|By Business Wire||
|August 8, 2014 05:00 AM EDT||
Ballantyne Strong, Inc. (NYSE MKT: BTN):
|Conference call:||Today – August 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:||866-652-5200; ask for “Ballantyne Strong” conference call|
Ballantyne Strong, Inc. (NYSE MKT: BTN), a diversified provider of digital technology services, products and solutions, today reported financial results for the second quarter ended June 30, 2014.
Net revenues were $22.0 million in the second quarter of 2014, compared with $24.4 million in the same period of the prior year. Net income totaled $0.4 million, or $0.03 per diluted share, in the second quarter of 2014, compared with net income of $1.3 million, or $0.09 per diluted share, in the same period of the prior year.
Gary L. Cavey, President and CEO of Ballantyne Strong, commented, “We continue to ramp up business development activities with the new businesses we have recently entered, including digital media, video surveillance, and small-format screens for the professional audiovisual market. We are pleased with the improved diversity we have in our revenue mix and the gross margins we are generating. As we gain traction with our new businesses, we believe we will have many catalysts for driving improvement in revenue and earnings in the coming years.”
Q2 2014 Financial Summary
Managed Services revenues were $7.6 million in the second quarter of 2014, compared with $3.3 million in the same period of the prior year. The increase is attributable to the acquisition of Convergent Media Systems.
Systems Integration revenues were $14.8 million in the second quarter of 2014, compared with $21.5 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 winds down.
Consolidated gross profit was $4.2 million in the second quarter of 2014, compared with $4.7 million in the same quarter of the prior year. Gross margin was 19.3% in the second quarter of 2014, compared with 19.2% in the same quarter of the prior year.
Selling, general and administrative expenses (SG&A) were $4.4 million in the second quarter of 2014, compared with $3.3 million in the same quarter of the prior year. The increase in SG&A was attributable to the addition of Convergent’s operations.
Six Month Results
For the six months ended June 30, 2014, net revenues were $44.0 million, compared with $52.0 million for the same period in 2013. Gross profit amounted to $8.5 million, or 19.2% of net revenues, compared to gross profit of $8.6 million, or 16.5% of net revenues in the prior-year period. Net loss was $0.2 million, or ($0.02) per share, compared to net earnings of $1.8 million, or $0.13 per diluted share, in the first half of 2013.
Balance Sheet and Cash Flow Update
Ballantyne’s cash and cash equivalents balance at June 30, 2014 was $26.9 million, an increase from $25.5 million at the end of the prior quarter. The increase in cash and cash equivalents balance was primarily attributable to positive cash flow generated from operations during the second quarter of 2014.
About Ballantyne Strong, Inc. (www.strong-world.com)
Ballantyne Strong designs, integrates, and installs technology solutions for a broad range of applications; develops and delivers out-of-home messaging, advertising and communications; manufactures projection screens and lighting products; and provides managed services including monitoring of networked equipment. The Company focuses on serving the retail, financial, government and cinema markets.
Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including but not limited to, quarterly fluctuations in results; customer demand for the Company’s products; the development of new technology for alternate means of motion picture presentation; domestic and international economic conditions; the management of growth; and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ materially from management’s expectations.
Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||26,903||$||28,791|
|Accounts receivable (net of allowance for doubtful accounts of $642 and $703, respectively)||14,785||20,047|
|Finished goods, net||11,995||10,949|
|Work in process||611||345|
|Raw materials and components, net||1,721||3,891|
|Total inventories, net||14,327||15,185|
|Recoverable income taxes||4,175||2,207|
|Other current assets||4,965||5,873|
|Total current assets||65,155||72,103|
|Property, plant and equipment (net of accumulated depreciation of $5,472 and $4,781, respectively)||14,366||14,721|
|Intangible assets, net||937||895|
|Liabilities and Stockholders’ Equity|
|Customer deposits/deferred revenue||3,525||3,474|
|Income tax payable||458||888|
|Total current liabilities||17,458||23,442|
|Deferred income taxes||815||790|
|Other accrued expenses, net of current portion||1,746||1,748|
|Preferred stock, par value $.01 per share; Authorized 1,000 shares, none outstanding||—||—|
|Common stock, par value $.01 per share; Authorized 25,000 shares; issued 16,912 and 16,869 shares at June 30, 2014 and December 31, 2013, respectively; 14,181 and 14,138 shares outstanding at June 30, 2014 and December 31, 2013, respectively||167||167|
|Additional paid-in capital||38,431||38,231|
|Accumulated other comprehensive income:|
|Foreign currency translation||(1,362||)||
|Postretirement benefit obligations||190||190|
|Less 2,731 of common shares in treasury, at cost at June 30, 2014 and December 31, 2013||(18,239||)||(18,239||)|
|Total stockholders’ equity||66,082||66,456|
|Total liabilities and stockholders’ equity||$||88,703||$||95,444|
Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three and Six Months Ended June 30, 2014 and 2013
(In thousands, except per share data)
|Three Months Ended June 30,||Six Months Ended June 30,|
|Net product sales||$||16,202||$||21,411||$||31,037||$||46,608|
|Net service revenues||5,825||2,984||13,011||5,408|
|Total net revenues||22,027||24,395||44,048||52,016|
|Cost of products sold||14,184||17,555||26,634||39,149|
|Cost of services||3,596||2,160||8,951||4,274|
|Total cost of revenues||17,780||19,715||35,585||43,423|
|Selling and administrative expenses:|
|Total selling and administrative expenses||4,381||3,323||9,819||6,690|
|Gain on the sale/disposal/transfer of assets||2||3||8||4|
|Income (loss) from operations||(132||)||1,360||(1,348||)||1,907|
|Equity income (loss) of joint venture||—||(12||)||95||
|Other income (expense):|
|Other income (expense), net||(123||)||247||86||496|
|Total other income (expense)||41||248||418||512|
|Earnings (loss) before income taxes||(91||)||1,596||(835||)||2,301|
|Income tax benefit (expense)||472||(319||)||622||(460||)|
|Net earnings (loss)||$||381||$||1,277||$||(213||)||$||1,841|
|Basic earnings (loss) per share||$||0.03||$||0.09||$||(0.02||)||$||0.13|
|Diluted earnings (loss) per share||$||0.03||$||0.09||$||(0.02||)||$||0.13|
|Weighted average shares outstanding:|
Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2014 and 2013
|Six Months Ended June 30,|
|Cash flows from operating activities:|
|Net earnings (loss)||
|Adjustments to reconcile net earnings to net cash provided by operating activities:|
|Provision for doubtful accounts||(17||)||211|
|Provision for obsolete inventory||(39||)||10|
|Provision for warranty||(195||)||260|
|Depreciation and amortization||813||681|
|Equity in (income) loss of joint venture||(95||)||118|
|Loss on forward contracts||145||188|
|(Gain) loss on disposal or transfer of assets||(8||)||5|
|Deferred income taxes||(400||)||197|
|Share-based compensation expense||200||220|
|Changes in operating assets and liabilities:|
|Accounts, unbilled and notes receivable||5,977||12,540|
|Other current assets||98||1,508|
|Customer deposits/deferred revenue||(353||)||(1,283||)|
|Current income taxes||(2,382||)||331|
|Net cash (used in) provided by operating activities||(1,140||)||5,671|
|Cash Flows from investing activities:|
|Proceeds from sale of assets||56||2|
|Net cash used in investing activities||(480||)||
|Cash flows from financing activities:|
|Excess tax benefits from share-based arrangements||(6||)||(11||)|
|Proceeds from employee stock purchase plan||—||3|
|Net cash used in financing activities||(6||)||(8||)|
|Effect of exchange rate changes on cash and cash equivalents||(262||)||(515||)|
|Net increase (decrease) in cash and cash equivalents||(1,888||)||4,953|
|Cash and cash equivalents at beginning of period||28,791||40,168|
|Cash and cash equivalents at end of period||
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 25, 2015 12:30 AM EST Reads: 404
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 25, 2015 12:30 AM EST Reads: 407
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 25, 2015 12:00 AM EST Reads: 146
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Nov. 24, 2015 10:00 PM EST Reads: 258
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 24, 2015 08:00 PM EST Reads: 338
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Nov. 24, 2015 07:30 PM EST Reads: 342
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Nov. 24, 2015 06:00 PM EST Reads: 368
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Nov. 24, 2015 06:00 PM EST Reads: 318
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Nov. 24, 2015 04:30 PM EST Reads: 286
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company Logz.io. In the past, he was co-founder of social-trading platform Currensee, which...
Nov. 24, 2015 03:45 PM EST
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 24, 2015 03:30 PM EST Reads: 459
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Nov. 24, 2015 03:30 PM EST Reads: 137
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Nov. 24, 2015 03:30 PM EST Reads: 507
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application del...
Nov. 24, 2015 03:00 PM EST Reads: 286
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Nov. 24, 2015 02:15 PM EST Reads: 257