The company's net losses also decreased slightly. It reports a net loss of $123.6 million compared to last year's $127.3 million. That reflects lower depreciation and amortization, and reduced impairment and lease restructuring and termination costs associated with the company's reorganization in bankruptcy court.

United Artists recently emerged from Chapter 11 bankruptcy and now is controlled by Denver billionaire Philip Anschutz, the richest man in Colorado and one of the nation's wealthiest. Anschutz made a fortune in oil, real estate, railroads and telecommunications. He is the largest shareholder of Denver-based Qwest Communications Inc., the biggest company headquartered in Denver.

"I am very pleased that we were able to improve our operating results despite the disruption to our business caused by our Chapter 11 proceedings," says Kurt Hall, UA's president and CEO. "We look forward to working with our new controlling shareholder, the Anschutz Corp., as we improve the quality of our asset base and continue to improve our operating results. With our significantly improved capitalization, we are now well positioned to withstand any variation in revenue relating to the looming writers' and actors' strikes and other challenges associated with the recovery of the exhibition industry over the next several years." The privately held United Artists operates 1,599 screens in 213 locations.