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CINEPLEX ODEON ANNOUNCES 1991 THIRD QUARTER RESULTS

       CINEPLEX ODEON ANNOUNCES 1991 THIRD QUARTER RESULTS
    TORONTO, Nov. 7 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX) today announced its financial results for both the nine month and the third quarter periods ended Sept. 30, 1991.  All currency amounts are in U.S. dollars.
    For the nine months ended Sept. 30, 1991, net loss from continuing operations was $40,520,000 on revenues of $417,228,000.  Net loss from continuing operations for the corresponding period in 1990 was $75,061,000 on revenues of $455,044,000.  The $34,541,000 improvement in net loss from continuing operations, which reflects the impact of management's cost reduction and restructuring program, was achieved on a revenue base which was $37,816,000 (8.3 percent) below 1990.  The lower revenue experienced by the corporation was indicative of the industry in general and arose due to weaker film product.
    After adjusting for the results of discontinued operations, the net loss for the first nine months of 1991 was $53,848,000 compared to a net loss of $57,987,000 for the same period in the previous year.
    The third quarter 1991 net loss from continuing operations was $15,010,000 on revenues of $136,580,000 compared to a third quarter 1990 net loss from continuing operations of $6,173,000 on revenues of $164,799,000.  Included in the net loss from continuing operations in the third quarter of 1990 was income of $9,989,000 relating primarily to asset sales.  After adjusting for the results of discontinued operations, the net loss for the third quarter of 1990 was $7,591,000. There was no impact from discontinued operations in the third quarter of 1991.
    Loss per share from continuing operations for the current nine month period was $0.85 as compared to $1.57 per share in the corresponding period in 1990.  After adjusting for the results of discontinued operations, loss per share for the nine months ended Sept. 30, 1991, was $1.13 compared to $1.22 for the first nine months of 1990.  Loss per share from continuing operations for the third quarter of 1991 was $0.31 as compared to $0.13 per share in the corresponding period in 1990.
    After adjusting for the results of discontinued operations, loss per share for the third quarter of 1991 was $0.31 compared to $0.16 for the third quarter of 1990.  Cash flow from continuing operations, including the net change in non-cash working capital, for the nine month period ending Sept. 30, 1991, amounted to an inflow of $27,999,000 as compared to a net outflow of $9,500,000 for the corresponding period in 1990. The improvement was due to improved gross margin from theater operations, reduced general and administrative expenses, tax recoveries recognized in 1991 compared to a tax expense incurred in 1990 and the reclassification of a portion of the long-tern debt to current.
    The gross margin from theater operations increased to 14.3 percent from 12.4 percent for the nine months ended Sept. 30, 1991, as compared to the same period in the prior year and increased to 16.0 percent from 15.5 percent for the third quarter of 1991 as compared to the third quarter of 1990. The increase is due primarily to the continuation of the theater cost reduction program.
    General and administrative expenses decreased by 18.8 percent to $15,318,000 during the first nine months of 1991 when compared to the same period in 1990 and by 18.4 percent to $4,810,000 during the third quarter of 1991 when compared to the third quarter in 1990.  The decrease reflects the impact of the continuation of the cost reduction program.
    Allen Karp, president and chief executive officer of Cineplex Odeon Corporation, said:  "Even though the exhibition industry results remained sluggish due to a weaker supply of film product during the second and third quarter of 1991, the corporation continues to show marked improvement in all cost areas over the prior year as a result of its restructuring program.  This improvement is evident from both the improved cash flow and reduced loss from continuing operations for the first nine months of 1991.  The recently completed public offering of rights should help continue this improvement by strengthening the corporation's balance sheet and reducing the corporation's interest expense."
                    CINEPLEX ODEON CORPORATION
                    CONSOLIDATED BALANCE SHEET
                  (In thousands of U.S. dollars)
    ASSETS                  Unaudited 9/30/91    Audited 12/31/90
    CURRENT ASSETS
    Accounts receivable     $       23,434       $     37,400
    Advances to distributors
     and producers                  12,026             14,397
    Distribution costs               2,917              3,901
    Inventories                      5,629              5,643
    Prepaid expenses and
     deposits                          967              2,338
    Total                           44,973             63,679
    PROPERTY, EQUIPMENT
     AND LEASEHOLDS                725,703            743,869
    OTHER ASSETS
    Long-term investments
     and receivables                 5,051              4,673
    Goodwill                        42,047             42,927
    Deferred charges                 7,597              1,165
    Total                           54,695             48,765
    TOTAL ASSETS             $     825,371        $   856,313
    LIABILITIES AND
     SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES
    Bank indebtedness        $         152             27,009
    Accounts payable and
     accruals                       85,605             95,507
    Deferred income                 14,541             18,335
    Income taxes payable             2,866              4,114
    Current portion of
     long-term debt and
     other obligations              28,276              4,569
    Total                          131,440            149,534
    LONG-TERM DEBT                 548,864            522,756
    CAPITALIZED LEASE OBLIGATIONS   10,231             11,804
    PENSION OBLIGATIONS              2,773              3,982
    OTHER LIABILITIES               15,501                ---
    SHAREHOLDERS' EQUITY
    Capital stock                  285,131            285,116
    Transition adjustment           21,994             19,836
    Retained earnings (deficit)   (190,563)          (136,715)
    Total                          116,562            168,237
    TOTAL LIABILITIES AND
     SHAREHOLDERS' EQUITY   $      825,371         $  856,313
                      CINEPLEX ODEON CORPORATION
                    CONSOLIDATED INCOME STATEMENT
       (In thousands of U.S. dollars except per share figures)
                                                 Unaudited
                           3 Mths      3 Mths      9 Mths     9 Mths
                           Ended       Ended       Ended      Ended
                           Sept. 30    Sept. 30    Sept. 30   Sept. 30
                             1991       1990        1991       1990
    REVENUE
      Admissions          $  97,809   $ 123,402   $ 300,982  $ 331,496
      Concessions            32,321      38,177      95,318    102,340
      Distribution
        and other             6,450       3,220      20,928     21,208
    Total                   136,580     164,799     417,228    455,044
    EXPENSES
      Theater operations,
       distribution and other
       expenses             115,375     137,691     351,285    391,428
       Cost of concessions    4,473       6,877      14,872     19,035
       General and
        administrative        4,810       5,895      15,318     18,857
       Depreciation and
        amortization         10,975      14,395      32,576     39,918
       Gain on investments     --          --          --         (139)
     Total                  135,633     164,858     414,051    469,099
     Income (loss) from
      continuing operations
      before the undernoted     947         (59)      3,177    (14,055)
     Other income (expenses) (2,670)      9,989      (3,374)   (12,004)
     Income (loss) from
      continuing
      operations before
      interest on long-term
      debt and bank
      indebtedness,
      income taxes
      and minority interest  (1,723)      9,930        (197)   (26,059)
     Interest on long-term
       debt and bank
       indebtedness          12,948      16,103      42,117     45,216
     Loss from continuing
      operations before
      income taxes and
      minority interest     (14,671)     (6,173)    (42,314)   (71,275)
     Income taxes               339         --       (1,794)     3,828
     Loss from continuing
      operations before
      minority interest     (15,010)     (6,175)    (40,520)   (75,103)
     Minority interest         --          --          --          (42)
     Loss from continuing
      operations            (15,010)     (6,173)    (40,520)   (75,061)
     Discontinued operations
       Income (loss) from
        operations             --        (1,418)     (4,028)    (2,039)
       Gain (loss) on
        disposal               --          --        (9,300)    19,113
    NET LOSS              $ (15,010)  $  (7,591)  $ (53,848) $ (57,987)
    BASIC
      Weighted average
       shares
       outstanding       47,694,000  47,691,000  47,693,000 47,691,000
      Loss per share
       from continuing
       operations            ($0.31)     ($0.13)     ($0.85)    ($1.57)
      Loss per share         ($0.31)     ($0.16)     ($1.13)    ($1.22)
    FULLY DILUTED
      Weighted average
       shares
       outstanding       51,246,000  50,531,000  50,840,000 50,398,000
      Loss per share
       from continuing
       operations            ($0.31)     ($0.13)     ($0.85)    ($1.57)
      Loss per share         ($0.31)     ($0.16)     ($1.13)    ($1.22)
                      CINEPLEX ODEON CORPORATION
         CONSOLIDATED STATEMENT OF CHANGES IN CASH RESOURCES
                     (in thousands of U.S. dollars)
                                           Unaudited
                                 9 Months Ended      9 Months Ended
                                 Sept. 30, 1991      Sept. 30, 1990
    CASH PROVIDED BY (USED FOR)
    OPERATIONS
    Income (loss) form continuing
     operations before interest on
     long-term debt and bank
     indebtedness, income taxes and
     minority interest             $        (197)   $         (26,059)
    Depreciation and amortization          32,576               39,918
    Gain on investments                        --                (139)
    Other income and expenses               3,374              12,004
    Total                                  35,753              25,724
    Interest on long-term debt
     and bank indebtedness                (42,117)            (45,216)
    Current income taxes                    1,794             (13,003)
    Net change in non-cash working
     capital                               32,569              22,995
    Total                                  27,999             (9,500)
    Cash flow from discontinued
     operations                           (4,028)               (791)
    Total                                 23,971             (10,291)
    FINANCING ACTIVITIES
    Increase (decrease) in
     long-term debt and other
     obligations                           21,730           (116,889)
    Issue of share capital                     15                 --
    Change in translation
     adjustment                              (862)               727
    Other items                            (8,693)                --
    INVESTMENT ACTIVITIES
    Proceeds on sales of theater
     properties                             4,410             87,410
    Proceeds on sale of film House
     (net of cash in disposed entity)         --              38,108
    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)         --               4,805
    Additions to property, equipment
     and leaseholds                       (13,384)           (63,777)
    Other items                              (330)            (9,964)
    Total                                  (9,304)             71,582
    NET INCREASE (DECREASE) IN CASH        26,857            (54,871)
    CASH AT BEGINNING OF PERIOD          (27,009)              21,665
    CASH AT END OF PERIOD     $             (152)  $         (33,206)
    For the purpose of this statement, cash is defined as cash less bank indebtedness.
    -0-                   11/7/91
    /CONTACT:  Howard Lichtman of Cineplex Odeon, 416-323-6600/
    (CPX) CO:  Cineplex Odeon Corporation ST:  Ontario IN:  ENT SU:  ERN PS -- NY105 -- 2483 11/07/91 20:28 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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