Debt-ridden Cannon Group Inc., plagued by a string of box-office flops, announced on Thursday a net loss of $9.99 million for its first quarter ending April 4.
Cannon predicted the loss last month when it released its much-delayed annual report revealing that the Los Angeles-based movie maker lost $60.4 million in fiscal 1986. Some analysts predict that Cannon will lose $25 million to $50 million in the first half of 1987, mostly due to such box-office disappointments as "Hanoi Hilton," "The Barbarians" and "American Ninja 2."
Cannon's first-quarter revenue of $117.5 million was more than double the year-ago period, but still not enough to cover film amortization costs, increased operating expenses and interest expenses, which exceeded $13 million for the quarter. By some estimates, Cannon has a short-term debt of about $130 million and a long-term debt of more than $400 million.
Cannon's stock, which last year traded as high as $45.50 a share, closed Thursday at $4.--down 12.5 cents on the New York Stock Exchange.