John P. Wilmers, president and CEO of Ballantyne, commented: "The financial health of the theatre exhibition industry is steadily improving and our customers are gaining improved access to capital for new theatre construction. Our sales began improving in the second quarter of 2003 and grew stronger as the year progressed, resulting in a 14% increase in projector unit shipments on a year-over-year basis."
For the 12-month period ended December 31, 2003, the company reported revenue from continuing operations of $37.4 million, compared to $33.8 million in the year-ago period. Gross profit from continuing operations in 2003 increased 53% to $8.6 million, or 23% of revenue, compared to $5.6 million, or 17% of revenue, in 2002 due to lower manufacturing costs resulting from increased production volume.
The Company's expectations for 2004 include continued improvement in projector unit sales over 2003 levels, continued sales of MegaSystems large format theatre products, and continued operating leverage gained through manufacturing efficiencies. The Company's strategic focus will be on diversifying its revenue base through the development of new product lines or through strategic acquisitions.
"The industry at-large grows more financially stable each year, giving us optimism about our prospects in 2004," added Wilmers. "Visibility into the theatre construction schedules of our customers has significantly improved, and we have greater confidence that new equipment purchase commitments will be fulfilled. This stability will contribute to a more firm financial base from which to pursue new internal growth initiatives and complementary acquisitions that build our theatre equipment market share in the year ahead and beyond."
(Lee Baldock)
