CinemaStar Luxury Theaters reports results for 1996 second quarter and six months.SAN DIEGO--(BUSINESS WIRE)--Nov. 15, 1996--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) Friday reported results for the second quarter and six months ended Sept. 30, 1996, which, as expected, reflected higher revenues and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. due in part to lower summer attendance and to investments associated with the opening of 24 new screens in the current fiscal year. For the second quarter, the company reported a net loss of $263,128 for the period, equal to 4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net earnings of $58,096, or 1 cent per share, in the same period last year. Revenues rose 57 percent to $5,046,948 from $3,219,333 a year ago. For the six months of the current fiscal year, CinemaStar reported a net loss of $279,245, or 4 cents per share, compared with a net loss of $163,089, equal to a net loss of 3 cents per share, in the same period last year. Revenues advanced 58 percent to $9,307,351 from $5,898,834 in the same period last year. Commenting on the results, John Ellison Jr., president and chief executive officer, said: "Our results were restrained year-to-date by the planned development and promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade related to the opening of a 14-screen multiplex See multiplexing. theater in Riverside, Calif., and a 10-screen complex in Perris, Calif. "These openings are investments as part of CinemaStar's aggressive expansion plan to develop its unique product in high growth but under-served markets. We are, however, very encouraged by our substantial increase in revenues and the continuation of positive cash flow, which confirms our strategy of developing unique high-end theaters in niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. ." Ellison noted that overall box office performance during the second quarter was affected, like other exhibitors in the industry, by the Summer Olympics, the weak performance of certain films and the delayed opening Delayed opening Postponement of the start of trading in a stock until correction of a gross imbalance in buy and sell orders. Such an imbalance is likely to follow on the heels of a significant event such as a takeover offer. See: Suspended trading. of selected films by distributors until later in the season. "We expect improved box office returns during the upcoming Thanksgiving/Christmas holiday season when distributors traditionally release many of the highest profile films," he said. "We are committed to improving CinemaStar's bottom line, but also recognize the critical balance necessary to fuel future growth by investing in new facilities," he added. "Our cash flow is increasing and, with the opening of yet another Riverside area complex adjacent to the University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). Riverside campus this month, we now own and operate six multiplex theaters and have a total of 64 screens in operation. This compares with 30 at the end of last year and represents a 113 percent increase." During the quarter, the company announced that its Mexican subsidiary, CinemaStar Luxury Theaters S.A. de C.V., and the Fimbres Group have started construction on a 10-screen multiplex theater in Tijuana, Baja California Baja California, state, Mexico Baja California (Span.: bä`hä kälēfōr`nyä), state (1990 pop. 1,660,855), 27,628 sq mi (71,576 sq km), NW Mexico, on the Baja California peninsula. Mexicali is the capital. . The 2,000-seat theater complex will incorporate all the same luxury features and amenities as CinemaStar's 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, properties, including LucasFilm's 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 sound technology, digital sound, top quality projection systems, high back, extra wide seats, and expanded legroom leg·room n. Room in which to stretch the legs while seated. legroom Noun space to move one's legs comfortably, as in a car legroom n → between seat rows. "This will be the first theater in Mexico to be completely equipped with the LucasFilm THX sound system. The facility is scheduled to open in the spring, the same day we plan to open a similar 12-screen multiplex in Guadalajara, Mexico," Ellison said. "Going forward, we expect to generate additional revenues with the opening of the University of California Riverside multiplex. The university is giving us favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. leasing arrangements in exchange for the use of three of our auditoriums in the morning and afternoons as lecture halls lecture hall n → sala de conferencias; (UNIV) → aula lecture hall lecture n → amphithéâtre m ," he added. "We are exploring more of these creative alliances as we develop new geographic markets." CinemaStar Luxury Theaters, founded in 1989, now operates six first run movie theaters, with a total of 64 screens in Southern California. CinemaStar theaters feature high quality projection and sound capabilities, including LucasFilm THX sound environment system in most auditoriums, 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
Statement of Income
(unaudited)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Revenues:
Admissions $3,493,385 $2,293,693 $6,456,914 $4,176,216
Concessions 1,453,061 862,413 2,655,983 1,628,296
Other operating
revenues 100,502 63,227 194,454 94,322
Total revenues 5,046,948 3,219,333 9,307,351 5,898,834
Costs and expenses:
Film rental and
booking costs 1,963,790 1,259,818 3,567,519 2,317,486
Cost of concession
supplies 482,909 334,811 841,893 641,164
Theater operating
expenses 1,526,949 811,894 2,802,458 1,657,475
General and
administrative
expenses 863,710 526,574 1,528,350 1,048,035
Depreciation
and amortization 331,428 157,508 557,069 274,739
Total costs
and expenses 5,168,786 3,090,605 9,297,289 5,938,899
Operating income
(loss) (121,838) 128,728 10,062 (40,065)
Other income (expense):
Interest income 12,514 31,572 15,158 87,001
Interest expense (152,204) (102,204) (302,865) (205,725)
Total other income
(expense) (139,690) (70,632) (287,707) (118,724)
Income (loss) before
provision for
income taxes (261,528) 58,096 (277,645) (158,789)
Provision for income
taxes (1,600) 0 (1,600) (1,600)
Net income (loss) $ (263,128) $ 58,096 $ (279,245) $ (160,389)
Net income (loss)
per common share (0.04) 0.01 (0.04) (0.03)
Weighted average number
of common shares and
share equivalents
outstanding 6,441,512 6,200,000 6,348,514 6,200,000
CONTACT: CinemaStar Luxury Theaters Inc., San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. John Ellison Jr./Alan Grossberg, 619/630-2011 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 Craig Parsons/Michael Pollock, 310/207-9300 |
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