Exhib CinemaStar sees losses double, revs drop

Luxury theater chain's revenue drops to $7.1 mil in first quarter

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.

More Biz

  • Fourward

    Management Company Fourward Taps Christopher Burbidge as Head of Talent Division

    Will Ward’s management company Fourward has promoted long-time colleague Christopher Burbidge to head the company’s rapidly growing talent division, while also promoting Brooke Blann to manager in the company’s music division. Both Blann and Burbidge are based in the company’s Los Angeles office and will continue to report directly to Ward. Burbidge works closely on [...]

  • Writers vs Agents Packaging War WGA

    Kaplan Stahler Agency Signs Modified Code of Conduct in Win for WGA

    Kaplan Stahler has become the latest agency to sign the Writers Guild of America’s (WGA) modified code of conduct in a win for the Guild. In a message sent out to WGA members today, the negotiating committee wrote that the agreement with Kaplan Stahler “bans packaging fees and agency-affiliated production companies and, through information-sharing, makes [...]

  • London's CODA Agency Formally Becomes a

    Paradigm Agency Formally Absorbs London's CODA Into the Fold

    After five years of working together, London’s CODA Agency has formally become a part of Paradigm and will continue under its U.S. partner’s banner. The London office of what is now a fully integrated Paradigm will continue to be led by Alex Hardee, Tom Schroeder, James Whitting and Dave Hallybone. In a statement otherwise laden [...]

  • WGA Agents Dispute Placeholder

    Agencies Seek to Hold Key Court Hearing Before WGA Elections

    The four major agencies asked a court on Monday to expedite a key hearing in the Writers Guild of America lawsuit, as the agencies seek to have portions of the case thrown out before the WGA’s internal elections in September. The WGA and the unions are still waging a legal and public relations battle over [...]

  • Sonja Plack Cocaine Possession

    'The Chi' Actress Sonja Sohn Arrested on Cocaine Possession Charge

    Sonja Sohn, the actress who appears on “The Chi,” was arrested over the weekend in North Carolina on a charge of cocaine possession. Sohn, best known for portraying Det. Kima Greggs on “The Wire,” was booked and released from the Dare County Detention Center in Manteo, N.C., according to a statement from the Dare County [...]

  • Roc Nation Label Names Shari Bryant

    Roc Nation Label Names Shari Bryant and Omar Grant Co-Presidents

    Roc Nation has named Shari Bryant and Omar Grant co-presidents of the Roc Nation Label, the company announced today. The two will lead the Roc Nation team to develop strategies for signed artists while continuing to build the talent roster, according to the announcement. “There is no better way to celebrate my 20th anniversary in the [...]

  • Bert Salke and Jennifer Salke

    Feds Looked Into Amazon Studios Chief Jennifer Salke in College Admissions Scandal

    Federal investigators looked into Amazon Studios chief Jennifer Salke and her husband, Fox 21 Television Studios president Bert Salke, as they conducted a sprawling probe of cheating in elite college admissions, a source close to the case told Variety. It does not appear, however, that prosecutors will charge the Salkes in the case. The Salkes [...]

More From Our Brands

Access exclusive content