Skyline Multimedia Entertainment Reports Second Quarter and Six Month Results

Business Wire, Feb 19, 1998

NEW YORK--(BUSINESS WIRE)--Feb. 19, 1998--Skyline Multimedia Entertainment Inc. (NASDAQ:SKYL, SKYLU) today announced results for its second quarter and six months ended Dec. 31, 1997.

Revenues for the three months ended Dec. 31, 1997 increased 60% to $2,805,000 from $1,749,000 a year ago. For the six months ended Dec. 31, 1997 the company reported revenues of $5,941,000 compared with $3,786,000 for the comparable period in 1996. The company attributes the significant increase in revenues primarily to operations at its XS New York location which opened at the beginning of the 1997 calendar year. Revenues at New York Skyride decreased by approximately 12% primarily due to a reduction in attendance as compared to the same period in the prior fiscal year.

The net loss for the three months ended Dec. 31, 1997 was ($1,487,000) or (89 cents) per share versus a net loss of ($512,000) or (29 cents) per share in the first quarter of last year. Net loss for the six months ended Dec. 31, 1997 was ($1,826,000) or ($1.09) per share compared with net income of $387,000 or 22 cents per share for the comparable period in 1996. The net loss for the quarter ended Dec. 31, 1997 included a loss of approximately ($563,000) related to XS New York, a loss of approximately ($248,000) from New York Skyride, and a loss of approximately ($676,000) related to certain start-up costs and write off in connection with the company's Woodfield Mall and proposed Australia sites. Net income for the quarter ended Dec. 31, 1996 included a deferred tax benefit realized of $229,000 and income of $60,000 from New York Skyride, offset, in part, by start-up expenses of $550,000 related to XS New York.

Headquartered in New York, Skyline Multimedia Entertainment, Inc. is a holding company engaged in the development and operation of state-of-the-art entertainment attractions worldwide. New York Skyline, Inc., a wholly-owned subsidiary, owns and operates New York Skyride, the first flight simulator attraction in the metropolitan New York area. The New York Skyride is located in the Empire State Building, New York's number one tourist attraction. Skyline Virtual Reality, Inc., a wholly owned subsidiary, owns and operates XS New York, New York City's first and only Virtual Reality Entertainment Center, located in the heart of Times Square.

                      Skyline Multimedia Entertainment
                   Consolidated Statement of Operations

                    Three Months Ended      Three Months Ended
                     December 31, 1997       December 31, 1996

Revenues                 $ 2,805,000             $1,749,000

Operating Expenses       $ 4,086,000              2,398,000

Net Interest (Expense)   $  (206,000)               (72,000)

Income Tax Expense                -0-                20,000

Net Deferred Tax Benefit          -0-              (229,000)

Net (Loss) Per Share     $(1,487,000)              (512,000)

Basic Earnings (Loss)           (.89)                  (.29)

Diluted Earnings (Loss)
 Per Share                      (.89)                  (.29)

Basic Weighted Average Number
 of Shares (Excludes
 670,000 Escrow shares and
 1,090,909 Preferred shares) 1,675,000            1,785,000

Diluted Weighted Average
 Number of Shares (Excludes
 670,000 Escrow Shares)      1,675,000            1,785,000

                     Six Months Ended        Six Months Ended
                     December 31, 1997       December 31, 1996

Revenues                 $ 5,941,000             $3,786,000

Operating Expenses       $ 7,341,000              3,985,000

Net Interest (Expense)   $  (426,000)               (74,000)

Income Tax Expense                -0-               164,000

Net Deferred Tax Benefit          -0-              (824,000)

Net (Loss) Per Share     $(1,826,000)               387,000

Basic Earnings (Loss)          (1.09)                   .22

Diluted Earnings (Loss)
 Per Share                     (1.09)                   .14

Basic Weighted Average Number
 Number of Shares (Excludes
 670,000 Escrow shares and
 1,090,909 Preferred shares) 1,675,000            1,785,000

Diluted Weighted Average
 Number of Shares (Excludes
 670,000 Escrow Shares)      1,675,000            2,876,000