The operations side looks solid at first glance, although a one-time $5M expense to extinguish some debt may startle investors who focus on the bottom line. The exhibition chain generated net income of $1.2M, -79.7% vs last year’s Q2, on revenues of $136.3M, +3.7%. The revenue figure is just a little short of the $136.7M analysts expected. The earnings figure at 7 cents a share is way below the 30 cents the Street anticipated. But if you strip out the debt repayment, the earnings figure would come to 39 cents. Once again, we’re seeing a theater chain report a decrease in ticket sales outweighed by increased ticket prices and concessions spending. Total attendance fell 3.6% to 12.6M. But the average ticket price each patron paid was up nearly 6% to $6.91. Concession payments per patron were up 8.6% to $3.92. With the reduction in debt “Carmike has now entered a new phase focused on increasing our circuit footprint, which we expect to achieve through a combination of acquisitive and organic growth,” CEO David Passman says. He adds that the company “extends its deepest sympathy to those affected by the tragedy in Aurora, Colorado. Our thoughts and prayers are with everyone impacted by this senseless, random act of violence. We regularly monitor and review our safety procedures to ensure that our patrons continue to have a safe and enjoyable experience.”
Carmike Q2 Earnings Hit By Debt Repayment Costs
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