Boxoffice-November.2001

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EXHIBITION
BRIEFINGS
TICKER TIME
LEAD STORY: FILM INDUSTRY
RAISES MONEY FOR VICTIMS
OF SEPTEMBER 11 TRAGEDY
On September 25th, exhibition trade
organization the National Association of
Theatre Owners and several domestic circuits
participated in a one-day event to raise
funds for individuals in New York City,
Washington, D.C. and Pennsylvania affected
by the tragic events that devastated the
country on September 11. During the
"Victims' Benefit Day at the Movies," theatres
taking part in the cause donated all
proceeds earned from ticket and concessions
sales to the American Red Cross and
the United Way. In an official statement
released by NATO, the association remarked,
"The members of America's movie
theatre industry, like all Americans, were
deeply saddened by the tragic events of
September 11, 2001... We. ..recognize and
commend the heroic efforts of the individuals
and organizations who have worked so
tirelessly in the rescue and relief operations.
We want to help the cause." More than 250
exhibition companies, comprising close to
28,000 screens nationwide, partook in the
charitable event,
raising over $5 million to
be divided evenly between the Red Cross
and the United Way.
Executives at many of the largest theatrical
chains expressed their desire to aid in
the fundraising effort. Piano, Texas-based
Cinemark USA president Alan Stock stated,
"We, as a company, wanted to do something
to contribute to both the courageous
efforts of the disaster relief workers and help
the families of the victims." W. James
Edwards III, CEO of Newport Beach, Calif.-
based Edwards Theatres commented that
the event was "a great opportunity for
moviegoers and Edwards to join together to
actively support the victims and their families
while moving forward in our nation's
recovery." Paul Richardson, CEO of arthouse
circuit Landmark Theatres, explained
that his company had "been inundated with
proposals from our staff and friends as to
how we could join the relief drive."
In addition to participating in the
September 25th benefit, Regal Cinemas, the
country's largest theatre chain, sponsored a
companywide "Red, White and Blue Day"
on September 21st. Fifty cents from every
popcorn purchased at Regal's 337 moviehouses
on that date was donated to the
American Red Cross.
Canadian theatres also did their part to
help in the cause, holding their own special
fundraising day on October 1st. Famous
Players, Cineplex Odeon, Landmark Cinemas
of Canada, Empire Theatres, Alliance
Atlantis, Galaxy Entertainment, Cuzzo
Cinemas and Stinson Theatres were just a
few of the many northern exhibition companies
that either donated $4 for each turnstile
turn or a percentage of their concession
sales. Adina Lebo, executive director of
Canadian exhibition trade association
Stock (close)
GRAPH: Exhibition Stocks, % Change YTD(9/Z8)
AMC (AEN)
Carmike (CKECQ)
CinemaStar (LUXYQ)
Ent. Prop. (EPR)
Gen. Cinema (GCCXQ)
Loews (LCPFQ)
Marcus (MCS)
Stock (52-week)
AMC (AEN)
Carmike (CKECQ)
CinemaStar (LUXYQ)
Ent. Prop. (EPR)
Gen. Cinema (GCCXQ)
Loews (LCPFQ)
Marcus (MCS)
)9/28 % Ch.
10.50 +162.50%
0.38 + 11.76%
0.07 - 92.47%
16.90 + 62.90%
0.53 - 53.64%
0.09 - 59.09%
12.00 - 1.35%
Low
10.50
0.51
0.07
10.12
CIRCUIT-BY-CIRCUIT LOOK:
Mkt Cap (bil)
0.00
0.249
Columbus, Ga. -based Carmike Cinemas has submitted a bankruptcy reorganization plan
that calls for the closure of 25 of its 330 venues currently in operation. The company,
which has already shuttered more than 100 theatres over the past year, is further targeting
underperiorming venues in the hopes of emerging from its Chapter 11 status within
the coming months. Should the Wilmington, Del. U.S. Bankruptcy Court approve
Carmike's proposal, preferred stockholder Goldman Sachs will
0.00
receive a 40 percent share
of the company, since the plan involves a conversion of approximately $46.5 million worth
of preferred stock into common shares.
A group of Edwards Theatres' largest creditors has officially endorsed a restructuring
plan that would give Denver-based exhibition investor Philip Anschutz a majority stake in
the Newport Beach, Calif-based chain. Observers note that pending a widely expected
approval from a U.S. Bankruptcy Court judge, Anschutz and partner Oaktree Capital's
acquisition of Edwards is all but complete. Upon finalization of the transaction.
Anschutz's domestic exhibition holdings will total close to 2,200 screens.
General Cinema parent GC Cos. is
reporting third-quarter losses of just over $15 million,
or red ink $1 .94 per diluted share, compared with the previous year's loss of $10.1
million. The company attributes the widened loss to charges related to bankruptcy
restructuring. Revenue earned during the three-month period totaled $85.3 million, compared
with $108,6 million a year ago. Chestnut Hill, Mass-based General Cinema itself
recorded an operating loss of $7.7 million during the timeframe.
MPTAC, said that she hoped that "this added
incentive" would "attract film-lovers to our
theatres and give them an opportunity to
participate in the relief effort."
The majority of Hollywood studios lent
their full support to the September 25th benefit
by waiving the rental fee for the day's
screenings. Sony Pictures, Paramount Studios,
Warner Bros., DreamWorks, MGM and
Buena Vista were among the distributors that
agreed to donate their share of ticket revenue
earned on the fundraising date.
Following the terrorist attacks on the World
Trade Center and the Pentagon, several movie
theatres across the country had made the
decision to close for business on September
11, citing both safety concerns and a wisli to
pay respect to the victims of the tragedy.
GENERAL COMMANDS BIDS
Competition to purchase the 677-screen
General Cinema theatrical circuit heated up
early last September, as a number of companies
submitted offers to meet the U.S.
Bankruptcy Court's final deadline. Industry
observers name Kansas City-based AMC
Entertainment and investment partners
Onex Corp. and Los Angeles-based Oaktree
Capital as leading bidders, with both groups
believed to have increased their respective
proposals, which were submitted earlier
the year (see Exhibition Briefings, October,
2001). Also making a bid for the Chestnut
Hill, Mass.-based chain are unexpected
partners Century rheatres and Muvico.
Analysts speculate that H San Rafael, Calif.
based Century and Fl. Lauderdale, Fla.-
in
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