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CINEPLEX ODEON CORPORATION ANNOUNCES IMPROVED FIRST QUARTER 1993 RESULTS

 TORONTO, May 7 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX) today announced its financial results for the three month period ending March 31, 1993. The results demonstrate continued improvement in the corporation's performance.
 The corporation reported a reduced first quarter 1993 net loss of $10.8 million on revenues of $116.6 million, compared with a net loss of $13.9 million on revenues of $129 million in first quarter 1992. All currency amounts are in U.S. dollars.
 On both a basic and fully diluted basis, Cineplex Odeon reduced its net loss per share to $0.11 in the first quarter of 1993 from $0.17 in the first quarter of 1992.
 The corporation recorded positive cash flow from continuing operations for the first three months of 1993 of $370,000, before changes to non-cash working capital, compared with a cash outflow of $3 million in the first three months of 1992. The change in non-cash working capital in the first quarter of 1993 utilized $4.5 million of cash flow, compared to $1.2 million in the first quarter of 1992.
 Cash flow from operations in the first quarter of 1993 was achieved on a revenue base which was $12,475,000 lower than the same period in 1992. This improvement is largely the result of the corporation's continuing reduction in operating costs and lower interest expense.
 The decline in revenue in the first quarter of 1993 was due to a number of factors, including lack of strong film product from the corporation's suppliers, the sale of theatres in non-core markets in Texas and Washington states during 1992, selective price reductions at the box office, and unusually inclement weather in markets where the corporation has a significant presence.
 General and administrative expenses were reduced to $4.2 million in the first quarter of 1993, a 10.6 per cent decrease compared to the first quarter of 1992.
 Interest expense was $7.7 million, a decrease of 18.8 per cent compared to the first quarter of 1992. This was primarily because of a reduction in total debt and lower effective interest rates. Allen Karp, president and chief executive officer of Cineplex Odeon Corporation, said, "The first quarter is traditionally the weakest quarter for the motion picture exhibition business, and the first three months of 1993 were particularly weak for the film industry as the film studios prepared a record number of releases for playoff during the higher volume summer period. However, notwithstanding that total revenue for Cineplex Odeon was down by $12.3 million compared to the first quarter of last year, we were able to produce positive cash flow from operations before the effects of the net change in non-cash working capital. We also continued to reduce both our general and administrative expenses and our interest expense.
 "We go forward into the summer with eager anticipation. The line-up of films to be released looks very strong, including Steven Spielberg's `Jurassic Park'; `Last Action Hero' starring Arnold Schwarzenegger; Tom Cruise in `The Firm'; `Cliffhanger' starring Sylvester Stallone; `Super Mario: The Movie' with Bob Hoskins; Sean Connery in `Rising Sun'; and `Dennis The Menace' starring Walter Matthau. We are optimistic that a strong summer at the box office, combined with our lower cost base, will result in continued improvement in our financial results," Mr. Karp said.
 Cineplex Odeon is one of North America's largest theatre circuits with 1,614 screens in 363 locations, primarily in major markets. The corporation's shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol CPX.
 CINEPLEX ODEON CORPORATION
 CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
 (In thousands of U.S. dollars except per share figures)
 3 Months Ended 3 Months Ended
 3/31/93 3/31/92
 REVENUE 116,649 129,124
 EXPENSES 118,850 132,849
 Loss from continuing operations
 before the undernoted (2,201) (3,725)
 Other expenses 517 319
 Interest on long-term debt 7,663 9,442
 Income taxes 460 384
 NET LOSS (10,841) (13,870)
 Loss per share
 Basic ($0.11) ($0.17)
 Fully Diluted ($0.11) ($0.17)
 CINEPLEX ODEON CORPORATION
 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN CASH RESOURCES
 (Unaudited -- In thousands of U.S. dollars)
 3 Months Ended 3 Months Ended
 3/31/93 3/31/92
 CASH PROVIDED BY (USED FOR)
 OPERATING ACTIVITIES
 Net loss (10,841) (13,870)
 Depreciation and amortization 10,859 10,854
 Other non-cash items 352 --
 370 (3,016)
 Net change in non-cash
 working capital (4,881) 1,853
 (4,511) (1,163)
 FINANCING ACTIVITIES 5,887 8,560
 INVESTMENT ACTIVITIES (1,611) (7,411)
 NET INCREASE (DECREASE)
 IN CASH DURING YEAR (235) (14)
 CASH AT BEGINNING OF YEAR 1,350 1,088
 CASH AT END OF YEAR 1,115 1,074
 -0- 5/07/93
 /CONTACT: Howard Lichtman, executive vice president, marketing & communications of Cineplex Odeon Corporation, 416-323-6634/
 (CPX)


CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU: ERN

PS -- NY020 -- 5851 05/07/93 10:17 EDT
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