Click here to close now.


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: (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. (

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,
December 31,
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
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 )



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)


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



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)


  Six Months Ended June 30,
2014     2013
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
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 )



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





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
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...
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...
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 ...
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...
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.
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...
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"...
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...
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...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, 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 In the past, he was co-founder of social-trading platform Currensee, which...
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 ...
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...
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.
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, examined how Docker has evolved into a highly effective tool for application del...
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...