CinemaStar Luxury Theaters Reports Results for Fiscal 1998 Third Quarter and Nine Months.OCEANSIDE Oceanside. 1 City (1990 pop. 128,398), San Diego co., S Calif., on the Gulf of Santa Catalina; inc. 1888. It is a commercial and trading center for an inland farm area and for nearby Camp Pendleton, a huge U.S. marine corps amphibious base. , Calif.--(BUSINESS WIRE)--Feb. 19, 1998--CinemaStar Luxury Theaters, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :LUXY) today announced that revenues for the third quarter ended December December: see month. 31, 1997, increased 32 percent to $6.3 million from $4.8 million a year ago. The Company also reported a net loss of $4.0 million, or $0.36 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , compared with a net loss of $755,702, or $0.11 per share diluted, in the same period last year. For the nine months ended December 31, 1997, revenues advanced 34 percent to $18.9 million from $14.1 million a year ago. Net loss for the nine month period was $5.8 million, or $0.65 per share diluted, compared with a net loss of $3.1 million, or $0.47 per share diluted, for the corresponding period last year. The Company attributed the strong revenue growth to an increase in the number of theaters and screens in operation. The net loss for the third quarter included a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $1.8 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the early termination of a concession lease agreement with CinemaStar's primary concessions supplier. Also contributing to the net loss for the quarter were higher concession costs, increased interest expense, start-up Start-up The earliest stage of a new business venture. costs associated with new theater operations and general and administrative expenses related to expansion and an equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. transaction completed in the quarter. On December 15, 1997, CinemaStar Acquisition Partners, L.L.C., injected in·ject·ed adj. 1. Of or relating to a substance introduced into the body. 2. Of or relating to a blood vessel that is visibly distended with blood. injected 1. introduced by injection. 2. congested. $15.0 million cash into the Company in exchange for newly issued shares of common stock. Simultaneously, the board of directors was reconstituted and Jack R. 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. was elected chairman of the board. Crosby stated: "The equity injection provides CinemaStar with a strong foundation for growth and expansion. The termination of the concessions lease is the first step in achieving improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and financial performance. Our goal is to generate strong financial performance by expanding and improving our theater operations in order to provide our customers with an exceptional movie viewing experience." Founded in 1989, CinemaStar Luxury Theaters currently operates 79 screens in eight first-run movie theaters, including seven 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, with a total of 69 screens and the recently opened 10 screen theater complex in Tijuana, Mexico. 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. 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 plan, 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. -0-
CINEMASTAR LUXURY THEATERS, INC. AND SUBSIDIARIES
Condensed Consolidated Statement Of Operations
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1997 1996 1997 1996
Revenues:
Admissions $4,512,741 $3,272,867 $13,104,417 $9,729,781
Concessions 1,668,318 1,404,929 5,457,313 4,060,912
Other operating revenues 121,471 107,767 379,487 302,221
Total revenues 6,302,530 4,785,563 18,941,217 14,092,914
Costs and expenses:
Film rental and
booking costs 2,495,583 1,916,322 7,432,200 5,483,841
Cost of concession
supplies 639,889 428,390 1,975,661 1,270,283
Theater operating
expenses 2,887,241 1,896,180 7,850,350 5,004,474
Termination fee -
concession lease
agreement 1,859,352 --- 1,859,352 ---
General & administrative
expense 1,395,909 599,681 3,182,021 1,822,195
Depreciation
& amortization 473,750 535,336 1,460,105 1,092,405
Total costs and expenses 9,751,724 5,375,909 23,759,689 14,673,198
Operating income (loss) (3,449,194) (580,346) (4,818,472) (580,284)
Other income (expense):
Interest income 14,098 1,936 23,580 17,094
Interest expense (324,803) (166,492) (693,451) (469,357)
Non-cash interest expense (221,750) --- (328,750)(2,048,997)
Total other expense (532,455) (164,556) (998,621)(2,501,260)
Loss before provision for
income taxes (3,981,649) (754,902) (5,817,093)(3,081,544)
Provision for income
taxes --- (800) (1,600) (2,400)
Net loss $ (3,981,649) $(755,702)$(5,818,693)$(3,083,944)
Basic and diluted
net loss per share $ (0.36) $(0.11) $(0.65) $(0.47)
Shares used in
calculation 11,094,741 6.860,986 8,962,687 6,520,851
CINEMASTAR LUXURY THEATERS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
(Unaudited)
December 31,
ASSETS 1997
Current assets
Cash $ 4,697,608
Commissions and other receivables 102,147
Prepaid expenses 202,298
Other current assets 126,169
Total current assets 5,128,222
Property and equipment, net 13,747,840
Deposits and other assets 400,542
Total Assets $19,276,604
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt and
capital lease obligations $ 481,285
Accounts payable 1,907,526
Accrued expenses 979,839
Deferred revenue 256,764
Advances from stockholders 93,006
Total current liabilities 3,718,420
Long-term debt and capital lease obligations,
net of current portion 1,930,903
Deferred rent liability 2,922,326
Total liabilities 8,571,649
Stockholders' equity
Common stock, no par value; 60,000,000
shares authorized; 25,703,648 shares
issued and outstanding 22,926,545
Additional paid-in capital 3,328,376
Accumulated deficit (15,549,966)
Total stockholders' equity 10,704,955
Total Liabilities and Stockholders' Equity $ 19,276,604
CONTACT: CinemaStar Luxury Theaters Norman Dowling, 760/630-2011 or Pondel Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. & Wilkinson Michael Pollock Admiral of the Fleet Sir Michael Patrick Pollock, GCB, LVO, DSC (19 October 1916 – 27 September 2006) was a British officer in the Royal Navy who rose to become First Sea Lord from 1971 to 1974. , 310/207-9300 |
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