a profit for 1993

cineplex Odeon is back in black and has big plans to build and buy in 1994. Last year’s stats show the exhibitor/distributor in good standing, with admission revenues up 4.2% over ’92 and total revenues up 5.3% to us$546.2 million in 1993 from us$518.7 million a year earlier.

A public bond offering of us$200 million (set for completion at the end of June) and us$180 million in new bank credit lines are part of a new financing structure which will be used to reduce a us$332 million bank debt and acquire four new theaters (representing 31 screens) in 1994 and build 24 new theaters (198 screens) in 1995, all at a cost of less than us$50 million. Cineplex also plans to modify its existing theaters at a cost of about us$7.5 million in order to increase capacity.

At the company’s annual meeting earlier this month, president Allen Karp emphasized acquisitions and mergers, pointing out that ‘the top 10 exhibitors in 1986 accounted for only 27% of North American screens. In 1993, they accounted for 47% of such screens.’

Karp pegged theatrical exhibition as ‘the engine that drives the train’ of all forms of exhibition and said theatrical exhibition ‘alone establishes the value of a film for all ancillary payoff.’ Attendance was up 2.8% this year (for the fourth straight year) and concession revenues increased by 10.4%.

In terms of what product the company has to look forward to, Karp noted the seven major studios are set to release 184 pictures in 1994, compared with 147 in ’93 and 137 in ’92. Also, according to Cineplex, there is a rise in the number of teenagers (who account for 30% of audience) for the first time in 20 years. PC