Ballantyne of Omaha Reports 2002 Third Quarter Results.Business Editors 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.--(BUSINESS WIRE)--Nov. 15, 2002 Ballantyne Ballantyne may refer to: Places
See: Over-the-counter. OTC See over-the-counter market (OTC). BB:BTNE), a leading manufacturer of motion picture projection and specialty lighting equipment, today reported financial results for the three-and nine-month periods ended September September: see month. 30, 2002. Net revenue for the three months ended September 30, 2002 was $10.2 million, compared to $11.3 million in the third quarter of 2001. Gross profit in the quarter rose 70% to $1.7 million due to lower manufacturing costs, compared to gross profit of $1.0 million in the year-ago period. The Company reported a net loss of $1.7 million, or $0.14 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, in the third quarter of 2002, compared to a net loss of $0.8 million, or $0.07 per diluted share, in the year-ago third quarter. The 2002 third quarter net loss includes: an approximate $1.0 million loss on impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets related to the Company's audiovisual See A/V. equipment sales and rental operations in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and ; an approximate $0.2 million charge related to the early retirement of debt; an approximate $1.0 million valuation allowance pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the uncertain recoverability of certain deferred tax assets; and, the January January: see month. 1, 2002 adoption of Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ," which eliminates the amortization expense for goodwill. Had SFAS No. 142 been in effect during 2001, the Company would have reported a net loss of $0.8 million, or $0.06 per diluted share, in the 2001 third quarter. Per share results are based on a weighted average number of basic and diluted shares outstanding of 12,568,302 and 12,512,672 for the third quarters of 2002 and 2001, respectively. John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "Theater equipment sales during the third quarter were essentially flat compared to the year-ago third quarter and rose 43% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen from the 2002 second quarter, reflecting a slow and stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. recovery in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. theater exhibition industry. The Company continues to reduce expenses and inventory while improving accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying collections, allowing us to completely eliminate debt during the quarter and build our cash position to $4.9 million, a 42% increase from the $3.4 million level reported in the second quarter." Ballantyne also announced that it is evaluating the feasibility of divesting its lighting rental operations located in Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. and Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , as well as the Company's audiovisual equipment sales and rental operations in Florida, while moving certain sales operations to Omaha. Earlier this year, the Company divested non-core lighting rental operations in North Hollywood Hollywood. 1 Community within the city of Los Angeles, S Calif., on the slopes of the Santa Monica Mts.; inc. 1903, consolidated with Los Angeles 1910. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). for $0.5 million in cash. Mr. Wilmers added, "Fourth quarter and 2003 financial results may be punctuated by certain expenses related to possible divestitures of non-core operations. Revenues may also show year-over-year declines due to the absence of certain lighting division units that are no longer part of the Company. But on the whole, we expect these actions to yield a better-margin revenue mix, and we remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the theater exhibition industry's prospects going forward." For the nine month period ended September 30, 2002, the Company reported revenue of $28.5 million, compared to $33.8 million in the year-ago period. Reflecting the impairment loss on assets, expenses for the early retirement of debt, the valuation allowances for deferred tax assets and reserves for bad debt, net loss for the first nine months of 2002 was $2.8 million, or $0.22 per diluted share, compared to $2.2 million, or $0.18 per diluted share, in the first nine months of 2001. Had SFAS No. 142 been in effect during 2001, the Company would have reported a net loss of $2.1 million, or $0.17 per diluted share, in the first nine months of 2001. Per share results are based on a weighted average number of shares outstanding of 12,567,569 and 12,512,672 for the first nine months of 2002 and 2001, respectively. Ballantyne of Omaha 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, 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. 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 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 expectations.
Selected Balance Sheet Items (Unaudited)
September 30, 2002 December 31, 2001
----------------------------------------------
Cash and cash
equivalents $ 4,894,996 $ 2,168,136
Accounts receivable, net 7,069,234 8,024,963
Inventories, net 12,337,997 14,998,505
Current debt 0 375,000
Long-term debt 0 1,375,000
Accounts payable and
accrued expenses 6,496,771 7,434,887
Total stockholders' equity $ 29,205,617 $ 31,971,678
================ ================
Selected Cash Flow Statement Items (Unaudited)
Nine Months Ended,
September 30, 2002 September 30, 2001
----------------------------------------------
Net loss $ (2,773,261) $ (2,249,722)
Depreciation
and amortization 1,638,951 2,268,979
Net cash provided by
operating activities 4,141,263 6,215,169
Capital expenditures (261,009) (739,302)
Net cash provided by
(used in) investing
activities 328,397 (554,960)
Net cash used in
financing activities (1,742,800) (6,361,620)
Net increase (decrease)
in cash & cash equivalents 2,726,860 (701,411)
Cash & cash equivalents
at beginning of period 2,168,136 2,220,983
Cash & cash equivalents
at end of period $ 4,894,996 $ 1,519,572
================ ================
Ballantyne of Omaha, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
---- ---- ---- ----
Net revenues $ 10,160,286 $ 11,288,476 $ 28,492,290 $ 33,764,109
Cost of revenues 8,462,074 10,289,698 23,600,053 30,105,535
------------ ---------- ---------- ----------
Gross profit 1,698,212 998,778 4,892,237 3,658,574
Operating expenses:
Selling 886,290 904,958 2,754,436 2,771,710
General and
administrative 964,922 1,280,851 3,871,470 3,885,782
------------ ----------- ----------- ----------
Total operating
expenses 1,851,212 2,185,809 6,625,906 6,657,492
------------ ----------- ----------- ----------
Loss from
operations (153,000) (1,187,031) (1,733,669) (2,998,918)
Interest income 1,376 227 3,064 17,545
Interest expense (23,812) (45,941) (88,852) (308,248)
Loss on
extinguishment
of credit facility(157,604) -- (157,604) --
Loss on impairment
of assets (957,378) -- (957,378) --
Gain on disposal
of assets, net 161,341 -- 243,162 96,012
Other expenses, net (11,372) (44,070) (5,815) (197,392)
----------- ------------- ---------- ----------
Loss before
income taxes (1,140,449) (1,276,815) (2,697,092) (3,391,001)
Income tax benefit
(expense),
net of
valuation
allowance (596,059) 430,382 (76,169) 1,141,279
-------------- ------------- ------------ -----------
Net loss(1) $ (1,736,508) $ (846,433) $ (2,773,261)$ (2,249,722)
=============== ============= ============ ===========
Net loss
per share:(1)
Basic: $ (0.14) $ (0.07) $ (0.22) $ (0.18)
=============== =============== ============ ==========
Diluted: $ (0.14) $ (0.07) $ (0.22) $ (0.18)
=============== =============== ============ ==========
Weighted average
shares: (1)
Basic 12,568,302 12,512,672 12,567,569 12,512,672
=============== =============== ============== ==========
Diluted 12,568,302 12,512,672 12,567,569 12,512,672
=============== =============== ============== ==========
(1) Due to losses in 2002 and 2001, the calculation of diluted net
loss per share excludes common stock equivalents, as they are
anti-dilutive and would result in a reduction of diluted loss
per share. Effective January 1, 2002, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 142,
"Goodwill and Other Intangible Assets," and ceased amortizing
goodwill expense. Excluding the effects of goodwill
amortization, the Company's net loss and net loss per share
would have been $0.8 million and $0.06 per diluted share,
respectively, for the three month period ended September 30,
2001, and $2.1 million and $0.17 per diluted share,
respectively, for the nine month period ended September 30,
2001.
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