Ballantyne of Omaha Reports 2003 Fourth Quarter and Year-End Results; Achieves Profitable Quarter on 44% Revenue Increase.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)--March 22, 2004 Ballantyne Ballantyne may refer to: Places
See: Over-the-counter. OTC See over-the-counter market (OTC). BB: BTNE), 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 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the three- and twelve-month periods ended December December: see month. 31, 2003. Net revenue from continuing operations for the three months ended December 31, 2003 rose 44% to $11.1 million from $7.7 million in the fourth quarter of 2002. Gross profit from continuing operations in the quarter rose 110% to $2.7 million from $1.3 million in the year-ago period due to lower manufacturing costs resulting from increased sales volume and a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. sales mix sales mix See product mix. . The Company reported net income from continuing operations of $0.2 million, or $0.02 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 fourth quarter of 2003, compared to a net loss from continuing operations of $0.9 million, or $0.07 per diluted share, in the year-ago fourth quarter. Per share results are based on a weighted average number of shares outstanding of 13,395,475 and 12,586,901 for the fourth quarters of 2003 and 2002, respectively. John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "The financial health of the theater exhibition industry is steadily improving and our customers are gaining improved access to capital for new theater construction. Our sales began improving in the second quarter of 2003 and grew stronger as the year progressed, resulting in a 14% increase in projector unit shipments on a year-over-year basis. Initiatives to pursue new growth are also starting to contribute, as evidenced by the successful debut of our MegaSystems(R) product line during the year. "The results for the 2003 fourth quarter reflect the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of $0.3 million of insurance recoveries relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain fraudulent The description of a willful act commenced with the Specific Intent to deceive or cheat, in order to cause some financial detriment to another and to engender personal financial gain. expense claims by a former employee from 1998 through October October: see month. 2003. The total loss related to this incident was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $768,000 and was primarily recorded and expensed by the Company as selling expenses in the year when the fraudulent expense claims were submitted by the former employee. The Company continues to pursue additional recoveries concerning these claims." For the twelve-month period ended December 31, 2003, the Company reported revenue from continuing operations of $37.4 million, compared to $33.8 million in the year-ago period. Gross profit from continuing operations in 2003 increased 53% to $8.6 million, or 23% of revenue, compared to $5.6 million, or 17% of revenue, in 2002 due to lower manufacturing costs resulting from increased production volume. Results for 2003 reflect the accrual of $0.3 million of insurance proceeds relating to the fraudulent expense claims discussed earlier. Ballantyne's net income from continuing operations in 2003 was $0.6 million, or $0.04 per diluted share, compared to a net loss from continuing operations of $2.6 million, or $0.21 per diluted share, in 2002. Per share results are based on a weighted average number of shares outstanding of 13,186,968 and 12,572,442 for the 2003 and 2002 periods, respectively. Mr. Wilmers continued, "We made it a priority to further strengthen our balance sheet in 2003, finishing 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 . debt, working capital of $20.8 million and a growing cash position of approximately $8.8 million. Additionally, there is borrowing capacity of $4 million under our credit facility, should we need those additional resources to pursue acquisitions or digital projection initiatives in the year ahead." 2004 Expectations The Company's expectations for 2004 include continued improvement in projector unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. over 2003 levels, continued sales of MegaSystems large format theater products, and continued operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. gained through manufacturing efficiencies. The Company's strategic focus will be on diversifying its revenue base through the development of new product lines or through strategic acquisitions. "The industry at-large At-Large is a designation for representative members of a governing body who are elected or appointed to represent the whole membership of the body (for example, a city, state or province, nation, club or association), rather than a subset of that membership. grows more financially stable each year, giving us optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. about our prospects in 2004," added Mr. Wilmers. "Visibility into the theater construction schedules of our customers has significantly improved, and we have greater confidence that new equipment purchase commitments will be fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. . This stability will contribute to a more firm financial base from which to pursue new internal growth initiatives and complementary acquisitions that build our theater equipment market share in the year ahead and beyond." Ballantyne will continue to optimize optimize - optimisation its product mix in 2004 by phasing out its food service equipment product line. This business is comprised of smokers, ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and hoods and pressure fryers, and accounted for approximately $0.8 million in sales in 2003. Going forward, the Company will continue to supply parts and provide service to its installed equipment customer base. Ballantyne will also continue to distribute its "Flavor Flavor Any of the six different varieties of quarks. All hadronic matter is composed of quarks, the most elementary constituents of matter. The six different flavors are labeled u, d, s, c, b, and t Crisp" marinade and breading products to independent food service operators, as well as support its "Chicken-on-the-Run" and "BBQ-on-the-Run" programs. In 2003, the marinade, breading and food programs together accounted for approximately $0.6 million of revenue. Mr. Wilmers concluded, "Having returned to profitability, improved the balance sheet and demonstrated the continuing resilience resilience (r  ·zilˑ·yens),n of our product lines through the exhibition industry's recent downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , we will continue to evaluate every aspect of our business to ensure that ongoing expenses and investments deliver an appropriate return to shareholders." 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 con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Operations See Income statement. (Unaudited)
Three Months Ended
December 31,
2003 2002
-------------- --------------
Net operating revenues $ 11,052,041 $ 7,687,526
Cost of revenues 8,383,174 6,420,525
-------------- --------------
Gross profit 2,668,867 1,267,001
Selling and administrative expenses:
Selling 673,928 1,050,580
Administrative 1,420,584 973,824
-------------- --------------
Total selling and administrative 2,094,512 2,024,404
-------------- --------------
Income (loss) from operations 574,355 (757,403)
Net interest income (expense) 844 30,185
Gain on disposal of assets, net
-- 76
Other income (expense) (106,658) 31,428
-------------- --------------
Income (loss) from continuing
Before income taxes
Operations before income taxes 468,541 (695,714)
Income tax expense (246,637) (194,700)
-------------- --------------
Income (loss) from continuing
operations 221,904 (890,414)
Discontinued operations:
Income (loss) from operations of
discontinued audio-visual segment,
net of Federal taxes -- 41,928
Gain (loss) on disposal of
audio-visual segment
Segment, net of Federal taxes -- 17,084
-------------- --------------
Net income (loss) $ 221,904 $ (831,402)
============== ==============
Diluted net income (loss) per share
Net income (loss) per share from
continuing operations $ 0.02 $ (0.07)
Net loss per share from
discontinued operations $ -- $ --
-------------- --------------
Net income (loss) per share $ 0.02 $ (0.07)
============== ==============
Weighted average shares outstanding:
Diluted 13,395,475 12,586,901
============== ==============
Twelve Months Ended
December 31,
2003 2002
---------------- ---------------
Net operating revenues $ 37,433,286 $ 33,785,375
Cost of revenues 28,817,635 28,165,750
---------------- ---------------
Gross profit 8,615,651 5,619,625
Selling and administrative expenses:
Selling 3,209,321 3,098,742
Administrative 4,430,137 4,505,127
---------------- ---------------
Total selling and administrative 7,639,458 7,603,869
---------------- ---------------
Income (loss) from operations 976,193 (1,984,244)
Net interest income (expense) 47,872 (51,374)
Gain on disposal of assets, net
136,056 243,238
Other income (expense) (86,140) 38,186
---------------- ---------------
Income (loss) from continuing
Before income taxes
Operations before income
taxes 1,073,981 (1,754,194)
Income tax expense (495,471) (827,997)
---------------- ---------------
Income (loss) from continuing
operations 578,510 (2,582,191)
Discontinued operations:
Income (loss) from operations of
discontinued audio-visual
segment, net of Federal taxes -- (407,687)
Gain (loss) on disposal of
audio-visual segment
Segment, net of Federal
taxes -- (614,785)
---------------- ---------------
Net income (loss) $ 578,510 $ (3,604,663)
================ ===============
Diluted net income (loss) per share
Net income (loss) per share from
continuing operations $ 0.04 $ (0.21)
Net loss per share from
discontinued operations $ -- $ (0.08)
---------------- ---------------
Net income (loss) per share $ 0.04 $ (0.29)
================ ===============
Weighted average shares outstanding:
Diluted 13,186,968 12,572,442
================ ===============
Selected Balance Sheet Items(1) (Audited)
December 31, December 31,
2003 2002
--------------------------------
Cash and cash equivalents $ 8,761,568 $ 6,276,011
Accounts receivable, net 6,698,725 5,523,122
Inventories, net 12,459,852 12,031,724
Current debt 24,253 17,841
Long-term debt 68,306 93,458
Accounts payable and accrued expenses 7,797,284 6,377,798
Total stockholders' equity $ 29,089,089 $ 28,390,929
================ ==============
Selected Cash Flow Statement Items(1) (Audited):
Twelve Months Ended December 31,
2003 2002
--------------- --------------
Net income (loss) $ 578,510 $ (3,604,663)
Depreciation and amortization 1,203,939 1,474,590
Net cash provided by operating
activities 2,044,818 5,721,183
Capital expenditures (406,717) (182,217)
Net cash provided by (used in)
investing activities (116,717) 407,190
Net cash provided by (used in)
financing activities 84,225 (1,736,582)
Net increase in cash & cash equivalents 2,485,557 4,176,691
Cash & cash equivalents at beginning of
year 6,276,011 2,099,320
Cash & cash equivalents at end of year $ 8,761,568 $ 6,276,011
=============== ==============
(1) Excludes discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . |
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