Movie theatre company Cineplex reports $230.4-million fourth-quarter loss

TORONTO - Cineplex Inc. reported a fourth-quarter loss of $230.4 million as restrictions to slow the spread of the pandemic were tightened and theatres closed.

The movie theatre company says the loss amounted to $3.64 per diluted share for the quarter ended Dec. 31 compared with a profit of $3.5 million or six cents per diluted share in the last three months of 2019.

Revenue totalled $52.5 million, down from $443.2 million a year earlier.

Cineplex announced earlier this week that it reached a deal with its lenders to further amend its credit agreement as it struggles through the financial impact of the COVID-19 virus on its operations.

The country's largest theatre chain said the amendment allows for the suspension of financial covenant testing to continue until the fourth quarter of 2021 under certain conditions.

These include the completion of a minimum $200-million financing of second lien secured notes by March 31. Net proceeds must be used to repay debt, including $100 million that would be a permanent repayment.

This report by The Canadian Press was first published Feb. 11, 2021.

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