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CINEPLEX ODEON CORPORATION REPORTS THIRD QUARTER EARNINGS VS. LOSS LAST YEAR; CASH FLOW INCREASES SEVEN-FOLD

 TORONTO, Nov. 4 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX; TSE) today announced increased revenues and earnings for both the third quarter and nine months ended Sept. 30, 1993. All currency amounts are in U.S. dollars.
 Third quarter income from continuing operations was $10,081,000, or $0.09 per share, on revenues of $166,880,000 compared with a loss from continuing operations of $6,854,000, or ($0.08) per share, on revenues of $132,700,000 in the same quarter of 1992.
 Cash flow from continuing operations, excluding the net change in non-cash working capital, for the three month period ended Sept. 30, 1993, amounted to a net inflow of $18,065,000, as compared to a net inflow of $2,644,000 for the corresponding period in 1992.
 Net income for the three month period was $2,732,000, or $0.03 per share, and was affected by a one-time charge for discontinued operations of $7,349,000. The charge was primarily a non-cash item. These results compare with a 1992 third quarter loss of $7,169,000, or ($0.09) per share, including a $315,000 loss from discontinued operations.
 The third quarter 1993 charge for discontinued operations is associated with an agreement reached by the corporation to relinquish to its joint venture partners an investment in a commercial real estate project in Toronto, begun by previous management. The corporation has been relieved of its commitment to construct a multi-use commercial real estate project, which included a guarantee of certain minimum annual levels of return to the partner as well as ongoing carrying costs of approximately $2 million per year.
 Allen Karp, president and chief executive officer, said, "The decision to discontinue this project follows our strategy to focus on our core business, and eliminates future cash outflows associated with the project."
 For the nine months ended Sept. 30, 1993, income from continuing operations was $910,000, equivalent to $0.01 per share, on revenues of $416,842,000. This compares to a loss from continuing operations for the corresponding period in 1992 of $27,361,000, ($0.33) per share, on revenues of $392,805,000.
 Cash flow from continuing operations, excluding the net change in non-cash working capital, for the nine month period ended Sept. 30, 1993 amounted to a net inflow of $30,663,000 as compared to a net inflow of $3,844,000 for the corresponding period in 1992.
 For the nine months ended Sept. 30, 1993, the net loss was $7,431,000, or ($0.07) per share, after reporting a loss from discontinued operations of $8,341,000 (including the third quarter charge referred to above). In the corresponding period of 1992, the net loss was $28,635,000, or ($0.34) per share, after reporting a loss from discontinued operations of $1,274,000.
 In commenting on the results, Mr. Karp said, "Our improved financial results reflect increased attendance, improved concession sales and the continuation of our cost control program.
 "The strong summer release schedule featuring such films as Jurassic Park, The Fugitive, Sleepless in Seattle, The Firm and In the Line of Fire resulted in regular moviegoers coming more often and infrequent moviegoers -- people who have not been to a movie in years -- coming back. We expect this trend to continue."
 Mr. Karp continued, "Concession revenues were boosted by increased attendance and higher concession per patron due in part to our ongoing marketing efforts. Such marketing efforts included the introduction of new products, such as bulk candy, and improved customer service."
 General and administrative expenses decreased by 7.8 per cent to $3,742,000 in the third quarter of 1993 when compared to the third quarter of 1992 and by 11.3 per cent to $11,743,000 during the first nine months of 1993 when compared to the same period in the prior year.
 Interest on long-term debt decreased by 18.4 per cent to $21,514,000 during the first nine months of 1993 compared to the same period in 1992.
 Mr. Karp stated, "Our ability to keep a tight control on costs, even with revenues rising, has also contributed to our improved results. In addition, I am pleased to report that in the nine months ended Sept. 30, 1993 we have made repayments under our primary bank lending facility of approximately $28,000,000. This further improves our balance sheet and strengthens our position for the future."
 "Our outlook is optimistic moving into the fourth quarter and new year. The quality and quantity of our Holiday release schedule is strong, and the summer season proved that consumers will come out to see good movies. Our cost cutting efforts will continue to enhance our bottom line as revenues increase in the expanding market, and we are well positioned for growth in 1994 and beyond," concluded Mr. Karp.
 Cineplex Odeon Corporation is an integrated entertainment company engaged in operating motion picture cinemas in six Canadian provinces, 14 U.S. states and the District of Columbia, and in distributing commercial and specialty films in Canada. With headquarters in Toronto, Cineplex Odeon is one of North America's largest theater circuits with 1,609 screens in 362 locations, primarily in major markets. The corporation's shares are traded on the New York Stock Exchange and the Toronto Stock Exchange.
 CINEPLEX ODEON CORPORATION
 Condensed Consolidated Income Statement
 (Unaudited, in thousands of U.S. dollars except per share figures)
 3 months 3 months 9 months 9 months
 ended ended ended ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Revenue 166,880 132,700 416,842 392,805
 Expenses 149,708 131,766 393,065 394,348
 Income(loss)
 from continuing
 operations
 before the
 undernoted 17,172 934 23,777 (1,543)
 Other income
 (expenses) 76 1,010 (116) 1,482
 Interest on
 long-term
 debt 6,691 8,547 21,514 26,368
 Income taxes 476 251 1,237 932
 Income(loss)
 from continuing
 operations 10,081 (6,854) 910 (27,361)
 Discontinued operations
 Loss from
 operations (351) (315) (1,343) (1,274)
 Loss on
 disposal (6,998) --- (6,998) ---
 Net Income
 (Loss) 2,732 (7,169) (7,431) (28,635)
 Earnings(loss)
 per share from
 continuing opers.
 Basic $0.09 ($0.08) $0.01 ($0.33)
 Fully Diluted $0.09 ($0.08) $0.01 ($0.33)
 Earnings(loss)
 per share
 Basic $0.03 ($0.09) ($0.07) ($0.34)
 Fully Diluted $0.03 ($0.09) ($0.07) ($0.34)
 CINEPLEX ODEON CORPORATION
 Condensed Consolidated Statement Of Changes In Cash Resources
 (Unaudited, in thousands of U.S. dollars)
 Nine months ended 9/30/93 9/30/92
 Cash Provided By (Used For)
 Operating Activities
 Income(loss) from
 continuing operations 910 (27,361)
 Depreciation and amortization 32,369 31,982
 Other non-cash items (2,616) (777)
 Total 30,663 3,844
 Net change in non-cash
 working capital (4,287) (6,862)
 Total 26,376 (3,018)
 Cash flow from
 discontinued operations (1,047) (1,274)
 Total 25,329 (4,292)
 Financing activities (18,083) 7,939
 Investment activities (6,410) (3,633)
 Net increase during period 836 14
 Cash at beginning of period 1,350 1,088
 Cash at end of period 2,186 1,102
 -0- 11/04/93
 /CONTACT: Howard Lichtman, executive vice president - marketing and communications of Cineplex Odeon Corporation, in Toronto, 416-323-6634/
 (CPX)


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

MP -- NY092 -- 0816 11/04/93 14:34 EST
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