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CINEPLEX ODEON CORPORATION ANNOUNCES 1992 SECOND QUARTER RESULTS AND THE SALE OF CERTAIN THEATERS IN WASHINGTON

 CINEPLEX ODEON CORPORATION ANNOUNCES 1992 SECOND QUARTER
 RESULTS AND THE SALE OF CERTAIN THEATERS IN WASHINGTON
 TORONTO, Aug. 10 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX) announced today its financial results for both the three and six month periods ended June 30, 1992. All currency amounts are in U.S. dollars. The second quarter 1992 net loss was $7,596,000 on revenues of $130,981,000 compared to a second quarter 1991 net loss of $28,935,000 on revenues of $125,647,000. The net loss for the second quarter of 1991 includes a loss from discontinued operations of $11,283,000. For the six months ended June 30, 1992, net loss was $21,466,000 on revenues of $260,105,000. Net loss for the corresponding period in 1991 was $38,838,000 on revenues of $280,648,000. The net loss for the first six months of 1991 includes a loss from discontinued operations of $13,328,000. In spite of lower revenues of approximately $20,500,000 in the first six months of 1992, the corporation reduced its net loss by approximately $17,400,000. The revenue decline resulted primarily from weak film product available to the corporation in Canada during the first quarter of 1992. This issue has now been addressed by management and the improved second quarter results in part reflects the corporation's access to better film product in Canada.
 Loss per share for the second quarter of 1992 on both basic and fully diluted basis was $0.09 as compared to $0.61 per share for the second quarter of 1991. Loss per share for the current six month period on both basic and fully diluted basis was $0.26 as compared to $0.81 per share in the corresponding period in 1991.
 Cash flow from operations for the six month period ended June 30, 1992 amounted to a net outflow of $3,640,000 as compared to a net inflow of $2,469,000 for the corresponding period in 1991. The net cash outflow for the first six months of 1992 was impacted by the net change in non-cash working capital which used $3,881,000 of available operating cash flow. In the comparable period of 1991, net change in non-cash working capital contributed $5,716,000 to operating cash flow. Excluding the impact of the net change in non-cash working capital, the corporation's cash flow from operations for the first six months of 1992 amounted to a net inflow of $241,000 as compared to a net outflow of $3,347,000 for the first six months of 1991.
 The gross margin from theatre operations during the second quarter of 1992 as compared to the second quarter of 1991 increased from 9.4 percent to 13.6 percent. The improvement in the second quarter gross margin is primarily a combination of an increase in revenues and the continuation of the theatre operational cost reduction program.
 General and administrative expenses decreased by 10.9 percent to $4,482,000 during the second quarter of 1992 when compared to the second quarter of 1991 and by 12.7 percent to $9,175,000 during the first six months of 1992 when compared to the same period in the prior year. The decrease reflects the continuing impact of the cost reduction program initiated in 1990.
 The corporation also announced that it has completed the sale of 13 motion picture theaters (43 screens) in certain non-core markets in the state of Washington to Eastgate Theatre, Inc., of Portland, Oregon, a subsidiary of Act III Theatres Inc.
 Allen Karp, president and chief executive officer of Cineplex Odeon Corporation said, "The corporation continues its steady improvement and the impact of the restructuring program will continue to be of benefit as revenue improves. Additionally, the closing of the Washington state transaction has allowed the corporation to continue its program to reduce bank indebtedness."
 CINEPLEX ODEON CORPORATION
 Consolidated Income Statement
 (in thousands of U.S. dollars except per share figures, unaudited)
 3 Months Ended 3 Months Ended
 June 30, 1992 June 30, 1991
 Revenue:
 Admissions $ 93,930 $ 89,469
 Concessions 31,869 28,165
 Distribution and other 5,182 8,013
 Total 130,981 125,647
 Expenses:
 Theatre operations,
 distribution and other
 expenses 110,240 110,257
 Cost of concessions 4,367 4,463
 General and administrative 4,482 5,032
 Depreciation and amortization 10,644 10,666
 Total 129,733 130,418
 Income/(loss) from continuing
 operations before the
 undernoted 1,248 (4,771)
 Other income (expenses) 109 (391)
 Income/(loss) from continuing
 operations before interest
 on long-term debt and income
 taxes 1,357 (5,162)
 Interest on long-term debt 8,656 13,925
 Loss from continuing
 operations before
 income taxes (7,299) (19,087)
 Income taxes (recoveries) 297 (1,435)
 Loss from continuing
 operations (7,596) (17,652)
 Discontinued operations
 Loss from operations 0 (1,983)
 Loss on disposal 0 (9,300)
 Net loss $ (7,596) $ (28,935)
 Basic:
 Weighted average
 shares outstanding 83,362,000 47,694,000
 Loss per share from
 continuing operations $ (0.09) $ (0.37)
 Loss per share $ (0.09) $ (0.61)
 Fully Diluted
 Weighted average shares
 outstanding 87,136,000 51,268,000
 Loss per share
 from continuing
 operations $ (0.09) $ (0.37)
 Loss per share $ (0.09) (0.61)
 CINEPLEX ODEON CORPORATION
 Consolidated Income Statement
 (in thousands of U.S. dollars except per share figures, unaudited)
 6 Months Ended 6 Months Ended
 June 30, 1992 June 30, 1991
 Revenue:
 Admissions $ 187,896 $ 203,173
 Concessions 62,539 62,997
 Distribution and other 9,670 14,478
 Total 260,105 280,648
 Expenses:
 Theatre operations,
 distribution and other
 expenses 223,138 235,910
 Cost of concessions 8,771 10,399
 General and administrative 9,175 10,508
 Depreciation and amortization 21,498 21,601
 Total 262,582 278,418
 Income/(loss) from continuing
 operations before the
 undernoted (2,477) 2,230
 Other income (expenses) (210) (704)
 Income/(loss) from continuing
 operations before interest
 on long-term debt and income
 taxes (2,687) 1,526
 Interest on long-term debt 18,098 29,169
 Loss from continuing
 operations before
 income taxes (20,785) (27,643)
 Income taxes (recoveries) 681 (2,133)
 Loss from continuing
 operations (21,466) (25,510)
 Discontinued operations
 Loss from operations 0 (4,028)
 Loss on disposal 0 (9,300)
 Net loss $ (21,466) $ (38,838)
 Basic
 Weighted average
 shares outstanding 83,362,000 47,692,000
 Loss per share from
 continuing operations $ (0.26) $ (0.53)
 Loss per share $ (0.26) $ (0.81)
 Fully Diluted
 Weighted average shares
 outstanding 87,157,000 50,633,000
 Loss per share
 from continuing
 operations $ (0.26) $ (0.53)
 Loss per share $ (0.26) $ (0.81)
 CINEPLEX ODEON CORPORATION
 Consolidated Balance Sheet
 (in thousands of U.S. dollars)
 Unaudited Audited
 6/30/92 12/31/91
 Assets:
 Current assets
 Cash $ 1,181 $ 1,088
 Accounts receivable 15,663 21,511
 Advances to distributors and
 producers 7,371 7,496
 Distribution costs 1,855 2,232
 Inventories 5,213 5,317
 Prepaid expenses and deposits 1,864 2,427
 Total 33,147 40,071
 Property, equipment and leaseholds 684,634 710,657
 Other Assets
 Long-term investments and
 receivables 6,596 6,650
 Goodwill 41,111 41,733
 Deferred charges 5,077 5,962
 Total 52,784 54,345
 Total assets $770,565 $805,073
 Liabilities and shareholders' equity
 Current Liabilities:
 Accounts payable and accruals $ 79,301 $ 89,719
 Deferred income 9,324 14,450
 Income taxes payable 2,159 2,344
 Current portion of long-term debt
 and other obligations 63,849 62,382
 Total 154,633 168,895
 Long-term debt 416,821 410,182
 Capitalized lease obligations 7,719 9,646
 Pension obligations 2,571 2,602
 Shareholders' equity
 Capital stock 408,468 408,466
 Translation adjustment 15,746 19,209
 Retained earnings (deficit) (235,393) (213,927)
 Total 188,821 213,748
 Total liabilities and
 shareholders' equity $ 770,565 $ 805,073
 CINEPLEX ODEON CORPORATION
 Consolidated Statement of Changes in Cash Resources
 (in thousands of U.S. dollars, unaudited)
 6 Months Ended 6 Months Ended
 June 30, 1992 June 30, 1991
 Cash provided by (used for)
 operating activities:
 Loss from continuing
 operations $ (21,466) $ (25,510)
 Depreciation and
 amortization 21,498 21,601
 Other non-cash items 209 4,690
 Net change in non-cash
 working capital (3,881) 5,716
 Total (3,640) 6,497
 Cash flow from discontinued
 operations 0 (4,028)
 Total (3,640) 2,469
 Financing activities
 Decrease in long-term
 debt and other
 obligations (2,677) (1,615)
 Increase in long-term
 debt and other
 obligations 12,727 36,497
 Issue of share capital 2 15
 Change in translation
 adjustment 196 (2,151)
 Other (547) (2,180)
 Total 9,701 30,566
 Investment activities
 Proceeds on sale of certain
 theatre properties 4,590 3,918
 Additions to property,
 equipment and leaseholds (8,353) (7,035)
 Other (2,205) (3,011)
 Total (5,968) (6,128)
 Net increase (decrease)
 during period 93 26,907
 Cash at beginning of period 1,088 (25,540)
 Cash at end of period $ 1,181 $ 1,367
 -0- 8/10/92
 /CONTACT: Howard Lichtman, executive vice-president of marketing and communications of Cineplex Odeon Corporation, 416-323-6600/
 (CPX) CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU: ERN


TM -- NY068 -- 8678 08/10/92 16:53 EDT
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