Strong/MDI Screen Systems Announces Exclusive Multi-Year Agreement with Cinemark Theatres
Ballantyne Strong's subsidiary, Strong/MDI Screen Systems, has signed a five-year exclusive supply agreement with Cinemark Theatres, a leading U.S. exhibitor. This partnership allows Strong/MDI to provide its full range of high-quality projection screens to Cinemark, enhancing the moviegoing experience across 534 theaters with nearly 6,000 screens. The agreement reflects a longstanding relationship between the two companies, emphasizing Strong/MDI's capability to deliver superior products that meet Cinemark's operational excellence standards.
- Five-year exclusive supply agreement with Cinemark Theatres enhances revenue potential.
- Strong/MDI's high-quality screens are set to improve Cinemark's customer experience.
- Potential risks associated with the ongoing COVID-19 pandemic affecting operations and revenue.
CHARLOTTE, N.C., Oct. 14, 2020 (GLOBE NEWSWIRE) -- Strong/MDI Screen Systems, Inc. (“Strong/MDI”), a wholly owned subsidiary of Ballantyne Strong, Inc. (NYSE American: BTN), and a leader in projection screens and optical coating development for cinemas, commercial venues and amusement parks worldwide, announced today the signing of a five-year exclusive worldwide supply agreement with Cinemark Theatres (NYSE: CNK), the third largest exhibitor in the United States.
Cinemark is a leader in the motion picture exhibition industry with 534 theatres and 5,977 screens across the U.S. and countries in Latin America. This multi-year agreement comprises Strong/MDI’s full line of screen products.
“Cinemark Theatres is well known for their operational excellence and focus on bringing consumers the best theatrical experience, and we’re honored to have been selected as their exclusive worldwide supplier,” said Ray Boegner, President of Strong Entertainment. “Strong/MDI provides the highest quality screens in the industry and we are excited to expand and elevate our 35-year relationship with the Cinemark team. Our premium screens and specialized coatings are engineered to enhance the superior entertainment experience that Cinemark Theatre patrons have come to expect.”
“We have worked closely with Strong/MDI for many years and rely on them to provide the highest-quality screens for our theatres,” said Damian Wardle, EVP of Global Technology and Presentation at Cinemark. “The Strong/MDI High-Performance perforation pattern enhances our laser projection performance to the highest standards. The quality and performance of the screens, coupled with the rapid delivery turnaround time, were instrumental in our decision to reach a long-term agreement.”
About Strong/MDI Screen Systems
Strong/MDI Screen Systems, a Ballantyne Strong, Inc. company, is a projection screen manufacturer located in Joliette, Canada. It manufactures 2D and 3D screens, specialty screens, motorized screen systems, custom structures and masking motors for clients worldwide. Strong/MDI Screen Systems is also known for the development of highly sophisticated coatings for projection surfaces.
About Ballantyne Strong, Inc.
Ballantyne Strong, Inc. (www.ballantynestrong.com) and its subsidiaries engage in diverse business activities including the design, integration and installation of technology solutions for a broad range of applications; development and delivery of out-of-home messaging, advertising and communications; manufacturing of projection screens; and providing managed services including monitoring of networked equipment. The Company focuses on serving the entertainment, retail and advertising markets.
About Cinemark Theatres
Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theatre companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates 534 theatres with 5,977 screens globally (332 theatres and 4,522 screens across 41 states domestically; 202 theatres and 1455 screens in 15 countries throughout South and Central America). Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD - the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://ir.cinemark.com/.
Forward-Looking Statements
This press release may include forward-looking statements, such as our expectations regarding future sales, the impact, length and severity of the COVID-19 pandemic, and the adequacy of the actions taken in response to the pandemic, which involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section contained in Item 1A in Ballantyne Strong, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019, Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 and the Company’s subsequent filings with the Securities and Exchange Commission, and the following risks and uncertainties: the negative impact that the COVID-19 pandemic has already had, and may continue to have, on the Company’s business and financial condition, the Company’s ability to maintain and expand its revenue streams to compensate for the lower demand for the Company’s digital cinema products and installation services, potential interruptions of supplier relationships or higher prices charged by suppliers, the Company’s ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments, the Company’s access to capital, the Company’s ability to successfully execute its capital allocation strategy, the Company’s ability to maintain its brand and reputation and retain or replace its significant customers, challenges associated with the Company’s long sales cycles, the impact of a challenging global economic environment or a downturn in the markets (such as the current economic disruption and recession and market volatility generated by the ongoing COVID-19 pandemic), economic and political risks of selling products in foreign countries (including tariffs), risks of non-compliance with U.S. and foreign laws and regulations, potential sales tax collections and claims for uncollected amounts, cybersecurity risks and risks of damage and interruptions of information technology systems, the Company’s ability to retain key members of management and successfully integrate new executives, the Company’s ability to complete acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or other transactions on acceptable terms or at all, the impact of the COVID-19 pandemic on the companies in which the Company holds investments, the Company’s ability to utilize or assert its intellectual property rights, the impact of natural disasters and other catastrophic events (such as the ongoing COVID-19 pandemic), the adequacy of insurance, the impact of having a controlling stockholder and vulnerability to fluctuation in the Company’s stock price. Given the risks and uncertainties, readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results which may not occur as anticipated. Many of the risks listed above have been, and may further be, exacerbated by the COVID-19 pandemic, its impact on the cinema and entertainment industry, and the worsening economic environment. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except where required by law, the Company assumes no obligation to update, withdraw or revise any forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.
Strong/MDI Contact
Francois Barrette
Vice President - General Manager, Strong/MDI Screen Systems
450-755-3795
info@strongmdi.com
Ballantyne Strong Contact
Mark Roberson
Ballantyne Strong, Inc.
Chief Executive Officer
704-994-8279
IR@btn-inc.com
Investor Relations Contact
John Nesbett/Jennifer Belodeau
IMS Investor Relations
203-972-9200
jnesbett@institutionalms.com
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