Printer Friendly

MOUNTASIA ENTERTAINMENT INTERNATIONAL, INC. ANNOUNCES RESULTS FOR THE THREE MONTH 'STUB' PERIOD ENDED DECEMBER 31, 1995

ATLANTA, March 8 /PRNewswire/ -- Mountasia Entertainment International, Inc. (Nasdaq-NNM: FUNN) today announced financial results for the three month period ended December 31, 1995. Operating revenues were $6.4 million, a 54% increase over the $4.2 million operating revenues for the comparable period last year. The Company has previously announced the change of its fiscal year end from September 30 to December 31. As a result of this change, the three month period ending December 31, 1995 is herein referred to as the Company's "stub- period." The Company reported a loss from continuing operations applicable to common stock for the stub-period of $2.6 million, or $0.34 per share, compared to a loss from continuing operations before a cumulative effect of a change in accounting principle of $1.2 million, or $0.16 per share for the same period prior year.

The increased loss of $1.4 million was substantially a result of a $0.7 million increase in depreciation resulting primarily from increased assets from the Company's acquisition of Malibu Grand Prix Corporation ("Malibu"); $0.3 million in one-time professional and consulting fees; $0.2 million in one-time financing transaction fees; and $0.3 million in severance accruals and duplicate salaries associated with personnel reductions relating to the Malibu acquisition.

The Company previously announced its intent to discontinue the operations of its development and construction division. The loss from operations of this division and the charges recognized for discontinuance of the division's operations totaled $0.9 million for the stub-period compared to a net profit of $0.1 million for the same period last year. After these charges and approximately $0.2 million in preferred stock dividends, the Company's net loss applicable to common shareholders for the stub-period was $3.8 million or $0.45 per share, compared to $1.5 million or $0.21 per share for the comparable period last year.

In making this announcement, L. Scott Demerau, Chairman, President and Chief Executive Officer, commented, "The period ended December 31 typically represents the most inactive period of our operating year. Despite charges and losses associated with the discontinued operations of our development and construction division in the stub-period, and the other one-time charges related to the 1995 restructuring which were also recognized in the stub-period, we are pleased with the operating results of our entertainment centers. This improvement in operating results reflects the successful merger of Malibu Grand Prix Centers into Mountasia's organization. With the merger now behind us, the well defined strategic shift in our approach to development and construction activities, and the substantial progress we are making in completing our capital restructuring program, Mountasia is now positioned to resume its pursuit of growth and expansion opportunities."

Separately, the Company announced it is proceeding with its previously announced exchange offer for up to 5 million shares of common stock commencing in mid-March subject to compliance with federal and state securities laws, the preparation of appropriate offering materials, and the receipt of certain required consents and approvals. The Company further announced that it reserves the right to accept the exchange of shares above 5 million in an attempt to meet shareholder demand for the exchange.

L. Scott Demerau, Chairman, Chief Executive Officer and President, said, "Since the initial announcement of the exchange offer, the Company has received many inquiries from shareholders and, reaffirms that the Company remains committed to the exchange offer and is in the process of implementing the offer in a timely manner."

Headquartered in Atlanta, Georgia, Mountasia Entertainment International, Inc., is a leader in the family entertainment center industry, with 53 company owned or licensed family fun centers located in the United States and four other countries. Mountasia has been publicly traded since November 1993.
 -0- 3/8/96


/CONTACT: Gregory N. Waters, Executive Vice President and Chief Financial Officer, or Margaret Schaeffer, Investor Relations, Mountasia Entertainment International, 770-442-6640/

(FUNN)

CO: Mountasia Entertainment International, Inc. ST: Georgia IN: ENT SU: ERN

BR-SD -- ATF003 -- 1526 03/08/96 10:05 EST
COPYRIGHT 1996 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 8, 1996
Words:667
Previous Article:NORRELL CORPORATION ANNOUNCES INCREASE IN FIRST QUARTER DIVIDEND
Next Article:EXIDE ELECTRONICS ANNOUNCES SUCCESSFUL COMPLETION OF DEBT OFFERING
Topics:

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters