Summer B.O. boosts Loews' bottom line

Cash flow jumps 18%

By MARC GRASER

Record summer B.O. receipts and additional theaters helped produce an 18% surge in cash flow for Loews Cineplex Entertainment's second quarter, ended Aug. 31, the exhib said Thursday.

The New York- and Toronto-based Loews posted revenues of $303 million compared with $297 million a year ago.

Cash flow (earnings before interest, taxes, depreciation and amortization) was $66.7 million compared with $60.3 million, while net income was $16 million vs. $8.3 million in 1998.

"Our box office revenues tracked the record results experienced by the industry this summer," said Lawrence J. Ruisi, prexy and CEO of Loews Cineplex Entertainment.

He added that B.O. was driven by the addition of 52 screens and increased ticket prices, "partially offset by the disposition of 49 underperforming screens."

"We recognize that this is a challenging time in the exhibition industry," Ruisi said. "Our ability to operate and expand our circuit has enabled us to deliver increases in revenue and operating cash flow since the merger of Loews Theaters and Cineplex Odeon."

Loews operates 2,911 screens in 406 locations, primarily in major cities throughout the U.S., Canada and Europe under the Loews, Sony and Cineplex Odeon monikers.