GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Carmike Cinemas Inc. Reports Operating Results (10-Q)

November 01, 2012 | About:
10qk

10qk

18 followers
Carmike Cinemas Inc. (CKEC) filed Quarterly Report for the period ended 2012-09-30.

Carmike Cinemas, Inc. has a market cap of $232.2 million; its shares were traded at around $13.62 with a P/E ratio of 10.1 and P/S ratio of 0.5.

Highlight of Business Operations:

Total revenue decreased approximately 4.4% to $127.5 million for the three months ended September 30, 2012 compared to $133.3 million for the three months ended September 30, 2011, due to a decrease in total attendance from 13.3 million in the third quarter of 2011 to 12.4 million for the third quarter of 2012, partially offset by an increase in average admissions per patron from $6.49 in the third quarter of 2011 to $6.52 in the third quarter of 2012 and an increase in average concessions and other sales per patron from $3.57 in the third quarter of 2011 to $3.81 for the third quarter of 2012. Attendance was down period over period due principally to a more favorable movie slate in 2011. Average concessions and other sales per patron increased, primarily due to concession promotions and increased prices.

Total revenue increased approximately 9.4% to $394.3 million for the nine months ended September 30, 2012 from $360.3 million for the nine months ended September 30, 2011 due to an increase in total attendance from 35.8 million for the 2011 period to 37.1 million for the 2012 period, an increase in average admissions per patron from $6.51 for the 2011 period to $6.76 in the 2012 period and an increase in average concessions and other sales per patron from $3.63 in the 2011 period to $3.88 in the 2012 period.

Film exhibition costs. Film exhibition costs fluctuate in direct relation to the increases and decreases in admissions revenue and the mix of aggregate and term film deals. Film exhibition costs as a percentage of revenues are generally higher for periods with more blockbuster films. Film exhibition costs for the three months ended September 30, 2012 decreased to $44.1 million as compared to $47.0 million for the three months ended September 30, 2011 primarily resulting from a decrease in total attendance. As a percentage of admissions revenue, film exhibition costs increased to 54.9% for the three months ended September 30, 2012 as compared to 54.6% for the three months ended September 30, 2011. Film exhibition costs for the nine months ended September 30, 2012 increased to $136.1 million as compared to $125.6 million for the nine months ended September 30, 2011. As a percentage of admissions revenue, film exhibition costs for the nine months ended September 30, 2012 were 54.4% as compared to 54.2% for the nine months ended September 30, 2011.

Concession costs. Concession costs fluctuate with changes in concessions revenue and product sales mix and changes in our cost of goods sold. Concession costs for the three months ended September 30, 2012 remained consistent with the three months ended September 30, 2011. Concession costs were $5.8 million and $5.7 million for the three months ended September 30, 2012 and 2011, respectively. As a percentage of concessions and other revenues, concession costs for the three months ended September 30, 2012 were 12.3% as compared to 12.0% for the three months ended September 30, 2011. Concession costs increased to approximately $16.9 million for the nine months ended September 30, 2012, compared to $14.9 million for the nine months ended September 30, 2011 due to increased concessions sales resulting from increased attendance during the nine months ended September 30, 2012. As a percentage of concessions and other revenues, concession costs were 11.7% and 11.5% for the nine months ended September 30, 2012 and 2011, respectively.

Operating income. Operating income for the three months ended September 30, 2012 decreased to $7.4 million from $13.8 million for the three months ended September 30, 2011. As a percentage of revenues, operating income for the three months ended September 30, 2012 was 5.8% as compared to 10.4% for the three months ended September 30, 2011. This fluctuation is primarily a result of a decrease in total revenue resulting from a decrease in attendance for the three months ended September 30, 2012, an increase in impairment charges and the factors described above. Operating income for the nine months ended September 30, 2012 increased 42.0% to $38.1 million as compared to $26.8 million for the nine months ended September 30, 2011. As a percentage of revenues, operating income for the nine months ended September 30, 2012 was 9.7% as compared to 7.4% for the nine months ended September 30, 2011. These fluctuations are primarily a result of the factors described above.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK