CONTACT: |
|
| |
Brad French |
| Stewart Lewack, Joseph Jaffoni | |
Chief Financial Officer |
| Jaffoni & Collins Incorporated | |
402/453-4444 |
| 212/835-8500; btne@jcir.com | |
OMAHA, Nebraska (May 15, 2003) Ballantyne of Omaha, Inc. (OTC BB:BTNE), a leading manufacturer of motion picture projection and specialty lighting equipment, today reported financial results from continuing operations for the three-month period ended March 31, 2003.
Net revenue from continuing operations for the three months ended March 31, 2003 was $7.5 million compared to $9.2 million in the first quarter of 2002. Gross profit from continuing operations in the quarter was $1.4 million, compared to $1.7 million in the year-ago period. The Company reported a net loss from continuing operations of $0.4 million, or $0.03 per share, in the first quarter of 2003, compared to a net loss of $0.1 million, or $0.01 per share, in the first quarter of 2002. Per share results are based on a weighted average number of shares outstanding of 12,608,096 and 12,566,080 for the first quarters of 2003 and 2002, respectively.
John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “The theater exhibition industry is slowly recovering from a lengthy downturn and the financial health of the industry has been improving, but the industry as a whole did not aggressively resume building new theaters during the first quarter. We continue to reinvest in our Company to develop ancillary revenue sources, and with a cash position of $7.5 million and net working capital of approximately $19.1 million, we have a strong balance sheet to support that effort.”
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 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 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.
-tables follow-
Ballantyne of Omaha, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
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| Three Months Ended March 31, |
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|
| 2003 |
| 2002 |
| ||
Net operating revenues |
| $ | 7,529,510 |
| $ | 9,158,659 |
|
Cost of revenues |
| 6,154,183 |
| 7,437,042 |
| ||
Gross profit |
| 1,375,327 |
| 1,721,617 |
| ||
Operating expenses: |
|
|
|
|
| ||
Selling |
| 774,134 |
| 745,458 |
| ||
General and administrative |
| 1,131,918 |
| 1,101,164 |
| ||
Total operating expenses |
| 1,906,052 |
| 1,846,622 |
| ||
Loss from operations |
| (530,725 | ) | (125,005 | ) | ||
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|
|
|
|
| ||
Interest income |
| 12,654 |
| 948 |
| ||
Interest expense |
| (2,883 | ) | (29,102 | ) | ||
Gain on disposal of assets, net |
| 136,056 |
| 44,306 |
| ||
Other income (expense) |
| 3,083 |
| (13,959 | ) | ||
Loss from continuing operations before income taxes |
| (381,815 | ) | (122,812 | ) | ||
Income tax (expense) benefit |
| (2,280 | ) | 21,786 |
| ||
Loss from continuing operations |
| (384,095 | ) | (101,026 | ) | ||
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|
|
|
|
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Discontinued operations: |
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|
|
|
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Loss from operations of discontinued audiovisual segment (net of Federal tax benefit of $68,652 in 2002) |
| — |
| (133,267 | ) | ||
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|
|
|
|
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Net loss |
| $ | (384,095 | ) | $ | (234,293 | ) |
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|
|
|
|
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Net loss per share — basic and fully diluted: |
|
|
|
|
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Net loss per share from continuing operations |
| $ | (0.03 | ) | $ | (0.01 | ) |
Net loss per share from discontinued operations |
| — |
| (0.01 | ) | ||
Net loss per share |
| $ | (0.03 | ) | $ | (0.02 | ) |
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|
|
|
|
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Weighted average shares outstanding: |
|
|
|
|
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Basic |
| 12,608,096 |
| 12,566,080 |
| ||
Diluted |
| 12,608,096 |
| 12,566,080 |
| ||
-tables follow-
2
Summary Statement of Discontinued Operations (Unaudited):
|
| Three Months Ended March 31, 2002 |
| |
Revenues |
| $ | 1,049,237 |
|
Cost of revenues |
| 785,331 |
| |
Gross profit |
| 263,906 |
| |
Operating expenses: |
|
|
| |
Selling |
| 258,535 |
| |
General and administrative |
| 201,338 |
| |
Total operating expenses |
| 459,873 |
| |
Earnings loss from operations |
| (195,967 | ) | |
Net interest expense |
| (1,657 | ) | |
Gain on disposal of assets |
| — |
| |
Other expense |
| (4,295 | ) | |
Loss from operations of discontinued audiovisual segment before income taxes |
| $ | (201,919 | ) |
|
| March 31, 2003 |
| December 31, 2002 |
| ||
Cash and cash equivalents |
| $ | 7,503,872 |
| $ | 6,276,011 |
|
Accounts receivable, net |
| 4,922,728 |
| 5,523,122 |
| ||
Inventories, net |
| 12,371,959 |
| 12,031,724 |
| ||
Current debt |
| 20,048 |
| 17,841 |
| ||
Long-term debt |
| 87,678 |
| 93,458 |
| ||
Accounts payable and accrued expenses |
| 6,907,553 |
| 6,377,798 |
| ||
Total stockholders’ equity |
| $ | 28,006,834 |
| $ | 28,390,929 |
|
(1) Excludes discontinued operations.
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| Three Months Ended March 31, |
| ||||
|
| 2003 |
| 2002 |
| ||
Net loss |
| $ | (384,095 | ) | $ | (234,293 | ) |
Depreciation and amortization |
| 316,138 |
| 406,487 |
| ||
Net cash provided by (used in) operating activities |
| 544,315 |
| (22,788 | ) | ||
Capital expenditures |
| (64,023 | ) | (39,536 | ) | ||
Net cash provided by investing activities |
| 225,977 |
| 27,804 |
| ||
Net cash used in financing activities |
| (3,573 | ) | (86,550 | ) | ||
Net cash contributed to (from) continuing operations |
|
|
|
|
| ||
from (to) discontinued operations |
| 461,142 |
| (172,994 | ) | ||
Net increase (decrease) in cash & cash equivalents |
| 1,227,861 |
| (254,528 | ) | ||
Cash & cash equivalents at beginning of period |
| 6,276,011 |
| 2,099,320 |
| ||
Cash & cash equivalents at end of period |
| $ | 7,503,872 |
| $ | 1,844,792 |
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