Live Entertainment Shows Smaller 2nd-Quarter Loss

Live Entertainment Inc., an ailing videocassette distributor based in Van Nuys, reported a narrower loss in the second quarter, while its sales plunged 36%.

Live lost $13.4 million in the quarter that ended June 30, in contrast with a year-earlier loss of $61.1 million. Its revenue fell to $43 million from $67.3 million a year earlier.

But without losses related to the sale of Live’s Lieberman subsidiary last year, Live’s income from continuing operations was $455,000 in second-quarter 1991. This year’s second-quarter loss was due to lower profit margins on home videos, higher interest and amortization costs and lower sales. The company blamed the soft economy and weak film releases for the sales decline.

Live’s six-month loss totaled $15.8 million, compared with a loss of $59.3 million a year before. Sales were down 28%, to $110.6 million from $153.3 million.

Last month, Live agreed in principle on a restructuring plan with an unofficial committee representing certain holders of Live’s 14.5% senior subordinated notes due in 1999 and Live’s Series A preferred stock. Details were not disclosed, but as part of the deal Pioneer LDCA Inc. agreed to provide financing of up to $15 million so Live can obtain video rights to new releases.

Live said it is also working on replacing its bank credit line that expires in December--a condition of the restructuring.

Carolco Pictures Inc., a troubled Los Angeles film producer, owns 49.9% of Live.