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Carmike Cinemas Lags Q2 Earnings & Revenues on Higher Costs

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Carmike Cinemas Inc. 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.

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. , Gray Television Inc. (GTN - Free Report) and Media general Inc. . All three stocks currently carry a Zacks Rank #2 (Buy).

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