Boxoffice-March.1988

SPECIAL REPORT (continued)
tributorship, an accounring firm, a bank,
and a photo-processing lab. Only the
theatres still remain under the Rand
auspices, and Rand contends that he
has always maintained, and hopes to
continue maintaining, a low profile; the
press, says Rand, came to him, and not
the other way around. "We didn't want
anyone to think we were tooting our
own horn. We just wanted to appear and
do the best job that we could to run our
theatres and let actions speak louder
than words."
He adds that his expansion only seems
sudden. "We've wanted to expand in
Texas for a number of years, but the
land values have always been so inflated,
we've never been able to aiford
the land. But over the last year and a
half we've been buying little bits and
pieces of land around the state."
A 3's Scott Wallace: "I hope that people don't
get suckered into believing that everything
somebody says is true."
Wallace's criticism of Rand's claims
stems largely from Rand's reluctance to
reveal exactly where, and with what
developers, he is building his flotilla of
eight- and ten-plexes. Rand says he is
keeping mum because he is mounting
what is essentially a surprise attack.
"Some areas are very competitive areas,"
notes Rand. "We'd like to be there,
obviously, before our competitors." So
Rand is hoping to sneak into the Texas
markets? "I think 'sneak' is a bad word.
We would aggressively like to be first. In
as quiet a manner as possible."
Wallace isn't sure about Rand's reasoning.
"Every time I make a real estate
deal," says Wallace, "the developer
wants to see an audited financial statement
from a Big Ten accounting firm, I
believe if you asked Tony Rand what his
financial statements looked like, I think
you'd find you're not talking about a
company with the kind of financial
strength or the kind of auditing standards
that are employed by major exhibitors
in this country."
Rand, of course, is not a major exhibitor
yet. He's been using Little Rockbased
CPA Doug Williams to put together
the chain's financial statement
and, in Rand's words, Williams "must be
adequate, or we wouldn't be getting
things done."
Rand readily admits that not all of the
$110-150 million dollar capital he'll
need to complete his expansion is in the
bag, but contends that he has $108 million
"locked up," and already has tentative
commitments for the rest. He says
he derives his investment capital from
four sources; the existing chain, private
investors, bank borrowing, and joint
ventures, "whichever fits the particular
situation."
But even if Rand has the means, Wallace
thinks Rand is imprudent for even
trying to muscle in on San Antonio.
"We're taking Santikos from 66 to 115
screens in about 18 months," explained
Wallace. "We're nearly doubling the size
of this market. If anything, we're going
to be guilty of overscreening. I find it
highly unlikely that there's room for
commercial theatre development outside
of our plan. I mean, we're going
crazy ourselves. We believe we're going
to be cannibalizing a good deal of our
business with our own expansion."
Rand agrees that the San Antonio
market will grow oversaturated with
moviehouses, but has different ideas as
to who will survive the melee. "I think
those with the best locations, the prettiest
and best-run theatres should have
the upper hand, and, hopefully, that will
be us."
Rand's first Texas theatre is definite-
Tony Rand: "I can't think of any reason why
you should believe me. just sit back and
watch."
ly under construction and scheduled to
open in Waxahatchie Mar. 15. In addition,
38 new screens in Louisville, North
Richland Hills, Grape\'ine and Austin
are said to be under construction and
due to bow by Jime 1. In addition. Rand
operations vice president Jeff Rand revealed
in January that the circuit had
acquired its first San Antonio site from
Lincoln Properties, and was on its way
to constnicting its Alamo Heights 10-
plex there.
Even so, Wallace is obstinate in his
nay-saying. "This industry' has been rife
with announcements and no buflding.
Show me a financed, signed lease and
I'll show you a theatre."
But Rand is no hurry to show Wallace
anything of the sort. "I would prefer if I
wasn't believed," says Rand. "I can't
think of any reason why you should
believe me. Just sit back and watch."
DiGiammatteo & Associates' prototype for Rand's proposed fleet of new multiplexes.
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