballantyne-strong.com.

 

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-

 

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Ballantyne Strong, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

(unaudited)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

19,602,707

 

$

13,643,104

 

$

36,746,160

 

$

27,840,276

 

Cost of revenues

 

15,350,114

 

11,593,249

 

29,114,497

 

23,480,540

 

Gross profit

 

4,252,593

 

2,049,855

 

7,631,663

 

4,359,736

 

 

 

 

 

 

 

 

 

 

 

Selling & administrative Expenses:

 

 

 

 

 

 

 

 

 

Selling

 

767,791

 

742,718

 

1,436,190

 

1,530,520

 

General & administrative

 

1,875,652

 

1,634,972

 

3,952,312

 

3,660,268

 

Total SG&A expense

 

2,643,443

 

2,377,690

 

5,388,502

 

5,190,788

 

Gain on sale of assets

 

—

 

258,170

 

—

 

258,170

 

Loss on disposal of assets

 

(1,943

)

—

 

(1,943

)

(1,285

)

Income (loss) from operations

 

1,607,207

 

(69,665

)

2,241,218

 

(574,167

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

29,404

 

129,350

 

70,534

 

275,536

 

Interest expense

 

(9,328

)

(9,163

)

(17,441

)

(17,698

)

Equity in loss of Joint Venture

 

(233,625

)

(184,909

)

(418,137

)

(297,900

)

Other income (expense) net

 

(68,333

)

19,882

 

112,904

 

46,674

 

Income (loss) before income

 

1,325,325

 

(114,505

)

1,989,078

 

(567,555

)

Income tax (expense) benefit

 

(391,404

)

5,576

 

(513,438

)

193,038

 

Net income (loss)

 

$

933,921

 

$

(120,081

)

$

1,475,640

 

$

(374,517

)

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

$

(0.01

)

$

0.11

 

$

(0.03

)

Diluted

 

$

0.07

 

$

(0.01

)

$

0.10

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares

 

 

 

 

 

 

 

 

 

Basic

 

13,995,286

 

13,890,882

 

13,991,766

 

13,874,661

 

Diluted

 

14,138,239

 

13,890,882

 

14,127,450

 

13,874,661

 

 

-tables follow-

 

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Selected Balance Sheet Items:

 

 

 

June 30,
2009

 

December 31,
2008

 

 

 

(unaudited)

 

 

 

Cash and cash equivalents

 

$

21,168,964

 

$

11,424,984

 

Restricted cash

 

702,158

 

701,498

 

Accounts receivable and unbilled revenue, net

 

13,585,393

 

7,038,258

 

Inventories, net

 

8,950,484

 

9,476,687

 

Long-term investments in securities, net

 

—

 

8,883,420

 

Total current liabilities

 

15,739,812

 

10,960,830

 

Total stockholders’ equity

 

$

41,354,455

 

$

38,834,639

 

 

Selected Cash Flow Statement Items (unaudited):

 

 

 

Six Months Ended
June 30,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net income (loss)

 

$

1,475,640

 

$

(374,517

)

Depreciation and amortization

 

923,206

 

1,265,601

 

Equity in loss in Digital Link II Joint Venture

 

418,137

 

297,900

 

Net cash provided by (used in) operating activities

 

73,328

 

(439,845

)

Capital expenditures

 

(457,146

)

(492,115

)

Proceeds from redemptions of investment securities

 

10,025,000

 

1,225,000

 

Net cash provided by investing activities

 

9,576,617

 

936,880

 

Net increase in cash & cash equivalents

 

9,743,980

 

643,728

 

Cash & cash equivalents at beginning of period

 

11,424,984

 

4,220,355

 

Cash & cash equivalents at end of period

 

$

21,168,964

 

$

4,864,083

 

 

CONTACT:

 

 

Kevin Herrmann

 

David Collins, Ratula Roy

Chief Financial Officer

 

Jaffoni & Collins Incorporated

402/453-4444

 

212/835-8500; btn@jcir.com

 

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