Carmike 2Q profit up, adjusted earnings miss
by Associated Press Wire
July 22, 2013 09:15 AM | 394 views | 0 0 comments | 1 1 recommendations | email to a friend | print
COLUMBUS, Ga. (AP) — Movie theater operator Carmike Cinemas Inc.'s second-quarter net income rose more than fivefold as attendance climbed and people paid more per movie ticket and snapped up concessions.

Adjusted earnings fell short of Wall Street's view, however, while revenue topped expectations. Shares declined in premarket trading on Monday.

Carmike earned $6.7 million, or 37 cents per share, for the three months ended June 30. That's up sharply from $1.2 million, or 7 cents per share, in the prior-year period.

Stripping out acquisition-related expenses and other items, earnings were 38 cents per share. Analysts, on average, predicted earnings of 41 cents per share, according to a FactSet survey.

Revenue increased 26 percent to $170.5 million from $135.5 million. This beat the $163 million per share that Wall Street expected.

The average attendance per screen climbed to 6,054 from 5,583. The average admission price per person rose to $7.22 from $6.91 mostly on price hikes as well as benefits achieved from recent acquisitions. In addition, the average concessions and other sales from moviegoers increased to $4.19 per person from $3.92. Carmike said that the total spending per person rose 5.4 percent to a record $11.41.

The Columbus, Ga., company also said that it started a public offering of 4.5 million shares. It expects to give the underwriters a 30-day option to buy up to an additional 675,000 shares to cover any excess demand. Carmike anticipates using the offering's net proceeds for possible acquisitions, working capital, capital expenditures or other general corporate purposes.

Its shares fell 28 cents, or 1.4 percent, to $19.50 in premarket trading about 45 minutes ahead of the market opening.

Copyright 2013 The Associated Press.

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