Ballantyne Strong Authorizes $8 Million Share Repurchase Program
December 22 2011 - 8:45AM
Business Wire
Ballantyne Strong, Inc. (NYSE Amex: BTN), a provider of digital
cinema products and services, announced today that its Board of
Directors has authorized the repurchase of up to $8 million of its
outstanding common stock, or approximately 15.2% of its market
capitalization, based on current market prices, and pursuant to a
plan adopted under Rule 10b5-1 of the Securities Exchange Act of
1934 (the "Act").
As of yesterday’s closing price of $3.63 and based on
approximately 14.5 million diluted shares outstanding, Ballantyne
Strong had a market cap of $52.6 million. As of September 30, 2011,
the Company had a book value (total stockholders’ equity) of $61.1
million, or $4.21 per diluted share, $22.4 million in unrestricted
cash and no long-term debt. For the trailing twelve months ended
September 30, 2011, Ballantyne achieved net revenues of $178.2
million and net earnings of $11.1 million, or $0.76 per diluted
share.
“Despite solid financial and operating performance, Ballantyne’s
shares have been trading below book value for some time. Based on
this valuation, Ballantyne’s Board has decided to utilize a portion
of our available cash to initiate share repurchases, which would be
accretive to both EPS and book value per share,” stated Ballantyne
Strong CEO, Gary L. Cavey.
“Importantly, this action is not a change in overall strategy as
Ballantyne remains committed to seeking opportunities to grow
organically and identify complementary acquisition opportunities
that will leverage our expertise, market position and capital
access,” added Mr. Cavey.
A plan under Rule 10b5-1 allows a company to repurchase its
shares at times when it otherwise might be prevented from doing so
under insider trading laws or because of self-imposed trading
blackout periods. A broker selected by Ballantyne Strong will have
the authority under the terms and limitations specified in the plan
to repurchase shares on Ballantyne Strong’s behalf in accordance
with the terms of the plan. Because the repurchases under the plan
are subject to certain pricing parameters, and other regulatory
requirements applicable to repurchase under Rule 10b-18 of the Act,
there is no guarantee as to the exact number of shares that will be
repurchased under the plan, or that there will be any repurchases
pursuant to the plan.
About Ballantyne Strong, Inc. (www.strong-world.com)
Ballantyne Strong is a provider of digital cinema projection
equipment and services as well as cinema screens, motion picture
projectors and specialty lighting equipment and services. The
Company supplies major and independent theater chains, top arenas,
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’s expectations.
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