Carmike Cinemas posts Q3 loss
Company hit by costs associated with entering new marketsCarmike 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.