CinemaStar Luxury Theaters Reports Strong First Quarter Revenue Growth
SAN DIEGO (Aug. 15) BUSINESS WIRE -Aug. 15, 1997--CinemaStar Luxury
Theaters Inc. (Nasdaq:LUXY) Friday reported revenues of $5.8 million
for its first fiscal quarter ended June 30, 1997, up 35 percent from
$4.3 million a year ago.
The increase reflects significant growth in theater attendance from a
greater number of screens in operation, including the company's newly
expanded 13-screen Ultraplex theater in Oceanside, Calif.,and two new
Ultraplex entertainment centers in Riverside, Calif.
However, the company reported a first quarter net loss of $878,897,
compared with a net loss of $993,685 for the corresponding quarter last
year. On a per-share basis, calculated on 25 percent more shares
outstanding, the company's net loss for the quarter was $0.11 per
share, compared with $0.16 per share a year ago.
For the first quarter, admissions revenue increased 32 percent to
$3,915,058, compared with $2,963,529. Concessions revenue rose 43
percent to $1,719,006, vs. $1,202,922 a year ago.
John Ellison Jr., president and chief executive officer, noted that the
number of new screens in operation for the first quarter has increased
to 64 from 44 at the end of the fiscal year 1996, reflecting a year of
expansion in underserved markets. Five additional screens were added
two days after the end of the quarter, bringing the total to 69
screens. Ellison added that cash flow from operating activities was a
positive $170,000.
"Our goal 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 filmgoing experience," Ellison said. Separately,
the company announced that it is continuing active discussions with a
group of investors led by Rust Capital Ltd., an Austin, Texas venture
capital firm, to complete an agreement allowing Rust to purchase newly
issued shares of CinemaStar's common stock for $15 million. A previous
letter of intent with Rust has expired, but the parties are negotiating
an agreement. No assurance can be given that an agreement will be
reached.
CinemaStar Luxury Theaters, founded in 1989, operates seven first-run
movie theaters, with a total of 69 screens in Southern California.
CinemaStar theaters feature high quality projection and sound
capabilities, including LucasFilm THX sound environment systems 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 news 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/A on file with the Securities and Exchange Commission. -0-
CINEMASTAR LUXURY THEATERS
Statement of Income
Three Months Ended Year Ended
June 30, March 31,
(unaudited) (audited)
1997 1996 1997 1996
Total revenues $5,752,733 $4,260,403 $19,631,621 $11,524,740
Total costs and
expenses 6,451,314 4,128,503 21,201,275 11,863,275
Operating loss (698,581) 131,900 (1,569,654) (338,535)
Other income (expense):
Non-cash interest
expense related
to convertible
debentures -- (977,568) (2,048,997) --
Interest expense -- -- (678,041) (400,966)
Other expense (186,869) (150,661) (43,018) --
Interest income 6,553 2,644 36,940 102,516
Total other expense (180,316) (1,125,585) (2,733,116) (298,450)
Loss before provision
for income taxes (878,897) (993,685) (4,302,770) (636,985)
Provision for income
taxes -- -- (1,600) (1,600)
Net loss $ (878,897) $ (993,685) $ (4,304,370) $ (638,585)
Net loss per common
share $ (.11) $ (.16) $ (.61) $ (.10)
Weighted average number of
common shares and share
equivalents
outstanding 7,790,747 6,254,000 7,099,000 6,200,000
--30--RJ/la* ABC/la
CONTACT: CinemaStar Luxury Theaters Inc., San Diego
John Ellison Jr. or Alan Grossberg, 619/630-2011
or
Pondel Parsons & Wilkinson
Craig Parsons/Michael Pollock, 310/207-9300
KEYWORD: CALIFORNIA TEXAS
INDUSTRY KEYWORD: ENTERTAINMENT EARNINGS Today's News On The Net -
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