Effective January 1, 2012, the Board invoked Cineplex's right to substitute a cashless exercise for any requested exercise of options for cash, in accordance with the terms of the option plan. As a result of the change in administrative policy, the options may only be equity-settled, and are considered equity, not liabilities. The expense amount for options is determined at the time of their issuance, recognized over the vesting period of the options. Existing options at the time of the change in administrative policy have their remaining expense determined at the time of the change in administrative policy, recognized over the remaining vesting periods.
Full Year
G&A expenses for 2012 increased $0.7 million compared to the prior year period, due to higher professional fees ($1.6 million) relating to the creation of CSI, an internal corporate reorganization effected on January 1, 2012 and the costs relating to the acquisition of AMC Ventures Inc., higher payroll related and general cost increases ($4.2 million) and higher LTIP expenses ($0.9 million). These increases were partially offset by the $6.0 million decrease in the option plan expense.
Share of loss of joint ventures
Cineplex's joint ventures in 2012 include its 50% share of one theatre in Quebec and one IMAX screen in Ontario, its 50% interest in SCENE LP, its 78.2% interest in CDCP (formed in June 2011) and its 50% interest in CSI (formed January 31, 2012). For 2011, Cineplex's joint ventures included one theatre in Quebec, one IMAX screen in Ontario, its interest in SCENE LP and its 78.2% interest in CDCP. The following table highlights the components of share of loss of joint ventures during the quarter and the full year (in thousands of Canadian dollars):
----------------------------------------------------------------------------Share of loss of joint ventures Fourth Quarter Full Year 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------Share of (income) loss of CDCP $ (834) $ (560) NM $ (2,222) $ 1,658 NMShare of (income) of CSI (170) - NM (932) - NMShare of loss (income) of SCENE 1,588 1,902 -16.5% 4,638 (1,440) NMShare of loss (income) of other joint ventures 2 19 -89.5% (109) 51 NM -----------------------------------------------------Total loss of joint ventures $ 586 $ 1,361 -56.9% $ 1,375 $ 269 411.2%----------------------------------------------------------------------------
Fourth Quarter
The decrease from a loss of $1.4 million in the fourth quarter of 2011 to a loss of $0.6 million in the current period is primarily due to the activities of SCENE, CDCP and CSI:
-- SCENE's loss in the fourth quarter of 2012 was $0.3 million smaller than the loss in the prior year period due to less marketing spend in the current year period compared to the prior year.-- CDCP generated income of $0.8 million in the fourth quarter of 2012, $0.3 million higher than the prior year period due in part to the full roll-out of digital projectors being completed in 2012.-- The results of CSI, formed January 31, 2012 and therefore not included in the prior year comparative, contributed a $0.2 million positive variance year over year.
