Carmike Cinemas Falls After Quarterly Results Miss EstimatesRob Golum
Carmike Cinemas Inc., one of the largest U.S. theater chains, fell the most since November after second-quarter results missed analysts’ estimates.
The company recorded refinancing costs of $17.6 million, Chief Financial Officer Richard B. Hare said late Monday in a statement, leading to a loss for the period. Excluding those and some other items, Carmike reported profit of 36 cents a share. Analysts were projecting 54 cents.
Higher film costs were a factor, according to Eric Wold, a B. Riley & Co. analyst, who said a large number of hits and licensing fees for 3-D and Imax screens squeezed margins. Film exhibition expense as a share of admissions rose to 58.7 percent from 56 percent a year earlier, Carmike said.
Carmike fell 7.4 percent to $24.11 at the close in New York. The stock has lost 8.2 percent this year.
Second-quarter revenue rose 20 percent to $219.1 million, a reflection of higher admission prices, more screens and a strong slate of pictures from Hollywood. That missed the $219.9 million average of seven analysts’ estimates.
Columbus, Georgia-based Carmike reported a second-quarter net loss of $1.45 million, or 6 cents a share.
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