CinemaStar Announces Fiscal Third Quarter 2000 Results.Business Editors SAN DIEGO--(BUSINESS WIRE)--Feb. 23, 2000 CinemaStar Luxury Theaters Inc. (Nasdaq:LUXY) today announced results of operations for its fiscal 2000 third quarter ended Dec. 31, 1999. For its fiscal third quarter ended Dec. 31, 1999, CinemaStar Luxury Theaters ("the company") reported total revenues of $6.5 million, compared to $6.8 million for the same period in the prior year. The company also reported a net loss of $1.2 million, or ($0.30) per common share, compared to a net loss of $0.6 million, or ($0.17) per common share, for the same period in the prior year. Theater cash flow, a common measure of performance for motion picture theaters, totaled $353,000, or 5.4% of total revenues, compared to $933,000, or 13.7% of total revenues, for the same period in the prior year. For the nine months ended Dec. 31, 1999, the company reported total revenues of $22.0 million compared to $22.2 million for the nine month period ended Dec. 31, 1998. The company's net loss for the most recent nine month period was $1.6 million or ($0.42) per common share, compared to a net loss of $0.9 million or ($0.24) per common share for the same period in the prior year. Theater cash flow for the nine months ended Dec. 31, 1999 was $2.8 million or 12.9% of total revenues, compared to theater cash flow of $3.4 million or 15.2% of total revenues for the same period in the prior year. Jack Crosby Crosby, town (1991 pop. 54,116), Sefton metropolitan district, NW England, on Liverpool Bay. Formed in 1937 from the urban districts of Great Crosby and Waterloo-with-Seaforth, Crosby is primarily residential. The town's history dates back more than 1,000 years. , chief executive officer of CinemaStar, said "The opening of the 20 screen theater in San Bernardino San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. this past December December: see month. was an important milestone in the Company's strategy of transitioning to an operator of megaplex theaters. The Company is also on schedule to complete a four screen addition to its existing 14 screen complex at the Mission Grove location in Riverside, CA. The expansion is expected to be completed in the Spring of 2000. The four screen addition will raise CinemaStar's total screen count to 103 screens, and will give CinemaStar a screen-per-theater ratio in excess of 11 screens-per-theater, which is comparable to the larger, national theater chains." The Board of Directors appointed Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. H. Harnois, Jr. to the office of vice president and chief financial officer of the company, filling the vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. created by the resignation of Norman Norman, city (1990 pop. 80,071), seat of Cleveland co., central Okla.; inc. 1891. It is the center of a livestock region. Oil wells, food processing, and printing and publishing contribute to the economy, and there is diverse manufacturing (machinery, communication Dowling Dowling is a surname, and may refer to
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. resigned from those capacities in order to pursue other business opportunities. Moreno will continue to provide consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to the company on an ad hoc For this purpose. Meaning "to this" in Latin, it refers to dealing with special situations as they occur rather than functions that are repeated on a regular basis. See ad hoc query and ad hoc mode. basis. CinemaStar owns and operates eight first run motion picture theaters in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, (89 screens) and one theater in Tijuana, Mexico (10 screens), for a total of nine theaters (99 screens). CinemaStar theaters feature high-quality projection and sound capabilities, including LucasFilm THX A design system that provides realistic sound playback for movie and home theater from THX, Ltd., San Rafael, CA (www.thx.com), an independent spin-off from Lucasfilm, Ltd. The THX Sound System was developed during the production of the Return of the Jedi in 1982 and named after George Stereo Surround Sound An audio recording and playback system that uses five or more channels plus a subwoofer channel. See 5.1 channel and 3D audio. environment systems, along with luxury amenities such as high-back reclining seats and extra-wide aisles between seat rows. Further information may be obtained from the company's Web site: www.cinemastar.com.
CINEMASTAR LUXURY THEATERS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months ended Nine Months ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
REVENUES:
Admissions $ 4,449,305 $ 4,663,484 $ 15,183,498 $ 15,252,824
Concessions 1,915,960 1,955,625 6,322,259 6,408,881
Other operating
revenues 166,705 168,000 506,902 503,181
TOTAL REVENUES 6,531,970 6,787,109 22,012,659 22,164,886
COSTS AND EXPENSES:
Film rental and
booking costs 2,421,817 2,474,677 8,365,097 8,153,080
Cost of concession
supplies 338,221 328,958 1,159,409 1,382,174
Theater operating
expenses 3,419,401 3,050,919 9,638,183 9,260,200
Selling, general
and administrative
expenses 798,790 897,366 2,368,314 2,382,818
Depreciation and
amortization 603,303 613,969 1,800,188 1,727,724
TOTAL COSTS AND
EXPENSES 7,581,531 7,365,889 23,331,191 22,905,996
OPERATING LOSS (1,049,562) (578,780) (1,318,532) (741,110)
OTHER INCOME
(EXPENSE):
Interest expense (135,076) (91,442) (344,018) (246,574)
Interest income 13,562 30,292 53,821 108,712
TOTAL OTHER
EXPENSE (121,515) (61,150) (290,197) (137,862)
LOSS BEFORE PROVISION
FOR INCOME
TAXES (1,171,076) (639,930) (1,608,729) (878,972)
PROVISION FOR INCOME
TAXES -- -- -- (1,600)
NET LOSS (1,171,076) (639,930) $(1,608,729) $(880,572)
BASIC AND DILUTED NET
LOSS PER SHARE $(0.30) $(0.17) $(0.42) $(0.24)
WEIGHTED AVERAGE
SHARES 3,864,986 3,864,986 3,864,986 3,737,725
CINEMASTAR LUXURY THEATERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
Dec. 31,
1999
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,714,771
Prepaid expenses 281,275
Other current assets 301,926
TOTAL CURRENT ASSETS 2,297,972
Property and equipment, net 14,190,711
Deposits and other assets 824,378
TOTAL ASSETS $17,313,061
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and
capital lease obligations $3,100,763
Accounts payable 1,253,894
Accrued liabilities 979,154
Deferred revenue 540,109
TOTAL CURRENT LIABILITIES 5,873,920
Long-term debt and capital lease obligations,
net of current portion 1,698,087
Deferred rent liability 4,344,617
TOTAL LIABILITIES 11,916,624
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value;
authorized shares 20,000,000;
issued and outstanding shares
3,864,986 38,650
Additional paid-in capital 26,216,172
Accumulated deficit (20,858,385)
TOTAL STOCKHOLDERS' EQUITY 5,396,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $17,313,061
Notes to Accompany Financial Data: As of Dec. 31, 1999 the company was not in compliance with certain of the covenants contained in its Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility, and as a result, the company is not currently able to borrow against the facility. Management is in discussions with the lender in order to obtain a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. and to modify the agreement. A definitive agreement to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such the Dec. 31, 1999 covenant violations, and to modify the Revolving Credit Facility has not been reached as of this date. Although management expects an agreement will be reached and the lender has not attempted to accelerate the due date of any payment obligation of the Company under the Revolving Credit Facility, the outstanding borrowings against the facility of $3,000,000 as of Dec. 31, 1999 have been classified as a current liability in the accompanying consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. . Management is also in negotiations with its principal shareholder to obtain an equity infusion of $3.5 million, most likely from the sale of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The proceeds from this equity transaction will be used to reactivate re·ac·ti·vate v. 1. To make active again. 2. To restore the ability to function or the effectiveness of. re·ac the company's Revolving Credit Facility, to fund theater development, and to meet seasonal working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . No assurance can be given that the negotiations with the company's lender and principal shareholder will be successful. The information contained in this press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risk and uncertainties, such as the statements of the company's plans, objectives, expectations and intentions. The company's actual results could differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's Form 10-KSB and Form 10-QSB on file with the SEC. |
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