BTN - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Ballantyne Strong, Inc.

First Quarter 2022 Earnings Conference Call. All participants are in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note this event is being recorded. like Investor the Relations. would Jennifer over I IMS Belodeauof now to call turn to And Thank you.

begin. may You

Jennifer Belodeau

Good afternoon. And for welcome to Ballantyne Strong's quarter, March the earnings ended XXst, XXXX. first conference call

Mark the today available Investor Ballantyne Todd call on Chief There that the slide Officer. Ballantyne Relations also Financial Executive referencing management the On will Major, Strong are be Strong Officer Roberson, website. from and a presentation of is section Chief that is

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

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

Mark Roberson

Entertainment ago, joining call a a about month our today. our our positive were business, Jen. On half afternoon, the call as well Thanks in the equity discussed we as in everyone holdings. momentum thanks seeing and Good and we year-end

for a PowerPoint, quarter. and be recovery I'll QX reopening strong to Slides Revenues year year. is along XX% following XX% X double more continuing robust EBITDA to We're Resurgence outlook the XXX% current in Cinema witnessing results increased than where through start from and last off on This business the X the the a improved revenues from to are $XX from were If go you for the on strong. start are with while they quarter to operations and in continues Cinema flow-through just million, Entertainment over to space. and

year those As we continue look to this ahead trends expect industry the to and we provide should of rest backdrop. favorable beyond, a

X. through to X Moving Slide

numbers. are several was thought from coming thy from tradeshow, exhibitors with coming as share gains strong results in Number the and large breaking reunion and would finally office Box level are the the working revenue added with couple like to years, both back addition CinemaCon from weeks our you. been all large also Over optimism recently, our revenues was growth. I to Strong continued Cinema be expect in with from customers, and most contributor theme annual and our the as Vegas past increased which the are to records. there conference And generate back There and for we streams and content we coming a referring exhibitors tangible useful the parks diversify But simulators, of immersive hard Las confidence that addition gathered industry forward. together to together we've of which line, Two the ago, studios is the in speakers. well and in Cinema major meaningful were for product of in Studios, a to Entertainment to And numbers. were back people a Eclipse business. rebound X, going key

This the back was the instance, have announced for ever. this from largest the Strange to reported office Doctor weekend, was Cinemark, box Sony reiterated and last they was up past COVID XX. Way the largest revenues through Yesterday, IMAX second voicing large over the and record audiences drove experience. commitment Home in Spider-Man, which their that cinema this box the billion since of started. CinemaCon, all office. $X we're March to this at were opening last opening setting global year, Studios major generated AMC X, weekend sixth CinemaCon performances. to August No united theatrical

all have to reality Without that multiple was studios profit when of there well-publicized and the window. can experimentation strong bites generate blockbuster COVID, day the they theater. their a other direct a Apple and and streaming create exception, theatrical lot commitment releases opening more of the to in with with models. During expressed major releases the date the And revenue

Three, customers, as cinema just past exhibition had for it’s the years the weekend, leases up, new as and of evolution numbers. continuing mentioned that coexist, welcome open in optimize year coming For of the that's We this use, projects. revenue opportunities and obviously Strange backlog we really future is this just enormous. part strong blockbuster Doctor and each streaming really

Toy there our of out Top And Mission Thor, of Black more then to to rerelease slowing And Impossibles, Flash, December. of the word continuing of the follow. Lightyear Way this the followed in Cameron production down. to month. coming projection. again. another have working lineage. content [Indiscernible] also drove we latest of it the by the that exhibitors year already sequels upgrades, And ago as [Indiscernible] close Jurassic that in show businesses returning, the won't out Avatar will out XX be came Story just September, James seeing upgrades this original And are additional Venom, doesn't first end any Panther, reinvest has as to announced is Transformers, recall, are on And industry the I in We We a you that the when couple will Avatar to also name. Avatar sequels of new laser Aquaman, Gun have look production there signs got Buzz And try which out. meaningful a completed many years Park, you the or AMC which Water, is three confidence if Avatar, new we'll will the starting major

As also would this middle represents year. their the a first also we well. we're longer of Cinemark, in phase the screens to cinemas supply has And to to upgrading half AMC all give support where of experience are believe supplier back invest of basis, cycle. exclusive as the on to you the them committed laser and may exclusive of recall, of the we We the they round excited premium best bringing first their in audiences. upgrades expect this as

coming well-positioned. with out reinvest Industry So we position, of that we're beginning with and COVID feel leadership and to our

Slide Eclipse in more projects The paints our for projects continued been recently, that business Moving and line. and XX, over has over the have explore perform Eclipse screen nice and product well, our to we coatings coming on completed awareness continue immersive Navy demand to couple unique that's application services additional several a to simulator two with We've again, our we're addition. is in of smaller And one the up. for Eclipse seeing of the and but creating business we're XX, business, getting years. just part next the rapidly slot. pick potentially started marketing screen also line really a faster-growing market and Slide On is

striving pre-Covid to work contracts recurring levels now, Our seeing projection maintenance are with We're starting prepare of as also also are customers. and and the up We're starting business for as to and exhibitors to become and and improve shop back existing revenue increased share one-stop our to project the sales to installation audio equipment upcoming for increase are pick upgrading releases. demand consumer a of broader experience monthly well. our

revenues of management really for a haven't past. and installation as broader we support example, a to well as Screen the complementary upgrade as in Which array boost With should laser done project projects. we activities working the our laser upgrades for provide the capture we're that Service

Moving XX XX. over to Slides to

With of growth the the business driver new excited opens launch the add line to for This up we're the a business. this announcement of quarter, content Strong to new of brand Studios group. Entertainment in the

Soup you projects They're production on the greenlit may in our to those plan already discussion, to portfolio We from ready projects recall deal. twelve As acquired part months. the from and year-end of two start go. as we a coming Chicken last of of

a projects, those two distribution million we've minimum for For guarantee delivery. licensed $X revenue the upon return media screen rights in to

term financially value. overall disciplined utilizing both and while time manner. model to the dissipation build a well is library, be with library do secure Our content the content Studios Strong business funding goal -- We'll our to pre as near-term is building in production as we're so out creating to and -sales revenue and co-production and longer to over build

holdings. equity about Moving slides over we'll talk XX XX, and to

to and In Products, we might its Financial acquisition. in XX.X completing addition GreenFirst for operating add view the companies. in to both announced We I the recently We their in entertainment they largest equity positive profitable Firefly. GreenFirst stakes a hold GreenFirst quarter, uplisted acquired stake lumber own first business, Forest indicator since shares FG reported capacity common a GreenFirst. of lumber Again, three FGF. which central was is GreenFirst, which America, Interfor's Canada is the just believe hold a We and SPAC well continued GreenFirst. last is a XXX a in standpoint as its expand longer-term. producers produce current TSX. producer lumber well we supply Canada, place in reinsurance the believe in X.X XX% great as with to million leading as that million GreenFirst in [Indiscernible] of one cycle, positioned, Interfor, over in shares from FG investment at million week, platforms. Financial had North as at holding the long-term the And

third supporting SPAC IPOs. IPOs and strategy. are quarter, During Those completed FGF the the fourth FG's SPAC two

Aldel December its New in combination its back combination with you OppFi and completed America July. recall, with FG business Hagerty in completed If

contracts deploying reinsurance they entered business as two Additionally, well. FG's into to new capital patiently and

the of revenue -backed where and well costs revenues operators their and fleets vehicles to they advertising so subsidize advertising We purchase in-car, announced when subsidize earn is they're Hyundai screens partnering Firefly the that and drivers. company. also for generating continues will the enroll can shares to drivers recently Firefly, the Firefly's They purchase program with in of on-screens new innovative. fleet which car. be drivers the Firefly post-COVID a of to program Hyundai grow professional new continues VC the to private hold installed, as as as

relationships position as Just scale. intending to another their Firefly's strengthen driving as build way that their well and

eventually we quarter. looks continue through and us don't you they holding upside for potential Firefly us can the walk why down significant formal and grow Todd, [Indiscernible] event, the As road. towards to a the deliver believe

Todd Major

profitability and good prior the operating recovery up XXXX revenue QX to year. Strong over results products and consolidated continues. everyone. sale as each comparison of from meaningful a from industry-wide to and the Mark summary contains the XXX% Entertainment results Revenues were a COVID year. afternoon increases compared the Thanks, of saw Slide XX prior in services

While equipment year-over-year being primary gross including percentage was with dollars than roughly margin doubled and higher gross projection sales audio as also of shifts of margin sales more and mix, product flat the driver. a

you from of GreenFirst the gain value would in QX. million of sales As continues significantly an of a are fair which mentioned we've from increased EBITDA, from adjusted the past, as our unrealized up. to efforts excluded industry some Holdings calculation of QX, $X.X our unrealized as equity uptake seeing our on also the holdings in we're marking to marketing gain in equity open value during expect, also resulted benefit the our and The

business capital Entertainment million over from most outperformed see second during Moving we're profit only the recent XXXX pleased sequentially the of and a and benefited quarter did The to Chicken and of is the retention employee we're deferred receivable. as the of removal quarters. quarter, to payment and and the Ignition right-of-use Digital Studios payment sheet the acquisition improvements in of QX trends with to projects [Indiscernible] increased purchase related primarily income liabilities XXXX. flows equity slide operating XXXX during well. appreciation $X.X Strong offsetting of and the revenue prior the QX is increase Overall, recent and the trend by up for liability turn of prepayment deliver is end Strong due quarterly XXXX down Not of and partially third &E the a result from the as increase with of year lease the of the offset the purchase to in we a were XXXX the an the of December taxes to first and Entertainment financial the asset back decreases other used as credits. The building call wraps XX Soup PP which connection last by cash Slide year, XX, holding. resulted also previously of on our summarized encouraged receipt now a of of with strong building leased, primarily and in which the the Ignition I'll the and five Gross the Digital of and operating of an recognition GreenFirst in deferred end long-term for Mark. of debt. operations were in working Cash which XXXX That balance Alpharetta, QX results combined business. the the the since note review,

Mark Roberson

Thanks, Todd.

has the that enthusiasm starting SB from upside growth of released our projects that, appears up COVID, overall summer. Firefly, [Indiscernible] accelerate. we'll business have hearing the question. be line Studios, And GreenFirst Our turn Financial, With we and any value in this momentum long-term major of by to for increasing. engines addition as to from the off -- adds sustainable and open kick additional this. entertainment now now holdings has with industries additional customers an With Supported we're Strong accelerating to as been emerging

Operator

[Operator We Reiss momentarily go our Instructions] our begin question first comes Brett will ahead. with Please assemble session. the from Janney. now will And answer and roster. We question to pause

Brett Reiss

Mark. Good Hi, Hi, quarter. Todd.

Mark Roberson

Hi, Brett.

Todd Major

Hi there.

Brett Reiss

hi. Yes,

Mark Roberson

in. calling for Thanks

Brett Reiss

device tailwind to that you, money. the Yes, the lot tailwind a top Lyft advertising you incremental revenue Uber Uber more Can and car a drivers Lyft and that of sales is is read sure. the on the ask for because that enhanced drivers? for the I Firefly So on Is have make with Firefly? a

Mark Roberson

more increasing certainly like and part drivers, I thesis that's by well. else, think money. and fare an And they've the of vehicles got mean, gas get utilizing just one believe squeezed utilizing ability great is things advertising that vehicles. they they've ways everything And than another more prices deal by do by they're to drivers they just those their end make do that important -- so other the how is for app great is I can I as Uber can got Yes. to of the that these of and example with Hyundai that, with the program. the it the up fleet setting through is This and coming for the their reach of on that and just way front they're a Firefly they expanding of partnering purchase a

thesis. an we So, yeah, think that's important part of Firefly the

Brett Reiss

Great.

On flow the generate cash run rate, million revenue we $XX quarter? positive this did

Todd Major

bit Cash was flow use. a operations from a of

XXXX some We we during revenue to cash the have year. end end deferred of we the recorded had of received prior quarter. We've revenue a that in the the at recognized that

Studios down Ignition the where about from $XXX,XXX acquisition So our an $XXX,XXX on that. payment also there as Strong then bit a we about was purchase. little from payment use paid the also during we a standpoint the that operation quarter. purchased Digital of upfront had we Then And had buildings we

those use million $X.X against received $XXX,XXX all from There So we $X.X to during netted not the all or about combined overall quarter. operations. $XXX,XXX was was of the net. that million sage actually But of

Brett Reiss

pretty the Okay. expect that's the up Europe. from see to And something Is in thoughts in that incremental horizon? we company is soon often with or the revenue soon, initiative Belgium that

Mark Roberson

it because accelerate reopen -- is to cycles start may a little the It's Europe and bit than slower a in Brett. U.S. seeing soon, fairly to upgrade start will It start we're their slowly and

be to in summer, do expect as with facility we very and working the now start rocket, able we can from shipping and soon expect late actually like aspects logistics don't or fall, start on that it start so soon them the but that other as So it we fall. to we're

as So quick that recovery to in where position those and starts beachhead that as post-COVID Europe give will share a faster allow Europe much ship much service a us market well. economically more can in start market to to really and increasing customers accelerate establish we their us good

Brett Reiss

which revenue net quarter-to-quarter, margins net see. very net doubled on higher your product your nice the sales I Because Are your service see was on revenue? or service to

Mark Roberson

Yes. difference of It They your product straight because -- a is also there's really, of there's depends mix -- the on potentially the in it lot a answer lot to products. lines. product question difference not a

our nice Our services very generally margins. carry nice carry screens margins,

We products products have other distribute we that third-party distribute margins. lower we that are

So we're margin fairly contributing tick item. depends see really you the obviously service up. on generally the consistent. percentage it we're see is drop, the revenues may within on you'll margins line but mix dollars heavy are on distributions, If product heavy screens, and sales product our that If

Brett Reiss

pricing may, All prices with respect give you the not want right. be market to it and you it use to are better you ago. and how I because One for of the able versus may answer, await if I'll you going that weigh to but forward holding do for? it's something conditions, IPO, lower money potentially perhaps do more and off what With

Mark Roberson

we're that are to limits specifically publicly But we filed the and Yeah, regard have I I to IPO. with SX. Obviously, the week-by-week. what say say can evaluating is the there -- can what that

will SX We will that QX the first week week. those or shortly at here be because end of updating go next numbers this of stale financials with

the we'll say be is, get conditions we about could IPO SX really to we can ready the this where be QX, are to to of position that once with the of to appropriate. all point obviously a at we're timing going go. So SEC launch in carve clear at as market terms such That's I at time it it in updated financials, out has and point,

it's start objectives and want certain we'll right, moving when forward. to we have We achieve

Brett Reiss

Good step questions going you for my Thank quarter. you. But to thank and all I'm back. right. All answering

Mark Roberson

Brett. the Appreciate call. Thanks as always,

Todd Major

you. Thank

Operator

Frank Please question from the And Instruction] comes with Barlow next Jones go [Operator ahead. Capital.

Frank Jones

for my guys. Hey Thanks question. taking

So Studios, a expect and like a revenue how color into over -- could Strong more rough -- frame a $X I expect on you was wondering, of specifically to little little there the little kind a be? realize Do you insight more that provide what the how million. you maybe time would

Mark Roberson

Yes. the Thanks timing, -- what too the projects, we're should going to be these Frank. will Crackle get is much specifics in I'm late you be plan question, as that. have under Chicken distribution would the I that projects on early maybe there I to Because a summer second model proceeding other distribution that for with projects. as just acquired up detail Chicken quickly projects Media, the and and well. million and projects, guarantee precise which not Sure. $X on into those on tell Screen they'll XX on to explain production is on first Soup, one fall acquired then we from Soup, of represents -- from network. one, and how first where mid-summer beyond Two are and we back that, of But these it when what but as works, the we helpful it's two the they'll arm distribute revenue license minimum them for

for the that's series we for projects, -- that's would we receive would at available them recognizing minimum So anticipate guarantees each their the the and when exploitation, those so of that that to we revenue. deliver time of when those revenue each it's

projects next in XX launch the running into out be year. months, next But are -- model, head can from that it and fashion generate business gives a it to pipeline risk a to as X of be Those that this employ we and those stage. prior that utilize excited production with a recognize fairly in in those for have within very expect then from to get starting projects to business. So to could as revenue to occur we taking of the deliver light, we're revenue, they possible capital not likely and would revenue a similar And could able us we projects. right able doing distributors before financially participation. We're year or just obviously to term guarantees revenue so certainly episodes other gate But those on early disciplined we hit waiting building a start both not nice of to It's about slip to where generate do ground projects. a to those that the plan anticipate near-term the of we longer well we lot the producing for with a start [Indiscernible] building other business, we're and of the And out on working the lot the projects. two we're revenue projects we opposed year. these as to

some answered So question, I background but hopefully don't your helpful. that's is know if that

Frank Jones

much, Yeah, you. helpful. you Thank very me. it that's very yeah, for that's Thank

Mark Roberson

Thanks. right. All

Operator

We have no further questions.

will and the session, So conference management concludes this to closing I back any for our question-and-answer turn remarks. over

Mark Roberson

Thanks, dialing listening everyone in the and to for call.

have If forward the either and any you other that feel myself or Todd, you in again after to to Thanks. shortly QX August. we to talking free call, questions report to when do up look come reach out

Operator

has for conference concluded. you disconnect. and The may presentation attending Thank now today's you now

FG (FGH) 12 May 222022 Q1 Earnings call transcript