Republic Pictures, buoyed by a growing sell-through homevid share and a lighter debt load due to its Sept. 13 Blockbuster Entertainment-bankrolled marriage with Spelling Entertainment, posted solid third quarter net earnings of $ 713,000, or 10 cents a share.
This was culled from $ 24.14 million in net revenues for the quarter ended Sept. 30, compared with last year’s $ 19.65 million.
Net income for the quarter was $ 160,000, or 4 cents a share.
The recapitalized Republic saw third-quarter vid and theatrical revenues jump from $ 11.71 million a year ago to $ 14.36 million, backed by sell-through titles “The Secret Garden” and “Sarah, Plain and Tall.”
Third-quarter TV revenues were up from $ 7.93 million to $ 9.77 million. Republic already has delivered two made-fors, “Final Appeal” for NBC and “The Conviction of Kitty Dodds” for CBS.
Under the terms of the Spelling/Republic agreement, Blockbuster Entertainment Co. — which owns a 63.5% controlling interest in Spelling and 35% of Republic — will accept 13.4 million newly issued Spelling shares valued at approximately $ 100 million (Daily Variety, Sept. 13). Still subject to approval by Spelling shareholders, board of directors and a special committee, the merger is expected to be closed by late January. Republic’s Nasdaq stock closed Thursday at $ 12.38 a share, up 13 cents.
“Blockbuster’s investment in July enabled us to almost entirely eliminate the debt the company had,” Republic chairman and CEO Russell Goldsmith said.