NEW YORK — Struggling exhibitor United Artists Theater Group announced late Friday that its net losses widened dramatically in the latest quarter to $38 million from $18.7 million in the year-earlier period, due mainly to non-cash charges associated with unprofitable theaters and restructuring costs.
UA CEO Kurt Hall said the Denver-based circuit is still in talks with its senior bank lenders and with a large group of bondholders to restructure and recapitalize the company. He’s optimistic the parties will hash out a deal.
“Given the poor operating results, tightening liquidity and reduced capital spending across the entire theater industry, United Artists, as one of the first exhibitors to complete a recapitalization, will be well positioned to strengthen our existing key market positions, improve the quality of the circuit and regain some of the market share lost during the last few years,” Hall said.
Cash flow for the period ended in June fell 25% to $14.2 million. Revenue dropped 17% to $139 million — with admissions revenue down 18% to $94 million.
Like Regal Cinemas last week, UA blamed its weak quarter in part on a weak June film release schedule, which it said has affected attendance industrywide.
UA has 1,816 screens in 248 locations.