Financial Results in Focus: Ballantyne Strong, Inc (NYSE-BTN)

On Wednesday, Ballantyne Strong, Inc (NYSE-BTN) shares price traded between $2.9750 and $3.1700 during the last trading session above/below with -0.63% at $3.1500. The shares recorded a trading volume 19,652 shares as compared to its average volume of 30,134 shares. The company has 14.52M shares outstanding and market value of 45.734M.

Ballantyne Strong, Inc. (BTN) recently reported financial results for the period ended December 31, 2018. The Company conducts its operations through three operating sections: Strong Cinema, Convergent and Strong Outdoor.

Fourth Quarter and Full Year 2018 Highlights

  • Total revenue raised 15.7% to $18.2M for the fourth quarter of 2018Because of quarterly revenue growth from Convergent and incremental revenue from the start-up of Strong Outdoor. For the year, revenue reduced 11.0% to $64.7M as reductions at Convergent and Strong Cinema, where we eliminated several product lines earlier in the year, were partially offset by the start-up of Strong Outdoor.
  • Gross profit raised 15.6% to $4.5M for the fourth quarter of 2018Because of raised quarterly revenues at Convergent and Strong Outdoor combined with cost reduction initiatives at Convergent. For the year, gross profit reduced 35.7% to $12.2M largely Because of the startup costs of Strong Outdoor, and lower yearlyrevenue at Convergent.
  • Operating income amounted to $0.1M for the fourth quarter of 2018 contrast to a loss of $1.9M in the fourth quarter of 2017Because of the combination of higher quarterly revenue and cost reduction initiatives implemented at Convergent. For the year, operating loss was $10.3M contrast to a loss of $2.8M in the previous year, largely Because of the startup costs of Strong Outdoor and the operating losses incurred in the first three quarters in connection with the repositioning of Convergent.
  • Net loss was $0.6M ($0.04 per share) for the fourth quarter of 2018 as contrast to a loss of $1.0M ($0.07 per share) in the fourth quarter of the previous year. For the year, net loss was $12.3M ($0.86 per share) as contrast to a loss of $3.6M ($0.25 per share) in the previous year, largely Because of the startup costs of Strong Outdoor and impairment charges incurred in connection with the repositioning of Convergent.
  • Adjusted EBITDA, a non-GAAP measure, improved to positive $1.4M for the fourth quarter of 2018 from negative $0.4M in the fourth quarter of 2017Because of quarterly revenue growth combined with improved operating expenses. For the year, adjusted EBITDA was a loss of $3.7M in 2018 contrast to positive $0.5M in 2017, largely Because of the start-up costs of Strong Outdoor and operating losses in the first nine months for Convergent.

Kyle Cerminara, Chairman and CEO commented, “We demonstrated important progress in all three lines of business during the fourth quarter, resulting in importantly improved quarterly operating results. Strong Cinema continued to produce stable high margin performance, while Convergent turned the corner on raised recurring revenue and lower operating costs in the fourth quarter. Strong Outdoor, which started operations in early 2018, began generating meaningful revenue for the first time.”

The company has price to cash ratio of 8.59. The stock’s price switched up 8.77% 20-Days Simple Moving Average added 31.24% from 50-Days Simple Moving Average and rose 8.07% from 200 Days Simple Moving Average.

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