Ballantyne Strong, Inc. (NYSE MKT: BTN):
(Investor Relations section)
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 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
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
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. (www.strong-world.com)
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.
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
Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations
Three and Six Months Ended June 30, 2014 and 2013
(In thousands, except per share data)
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2014 and 2013
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