Carmike Cinemas Inc. (CKEC, Financial) filed Quarterly Report for the period ended 2010-06-30.
Carmike Cinemas Inc. has a market cap of $94.36 million; its shares were traded at around $7.31 with a P/E ratio of 16.61 and P/S ratio of 0.18. CKEC is in the portfolios of John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
Other theatre operating costs. Other theatre operating costs for the three months ended June 30, 2010 increased to $53.4 million as compared to $53.0 million for the three months ended June 30, 2009. The increase in our other theatre operating costs was primarily the result of an increase in salaries and wages expense, an increase in insurance costs and an increase in 3D equipment service charges partially offset by a decrease in repairs and replacements. Other theatre operating costs for the six months ended June 30, 2010 increased to $107.2 million as compared to $104.2 million for the six months ended June 30, 2009. The increase in our other theatre operating costs was primarily the result of an increase in taxes and licenses, an increase in salaries and wages expense, an increase in insurance costs and an increase in 3D equipment service charges which was partially offset by a reduction in repair and maintenance costs. Taxes and licenses were negatively impacted by the recording of sales and use taxes totaling approximately $1.0 million identified as a result of an audit. The underpayment of such taxes occurred in 2005 and 2006.
Interest expense, net. Interest expense, net for the three months ended June 30, 2010 increased 9% to $9.8 million from $8.7 million for the three months ended June 30, 2009. The increase was primarily related to a combination of an increase in interest rates partially offset by a decrease in the average debt outstanding. Interest income, included in interest expense net, was $16,000 for the three months ended June 30, 2010 as compared to $21,000 for the same period in 2009. Interest expense, net for the six months ended June 30, 2010 increased 5% from $17.8 million for the six months ended June 20, 2009 to $18.7 million. Interest costs were also negatively impacted due to the recording of interest costs of approximately $0.7 million associated with underpayment of sales and use taxes related to prior years.
The accompanying condensed consolidated statements of operations separately show the results from discontinued operations through the respective dates of the theatre closings. Assets and liabilities associated with the discontinued operations have not been segregated from assets and liabilities from continuing operations as they are not material. We recorded income from discontinued operations, net of tax benefit, for the three and six months ended June 30, 2010 of $154,000 and $111,000, respectively, as compared to a loss of $161,000 and $476,000 for the three and six months ended June 30, 2009. The results from discontinued operations include a gain of $260,000 and $301,000 for the three and six months ended June 30, 2010, respectively, on disposal of assets, net of taxes, and a loss on disposal of assets of $75,000 and $2,000 for the three and six months ended June 30, 2009, respectively.
At June 30, 2010, we had available borrowing capacity of $30 million under our revolving credit facility and approximately $18.4 million in cash and cash equivalents on hand as compared to $25.7 million in cash and cash equivalents at December 31, 2009. On January 27, 2010, we terminated our prior $50.0 million revolving credit facility and entered into our existing $30.0 million three year revolving credit facility. The material terms of our new revolving credit facility (including limitations on our ability to freely use all the available borrowing capacity) are described below in Credit Agreement and Covenant Compliance.
Net cash provided by operating activities was $17.5 million for the six months ended June 30, 2010 compared to cash provided by operating activities of $29.3 million for the six months ended June 30, 2009. This decrease in our cash provided by operating activities was due primarily to lower operating results and a reduction in accrued expenses and other liabilities as compared to the prior period. Net cash used in investing activities was $4.5 million for the six months ended June 30, 2010 compared to $5.3 million for the six months ended June 30, 2009. The decrease in our net cash used in investing activities is primarily due to a decrease in cash used for the purchases of property and equipment and a decrease in proceeds from sales of property and equipment. Capital expenditures were $5.6 million for the six months ended June 30, 2010 and $7.1 million for the six months ended June 30, 2009 primarily due to no theatres being under development in 2010. Net cash used in financing activities was $20.2 million for the six months ended June 30, 2010 compared to $17.2 million for the six months ended June 30, 2009. The increase in our net cash used in financing activities is primarily due to $20.0 million of unscheduled prepayments of long-term debt in the first six months of 2010 as compared to $5.0 million of unscheduled prepayments of long-term debt in the first six months of 2009 and the incurrence of $9.0 million of debt issuance costs in the first six months of 2010.
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Carmike Cinemas Inc. has a market cap of $94.36 million; its shares were traded at around $7.31 with a P/E ratio of 16.61 and P/S ratio of 0.18. CKEC is in the portfolios of John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
Highlight of Business Operations:
Total revenue decreased approximately 1.2% to $251.6 million for the six months ended June 30, 2010 compared to $254.7 million for the six months ended June 30, 2009, due to a decrease in total attendance from 26.5 million for the 2009 period to 24.3 million for the 2010 period partially offset by an increase in average admissions per patron from $6.44 for the 2009 period to $6.87 for the 2010 period and an increase in average concessions and other sales per patron from $3.21 for the 2009 period to $3.48 for the 2010 period.Other theatre operating costs. Other theatre operating costs for the three months ended June 30, 2010 increased to $53.4 million as compared to $53.0 million for the three months ended June 30, 2009. The increase in our other theatre operating costs was primarily the result of an increase in salaries and wages expense, an increase in insurance costs and an increase in 3D equipment service charges partially offset by a decrease in repairs and replacements. Other theatre operating costs for the six months ended June 30, 2010 increased to $107.2 million as compared to $104.2 million for the six months ended June 30, 2009. The increase in our other theatre operating costs was primarily the result of an increase in taxes and licenses, an increase in salaries and wages expense, an increase in insurance costs and an increase in 3D equipment service charges which was partially offset by a reduction in repair and maintenance costs. Taxes and licenses were negatively impacted by the recording of sales and use taxes totaling approximately $1.0 million identified as a result of an audit. The underpayment of such taxes occurred in 2005 and 2006.
Interest expense, net. Interest expense, net for the three months ended June 30, 2010 increased 9% to $9.8 million from $8.7 million for the three months ended June 30, 2009. The increase was primarily related to a combination of an increase in interest rates partially offset by a decrease in the average debt outstanding. Interest income, included in interest expense net, was $16,000 for the three months ended June 30, 2010 as compared to $21,000 for the same period in 2009. Interest expense, net for the six months ended June 30, 2010 increased 5% from $17.8 million for the six months ended June 20, 2009 to $18.7 million. Interest costs were also negatively impacted due to the recording of interest costs of approximately $0.7 million associated with underpayment of sales and use taxes related to prior years.
The accompanying condensed consolidated statements of operations separately show the results from discontinued operations through the respective dates of the theatre closings. Assets and liabilities associated with the discontinued operations have not been segregated from assets and liabilities from continuing operations as they are not material. We recorded income from discontinued operations, net of tax benefit, for the three and six months ended June 30, 2010 of $154,000 and $111,000, respectively, as compared to a loss of $161,000 and $476,000 for the three and six months ended June 30, 2009. The results from discontinued operations include a gain of $260,000 and $301,000 for the three and six months ended June 30, 2010, respectively, on disposal of assets, net of taxes, and a loss on disposal of assets of $75,000 and $2,000 for the three and six months ended June 30, 2009, respectively.
At June 30, 2010, we had available borrowing capacity of $30 million under our revolving credit facility and approximately $18.4 million in cash and cash equivalents on hand as compared to $25.7 million in cash and cash equivalents at December 31, 2009. On January 27, 2010, we terminated our prior $50.0 million revolving credit facility and entered into our existing $30.0 million three year revolving credit facility. The material terms of our new revolving credit facility (including limitations on our ability to freely use all the available borrowing capacity) are described below in Credit Agreement and Covenant Compliance.
Net cash provided by operating activities was $17.5 million for the six months ended June 30, 2010 compared to cash provided by operating activities of $29.3 million for the six months ended June 30, 2009. This decrease in our cash provided by operating activities was due primarily to lower operating results and a reduction in accrued expenses and other liabilities as compared to the prior period. Net cash used in investing activities was $4.5 million for the six months ended June 30, 2010 compared to $5.3 million for the six months ended June 30, 2009. The decrease in our net cash used in investing activities is primarily due to a decrease in cash used for the purchases of property and equipment and a decrease in proceeds from sales of property and equipment. Capital expenditures were $5.6 million for the six months ended June 30, 2010 and $7.1 million for the six months ended June 30, 2009 primarily due to no theatres being under development in 2010. Net cash used in financing activities was $20.2 million for the six months ended June 30, 2010 compared to $17.2 million for the six months ended June 30, 2009. The increase in our net cash used in financing activities is primarily due to $20.0 million of unscheduled prepayments of long-term debt in the first six months of 2010 as compared to $5.0 million of unscheduled prepayments of long-term debt in the first six months of 2009 and the incurrence of $9.0 million of debt issuance costs in the first six months of 2010.
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