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CINEPLEX ODEON ANNOUNCES SIGNIFICANT CASH FLOW IMPROVEMENT AND PROFITS FOR SECOND QUARTER

 TORONTO, July 29 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX) announced today significant year-over-year financial improvements for the second quarter of 1993, including continued growth in cash flow and its first quarterly net profit in four years.
 "We believe that our second quarter results demonstrate that we are moving forward steadily and more quickly than many were predicting just a short time ago," says Cineplex Odeon President and CEO Allen Karp. "These results support our view that 1992 was a turning point for the corporation. The early success of the summer film releases, including "Jurassic Park," "Cliffhanger" and "Sleepless in Seattle;" continuing targeted cost reductions; and our new food marketing initiatives have all contributed to the first positive bottom line in 16 quarters."
 For the six months ended June 30, 1993, cash flow from operations improved to a net inflow of $18,384,000(A), compared to a $3,640,000 net outflow recorded in the corresponding period last year. Excluding the impact of the net change in non-cash working capital, the cash flow from operations amounted to a net inflow of $11,606,000 as compared to a net inflow of $241,000 for the first six months of 1992, an $11,365,000 improvement.
 Continuing success in cost reduction is further reflected in general and administrative expenses, which decreased by 15.1 percent in the second quarter of 1993 compared to the second quarter of 1992 and by 12.8 percent during the first six months of 1993 compared to the same period last year, and in interest expense which decreased by 17.5 percent in the first six months of 1993 compared to the same period last year.
 Other improvements reflected in Cineplex Odeon's second quarter 1993 include: net income of $678,000 on revenues of $133,313,000 compared to a second quarter 1992 net loss of $7,596,000 on revenues of $130,981,000; and earnings per share on both basic and fully diluted bases of $0.01 as compared to a loss per share of $0.09 for the second quarter 1992. Comparing the first six months of 1993 to the same period in 1992, Cineplex Odeon recorded a net loss of $10,163,000 compared to a net loss of $21,466,000, and a loss per share of $0.10 compared to a loss per share of $0.26.
 "Since the second quarter includes only a few weeks of summer revenues, these results are a cause for enthusiasm," says Mr. Karp. "We are hopeful that we will see record box office from this summer's feature film line-up."
 Cineplex Odeon Corporation is an integrated entertainment company engaged in operating motion picture cinemas in six Canadian provinces, 14 U.S. states and the District of Columbia, and distributing commercial and specialty films in Canada. With headquarters in Toronto, Cineplex Odeon is one of North America's largest theater circuits with 1,614 screens in 362 locations, primarily in major markets. The corporation's shares are traded on the New York Stock Exchange and the Toronto Stock Exchange.
 (A) All dollar amounts are in U.S. dollars
 CINEPLEX ODEON CORPORATION
 Condensed Consolidated Income Statement
 (In thousands of U.S. dollars except per share figures - Unaudited)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 REVENUE 133,313 130,981 249,962 260,105
 EXPENSES 124,507 129,733 243,357 262,582
 Income (loss)
 from operations
 before the
 undernoted 8,806 1,248 6,605 (2,477)
 Other income
 (expenses) (568) 109 (1,085) (210)
 Interest on
 long-term debt 7,259 8,656 14,922 18,098
 Income taxes 301 297 761 681
 NET INCOME (LOSS) 678 (7,596) (10,163) (21,466)
 Earnings (loss)
 per share
 Basic $0.01 ($0.09) ($0.10) ($0.26)
 Fully Diluted $0.01 ($0.09) ($0.10) ($0.26)
 CINEPLEX ODEON CORPORATION
 Condensed Consolidated Statement Of Changes In Cash Resources
 (In thousands of U.S. dollars - Unaudited)
 Six months ended June 30 1993 1992
 CASH PROVIDED BY (USED FOR)
 OPERATING ACTIVITIES
 Net loss (10,163) (21,466)
 Depreciation and amortization 22,039 21,498
 Other non-cash items (270) 209
 Total 11,606 241
 Net change in
 non-cash working capital 6,778 (3,881)
 Total 18,384 (3,640)
 FINANCING ACTIVITIES (7,540) 9,701
 INVESTMENT ACTIVITIES (3,654) (5,968)
 NET INCREASE DURING PERIOD 7,190 93
 CASH AT BEGINNING OF PERIOD 1,350 1,088
 CASH AT END OF PERIOD 8,540 1,181
 -0- 7/29/93
 /CONTACT: Howard Lichtman, executive vice president, marketing & communications of Cineplex Odeon Corporation, 416-323-6634/
 (CPX)


CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU: ERN

SM -- NY075 -- 7262 07/29/93 13:45 EDT
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Date:Jul 29, 1993
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