Welcome!

News Feed Item

Ballantyne Reports Financial Results for Second Quarter of 2014

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.

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.

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

             
June 30,
2014
December 31,
2013
(Unaudited)
Assets
Current assets:
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
Inventories:
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
Note receivable 2,730 2,497
Intangible assets, net 937 895
Goodwill 1,119 1,123
Other assets 4,396 4,105
Total assets $ 88,703 $ 95,444
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 9,030 $ 12,844
Accrued expenses 4,445 6,236
Customer deposits/deferred revenue 3,525 3,474
Income tax payable 458 888
Total current liabilities 17,458 23,442
Deferred revenue 2,602 3,008
Deferred income taxes 815 790
Other accrued expenses, net of current portion 1,746 1,748
Total liabilities 22,621 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 16,912 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 )

(959

)

Postretirement benefit obligations 190 190
Retained earnings 46,895 47,066
84,321 84,695
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)

(Unaudited)

           
Three Months Ended June 30, Six Months Ended June 30,
2014     2013 2014     2013
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
Gross profit 4,247 4,680 8,463 8,593
Selling and administrative expenses:
Selling 1,559 870 3,104 1,736
Administrative 2,822 2,453 6,715 4,954
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

(118

)

Other income (expense):
Interest income 182 13 359 35
Interest expense (18 ) (12 ) (27 ) (19 )
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:
Basic 14,060 13,997 14,043 13,988
Diluted 14,106 14,045 14,043 14,035
 

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30, 2014 and 2013

(In thousands)

(Unaudited)

     
  Six Months Ended June 30,
2014     2013
 
Cash flows from operating activities:
Net earnings (loss)

$

(213

)

$

1,841

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
Inventories 818 (2,339 )
Other current assets 98 1,508
Accounts payable (3,781 ) (7,778 )
Accrued expenses (1,618 ) (1,095 )
Customer deposits/deferred revenue (353 ) (1,283 )
Current income taxes (2,382 ) 331
Other assets   (90 )   56
Net cash (used in) provided by operating activities (1,140 ) 5,671
 
Cash Flows from investing activities:
Capital expenditures (536 ) (197 )
Proceeds from sale of assets   56   2
Net cash used in investing activities (480 )

(195

)

 
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

$

26,903

$

45,121

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
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
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 910Telecom 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. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...