Carmike Cinemas Reports Surprise Loss
The company says operating costs rose with the addition of Rave theaters and that shutting down a theater before its lease expired proved to be an expensive move.
Carmike Cinemas reported a loss of $5.8 million, or 33 cents a share, missing expectations on Wall Street that it would earn a profit of seven cents.
The exhibitor said Monday that the loss was attributed to an increase in operating expenses due to its acquisition last year of Rave theaters and due to costs associated with the closure of an underperforming theater prior to the expiration of a lease.
Shares of Carmike rose two percent during the regular session and did not trade after the closing bell.
The company said revenue in the first quarter rose to $130.1 million from $130 million a year ago. Revenue from admissions fell one percent to $81.5 million while concession revenue rose three percent to $48.6 million.
Admissions per patron rose to $7.02 from $6.84 and concessions per patron rose to a record $4.18, up from $3.91.
Carmike CEO David Passman called the quarter challenging due to comparisons with a robust quarter last year, but was enthusiastic about the performance thus far of Iron Man 3 and is "optimistic about the balance of 2013.”