Carmike Cinemas Second-Quarter Earnings Rise, Miss Expectations
Movie theater group Carmike Cinemas Inc. on Monday reported stronger second-quarter financials and announced a stock offering that will raise money for possible further acquisitions.
Second-quarter revenue of $170.5 million was up from $135.5 million. Earnings of $6.7 million was up from $1.2 million in the year-ago period but missed Wall Street expectations.
Second-quarter admissions revenue grew 24.7 percent year-over-year and 13.9% on a per-screen basis. Carmike said that "significantly" outperformed the U.S. cinema industry increase of 7.8 percent in the period.
Concessions and other revenue per patron increased 6.9 percent to a new all-time record, extending Carmike’s year-over-year per-patron spending growth to 14 consecutive quarters, the firm said.
Said Carmike Cinemas president and CEO David Passman: "Carmike's second-quarter performance reinforces our view that adding further diversification and scale to our theater circuit brings strong operating leverage to the company's business model, driving increased value for all stakeholders. For that reason, we remain committed to our goal of further expanding Carmike's footprint to 300 locations and 3,000 screens."
Carmike also announced a public offering of 4.5 million shares of its common stock, saying it would use proceeds "for potential acquisitions, working capital, capital expenditures or other general corporate purposes."
Said Passman about the industry outlook: "While we are only a little over three weeks into the third quarter, the industry has continued to generate positive results at the box office, and we remain optimistic about the back half of 2013."