CinemaStar Luxury Theaters said Monday that its fiscal first-quarter red ink had doubled amid a 3% drop in revenue, as the exhibitor vowed to address an industrywide slump by fine-tuning its circuit.
The San Diego-based company, which emphasizes upscale amenities in its chain, posted a loss of $848,499 for the three-month period ended June 30. That compared with red ink of $429,030 in the year-earlier quarter.
Revenue fell to $7.1 million.
“We are successfully weathering a down cycle in this industry and hope to improve margins by closing losing operations, avoiding excessive leverage and capturing migrated audience flow from terminated operations in our markets,” co-CEO Jack Crosby said.
Binge hangover
Wall Street has blamed a recent building binge for heavy debt levels among exhibitors and what’s seen as overcapacity in the industry. Analysts have suggested closing older theaters as one remedy.
CinemaStar, which operates 97 screens in Southern California and Mexico, closed a sixplex in Chula Vista, Calif., at the end of June. In April, the circuit expanded its Mission Grove, Calif., multiplex by four screens to 18.
In addition to its projection and sound systems, CinemaStar touts amenities in its theaters including high-back reclining seats and extra-wide aisles between seat rows.
