U.S. Markets close in 1 hr 11 mins

Carmike Cinemas Lags Q2 Earnings & Revenues on Higher Costs

Zacks Equity Research

Carmike Cinemas Inc. (CKEC) reported disappointing financial results for the second quarter of 2014. Quarterly net income from continuing operations came in at $3.2 million or 14 cents per share compared with $6.7 million or 38 cents per share in the prior-year quarter. Second quarter adjusted earnings per share of 17 cents were significantly below the Zacks Consensus Estimate of 35 cents per share.

Carmike Cinemas Inc - Earnings Surprise | FindTheBest

Quarterly total revenue of $183 million was up 7.9% year over year but fell slightly below the Zacks Consensus Estimate of $184 million. Admissions revenues were $115.1 million, up 7.3% year over year. Concession and other revenues were $67.9 million, up 9% year over year.

Quarterly operating costs and expenses stood at $164.2 million, up 12.4% year over year. However, operating income was $18.7 million, down 20% year over year. Operating margin was 10.2% compared with 13.8% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $32 million, down 6% from the year-ago quarter. Theater level cash flow was $37.6 million, down 5.7% year over year.

At the end of the second quarter of 2014, Carmike Cinemas had $145 million of cash and cash equivalents and $209.7 million of long-term debt outstanding compared with $143.9 million of cash and cash equivalents and $209.6 million of long-term debt outstanding at the end of 2013.

Theater Performance Statistics

Quarterly average theaters were 253 compared with 244 in the year-ago quarter. Average screens count stood at 2,667 against 2,468 in the prior-year quarter. Average admission per patron was $7.39 compared with $7.22 in the year-earlier quarter. Average concessions/other sales per patron were $4.36 against $4.19 in the year-ago quarter.

Other Stocks to Consider

Carmike Cinemas currently has a Zacks Rank #5 (Strong Sell). Other better-ranked stocks in the broader Media industry include CTC Media Inc. (CTCM), Gray Television Inc. (GTN) and Media general Inc. (MEG). All three stocks currently carry a Zacks Rank #2 (Buy).

Read the Full Research Report on CKEC
Read the Full Research Report on CTCM
Read the Full Research Report on MEG
Read the Full Research Report on GTN


Zacks Investment Research