Ballantyne Q3 Net Revenues Rise 34% to $16.6 Million and EPS Rises to $0.04 From Year-Ago Loss of ($0.02)

http://www.businesswire.com/news/home/20091109006490/en

OMAHA, Neb.--(Business Wire)--
Ballantyne Strong, Inc. (NYSE Amex: BTN):

Conference call: Today, Monday, November 9, 2009 at 4:30 p.m. ET
Webcast / Replay URL: www.earnings.com or http://www.ballantyne-strong.com/IREvents.aspx
The replay will be available on the Internet for 90 days.
Dial-in number: 800-734-4208 (no pass code required)

Ballantyne Strong, Inc. (NYSE Amex: BTN), a provider of digital cinema
projection equipment and services, cinema screens and other cinema products,
today reported financial results for the third quarter (Q3) and nine months
ended September 30, 2009.

Q3 2009 net revenues rose 34% to $16.6 million from net revenues of $12.3
million in Q3 2008, principally driven by sales of digital cinema equipment
which rose to $5.2 million in Q3 2009 compared to $1.5 million a year ago and
sales of cinema screens which rose to $2.8 million versus $1.5 million in Q3
2008. The increase in digital cinema equipment and cinema screen sales reflects
growing global demand for digital projection systems and specialty "silver"
screens that are used to deliver a 3-D cinema experience.

Q3 2009 gross profit increased to $3.6 million, or 21.5% of net revenues,
compared to gross profit of $2.1 million, or 17.4% of net revenues, in Q3 2008.
The increase in gross margin reflected improved margins being achieved across
digital cinema projectors and cinema screens, as well as cost reductions in the
Company`s Omaha facility. SG&A in Q3 2009 decreased to $2.4 million compared to
$2.8 million in the year ago period, primarily reflecting personnel reductions
and associated decreases in salary, benefit and travel expenses coupled with
lower audit and bank fees.

Net income increased to $0.5 million, or $0.04 per diluted share, in Q3 2009
compared to a net loss of $0.3 million, or ($0.02) per diluted share, a
year-ago. Per share results for the third quarters of 2009 and 2008 are based on
a weighted average number of diluted shares outstanding of 14,163,609 and
13,933,152, respectively.

Balance Sheet Update:

Ballantyne continued to generate cash in Q3 2009, ending the quarter with a
strong balance sheet with $23.3 million in cash and cash equivalents. This
compares to cash and cash equivalents of $21.2 million as of June 30, 2009.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented,
"During the third quarter Ballantyne extended the momentum established in the
first half of the year, delivering year-over-year improvements in digital cinema
projection products, cinema services and cinema screen sales. Of particular
note, digital cinema projection equipment sales increased 217% from the prior
year, bolstered by international sales including initial revenue from a recent
order from China Film Group. Additionally, our Strong/MDI screen business
delivered another quarter of substantial year-over-year growth, primarily due to
ongoing demand for silver screens required to exhibit 3-D cinema.

"Though large scale demand for digital cinema services has yet to begin, our
industry leading cinema service organization, Strong Technical Services (STS),
continued to expand its base of customer relationships, securing a professional
services agreement with a major digital cinema equipment provider, as disclosed
previously. This agreement highlights STS`s projector `agnostic` strategy as
well as its position as one of the industry`s largest and most capable digital
cinema service organizations. Finally, we are also pleased with the initial and
very encouraging customer reviews received about NEC`s next generation 2K
digital cinema projector line which we debuted at the ShowEast industry
tradeshow late last month. This new line should be available for customer
shipments next year."

Nine Month Results

For the nine months ended September 30, 2009, net revenues rose 32.7% to $53.3
million compared to $40.1 million a year ago. Gross profit in the first nine
months of 2009 was $11.2 million, or 21.0% of net revenues, compared to gross
profit of $6.5 million, or 16.2% of net revenues, for the first nine months of
2008. Net income for the first nine months of 2009 amounted to $2.0 million, or
$0.14 per diluted share, compared to a net loss of $0.7 million, or $(0.05) per
diluted share, in the first nine months of 2008. Per share results for the first
nine months of 2009 and 2008 are based on a weighted average number of diluted
shares outstanding of 14,138,813 and 13,984,300, respectively.

About Ballantyne Strong, Inc.

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. For more information visit www.ballantyne-strong.com.

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.

Ballantyne Strong, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008

Net revenues $ 16,552,036 $ 12,309,109 $ 53,298,196 $ 40,149,385
Cost of revenues 12,996,753 10,162,989 42,111,250 33,643,529
Gross profit 3,555,283 2,146,120 11,186,946 6,505,856

Selling & administrative expenses:
Selling 518,790 835,294 1,954,980 2,365,814
General & administrative 1,921,228 1,989,584 5,873,540 5,649,852
Total SG&A expense 2,440,018 2,824,878 7,828,520 8,015,666
Gain (loss) on sale of assets 229 24,783 (1,714) 281,668
Income (loss) from operations 1,115,494 (653,975) 3,356,712 (1,228,142)

Interest income 10,369 127,855 80,903 403,391
Interest expense (8,116) (8,805) (25,557) (26,503)
Equity in loss of Joint Venture (219,420) (164,329) (637,557) (462,229)
Other income (expense) net (142,734) 74,474 (29,830) 121,148
Income (loss) before income taxes 755,593 (624,780) 2,744,671 (1,192,335)
Income tax benefit (expense) (212,497) 284,132 (725,935) 477,170
Net income (loss) $ 543,096 $ (340,648) $ 2,018,736 $ (715,165)

Earnings (loss) per share
Basic $ 0.04 $ (0.02) $ 0.14 $ (0.05)
Diluted $ 0.04 $ (0.02) $ 0.14 $ (0.05)

Weighted average shares outstanding:
Basic 14,005,912 13,933,152 13,996,533 13,984,300
Diluted 14,163,609 13,933,152 14,138,813 13,984,300

Selected Balance Sheet Items:
September 30, December 31,
2009 2008
(unaudited)
Cash and cash equivalents $ 23,262,898 $ 11,424,984
Restricted cash 729,827 701,498
Accounts receivable and unbilled revenue, net 9,308,664 7,038,258
Inventories, net 12,390,424 9,476,687
Long-term investments in securities, net - 8,883,420
Total current liabilities 15,814,295 10,960,830
Total stockholders` equity $ 42,300,361 $ 38,834,639

Selected Cash Flow Statement Items (unaudited):
Nine Months Ended
September 30,
2009 2008

Net income (loss) $ 2,018,736 $ (715,165)
Depreciation and amortization 1,329,011 1,879,244
Equity in loss of Digital Link II Joint Venture 637,557 462,229
Net cash provided by operating activities 2,271,611 1,273,733
Capital expenditures (807,715) (632,772)
Proceeds from redemptions of investment securities 10,025,000 1,250,000
Net cash provided by investing activities 9,261,959 775,415
Net increase in cash & cash equivalents 11,837,914 2,220,371
Cash & cash equivalents at beginning of period 11,424,984 4,220,355
Cash & cash equivalents at end of period $ 23,262,898 $ 6,440,726

Ballantyne Strong, Inc.
Kevin Herrmann, 402-453-4444
Chief Financial Officer
or
Jaffoni & Collins Incorporated
David Collins, Ratula Roy, 212-835-8500
btn@jcir.com

Copyright Business Wire 2009