Slicing the Bread

Will last week’s video release of “Rain Man” finally pull the Oscar-winning film out of the red? According to a rep for distributor United Artists, probably.

Some background: Three months ago, we reported that the UA picture, was, according to studio accounting, still $39.1 million away from breaking even. At the time, the $29.2 million production had generated a gross of $120 million at the North American box office alone. But after deductions for overhead, distribution, advertising costs, etc., it was still, technically, unprofitable.

We’ve now seen the second accounting statement--for the period ending May 27--and despite worldwide box office in excess of $300 million, “Rain Man” is still $25.1 million in the red.

Here’s how the studio figures the losses, according to the internal document we obtained:

The picture has amassed rentals (the amount that the studio receives after the theater owners take their cut) of $66.2 million in North America and $56.5 million from foreign release, for a total of $122.7 million. Deduct $42.2 million for UA’s distribution fee and an additional $39.9 million in direct distribution expenses, including advertising ($27.6 million) and costs of film prints ($5.5 million), leaving a balance of $40.6 million.

Then, from that balance, $28.1 million was distributed to gross profit participants Dustin Hoffman, Tom Cruise, producers Jon Peters and Peter Guber and director Barry Levinson. Another $29.2 million was lopped off for “Rain Man’s” direct production cost, plus $4.3 million for studio overhead and interest charges of $4.1 million.

The bottom line: a negative balance of $25.1 million on UA’s books.

A studio spokesperson insisted that with additional theatrical rentals and upcoming video coin, the picture will show a profit balance in an upcoming statement.

Barry Morrow, who wrote the story and shares screenplay credit (with Ron Bass), and is due defered payments “in the six figures,” said he’s “still waiting for something to trickle down.”