Clearview Investors:
Clearview Cinema Group Reports 1997 Operating Results
Revenues Increase 134% Quarter-To-Quarter, 111% Year-To-Year EBITDA
Increases 171% Over 1996 Company Performance Surges Past Year-End
Estimates
Revenues for the fourth quarter of 1997 rose to $6,632,050, an increase of 134% compared with $2,828,847 for the comparable quarter of 1996. The Company reported a net loss of $313,782 or
$0.15 per share for the fourth quarter of 1997 compared with a net loss of $85,397 or $0.10 per share for the comparable quarter of 1996.
Revenues for the year ended December 31, 1997, rose to $17,261,977, an increase of 111%,compared with $8,197,974 for the prior year. For the year ended December 31, 1997, the Company reported a net loss of $1,328,938 or $1.03 per share compared with a net loss of $218,328 or $0.29 per share for the prior year.
For the fourth quarter, EBITDA (earnings before interest, taxes, depreciation and amortization), a key industry measure, increased to $1,136,690, or $0.53 per share, a gain of 189%, compared
with $393,560, or $0.47 per share, for the comparable quarter of 1996. For the year ending December 31, 1997, EBITDA increased to $2,737,644, or $2.09 per share, a gain of 171%, compared with $1,008,401, or $1.36 per share, for the prior year.
The motion picture exhibition industry also uses theater level cash flow (total revenues less film rental
and booking costs, cost of concessions and theater operating expenses) as a key measure of financial performance. For the fourth quarter of 1997, the company achieved theater level cash flow of $1,620,756, or $0.76 per share, an increase of 182% compared with $574,646, or $0.69 per share, for the comparable quarter of 1996. For the year ended December 31, 1997, theater level cash flow was $3,868,499, or $2.95 per share, an increase of 142% compared with $1,598,223,or $2.15 per share, for the prior year.
''Clearview has effectively doubled revenues and more than doubled EBITDA for the year,''according to A. Dale Mayo, Clearview's Chairman and CEO. ''Most of that growth was directly attributed to continuation of our consolidation strategy. During 1997, Clearview increased its circuit to 31 theatres and 148 screens. At present, we operate 37 theatres with 169 screens. Certain corporate activities, including our IPO in August of 1997, deferred some acquisitions. In both the
third and fourth quarters, we consummated major acquisitions near the end of each period. Front-loaded charges associated with theatre takeovers did increase expenses somewhat while revenue from these acquisitions was only realized for a portion of each period,'' Mayo said.
''Film product in our theatres during the fourth quarter positively impacted attendance with Oscar winning titles including ''Titanic,'' ''As Good As It Gets,'' ''Good Will Hunting'' and ''LA Confidential'' performing very well during year-end and into the first quarter of 1998,'' Mayo said.
''The extended duration of runs for these and other films has meant lower film rental costs for Clearview. The early part of 1998 already includes a number of excellent commercial and independent releases. Distributors have scheduled additional releases that I believe will play successfully in Clearview's markets throughout the Spring.''
Mayo continued, ''I am pleased to note that the Company was successful in reducing corporate overhead expense as a percentage of revenue during the year. As we grow, I expect our concession margins to improve as well. General and administrative expenses will continue to be managed carefully. Recent additions to corporate overhead have been implemented specifically to reduce costs in film buying and ofessional services. We have also made a commitment to focus resources
on cultivating non-box office revenue programs, employee training and quality initiatives. It is difficult to measure general and administrative on a quarter-by-quarter basis, since management capacity must be added in 'plateaus' in anticipation of future growth. Nonetheless, we aspire to have one of the lowest overhead ratios in the industry.
''The Company has expanded its credit facility with Provident Bank to approximately $42 million since it was initiated last Fall and is energetically pursuing other avenues of financing, including a debt offering, which will enable expansion to continue at a rapid pace during 1998 and 1999,'' Mayo said. ''Implementation of our plans is timely as tremendous opportunities now exist for
acquiring independent theatres as well as cinemas operated by the very large exhibitors who are engaged in highly publicized restructuring initiatives. Our acquisition pipeline is significant, with a target of once again more than doubling our screen count and revenues during 1998,'' Mayo said.
Clearview Cinema Group, Inc. is a consolidator and operator of community-based movie theaters, primarily in affluent suburban communities in the New York/New Jersey metropolitan area.
Clearview theaters offer a mix of first-run commercial, art and family oriented films targeted primarily at sophisticated moviegoers and families with younger children.
NOTE: Except for historical statements, this press release contains forward-looking statements that may involve a number of risks and uncertainties. Future results may differ materially due to factors
including future levels of consumer spending, the strength of the motion picture industry, the Company's ability to secure additional financing and other risks detailed from time to time in statements and reports which Clearview Cinema Group, Inc. has filed with the curities and Exchange Commission. In order to fund its plans for continued growth, Clearview will require additional debt financing, which it currently is seeking, and may need to seek additional equity
financing. Failure to obtain such financing could significantly curtail its acquisition activities and
reduce its planned capital expenditures.
Clearview Cinema Group, Inc.
Financial Information
Three Months Ended,
December 31, 1996 December 31, 1997
Revenues $2,828,847 $6,632,050
Net Income (loss) $ (85,397) $ (313,782)
Basic and diluted loss
- Per Share $ (0.10) $ (0.15)
Other Operating Data (a):
Theater level cash flow $ 574,646 $1,620,750
Theater level cash flow
- Per Share $ 0.69 $ 0.76
EBITDA $ 393,560 $1,136,690
EBITDA - Per Share $ 0.47 $ 0.53
Twelve Months Ended,
December 31, 1996 December 31, 1997
Revenues $ 8,197,974 $17,261,977
Net income (loss) $ (218,328) $(1,328,938)
Basic and diluted loss
- Per Share $ (0.29) $ (1.03)
Other Operating Data (a):
Theater level cash flow $ 1,598,223 $ 3,868,499
Theater level cash flow
- Per Share $ 2.15 $ 2.95
EBITDA $ 1,008,401 $ 2,737,644
EBITDA - Per Share $ 1.36 $ 2.09
Note: (a) Theater level cash flow represents total revenues less film rental and booking costs, cost
of concessions and theater operating expenses. EBITDA represents earnings before interest, taxes,
depreciation and amortization; financial measures commonly used in the motion picture exhibition
industry. Per share results have been computed based on weighted average common shares
outstanding of 832,800 and 2,141,013 for the Quarters ending 12/31/96 and 12/31/97, and
744,038 and 1,312,865 for the years ending 12/31/96 and 12/31/97, respectively.
SOURCE: Clearview Cinema Group, Inc.
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