Ballantyne
Strong, Inc. (NYSE Amex: BTN), a provider of digital cinema products
and services, announced today a corporate-wide refocus on its worldwide
digital equipment distribution business, leading services platform and
state-of-the-art cinema screen manufacturing business. This strategic
initiative best repositions Ballantyne for future growth opportunities
within the global cinema industry. The Company has decided to sell its
Omaha, NE-based analog projector facility and manufacturing equipment
and relocate its corporate headquarters to a new, smaller location in
Omaha, which will also house its cutting-edge Network Operations Center
(NOC).
“Following a detailed strategic review by our Board and senior
management we have determined that the best course of action for
long-term success is a focus on our equipment distribution, cinema
service and screen businesses while exiting the analog projector
manufacturing business,” stated Ballantyne Strong CEO Gary L. Cavey. “We
launched our digital projector distribution operations with NEC in the
Americas in 2005, expanded it to Asia including China in 2008 and added
the Barco digital projector lines for the Americas this past October.
Ballantyne’s Strong/STS maintenance and NOC service businesses are
growing with significant potential for future expansion. Our Strong/MDI
subsidiary is one of the leading worldwide cinema screen manufacturers
with a state-of-the-art facility in Quebec, which produces silver, large
format and a wide array of other specialty screens for a global customer
base. Additionally, we also are excited about our Solutions line of LED
lighting, which we believe has great growth potential.
“Today’s moves leverage Ballantyne’s deep exhibition industry
relationships and a worldwide leadership reputation built over eight
decades. The digital cinema movement has gained momentum over the past
few years, transforming the exhibition industry and speeding up the pace
of technological change. In anticipation we have been successfully
transforming our Company into a leader in digital cinema infrastructure.
“The Company has grown organically and through recent key strategic
acquisitions that added Ballantyne’s service and screen manufacturing
businesses and we will continue to seek additional ways to expand both
organically and inorganically. Importantly, these initiatives also
free-up assets for redeployment in Asian and Latin American markets
where we continue to see significant potential,” noted Mr. Cavey.
Ballantyne expects the net financial impact of the sale of its building
and equipment to result in a gain, however, it also expects to record a
pre-tax severance charge of approximately $900,000 in Q4 2011.
About Ballantyne Strong, Inc. (
www.strong-world.com)
Ballantyne Strong is a provider of digital cinema projection equipment
and services as well as cinema screens, motion picture projectors and
specialty lighting equipment and services. The Company supplies major
and independent theater chains, top arenas, theme parks and
architectural sites around the world.
Except for the historical information in this press release, it includes
forward-looking statements that involve risks and uncertainties,
including but not limited to, quarterly fluctuations in results;
customer demand for the Company’s products; the development of new
technology for alternate means of motion picture presentation; domestic
and international economic conditions; the management of growth; and
other risks detailed from time to time in the Company’s Securities and
Exchange Commission filings. Actual results may differ materially from
management’s expectations.
Copyright Business Wire 2012
