Participants
Mark Roberson | EVP & CFO |
Daniel Kyle | Executive Chairman & CEO |
Call transcript
Mark Roberson | EVP & CFO |
Daniel Kyle | Executive Chairman & CEO |
Greetings. Welcome to Ballantyne Strong Inc.
Third Quarter 2019 Earnings Call. [Operator Instructions]. Please note, this conference is being recorded. Ballantyne conference of Kyle and the Chief Officer the Officer Chief Mark turn Financial Chairman and Board of now over Cerminara, to Executive Roberson, I'll Strong. of Directors; Thank you.
You may begin.
September Strong's Earnings for Quarter Welcome to XX, Conference Ballantyne XXXX. the Call Third ended
this is These and Before on company statements law. and no on current like views are as expressly obligation statements I'd forward of disclaims the be begin, statements, to remind everyone based will we some obligation and update looking expectations today by that except under to made call in nature. any required as management's forward-looking
statements These materially subject differ from uncertainties and those described that call. risks may are in actual to also cause results today's to
company's also and Today's Risks and SEC uncertainties filings. contains measures. to are discussion non-GAAP financial the presentation also references in described
definitions terms The Investor available GAAP in in measures section earnings to of are reconciliations the release our website. posted Relation's non-GAAP the and of
companies, used may measures our not non-GAAP other investment all before understand review financial Our encourage decisions. to reportings of making be those you and any to by and comparable we
At this to time, over the I'd to Kyle. call like turn
financials minutes I'm strategic you community. to Mark. Relations share have started to today. and to to ago, key the morning, to I a call calls it as us with spend before We on and turn will in doing Today, calls the going after and year doing Investor our more the build our about and go quarterly on improve Thanks, over detail. more on on Mark a of Good conference a continue basis. our joining investment key for some we of regular business joined plan thank and on initiatives shortly Mark few strategy quarterly talking we us forward review going a financial to highlights
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stand we product today our with where about suite. excited current We're
position this Strong the new so that goal and more provide customers company. revenue and focused Our improved is the to we and our company year, from have results current earlier in investments the company. making additional better opportunities as for serve we're for a and business can Cinema profitable
theme Eclipse growth Our curve our a started coming making and see year investments in ago, we accommodate acquisition to that theaters expanding is screens beginning screens. we're and we team to facility parks, solid from other and flying benefit
new sales have expected facility our opening global a be build force a We'll to strong in to making also We're new January operational sales with China screen parts investments other force. a world the in XXXX. up of in facility
valuable interesting operations business last have significant the over made new the business unique our Services Managed a to service very and in we sales Our in training, years ways. and leverage center made look is has teams for Convergent company. investments technology network and significant becoming and few and progress
improves recurring in to industry Digital Convergent, our to the pleased a revenue it the We're Our continue with growing and though improvement offering an become profitability. in has product product and signage business. Outdoor Systems, year, our profitability, led and our and a we Francisco-based we customers improvement creates we company long-term we of as the the margins with a Firefly. Service called very Signage unique better business with transaction company, the more at build offering Firefly most being and has digital valuation this believe advertising of focus digital San as combined and on we that Earlier Strong the significant completed the with relationship shareholder valuable our an M&A result became
team to over platform U.S. and the and the next and our Firefly around from capital a digital that take to advertising margins we're about NFX. ventures marketing. sales the platform the had maintains and DV million continuing cities operating while financial and invest losses, global key in its improving $XX dual static Outdoor of with significant level, or of has Firefly We including business backing major prominent felt funds, to its progress raised the in in and and hires in world. platform some the Strong Firefly excited made has reducing
Ballantyne We a been lot a combinations work our few evaluating could Strong, to and that makes hard value we've that add for significant continue believe at of sense potential for M&A shareholders.
we've the worked transactions and to businesses, investment of Over with the of or in opportunity bankers year strategy to consultants each outcomes. last the our reviewed course best two, identify do we've and
maximize best Our goal is our shareholders, value. transaction so do the that for can possible we
welcome we're possible transaction or to our combination shareholders. than shareholders. transaction and to do the transaction and to clear, motivations competition, our opportunity other find with discuss had not working To right best be we tirelessly the do a for do an diligently our the opportunity We for to no a specific to
we've and businesses for turn it opportunity our to meantime, the value of find businesses make I'll the each I in Mark. before In to each of we final the point few quarters, The shareholders. right work until of our our last improve over progress made over we'll the
will in forecast few in systems better understand ideally years, business Over the that last future. help we've investments us technology, and and our the processes made
have make our still in we investments progress. But additional substantial made We've some to systems.
continues benefiting high too working zero-based and begin our ago. few from able budgeting to efforts to Corporate be a began we're reduce we're finally it. through We also that believe to overhead years
the additional to reduction match opportunities is today have next made and we in an we be in cost we the company will that months. the made on important a still of been Some of lot we're actual XXXX. to and work working it for the initiative few in investments cost, progress get today. It's This reducing where positioned
time through our it time a now do North performance. meeting like to walk have lot us out in-person We financial with Mark I'm anyone an encourage would going more some a our to or call and over to work to in reach you on to execute to to business spend future you I'd If turn us, plans. for Carolina. to schedule
With to turn walk you Mark now through the to that, I'd like results. call our over to
on quarter-over-quarter both and Overall consolidated year-to-date Kyle. improved operating basis. Thanks, significantly the results
five If with basis on X.X% XX, you past to the over XX the the Cinema decreased a refer year for Total quarter Slides can for revenue consolidated well see after as to rebounding increased QX in trend you the first results X and compared months as quarters. prior half. lower X.X% and first
on loss the operating margins $X.X $XX,XXX year. they year-to-date million prior prior XX.X% the consolidated basis, profit a for improved million from Operating XX.X% in basis, QX of year. was XX.X%. XX.X%. a to On from XX% from the On positive to for Gross to a improved quarter year-to-date $XX.X improved million loss income from $X.X by a in basis over
in operating the negative from consolidated prior million rebounded the deliver and third comps business The model increasing -- a operations Convergent in transition from adjusted the adjusted income improved is to period. QX results following improvement from QX million the EBITDA primarily our by DSaaS Adjusted factors. for to EBITDA following half headwinds, $X.X quarter one, the $XXX,XXX to now to better from generating and negative XX% losses. XXX of year-to-date EBITDA and driven sequentially on year results X $X.X year Number Cinema our years continues first basis, last improved QX. business $XXX,XXX to in positive with were
lower an resources the On on in we cost structure while Outdoor over is operating transaction of the the quarters. business XX, better Digital. Cinema business leveraging a positioned past Firefly's Slide Firefly in increasing following Strong operating much our and and focus expertise trends with ad non-digital scaling X present the
roof significantly and the dipped our profitability in manufacturing in QX plant. and QX, following Revenues issue
revenues adjusted EBITDA and Income and production and back returned bounce levels. doubling operations began operating to nearly orders with closer from to QX, QX normalized income as increased suit both in to volume. MDI adjusted on However from EBITDA followed QX
the to screen capacity to facility upgrades and we Construction be XXXX. and nearing at completion, back expect for production full are
facility square will will the turned months, XX,XXX added the a past region. Eclipse us operating moving corner positioning to screen over allow for recently while also improvement in operational to to finishing Convergent. significant plant On And the accommodate growth better that which year. next few China in separate serve production. foot be We XX, Convergent's results existing our in with Slide the customers increased
in the nature. and EBITDA. now section, revenue Kyle's Convergent operating in history a recurring mix been you Gross As income saw has XXXX operating have and while the is positive margins of each losses, adjusted consistently has quarter improved predominantly graph in long
the as QX improved. installation a contain revenue why revenue of recurring while you to and nonrecurring more Looking and from trends, model. margins. XX% a decreased lower is QX, projects revenue at may percent towards and QX at QX ask recurring The margins more is revenue moving profitability business gross approximately while work revenue and QX revenue QX from
results financial strengthened significantly those transaction. QX Firefly better We're and on on following utilization Outdoors, Strong M&A generating selling in XX, Page now ads non-digital On the focused assets.
in sales running for approaching as at the previous $XX,XXX was we overall quarter the each Strong $X invested a allows We gross margin after additional profitability million over and four which breakeven positive gross negative lower margins SG&A Outdoor's coming structure, cost adjusted quarters. in also quarter EBITDA of started QX in and marketing was negative we current since for and business. fixed of first third the at the business. the have with scale increased better
Firefly, based available good and Strong. again their you Thank speaking My distributed we interest your with earnings is We're you. to a events release potentially As the forward we on the Thank we sheet Kyle always time you and in on contact included which today, Ballantyne look and could on have now liquidity information upside performance your and basis in longer-term also balance cost and an day. and your and welcome for the input. questions carried investment provide the mentioned, have in business. future in
concludes you. conference. Thank This today's
for participation. your Thank You may this lines at your time. disconnect you
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