Can anyone tell me how a company like Sony, loews, Carmike or any of the big theater chains values a "screen"? LUXY has 64 brand new ones in operation in California....at 5/8 of a dollar this company is selling at 4.3 million dollars, and it once sold for 70 million! I cant imagine that they are not an attractive buyout to one of the big boys....at this price a tag of $67,000/screen is what I come up with.....that seems ridiculously cheap....anyone know whats up? Below is the news they posted in Feb. refering to thier expansion plans.....
CinemaStar Luxury Theaters initiates aggressive theater expansion
program
SAN DIEGO (Feb. 25) BUSINESS WIRE -Feb. 25, 1997--CinemaStar Luxury
Theaters Inc. (NASDAQ:LUXY) today announced an aggressive theater
expansion program with plans to increase up to 157 the number of
screens it will offer theater goers in Southern California, Mexico and
Hawaii over the next 18 months.
Today's announcement involving CinemaStar's near term plans comes on
the heels of an earlier agreement in principle involving the company's
long term plans made with the J.H. Snyder Company for the development
of up to 300 new CinemaStar Ultraplex screens at major retail centers
to be developed in California and Nevada. If completed, the combined
expansion could result in CinemaStar having up to 35 theaters and
nearly 460 screens in operation in five years.
In 1997, CinemaStar has plans to open Ultraplex multi-screen theater
entertainment centers in Tijuana, Mexico; Guadalajara, Mexico; Jurupa,
San Bernardino, San Marcos, South Gate, and the Palm Springs area in
California; and Kona, Hawaii. The company also has plans to add five
more screens at its original multiplex, Mission Marketplace 8 in
Oceanside, Calif.
CinemaStar's expansion plans will require it to obtain significant debt
or equity financing to complete its expansion.
Last week, CinemaStar announced a non-binding agreement in principle
with J.H. Snyder Company, one of California's leading commercial real
estate developers, involving the proposed development of Ultraplex
multi-screen theater complexes in major retail entertainment centers to
be developed in California and Nevada over the next five years.
Completion of the agreement is subject to negotiation of a definitive
agreement and various other conditions. An initial site is targeted for
opening by 1998.
"This is the most exciting growth year in CinemaStar's history, since
we are expanding to Mexico and Hawaii, totally new markets for us, as
well as other key areas in Southern California. This is part of our
overall strategy to capitalize on the industry's active film release
schedule and underserved markets that we have targeted," said John
Ellison Jr., president and chief executive officer.
"Our plan continues to be the development of luxury theater complexes
in those areas where there is a need to fulfill the viewing public's
demand for a quality film-going experience."
"We are particularly excited about the opening of our new theaters in
Tijuana in April and Guadalajara planned for June. CinemaStar's Mexican
subsidiary, CinemaStar Luxury Theaters S.A. de C.V., is developing a
10-screen theater in Tijuana, and a 12-screen complex in Guadalajara.
They will contain all the luxury features and amenities provided by
CinemaStar in the United States, including Lucas THX digital sound,
top-quality projection systems, high-back and reclining chairs and
expanded legroom between seat rows in all auditoriums.
"Our Mexico theaters will be the first in Latin America to be
completely equipped with the LucasFilm THX sound system and will be the
first to be constructed using a CinemaStar luxury theater concept. We
are well positioned to expand in Mexico where there is a lack of
quality screens in particular and a low screen-to-population ratio in
general throughout that country," Ellison said.
Ellison also noted that the company's expansion in Kona, Hawaii fits in
well with its overall strategy to achieve a dominant market position as
the sole or leading exhibitor in a targeted underserved area.
"Being the exclusive or the leading exhibitor in these areas gives us
the opportunity to select the most desirable films and negotiate more
effectively with movie distributors," Ellison added. "We feel that,
with the success of our expansion efforts, with higher revenue and a
focused program to reduce costs, we can improve our bottom line."
CinemaStar Luxury Theaters, founded in 1989, currently operates seven
first-run movie theaters, with a total of 64 screens in Southern
California. CinemaStar theaters feature high-quality projection and
sound capabilities, including LucasFilm THX Stereo Surround Sound
environment system in most auditoriums, along with luxury amenities
such as high-back reclining seats and extra-wide aisles between seat
rows. -0-
The information contained in this press release contains certain
forward-looking statements that involve risk and uncertainties, such as
the statements of the company's plan, objectives, expectations and
intentions. The company's actual results could differ materially from
those indicated by such statements as a result of various factors,
including those discussed in the company's Form 10-KSB and Form 10-QSB
on file with the SEC.
--30--ap/sf*
CONTACT: CinemaStar Luxury Theaters Inc.
John Ellison Jr. or Alan Grossberg, 619/630-2011
or
Pondel Parsons & Wilkinson
Michael Pollock/Craig Parsons, 310/207-9300
KEYWORD: CALIFORNIA NEVADA
INDUSTRY KEYWORD: ENTERTAINMENT REPEATS: New York 212-752-9600 or
800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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