Monday October 19, 8:29 am Eastern Time
Company Press Release
CinemaStar Announces Record Second
Quarter Results
SAN DIEGO, Calif.--(BUSINESS WIRE)--Oct. 19, 1998--CinemaStar Luxury Theaters, Inc.
(NASDAQ:LUXY - news) which owns and operates eight first run motion picture theaters in
southern California (7 theaters with 69 screens) and Tijuana, Mexico (one theater with 10 screens),
announced results of operations for the second quarter ended September 30, 1998.
For the second quarter ended September 30, 1998, the Company reported that revenues increased
20% to $8.3 million compared to the same period of the prior year. For the quarter, the Company
reported net income of $218,092 compared to a net loss of $958,147 for the same period of the
prior year. Operating income before depreciation and amortization, a common measure of
performance for motion picture theaters, increased to $838,939 compared to a loss of $138,940 for
the same period of the prior year.
''Our strong performance in the second quarter resulted from the successful implementation of new
managerial and financial initiatives,'' said Jack R. Crosby, Chairman and Chief Executive Officer of
CinemaStar. ''Theater level cash flow, defined as operating income before selling, general and
administrative costs, and depreciation and amortization, was 20% of revenues, or $1.7 million. This
compares very favorably to the same period last year, when theater cash flow was 11% of
revenues.''
Crosby concluded, ''Our new management team has moved aggressively to take control of our
existing theater operations. We operate a cash business, and tight financial controls are of paramount
importance. At the same time, our reputation among customers is only as good as their last
experience at our theaters. Therefore, we will continue to focus on the minute details that make the
difference between a pleasant trip to the movies and a great theater experience. Our goal over the
next few years is to capitalize on positive demographic trends and industry consolidation. Several
projects are under development which represent positive steps towards the fulfillment of this goal.''
CinemaStar theaters feature high-quality projection and sound capabilities, including LucasFilm THX
Stereo Surround Sound environment systems, along with luxury amenities such as high-back reclining
seats and extra-wide aisles between seat rows. Further information may be obtained from the
Company's website: www.cinemastar.com.
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. |
