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IMAGE ENTERTAINMENT REPORTS HIGHER SALES AND OPERATING INCOME FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 31, 1991

IMAGE ENTERTAINMENT REPORTS HIGHER SALES AND OPERATING INCOME
 FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 31, 1991
 CHATSWORTH, Calif., Nov. 8 /PRNewswire/ -- Image Entertainment, Inc., (NASDAQ-NMS: DISK) one of the largest distributors of programming on laserdisc in the United States, to day reported increases in sales and operating income for the second quarter and six months ended Sept. 30, 1991.
 Martin W. Greenwald, chairman and chief executive officer, said, "A strong release schedule and higher operating margins, resulting from our continued focus on cost control, contributed to our financial performance in the second quarter. Prospectively, the release of such blockbuster hits as Fantasia' in October and Dances with Wolves' and The Silence of the Lambs' in November should generate record sales in the third quarter. We believe continued expansion will allow us to achieve further economics of scale and contribute to our bottom line."
 For the quarter, sales increased 35 percent to $12.8 million, up from $9.5 million in the second quarter a year ago. Operating income of $318,269 for the three months compared with an operating loss of $259,807 in the prior year period as selling expenses, general and administrative expenses and amortization costs all declined as a percentage of sales. This improvement in margins was partially offset by an increase in the cost of laserdisc sales as a percentage of sales, reflecting higher discounts on slower moving titles.
 For the quarter, Image reported a net loss of $199,109, or $.02 per share, compared with a net loss of $624,577, or $.06 per share, for the quarter a year ago. Interest expense for the quarter increased to $414,065 from $364,770 in the second quarter a year ago as a result of increased borrowings. $102,513 of the $199,109 net loss, resulted from a write-off of leasehold improvements in conjunction with the relocation of its shipping and warehousing operations to a larger facility.
 For the six months ended Sept. 30, 1991, sales grew 14 percent to $22.5 million, up from $19.7 million in the same period a year ago. Operating income increased 46 percent to $260,345, compared with $178,426 in the prior period, as a result of cost containment. Year- to-date, the company reported a net loss of $681,748, or $.06 per share, compared with a net loss of $512,717, or $.05 per share, in the prior year.
 Image Entertainment, Inc. is one of the largest distributors of programming on laserdisc in the United States with an extensive distribution network of more than 1,800 retail outlets and exclusive licensing and distribution agreements with some of the most important producers of movies, music videos and specialty programming, including Disney's Buena Vista Home Video, FoxVideo, Hanna-Barbera Home Video, Orion Home Video and SONY Music Video. The company has approximately 10.9 million shares outstanding and trades on the NASDAQ National Market System (symbol: DISK).
 IMAGE ENTERTAINMENT INC.
 Statement of Operations
 Three Months Ended
 Sept. 30, 1991 Sept. 30, 1990
 (Unaudited) (Unaudited)
 Net sales $12,835,223 $9,524,477
 Operating costs
 and expenses:
 Cost of laserdisc
 sales 10,115,496 7,145,103
 Selling expenses 837,409 855,217
 General & admini-
 strative expenses 776,210 897,802
 Amortization of pro-
 duction costs 787,839 886,162
 Total 12,516,954 9,784,284
 Operating income
 (loss) 318,269 (259,807)
 Other expenses:
 Interest expense 414,065 364,770
 Write-off of lease-
 hold improvements 102,513 ---
 Loss before income
 taxes (198,309) (624,577)
 Income taxes 800 ---
 Net loss ($199,109) ($624,577)
 Net loss per share ($.02) ($.06)
 Weighted average shares
 outstanding 10,862,866 10,664,804
 Six Months Ended
 (Unaudited) (Unaudited)
 Sept. 30, 1991 Sept. 30, 1990
 Net sales $22,536,853 $19,710,855
 Operating costs
 and expenses:
 Cost of laserdisc
 sales 17,440,876 14,796,141
 Selling expenses 1,611,663 1,489,160
 General & admini-
 strative expenses 1,694,182 1,695,729
 Amortization of pro-
 duction costs 1,529,787 1,551,399
 Total 22,276,508 19,532,429
 Operating income
 (loss) 260,345 178,426
 Other expenses:
 Interest expense 838,780 690,343
 Write-off of lease-
 hold improvements 102,513 ---
 Loss before income
 taxes (680,948) (511,917)
 Income taxes 800 800
 Net loss ($681,748) ($512,717)
 Net loss per share ($.06) ($.05)
 Weighted average shares
 outstanding 10,857,170 10,158,597
 -0- 11/8/91
 /CONTACT: David DelGrosso (media), 818-407-9100, ext. 275 or Cheryl Lee (investor), 818-407-9100, ext. 256, both of Image Entertainment; or William F. Coffin of Financial Relations Board, 818-783-2400, for Image Entertainment/
 (DISK) CO: Image Entertainment Inc. ST: California IN: ENT SU: ERN SE-AL -- LA021 -- 2802 11/08/91 20:30 EST
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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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Date:Nov 8, 1991
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