CinemaStar Announces March 31, 2000 Year End Results
SAN DIEGO--(BUSINESS WIRE)--July 12, 2000--CinemaStar Luxury Theaters Inc. (Nasdaq:LUXY - news) today announced its results of operations for its fiscal year ended March 31, 2000.
For the twelve months ended March 31, 2000, the company reported total revenues of $28.0 million compared to $27.7 million for the twelve month period ended March 31, 1999. The company's net loss for the year, which included a $2.0 million charge to net income for the impairment of certain theater assets, was $5.2 million or ($1.34) per common share. Excluding the impairment charge, the company had a net loss for the year of $3.2 million, or ($0.83) per common share, compared to a net loss of $1.6 million or ($0.42) per common share for 1999. Theater cash flow, a common measure of performance for movie exhibitors, was $3.3 million or 11.8% of total revenues for the twelve months ended March 31, 2000, compared to theater cash flow of $4.2 million or 15.3% of total revenues for the same period in the prior year.
Jack Crosby, co-chief executive officer of CinemaStar, said, ``We are making solid progress in all areas of our tactical focus: reducing overhead, tuning operations and improving the balance sheet. Strategic goals include prudent growth in Northern Mexico, new developer relationships in the U.S., and enhanced customer information systems.''
The company completed the sale of $3,500,000 of common stock to its principal shareholder, SCP Private Equity Partners L.P. The sale resulted in the issuance of an additional 2.4 million shares of the company's common stock. The proceeds from the sale of the common stock have been, or will be used to fund the company's construction obligations related to the new San Bernardino theater and the Mission Grove theater expansion, to reduce the company's borrowings under its revolving credit facility, and to meet seasonal working capital needs.
The company also successfully negotiated an amendment to its revolving credit facility with its senior lender in March. The amendment establishes new cash flow and fixed charge coverage covenants that are more consistent with the company's expected future financial performance.
On April 14, 2000, the company completed the expansion of its Mission Grove theater from 14 to 18 screens. The four screen expansion features stadium seating, high-back love seats, retractable cup holders, and state-of-the-art projection and sound equipment. The expansion, which encompasses approximately 20,000 square feet, includes a full service concession stand in addition to the four new stadium auditoriums. The expansion of the Mission Grove complex further solidifies CinemaStar's position as the premier theater operator in Riverside County.
The company has signed an agreement to sell its six-screen complex on Third Avenue in Chula Vista, Calif. The prospective purchaser is the World Harvest Christian Center (``the Church''), a community-oriented, local church which has been based in Chula Vista since 1987, and which has over 500 members in its congregation. The proposed sale price is $1.7 million. The Church is currently performing its due diligence, and has applied to the City of Chula Vista for a conditional use permit which will be necessary for the Church to operate at that location. The company anticipates closing the sale in either the late summer or early fall of this year. |
