Ballantyne Divests Legacy Film Handling Equipment Subsidiary
December 11 2007 - 8:03AM
Business Wire
Ballantyne of Omaha, Inc. (Amex: BTN), a motion picture projection,
digital cinema and specialty lighting equipment and services
provider, today announced that it has completed the sale of
substantially all of the assets and liabilities of its Design &
Manufacturing, Inc. subsidiary to Brian Hendricks, the subsidiary�s
General Manager. Terms of the sale were not immediately disclosed,
however, including closing costs, Ballantyne anticipates taking a
charge of approximately $0.2 million in the fourth quarter to
reflect the sale. With approximately 45 employees, the Fisher,
Illinois Design & Manufacturing subsidiary is engaged in the
manufacturing and sale of traditional film handling equipment,
including replacement parts, and also performs custom machining for
other industries. Following the sale, Ballantyne expects to source
its film handling equipment and related replacement parts from
Design & Manufacturing, Inc. based on an agreed-upon pricing
arrangement. John P. Wilmers, President and Chief Executive Officer
of Ballantyne, commented, �The divestiture of this subsidiary
reflects the strategic repositioning of our business for the
substantial growth opportunities we see for digital cinema
projection equipment and services in the coming years. The timing
is opportune, as we have further reduced fixed overhead in our
legacy film projection equipment business as we prepare for the
accelerated rollout of digital cinema anticipated in 2008. Brian
Hendricks and his team have done an excellent job with the business
over the past several years, and we look forward to working with
them in our new role as a customer. It�s really a win-win
transaction for both sides.� About Ballantyne: Ballantyne is a
provider of motion picture projection, digital cinema projection
and specialty lighting equipment and services. The Company supplies
major theater chains, top arenas, television and motion picture
production studios, theme parks and architectural sites around the
world. For more information visit www.ballantyne-omaha.com. 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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