News Feed Item

Ballantyne Reports Financial Results for First Quarter of 2014

Ballantyne Strong, Inc. (NYSE MKT: BTN):

Conference call:   Today – May 8 at 11:00 a.m. ET
Webcast / Replay URL:

http://www.strong-world.com (Investor Relations section)

The replay will be available on the Internet for 90 days.
Dial-in number:   800-762-8795 ; conference ID 4681716 or “Ballantyne Strong”

Ballantyne Strong, Inc. (NYSE MKT: BTN), a diversified provider of digital technology services, products and solutions, today reported financial results for the first quarter ended March 31, 2014.

Net revenues were $22.0 million in the first quarter of 2014, compared with $27.6 million in the same period of the prior year. Net loss totaled $0.6 million, or ($0.04) per share, in the first quarter of 2014, compared with net income of $0.6 million, or $0.04 per diluted share, in the same period of the prior year.

Gary L. Cavey, President and CEO of Ballantyne Strong, commented, “Although total revenues were impacted by seasonal weakness in the first quarter, we are very pleased with the improvement we are seeing in gross margin as a result of the growth in our Managed Services segment. For the first quarter of 2014, Managed Services increased to 38% of our total revenue, up from 9% in the same period of the prior year. This helped drive a nearly five percentage point improvement in our gross margin to 19.1%.

“We continue to introduce new products that will drive organic revenue growth. We recently introduced our Integrated Cyber Screens, a new line of smaller motorized screens that will enable us to offer our world-class big screen quality to the professional audiovisual market for the first time. The Integrated Cyber series is designed for use in smaller venues such as conference rooms, media rooms, museums, schools and worship facilities. This new product line will open up an entirely new market for us that we believe can help drive continued growth in our screen business in the years ahead,” said Mr. Cavey.

Q1 2014 Financial Summary

Managed Services revenues were $8.4 million in the first quarter of 2014, compared with $2.5 million in the same period of the prior year. The increase is attributable to the acquisition of Convergent Media Systems.

Systems Integration revenues were $14.0 million in the first quarter of 2014, compared with $25.5 million in the same period of the prior year. The decline is primarily attributable to the continued softening in demand as the cinema industry’s shift to a digital equipment platform.

Consolidated gross profit was $4.2 million in the first quarter of 2014, compared with $3.9 million in the same quarter of the prior year. Gross margin was 19.1% in the first quarter of 2014, compared with 14.2% in the same quarter of the prior year. The improvement in gross margin was primarily attributable to a higher contribution of Managed Services revenue within the overall sales mix.

Selling, general and administrative expenses (SG&A) were $5.4 million in the first quarter of 2014, compared with $3.4 million in the same quarter of the prior year. The increase in SG&A was attributable to the addition of Convergent’s operations.

Balance Sheet and Cash Flow Update

Ballantyne’s cash and cash equivalents balance at March 31, 2014 was $25.5 million, a decrease from $28.8 million at the end of the prior quarter. The decrease in cash and cash equivalents balance was primarily attributable to a decrease in accounts payable.

About Ballantyne Strong, Inc. (www.strong-world.com)

Ballantyne Strong designs, integrates, and installs technology solutions for a broad range of applications; develops and delivers out-of-home messaging, advertising and communications; manufactures projection screens and lighting products; and provides managed services including monitoring of networked equipment. The Company focuses on serving the retail, financial, government and cinema markets.

Forward-Looking Statements

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
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2014 and 2013
(In thousands, except per share data)
    2014       2013  
Net product sales $ 14,834 $ 25,196
Net service revenues   7,187     2,425  
Total net revenues   22,021     27,621  
Cost of products sold 12,450 21,593
Cost of services   5,355     2,114  
Total cost of revenues   17,805     23,707  
Gross profit 4,216 3,914
Selling and administrative expenses:
Selling 1,546 866
Administrative   3,893     2,501  
Total selling and administrative expenses 5,439 3,367
Gain (loss) on sale or disposal of assets   7     2  
Income (loss) from operations (1,216 ) 549
Equity in income (loss) of joint venture 95 (106 )
Other income (expense):
Interest income 177 22
Interest expense (9 ) (7 )
Other income (expense), net   209     248  
Total other income (expense)   377     263  
Earnings (loss) before income taxes (744 ) 706
Income tax benefit (expense)   150     (141 )
Net earnings (loss) $ (594 ) $ 565  
Basic earnings (loss) per share $ (0.04 ) $ 0.04  
Diluted earnings (loss) per share $ (0.04 ) $ 0.04  
Weighted average shares outstanding:
Basic   14,026     13,979  
Diluted   14,026     14,023  
Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
  March 31,   December 31,
  2014     2013  
Current assets:
Cash and cash equivalents $ 25,491 $ 28,791
Accounts receivable (net of allowance for doubtful accounts of $759 and $703, respectively) 16,511 20,047
Finished goods, net 10,597 10,949
Work in process 359 345
Raw materials and components, net   4,304     3,891  
Total inventories, net 15,260 15,185
Recoverable income taxes 3,445 2,207
Other current assets   5,500     5,873  
Total current assets 66,207 72,103
Property, plant and equipment (net of accumulated depreciation of $5,007 and $4,781, respectively) 14,202 14,721
Note receivable 2,611 2,497
Intangible assets, net 939 895
Goodwill 1,080 1,123
Other assets   3,672     4,105  
Total assets $ 88,711   $ 95,444  
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 9,483 $ 12,844
Accrued expenses 4,962 6,236
Customer deposits/deferred revenue 3,621 3,474
Income tax payable   496     888  
Total current liabilities 18,562 23,442
Deferred revenue 2,643 3,008
Deferred income taxes 755 790
Other accrued expenses, net of current portion   1,781     1,748  
Total liabilities 23,741 28,988
Stockholders’ equity:
Preferred stock, par value $.01 per share; Authorized 1,000 shares, none outstanding
Common stock, par value $.01 per share; Authorized 25,000 shares; issued 16,869 shares at March 31, 2014 and December 31, 2013, respectively; 14,138 shares outstanding at March 31, 2014 and December 31, 2013, respectively 167 167
Additional paid-in capital 38,332 38,231
Accumulated other comprehensive income:
Foreign currency translation (1,989 ) (959 )
Postretirement benefit obligations 190 190
Retained earnings   46,509     47,066  
83,209 84,695
Less 2,731 of common shares in treasury, at cost at March 31, 2014 and December 31, 2013   (18,239 )   (18,239 )
Total stockholders’ equity   64,970     66,456  
Total liabilities and stockholders’ equity $ 88,711   $ 95,444  
Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31, 2014 and 2013
(In thousands)
    2014       2013  
Cash flows from operating activities:
Net earnings (loss) $ (594 ) $ 565
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for doubtful accounts 69 30
Provision for obsolete inventory (8 ) 24
Provision for warranty (134 ) 106
Depreciation and amortization 434 338
Equity in (income) loss of joint venture (95 ) 106
Loss on forward contracts 348
(Gain) loss on disposal or transfer of assets (7 ) 2
Deferred income taxes 519 (10 )
Share-based compensation expense 101 95
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts, unbilled and notes receivable 3,709 6,010
Inventories (179 ) (2,773 )
Other current assets (200 ) 821
Accounts payable (3,314 ) (1,810 )
Accrued expenses (1,343 ) (315 )
Customer deposits/deferred revenue (208 ) (859 )
Current income taxes (1,599 ) (444 )
Other assets   (56 )   43  
Net cash (used in) provided by operating activities   (2,557 )   1,929  
Cash flows from investing activities:
Capital expenditures (258 ) (73 )
Proceeds from sales of assets   56     2  
Net cash used in investing activities   (202 )   (71 )
Cash flows from financing activities:
Proceeds from employee stock purchase plan       4  
Net cash provided by financing activities 4
Effect of exchange rate changes on cash and cash equivalents   (541 )   (167 )
Net increase (decrease) in cash and cash equivalents (3,300 ) 1,695
Cash and cash equivalents at beginning of year   28,791     40,168  
Cash and cash equivalents at end of year $ 25,491   $ 41,863  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...