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REPUBLIC PICTURES CORP. REPORTS SECOND QUARTER RESULTS

 REPUBLIC PICTURES CORP. REPORTS SECOND QUARTER RESULTS
 LOS ANGELES, Aug. 14 /PRNewswire/ -- Republic Pictures Corp. (NASDAQ: RPICA) achieved improved operating results for the second fiscal quarter and the first half of 1992, it was announced today by Russell Goldsmith, chairman and chief executive officer.
 For the quarter ended June 30, 1992, consolidated revenues increased 85 percent to $22,024,000, from $11,893,000 in 1991. In the current year's second quarter, the company recorded operating income of $61,000 and a net loss of $166,000 (4 cents per share), as compared with an operating loss of $519,000 and a net loss of $355,000 (8 cents) in the quarter ended June 30, 1991.
 For the six-month periods ended June 30, consolidated revenues amounted to $36,051,000 in 1992 as compared with a record $40,302,000 in 1991. Operating income for the six months ended June 30, 1992 increased to $1,224,000 from $1,182,000 in the first half of 1991. Net income increased to $328,000 (7 cents) in 1992 from $93,000 (2 cents) in 1991.
 The company's improved performance in 1992 is largely the result of continued growth at Republic Pictures Home Entertainment.
 Video and theatrical revenues, which principally represent U.S. home video sales, increased 135 percent to $12,723,000 for the fiscal quarter ended June 30, 1992, from $5,407,000 in 1991. For the six- month periods, revenues increased 139 percent to $22,964,000 in 1992 from $9,593,000 in 1991. This growth primarily reflects a greater number of new home video releases arising from the company's recent distribution agreements with The Hallmark Hall of Fame ("Foxfire" and "Caroline?" in the second quarter) and Overseas Film Group, as well as feature film acquisitions (including "Scanners III" and "Cafe Romeo") and the Republic library ("40th Anniversary Edition of 'The Quiet Man,'" etc.). Also contributing to the overall increase in video and theatrical revenues was the initial revenue from the new theatrical motion pictures distributed by Republic Pictures International ("Amityville 1992" and "Dark Horse").
 Television revenues increased 43 percent in the second quarter, to $9,301,000 in 1992 from $6,486,000 in 1991. The current year's second quarter included the network license fees for two television movies delivered during the quarter ("Child of Rage" for CBS and "Somebody's Daughter" for ABC) and one comedy series pilot (which was not ordered as a series) as well as worldwide revenues for the company's other recent television productions and library titles. The prior year's second quarter did not include any new network productions. Television revenues decreased for the six-month period, to $13,087,000 in 1992 from $30,709,000 in 1991, primarily because the first quarter of 1991 included network license fees for two miniseries and one movie; whereas the first quarter of 1992 did not include any new productions.
 Operating income in each of the first two quarters of 1992 was affected by certain non-recurring or otherwise distinct events. The first quarter included a gain upon sale of the company's videocassette duplication facility in the amount of $2,089,000, as part of a new third-party duplication arrangement under which the company is beginning to achieve cost-savings and service efficiencies. Conversely, the second quarter included a number of charges and credits, which in the aggregate reduced operating income by approximately $1,000,000. These second quarter items included the write-off of remaining costs associated with comedy series development, recognition of certain previously deferred fees based upon a recent agreement to amend the company's television joint venture agreement with United Artists Entertainment Inc. ("UAE") and expenses related to the company's proposal to acquire assets of Orion Pictures Corp.
 On May 7, 1992, the company announced that it was making a proposal to merge with Orion Pictures Corp., which is currently in a Chapter 11 bankruptcy proceeding. The company's proposal was not accepted, and, in response to Orion's subsequently announced intention to adopt a plan of reorganization financed by its current majority shareholder, the company has suspended its activities in this area. General and administrative expenses for the three months ended June 30, 1992 included a charge of $250,000, representing the company's professional fees and other related expenses to date.
 The company also announced today that it has entered into an agreement in principle with Tele-Communications Inc. ("TCI") to amend their joint venture agreement regarding Republic Pictures Television ("RPT"), which was originally established in 1989 between the company and UAE to finance all of the company's television development and production activities through 1993. Following TCI's recent merger with UAE, the parties entered into the current agreement, which provides for the company's purchase of TCI's interest in RPT within three years, at a price and on terms to be negotiated. Retroactive to Jan. 1, 1992, TCI will be relieved of its joint funding obligations to RPT, in exchange for which the company will receive priority recoupment of its additional investment and accelerated recoupment of certain previously deferred fees. As a result of the company's greater financial interest in RPT, beginning in 1992, TCI's share of the venture has been reclassified in the company's income statement from minority interest to television operating results. The company, which was an active producer of television programming prior to RPT, does not anticipate any material adverse effect on either its television operations or its financial position as a result of this amendment. In addition to the two network television movies delivered in the second quarter, the company is in post production on two more ("Born Too Soon" for NBC and "Overkill" for CBS) and is in development on a number of additional potential future movies and miniseries.
 Republic Pictures Corporation is a producer and worldwide distributor of television programs, including the winners of both the Emmy and Golden Globe Awards for Best Movie/Miniseries of 1991 ("Separate But Equal" and "One Against the Wind"). The company also acquires theatrical and television productions for its worldwide television, theatrical and home video distribution operations. Republic is well-known for its extensive library of classic films, its Emmy-winning series "Beauty and the Beast" and such other popular off-network series as "Bonanza."
 REPUBLIC PICTURES CORP. AND SUBSIDIARIES
 Condensed Consolidated Statement of Income
 (unaudited)
 Three months ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 Operating
 revenues:
 Television $9,301,000 $6,486,000 $13,087,000 $30,709,000
 Video and
 theatrical 12,723,000 5,407,000 22,964,000 9,593,000
 Total 22,024,000 11,893,000 36,051,000 40,302,000
 Operating
 expenses:
 Television 9,827,000 6,207,000 14,273,000 27,249,000
 Video and
 theatrical 10,948,000 5,424,000 20,649,000 10,375,000
 General and
 adminis-
 trative 1,188,000 781,000 1,994,000 1,496,000
 Total 21,963,000 12,412,000 36,916,000 39,120,000
 Sale of video
 duplication
 facility --- --- 2,089,000 ---
 Operating
 income
 (loss) 61,000 (519,000) 1,224,000 1,182,000
 Other income
 and expenses:
 Interest
 (expense)
 income, net (304,000) (300,000) (653,000) (679,000)
 Minority
 interest in
 television
 venture --- 199,000 --- (337,000)
 Income (loss)
 before taxes (243,000) (620,000) 571,000 166,000
 Provision
 (benefit) for
 income taxes (77,000) (265,000) 243,000 73,000
 Net income
 (loss) ($166,000) ($355,000) $328,000 $93,000
 Earnings (loss)
 per common
 share ($.04) ($.08) $.07 $.02
 Weighted average
 shares
 outstanding 4,567,000 4,363,000 4,499,000 4,351,000
 -0- 8/14/92
 /CONTACT: David M. Kirchheimer, senior VP and CFO of Republic Pictures, 310-302-1637; or Rachel McCallister of Rachel McCallister & Associates, 213-939-5991, for Republic Pictures/
 (RPICA) CO: Republic Pictures Corp. ST: California IN: ENT SU: ERN


KJ-LS -- LA007 -- 9850 08/14/92 08:02 EDT
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