CinemaStar Announces Fiscal Third Quarter Results
SAN DIEGO--(BUSINESS WIRE)--Jan. 25, 1999--CinemaStar Luxury
Theaters, Inc. (NASDAQ: LUXY) 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), today
announced results of operations for its fiscal 1999 third quarter
ended December 31, 1998.
For its fiscal third quarter ended December 31, 1998, the Company
reported that revenues increased 7.7% to $6.8 million compared to the
same period of the prior year. The Company also reported a net loss of
$639,930, or ($0.17) per common share for the fiscal 1999 third
quarter, a significant improvement from a net loss of $3,981,649, or
($2.51) per common share, for the same period of the prior year.
Theater cash flow, a common measure of performance for motion picture
theaters, more than tripled to $932,555, compared to $279,817 for the
same period of the prior year.
For its nine months ended December 31, 1998, the Company reported
that revenues increased 17.0% to $22.2 million compared to $18.9
million for the same period of the prior year. The Company reported a
net loss of $880,572 or ($0.24) per common share for the nine months
ended December 31, 1999, compared to a net loss of $5,818,693, or
($4.54) per common share, for the same period of the prior year.
Theater cash flow for the nine month period was $3,369,432 compared
with $1,683,006 in the prior nine month period.
"Our third quarter financial performance improved significantly
compared to last year," said Jack R. Crosby, Chairman and Chief
Executive Officer of CinemaStar. "We achieved this improvement despite
the lack of blockbuster hits comparable to last year's runs of
Titanic, Good Will Hunting, and As Good As It Gets."
Mr. Crosby continued, "This is a product-driven industry and we
are dependent on the release of films with commercial appeal. We are
not anticipating a significant improvement in product until the first
quarter of fiscal 2000. Until such time as the product flow improves,
we will continue to maximize operating efficiences while optimizing
our customers moviegoing experience."
Mr. Crosby concluded, "The Company continues to make significant
progress in its plan to execute a transition into a megaplex
environment. Recently, site work has commenced for the construction of
our new 20-screen megaplex in San Bernardino, CA and we are currently
evaluating several new opportunities in Mexico and the U.S. We are in
a strong financial position and we remain committed to building the
Company through the development of 16-to-24 screen megaplexes."
As of December 31, 1998, CinemaStar had a much improved balance
sheet, highlighted by cash and cash equivalents of $2.7 million and a
virtually untapped $15 million Revolving Credit Facility.
CinemaStar theaters provide the optimal motion picture experience
by providing high-quality projection and sound capabilities, including
LucasFilm THX Stereo Surround Sound environment systems, luxury
seating, and extra-wide aisles. 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.
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CINEMASTAR LUXURY THEATERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
December 31, December 31,
1998 1997 1998 1997
REVENUES:
Admissions $ 4,663,484 $ 4,512,741 $15,252,824 $13,104,417
Concessions 1,955,625 1,668,318 6,408,881 5,457,313
Other operating
revenues 168,000 121,471 503,181 379,487
TOTAL REVENUES 6,787,109 6,302,530 22,164,886 18,941,217
COSTS AND EXPENSES:
Film rental and
booking costs 2,474,677 2,495,583 8,153,080 7,432,200
Cost of concession
supplies 328,958 639,889 1,382,174 1,975,661
Theater operating
expenses 3,050,919 2,887,241 9,260,200 7,850,350
Termination fees
- concession
lease agreement -- 1,859,352 -- 1,859,352
Selling, general
and administrative
expenses 897,366 1,395,909 2,382,818 3,182,021
Depreciation and
amortization 613,969 473,750 1,727,724 1,460,105
TOTAL COSTS AND
EXPENSES 7,365,889 9,751,724 22,905,996 23,759,689
OPERATING LOSS (578,780) (3,449,194) (741,110) (4,818,472)
OTHER INCOME (EXPENSE):
Interest expense (91,442) (324,803) (246,574) (693,451)
Non-cash interest
expense -- (221,750) -- (328,750)
Interest income 30,292 14,098 108,712 23,580
TOTAL OTHER
EXPENSE (61,150) (532,455) (137,862) (998,621)
LOSS BEFORE
PROVISION FOR
INCOME TAXES (639,930) (3,981,649) (878,972) (5,817,093)
PROVISION FOR
INCOME TAXES -- -- (1,600) (1,600)
NET LOSS $(639,930) $(3,981,649) $(880,572) $(5,818,693)
BASIC AND DILUTED
NET LOSS PER SHARE $(0.17) $(2.51) $(0.24) $(4.54)
WEIGHTED AVERAGE
SHARES 3,864,986 1,584,963 3,737,725 1,280,384
CINEMASTAR LUXURY THEATERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
December 31,
1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $2,746,470
Prepaid expenses 300,299
Other current assets 273,281
TOTAL CURRENT ASSETS 3,320,050
Property and equipment, net 11,750,604
Other assets 964,476
TOTAL ASSETS $16,035,130
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current portion of long-term
debt and capital lease
obligations $ 232,441
Accounts payable 1,208,124
Accrued expenses 800,834
Deferred revenue 528,436
TOTAL CURRENT LIABILITIES 2,769,835
Long-term debt and capital
lease obligations,
net of current portion 1,819,490
Deferred rent liability 3,734,839
TOTAL LIABILITIES 8,324,164
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value;
authorized shares - 60,000,000;
issued and outstanding shares
- 3,864,986 22,628,670
Additional paid-in capital 3,626,152
Accumulated deficit (18,543,856)
TOTAL STOCKHOLDERS' EQUITY 7,710,966
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $16,035,130
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