Form 8-K BALLANTYNE STRONG, INC. For: May 06

May 6, 2021 4:30 PM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

May 6, 2021

Date of Report (Date of earliest event reported)

 

BALLANTYNE STRONG, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   1-13906   47-0587703
(State or other jurisdiction of   (Commission   (IRS Employer
incorporation or organization)   File No.)   Identification Number)

 

4201 Congress Street, Suite 175    
Charlotte, North Carolina   28209
(Address of principal executive offices)   (Zip Code)

 

(704) 994-8279

(Registrant’s telephone number including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on Which Registered
Common Shares, $.01 par value   BTN   NYSE American

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

Ballantyne Strong, Inc., a Delaware corporation (the “Company”), issued a press release on May 6, 2021, with earnings information for the Company’s first fiscal quarter ended March 31, 2021. The press release is furnished with this Current Report on Form 8-K (this “Current Report”) as Exhibit 99.1.

 

Item 7.01 Regulation FD Disclosure

 

The information set forth under Item 2.02 of this Current Report is incorporated herein by reference. In addition, on May 6, 2021, management of the Company plans to discuss the Company’s financial results for the first quarter ended March 31, 2021 and the Company’s business plan, strategy and outlook on an earnings conference call with analysts and investors. The supplemental slides to be referenced during the conference call are furnished with this Current Report as Exhibit 99.2.

 

The information contained in Items 2.02 and 7.01 to this Current Report, including the exhibits, is being “furnished” and, as such, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Forward Looking Statements

 

In addition to the historical information included herein and in the related exhibits, this Current Report includes forward-looking statements, such as management’s expectations regarding future sales, the impact, length and severity 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 companies in which the Company holds investments; 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.

 

 

 

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description
     
99.1   Press Release, dated May 6, 2021, issued by the Company.
     
99.2   Supplemental Slides to be Referenced During the First Quarter Conference Call of Ballantyne Strong, Inc.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  BALLANTYNE STRONG, INC.
     
Date: May 6, 2021 By: /s/ Todd R. Major
    Todd R. Major
    Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

 


Ballantyne Strong Reports First Quarter 2021 Operating Results

 

Charlotte, NC – May 6, 2021 Ballantyne Strong, Inc. (NYSE American: BTN) (the “Company” or “Ballantyne Strong”) today announced financial results for the first quarter ended March 31, 2021.

 

Recent Financial and Operational Highlights

 

  Operating loss and Adjusted EBITDA of Strong Entertainment improved as cost management initiatives offset impact of COVID-19 on screen and services revenue.
    Cinema businesses are positioned for revenue growth post-COVID in both services and screens.
    Eclipse product line (immersive solid curved screens) continued to generate strong performance through the pandemic.
       
  Completed sale of Convergent operating segment.
    Net gain from sale of approximately $15 million.
       
  Subsequent to the close of the first quarter, portfolio holding GreenFirst Forest Products Inc. (“GreenFirst”), initiated the acquisition of $214 million in lumber and forest products assets along with a rights offering to finance the transaction.
    Ballantyne Strong holds 7.0 million shares of GreenFirst and is committed to backstop up to $1.6 million of the related rights offering.

 

“We are excited to see the continued positive trends in our Strong Entertainment operating business and in our investment holdings,” commented Mark Roberson, Chief Executive Officer. “We expect cinemas and theme park attendance levels to strengthen in the second half of the year as vaccine rollouts continue, restrictions are eased, and an unprecedented backlog of blockbusters start to hit the theatres. As a leader in screens and services, we are well positioned to benefit from the post-COVID recovery in the industry.

 

“Our investment portfolio continued to make significant progress, particularly following the close of the quarter, which was not reflected in our financials. The unrealized value of these investments has increased approximately 290% as compared to their carrying value on our balance sheet as of March 31, 2021. GreenFirst announced a $214 million lumber and forest products acquisition and plans to commence a rights offering to support the equity financing of the transaction. This is a transformative acquisition that is expected to make GreenFirst a top ten lumber producer in Canada. We own approximately 7.0 million shares of GreenFirst and anticipate receiving approximately 21.1 million rights to acquire shares of GreenFirst at $1.50 in the proposed offering.

 

“We also completed the sale of Convergent and conducted an equity capital raise, thereby increasing our cash position, reducing our liabilities and strengthening our balance sheet flexibility. We are now well positioned to capitalize on the post-COVID growth opportunities within our Strong Entertainment business and to allocate capital to our investment strategies.”

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 2 of 9

 

First Quarter 2021 Financial Review (As Compared to the Continuing Operations from the Three Months Ended March 31, 2020)

 

  Revenue decreased 35.6% to $4.8 million from $7.4 million. The decrease was primarily due to the impact of COVID-19 on customer demand for screen products and technical services at Strong Entertainment. The Company expects industry revenues and business levels to recover in the second half of 2021, as restrictions ease and studios begin releasing the current backlog of content to the exhibitors.
     
  Gross profit decreased 37.9% to $1.2 million from $1.9 million and gross profit margins decreased to 24.3% from 25.2%. Cost reduction initiatives offset the revenue reduction, resulting in gross profit margins as a percent of revenue remaining relatively stable despite the reduced business levels.
     
  Loss from operations improved 29.7% to $1.8 million from $2.5 million. The improvement was the result of a decrease in SG&A expenses due to cost reduction initiatives and lower bad debt expenses, which offset the revenues and gross margins impact caused by COVID-19.
     
  Net loss from continuing operations was $2.5 million, or $0.15 per basic and diluted share, as compared to $1.1 million, or $0.07 per basic and diluted share.
     
  Adjusted EBITDA improved 44.7% to negative $1.1 million from negative $1.9 million primarily due to reductions in SG&A expenses and bad debt expenses.

 

Conference Call

 

A conference call to discuss the Company’s first quarter 2021 financial results will be held on Thursday, May 6, 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 https://ballantynestrong.com/investors or use following link: BTN Webcast Link. To access the conference call by phone, dial (877) 215-3569 (domestic) or (312) 281-2972 (international) and provide the operator with conference ID number 21993728. 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 https://ballantynestrong.com/investors. A replay of the conference call will also be accessible approximately three hours after the conclusion of the conference call and available until Saturday, May 8, 2021 by dialing (844) 512-2921 (domestic and Canada) or (412) 317-6671 (international) and entering the conference ID number 21993728.

 

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, 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 gains and expenses, gains on insurance recoveries 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.

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 3 of 9

 

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 our performance to that of our 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. (https://ballantynestrong.com/) is a diversified holding company with operations and investments 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 investment 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 30% ownership position in GreenFirst Forest Products Inc. (TSX: GFP), which has recently completed an investment in a sawmill and related assets, and a 21% 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.

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 4 of 9

 

Forward-Looking Statements

 

In addition to the historical information included herein, this press release includes forward-looking statements, such as management’s expectations regarding future sales, the impact, length and severity 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 companies in which the Company holds investments; 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:

 

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. – Fiscal Year 2021

First Quarter 2021 Results

Page 5 of 9

 

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except par values)

 

   March 31, 2021   December 31, 2020 
   (unaudited)     
Assets          
Current assets:          
Cash and cash equivalents  $22,317   $4,435 
Restricted cash   150    352 
Accounts receivable   4,565    5,558 
Inventories, net   2,340    2,264 
Current assets of discontinued operations   -    3,748 
Other current assets   1,769    1,452 
Total current assets   31,141    17,809 
Property, plant and equipment   5,430    5,524 
Operating lease right-of-use assets   4,152    4,304 
Finance lease right-of-use assets   3    4 
Note receivable, net of current portion   2,292    - 
Investments   19,484    20,167 
Intangible assets, net   282    353 
Goodwill   950    938 
Long-term assets of discontinued operations   -    6,372 
Other assets   1,530    28 
Total assets  $65,264   $55,499 
           
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable  $2,333   $2,717 
Accrued expenses   2,324    2,182 
Short-term debt   3,674    3,299 
Current portion of operating lease obligations   607    619 
Current portion of finance lease obligations   1,047    1,015 
Deferred revenue and customer deposits   2,466    2,404 
Current liabilities of discontinued operations   -    3,901 
Total current liabilities   12,451    16,137 
Operating lease obligations, net of current portion   3,672    3,817 
Finance lease obligations, net of current portion   817    1,091 
Deferred income taxes   2,991    3,099 
Long-term liabilities of discontinued operations   -    4,066 
Other long-term liabilities   241    223 
Total liabilities   20,172    28,433 
           
Stockholders’ equity:          
Preferred stock   -    - 
Common stock   211    176 
Additional paid-in capital   50,295    43,713 
Retained earnings   17,465    5,654 
Treasury stock, at cost   (18,586)   (18,586)
Accumulated other comprehensive loss   (4,293)   (3,891)
Total stockholders’ equity   45,092    27,066 
Total liabilities and stockholders’ equity  $65,264   $55,499 

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 6 of 9

 

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

   Three Months Ended March 31, 
   2021   2020 
Net product sales  $3,528   $5,232 
Net service revenues   1,244    2,182 
Total net revenues   4,772   7,414 
Cost of products sold   2,443    3,461 
Cost of services   1,169    2,086 
Total cost of revenues   3,612    5,547 
Gross profit   1,160    1,867 
Selling and administrative expenses:          
Selling   476    598 
Administrative   2,441    3,770 
Total selling and administrative expenses   2,917    4,368 
Loss from operations   (1,757)   (2,501)
Other income (expense):          
Interest income   13    - 
Interest expense   (90)   (127)
Foreign currency transaction gain   16    528 
Other income, net   142    19 
Total other income   81    420 
Loss from continuing operations before income taxes and equity method investment loss   (1,676)   (2,081)
Income tax expense   (69)   (342)
Equity method investment loss   (769)   1,369 
Net loss from continuing operations   (2,514)   (1,054)
Net income from discontinued operations   14,325    607 
Net income (loss)  $11,811   $(447)
           
Basic and diluted net income (loss) per share          
Continuing operations  $(0.15)  $(0.07)
Discontinued operations   0.85    0.04 
Basic and diluted net income (loss) per share  $0.70   $(0.03)

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 7 of 9

 

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

   Three Months Ended March 31, 
   2021   2020 
Cash flows from operating activities:          
Net loss from continuing operations  $(2,514)  $(1,054)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:          
(Recovery of) provision for doubtful accounts   (32)   747 
(Benefit from) provision for obsolete inventory   (3)   89 
Provision for warranty   37    53 
Depreciation and amortization   274    284 
Amortization and accretion of operating leases   184    241 
Equity method investment loss (gain)   769    (1,369)
Deferred income taxes   (116)   23 
Stock-based compensation expense   314    273 
Changes in operating assets and liabilities:          
Accounts receivable   975    1,619 
Inventories   (53)   (238)
Current income taxes   (68)   (105)
Other assets   (202)   (196)
Accounts payable and accrued expenses   (743)   811 
Deferred revenue and customer deposits   286    112 
Operating lease obligations   (188)   (240)
Net cash (used in) provided by operating activities from continuing operations   (1,080)   1,050 
Net cash provided by operating activities from discontinued operations   186    1,589 
Net cash (used in) provided by operating activities   (894)   2,639 
           
Cash flows from investing activities:          
Capital expenditures   (47)   (282)
Net cash used in investing activities from continuing operations   (47)   (282)
Net cash provied by (used in) investing activities from discontinued operations   12,761    (89)
Net cash provided by (used in) investing activities   12,714    (371)
           
Cash flows from financing activities:          
Principal payments on short-term debt   (79)   (55)
Proceeds from stock issuance, net of costs   6,310    - 
Payments of withholding taxes related to net share settlement of equity awards   (7)   - 
Payments on capital lease obligations   (242)   (214)
Net cash provided by (used in) financing activities from continuing operations   5,982    (269)
Net cash used in financing activities from discontinued operations   (155)   (409)
Net cash provided by (used in) financing activities   5,827    (678)
           
Effect of exchange rate changes on cash and cash equivalents   33    5 
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations   4,888    504 
Net increase in cash and cash equivalents and restricted cash from discontinued operations   12,792    1,091 
Net increase (decrease) in cash and cash equivalents and restricted cash   17,680    1,595 
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  $22,467   $6,897 

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 8 of 9

 

Ballantyne Strong, Inc. and Subsidiaries

Summary by Business Segments

(In thousands)

(Unaudited)

 

   Three Months Ended March 31, 
   2021   2020 
         
Strong Entertainment          
Revenue  $4,472   $7,313 
Gross profit   889    1,795 
Operating income   (247)   (374)
Adjusted EBITDA   (81)   (142)
           
Corporate and Other          
Revenue  $300   $101 
Gross profit   271    72 
Operating loss   (1,510)   (2,127)
Adjusted EBITDA   (992)   (1,799)
           
Consolidated          
Revenue  $4,772   $7,414 
Gross profit  $1,160   $1,867 
Operating loss  $(1,757)  $(2,501)
Adjusted EBITDA  $(1,073)  $(1,941)

 

 

Ballantyne Strong, Inc. – Fiscal Year 2021

First Quarter 2021 Results

Page 9 of 9

 

Ballantyne Strong, Inc. and Subsidiaries

Reconciliation of Net Income (Loss) to Adjusted EBITDA

(In thousands)

(Unaudited)

 

   Quarters Ended March 31, 
   2021   2020 
   Strong Entertainment   Corporate and Other   Discontinued Operations   Consolidated   Strong Entertainment   Corporate and Other   Discontinued Operations   Consolidated 
Net (loss) income  $(608)  $(1,906)  $14,325   $11,811   $(195)  $(859)  $607   $(447)
Net income from discontinued operations   -    -    (14,325)   (14,325)   -    -    (607)   (607)
Net loss from continuing operations   (608)   (1,906)   -    (2,514)   (195)   (859)   -    (1,054)
Interest expense, net   24    53    -    77    32    95    -    127 
Income tax expense   63    6    -    69    287    55    -    342 
Depreciation and amortization   236    38    -    274    230    54    -    284 
EBITDA   (285)   (1,809)   -    (2,094)   354    (655)   -    (301)
Stock-based compensation expense   -    314    -    314    -    273    -    273 
Equity method investment loss (income)   353    416    -    769    48    (1,417)   -    (1,369)
Foreign currency transaction income   (16)   -    -    (16)   (528)   -    -    (528)
Gain on property and casualty insurance recoveries   (148)   -    -    (148)   (16)   -    -    (16)
Severance and other   15    87    -    102    -    -    -    - 
Adjusted EBITDA  $(81)  $(992)  $-   $(1,073)  $(142)  $(1,799)  $-   $(1,941)

 

 

 

 

Exhibit 99.2

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

 

 



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