Shares are down about 1.4% pre-market. The exhibition chain announced that it has launched an underwritten public offering of 4.5M shares of common stock, with an opportunity for underwriters to nab an additional 675,000 shares. The proceeds could be used for acquisitions, as well as general corporate purposes, the company says. “We are not seeing fixer-uppers or turnaround projects,” CEO David Passman told analysts this morning. The goal is to expand to 300 locations with 3,000 screens. Carmike made the announcement as it released Q2 earnings that looked great on the top line, but will disappoint some investors on the bottom — even though they’re substantially up. The company reported net income of $6.7M, vs $1.2M in the period last year, on revenues of $170.5M, +25.8%. Revenues handily beat the Street’s expectations for $162.5M. But earnings at 37 cents a share fell short of forecasts for 41 cents. Attendance was up 18.8% to 14.9M including acquisitions; on a per screen basis they were up 8.4% to 6,054. Average admission payments per patron rose 4.5% to $7.22 while average concessions per patron were up 6.9% to $4.19. “The second quarter was an active and productive period for the cinema exhibition industry and while we are only a little over three weeks into Q3, the industry has continued to generate positive results at the box office and we remain optimistic about the back half of 2013,” Passman says.
Carmike Announces Stock Offering As Q2 Earnings Miss Expectations
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