Company experiences fiscal loss for year
CinemaStar Luxury Theatres, which has been struggling to make a mark as a high-end regional exhibitor, on Wednesday posted a broadened fiscal-year loss of $5.2 million through March 31.The San Diego-based company, which touts amenities such as stadium seating, high-back seats and state-of-the-art projection and sound, saw a $1.9 million loss in its previous fiscal year. The red ink swelled to $1.34 per share in the most recent fiscal year, compared with a loss of 42¢ in the previous 12 months. “We are making solid progress in all areas of our tactical focus — reducing overhead, tuning operations and improving the balance sheet,” co-CEO Jack Crosby said. “Strategic goals include prudent growth in northern Mexico, new developer relationships in the U.S. and enhanced customer information systems.” Minor rev boost CinemaStar, which operates 93 screens in southern California and 10 in Tijuana, Mexico, saw a 1% rise in its fiscal year revenue to $28 million. The exhibitor expects to close the sale of a six-screen theater in Chula Vista, Calif., to a church group by fall. The company, which is publicly traded on the Nasdaq market, recently negotiated an amendment to its revolving credit facility to boost cash flow. CinemaStar also competed the sale of $3.5 million in new common stock to its principal shareholder, SCP Private Equity Partners, with proceeds targeted for construction of a new theater in San Bernardino, Calif., and an expansion project in Mission Grove, Calif.