Below are my key takeaways from the Carmike Cinemas Q2 2016 Earnings Call on Aug 1:
Summary:
David Passman, CEO, stated, “Our second quarter results reflect the continued successful execution of our theatre-level initiatives and operating effectiveness around our recent acquisitions, offset by the difficult year-over-year comparison related to the record U.S. box office performance in the second quarter of 2015.”
Has agreed to a merger agreement with AMC Entertainment for $1,200MM. AMC will acquire all outstanding shares of Carmike in cash and stock. Expected to be completed by YE 2016.
Total revenue in the quarter was down 6.6% YoY to $204.7MM. Admission revenue fell 9.5% to $122.1MM, while concessions were down only 1.9% to $82.5MM.
Total attendance was 15.9MM in the quarter, down 10.4% from the 17.7MM who came in Q2 2015. Avg. ticket price was $7.69 a slight increase from last years’ $7.62. Spending on concessions per patron grew 9.5% YoY to $5.20, which makes it 26 consecutive reporting periods of YoY growth in concessions per patron spending.
| Financials (In millions) | Q2 2016 | Q2 2015 | % Diff |
| Total Revenue | $205 | $219 | -6.6% |
| – Admissions | $122 | $135 | -9.5% |
| – Concessions | $83 | $84 | -1.9% |
| Film Rental Costs | $70 | $79 | -11.4% |
| Concession Costs | $10 | $10 | 2.0% |
| Rent | $27 | $24 | 12.5% |
| Operating Expense | $34 | $33 | 2.0% |
| EBITDA | $25 | $24 | 6.7% |
| Adjusted EBITDA | $31 | $41 | -24.0% |
| Operating Income | $9 | $27 | -67.2% |
| Net (Loss) Income | -$2 | -$1 | 10.6% |
| Diluted EPS | $0.10 | $0.36 | -72.2% |
| Other Key Metrics | Q2 2016 | Q2 2015 | % Diff |
| Avg. # of Theaters | 275 | 271 | 1.5% |
| Avg. # of Screens | 2,946 | 2,884 | 2.1% |
| Attendance | 15,875 | 17,724 | -10.4% |
| Avg. Attendance/Screen | 5,389 | 6,145 | -12.3% |
| Avg. Ticket Price | $7.69 | $7.62 | 0.9% |
| Avg. Concession/Patron | $5.20 | $4.75 | 9.5% |
List of Key Properties:
Forward Thinking:
- Will work to complete the AMC Entertainment transaction
Links to Company Website:
Q2 2016 Earnings Press Release
Please comment below if there are data points from Carmike Cinemas you’d like me to include in their next Earnings Call Summary.
