Q2 2o16 – Carmike Cinemas Earnings Call Summary

Carmike_Cinemas_logo

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.

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