Loews to Speed Up Cuts as Loss Swells

Loews Cineplex Entertainment Corp., the No. 2 U.S. movie theater operator, said Monday its third-quarter loss increased nearly eight-fold from a year ago and it plans to accelerate the disposal of 675, or about 23%, of its 2,965 screens.

The New York-based company, whose screens are mostly in big U.S. and Canadian metropolitan areas, reported a third-quarter net loss of $185.9 million, or $3.17 per share, on revenue of $192.1 million. A year earlier, it lost $23.8 million, or 41 cents per share, on revenue of $209.3 million.

Loews took a one-time charge of $122.4 million representing net book value and goodwill associated with the screen closures, which will be at about 112 underperforming theaters.

“Our company continues to experience significant financial challenges due to the overbuilding in the industry and declining attendance at some of our older theaters, combined with lower industry-wide attendance levels related to the poor performance of the film product for most of the third quarter,” said Lawrence J. Ruisi, Loews Cineplex’s president, in a statement.