The dreary financial results that Carmike Cinemas just released for its Q2 may provide supporting evidence for a key rationale behind its $1.2 billion sale to AMC Entertainment — that it faces hard times if it remains a standalone company.
The No. 4 chain closed the June quarter with a $1.6 million net loss, a 10.6% increase from the period last year, on revenues of $204.7 million, down 6.6%. Analysts expected the top line to hit $209.4 million. The results included a nearly $2 million asset impairment charge.
The 7-cents per share loss contrasts with the Street’s forecast for a 14-cent profit.
CEO David Passman blames “the difficult year-over-year comparison related to the record U.S. box office performance in the second quarter of 2015” — although he says that it was somewhat offset by the chain’s improved concession sales.
“Looking ahead, we are optimistic about the box office environment in the second half of this year and on our prospects for the remainder of 2016 and beyond,” he added.
Carmike’s stock price fell 1.6% today to $30.33 after AMC reported disappointing Q2 earnings, and were flat in post market trading. The sales mostly reflect investors’ sense of whether they’re likely to collect on AMC’s $33.06 per share offer.
Admissions fell 10.4% vs last year’s Q2 to 15.9 million, with attendance per screen down 12.3%. Consumers spent $122.2 million for tickets, down 9.5%. The average outlay per ticket increased less than 1% to $7.69.
Concession sales fell 1.9% to $82.5 million as the average spending per patron increased 9.5% to $5.20.
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