Ballantyne Strong, Inc (BTN) saw its loss narrow to $0.47 million, or $0.03 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.20 million, or $0.23 a share. Revenue during the quarter dropped 5.46 percent to $18.67 million from $19.75 million in the previous year period. Gross margin for the quarter expanded 430 basis points over the previous year period to 23.45 percent. Operating margin for the quarter period stood at positive 1.38 percent as compared to a negative 5 percent for the previous year period.
Operating income for the quarter was $0.26 million, compared with an operating loss of $0.99 million in the previous year period.
Kyle Cerminara, chairman and chief executive officer of Ballantyne Strong, Inc. commented, “I am pleased with our progress during the third quarter of 2016. While the third quarter of 2016 was negatively impacted by a few items, the timing of which disproportionally impacted this quarter, we continue to make a great deal of progress with the turnaround of the company and we are excited about the revenue and earnings prospects as we move into 2017. Our team continues to focus now on building from the foundation we’ve laid out in the last year, and though this work takes time, we are confident in the long-term shareholder value we are creating. We have made thoughtful investments that we believe have significant potential over the long term. In the past several quarters, we’ve begun reinvesting in areas that have potential to deliver high returns. Some of the most important investments we’ve made have been in our sales force, digital media software, new businesses, R&D and in our corporate infrastructure. Though these investments will impact our earnings in the short term, our expectation is that they deliver high returns for us in the long term. I’m very excited about the potential impact of these investments over the coming quarters and years.”
Operating cash flow turns negative
Ballantyne Strong, Inc has spent $2.15 million cash to meet operating activities during the nine month period as against cash inflow of $4.59 million in the last year period. The company has spent $5 million cash to meet investing activities during the nine month period as against cash outgo of $1.01 million in the last year period.
Cash and cash equivalents stood at $13.83 million as on Sep. 30, 2016, down 37.05 percent or $8.14 million from $21.98 million on Sep. 30, 2015.
Working capital drops significantly
Ballantyne Strong, Inc has witnessed a decline in the working capital over the last year. It stood at $24.99 million as at Sep. 30, 2016, down 30.58 percent or $11.01 million from $35.99 million on Sep. 30, 2015. Current ratio was at 2.86 as on Sep. 30, 2016, down from 3.03 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 52 days for the quarter from 89 days for the last year period. Days sales outstanding went up to 65 days for the quarter compared with 63 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 67 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 42 for the same period last year.
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