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CINEPLEX ODEON ANNOUNCES 1992 FIRST QUARTER RESULTS

 CINEPLEX ODEON ANNOUNCES 1992 FIRST QUARTER RESULTS
 TORONTO, May 8 /PRNewswire/ -- Cineplex Odeon Corporation


(NYSE: CPX) today announced its financial results for the three months ended March 31, 1992. All currency amounts are in U.S. dollars.
 For the three months ended March 31, 1992, net loss from continuing operations was $13,870,000 on revenues of $129,124,000. Net loss from continuing operations for the corresponding period in 1991 was $7,858,000 on revenues of $155,001,000. After adjusting for discontinued operations in 1991, the net loss for the first quarter was $9,903,000.
 The positive impact of the corporation's restructuring program contained the loss in the first quarter of 1992 even though revenues were lower by approximately $26,000,000. This revenue decline is largely a result of weak product availability in Canada during the first quarter of 1992. Further, the Easter holiday weekend, traditionally a strong period for both the corporation and the industry, fell in the second quarter of this year, as opposed to the first quarter in the prior year. The product availability issue in Canada has now been addressed by management, which expects this to have a positive impact going forward.
 Loss per share from continuing operations for the current three-month period was $0.17 as compared to $0.16 per share in the corresponding period in 1991. After adjusting for the results of discontinued operations, loss per share for the three months ended March 31, 1992, was $0.17 compared to $0.21 for the three months ended March 31, 1991.
 Cash flow from continuing operations for the three-month period ended March 31, 1992, amounted to a net outflow of $1,163,000 as compared to a net inflow of $8,023,000 for the corresponding period in 1991. This is largely attributable to the decrease in revenues as discussed above.
 The gross margin from theatre operations for the three months ended March 31, 1992, decreased to 10.0 percent from 16.8 percent from the same period in the prior year. The decrease is primarily attributable to the fixed component of theatre operations expenses, in particular occupancy expenses, which do not fluctuate with revenues.
 General and administrative expenses decreased by 14.3 percent to $4,693,000 during the first three months of 1992 when compared to the same period in 1991. The decrease reflects the continuing impact of the cost reduction program initiated in 1990. The corporation will continue to pursue reductions in the area of general and administrative expenses where practicable.
 Allen Karp, president and chief executive officer of Cineplex Odeon Corporation, said, "Although revenues decreased for the first quarter of this year when compared to the record first quarter of last year, we believe that the results achieved are indicative of a number of positive steps undertaken by the corporation. Principal amongst these steps are the general reduction in our variable operating costs and the reduction in interest expense. We believe that the corporation is now well positioned to take full advantage of the promising film release schedule for the balance of this year."
 CINEPLEX ODEON CORPORATION
 Consolidated Balance Sheet
 (In thousands of U.S. dollars)
 Unaudited Audited
 3/31/92 12/31/91
 ASSETS
 Current assets:
 Cash $ 1,074 $ 1,088
 Accounts receivable 16,121 21,511
 Advances to distributors and producers 7,225 7,496
 Distribution costs 2,005 2,232
 Inventories 5,285 5,317
 Prepaid expenses and deposits 2,071 2,427
 Total 33,781 40,071
 Property, equipment and leaseholds 703,027 710,657
 Other assets:
 Long-term investments and receivables 6,972 6,650
 Goodwill 41,414 41,733
 Deferred charges 5,602 5,962
 Total 53,988 54,345
 Total assets $ 790,796 $ 805,073
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities
 Accounts payable and accruals $ 85,738 $ 89,719
 Deferred income 13,764 14,450
 Income taxes payable 2,385 2,344
 Current portion of long-term debt and
 other obligations 63,518 62,382
 Total 165,405 168,895
 Long-term debt 416,235 410,182
 Capitalized lease obligations 9,543 9,646
 Pension obligations 2,657 2,602
 Shareholders' equity:
 Capital stock 408,466 408,466
 Translation adjustment 16,287 19,209
 Retained earnings (deficit) (227,797) (213,927)
 Total 196,956 213,748
 Total liabilities and shareholders' equity $ 790,796 $ 805,073
 CINEPLEX ODEON CORPORATION
 Consolidated Income Statement
 (In thousands of U.S. dollars except per share figures)
 Unaudited
 Three months ended March 31 1992 1991
 REVENUE
 Admissions $ 93,966 $113,704
 Concessions 30,670 34,832
 Distribution and other 4,488 6,465
 Total 129,124 155,001
 EXPENSES
 Theatre operations, distribution and
 other expenses 112,898 125,653
 Cost of concessions 4,404 5,936
 General and administrative 4,693 5,476
 Depreciation and amortization 10,854 10,935
 Total 132,849 148,000
 Income/(Loss) from continuing operations
 before the undernoted (3,725) 7,001
 Other income (expenses) (319) (313)
 Income/(loss) from continuing operations
 before interest on long-term debt and
 bank indebtedness and income taxes (4,044) 6,688
 Interest on long-term debt and bank
 indebtedness 9,442 15,244
 Loss from continuing operations before
 income taxes (13,486) (8,556)
 Income taxes (recoveries) 384 (698)
 Loss from continuing operations (13,870) (7,858)
 Discontinued operations:
 (Loss) from operations -- (2,045)
 Net loss $(13,870) $ (9,903)
 Basic:
 Weighted average shares outstanding 83,361,519 47,691,000
 Loss per share from cont. opers. $(0.17) $(0.16)
 Loss per share $(0.17) $(0.21)
 Fully diluted:
 Weighted average shares outstanding 87,177,590 49,989,000
 Loss per share from cont. opers. $(0.17) $(0.16)
 Loss per share $(0.17) $(0.21)
 CINEPLEX ODEON CORPORATION
 Consolidated Statement of Changes in Cash Resources
 (In thousands of U.S. dollars)
 Unaudited
 Three months ended March 31 1992 1991
 Cash provided by (used for)
 operating activities:
 Loss from continuing operations $(13,870) $ (7,858)
 Depreciation and amortization 10,854 10,935
 Other non-cash items -- 2,354
 Net change in non-cash working capital 1,853 2,592
 Subtotal (1,163) 8,023
 Cash flow from discontinued opers. -- (2,045)
 Total (1,163) 5,978
 Financing activities:
 Decrease in long-term debt and other
 obligations (1,453) (2,017)
 Increase in long-term debt and other
 obligations 10,390 27,766
 Change in translation adjustment 181 90
 Other (558) (4,585)
 Total 8,560 21,254
 Investment activities:
 Proceeds on sale of certain theatre
 properties -- 2,221
 Additions to property, equipment and
 leaseholds (6,937) (515)
 Other (474) (1,972)
 Total (7,411) (266)
 Net increase (decrease) during period (14) 26,966
 Cash at beginning of period 1,088 (25,540)
 Cash at end of period $ 1,074 $ 1,426
 Change in non-cash working capital:
 Current assets:
 Accounts receivable $ 5,404 $ 8,060
 Advances to distributors and
 producers 272 564
 Distribution costs 229 102
 Inventories 32 (21)
 Prepaid expenses and deposits 358 701
 Current liabilities:
 Accounts payable and accruals (3,792) (3,457)
 Deferred income (691) (2,707)
 Income taxes payable 41 (650)
 Total $ 1,853 $ 2,592
 -0- 5/8/92
 /CONTACT: Howard Lichtman, executive vice president, marketing and communications, of Cineplex Odeon, 416-323-6600/
 (CPX) CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU: ERN


GK -- NY024 -- 8041 05/08/92 11:10 EDT
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