Cineplex on the rise
Net income for the three months was $ 2.7 million, or 3 cents per share, despite a one-time charge of $ 7.3 million for discontinued operations. In comparison, the company last year posted a third quarter loss of $ 7.2 million, or 9 cents per share, including a $ 315,000 loss from discontinued operations.
Third quarter income from continuing operations was $ 10.1 million, or 9 cents per share, on revenues of $ 167 million compared with a loss from continuing operations of $ 6.9 million, or 8 cents per share, on revenues of $ 133 million in the same quarter of 1992.
Cash flow from continuing operations, excluding the net change in non-cash working capital, for the three-month period amounted to a net inflow of $ 18.1 million, as compared with a net inflow of $ 2.6 million for the corresponding period in 1992.
The company -- which operates 1,609 screens in 362 locations in North America -- noted that the one-time charge was a non-cash write-off whereby it relieved itself of its commitment to construct a multi-use commercial real estate project.
That project, which was begun by former management, would have included a substantial cash investment on the part of the company, as well as ongoing carrying costs of approximately $ 2 million per year. By doing so, the company shed the last non-theater vestige of the Garth Drabinsky era.
Allen Karp, president and CEO, said, "The decision to discontinue this project follows our strategy to focus on our core business, and eliminates future cash outflows associated with the project."
For the nine months ended Sept. 30, income from continuing operations was $ 910,000, or 1 cents per share, on revenues of $ 417 million, compared with a loss from continuing operations for the corresponding period in 1992 of $ 27 million, or 33 cents per share, on revenues of $ 393 million.
The nine-month net loss was $ 7.4 million, or 7 cents per share, after reporting a loss from discontinued operations of $ 8.3 million (including the third quarter charge). That compared to a net loss of $ 29 million, or 34 cents per share last year, after reporting a loss from discontinued operations of $ 1. 3 million.
Commenting on the results, Karp said: "Our improved financial results reflect increased attendance, improved concession sales and the continuation of our cost control program.
"The strong summer release schedule featuring such films as 'Jurassic Park,' 'The Fugitive,' 'Sleepless in Seattle,' 'The Firm' and 'In the Line of Fire' resulted in regular moviegoers coming more often and infrequent moviegoers -- people who have not been to a movie in years -- coming back."
Karp said the company was optimistic moving into the fourth quarter and new year.
