Carmike Cinemas Shares Volatile After Financial Results
The company posted a 14 percent attendance increase and 24 percent climb in revenue generated at the snack bars.
Shares of Carmike Cinemas briefly surged 10 percent in the after-hours session once the movie exhibitor boasted of good attendance and robust sales at theater concession stands during the quarter, but the gains quickly reversed to minus 12 percent.
The company, which ended the quarter with 271 theaters, up from 253 a year ago, said operating revenue rose 20 percent to $219.1 million. The company lost 6 cents per share while it earned 14 cents per share in the same quarter last year.
The company posted a 14 percent attendance increase and 24 percent climb in revenue generated at the snack bars. Each patron spent $4.75 purchasing concessions, up 9 percent of a year ago, and each customer spent an average $7.62 for their ticket, up 4 percent.
Carmike CEO David Passman said results in the first six months of 2015 represent "record operating performance" for the company. Overall, though, revenue missed the expectations of analysts by $800,000 and profit after certain items were excluded were 36 cents per share while analysts expected 54 cents.
On a conference call with analysts, Passman expressed his "deepest condolences" for the victims of a shooting in Louisiana last week at a showing of Trainwreck at the Grand Theatre, owned by Southern Theatres, which is not affiliated with Carmike. He also thanked first-responders and theater employees who assisted the wounded.
Carmike shares were off fractionally to $26.04 on Monday and fell more than $3 after the closing bell. Analysts on the conference call with management on Monday mostly seemed concerned about film exhibition expense, which rose to 58.7 percent of admissions from 56 percent a year earlier.
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