Previous Statements by BTN
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Listeners should note that these statements are only predictions. They are subject to inherent risks and uncertainties that are detailed from time-to-time in the company’s Securities & Exchange Commission filings.The company’s actual performance may differ materially because of these and other factors discussed in the management discussion and analysis of results of operations and financial conditions section of the company’s SEC filings, copies of which can be obtained from the SEC or Ballantyne’s new website www.strong-world.com. All information in this conference call is as of today and the company undertakes no obligation to update these statements or these expectations from prior conversations. I’ll remind listeners that this call is being webcast live over the Internet and that a replay will be available on Ballantyne’s website for 30 days after the call ends. I’m now going to turn the call over to President and CEO, Gary Cavey, who is joined this morning by CFO, Kevin Herrmann. Gary? Gary Cavey Thank you, Rob. Good morning everybody. We appreciate you joining us today. Earlier today we reported the 2011 first quarter earnings per share of $0.11 up from $0.07 the prior year on a 26% increase in net revenues to $31.9 million. All three of our core digital cinema components of Ballantyne’s businesses, projection equipment, screens and services achieved solid year-over-year increases compared to the 2010 period. Kevin will give you more color in specifics on our performance following my remarks. We demonstrated strong year-over-year sales increases in these three key digital areas. However, the timing of certain digital equipment sales was impacted principally due delays in certain customer closing their financing arrangements with third party lenders. These three ways impacted our Q1 top and bottom line performance. As we discussed on our last conference call, many of these independent change have stopped short of digitizing their entire circuits due to lack of available funding. Many exhibitors, customers have partnered with Ballantyne for decades, giving the company nearly 80 years presents in the cinema industry and we of course will continue to assist the independent theatres with the processes of locating potential funding sources with the goal of ultimately supplying them with their turnkey projection systems, screens and after care maintenance and monitoring services.
With the recently improved domestic box offices numbers here in Q2 and optimism surrounding the upcoming 2011 movie slate as well as the 2012 pipeline, we’ve also remain very confident that the recent funding bottom bottlenecks is in the process of being elevated. Our business is also seeing very positive signs in Q2.We believe Ballantyne continues to be uniquely well positioned as the leading one-stop cinemas solutions provider. Our organization has unrivaled wealth of exhibitor relationships around the globe that we expect we’ll continue to be benefit us in the near and long-term. Now that we entered the digital age of cinema, we expect movie theatre technology to evolve at a considerably faster pace. And given BTN’s diversified turnkey business model, we expect to be at the nexus on the ongoing rapid pace of industry change. International markets, especially China and Latin America, should continue to offer many more growth opportunities for Ballantyne. The Chinese government is backing the financing of their cinema sectors growth and that early stage up trend is expected the last for years into the future. They are focused on adding brand new and cutting edge digital complexes to satisfy the huge demand for cinema. As I also mentioned on our recent Q4 call, China presently has only about 6,500 movies screens to keep the population more than 1.3 billion people entertained. We have seen a wide range of predictions for these projected Chinese screen growth with the most conservative estimates, estimating on the 100% growth over the next five year period. United States in contrast has approximately 39,000 movie screens for a population of about 310 million. You can do them quick maps and see why we are excited about the tremendous growth opportunity that China presents. Ballantyne in particular is uniquely positioned for success in the region as our partner NEC is manufacturing digital projectors domestically in China. We also continue to gain attraction with our cinema screen business in that country. Our company is shipping uncut roles of cinema screen to Ballantyne’s China based partner who completes the process of making them both theatre worthy and ready for installation. Read the rest of this transcript for free on seekingalpha.com