$131 mil record rise reported as distrib expands
Cinemark USA Inc., the nation’s sixth-largest theater operator, Monday reported revenues rose to a record $131 million but net profits took a dip in the second quarter, as the exhib expanded its screen count into new territories.For the second quarter ended June 30, the Dallas-based exhib said revenues rose 27% to $131 million, compared with $102.8 million in 1997, and operating cash flow — earnings before interest, taxes, depreciation and amortization — increased 5.6% to $20.7 million vs. $17.9 million for 1997. Net profits, however, dipped slightly to $2.3 million vs. $3 million a year ago, as the exhib’s development of 223 screens, in-cluding 64 screens in Latin America, took a bite out of earnings. Included for the period was $3.3 million of rent expense attributed to the sale and leaseback of 12 theaters with 188 screens in the first quarter of 1998. Cinemark operates about 200 theaters with almost 2,000 screens. About a quarter of the exhib’s theaters are discount locations.