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 LOS ANGELES, Oct. 29 /PRNewswire/ -- Republic Pictures Corp. (NASDAQ: RPIC) recorded net income of $713,000, or $0.10 per share, on revenues of $24,140,000, for the third quarter ended Sept. 30, 1993, as compared with net income posted a year ago of $160,000, or $0.04 per share, on revenues of $19,651,000, it was announced today by Russell Goldsmith, chairman and chief executive officer.
 For the nine months ended Sept. 30, 1993, the company reported net income of $1,124,000, or $0.18 per share, on revenues of $61,488,000, as compared with a year-ago loss of ($841,000), or ($0.19) per share, on revenues of $55,702,000. The year-earlier nine-month loss reflected the adoption of a new tax accounting rule involving an after-tax charge of ($1,354,000).
 Operating income increased to $1,312,000 for the third quarter and $2,713,000 for the nine-month period, from $571,000 and $1,795,000, respectively, a year earlier.
 "Republic Pictures' strong revenue and income increases for this quarter reflected the company's continuing growth in U.S. Home Video sell-through sales plus two new television productions and two new U.S. cable television license agreements that occurred in the quarter," Goldsmith said. "Comparing this quarter to last year's quarter, we also benefited from a much-lower interest expense as a result of Republic now being nearly debt-free and the absence of a significant, new financial reserve."
 Video and theatrical revenues increased to $14,368,000 from $11,718,000 in the year-ago third quarter. This increase was a result of continuing U.S. Home Video sell-through sales for The Hallmark Hall of Fame ("The Secret Garden" and "Sarah: Plain and Tall") and initial sales under new distribution agreements for the Children's Television Workshop ("Ghostwriter" and "Basil Hears a Noise") and the Lumiere film library ("Amadeus" and "One Flew Over The Cuckoo's Nest"). The company also had increased sales for its classic motion picture "It's a Wonderful Life" following the company's recent announcement concerning its exclusive rights to that film. Both third quarters included a number of new feature films released to the video rental market, including "ShadowHunter" and "Bounty Tracker" this quarter.
 Television revenues for the third quarter also increased, to $9,772,000 from $7,933,000 a year earlier, reflecting new multiyear cable licenses for "Beauty and The Beast" and "The High Chaparral."
 Both third quarters included network license fees for the delivery of two new television movies. In the current third quarter Republic Pictures Productions Inc. delivered "Final Appeal" for NBC and "The Conviction of Kitty Dodds," which will be broadcast on CBS on Nov. 2 at 9 p.m.
 As previously announced, during the third quarter the company completed its recapitalization and received the proceeds from Blockbuster Entertainment Corp.'s investment in Republic Pictures through the acquisition of 2,500,000 shares of common stock. These transactions resulted in an increase in weighted average shares, including common stock equivalents, on a fully diluted basis to 7,213,000 in the third quarter from 4,599,000 a year earlier, and to 6,201,000 from 4,532,000 for the nine-month periods. As a result of both these transactions and the recent issuance of additional shares upon the exercise of stock options, currently there are approximately 7,750,000 shares of common stock issued and outstanding.
 As announced on Sept. 13, the company and Spelling Entertainment Group Inc. have entered into an agreement in principle, whereby Spelling would acquire all of the company's outstanding shares of common stock for $13 per share. Consummation of the merger is subject to, among other things, approval by a special committee of independent directors of the company, execution of a definitive agreement and approval by the board of directors and the shareholders of the company. The merger is expected to be completed by late January 1994.
 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
 (In thousands, except per share data)
 Three Months Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Operating revenues:
 Television $9,772 $7,933 $24,843 $21,020
 Video and theatrical 14,368 11,718 36,645 34,682
 Total 24,140 19,651 61,488 55,702
 Operating expenses:
 Television 8,744 7,308 22,026 21,581
 Video and theatrical 13,197 10,863 34,071 31,512
 General and administrative 887 909 2,678 2,903
 Total 22,828 19,080 58,775 55,996
 Sale of video duplication
 facility --- --- --- 2,089
 Operating income 1,312 571 2,713 1,795
 Interest expense, net (124) (305) (817) (958)
 Income before taxes and
 change in accounting 1,188 266 1,896 837
 Provision for income taxes 475 106 772 324
 Income before change in
 accounting 713 160 1,124 513
 Cumulative effect on prior
 years of a change in accounting
 for income taxes --- --- --- (1,354)
 Net income (loss) $713 $160 $1,124 ($841)
 Earnings per share -- primary:
 Earnings before change in
 accounting $.10 $.04 $.19 $.11
 Cumulative effect of change
 in accounting --- --- --- (.30)
 Net income (loss) $.10 $.04 $.19 ($.19)
 Weighted average
 shares (000s) 7,213 4,599 5,960 4,532
 Earnings per share
 -- fully diluted:
 Earnings before change
 in accounting $.10 $.04 $.18 $.11
 Cumulative effect of change
 in accounting --- --- --- (.30)
 Net income (loss) $.10 $.04 $.18 ($.19)
 Weighted average
 shares (000s) 7,213 4,599 6,201 4,532
 -0- 10/29/93
 /CONTACT: Rachel McCallister of Rachel McCallister & Associates, 213-939-5991/

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

JB-EH -- LA024 -- 8581 10/29/93 14:26 EDT
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Publication:PR Newswire
Date:Oct 29, 1993

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