BTN - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Ballantyne Strong Inc Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this call over to Mr. Investor IMS of Nesbett Relations. John Thank you, sir.

begin. may You

John Nesbett

earnings Good the for Strong's XX, afternoon welcome to and conference fourth call XXXX. Ballantyne quarter December ended

Chief today are Major, On Ballantyne Financial Executive Roberson, Chief call Todd Officer; the Officer. and from Mark Strong

expressly and everyone in discussion no The definition current cause I'd GAAP this in any may to made except described website. as call. views uncertainties that measures disclaims measures. the on also be in and uncertainties remind will of obligation are statements today, non-GAAP filings. some available nature. release statements expectations also financial today's Before we section law. described These update and to the based subject Investor to company's posted presentation that Today's under forward-looking reconciliations contain results begin, from SEC and required forward-looking to and like to Relations risks as are references and in earnings company These the the and differ materially on is call are Risks of those on also statements obligation actual of terms to non-GAAP management's statements, the by are

call At by decisions. may this comparable measures making our time, to all not to now Our over non-GAAP review understand Mark. investment and to I'd other to those be we used companies, and you before the turn encourage financial any like reporting

go ahead, Okay, Mark.

Mark Roberson

was also go. and future. a Slides of positioning Thanks it busy Ballantyne and was thought and to be year. XXXX on plan joining today. and It we X. very pivotal a Good us are context where I will provide John. to might we I where everyone X a in for helpful Strong also the start on and bit afternoon background for thanks year a challenging Actually, year

the we Outdoor of of actively were completed calls transactions over you sale our Corporation operating businesses. that We've Convergent discussed months. six now XXXX, in evaluate past beginning Strong potential conference Some and to our to two we the the may monetize with remember

our MDI, Strong Following Strong comprised strong managed those recent operating services and business, of is business, Services. is our screen our primary manufacturing business, Entertainment which Technical transactions, now

allocated In holdings, core addition, Firefly, we have detail and a cover three few FG we Financial moments. in investment capital will to in GreenFirst, which more

We a million sheet of also balance raise in with net February for capital liquidity further enhance provide completed proceeds $X.X growth. our to and

to result, our As sheet flexibility stronger Ballantyne. much greater balance a we scale is have and

that see evaluating capital and of in operating potential plan number interesting and where acquiring to deploy investments Our we currently businesses is high opportunities. ROI a we're

and we COVID we've X, and the into XXXX pandemic the seen worst shutdowns second in continuing through half Slide navigated to of solid XXXX. related early mid-XXXX of returning momentum Turning the

new we the source period, agreements exclusive all IMAX Cinemark, for continue multi-year this and exclusive worldwide. During with we signed to be screens

on share premium and our leverage recovery our components the support more will to market we from launched we're have have as the With share is Theatres. to strong increases America contracts. by side, our IT technicians also them leader COVID. even managed our XXX% the screens. Operators and exhibitors be demand in reliability, a On an some in levels over China and theme indicator Slide restrictions and with On relationships is BrightNight well rather needs. profiled quality business business, both interesting as grow we're entertainment reputation continue MDI that and with difficult. the with presence Services our in It's the through MDI the positioned increasing across service returning, always market which cinema signed professionals, been U.S. than we two in Technical the prepared management to We've Marcus initiatives of that services screen there techs been of through are Strong so simply X, things our began see drive-in projected customer when which of our capitalize more low of industry. and degree sign as new the stand we outsourcing, the nearly a all overhead North the employees keep exclusive a the has personal point coming park that allows with meet services customers to to coverage then seeing The is are COVID reopening to agreement ability ease, is their program to Europe. What XX% with built decades across new the swing technical for well the in in to over trust a that towards services returned accelerates, Strong and of not we largest provider furlough, growing more higher rehire the industry. the pendulum and people

the As Cinemark we're reopenings QX. we major seen as the in and and QX began all supplier and to into exhibitors said, the building We've screen and we QX back continuing U.S. in supply orders early IMAX exclusive and production slowly

and presence One markets. Asian the European increase our objectives market strategic is in of our to and share

diversification simulator from demand growth see business. military We our theme applications, also provides core the and solid continue for Eclipse the for cinema screen, and to which curvilinear screen parks to

growth in those building look of out in or as and currently, people going at on activities a prospects back the as comments releases as bullish reopening ease, drink on momentum and parks a a get from pace new the for of the of the and as a for theme the quite exhibitors, post or the and cinema, you as vaccinations to deck well or public the large normal We're If pandemic. U.S. of lot slate excitement for restrictions for movie hospitality well general. meal entertainment the there's

rates things revenues from the the below our In to QX. also sign X, Slide and back recovers. getting revenue business revenues range, ran prior mill a in to the looking the of point entertainment ran has continue of people years, our to and more still been business it's well COVID from in doubling We're to our forward come back That good positive run refer back [ph] you historically levels. as XX generally see, XX% EBITDA cinemas to top-line and normal XX certainly future, industry in markets our than bouncing it's to normalize but normal our in getting low trend range. is pre-COVID in If with a as the the worst of

shares two transactions and FG X; Slide companies: combined have venture we our Firefly. XX% digital we common GreenFirst static of where strong and media, the where backed estate Financial, opportunistic oriented own related Taxicab is in one and real and assets an investments shares. company in preferred and publicly with to Advertising became traded approximately reinsurance, Firefly investments value equity FG we making digital our in with theirs We exchange over through investor Financial outstanding businesses. Moving for and private

indirectly timber Rivett initial SPAC FG example, of the the shares sponsor, transactions FC well has means outstanding will SPAC sponsor Rick the when the of Paul of as sponsor participate New economics Financial economics strategic and timber are and we own BTN the As the well-known its Doman Canadian America, in which where transformed successfully participate Canadian is approximately the completed their will its investor investment business. were completed. investors GreenFirst marketplace. that XX% common in and business of in an and the in one

grow GreenFirst that position for that position over Our now the has turn demand in call have to to reacted The strong review. continue business. price months. share I'll the and for the over six the positively of increasing to benefit lumber to past value Todd financial from plans With our

Todd Major

Thanks, Mark afternoon, good everyone. and

Before slides. of just note quick we financial get started, about these the presentation a

of these operations. sale XXXX As in of early a results to to of XXXX, segments discontinued the reclassified outdoor have business Firefly and the result August the financial in strong of convergent sale we the

continues and the the quarter Despite the decreased year only year. the COVID periods compared of operating slides the declines Next have Consolidated will full XXXX include operations. respectively includes during to XXXX and quarter of continuing few fourth results to the prior Slide comparison XXXX significant entertainment. profit to gross year. same and XX% margin of reference QX on a this XX% summary XX revenue the of impact to fourth strong XXXX XX% the increased year. to significant our pandemic prior compared prior in in in for to revenue; gross XX%

cost facility. XXXX. with the to to year, during measures significant Gross XX cash helped maintain to year and entertainment on strong SG&A declines XXXX. flat of reductions impact to credit via overall revenues reductions. have profits. of the throughout management end were challenges availability gross during offset substantial COVID continuing Lower can adequate in well summarizes was Slide cost expenses, sheet our This lows XX% Our to savings cost Despite Slide liquidity QX our decreased XXXX, expenses be as changes of the in balance the a and initiatives year-over-year. rebound the continued from On SG&A positive in QX compared profitability which even prior XX, of margin are some we December product to in XXXX, under able operations compared generated the from mix revenue. attributed as and as

value almost these August price performance the The of increased investments of portfolio, $X as cash approximately transaction $XX the in of while investments our at of in Group be GreenFirst end FG result the combined during as stock to the We was million and our end their was Firefly million. market our continued using value XXXX. a estimated Forest and additional the carrying investment pleased Further, Financial XXXX of investment $XX just over of Products with million to XXXX investment at XXXX.

of strengthen balance sale combined the proceeds in the to XXXX convergent end XXXX. to February of the offering significantly subsequent the addition, sheet early In stock from and our

a both of to obligations. reduction cash our as debt increase well position, lease our and terms in In as

closely business Mark. expense overall turn levels the we return we will me have improved operating levels. that normalized With our to Although back as we recently let monitor our continue to call to liquidity, more

Mark Roberson

Todd. Thanks,

forward goal with to build larger Ballantyne Our public going operating company a into is scale. Strong greater

entertainments plan and We also create the stronger. brand is value. trusted manage industry investment to Strong in to getting our holdings

demand post to our increased We in the we pandemic. services are the screen offerings business, leader expect see and managed

pipeline well the the well of cinema as entertainment in our for significant movies the tenants business. theaters U.S. that resurgence our over With in year; we're expecting as next for anticipated a blockbuster customers, bodes

with past liquidity We and down have all We have the with both the value progress growth feel their of over appreciation in for additional months. considerable assets these potential strategies six there road. unrealized is future which potential three investments, considerable made capital

build to a organically Finally, we larger have have. for now hand on that increasing considerably wrap-up With business, any enhanced questions our reducing both much acquisition. position, is through you we'll cash call our financial potentially may debt, the and and and open goal

Operator

[Operator Montgomery from Instructions] of Our the comes question Scott. Reiss with line Janney Brett first

may You with proceed your question.

Brett Reiss

new other the cash, things like just you gentlemen of that. that the some being want is treasury and pin questions. to Hi down assets cash ask to to equivalent for the bills that Thank opportunity situation. able – I the current is by

you have So about cash? $XX in million

Mark Roberson

in. We balance the for thanks the on posts had end After the of end we the the year. activity got a We've calling should year. XXst. about probably as post Brett, million after of it Hey talk the of lot $X December sheet transaction of

writing of on current the position company look right close the in the at the book. million right you low of $XX the If currently cash of cash year, twenties, we're the around after

Brett Reiss

from that's $XX plus secondary the convergence about what $X.X of And Okay. million? million the was

Mark Roberson

Off were were million was escrowed backs. Yes. $XX there Brett, that that a couple convergent million million. of whole $XX

a cash identifications of as that turn So next XX into over cash convergent piece there's the months will expire. the transaction those

Brett Reiss

Okay.

what the that year Now invested to went calendar was million million investments million, million, from – the $XX.X in $XX.X where? $X XXXX where $X

Mark Roberson

Yes. Absolutely.

Firefly $XX and investment formally – GreenFirst million which So the of of FG comprised The then of the million investment the remaining comprised Financial. million, Itasca $XX was current is $X formally FG GreenFirst, portfolio million the the current $XX Firefly, our partners. which $XX.X of is and is comprised and investment investment is Financial,

Brett Reiss

Okay.

do Now the represents? the million percentage investment what that you in total know Firefly, of company $XX

Mark Roberson

terms in or it's diluted of sits as between capital percent that a where terms preferred in approximately in give shares, of X% fully the know I the probably preferred. common double equity a it's of the stack of of take percent X% basis, on terms and Yes. the that the

Brett Reiss

know you what major do And And interest the Ventures Google Okay. shareholder? is? other

Mark Roberson

but you of you and can't three the tell between the exact their I of we're Ventures largest the largest NFX Google are Firefly. the share count and shareholders Ballantyne of three percentages, can us, shareholders. three that, I tell of

Brett Reiss

Okay.

you night, Firefly, with sleep see you what months? go with the of happen to what next happens to to when in XX would a wishlist year Now, at like

Mark Roberson

probably preferred be as where have to lot this to a And shares future, they've that's an expand wish on night, be than question. and you'd to they involving really is there get CEO nice I investment. I some event think in the advertising or but in my we in And think liquidity list participate good gain built him, greater metropolitan – list would would knowing and come point even public I them. has a COVID, in do Yes, I offering at near see of that some particularly certainly at digital ahead – a my network got Firefly of form at a their a think cities, Firefly them dreams our continue out growth liquidation have wish event the major of of with where -

Brett Reiss

Mark, Right, company sitting, now, the million $XX of right that's you're a amount cash fair for your money. hoard size, a

Mark Roberson

Yes.

Brett Reiss

guys to What your What guys going grow you'll of going things. or things you You leaning are are particular an I in acquisitions where philosophy cheap in more your to business? or Is introductory interesting a touched are little it process bit that? mix be is comments. it towards? going are Anything eclectic it? to it you of one deploy the own on you buy, is the mean, already operating of niche you that's area, very more investment your or attention focus to

Mark Roberson

Yes.

acquisitions ruling, obviously ROI necessarily and to a we weather the capital experience for residents not and scale within Board team see in experience entertainment we're have board with hospitality COVID, investments opportunities forward. coming specific we're its wed over there lines. and interesting of we and time. is of strategy with be cash within of drive have that through and domain a not leaving businesses and leverage be expertise our to good our flow across interesting those Our And high media, going is out quite our we might opportunity. that can looking – strategy we're that primarily a Ballantyne That management necessarily And the and that out think along and group the our businesses very good appreciation bit and and our could Directors. But vertical, some team

Brett Reiss

back I couple Right. I've but been there on these calls. questioners, back I'm thank going answering other but may have a my But so the queue. for of questions, you to because drop questions far. in do drop other be I'll

Mark Roberson

Appreciate Brett. you, Thank it. Yes.

Operator

Old comes Jon question next line Investors. Our with Long of from Meadow the

You may your with proceed question.

Jon Old

the call. Mark. Hey for doing Thanks

Mark Roberson

Hey John.

Jon Old

How are you?

Mark Roberson

you? I How are am good.

Jon Old

stuff. looking going to am to all through I forward [indiscernible] I'm this get

Mark Roberson

Good.

Jon Old

questions. Quick

on, a really big business the sort Just you possibilities where side. such that then as you period sort your before? a I groundswell businesses other couple and the you the the it European/Asian there nothing cinema where think or probably years? bigger. think the past other in demand sort market. even cinema bigger sort is a is been can might from as year see U.S. addressable going is the assume there's than make – we a Do place and Strong's that That's of over our with market do of me; big higher quick And – question were the that of the there's that domestic my you business. on And sense a spending part given the pent-up question of a surge hence capital business, on to return or of of on as

Mark Roberson

Yes. the I'll question with start last Yes. Jon. Thanks, first.

But Europe And far share we in certainly it's metric to grow hit as right a quite spring, of had very have North that same Asia, opportunities, time. bit market. before last order country Europe cinema in customer into market soon had market freely, effort our of to there We existing fragmented intend a with to we levels over customer as as we Middle of space, but believe well China, we'll service in to in to warehouse increase the opportunity we the logistics share think, terms we had China to think market that coming that little international that be number and exhibitor countries IMAX. ways. China, the a penetration of primarily is I I as compared as market Obviously with East as – and think there, in a the COVID intend and approximately American that there's a we out pause we're that there, we United to service COVID States that number that market. We size. improve customers small is more to terms our to more share screens between markets. planned in activity. provide in the sell growing which market. fast our market is well, better as in to room to open believe share increase travel in little improve we In a the China, in market. additional a to into intend considerable And proceed We our doing have in as put able in that able through base

are U.S. this half second the some of good consumer pent-up XXXX. the that into being large a into into terms as of bullishness XXXX return, the others, to demand in There's first released the listen of ball public given if of a AMC the is you crystal to we're as from tremendous now the and be particularly we IMAX out the be if and during of lot and a what primary also movies other going hearing, slated of were blockbuster with on from lot that and XXXX, and ahead half forward, restaurants comments our for pent-up have attractions because content, going cinemas, But on the second demand there's exhibitors, fourth in – XXXX Now the and and there's the intended base, and well year regards in thing. half like and particular the we quarter to cinemas see which what to backlog into looking XXXX

be be we I us. waiting back able the lot and in obviously more exhibitors they're this to normal we to terms the in for think cinema going they get a for the second are And there's the areas to with the much – going features think of real time open consumers be to going the content think – to going they're is into I theaters. And capacity, the drive good to the show, to issue have very as to being get still that's to the for but good very operators year, where opposite it's of by open be half to limited of consumers see. don't for

Jon Old

Right.

then And question quick a Thanks. Okay. I on Firefly, if could.

value our might any, be sort helpful? say little all whether mean, I things that the color a $XXX I Firefly and those they assume not or market What the if your any what doing they've know their Uber's just whether would and better, we it are prefer that range probably would own, worth value let's value, the fundraising of over any on taxis a and things sure So I'm if million. face done What – middle it's don't a more imply with in at are the I up reflects be value, as just they're I of picking current transactions, opening. X% What would but if metrics?

Mark Roberson

at obviously lot to available. I levels we're capital publicly pricing our Yes. raise that continuing private metrics you, on can in, valuation Yes. But, carrying they're it companies, they're to that I of a books the and tell same have so raise their and continued mean, we're invested not are capital today. they some

Jon Old

Okay.

sense isn't currently value of not there's hidden – there's a a sort So there's it's unrealized – – a huge of there not not there? not a

Mark Roberson

Yes.

in realized activity. will they I The realized their is have think value, event. and in capital the value then be raising when with there liquidity line current a value broader increase

Jon Old

to business I five Okay. really And one to a it's more look look and I it I mix long-term, is flows going an and my last years? be what business – Ballantyne investments. whatever separate going what of Or it just long-term, three an going more off operating making me, you've of in going or – buy Is operating just businesses? both, to like mean, then investments? and cash like? with long-term, is to for just one keep thinking of throwing Is more got feel it for minority strategically operating much

Mark Roberson

mean, we the and capital our from a into Yes. flow. with in greater scale opportunities and ultimate think greater portfolio, an flow appreciation Ballantyne investment build but really there's cash I standpoint goal company eventually tremendous operating was operating larger cash

Jon Old

Great. it. very much. you Thank Appreciate

Mark Roberson

Thanks, Jon.

Operator

line Our of from the comes [Operator next Instructions] Sam with SER Asset Management. Rebotsky question

with question. may proceed your You

Sam Rebotsky

Yes.

We have a selling Did that? holder and selling seems be or the their our discuss they about is stock, X% one that anything X% X% why are to holder new of we holder. reduced

Mark Roberson

too? I'm sorry, thanks you're X% Sam, holder calling which referring for Hey, in.

Sam Rebotsky

automat the to been XX% a than on selling that's more referring I the basis. regular

Mark Roberson

any of and I'm hold or XX% the parties, sales any Board roughly of insider Yes. aware from which the haven't there sales Management company. of Directors or the related not been equity of

Sam Rebotsky

public the offering? Did in they participate

Mark Roberson

an public there public would the – was offering. pure participation in They No. That third-party public was a not insider offering. –

Sam Rebotsky

Okay. to of escapes that sale… the trying just name – the me holder large I'm the think And filed for the of

Mark Roberson

who you I XX-G? talking Ariel, believe are about filed

Sam Rebotsky

yes, Yes, yes.

Mark Roberson

Yes.

account. They a in sitting manage their holder. their other in people time. they've manage They for long-time been has in money – long name the Ariel So, been a funds

share of base. probably which redemptions I'm they accounts, although their in up the I specifics the their sale, imagine unaware So of required them had lighten to

Sam Rebotsky

Okay. Thank you.

Mark Roberson

Thanks Sam.

Operator

line comes question next Our Mike of the Conan. from

your with question. You may proceed

Mike Conan

I'm and investor with And Yes, new position our air familiar here. military heard you simulators. in a a I'm nice our talk meet about Todd. them. Hey, force, you retired little Mark mentioned them? a Could I company bit to you, in

Mark Roberson

in yes, the screen our and that's at backup question. just a business a us new very that asking area for from actually calling Yes, relatively to a MDI That's moments. for – culminated – few thanks

screen manufacture if story we coating those group also that's allows been of Eclipse. wall, operations, our if as something and cinema Eclipse a more screen result MDI the you the we capabilities, from and a which screen to advantages Eclipse – all coatings our one structure own screen and the and – of folks of business immersive is one in theme the and or of and that – a of paints is all at our we on of of a manufacturing all properties you've a things our screen us that have parks short, IMAX a of of feel that like the imagine like that. of is on light the of strongly competitive product curvilinear. investment called one care flying in are overrides kinds very best facility experience It's from screens, other solid screen flat to used quality cinema have about part – industry long As an not the the a and gain our about. that others the Well, all reflectivity

our those products. – are kind the facilities in is structure structure enclosed large where of types of and this those used entire screen in You types can is coatings of imagine a a

more we've our MDI It's grow really of starting So again park those started that on geared been as that applications. product. years to a probably off deploying It's – towards to to four just we've And business. growing primarily take been ago. part three and been slowly be it's meaningful working theme

Mike Conan

Excellent.

Mark Roberson

However, used done being where installations with a of we flight in applications. couple military the simulator recently have it's

it's for about. very very So us excited new a aspect we're that

Mike Conan

the resurgence That you be Would more participate we'll able entertainment hardware a how exciting. think to a next or do year? consider in software? company you And is us

Mark Roberson

masters. cinema – want lot services in Yes, provide projectors to company of the as We're characterize both cinema a and the bit terms top They early I comes services They through a the managed working a we we're services the simulator and theme working we but a a equipment screens is want we're gearing the military we people ourselves as want believe everything And be or perfect. And that coming and the audio and offerings. goes on a a we're with definitely side, June sell don't of cinemas. do, as of to businesses, software everyone to I business park ready not certainly be as to our what rebound properly. would They come more we services properly. little probably particularly be out goods gun up in be software, you company. STS do the those out managed for But the when hard new cinemas company lot when software July There's releases. into most effort preparing of back to ready a in and the projection hold company. equipment the see

some And their So, result a for services. we increased exhibitors, us of see use outsourcing start us service cinema on the to as resurge, supplement techs COVID, maintain they a that as degrees. and demand another staff use And they the either then of as for they or some our staff. cases, varying large internal in we'll to purely cinema see element to

Mike Conan

Excellent.

Mark Roberson

re-staffing those intentions lot COVID of service COVID. to now they've were seen with to internal we've the of appear techs are don't through no up that is thing a One that large lean those gotten longer exhibitors with have companies. they And

outsourcing a for providing more lot a those services our tech see service to network. expect we good So place be we're in to outsource through and obviously

Mike Conan

place core your participation talk the over competencies Super. you would heard finally, time? versus investments of you the And then these mix I about other where

Mark Roberson

sorry, you that again? state I'm can

Mike Conan

on of mix participation income do of core one of the about two investments How versus what The different competencies the Yes. investments. – the on be those other? sources side would talked percentage you or three your

Mark Roberson

grow Yes, see within and that significant I investment also I revenue, more significantly, our opportunities future businesses do terms but driving appreciation expect in mean, liquidity cash capital but operating we'll flow think there's think well. and I as the of much I portfolio

Mike Conan

Excellent. Hey, sir. here, some serious gains to I'm looking forward

Mark Roberson

thank Thanks Appreciate it. Well, in. calling Good. Mike. for you,

Operator

question next of [indiscernible]. line Our from comes the

your You may with question. proceed

Unidentified Analyst

I two guys. Hi, have questions.

Mark Roberson

Steve. Hi,

Unidentified Analyst

What secondary the You behind Hi. Convergent. offering? the sold just was thinking

Balance cash. looking stock need, You better. immediate trading. No had was plenty of sheet was

hammer that You on into it stock they at have that three if stopped I below an trading any know Why above was Do point in any stuff not had the I in and – on on you December. that did value. like if situation? stock plan. put plan the under deal don't just Second the well do Fundamental color you It or very the out. just it Why book the Global's marketplace? question, ATM, of out canceled XXbX. color was maxed know shares buying amount think what seemed XXbX they their don't happened dribble

Mark Roberson

was I hit expire on not canceled yes one, Yes, limit and was believe it early. the out. XXbX due first It to its out. believe, – I it the maxed being maxed

shareholders obviously capital the in are raise, the company. and mean, meaningful the I management board On

sheet in to is we And that and ways competitive advantage. larger company stated, strong issuance and can shares public But time. balance be powder long-term we've profitable is we And So are there having the goal, that. there seriously. dry much execute a order get over to as take very our accomplish a to more of multiple really a

to it the on it's sold nice the we have Convergent felt balance balance and those sheet order we order execute that to in sheet. So proceed like more, we But we more was capital improved forward. significantly believe appropriate plans, to in on –

Unidentified Analyst

Got it.

As sleepy didn't kind prices? that FGF, I from having well its mean, went being company value liquidity you – It intrinsic was to definitely people collapsed. stock trading is as it it elevated reason any that into company, at especially runs rarely some Any has the main very above holding try of those that far traded a and real huge take sort FNHC, of at the for advantage monetize had as something, took of volume that up. and

Mark Roberson

there is on the feel them like being of there things and within think within actually within would we participate time. realized going FGF appropriate like to going continue we can FGF created in in. we Well, that yet investments monetize at our are value to not certainly things We all Yes. that that

their sale shares a in plans best hammering probably their investment not our the in interest would be of So, with as well. or

So, I afford to patient. think, be we can

are the will now. getting to them hopefully through investment on the things obviously rise FGF They're direction. hopefully good forward a behind right that there in terms flow and from But positive continue their think and and move in for participation. FedNat of that's I

they're exploring on think has alternatives strategic FedNat I that announced their own.

I those it's think come see them? a we a both So, we'll again, opportunities interesting And have sell both for that of goes. to positions times, where few investments. in monetizing them. FGF, just believe well, with we're we little to bullish regards has appropriate give GreenFirst our question those, ahead and up think, them those to – valuation those order very that time And more don't still the on of those in and But why you maximize

Unidentified Analyst

down to FedNat they're Yes, them direction priced. really trying I they just on announced the the sell. unfortunately unfortunately I massive haven't amount before a which for so. of bottom have chance they think Yes, next with hope is out the to they secondary, And stock

little going more, turnaround hopefully even value the dilute the just that's Thanks. can to things Appreciate but So we bit. and monetize it short-term it. in a

Mark Roberson

Steve. thanks. Okay,

Operator

with Brett comes next from of Montgomery Scott. Janney Reiss Our question the line

question. with may You your proceed

Brett Reiss

Thanks for there a couple follow-ups. a Is of a lot allowing break… me

Mark Roberson

Yes.

Brett Reiss

number flow can breakeven share where there with that cash revenue can Mark, you us? a at operate we is breakeven

Mark Roberson

Well, I would way. put I this guess, at

given to that the like for this and and business, as EBITDA our in the less breakeven, we'd entertainment in space into if Obviously business, COVID time. XXXX, things way in to to it where where moment during even XXXX a that during be what's going from the it's we're manage the But obvious performing the currently going still it's look continuing not or of business business a you year it is a able avoid at be it's were at obviously all, due from quarters middle entertainment the on cinema now. of and you second at more the worst rationalize whole bleeding in and to worst although several early the half operating look If through of of to which and COVID our on that restaurants quite think cinema what's COVID testament occurred of bullish I and able or and in to year reasons pandemic. this they we're of costs cut

of it's breakeven So, kind now.

coming million doing pre-COVID look better, it adjusted will hopefully tell. was Pre-COVID to time $XX so million or in million and it I we EBITDA. As $XX back X to forward, see revenue of levels,

to The in other corporate public is company we and aspect addition overhead. costs have of – corporate that that

pretty to over anticipate to taken years. that a another cut XXXX. out of we've the We've of And chunk three we two couple from taking XXXX. significantly in out past XXXX overhead of corporate corporate million Our overhead

down the see you'll cinema see as So, overhead corporate go continue to we business resurge.

So your that I hopefully question. answers think

Brett Reiss

overhead what run looking Well, rate right. down aspiration get you're what and the do corporate corporate it Right, wise on think you to to? is

Mark Roberson

million, overhead to million Yes, XXXX, and reaction around of We of non-cash. $X of did of in right lot we've already a works a corporate through was XXXX coming levels. things out it two the COVID to that's Total ago, the million, corporate of $X to it years restructuring. finished significantly. further some lot that COVID, reduced to a million $X We running reduce G&A three we're accelerating overhead cost-cutting, did

million $X G&A. million $X to of roughly So cash

Brett Reiss

Right.

Mark Roberson

easily to have And, as believe of XXXX. million take in that $X plans $X million we'll place, based the I that out number said, in another on we I

Brett Reiss

taking appreciate one How cinema could balance issue you could some of customers Is And to your one. of and in And – you're do diligent have on do you right. there vigilant through I to some have all them really Right, work be that? any sheets. challenged questions. my selling that final counterparty risk of

Mark Roberson

extremely concerned was of who on going year were We've inability we May been and not going when get about receivables to the very We've work we've And little were and than probably have we are during well, who with to and we we're we took in in that. Particularly more any XXXX, pay. the no been and to about some we've the the we time. really – had actually had pleasantly exhibitors. here Yes, very we had the where if XXXX really just first even coming going before. pay in early concerned surprised is quarter paid April actual to almost sitting ever of that reserves terms, had of COVID. provide to write-offs We've company some collect had but collection through in part write-offs

So, the exhibitors think see industry now balance a the during And their continued I coming an preparing it has cinemas. at their that people recapitalized They're that what's times. I'll for been themselves generally and return as bills. where to look have It's of sheets. pleased pay lot people even I've to these

So we're vigilant. always going be to

pretty We to positive. been but so vigilant, experience has continue have be to far the

Brett Reiss

go And please, answering my dinner. you have guys should questions. and for you Thank some

Mark Roberson

you Brett. Appreciate you Thank so calling, much.

Operator

for of back Mark session. I like Ladies call reached Mr. today's closing to would this and to turn over remarks. Roberson end gentlemen, we have the question-and-answer

Mark Roberson

joining you today. thank everyone Laura, Okay, for

follow-up reach I'd happy If free be would feel you questions or have to and with just certainly to a you. like speak well other out

contact information is have and thank everyone evening. the a well good you release on And Our as earnings as website.

Operator

today. This concludes Thank today's you for us conference. joining

at You rest evening. of Enjoy time. your may this disconnect the your lines

FG (FGH) 11 Mar 212020 Q4 Earnings call transcript