Ballantyne Strong, Inc. (NYSE American: BTN) (the “Company”) today
announced financial results for the third quarter and nine months
ended September 30, 2020.
Financial and Operational
Highlights
● Convergent profitability improved with
continued growth in recurring revenue
○ Year-over-year segment gross margins
increased to 47.9% from 32.4%, segment operating income improved by
169% and segment Adjusted EBITDA grew 88% to $1.7 million
● Strong Entertainment began to see
meaningful signs of recovery as cinema exhibitors and other
entertainment operators began reopening worldwide
○ Revenue decreased year over year due to
COVID-19 impact on cinema
operators
○ Sequential revenue grew 113% from the
second quarter 2020 to the third quarter as exhibitors resumed
operations
○ Settled business interruption claim,
resulting in a gain of $2.7
million
○ Signed multi-year exclusive agreements
with Cinemark and Marcus Theatres
● Completed sale of Strong Outdoor in early
August
○ Investment in Firefly increased to $13
million
○ $5.3 million primarily non-cash gain
recognized upon divestiture
● Cash flows from operating activities from
continuing operations for the first nine months of 2020 improved to
$8.2 million from negative $1.0 million the same period in the
prior year
“This was a busy quarter for Ballantyne Strong,”
commented Mark Roberson, Chief Executive Officer. “We continued to
grow our recurring revenue and profitability at Convergent; began
to see a strengthening recovery in Strong Entertainment as
operators began reopening worldwide; and we completed the sale of
Strong Outdoor, exiting the outdoor advertising business.
“The sale of Strong Outdoor was a significant
transaction providing us the flexibility to more fully participate
in the upside potential of the Firefly business. We now hold a $13
million investment stake in Firefly and are one of their largest
shareholders behind Google Ventures and NFX.
“Our continuing businesses, Convergent and
Strong Entertainment, both gained momentum as we progressed through
the quarter, and we’re excited to continue building on this
progress. Convergent posted a 169% increase in operating profit as
compared to the prior year as a result of the growth in DSAAS.
While Strong Entertainment was down compared with the prior year
due to the impact of COVID-19, we achieved substantial sequential
growth compared to the second quarter of 2020. It is encouraging to
see customer orders and overall business levels strengthening since
operators began reopening their facilities in August. We expect
those trends to continue as we progress through the fourth quarter
and look ahead to 2021. Furthermore, Strong Entertainment has
recently signed new partnerships with leading cinema operators,
enhancing our leading position in the industry. We entered a
multi-year nationwide managed services agreement with Marcus
Theatres, the fourth largest cinema operator in the United States,
and in October we signed a five-year exclusive worldwide screen
supply agreement with Cinemark Theatres, the third largest
exhibitor in the United States.”
Third Quarter 2020 Financial Review -
(comparison of continuing operations to prior year
quarter)
|
● |
Revenue decreased 36.3% to $9.9 million from $15.6 million. The
decrease was primarily due to the impact of COVID-19 on customer
demand for screen products and technical services at Strong
Entertainment. At Convergent, growth in services revenue was offset
by the effect of large non-recurring installation projects in the
prior year period. |
|
|
|
|
● |
Gross profit decreased 37.6% to $3.2 million from $5.2 million for
the quarter and gross profit margins decreased to 32.8% as compared
to 33.4%. Gross profit decreased as cost reduction actions and the
expansion of margins at Convergent were offset by the impact of
COVID-19 on business at Strong Entertainment. |
|
|
|
|
● |
Net income from continuing operations was $1.0 million, or $0.07
per basic and diluted share, in the third quarter of 2020, compared
to a net loss from continuing operations of $1.7 million, or
($0.11) per basic and diluted share, in the third quarter of 2019.
Net income includes a gain of $2.7 million from the settlement of
the business interruption insurance claim in the third quarter of
2020. |
|
|
|
|
● |
Adjusted EBITDA was $0.8 million compared to $1.3 million in the
prior year. Growth in Adjusted EBITDA at Convergent and reductions
in corporate overhead were offset by lower contribution from Strong
Entertainment due to COVID-19. |
Conference Call
A conference call to discuss the 2020
third-quarter financial results will be held on Thursday, November
12, 2020 at 5:00 pm Eastern Time. Investors and analysts are
invited to access the conference call by dialing 855-327-6837
(domestic) or 631-891-4304 (international) and providing the
operator with conference ID number: 10011742. Please dial in at
least five minutes before the start of the call to register. A
replay will be available approximately three hours after the
conclusion of the conference call until Saturday, December 12, 2020
by dialing 844-512-2921 in the U.S. and Canada and 412-317-6671
internationally and entering the conference ID number:
10011742.
The Company’s financial results and an
accompanying slide presentation will also be available on the
Investor Relations page of the Company’s website at
ballantynestrong.com/investors.
Use of Non-GAAP Measures
Ballantyne Strong, Inc. prepares its
consolidated financial statements in accordance with United States
generally accepted accounting principles (“GAAP”). In addition to
disclosing financial results prepared in accordance with GAAP, the
Company discloses information regarding Adjusted EBITDA, which
differs from the term EBITDA as it is commonly used. In addition to
adjusting net income (loss) to exclude income taxes, interest, and
depreciation and amortization, Adjusted EBITDA also excludes
discontinued operations, share-based compensation, impairment
charges, equity method income (loss), fair value adjustments,
severance, foreign currency transaction gains (losses),
transactional expenses and other cash and non-cash charges and
gains.
EBITDA and Adjusted EBITDA are not measures of
performance defined in accordance with GAAP. However, Adjusted
EBITDA is used internally in planning and evaluating the Company’s
operating performance. Accordingly, management believes that
disclosure of these metrics offers investors, bankers and other
stakeholders an additional view of the Company’s operations that,
when coupled with the GAAP results, provides a more complete
understanding of the Company’s financial results.
EBITDA and Adjusted EBITDA should not be
considered as an alternative to net loss or to net cash used in
operating activities as measures of operating results or liquidity.
Our calculation of EBITDA and Adjusted EBITDA may not be comparable
to similarly titled measures used by other companies, and the
measures exclude financial information that some may consider
important in evaluating the Company’s performance. A reconciliation
of GAAP net loss to EBITDA and Adjusted EBITDA is included in the
accompanying financial schedules.
EBITDA and Adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation, or
as substitutes for analysis of our results as reported under GAAP.
Some of these limitations are (i) they do not reflect our cash
expenditures, or future requirements for capital expenditures or
contractual commitments, (ii) they do not reflect changes in, or
cash requirements for, our working capital needs, (iii) EBITDA and
Adjusted EBITDA do not reflect interest expense, or the cash
requirements necessary to service interest or principal payments,
on our debt, (iv) although depreciation and amortization are
non-cash charges, the assets being depreciated and amortized will
often have to be replaced in the future, and EBITDA and Adjusted
EBITDA do not reflect any cash requirements for such replacements,
(v) they do not adjust for all non-cash income or expense items
that are reflected in our statements of cash flows, (vi) they do
not reflect the impact of earnings or charges resulting from
matters we consider not to be indicative of our ongoing operations,
and (vii) other companies in our industry may calculate these
measures differently than we do, limiting their usefulness as
comparative measures.
We believe EBITDA and Adjusted EBITDA facilitate
operating performance comparisons from period to period by
isolating the effects of some items that vary from period to period
without any correlation to core operating performance or that vary
widely among similar companies. These potential differences may be
caused by variations in capital structures (affecting interest
expense), tax positions (such as the impact on periods or companies
of changes in effective tax rates or net operating losses) and the
age and book depreciation of facilities and equipment (affecting
relative depreciation expense). We also present EBITDA and Adjusted
EBITDA because (i) we believe these measures are frequently used by
securities analysts, investors and other interested parties to
evaluate companies in our industry, (ii) we believe investors will
find these measures useful in assessing our ability to service or
incur indebtedness, and (iii) we use EBITDA and Adjusted EBITDA
internally as benchmarks to evaluate our operating performance or
compare our performance to that of our competitors.
For further information, please refer to
Ballantyne Strong, Inc.’s Quarterly Report on Form 10-Q to be filed
with the Securities and Exchange Commission on or about November
12, 2020, available online at www.sec.gov.
About Ballantyne Strong,
Inc.
Ballantyne Strong
(www.ballantynestrong.com) and
its subsidiaries engage in diverse business activities including
the design, integration and installation of technology solutions
for a broad range of applications; development and delivery of
out-of-home messaging, advertising and communications;
manufacturing of projection screens; and providing managed services
including monitoring of networked equipment. The Company focuses on
serving the entertainment and retail markets.
Forward-Looking Statements
Except for the historical information in this
press release, it includes forward-looking statements which involve
a number of risks and uncertainties, including but not limited to
those discussed in the “Risk Factors” section contained in Item 1A
in our Annual Report on Form 10-K for the year ended December 31,
2019, Part II, Item 1A of the Company’s Quarterly Report on Form
10-Q for the quarterly period ended September 30, 2020 and the
Company’s subsequent filings with the SEC, and the following risks
and uncertainties: the negative impact that the COVID-19 pandemic
has already had, and may continue to have, on the Company’s
business and financial condition, the Company’s ability to maintain
and expand its revenue streams to compensate for the lower demand
for the Company’s digital cinema products and installation
services, potential interruptions of supplier relationships or
higher prices charged by suppliers, the Company’s ability to
successfully compete and introduce enhancements and new features
that achieve market acceptance and that keep pace with
technological developments, the Company’s ability to successfully
execute its capital allocation strategy, the Company’s ability to
maintain its brand and reputation and retain or replace its
significant customers, challenges associated with the Company’s
long sales cycles, the impact of a challenging global economic
environment or a downturn in the markets (such as the current
economic disruption and market volatility generated by the ongoing
COVID-19 pandemic), economic and political risks of selling
products in foreign countries (including tariffs), risks of
non-compliance with U.S. and foreign laws and regulations,
potential sales tax collections and claims for uncollected amounts,
cybersecurity risks and risks of damage and interruptions of
information technology systems, the Company’s ability to retain key
members of management and successfully integrate new executives,
the Company’s ability to complete acquisitions, strategic
investments, entry into new lines of business, divestitures,
mergers or other transactions on acceptable terms or at all, the
Company’s ability to utilize or assert its intellectual property
rights, the impact of natural disasters and other catastrophic
events (such as the ongoing COVID-19 pandemic), the adequacy of
insurance, the impact of having a controlling stockholder and
vulnerability to fluctuation in the Company’s stock price. Given
the risks and uncertainties, readers should not place undue
reliance on any forward-looking statement and should recognize that
the statements are predictions of future results which may not
occur as anticipated. Many of the risks listed above have been, and
may further be, exacerbated by the COVID-19 pandemic, its impact on
the cinema and entertainment industry, and the worsening economic
environment. Actual results could differ materially from those
anticipated in the forward-looking statements and from historical
results, due to the risks and uncertainties described herein, as
well as others not now anticipated. New risk factors emerge from
time to time and it is not possible for management to predict all
such risk factors, nor can it assess the impact of all such factors
on the Company’s business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Except where required by law, the Company assumes no obligation to
update, withdraw or revise any forward-looking statements to
reflect actual results or changes in factors or assumptions
affecting such forward-looking statements.
For Investor Relations
Inquiries:
Mark Roberson |
John Nesbett / Jennifer
Belodeau |
Ballantyne Strong, Inc. - Chief
Executive Officer |
IMS Investor Relations |
704-994-8279 |
203-972-9200 |
IR@btn-inc.com |
jnesbett@institutionalms.com |
Ballantyne Strong, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(In thousands, except par
values)
|
|
September 30, 2020 |
|
|
December 31, 2019 |
|
|
|
(unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,026 |
|
|
$ |
4,951 |
|
Restricted cash |
|
|
352 |
|
|
|
351 |
|
Accounts receivable (net of allowance for doubtful accounts of $783
and $1,291, respectively) |
|
|
6,115 |
|
|
|
12,898 |
|
Inventories, net |
|
|
2,816 |
|
|
|
2,879 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
320 |
|
Other current assets |
|
|
1,735 |
|
|
|
1,624 |
|
Total current assets |
|
|
18,044 |
|
|
|
23,023 |
|
Property, plant and equipment (net of accumulated depreciation of
$11,363 and $10,030, respectively) |
|
|
9,028 |
|
|
|
10,069 |
|
Operating lease right-of-use assets |
|
|
4,705 |
|
|
|
5,581 |
|
Finance lease right-of-use assets |
|
|
2,465 |
|
|
|
2,563 |
|
Investments |
|
|
22,006 |
|
|
|
13,311 |
|
Intangible assets, net |
|
|
1,214 |
|
|
|
1,534 |
|
Goodwill |
|
|
895 |
|
|
|
919 |
|
Long-term assets of discontinued operations |
|
|
- |
|
|
|
585 |
|
Other assets |
|
|
31 |
|
|
|
48 |
|
Total assets |
|
$ |
58,388 |
|
|
$ |
57,633 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,448 |
|
|
$ |
2,969 |
|
Accrued expenses |
|
|
3,464 |
|
|
|
4,416 |
|
Short-term debt |
|
|
2,972 |
|
|
|
3,080 |
|
Current portion of long-term debt |
|
|
1,055 |
|
|
|
998 |
|
Current portion of operating lease obligations |
|
|
743 |
|
|
|
846 |
|
Current portion of finance lease obligations |
|
|
1,820 |
|
|
|
1,586 |
|
Deferred revenue and customer deposits |
|
|
4,198 |
|
|
|
2,706 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
704 |
|
Total current liabilities |
|
|
17,700 |
|
|
|
17,305 |
|
Long-term debt, net of current portion and debt issuance costs |
|
|
2,617 |
|
|
|
3,019 |
|
Operating lease obligations, net of current portion |
|
|
4,107 |
|
|
|
4,662 |
|
Finance lease obligations, net of current portion |
|
|
3,111 |
|
|
|
3,988 |
|
Deferred income taxes |
|
|
3,053 |
|
|
|
2,649 |
|
Long-term liabilities of discontinued operations |
|
|
- |
|
|
|
147 |
|
Other long-term liabilities |
|
|
120 |
|
|
|
154 |
|
Total liabilities |
|
|
30,708 |
|
|
|
31,924 |
|
Commitments, contingencies and
concentrations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, par value $.01 per share; authorized 1,000 shares,
none outstanding |
|
|
- |
|
|
|
- |
|
Common stock, par value $.01 per share; authorized 25,000 shares;
issued 17,584 and 17,410 shares at September 30, 2020 and December
31, 2019, respectively; outstanding 14,790 and 14,616 shares at
September 30, 2020 and December 31, 2019, respectively |
|
|
176 |
|
|
|
174 |
|
Additional paid-in capital |
|
|
43,311 |
|
|
|
42,589 |
|
Retained earnings |
|
|
7,472 |
|
|
|
6,001 |
|
Less 2,794 of common shares in treasury, at cost |
|
|
(18,586 |
) |
|
|
(18,586 |
) |
Accumulated other comprehensive loss |
|
|
(4,693 |
) |
|
|
(4,469 |
) |
Total stockholders’ equity |
|
|
27,680 |
|
|
|
25,709 |
|
Total liabilities and stockholders’ equity |
|
$ |
58,388 |
|
|
$ |
57,633 |
|
Ballantyne Strong, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(In thousands, except per share
amounts)(Unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months EndedSeptember
30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net product sales |
|
$ |
4,460 |
|
|
$ |
9,192 |
|
|
$ |
13,095 |
|
|
$ |
20,840 |
|
Net service revenues |
|
|
5,447 |
|
|
|
6,358 |
|
|
|
15,393 |
|
|
|
21,057 |
|
Total net revenues |
|
|
9,907 |
|
|
|
15,550 |
|
|
|
28,488 |
|
|
|
41,897 |
|
Cost of products sold |
|
|
3,564 |
|
|
|
5,603 |
|
|
|
10,119 |
|
|
|
17,526 |
|
Cost of services |
|
|
3,096 |
|
|
|
4,746 |
|
|
|
9,520 |
|
|
|
11,435 |
|
Total cost of revenues |
|
|
6,660 |
|
|
|
10,349 |
|
|
|
19,639 |
|
|
|
28,961 |
|
Gross profit |
|
|
3,247 |
|
|
|
5,201 |
|
|
|
8,849 |
|
|
|
12,936 |
|
Selling and administrative
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling |
|
|
678 |
|
|
|
956 |
|
|
|
2,234 |
|
|
|
2,986 |
|
Administrative |
|
|
2,914 |
|
|
|
4,055 |
|
|
|
10,119 |
|
|
|
11,709 |
|
Total selling and administrative expenses |
|
|
3,592 |
|
|
|
5,011 |
|
|
|
12,353 |
|
|
|
14,695 |
|
Loss on disposal of
assets |
|
|
(18 |
) |
|
|
(3 |
) |
|
|
(18 |
) |
|
|
(67 |
) |
(Loss) income from operations |
|
|
(363 |
) |
|
|
187 |
|
|
|
(3,522 |
) |
|
|
(1,826 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
3 |
|
Interest expense |
|
|
(254 |
) |
|
|
(263 |
) |
|
|
(794 |
) |
|
|
(568 |
) |
Fair value adjustment to notes receivable |
|
|
- |
|
|
|
(845 |
) |
|
|
- |
|
|
|
(2,153 |
) |
Foreign currency transaction (loss) gain |
|
|
(173 |
) |
|
|
66 |
|
|
|
12 |
|
|
|
(154 |
) |
Other income, net |
|
|
2,749 |
|
|
|
416 |
|
|
|
2,873 |
|
|
|
650 |
|
Total other income (expense) |
|
|
2,322 |
|
|
|
(625 |
) |
|
|
2,091 |
|
|
|
(2,222 |
) |
Income (loss) from continuing operations before income taxes and
equity method investment loss |
|
|
1,959 |
|
|
|
(438 |
) |
|
|
(1,431 |
) |
|
|
(4,048 |
) |
Income tax expense |
|
|
(526 |
) |
|
|
(731 |
) |
|
|
(1,022 |
) |
|
|
(1,295 |
) |
Equity method investment
loss |
|
|
(460 |
) |
|
|
(496 |
) |
|
|
(580 |
) |
|
|
(1,223 |
) |
Net income (loss) from continuing operations |
|
|
973 |
|
|
|
(1,665 |
) |
|
|
(3,033 |
) |
|
|
(6,566 |
) |
Net income (loss) from discontinued operations |
|
|
4,673 |
|
|
|
(123 |
) |
|
|
4,504 |
|
|
|
(2,790 |
) |
Net income (loss) |
|
$ |
5,646 |
|
|
$ |
(1,788 |
) |
|
$ |
1,471 |
|
|
$ |
(9,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.07 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.46 |
) |
Discontinued operations |
|
|
0.31 |
|
|
|
(0.01 |
) |
|
|
0.31 |
|
|
|
(0.19 |
) |
Basic net income (loss) per
share |
|
$ |
0.38 |
|
|
$ |
(0.12 |
) |
|
$ |
0.10 |
|
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.07 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.46 |
) |
Discontinued operations |
|
|
0.31 |
|
|
|
(0.01 |
) |
|
|
0.31 |
|
|
|
(0.19 |
) |
Diluted net income (loss) per
share |
|
$ |
0.38 |
|
|
$ |
(0.12 |
) |
|
$ |
0.10 |
|
|
$ |
(0.65 |
) |
Ballantyne Strong, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows(In
thousands)(Unaudited)
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
$ |
(3,033 |
) |
|
$ |
(6,566 |
) |
Adjustments to reconcile net loss from continuing operations to net
cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Provision for (recovery of) doubtful accounts |
|
|
397 |
|
|
|
(509 |
) |
Provision for obsolete inventory |
|
|
41 |
|
|
|
245 |
|
Provision for warranty |
|
|
14 |
|
|
|
24 |
|
Depreciation and amortization |
|
|
2,634 |
|
|
|
2,214 |
|
Amortization and accretion of operating leases |
|
|
814 |
|
|
|
788 |
|
Fair value adjustment to notes receivable |
|
|
- |
|
|
|
2,153 |
|
Equity method investment loss |
|
|
580 |
|
|
|
1,223 |
|
Loss on disposal of assets |
|
|
- |
|
|
|
67 |
|
Gain on business interruption claim settlement |
|
|
(789 |
) |
|
|
- |
|
Gain on Firefly transaction (Note 3) |
|
|
- |
|
|
|
- |
|
Deferred income taxes |
|
|
72 |
|
|
|
(129 |
) |
Stock-based compensation expense |
|
|
724 |
|
|
|
798 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
4,793 |
|
|
|
776 |
|
Inventories |
|
|
(28 |
) |
|
|
(96 |
) |
Current income taxes |
|
|
269 |
|
|
|
229 |
|
Other assets |
|
|
35 |
|
|
|
(130 |
) |
Accounts payable and accrued expenses |
|
|
1,024 |
|
|
|
(2,000 |
) |
Deferred revenue and customer deposits |
|
|
1,469 |
|
|
|
797 |
|
Operating lease obligations |
|
|
(857 |
) |
|
|
(875 |
) |
Net cash provided by (used in) operating activities from continuing
operations |
|
|
8,159 |
|
|
|
(991 |
) |
Net cash provided by operating activities from discontinued
operations |
|
|
598 |
|
|
|
1,407 |
|
Net cash provided by operating activities |
|
|
8,757 |
|
|
|
416 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Proceeds from sale of property, plant and equipment |
|
$ |
- |
|
|
$ |
121 |
|
Investment in Firefly Systems, Inc. |
|
|
(4,000 |
) |
|
|
- |
|
Capital expenditures |
|
|
(729 |
) |
|
|
(1,717 |
) |
Net cash used in investing activities from continuing
operations |
|
|
(4,729 |
) |
|
|
(1,596 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
- |
|
|
|
237 |
|
Principal payments on short-term debt |
|
|
(450 |
) |
|
|
(323 |
) |
Principal payments on long-term debt |
|
|
(427 |
) |
|
|
(725 |
) |
Proceeds from borrowing under credit facility |
|
|
5,040 |
|
|
|
- |
|
Repayments of borrowings under credit facility |
|
|
(5,040 |
) |
|
|
- |
|
Proceeds from Paycheck Protection Program Loan |
|
|
3,174 |
|
|
|
- |
|
Repayment of Paycheck Protection Program Loan |
|
|
(3,174 |
) |
|
|
- |
|
Payments on capital lease obligations |
|
|
(1,195 |
) |
|
|
(420 |
) |
Net cash used in financing activities from continuing
operations |
|
|
(2,072 |
) |
|
|
(1,231 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
120 |
|
|
|
46 |
|
Net increase (decrease) in cash and cash equivalents and restricted
cash from continuing operations |
|
|
1,478 |
|
|
|
(3,772 |
) |
Net increase in cash and cash equivalents and restricted cash from
discontinued operations |
|
|
598 |
|
|
|
1,407 |
|
Net increase (decrease) in cash and cash equivalents and restricted
cash |
|
|
2,076 |
|
|
|
(2,365 |
) |
Cash and cash equivalents and
restricted cash at beginning of period |
|
|
5,302 |
|
|
|
7,048 |
|
Cash and cash equivalents and
restricted cash at end of period |
|
$ |
7,378 |
|
|
$ |
4,683 |
|
Ballantyne Strong, Inc. and
SubsidiariesSummary by Business
Segments(In
thousands)(Unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strong
Entertainment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
5,260 |
|
|
$ |
10,928 |
|
|
$ |
15,041 |
|
|
$ |
26,405 |
|
Gross profit |
|
|
889 |
|
|
|
3,669 |
|
|
|
2,769 |
|
|
|
8,621 |
|
Operating (loss) income |
|
|
(79 |
) |
|
|
2,230 |
|
|
|
(894 |
) |
|
|
4,646 |
|
Adjusted EBITDA |
|
|
133 |
|
|
|
2,444 |
|
|
|
(137 |
) |
|
|
5,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convergent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
4,346 |
|
|
$ |
4,532 |
|
|
$ |
12,954 |
|
|
$ |
15,204 |
|
Gross profit |
|
|
2,083 |
|
|
|
1,469 |
|
|
|
5,668 |
|
|
|
4,622 |
|
Operating income |
|
|
1,059 |
|
|
|
394 |
|
|
|
2,508 |
|
|
|
1,467 |
|
Adjusted EBITDA |
|
|
1,672 |
|
|
|
890 |
|
|
|
4,332 |
|
|
|
2,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
301 |
|
|
$ |
90 |
|
|
$ |
493 |
|
|
$ |
288 |
|
Gross profit |
|
|
275 |
|
|
|
63 |
|
|
|
412 |
|
|
|
(307 |
) |
Operating loss |
|
|
(1,343 |
) |
|
|
(2,437 |
) |
|
|
(5,136 |
) |
|
|
(7,939 |
) |
Adjusted EBITDA |
|
|
(1,013 |
) |
|
|
(2,030 |
) |
|
|
(4,217 |
) |
|
|
(6,957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
9,907 |
|
|
$ |
15,550 |
|
|
$ |
28,488 |
|
|
$ |
41,897 |
|
Gross profit |
|
|
3,247 |
|
|
|
5,201 |
|
|
|
8,849 |
|
|
|
12,936 |
|
Operating (loss) income |
|
|
(363 |
) |
|
|
187 |
|
|
|
(3,522 |
) |
|
|
(1,826 |
) |
Adjusted EBITDA |
|
|
792 |
|
|
|
1,304 |
|
|
|
(22 |
) |
|
|
1,269 |
|
Ballantyne Strong, Inc. and
SubsidiariesReconciliation of Net Income (Loss) to
Adjusted EBITDA(In
thousands)(Unaudited)
|
|
Three Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
Strong Entertainment |
|
|
Convergent |
|
|
Corporate and Other |
|
|
Discontinued Operations |
|
|
Consolidated |
|
|
Strong Entertainment |
|
|
Convergent |
|
|
Corporate and Other |
|
|
Discontinued Operations |
|
|
Consolidated |
|
Net income (loss) |
|
$ |
1,939 |
|
|
$ |
1,000 |
|
|
$ |
(1,966 |
) |
|
$ |
4,673 |
|
|
$ |
5,646 |
|
|
$ |
1,265 |
|
|
$ |
386 |
|
|
$ |
(3,316 |
) |
|
$ |
(123 |
) |
|
$ |
(1,788 |
) |
Net income (loss) from
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,673 |
) |
|
|
(4,673 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
123 |
|
|
|
123 |
|
Net income (loss) from
continuing operations |
|
|
1,939 |
|
|
|
1,000 |
|
|
|
(1,966 |
) |
|
|
- |
|
|
|
973 |
|
|
|
1,265 |
|
|
|
386 |
|
|
|
(3,316 |
) |
|
|
- |
|
|
|
(1,665 |
) |
Interest expense, net |
|
|
24 |
|
|
|
146 |
|
|
|
84 |
|
|
|
- |
|
|
|
254 |
|
|
|
35 |
|
|
|
120 |
|
|
|
107 |
|
|
|
- |
|
|
|
262 |
|
Income tax expense
(benefit) |
|
|
488 |
|
|
|
(88 |
) |
|
|
126 |
|
|
|
- |
|
|
|
526 |
|
|
|
827 |
|
|
|
(96 |
) |
|
|
- |
|
|
|
- |
|
|
|
731 |
|
Depreciation and
amortization |
|
|
226 |
|
|
|
613 |
|
|
|
46 |
|
|
|
- |
|
|
|
885 |
|
|
|
226 |
|
|
|
492 |
|
|
|
54 |
|
|
|
- |
|
|
|
772 |
|
EBITDA |
|
|
2,677 |
|
|
|
1,671 |
|
|
|
(1,710 |
) |
|
|
- |
|
|
|
2,638 |
|
|
|
2,353 |
|
|
|
902 |
|
|
|
(3,155 |
) |
|
|
- |
|
|
|
100 |
|
Stock-based compensation
expense |
|
|
- |
|
|
|
- |
|
|
|
239 |
|
|
|
- |
|
|
|
239 |
|
|
|
- |
|
|
|
- |
|
|
|
334 |
|
|
|
- |
|
|
|
334 |
|
Fair value adjustment to notes
receivable |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
845 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
845 |
|
Equity method investment loss
(income) |
|
|
20 |
|
|
|
- |
|
|
|
440 |
|
|
|
- |
|
|
|
460 |
|
|
|
(287 |
) |
|
|
- |
|
|
|
783 |
|
|
|
- |
|
|
|
496 |
|
Loss on disposal of assets and
impairment charges |
|
|
- |
|
|
|
- |
|
|
|
18 |
|
|
|
- |
|
|
|
18 |
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
Foreign currency transaction
loss (gain) |
|
|
172 |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
173 |
|
|
|
(50 |
) |
|
|
(16 |
) |
|
|
- |
|
|
|
- |
|
|
|
(66 |
) |
Gain on property and casualty
insurance recoveries |
|
|
(2,736 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,736 |
) |
|
|
(420 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(420 |
) |
Severance and other |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4 |
|
|
|
8 |
|
|
|
- |
|
|
|
12 |
|
Adjusted EBITDA |
|
$ |
133 |
|
|
$ |
1,672 |
|
|
$ |
(1,013 |
) |
|
$ |
- |
|
|
$ |
792 |
|
|
$ |
2,444 |
|
|
$ |
890 |
|
|
$ |
(2,030 |
) |
|
$ |
- |
|
|
$ |
1,304 |
|
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
Strong Entertainment |
|
|
Convergent |
|
|
Corporate and Other |
|
|
Discontinued Operations |
|
|
Consolidated |
|
|
Strong Entertainment |
|
|
Convergent |
|
|
Corporate and Other |
|
|
Discontinued Operations |
|
|
Consolidated |
|
Net income (loss) |
|
$ |
918 |
|
|
$ |
2,018 |
|
|
$ |
(5,969 |
) |
|
$ |
4,504 |
|
|
$ |
1,471 |
|
|
$ |
1,120 |
|
|
$ |
1,085 |
|
|
$ |
(8,771 |
) |
|
$ |
(2,790 |
) |
|
$ |
(9,356 |
) |
Net income (loss) from
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,504 |
) |
|
|
(4,504 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,790 |
|
|
|
2,790 |
|
Net income (loss) from
continuing operations |
|
|
918 |
|
|
|
2,018 |
|
|
|
(5,969 |
) |
|
|
- |
|
|
|
(3,033 |
) |
|
|
1,120 |
|
|
|
1,085 |
|
|
|
(8,771 |
) |
|
|
- |
|
|
|
(6,566 |
) |
Interest expense, net |
|
|
90 |
|
|
|
429 |
|
|
|
275 |
|
|
|
- |
|
|
|
794 |
|
|
|
105 |
|
|
|
322 |
|
|
|
138 |
|
|
|
- |
|
|
|
565 |
|
Income tax expense |
|
|
853 |
|
|
|
26 |
|
|
|
143 |
|
|
|
- |
|
|
|
1,022 |
|
|
|
1,137 |
|
|
|
72 |
|
|
|
86 |
|
|
|
- |
|
|
|
1,295 |
|
Depreciation and
amortization |
|
|
688 |
|
|
|
1,804 |
|
|
|
142 |
|
|
|
- |
|
|
|
2,634 |
|
|
|
665 |
|
|
|
1,387 |
|
|
|
162 |
|
|
|
- |
|
|
|
2,214 |
|
EBITDA |
|
|
2,549 |
|
|
|
4,277 |
|
|
|
(5,409 |
) |
|
|
- |
|
|
|
1,417 |
|
|
|
3,027 |
|
|
|
2,866 |
|
|
|
(8,385 |
) |
|
|
- |
|
|
|
(2,492 |
) |
Stock-based compensation
expense |
|
|
- |
|
|
|
- |
|
|
|
724 |
|
|
|
- |
|
|
|
724 |
|
|
|
- |
|
|
|
- |
|
|
|
798 |
|
|
|
- |
|
|
|
798 |
|
Fair value adjustment to notes
receivable |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,153 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,153 |
|
Equity method investment loss
(income) |
|
|
137 |
|
|
|
- |
|
|
|
443 |
|
|
|
- |
|
|
|
580 |
|
|
|
601 |
|
|
|
- |
|
|
|
622 |
|
|
|
- |
|
|
|
1,223 |
|
Loss on disposal of assets and
impairment charges |
|
|
- |
|
|
|
- |
|
|
|
18 |
|
|
|
- |
|
|
|
18 |
|
|
|
66 |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
67 |
|
Foreign currency transaction
(gain) loss |
|
|
(51 |
) |
|
|
39 |
|
|
|
- |
|
|
|
- |
|
|
|
(12 |
) |
|
|
166 |
|
|
|
(12 |
) |
|
|
- |
|
|
|
- |
|
|
|
154 |
|
Gain on property and casualty
insurance recoveries |
|
|
(2,850 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,850 |
) |
|
|
(646 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(646 |
) |
Severance and other |
|
|
78 |
|
|
|
16 |
|
|
|
7 |
|
|
|
- |
|
|
|
101 |
|
|
|
- |
|
|
|
4 |
|
|
|
8 |
|
|
|
- |
|
|
|
12 |
|
Adjusted EBITDA |
|
$ |
(137 |
) |
|
$ |
4,332 |
|
|
$ |
(4,217 |
) |
|
$ |
- |
|
|
$ |
(22 |
) |
|
$ |
5,367 |
|
|
$ |
2,859 |
|
|
$ |
(6,957 |
) |
|
$ |
- |
|
|
$ |
1,269 |
|
Ballantyne Strong (AMEX:BTN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Ballantyne Strong (AMEX:BTN)
Historical Stock Chart
From Mar 2023 to Mar 2024