General Cinema Reports Sharp Earnings Jump
General Cinema Corp. today reported sharply higher earnings for the latest quarter despite an operating loss it blamed on disappointing results from its theater division.
The company’s $129.3-million pretax capital gain from the sale of its interest in Cadbury Schweppes PLC offset what otherwise would have been a loss for the period.
With the gain, the movie theater operator and retailer earned $55.7 million, or 76 cents a share, in the fourth quarter ended Oct. 31, compared to $7.9 million, or 10 cents a share, in the year-earlier period.
The company said the operating loss was “due to a disappointing performance” by its theater division.
The theater division had a loss for the quarter and a decrease in patrons, which the company attributed to “somewhat weaker film product.”
Two of the company’s specialty retailing operations, Neiman Marcus and Contempo Casuals, had higher operating earnings while Horchow Mail Order lost $20 million.
For the year, General Cinema earned $111.3 million, or $1.51 a share, compared to $971.8 million, or $13.16 a share, in 1989.
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