Ballantyne of Omaha 2005 Pretax Income Increases 15.2% on 9.6% Rise in Net Revenues, Led By Improved Domestic Theater Products Demand.OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb. -- Ballantyne Ballantyne may refer to: Places
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Ballantyne of Omaha, Inc. (Amex: BTN), a manufacturer of motion picture projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. lighting equipment, today reported financial results for the fourth quarter (Q4) and year ended December December: see month. 31, 2005. For the full year 2005 net revenues rose 9.6% to $53.9 million from $49.1 million in 2004, reflecting increased demand for theater products in the US, Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , as well as improved sales of domestic lighting products. Restaurant segment sales declined year-over year, reflecting the elimination of the company's restaurant equipment product line. Gross profit in 2005 rose 10.3% to $14.9 million, or 27.7% of net revenues, from $13.5 million, or 27.5% of net revenues, in 2004. The gross profit improvement reflects higher gross profit in the theatre, lighting and restaurant segments. However gross profits as a percentage of revenue for theatre sales declined 50 basis points in 2005 compared to 2004, reflecting a shift in product mix that included higher sales of xenon xenon (zē`nŏn) [Gr.,=strange], gaseous chemical element; symbol Xe; at. no. 54; at. wt. 131.29; m.p. −111.9°C;; b.p. −107.1°C;; density 5.86 grams per liter at STP; valence usually 0. bulbs that carry lower gross margins and lower sales of replacement parts. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income in 2005 rose 15.2% to $6.8 million, compared to $5.9 million in 2004, principally reflecting improved operating results and increased net interest income. Net income in 2005 was $4.3 million, or $0.31 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.1 million, or $0.37 per diluted share, in 2004. The 2004 net income reflects the benefit of a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of certain tax asset valuation reserves that resulted in a $1.2 million ($0.09 per share) credit to income tax expense. A non-GAAP reconciliation is provided below. Per share results are based on a weighted average number of diluted shares outstanding of 13,920,431 and 13,608,876 in 2005 and 2004, respectively. Q4 2005 net revenues declined 3% to $14.0 million compared to $14.5 million in the year-ago fourth quarter. In Q4 2004 Ballantyne recorded a special venue venue In law, the place or county in which the events giving rise to a legal action take place and from which a jury may be drawn to try the case. Venue statutes usually specify that a trial must take place in the district that has jurisdiction over the matter. sale in China of approximately $2.1 million which did not recur in Q4 2005. Gross profit in Q4 2005 was $3.8 million, or 26.8% of net revenues, nearly matching Q4 2004 gross profit of $3.8 million, or 26.3% of net revenues. The improved gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. in Q4 2005 primarily reflects efficiencies being achieved in the manufacturing process. Net income in Q4 2005 was $1.1 million, or $0.08 per diluted share, compared to net income of $1.2 million, or $0.09 per diluted share, in Q4 2004. Per share results for the fourth quarters of 2005 and 2004 are based on a weighted average number of diluted shares outstanding of 13,993,062 and 13,703,081 respectively. John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "Excluding the year-ago tax benefit of $1.2 million, Ballantyne achieved substantial top-and bottom line improvements in 2005, a performance for which our entire organization should be proud. Ballantyne also performed well during the 2005 fourth quarter, though year-over-year comparisons reflect the benefit in the 2004 period of the sale in China which accounted for almost 15% of last year's fourth quarter revenue. When excluding the China sale from 2004's fourth quarter, the year-over-year increased sales were driven by growth in domestic theater product demand while international sales levels remained relatively stable. "We also made notable progress in improving our balance sheet in 2005, as we completed the year with negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and nearly $20 million of cash and cash equivalents. Further, our inventories were approximately $9.9 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005, or 18% below the level at the end of 2004, demonstrating our progress in managing this important asset. Given this strong financial position and our theater industry leadership, we continue to explore new investment opportunities to grow our business. "Ballantyne is meeting its internal projections for theater equipment sales in the current quarter to date, but we have begun to see evidence of the industry's expected transition to digital cinema in the month of March. For example, theatre owners are now evaluating their options as they plan capital expenditures relative to new or used film projectors or digital equipment. Digital cinema remains an important component of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategy, and we continue to work closely with our partner, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Solutions (America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. ), Inc. to launch this next generation technology within the exhibition industry. In support of this initiative, the Company believes the establishment of a service network would add value to our installation and 'after-sale service' activities. We are presently reviewing the best means of cost-effectively launching this offering while ensuring that the network is in place as the industry commences this long-anticipated transition. "In 2006, we expect to invest in the establishment of this service network while making further investments in sales and marketing to strengthen our role in the digital cinema industry. We also continue to actively identify and evaluate, in a disciplined manner, possible accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. that will diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our product offerings and leverage the Company's existing manufacturing capacity." Non-GAAP Reconciliation Adjusted Net Income is defined as Net Income without the benefit of certain deferred tax valuation allowances. The Company believes this measure can be useful to investors in evaluating the operating performance of the Company's core operations.
Summary of Adjustments to 2005 Results (unaudited)
Year Ended
December 31,
2005 2004
------------ ------------
Net income $ 4,308,897 $ 5,073,329
Reversal of valuation allowance (1) -- 1,243,676
------------ ------------
Adjusted net income 4,308,897 3,829,653
============ ============
Adjusted net income per diluted share: $ 0.31 $ 0.28
============ ============
(1) During 2004, the Company reversed all valuation allowances
against its deferred tax assets. The reversal was recorded as an
offset against income tax expense in the amount of $1.2 million.
Adjusted net income illustrates the impact of taxes the Company would
have expensed, had it not reversed its valuation allowances during the
period.
About Ballantyne of Omaha Ballantyne is a leading U.S. supplier of commercial motion picture and specialty projection equipment utilized by major theater chains and location-based entertainment providers. The Company also manufactures specialty entertainment lighting products used at top arenas, television and motion picture production studios, theme parks and architectural sites around the world. Except for the historical information in this press release, it includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. 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 of Omaha, Inc. and Subsidiaries
Consolidated Statements of Operations
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
Net revenues $14,043,297 14,513,617 $53,856,997 $49,144,510
Cost of revenues 10,275,752 10,698,153 38,951,626 35,629,838
----------- ----------- ----------- -----------
Gross profit 3,767,545 3,815,464 14,905,371 13,514,672
Selling &
administrative
expenses:
Selling 776,312 995,347 2,831,706 3,126,174
Administrative 1,525,134 1,055,663 5,632,643 4,605,220
----------- ----------- ----------- -----------
Total selling &
administrative
exp. 2,301,446 2,051,010 8,464,349 7,731,394
Gain (loss) on
disposal of
assets, net 467 (5,138) 9,171 104,892
----------- ----------- ----------- -----------
Income from
operations 1,466,566 1,759,316 6,450,193 5,888,170
Interest income 139,434 53,565 412,408 129,813
Interest expense (5,026) (7,610) (30,939) (35,141)
Other expense, net (26,838) (42,159) (46,897) (91,329)
----------- ----------- ----------- -----------
Income before
income taxes 1,574,136 1,763,112 6,784,765 5,891,513
Income tax expense 497,459 534,232 2,475,868 818,184
----------- ----------- ----------- -----------
Net income $ 1,076,677 $ 1,228,880 $ 4,308,897 $ 5,073,329
=========== =========== =========== ===========
Earnings per share
Basic $ 0.08 $ 0.09 $ 0.33 $ 0.40
=========== =========== =========== ===========
Diluted $ 0.08 $ 0.09 $ 0.31 $ 0.37
=========== =========== =========== ===========
Weighted average
shares
outstanding:
Basic 13,390,162 12,943,245 13,255,349 12,828,096
=========== =========== =========== ===========
Diluted 13,993,062 13,703,081 13,920,431 13,608,876
=========== =========== =========== ===========
Selected Balance Sheet Items:
December 31, December 31,
2005 2004
------------- -------------
(Unaudited)
Cash and cash equivalents $ 19,628,348 $ 14,031,984
Accounts receivable, net 7,821,085 6,159,764
Inventories, net 9,942,065 12,173,966
Current portion of long-term debt 27,761 25,935
Long-term debt 14,609 42,370
Accounts payable and accrued expenses 6,675,923 7,077,303
Total stockholders' equity $ 39,997,505 $ 34,523,438
============= =============
Selected Cash Flow Statement Items:
Year Ended December 31,
2005 2004
------------- -------------
(Unaudited)
Net income $ 4,308,897 $ 5,073,329
Depreciation and amortization 1,136,822 1,082,360
Net cash provided by operating
activities 5,547,776 5,905,440
Capital expenditures 827,302 1,131,792
Net cash used in investing activities 807,501 818,543
Net cash provided by financing
activities 856,089 183,519
Net increase in cash & cash equivalents 5,596,364 5,270,416
Cash & cash equivalents at beginning of
period 14,031,984 8,761,568
Cash & cash equivalents at end of period $ 19,628,348 $ 14,031,984
============= =============
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