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)

August 03, 2009 | About:

Carmike Cinemas Inc. (CKEC) filed Quarterly Report for the period ended 2009-06-30.

Carmike Cinemas is one of the largest motion picture exhibitors in the United States. Carmike targets small to mid-size non-urban markets. Carmike Cinemas Inc. has a market cap of $124.1 million; its shares were traded at around $9.68 with and P/S ratio of 0.3.

Highlight of Business Operations:

Total revenue increased approximately 13% to $133.1 million for the three months ended June 30, 2009 compared to $117.3 million for the three months ended June 30, 2008, due to an increase in total attendance from 12.5 million in the second quarter of 2008 to 13.7 million for the second quarter of 2009 and an increase in average admissions per patron from $6.16 in the second quarter of 2008 to $6.50 for the second quarter of 2009, offset by a decrease in average concessions and other sales per patron from $3.29 for the second quarter of 2008 to $3.23 for the second quarter of 2009.

Total revenue increased approximately 9% to $254.9 million for the six months ended June 30, 2009 compared to $233.5 million for the six months ended June 30, 2008, due to an increase in total attendance from 24.8 million for the 2008 period to 26.5 million for the 2009 period and an increase in average admissions per patron from $6.30 for the 2008 period to $6.44 for the 2009 period, offset by a decrease in average concessions and other sales per patron from $3.24 for the 2008 period to $3.21 for the 2009 period.

Admissions revenue increased approximately 10% to $170.1 million for the six months ended June 30, 2009 from $154.3 million for the same period in 2008, due to an increase in total attendance and an increase in average admissions per patron from $6.30 for the 2008 period to $6.44 for the 2009 period.

Interest expense, net. Interest expense, net for the three months ended June 30, 2009 decreased 13% to $8.7 million from $10.1 million for the three months ended June 30, 2008. The decrease is primarily related to a combination of lower average outstanding debt and a reduction in interest rates. Interest income, included in interest expense net, was $21,000 for the three months ended June 30, 2009 as compared to $25,000 for the same period in 2008. Interest expense, net for the six months ended June 30, 2009 decreased 16% to $17.8 million from $21.2 million for the six months ended June 30, 2008.

three months ended June 30, 2009 as compared to a loss of $364,000 for the three months ended June 30, 2008. We recorded a loss from discontinued operations for the six months ended June 30, 2009 of $484,000 as compared to a loss of $238,000 for the six months ended June 30, 2008. The results from discontinued operations include a loss of $2,000 on disposal of assets for the six months ended June 30, 2009 as compared to a gain of $490,000 for the six months ended June 30, 2008.

Net cash provided by operating activities was $29.3 million for the six months ended June 30, 2009 compared to $7.9 million for the six months ended June 30, 2008. This increase in our cash provided by operating activities was due primarily to a reduction in accounts receivable and an increase in accounts payable and accrued expenses as compared to the prior period. Net cash used in investing activities was $5.3 million for the six months ended June 30, 2009 compared to $2.3 million for the six months ended June 30, 2008. The increase in our net cash used in investing activities is primarily due to an increase in cash used for the purchases of property and equipment and a decrease in proceeds from sales of property and equipment. Capital expenditures were $7.1 million for the six months ended June 30, 2009 and $4.5 million for the six months ended June 30, 2008 due to the opening of three new theatres in the first half of 2009 as compared to no theatre openings in the first half of 2008. Net cash used in financing activities was $17.2 million for the six months ended June 30, 2009 compared to $12.2 million for the six months ended June 30, 2008. The increase in our net cash used in financing activities is primarily due to $15 million of unscheduled prepayments of long-term debt for the six months ended June 30, 2009 compared to $5 million for the six months ended June 30, 2008. Our financing activities include $4.5 million of dividends paid during the six months ended June 30, 2008.

Read the The complete ReportCKEC is in the portfolios of John Keeley of Keeley Fund Management.

Rating: 3.7/5 (7 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