Ballantyne Strong Reports Third Quarter 2021 Operating Results

Strong Entertainment business strengthening post-COVID
Investment gains driving positive earnings

Charlotte, NC, Nov. 10, 2021 (GLOBE NEWSWIRE) — Ballantyne Strong, Inc. (NYSE American: BTN) (the “Company” or “Ballantyne Strong”) today announced operating results for the third quarter ended September 30, 2021.

Recent Highlights

● Entertainment business returned to positive operating income and adjusted EBITDA as the cinema exhibition business continues to rebound
  ○ Service revenues increased 42.7%
  ○ Delivered the largest IMAX screen in the world in Germany during Q3
  ○ Announced preferred commercial relationship with Cinionic, the world’s leading provider of laser cinema solutions.
  ○ Industry trends strengthening with unprecedented backlog of blockbuster releases slated for release.

● Increased capital allocated to GreenFirst Forest Products Inc. (“GreenFirst”) in support of GreenFirst’s acquisition of the lumber assets of Rayonier Advanced Materials Inc.
   ○ Invested $8.3 million, increasing holdings from 7.0 million shares to 15.3 million shares.
   ○ Recognized an unrealized gain on investment (mark-to-market) of $8.4 million

● Reported consolidated quarterly net income from continuing operations of $7.1 million, or $0.38 per share, compared to a loss of $0.1 million, or $0.00 per share, in the prior year.
     
● Strengthened the board of directors by adding Michael C. Mitchell and Larry G. Swets, Jr.

“The third quarter was a significant turning point for the entertainment industry, representing the beginning of the post-COVID recovery,” commented Mark Roberson, Chief Executive Officer. “New releases drove strong box office results in September and October, and the unprecedented slate of upcoming studio releases is a meaningful catalyst looking ahead. Strong Entertainment delivered positive operating income and Adjusted EBITDA for the third quarter and is well positioned for growth.”

“Our equity holdings also continue to execute, with GreenFirst completing its planned acquisition in August, making it one of the leading timber producers in Canada. We increased our position from 7.0 million shares to 15.3 million shares and recognized a mark-to-market gain of over $8 million on the investment. We also plan to increase our stake in FG Financial in the fourth quarter in connection its announced rights offering.”

“Overall, it was a very good quarter for Ballantyne Strong with improved operating results from our Entertainment business, controlled operating expenses and the gains on investments driving positive earnings per share of $0.38.”

Third Quarter 2021 Financial Review (As Compared to the Continuing Operations from the Three Months Ended September 30, 2020)

 

Revenue increased 10.0% to $6.1 million from $5.6 million. The increase was primarily due to the continuing recovery in customer demand for screens products and technical services at Strong Entertainment as exhibitors more fully reopened and Hollywood studios began to accelerate the release content into the theatrical channels.

 

 

 

 

Gross profit increased to $2.4 million from $1.2 million and gross profit margins increased to 40.0% from 20.9%. Excluding the impact of the employee retention credit, gross profit would have been 33.1% of revenue. The increase in gross profit was primarily attributable to higher screen and field service revenues.

 

 

 

 

Operating loss improved to $0.1 million from $1.5 million. Excluding the impact of the employee retention credit, operating loss would have been $0.7 million. The improvement was the result of increased revenues and gross profit combined with initiatives to reduce SG&A expenses.

 

 

 

 

Net income from continuing operations was $7.1 million, or $0.38 per basic and diluted share, as compared to a loss of $0.1 million, or $0.00 per basic and diluted share in the three months ended September 30, 2020. The improvement in net income was primarily due to an $8.4 million unrealized gain on investments and a $1.7 million realized gain on investments less the related income tax impacts.

 

 

 

 

Adjusted EBITDA improved to negative $0.2 million from negative $0.9 million in the three months ended September 30, 2020.

Conference Call

A conference call to discuss the Company’s 2021 third quarter financial results will be held on Wednesday, November 10, 2021 at 5:00 pm Eastern Time. Interested parties can listen to the call via live webcast or by phone. To access the webcast, visit the Company’s website at www.ballantynestrong.com/investors or use following link: BTN Webcast Link. To access the conference call by phone, dial (800) 671-8739 (domestic) or (303) 223-2698 (international) and provide the operator with conference ID number: 219987767. Please access the webcast or dial in at least five minutes before the start of the call to register.

A replay of the webcast will be available following the conclusion of the live broadcast and accessible on the Company’s website at www.ballantynestrong.com/investors.

Use of Non-GAAP Measures

Ballantyne Strong 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 (“Adjusted EBITDA”), which differs from the commonly-used EBITDA (“EBITDA”). Adjusted EBITDA both adjusts net income (loss) to exclude income taxes, interest, and depreciation and amortization, and excludes discontinued operations, share-based compensation, impairment charges, equity method income (loss), fair value adjustments, severance, foreign currency transaction gains (losses), transactional gains and expenses, gains on insurance recoveries, certain tax credits 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 income (loss) or to net cash from operating activities as measures of operating results or liquidity. The Company’s 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.

EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company’s results as reported under GAAP. Some of these limitations are: (i) they do not reflect the Company’s cash expenditures, or future requirements for capital expenditures or contractual commitments, (ii) they do not reflect changes in, or cash requirements for, the Company’s 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 the Company’s 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 the Company’s statements of cash flows, (vi) they do not reflect the impact of earnings or charges resulting from matters management considers not to be indicative of the Company’s ongoing operations, and (vii) other companies in the Company’s industry may calculate these measures differently than the Company does, limiting their usefulness as comparative measures.

Management believes 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). The Company also presents EBITDA and Adjusted EBITDA because (i) management believes these measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in the Company’s industry, (ii) management believes investors will find these measures useful in assessing the Company’s ability to service or incur indebtedness, and (iii) management uses EBITDA and Adjusted EBITDA internally as benchmarks to evaluate the Company’s operating performance or compare the Company’s performance to that of its competitors.

For further information, please refer to Ballantyne Strong, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2021, as supplemented by Ballantyne Strong, Inc.’s Amendment No. 1 on Form 10-K/A filed with the SEC on April 28, 2021, both available online at www.sec.gov.

About Ballantyne Strong, Inc.

Ballantyne Strong, Inc. (www.ballantynestrong.com) is a diversified holding company with operations and holdings across a broad range of industries. The Company’s Strong Entertainment segment includes the largest premium screen supplier in the U.S. and also provides technical support services and other related products and services to the cinema exhibition industry, theme parks and other entertainment-related markets. Ballantyne Strong holds a $13 million preferred stake along with Google Ventures in privately held Firefly Systems, Inc., which is rolling out a digital mobile advertising network on rideshare and taxi fleets. Finally, the Company holds a 9% ownership position in GreenFirst Forest Products Inc. (TSX: GFP), which has recently completed an investment in a sawmill and related assets, and an 18% ownership position in FG Financial Group, Inc. (Nasdaq: FGF), a reinsurance and investment management holding company focused on opportunistic collateralized and loss capped reinsurance, while allocating capital to SPAC and SPAC sponsor-related businesses.

Forward-Looking Statements

In addition to the historical information included herein, this press release includes forward-looking statements, such as management’s expectations regarding its portfolio companies, the Company’s intent to pursue an initial public offering of Strong Entertainment, the anticipated timing of such a transaction, and management’s expectations regarding such a transaction, as well as future sales, the impact, length and severity of the COVID-19 pandemic, general economic recovery from the effects of the COVID-19 pandemic, and the adequacy of the actions taken in response to the pandemic, 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 10, 2021, as supplemented by the Company’s Amendment No. 1 on Form 10-K/A filed with the SEC on April 28, 2021, 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 or achieve the returns it expects from these investments; 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 impact of the COVID-19 pandemic on the Company’s portfolio companies; 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 ongoing 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:

Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par values)

 

 

September 30, 2021

 

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,372

 

 

$

4,435

 

Restricted cash

 

 

150

 

 

 

352

 

Accounts receivable, net

 

 

4,446

 

 

 

5,558

 

Inventories, net

 

 

2,986

 

 

 

2,264

 

Current assets of discontinued operations

 

 

 

 

 

3,748

 

Other current assets

 

 

5,667

 

 

 

1,452

 

Total current assets

 

 

23,621

 

 

 

17,809

 

Property, plant and equipment, net

 

 

6,109

 

 

 

5,524

 

Operating lease right-of-use assets

 

 

3,842

 

 

 

4,304

 

Finance lease right-of-use assets

 

 

1

 

 

 

4

 

Note receivable, net of current portion

 

 

1,875

 

 

 

 

Investments

 

 

37,341

 

 

 

20,167

 

Intangible assets, net

 

 

132

 

 

 

353

 

Goodwill

 

 

937

 

 

 

938

 

Long-term assets of discontinued operations

 

 

 

 

 

6,372

 

Other assets

 

 

19

 

 

 

28

 

Total assets

 

$

73,877

 

 

$

55,499

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,915

 

 

$

2,717

 

Accrued expenses

 

 

2,400

 

 

 

2,182

 

Short-term debt

 

 

3,201

 

 

 

3,299

 

Current portion of operating lease obligations

 

 

562

 

 

 

619

 

Current portion of finance lease obligations

 

 

1

 

 

 

1,015

 

Deferred revenue and customer deposits

 

 

3,850

 

 

 

2,404

 

Current liabilities of discontinued operations

 

 

 

 

 

3,901

 

Total current liabilities

 

 

12,929

 

 

 

16,137

 

Operating lease obligations, net of current portion

 

 

3,408

 

 

 

3,817

 

Finance lease obligations, net of current portion

 

 

 

 

 

1,091

 

Deferred income taxes

 

 

5,218

 

 

 

3,099

 

Long-term liabilities of discontinued operations

 

 

 

 

 

4,066

 

Other long-term liabilities

 

 

229

 

 

 

223

 

Total liabilities

 

 

21,784

 

 

 

28,433

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

212

 

 

 

176

 

Additional paid-in capital

 

 

50,603

 

 

 

43,713

 

Retained earnings

 

 

24,123

 

 

 

5,654

 

Treasury stock

 

 

(18,586

)

 

 

(18,586

)

Accumulated other comprehensive loss

 

 

(4,259

)

 

 

(3,891

)

Total stockholders’ equity

 

 

52,093

 

 

 

27,066

 

Total liabilities and stockholders’ equity

 

$

73,877

 

 

$

55,499

 

Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net product sales

 

$

4,086

 

 

$

4,138

 

 

$

11,811

 

 

$

11,370

 

Net service revenues

 

 

2,030

 

 

 

1,423

 

 

 

5,170

 

 

 

4,164

 

Total net revenues

 

 

6,116

 

 

 

5,561

 

 

 

16,981

 

 

 

15,534

 

Cost of products sold

 

 

2,624

 

 

 

3,205

 

 

 

7,831

 

 

 

8,286

 

Cost of services

 

 

1,044

 

 

 

1,192

 

 

 

3,078

 

 

 

4,067

 

Total cost of revenues

 

 

3,668

 

 

 

4,397

 

 

 

10,909

 

 

 

12,353

 

Gross profit

 

 

2,448

 

 

 

1,164

 

 

 

6,072

 

 

 

3,181

 

Selling and administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling

 

 

411

 

 

 

382

 

 

 

1,158

 

 

 

1,231

 

Administrative

 

 

2,155

 

 

 

2,222

 

 

 

6,775

 

 

 

7,923

 

Total selling and administrative expenses

 

 

2,566

 

 

 

2,604

 

 

 

7,933

 

 

 

9,154

 

Loss on disposal of assets

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

Loss from operations

 

 

(118

)

 

 

(1,458

)

 

 

(1,861

)

 

 

(5,991

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

21

 

 

 

 

 

 

54

 

 

 

 

Interest expense

 

 

(28

)

 

 

(109

)

 

 

(284

)

 

 

(372

)

Foreign currency transaction gain (loss)

 

 

162

 

 

 

(172

)

 

 

(56

)

 

 

51

 

Unrealized gain on investments

 

 

8,376

 

 

 

 

 

 

8,376

 

 

 

 

Other income, net

 

 

1,692

 

 

 

2,749

 

 

 

1,847

 

 

 

2,867

 

Total other income

 

 

10,223

 

 

 

2,468

 

 

 

9,937

 

 

 

2,546

 

Income (loss) from continuing operations before income taxes and equity method investment loss

 

 

10,105

 

 

 

1,010

 

 

 

8,076

 

 

 

(3,445

)

Income tax expense

 

 

(2,696

)

 

 

(614

)

 

 

(2,788

)

 

 

(996

)

Equity method investment loss

 

 

(323

)

 

 

(460

)

 

 

(1,468

)

 

 

(580

)

Net income (loss) from continuing operations

 

 

7,086

 

 

 

(64

)

 

 

3,820

 

 

 

(5,021

)

Net income from discontinued operations

 

 

 

 

 

5,710

 

 

 

14,649

 

 

 

6,492

 

Net income

 

$

7,086

 

 

$

5,646

 

 

$

18,469

 

 

$

1,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.38

 

 

$

 

 

$

0.21

 

 

$

(0.34

)

Discontinued operations

 

 

 

 

 

0.38

 

 

 

0.82

 

 

 

0.44

 

Basic and diluted net income per share

 

$

0.38

 

 

$

0.38

 

 

$

1.03

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.38

 

 

$

 

 

$

0.21

 

 

$

(0.34

)

Discontinued operations

 

 

 

 

 

0.38

 

 

 

0.81

 

 

 

0.44

 

Diluted net income per share

 

$

0.38

 

 

$

0.38

 

 

$

1.02

 

 

$

0.10

 

Ballantyne Strong, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

3,820

 

 

$

(5,021

)

Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:

 

 

 

 

 

 

 

 

(Recovery of) provision for doubtful accounts

 

 

(249

)

 

 

453

 

Provision for obsolete inventory

 

 

69

 

 

 

105

 

Provision for warranty

 

 

46

 

 

 

14

 

Depreciation and amortization

 

 

985

 

 

 

843

 

Amortization and accretion of operating leases

 

 

620

 

 

 

717

 

Equity method investment loss

 

 

1,468

 

 

 

580

 

Unrealized gain on investments

 

 

(8,376

)

 

 

 

Deferred income taxes

 

 

2,124

 

 

 

72

 

Stock-based compensation expense

 

 

686

 

 

 

724

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,287

 

 

 

2,063

 

Inventories

 

 

(793

)

 

 

(248

)

Current income taxes

 

 

(6

)

 

 

338

 

Other assets

 

 

(2,028

)

 

 

(11

)

Accounts payable and accrued expenses

 

 

(1,373

)

 

 

2,551

 

Deferred revenue and customer deposits

 

 

2,002

 

 

 

646

 

Operating lease obligations

 

 

(617

)

 

 

(720

)

Net cash (used in) provided by operating activities from continuing operations

 

 

(335

)

 

 

3,106

 

Net cash provided by operating activities from discontinued operations

 

 

510

 

 

 

5,651

 

Net cash provided by operating activities

 

 

175

 

 

 

8,757

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(650

)

 

 

(511

)

Investment in GreenFirst Forest Products, Inc. (Note 6)

 

 

(9,977

)

 

 

 

Investment in Firefly Systems, Inc. (Note 6)

 

 

 

 

 

(4,000

)

Net cash used in investing activities from continuing operations

 

 

(10,627

)

 

 

(4,511

)

Net cash provided by (used in) investing activities from discontinued operations

 

 

12,761

 

 

 

(218

)

Net cash provided by (used in) investing activities

 

 

2,134

 

 

 

(4,729

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Principal payments on short-term debt

 

 

(509

)

 

 

(450

)

Proceeds from stock issuance, net of costs

 

 

6,310

 

 

 

 

Payments of withholding taxes related to net share settlement of equity awards

 

 

(80

)

 

 

 

Proceeds from borrowing under credit facility

 

 

 

 

 

5,040

 

Repayment of borrowing under credit facility

 

 

 

 

 

(5,040

)

Proceeds from Paycheck Protection Program Loan

 

 

 

 

 

3,174

 

Repayment of Paycheck Protection Program Loan

 

 

 

 

 

(3,174

)

Proceeds from exercise of stock options

 

 

9

 

 

 

 

Payments on capital lease obligations

 

 

(2,106

)

 

 

(658

)

Net cash provided by (used in) financing activities from continuing operations

 

 

3,624

 

 

 

(1,108

)

Net cash used in financing activities from discontinued operations

 

 

(155

)

 

 

(964

)

Net cash provided by (used in) financing activities

 

 

3,469

 

 

 

(2,072

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(43

)

 

 

120

 

Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations

 

 

(7,381

)

 

 

(2,393

)

Net increase in cash and cash equivalents and restricted cash from discontinued operations

 

 

13,116

 

 

 

4,469

 

Net increase in cash and cash equivalents and restricted cash

 

 

5,735

 

 

 

2,076

 

Cash and cash equivalents and restricted cash at beginning of period

 

 

4,787

 

 

 

5,302

 

Cash and cash equivalents and restricted cash at end of period

 

$

10,522

 

 

$

7,378

 

Ballantyne Strong, Inc. and Subsidiaries
Summary by Business Segments
(In thousands)
(Unaudited)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strong Entertainment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

5,822

 

 

$

5,260

 

 

$

16,121

 

 

$

15,041

 

Gross profit

 

 

2,154

 

 

 

889

 

 

 

5,428

 

 

 

2,769

 

Operating income

 

 

1,028

 

 

 

(79

)

 

 

2,150

 

 

 

(894

)

Adjusted EBITDA

 

 

641

 

 

 

133

 

 

 

1,056

 

 

 

(137

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

294

 

 

$

301

 

 

$

860

 

 

$

493

 

Gross profit

 

 

294

 

 

 

275

 

 

 

644

 

 

 

412

 

Operating loss

 

 

(1,146

)

 

 

(1,379

)

 

 

(4,011

)

 

 

(5,097

)

Adjusted EBITDA

 

 

(815

)

 

 

(1,049

)

 

 

(3,046

)

 

 

(4,167

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

6,116

 

 

$

5,561

 

 

$

16,981

 

 

$

15,534

 

Gross profit

 

$

2,448

 

 

$

1,164

 

 

$

6,072

 

 

$

3,181

 

Operating loss

 

$

(118

)

 

$

(1,458

)

 

$

(1,861

)

 

$

(5,991

)

Adjusted EBITDA

 

$

(174

)

 

$

(916

)

 

$

(1,990

)

 

$

(4,304

)

Ballantyne Strong, Inc. and Subsidiaries
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In thousands)
(Unaudited)

 

 

Quarters Ended September 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strong Entertainment

 

 

Corporate and Other

 

 

Discontinued Operations

 

 

Consolidated

 

 

Strong Entertainment

 

 

Corporate and Other

 

 

Discontinued Operations

 

 

Consolidated

 

Net income (loss)

 

$

7,685

 

 

$

(599

)

 

$

 

 

$

7,086

 

 

$

1,939

 

 

$

(2,003

)

 

$

5,710

 

 

$

5,646

 

Net income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,710

)

 

 

(5,710

)

Net income ( loss) from continuing operations

 

 

7,685

 

 

 

(599

)

 

 

 

 

 

7,086

 

 

 

1,939

 

 

 

(2,003

)

 

 

 

 

 

(64

)

Interest expense (income), net

 

 

25

 

 

 

(18

)

 

 

 

 

 

7

 

 

 

24

 

 

 

85

 

 

 

 

 

 

109

 

Income tax expense

 

 

2,327

 

 

 

369

 

 

 

 

 

 

2,696

 

 

 

488

 

 

 

126

 

 

 

 

 

 

614

 

Depreciation and amortization

 

 

216

 

 

 

129

 

 

 

 

 

 

345

 

 

 

226

 

 

 

46

 

 

 

 

 

 

272

 

EBITDA

 

 

10,253

 

 

 

(119

)

 

 

 

 

 

10,134

 

 

 

2,677

 

 

 

(1,746

)

 

 

 

 

 

931

 

Stock-based compensation expense

 

 

 

 

 

213

 

 

 

 

 

 

213

 

 

 

 

 

 

239

 

 

 

 

 

 

239

 

Equity method investment loss (income)

 

 

414

 

 

 

(91

)

 

 

 

 

 

323

 

 

 

20

 

 

 

440

 

 

 

 

 

 

460

 

Employee retention credit

 

 

(527

)

 

 

(90

)

 

 

 

 

 

(617

)

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain on investments

 

 

(1,689

)

 

 

 

 

 

 

 

 

(1,689

)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on investments

 

 

(7,648

)

 

 

(728

)

 

 

 

 

 

(8,376

)

 

 

 

 

 

 

 

 

 

 

 

 

Loss on disposal of assets and impairment charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

 

18

 

Foreign currency transaction (income) loss

 

 

(162

)

 

 

 

 

 

 

 

 

(162

)

 

 

172

 

 

 

 

 

 

 

 

 

172

 

Gain on property and casualty insurance recoveries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,736

)

 

 

 

 

 

 

 

 

(2,736

)

Adjusted EBITDA

 

$

641

 

 

$

(815

)

 

$

 

 

$

(174

)

 

$

133

 

 

$

(1,049

)

 

$

 

 

$

(916

)

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strong Entertainment

 

 

Corporate and Other

 

 

Discontinued Operations

 

 

Consolidated

 

 

Strong Entertainment

 

 

Corporate and Other

 

 

Discontinued Operations

 

 

Consolidated

 

Net income (loss)

 

$

7,719

 

 

$

(3,899

)

 

$

14,649

 

 

$

18,469

 

 

$

917

 

 

$

(5,938

)

 

$

6,492

 

 

$

1,471

 

Net income (loss) from discontinued operations

 

 

 

 

 

 

 

 

(14,649

)

 

 

(14,649

)

 

 

 

 

 

 

 

 

(6,492

)

 

 

(6,492

)

Net income (loss) from continuing operations

 

 

7,719

 

 

 

(3,899

)

 

 

 

 

 

3,820

 

 

 

917

 

 

 

(5,938

)

 

 

 

 

 

(5,021

)

Interest expense, net

 

 

84

 

 

 

146

 

 

 

 

 

 

230

 

 

 

91

 

 

 

281

 

 

 

 

 

 

372

 

Income tax expense

 

 

2,406

 

 

 

382

 

 

 

 

 

 

2,788

 

 

 

853

 

 

 

143

 

 

 

 

 

 

996

 

Depreciation and amortization

 

 

687

 

 

 

298

 

 

 

 

 

 

985

 

 

 

688

 

 

 

155

 

 

 

 

 

 

843

 

EBITDA

 

 

10,896

 

 

 

(3,073

)

 

 

 

 

 

7,823

 

 

 

2,549

 

 

 

(5,359

)

 

 

 

 

 

(2,810

)

Stock-based compensation expense

 

 

 

 

 

686

 

 

 

 

 

 

686

 

 

 

 

 

 

724

 

 

 

 

 

 

724

 

Equity method investment loss

 

 

1,150

 

 

 

318

 

 

 

 

 

 

1,468

 

 

 

137

 

 

 

443

 

 

 

 

 

 

580

 

Employee retention credit

 

 

(1,576

)

 

 

(336

)

 

 

 

 

 

(1,912

)

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain on investments

 

 

(1,689

)

 

 

 

 

 

 

 

 

(1,689

)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on investments

 

 

(7,648

)

 

 

(728

)

 

 

 

 

 

(8,376

)

 

 

 

 

 

 

 

 

 

 

 

 

Loss on disposal of assets and impairment charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

 

18

 

Foreign currency transaction loss (income)

 

 

56

 

 

 

 

 

 

 

 

 

56

 

 

 

(51

)

 

 

 

 

 

 

 

 

(51

)

Gain on property and casualty insurance recoveries

 

 

(148

)

 

 

 

 

 

 

 

 

(148

)

 

 

(2,850

)

 

 

 

 

 

 

 

 

(2,850

)

Severance and other

 

 

15

 

 

 

87

 

 

 

 

 

 

102

 

 

 

78

 

 

 

7

 

 

 

 

 

 

85

 

Adjusted EBITDA

 

$

1,056

 

 

$

(3,046

)

 

$

 

 

$

(1,990

)

 

$

(137

)

 

$

(4,167

)

 

$

 

 

$

(4,304

)

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