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 LOS ANGELES, Aug. 10 /PRNewswire/ -- Republic Pictures Corp. (NASDAQ: RPIC) recorded net income of $255,000, or $0.04 per share fully diluted, on revenues of $22,686,000 for the second quarter ended June 30, 1993, reversing a loss of ($150,000), or ($0.03) per share, on revenues of $22,024,000 a year ago, Russell Goldsmith, chairman and chief executive officer, announced today.
 For the six months ended June 30, 1993, the company posted net income of $411,000, or $0.07 per share on revenues of $37,348,000, compared with a year ago loss of ($1,001,000), or ($0.22) per share, on revenues of $36,051,000. The year-ago result reflected the adoption of a new tax accounting rule involving a charge of ($1,354,000).
 Operating income increased to $730,000 for the second quarter and $1,401,000 for the six-month period, from $61,000 and $1,224,000, respectively, for the corresponding prior-year periods. Second quarter 1992 operating income was reduced by approximately $1,000,000 in special writedowns or charges and the six-month operating income for 1992 included both those charges and a non-recurring gain of $2,089,000 from that year's first fiscal quarter.
 "Republic Pictures continued the progress reflected in the first quarter and demonstrated both the great breadth of product flowing through our global distribution systems and the vitality of our extensive library in a world with an increasing demand for entertainment software, particularly in cable and home video," Goldsmith said.
 Television revenues of $8,931,000 in the second quarter included certain significant multiyear television licenses for "Bonanza." Prior year revenues of $9,301,000 included the network license fees from two television movies and one comedy series pilot. The one network television movie completed to date in 1993 ("Judgment Day: The John List Story"), for which Robert Blake was recently nominated for an Emmy Award) was delivered in the first quarter. That film, the second- quarter "Bonanza" licenses and increased product-flow to the worldwide television markets produced an increase in six-month television revenues to $15,071,000 from $13,087,000 a year ago.
 With regard to television production, Goldsmith said that Republic is in production on two network television movies it anticipates will be delivered in the third quarter.
 Video and theatrical revenues rose to $13,755,000 in the second quarter from $12,723,000 a year ago, primarily reflecting the U.S. home video release of the motion picture "Knight Moves" and the first full quarter of home video sell-through activity of The Hallmark Hall of Fame, with "Sarah, Plain and Tall" and "The Secret Garden."
 As recently announced, at the company's annual meeting on July 27, shareholders approved a recapitalization, resulting in one class of common stock traded on NASDAQ under the symbol RPIC. Shortly thereafter, the company obtained the $25 million proceeds from Blockbuster Entertainment Corp.'s earlier investment, which it used to repay all but $2.5 million of outstanding bank borrowings. The principal long-term use of the proceeds will be increased production and acquisition of film entertainment. Following the recapitalization and Blockbuster investment, the company now has approximately 7,500,000 shares of common stock issued and outstanding. The pending nature of these transactions resulted in an increase in weighted average shares, including common stock equivalents, on a fully diluted basis to 5,900,000 in the second quarter from 4,567,000 a year earlier and to 5,862,000 from 4,499,000 for the six-month periods.
 "In this quarter we continued to build upon our strategy of forming important product-related strategic alliances by establishing new relationships with the Children's Television Workshop (CTW) and Lumiere, both of which will deliver important product to us which we will start selling to U.S. home video later this year and in early 1994," Goldsmith commented.
 At the close of the second quarter, Republic announced its entry into the children's home video market with the signing of an eight-year licensing agreement with CTW for home video distribution rights to a broad selection of Emmy Award-winning television programming, including "The Electric Company," "Ghostwriter," "3-2-1 Contact" and "Square One TV's Mathnet."
 The company also announced recently that it had obtained long-term U.S. home video distribution rights for approximately 200 feature films from the Lumiere library, which includes Academy Award winners "One Flew Over The Cuckoo's Nest" and "Amadeus" plus "Highlander."
 Republic Pictures Corp. is a producer and acquirer of theatrical and television productions for its worldwide television, theatrical and home video distribution divisions and owns an extensive classic film and television library.
 Condensed Consolidated Statement of Operations
 Three Months Six Months
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Operating revenues:
 Television $8,931,000 $9,301,000 $15,071,000 $13,087,000
 Video and
 theatrical 13,755,000 12,723,000 22,277,000 22,964,000
 Total 22,686,000 22,024,000 37,348,000 36,051,000
 Operating expenses:
 Television 7,458,000 9,827,000 13,282,000 14,273,000
 Video and
 theatrical 13,594,000 10,948,000 20,874,000 20,649,000
 General and
 administrative 904,000 1,188,000 1,791,000 1,994,000
 Total 21,956,000 21,963,000 35,947,000 36,916,000
 Sale of video
 duplication facility --- --- --- 2,089,000
 Operating income 730,000 61,000 1,401,000 1,224,000
 Interest expense,
 net (296,000) (304,000) (693,000) (653,000)
 Income (loss) before
 taxes and change
 in accounting 434,000 (243,000) 708,000 571,000
 Provision for
 income taxes 179,000 (93,000) 297,000 218,000
 Income (loss) before
 change in
 accounting 255,000 (150,000) 411,000 353,000
 Cumulative effect on
 prior years of a
 change in accounting
 for income taxes --- --- --- (1,354,000)
 Net income (loss) $255,000 ($150,000) $411,000 ($1,001,000)
 Earnings per share
 -- primary:
 Earnings (loss)
 before change in
 accounting $.05 ($.03) $.08 $.08
 Cumulative effect of
 change in accounting --- --- --- (.30)
 Net income (loss) $.05 ($.03) $.08 ($.22)
 Weighted average
 shares 5,558,000 4,567,000 5,248,000 4,499,000
 Earnings per share
 -- fully diluted:
 Earnings (loss)
 before change
 in accounting $.04 ($.03) $.07 $.08
 Cumulative effect
 of change in
 accounting --- --- --- (.30)
 Net income (loss) $.04 ($.03) $.07 ($.22)
 Weighted average
 shares 5,900,000 4,567,000 5,862,000 4,499,000
 -0- 8/10/93
 /CONTACT: Rachel McCallister of Rachel McCallister & Associates, 213-939-5991, for Republic Pictures/

CO: Republic Pictures Corp. ST: California IN: ENT SU: ERN

MF-BP -- LA031 -- 1396 08/10/93 17:38 EDT
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Publication:PR Newswire
Date:Aug 10, 1993

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