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Summer Box Office Slump Catches Up With Carmike in Q2

Adjusted profits down nearly 73 percent over last year

Carmike Cinemas came in below Wall Street expectations in its second-quarter earnings report.

The company reported a Q2 operating revenue of $204.7 million, down just under 7 percent from a year ago during the same period. That’s just shy of expert estimates, who predicted $209.4 million on average.

The company experience a deeper profit loss than the same period last year of $1.6 million, or 7 cents a share — a year-over-year difference of just more than 14 percent.

That didn’t come anywhere close to industry predictions of a per-share profit of 14 cents.

On an adjusted basis, the company made a profit of $2.4 million, down nearly 73 percent from $8.8 million during the same period a year ago.

David Passman, Carmike Cinemas’ president and CEO, admitted in a statement Monday that 2016 has been “difficult” due to “the year-over-year comparison related to the record U.S. box office performance in the second quarter of 2015.”

Carmike stocks rose slightly by .49 percent to $30.48 in after-hours trading.

The Georgia-based theater company’s stock has risen nearly 22 percent this year, largely due to a dramatic uptick in early March when the company first announced its merger with AMC Theaters.

AMC’s pending acquisition of Carmike Cinemas was amended last week. Now, AMC will acquire Carmike for a combination of cash and stock worth roughly $1.2 billion.

It represents a premium of an estimated 32 percent over Carmike’s stock price on March 3, 2016 and an increase of 10.2 percent over AMC’s original cash offer of $30 per share.

In Q1, Carmike enjoyed a solid boost with a revenue that rose 11.9 percent to $206.2 million — meeting the average expectations exactly.

The Georgia-based company reported a significant rise in profit in Q1 of $2.2 million, or 9 cents a share, rising from a year-prior profit of $391,000, or 2 cents a share.

On an adjusted basis, the company reported a 22 cent profit per share, just shy of the average expectation of 23 cents based on a survey of analysts.

One reason for the company’s Q1 uptick: Ticket prices rose more than 8 percent to an average of $7.80. Attendance dropped .09 percent.

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