Below are my key takeaways from the Carmike Cinemas Q2 2016 Earnings Call on Aug 1:
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|
|Film Rental Costs||$70||$79||-11.4%|
|Net (Loss) Income||-$2||-$1||10.6%|
|Other Key Metrics||Q2 2016||Q2 2015||% Diff|
|Avg. # of Theaters||275||271||1.5%|
|Avg. # of Screens||2,946||2,884||2.1%|
|Avg. Ticket Price||$7.69||$7.62||0.9%|