Carmike Cinemas posts Q3 loss

Company hit by costs associated with entering new markets

By Paul Bond

Nov 2, 2009, 07:51 PM ET

Carmike Cinemas said Monday that its third-quarter loss widened to $20.7 million, compared with $200,000 during the year-ago period, as the company took a $17.2 million impairment charge for costs associated with entering new markets.

The movie-exhibition company reported flat revenue at $122.4 million.

Carmike said each moviegoer spent about $9.63 a visit during the quarter, up almost 2% compared with a year earlier, but total attendance was down 2.4% to 12.7 million.

Carmike boasts an "industry leading" 500 3D screens, so CEO David Passman said he expects the company to end the year on a high note with Fox's "Avatar" and Disney's "A Christmas Carol" coming during the fourth quarter and in 3D.

The company also is experimenting with an upper-class moviegoing experience beyond 3D that includes fancier food.

"While incremental expenditures to improve facilities and the customer experience are impacting near-term operating results, they will soon deliver benefits by generating increased customer loyalty and patronage," Passman said.

Carmike Cinemas posts Q3 loss

Company hit by costs associated with entering new markets

By Paul Bond

Nov 2, 2009, 07:51 PM ET