Ballantyne of Omaha Purchases Nation's Leading Film Platter Supplier.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. and FISHER, Ill.--(BUSINESS WIRE)--April 6, 1998-- Accretive Acquisition 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. Vertically Integrates Projection System Product Ballantyne of Omaha, Inc. (NYSE NYSE See: New York Stock Exchange : BTN BTN In currencies, this is the abbreviation for the Bhutan Ngultrum. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), a leading manufacturer of motion picture projection and entertainment lighting equipment, today announced it has acquired Design and Manufacturing, Ltd., a Fisher, Illinois-based supplier of film platter systems to the motion picture exhibition industry. While terms of the cash and stock transaction were not disclosed, the acquisition will add approximately $1.2 million of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Founded in 1976, Design and Manufacturing has captured close to 60% of the platter system market, with an estimated 16,000 units in operation at movie theaters throughout the world. Each platter system consists of a film platter and make-up table, which together allow a projector to operate continuously for up to 4 1/2 hours by feeding and collecting film. Last year, the Company generated approximately $9.1 million in revenues selling 2,759 platters and 959 make-up tables. Approximately 85% of Design and Manufacturing's revenues are derived from platter system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. , while 15% are derived from specialty component manufacturing the Company conducts for industrial customers in the Midwest. Ballantyne of Omaha is the Company's largest customer. Jack E. Spitz spitz Any of several northern dogs, including the chow chow, Pomeranian, and Samoyed, characterized by a dense, long coat, erect pointed ears, and a tail that curves over the back. In the U.S. , 54, Design and Manufacturing's co-founder and President, has signed a five-year employment contract with Ballantyne, and will continue to oversee day-to-day operations at its 35,000 square foot, state-of-the-art machine shop facility in Fisher, Illinois. Commenting on the acquisition, Ballantyne President and Chief Executive Officer John P. Wilmers stated, "Today's acquisition is a strategic move designed to enhance Ballantyne's manufacturing efficiency and profitability of its theater equipment business. By bringing Design and Manufacturing into the Ballantyne of Omaha fold, we can further reduce costs from the projection system assembly process and enhance overall efficiency by using excess plant capacity to bring previously out-sourced manufacturing functions in-house. "Design and Manufacturing allows us to improve our competitive position while enhancing shareholder value. The Company's products are well known and valued by our customers, and its employees share our commitment to quality manufacturing backed by superior customer service." Ballantyne of Omaha is the leading U.S. supplier of commercial motion picture projection equipment utilized by the major theater chains including AMC (Advanced Mezzanine Card) See AdvancedTCA. , Loews Cineplex and Regal Cinemas, and specialty projection equipment used by location-based entertainment providers such as The Walt Disney Co., Universal Studios and IMAX IMAX Noun a film projection process that produces an image ten times larger than standard . Ballantyne of Omaha also manufactures, rents and leases specialty entertainment lighting products used at top arenas, television and motion picture production studios, theme parks and architectural sites around the world. -0- 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, 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 expectations. CONTACT: Brad French Chief Financial Officer Ballantyne of Omaha, Inc. 402/453-4444 OR Stewart Lewack, Joseph Jaffoni Jaffoni & Collins Incorporated 212/835-8500; E-Mail: jaffoni@jcir.com |
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