Monday April 6, 6:31 am Eastern Time
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Ballantyne of Omaha Purchases Nation's Leading Film Platter Supplier
Accretive Acquisition Vertically Integrates Projection System Product
OMAHA, Neb. and FISHER, Ill.--April 6, 1998-- Ballantyne of Omaha, Inc. (NYSE: BTN - news), a leading manufacturer of motion picture projection and entertainment lighting equipment, today announced it has acquired Design and Manufacturing, Ltd., a Fisher, Illinois-based supplier of film platter systems to the motion picture exhibition industry. While terms of the cash and stock transaction were not disclosed, the acquisition will add approximately $1.2 million of EBITDA (earnings before interest, taxes, depreciation and amortization) to the remaining nine months of Ballantyne's 1998 results, and will be immediately accretive to earnings.
Founded in 1976, Design and Manufacturing has captured close to 60% of the platter system market, with an estimated 16,000 units in operation at movie theaters throughout the world. Each platter system consists of a film platter and make-up table, which together allow a projector to operate continuously for up to 4 1/2 hours by feeding and collecting film. Last year, the Company generated approximately $9.1 million in revenues selling 2,759 platters and 959 make-up tables. Approximately 85% of Design and Manufacturing's revenues are derived from platter system sales, while 15% are derived from specialty component manufacturing the Company conducts for industrial customers in the Midwest. Ballantyne of Omaha is the Company's largest customer.
Jack E. Spitz, 54, Design and Manufacturing's co-founder and President, has signed a five-year employment contract with Ballantyne, and will continue to oversee day-to-day operations at its 35,000 square foot, state-of-the-art machine shop facility in Fisher, Illinois.
Commenting on the acquisition, Ballantyne President and Chief Executive Officer John P. Wilmers stated, ''Today's acquisition is a strategic move designed to enhance Ballantyne's manufacturing efficiency and profitability of its theater equipment business. By bringing Design and Manufacturing into the Ballantyne of Omaha fold, we can further reduce costs from the projection system assembly process and enhance overall efficiency by using excess plant capacity to bring previously out-sourced manufacturing functions in-house.
''Design and Manufacturing allows us to improve our competitive position while enhancing shareholder value. The Company's products are well known and valued by our customers, and its employees share our commitment to quality manufacturing backed by superior customer service.''
Ballantyne of Omaha is the leading U.S. supplier of commercial motion picture projection equipment utilized by the major theater chains including AMC, Loews Cineplex and Regal Cinemas, and specialty projection equipment used by location-based entertainment providers such as The Walt Disney Co. [NYSE:DIS - news], Universal Studios and IMAX. Ballantyne of Omaha also manufactures, rents and leases specialty entertainment lighting products used at top arenas, television and motion picture production studios, theme parks and architectural sites around the world.
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, 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 expectations.
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Contact:
Brad French
Chief Financial Officer
Ballantyne of Omaha, Inc.
402/453-4444
OR
Stewart Lewack, Joseph Jaffoni
Jaffoni & Collins Incorporated
212/835-8500; E-Mail: mailto:jaffoni@jcir.com |
