Exhibit 99.1
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BALLANTYNE OF OMAHA, INC. AND SUBSIDIARIES |
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UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET |
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September 30, 2007 |
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(Dollars in Thousands) |
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| As Reported |
| Pro Forma Adjustments |
| Pro Forma |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
| $ | 18,655 |
| 1,714 | (a) | 20,369 |
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Restricted Cash |
| 251 |
| — |
| 251 |
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Accounts Receivable |
| 7,135 |
| (290 | ) (b) | 6,845 |
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Inventories |
| 11,883 |
| (698 | ) (b) | 11,186 |
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Other Current Assets |
| 4,237 |
| (4 | ) (b) | 4,233 |
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Total current assets |
| 42,160 |
| 722 |
| 42,882 |
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Investment in Joint Venture |
| 2,667 |
| — |
| 2,667 |
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Property, plant and equipment, net |
| 4,528 |
| (1,066 | ) (b) | 3,462 |
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Goodwill, net |
| 1,170 |
| — |
| 1,170 |
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Other Intangibles, net |
| 580 |
| — |
| 580 |
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Other long-term assets |
| 1,043 |
| — |
| 1,043 |
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Total assets |
| $ | 52,149 |
| (344 | ) | 51,805 |
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Liabilities and Stockholders’ Equity: |
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Current liabilities: |
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Accounts payable |
| $ | 4,250 |
| (79 | ) (b) | 4,171 |
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Other current liabilities |
| 4,048 |
| (116 | ) (c) | 3,933 |
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total current liabilities |
| 8,298 |
| (195 | ) | 8,104 |
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Other accrued expenses, net of current portion |
| 662 |
| — |
| 662 |
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Total liabilities |
| 8,961 |
| (195 | ) | 8,766 |
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Stockholders’ Equity: |
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Common Stock |
| 159 |
| — |
| 159 |
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Additional Paid-In-Capital |
| 34,510 |
| — |
| 34,510 |
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Accumulated other comprehensive income |
| 15 |
| — |
| 15 |
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Retained earnings |
| 23,819 |
| (149 | ) (d) | 23,670 |
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Treasury stock |
| (15,315 | ) | — |
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EQUITY |
| 43,188 |
| (149 | ) | 43,038 |
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TOTAL LIABILITIES AND EQUITY |
| $ | 52,149 |
| (344 | ) | $ | 51,805 |
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(a) - Amount represents estimated sales price, net of disposal costs and Design and Manufacturing cash balances from reported amounts. |
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(b) - Removal of Design and Manufacturing assets and liabilities from reported amounts. |
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(c) - Amount represents the removal of Design and Manufacturing other current liabilities from reported amounts and the tax benefit recognized on the loss of the sale. |
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(d) - Loss on the sale of Design and Manufacturing, net of tax. |
BALLANTYNE OF OMAHA, INC. AND SUBSIDIARIES |
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UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS |
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For Nine Months Ended September 30, 2007 |
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(Dollars in Thousands, except per share data) |
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| As Reported |
| Pro Forma Adjustments |
| Pro Forma |
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Net revenues |
| $ | 38,206 |
| (2,353 | ) (a) | 35,854 |
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Cost of revenues |
| 30,914 |
| (1,616 | ) (b) | 29,298 |
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Gross margin |
| 7,293 |
| (737 | ) | 6,556 |
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Selling and administrative expenses: |
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Selling |
| 2,280 |
| (21 | ) (a) | 2,259 |
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Administrative |
| 4,340 |
| (205 | ) (a) | 4,135 |
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Goodwill Impairment |
| 639 |
| (639 | ) (a) | — |
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Total selling and administrative expenses |
| 7,259 |
| (865 | ) | 6,394 |
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Gain on the transfer of assets |
| 235 |
| — |
| 235 |
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Gain (loss) on disposal of fixed assets, net |
| (11 | ) | 11 | (a) | — |
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Income (loss) from operations |
| 257 |
| 139 |
| 397 |
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Net interest income |
| 606 |
| 0 |
| 606 |
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Equity in loss of joint venture |
| (153 | ) | — |
| (153 | ) | ||
Other Income |
| (112 | ) | (5 | ) (a) | (117 | ) | ||
Income from continuing operations before income taxes |
| 598 |
| 135 | (c) | 733 |
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Provision for income taxes from continuing operations |
| (94 | ) | (21 | ) (a) | (115 | ) | ||
Net income |
| $ | 504 |
| 114 |
| 618 |
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Earnings per share |
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Basic |
| $ | 0.04 |
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| $ | 0.04 |
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Diluted |
| $ | 0.04 |
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| $ | 0.04 |
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Weighted average shares outstanding |
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Basic |
| 13,805,506 |
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| 13,805,506 |
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Diluted |
| 14,096,263 |
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| 14,096,263 |
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(a)- Removal of Design and Manufacturing related income statement balances from reported amounts. |
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(b)- Amount represents cost of revenues of Design and Manufacturing, taking into consideration an adjustment to increase the cost of revenues for purchases that would have been made by the parent company from Design and Manufacturing at markup prices. |
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(c)- Income from continuing operations before income taxes does not take into consideration the loss of the sale of Design and Manufacturing of approximately $0.2 million. |
BALLANTYNE OF OMHA, INC. AND SUBSIDIARIES |
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PRO FORMA STATEMENT OF OPERATIONS (Unaudited) |
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For the Year Ended December 31, 2006 |
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(in thousands, except per share data) |
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| As Reported |
| Pro Forma Adjustments |
| Pro Forma |
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Net revenues |
| $ | 49,732 |
| (3,238 | ) (a) | 46,494 |
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Cost of revenues |
| 38,907 |
| (2,123 | ) (b) | 36,783 |
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Gross margin |
| 10,826 |
| (1,115 | ) | 9,711 |
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Selling and administrative expenses: |
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Selling |
| 2,983 |
| (21 | ) (a) | 2,962 |
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Administrative |
| 5,121 |
| (294 | ) (a) | 4,827 |
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Goodwill Impairment |
| 1,251 |
| (1,251 | ) (a) | — |
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Total selling and administrative expenses |
| 9,354 |
| (1,565 | ) | 7,789 |
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Gain (loss) on disposal of fixed assets, net |
| 38 |
| (11 | ) (a) | 27 |
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Income (loss) from operations |
| 1,509 |
| 440 |
| 1,949 |
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Net interest income |
| 750 |
| 2 | (a) | 752 |
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Other Income |
| 40 |
| (4 | ) (a) | 36 |
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Income from continuing operations before income taxes |
| 2,300 |
| 438 | (c) | 2,737 |
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Provision for income taxes |
| (731 | ) | (139 | ) (a) | (871 | ) | |||
Net income from continuing operations |
| $ | 1,568 |
| 299 |
| 1,867 |
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Earnings per share |
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Basic |
| $ | 0.12 |
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| $ | 0.14 |
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Diluted |
| $ | 0.11 |
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| $ | 0.13 |
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Weighted average shares outstanding |
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Basic |
| 13,586,252 |
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| 13,586,252 |
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Diluted |
| 14,018,682 |
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| 14,018,682 |
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(a)- Removal of Design and Manufacturing related income statement balances from reported amounts. |
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(b)- Amount represents cost of revenues of Design and Manufacturing, taking into consideration an adjustment to increase the cost of revenues for purchases that would have been made by the parent company from Design and Manufacturing at markup prices. |
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(c)- Income from continuing operations before income taxes does not take into consideration the loss of the sale of Design and Manufacturing of approximately $0.2 million. |