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CINEPLEX ODEON ANNOUNCES 1991 YEAR END RESULTS

 CINEPLEX ODEON ANNOUNCES 1991 YEAR END RESULTS
 TORONTO, March 19 /PRNewswire/ - Cineplex Odeon Corporation


(NYSE,TSE: CPX) today announced its financial results for the year ended Dec. 31, 1991. All currency amounts are in U.S. dollars. Net loss from continuing operations was $63,884,000 on revenues of $538,288,000. Net loss from continuing operations for the corresponding period in 1990 was $143,667,000 on revenues of $614,804,000. The decline in net loss from continuing operations was on a revenue base 12.4 per cent below 1990. The lower revenue experienced by the corporation was primarily due to a general industry downturn during most of 1991 which resulted primarily from weaker film product and in part from the impact of the North American-wide recession.
 Cash flow from continuing operations improved to a net outflow of $4,045,000 in 1991 from a net outflow of $58,547,000 in 1990. Operational improvements such as the improved gross margin percentage from theater operations and reduced general and administrative expenses, combined with lower interest expense, mitigated the effects of the reduced box office in 1991.
 After adjusting for the results of discontinued operations, the net loss for the 1991 year ended was $77,212,000 compared to a net loss of $135,934,000 for the corresponding period in 1990.
 Loss per share from continuing operations for the 1991 year ended was $1.14 as compared to $3.01 per share for the prior period. After adjusting for the results of discontinued operations, loss per share for the year ended Dec. 31, 1991 was $1.38 compared to $2.85 for the 1990 year end.
 General and administrative expenses decreased by 18.4 per cent to $20,114,000 during 1991 when compared to 1990. The decrease reflects the impact of the continuation of the cost-reduction program. This program included a reorganization of the corporation's management structure as well as a reduction in personnel. This reduction follows a 28.2 per cent decline in 1990 and reflects a total decrease of 41.4 per cent, or approximately $14,000,000, in the past two years.
 Interest on long-term debt and bank indebtedness decreased by 12.6 per cent during 1991 when compared to 1990 due primarily to the reduced effective interest rate levels and the reduction of the long-term debt. The corporation currently has approximately 80 per cent of its bank debt subject to floating interest rates and expects that, with the lower debt levels and reduced interest rates, future interest expense will be lower than prior years. This reduction in long-term debt with the corresponding increase in equity strengthened the corporation's balance sheet. The long-term debt to equity ratio went from 3.12 at Dec. 31, 1990 to 1.92 at Dec. 31, 1991.
 During 1991 the finalization of many of the restructuring issues enabled management to begin to take an increasingly active role in the daily operations of the corporation. Restructuring included the finalization of amended banking agreements, settlement of the class action lawsuit, the settlement of the New Visions arbitration and the completion of a public offering of rights.
 Allen Karp, president and chief executive officer of Cineplex Odeon Corporation, said: "Even though the box office results were disappointing, the corporation's results showed a marked improvement over the prior year as a result of achieving a number of strategic goals. These goals included the improvement of gross margin percentage from theater operations, the continued reduction of costs, the completion of the public offering of rights and its resulting reduction in long-term debt and the resolution of a number of outstanding legal issues. This improvement is reflected in both improved cash flow and reduced loss from continuing operations for 1991, during a time that the industry suffered a slump, which now appears to be behind us. The outlook of the corporation continues to improve as we anticipate our reduced cost base to remain as theater attendance increases with stronger film product, coupled with an increased product flow arising out of improving relationships with the studios."
 CINEPLEX ODEON CORPORATION
 CONSOLIDATED BALANCE SHEET
 (in thousands of U.S. dollars)
 Dec. 31, Dec. 31,
 ASSETS 1991 1990
 CURRENT ASSETS
 Cash $ 1,088 $ 1,469
 Accounts receivable 21,511 37,400
 Advances to distributors and producers 7,496 14,397
 Distribution costs 2,232 3,901
 Inventories 5,317 5,643
 Prepaid expenses and deposits 2,427 2,338
 Subtotal 40,071 65,148
 PROPERTY, EQUIPMENT AND LEASEHOLDS 710,657 743,869
 OTHER ASSETS
 Long-term investments and receivables 6,650 4,673
 Goodwill 41,733 42,927
 Deferred charges 5,962 1,165
 Subtotal 54,345 48,765
 TOTAL ASSETS $ 805,073 $ 857,782
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Bank indebtedness $ -- $ 27,009
 Accounts payable and accruals 89,719 95,507
 Deferred income 14,450 18,335
 Income taxes payable 2,344 4,114
 Current portion of long-term debt and
 other obligations 62,382 4,569
 Subtotal 168,895 149,534
 LONG-TERM DEBT 410,182 524,225
 CAPITALIZED LEASE OBLIGATIONS 9,646 11,804
 PENSION OBLIGATIONS 2,602 3,982
 SHAREHOLDERS' EQUITY
 Capital stock 408,466 285,116
 Translation adjustment 19,209 19,836
 Retained earnings (deficit) (213,927) (136,715)
 Subtotal 213,748 168,237
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 805,073 $ 857,782
 CINEPLEX ODEON CORPORATION
 CONSOLIDATED INCOME STATEMENT
 (in thousands of U.S. dollars except per share figures)
 Year ended Year ended Year ended
 Dec. 31, 1991 Dec. 31, 1990 Dec. 31,1989
 REVENUE
 Admissions $ 386,218 $ 438,982 $403,040
 Concessions 124,023 134,318 128,288
 Distribution
 and other 28,047 41,504 50,596
 Proceeds from sale
 of certain theater
 properties -- -- 8,602
 Total 538,288 614,804 590,526
 EXPENSES
 Theatre operations,
 distribution and
 other expenses 462,845 527,633 527,234
 Cost of concessions 18,870 24,794 24,241
 Cost of theatre
 properties sold -- -- 8,369
 General and
 administrative 20,114 24,638 34,303
 Depreciation and
 amortization 43,296 53,554 51,211
 Loss (gain)
 on investments -- (139) 7,394
 Total 545,125 630,480 652,752
 Loss from continuing
 operations
 before the
 undernoted (6,837) (15,676) (62,226)
 Other income
 (expenses) (5,290) (65,407) 41,050
 Loss from continuing
 operations before
 interest on long-term
 debt and bank
 indebtedness, income
 taxes and minority
 interest (12,127) (81,083) (21,176)
 Interest on long-term
 debt and bank
 indebtedness 52,944 60,597 52,767
 Loss from continuing
 operations before income
 taxes and minority
 interest (45,071) (141,680) (73,943)
 Income taxes
 (recoveries) (1,187) 2,029 5,561
 Loss from continuing
 operations before
 minority interest (63,884) (143,709) (79,504)
 Minority interest -- (42) (45)
 Loss from continuing
 operations (63,884) (143,667) (79,459)
 Discontinued operations
 Income (loss) from
 operations (4,028) (11,380) 622
 Gain (loss) on
 disposal (9,300) 19,113 --
 NET LOSS $ (77,212) $ (135,934) $(78,637)
 BASIC
 Weighted average
 shares
 outstanding 56,132,000 47,691,000 7,645,000
 Loss per share
 from continuing
 operations ($1.14) ($3.01) ($1.67)
 Loss per share ($1.38) ($2.85) ($1.65)
 FULLY DILUTED
 Weighted average
 shares
 outstanding 59,387,000 50,352,000 50,869,000
 Loss per share
 from continuing
 operations ($1.14) ($3.01) ($1.67)
 Loss per share ($1.38) ($2.85) ($1.65)
 CINEPLEX ODEON CORPORATION
 CONSOLIDATED STATEMENT OF CHANGES IN CASH RESOURCES
 (in thousands of U.S. dollars)
 Year ended Year ended Year ended
 Dec. 31, Dec. 31, Dec. 31,
 1991 1990 1989
 CASH PROVIDED BY(USED FOR)
 OPERATING ACTIVITIES
 Loss from continuing
 operations $ (63,884) $ (143,667) $(79,459)
 Depreciation and
 amortization 43,296 53,554 51,211
 Income taxes not requiring
 cash -- (9,272) (1,164)
 Other non-cash items 8,993 53,603 (49,049)
 Net change in non cash
 working capital 7,550 (12,765) 40,038
 Total (4,045) (58,547) (38,423)
 Cash flow from discontinued
 operations (4,028) (2,132) 12,781
 Total (80,873) (60,679) (25,642)
 FINANCING ACTIVITIES
 Decrease in long-term
 debt and other obligations (115,987) (65,379) (85,937)
 Increase in long-term debt 50,377 5,000 --
 Issue of share capital 117,750 -- 1,377
 Change in translation
 adjustment (2,027) (508) 2,991
 Other (8,761) -- (6,939)
 Total 41,352 (60,887) 88,508
 INVESTMENT ACTIVITIES
 Proceeds on sale of
 certain theatre
 properties 10,721 89,546 8,602
 Proceeds on sale of Film
 House (net of cash
 in disposed entity) -- 38,108 73,500
 Proceeds on sale of
 investment in
 Universal Studios
 Florida joint venture -- -- 148,277
 Proceeds on sale of residual
 interest in Universal
 Studios Florida
 joint venture -- 15,000 --
 Proceeds on sale of U.K.
 theaters (net of cash in
 disposed entity) -- 4,005 --
 Proceeds on sale of
 investment in MCA INC. -- -- 8,811
 Proceeds on sale of Live
 Entertainment division -- -- 56,609
 Additions to property,
 equipment and leaseholds (18,683) (68,453) (133,518)
 Investment in Universal
 Studios Florida joint
 venture -- -- (4,434)
 Other 1,311 (6,213) 1,251
 Total (6,651) 72,793 159,098
 NET INCREASE (DECREASE)
 DURING YEAR 26,628 (48,773) 44,948
 BALANCE AT BEGINNING
 OF YEAR (25,540) 23,233 (21,715)
 BALANCE AT END OF YEAR $ 1,088 $ (25,540) $ 23,233
 CHANGE IN NON-CASH
 WORKING CAPITAL
 Current Assets
 Accounts receivable $ 15,935 $ 12,313 $ 16,780
 Advances to distributors
 and producers 6,934 2,297 9,530
 Distribution costs 1,683 2,785 4,034
 Inventories 330 533 (491)
 Prepaid expenses and
 deposits (86) 1,103 61
 Current Liabilities
 Accounts payable and
 accruals (11,141) (32,586) 7,228
 Deferred income (4,331) 2,147 3,046
 Income taxes payable (1,774) (1,357) (150)
 Total 7,550 (12,765) 40,038
 For the purposes of this statement, cash is defined as cash less
 bank indebtedness.
 CINEPLEX ODEON CORPORATION
 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
 (in thousands of U.S. dollars, except for number of shares)
 Common Shares Subordinate
 Restricted
 Voting Shares Retained
 Earnings
 Shares Amount Shares Amount (Deficit)
 BALANCE AT
 DECEMBER 31
 1988 23,927,301 $102,323 23,611,794 $181,416 $77,856
 Exercise
 of options 152,000 1,377 -- -- --
 Net Loss -- -- -- -- (78,637)
 Translation
 Adjustment
 BALANCE AT
 DECEMBER 31,
 1989 24,079,301 103,700 23,611,794 181,416 (781)
 Net Loss -- -- -- -- (135,934)
 Translation
 adjustment
 BALANCE AT
 DECEMBER 31,
 1990 24,079,301 103,700 23,611,794 181,416 (136,715)
 Exercise
 of options 3,125 15
 Net Loss -- -- -- -- (77,212)
 Translation
 adjustment
 Issue of
 shares on
 settlement
 of claims 1,600,000 5,600 -- -- --
 Issue of
 shares 17,201,732 58,706 16,865,567 59,029
 BALANCE AT
 DECEMBER 31,
 1991 42,884,158 $168,021 40,477,361 $240,445 ($213,927)
 CINEPLEX ODEON CORPORATION
 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
 (in thousands of U.S. dollars, except for number of shares)
 Transmission Total
 Adjustment Shareholders'
 Equity
 BALANCE AT
 DECEMBER 31,
 1988 $ 13,348 $374,943
 Exercise
 of options 1,377
 Net Loss -- (78,637)
 Translation
 Adjustment 2,991 2,991
 BALANCE AT
 DECEMBER 31,
 1989 16,339 300,674
 Net Loss (135,934)
 Translation
 adjustment 3,497 3,497
 BALANCE AT
 DECEMBER 31,
 1990 19,836 168,237
 Exercise
 of options 15
 Net Loss -- (77,212)
 Translation
 adjustment (627) (627)
 Issue of
 shares on
 settlement
 of claims -- 5,600
 Issue of
 shares -- 117,735
 BALANCE AT
 DECEMBER 31,
 1991 $ 19,209 $213,748
 -0- 3/19/92
 /CONTACT: Howard Lichtman, executive vice-president for marketing and communications of Cineplex Odeon, 416-323-6634/
 (CPX.) CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU: ERN


TQ -- NY079 -- 9870 03/19/92 17:16 EST
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