Attached files
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| 8-K - 8-K - BALLANTYNE STRONG, INC. | a11-7917_18k.htm |
Exhibit 99.1
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NEWS ANNOUNCEMENT |
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Conference call: |
Tomorrow, Wednesday, March 16, 2011 at 9:00 AM ET |
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Webcast / Replay URL: |
www.earnings.com or http://www.ballantyne-strong.com/IREvents.aspx |
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The replay will be available on the Internet for 90 days. |
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Dial-in number: |
800 909 5034 (no pass code required) |
Ballantyne Q4 EPS Rose to $0.16 from $0.00 in Q4 ‘09
on 140% Increase in Net Revenues to a Record $45.3 Million
- FY ‘10 EPS Rose 293% to $0.59 as Net Revenues Rose 89% to a Record $136.3 Million -
OMAHA, Nebraska (March 15, 2011) Ballantyne Strong, Inc. (NYSE Amex: BTN), a provider of digital cinema projection equipment and services, cinema screens and other cinema products, today reported financial results for the fourth quarter (Q4) and year ended December 31, 2010.
Fourth Quarter Results
Ballantyne Strong’s net revenues rose 140% to $45.3 million, its third consecutive record quarter, as the Company achieved across-the-board, significant increases in sales of digital cinema projection equipment, cinema screens and digital cinema services. Ballantyne’s net earnings were $2.3 million, or $0.16 per diluted share, compared to a break-even quarter a year ago.
Sales of digital products rose more than five-fold to $33.3 million, compared to $6.4 million a year-ago as strong demand continued in the Americas and China given the ongoing global industry transformation to digital cinema. Ballantyne’s cinema screen equipment rose 203% to $5.9 million during Q4, reflecting continuing demand for digital 3D-compatible screens. The Company’s cinema services revenue grew to $2.6 million, from $1.1 million a year-ago.
Consolidated gross profit increased 126% to $8.0 million, or 17.7% of net revenues, compared to gross profit of $3.5 million, or 18.8% of net revenues in Q4 ‘09. The expected decline in gross profit margin reflects increased digital projection equipment sales, which carry lower margins than the majority of Ballantyne’s other products and services. SG&A was $4.3 million, compared to $3.2 million in Q4 ‘09, but these expenses dropped significantly to 9.4% of net revenues during the quarter, versus 17.2% in Q4 ‘09.
2010 Results
Net revenues rose 89.0% to $136.3 million, an all-time annual record, compared to $72.1 million a year ago. Gross profit improved 68.0% to $24.7 million, or 18.1% of net revenues, compared to gross profit of $14.7 million, or 20.4% of 2009 net revenues. Net earnings
amounted to $8.4 million, or $0.59 per diluted share, compared to net earnings of $2.1 million, or $0.15 per diluted share in 2009.
Balance Sheet Update
Ballantyne concluded 2010 with $22.3 million in cash and cash equivalents, compared to $23.6 million at December 31, 2009. The Company generated cash flow from operations of $3.6 million in 2010. Ballantyne incurred capital expenditures of $6.8 million during the year ended December 31, 2010, including $5.8 million for the recently completed purchase and expansion of its ISO:9001 cinema screen manufacturing facility and $0.5 million for the construction and installation of the Company’s state-of-the-art Digital Network Operations Center (NOC), completed October 2010. The NOC is providing 24/7 remote monitoring for digital projection equipment as well as non-cinema digital systems, located around the globe.
Commenting on the record results, President and CEO Gary L. Cavey stated, “Ballantyne achieved very strong fourth quarter and full-year operating results as we continued to capitalize on our role as a one-stop provider of digital cinema products and related services. Q4 results were paced by continued high demand for our digital projection equipment throughout the Americas and Asia — especially in China — where they continue building new digital theatres at a very rapid pace. The Company’s cinema screens and services businesses also posted a solid quarter and noteworthy twelve-month performances.
“We remain uniquely well positioned to benefit from the substantial service opportunities that the unprecedented, worldwide digital conversion activity is fostering. We are also actively seeking creative ways to further deploy Ballantyne’s cutting-edge NOC services and continuing our search for potential M&A opportunities that complement our strategy and cinema industry relationships and expertise.”
About Ballantyne Strong, Inc. (www.ballantyne-strong.com)
Ballantyne Strong is a provider of digital cinema projection equipment and services as well as cinema screens, motion picture projectors and specialty lighting equipment and services. The Company supplies major and independent theater chains, top arenas, 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-
Ballantyne Strong, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
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Three Months Ended |
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Year Ended |
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2010 |
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2009 |
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2010 |
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2009 |
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Net revenues |
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$ |
45,318,890 |
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$ |
18,847,561 |
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$ |
136,334,617 |
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$ |
72,145,757 |
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Cost of revenues |
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37,315,083 |
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15,302,474 |
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111,596,028 |
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57,413,724 |
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Gross profit |
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8,003,807 |
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3,545,087 |
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24,738,589 |
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14,732,033 |
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Selling & administrative expenses: |
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Selling |
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1,542,236 |
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959,039 |
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3,822,494 |
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2,914,019 |
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General & administrative |
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2,715,756 |
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2,274,321 |
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9,068,557 |
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8,147,861 |
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Total SG&A expenses |
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4,257,992 |
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3,233,360 |
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12,891,051 |
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11,061,880 |
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Gain (loss) on disposal or transfer of assets |
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(27,535 |
) |
(15,197 |
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150,657 |
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(16,911 |
) | ||||
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Income from operations |
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3,718,280 |
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296,530 |
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11,998,195 |
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3,653,242 |
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Interest income |
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3,286 |
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6,300 |
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20,873 |
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87,203 |
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Interest expense |
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(18,770 |
) |
(7,759 |
) |
(45,890 |
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(33,316 |
) | ||||
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Equity in income (loss) of Joint Venture |
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(220,898 |
) |
(252,440 |
) |
581,495 |
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(889,997 |
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Other expense, net |
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(55,946 |
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(37,326 |
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(163,224 |
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(67,156 |
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Earnings before income taxes |
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3,425,952 |
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5,305 |
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12,391,449 |
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2,749,976 |
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Income tax (expense) benefit |
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(1,090,181 |
) |
46,477 |
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(3,957,996 |
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(679,458 |
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Net earnings |
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$ |
2,335,771 |
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$ |
51,782 |
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$ |
8,433,453 |
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$ |
2,070,518 |
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Earnings per share |
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Basic |
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$ |
0.16 |
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$ |
0.00 |
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$ |
0.60 |
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$ |
0.15 |
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Diluted |
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$ |
0.16 |
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$ |
0.00 |
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$ |
0.59 |
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$ |
0.15 |
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Weighted average shares outstanding: |
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Basic |
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14,233,306 |
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14,022,132 |
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14,163,088 |
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14,002,985 |
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Diluted |
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14,420,154 |
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14,204,659 |
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14,371,430 |
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14,161,255 |
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Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
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Dec. 31, 2010 |
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Dec. 31, 2009 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
22,250,154 |
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$ |
23,589,025 |
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Restricted cash |
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208,855 |
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442,766 |
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Accounts receivable, net |
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16,379,492 |
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8,877,980 |
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Unbilled revenue |
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7,057,331 |
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1,894,075 |
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Inventories, net |
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27,940,237 |
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12,987,048 |
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Recoverable income taxes |
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4,930 |
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1,850,699 |
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Deferred income taxes |
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2,127,911 |
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1,943,679 |
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Consignment inventory |
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662,795 |
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486,527 |
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Other current assets |
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2,780,517 |
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667,592 |
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Total current assets |
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79,412,222 |
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52,739,391 |
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Investment in joint venture |
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2,070,576 |
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2,216,638 |
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Property, plant and equipment, net |
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9,750,047 |
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3,612,935 |
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Intangible assets, net |
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700,888 |
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1,103,128 |
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Other assets |
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22,000 |
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17,257 |
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Deferred income taxes |
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75,698 |
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520,951 |
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Total assets |
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$ |
92,031,431 |
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$ |
60,210,300 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
30,751,310 |
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$ |
9,768,896 |
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Other accrued expenses |
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3,889,836 |
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3,623,143 |
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Customer deposits |
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2,849,555 |
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2,295,946 |
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Income tax payable |
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1,520,769 |
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1,246,247 |
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Total current liabilities |
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39,011,470 |
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16,934,232 |
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Deferred income taxes |
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266,439 |
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274,977 |
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Other accrued expenses, net of current portion |
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376,703 |
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483,425 |
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Total liabilities |
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39,654,612 |
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17,692,634 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, par value $.01 per share; Authorized 1,000,000 shares, none outstanding |
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— |
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— |
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Common stock, par value $.01 per share; Authorized 25,000,000 shares; issued 16,453,140 shares at 12/31/10 and 16,283,676 shares at 12/31/09 |
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164,531 |
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162,836 |
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Additional paid-in capital |
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36,241,154 |
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35,332,787 |
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Accumulated other comprehensive income (loss): |
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Foreign currency translation |
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259,833 |
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(286,086 |
) | ||
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Minimum pension liability |
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80,384 |
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110,665 |
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Retained earnings |
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31,013,597 |
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22,580,144 |
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67,759,499 |
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57,900,346 |
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Less 2,139,982 of common shares in treasury, at cost |
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(15,382,680 |
) |
(15,382,680 |
) | ||
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Total stockholders’ equity |
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52,376,819 |
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42,517,666 |
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Total liabilities and stockholders’ equity |
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$ |
92,031,431 |
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$ |
60,210,300 |
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Selected Cash Flow Statement Items (unaudited):
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Twelve Months Ended |
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2010 |
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2009 |
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Net earnings |
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$ |
8,433,453 |
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$ |
2,070,518 |
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Depreciation and amortization |
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1,490,246 |
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1,752,550 |
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Equity in (income) loss of joint venture |
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(581,495 |
) |
889,997 |
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Net cash provided by operating activities |
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3,643,232 |
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2,367,167 |
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Capital expenditures |
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(6,811,667 |
) |
(907,659 |
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Proceeds from sales of investments in securities |
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— |
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10,025,000 |
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Net cash (used in) provided by investing activities |
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(5,659,451 |
) |
9,378,295 |
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Net increase (decrease) in cash & cash equivalents |
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(1,338,871 |
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12,164,041 |
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Cash & cash equivalents at beginning of period |
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23,589,025 |
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11,424,984 |
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Cash & cash equivalents at end of period |
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$ |
22,250,154 |
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$ |
23,589,025 |
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CONTACT:
|
Kevin Herrmann |
Robert Rinderman, David Collins |
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Chief Financial Officer |
Jaffoni & Collins Incorporated |
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402/453-4444 |
212/835-8500; btn@jcir.com |
# # #