Carmike's cash increases, debt decreases in Q2; company seeks acquisitions, but not 'fixer-uppers'

By Lisa Kerner

Charlotte, N.C., July 22 - Carmike Cinemas, Inc. ended the second quarter with revenue up 25.8% from the prior-year period to a record $170.5 million. The growth was driven by an 18.8% increase in attendance as well as by concessions, said chief financial officer Richard Hare during the company's earnings conference call on Monday.

"Our cash and cash equivalent balance at the end of the quarter totaled $83.7 million, compared to $68.5 million at 2012 year-end. The company's net debt level at quarter-end was $349.3 million, including capital leases and long-term financing obligations plus our senior notes, versus $366.2 million at year-end 2012," Hare said.

Total debt outstanding at quarter-end including capital leases and long-term financing obligations was $433 million, down slightly from $434.7 million, at year-end.

"As expected, interest expense rose to $12.3 million, up from $8.6 million in the year-ago quarter, due to a combination of higher fixed quarterly interest charges resulting from the refinancing of our restrictive term loan with the $210 million notes issued last quarter and new capitalized lease obligations assumed with the Rave (Reviews Cinemas, LLC) acquisition," said Hare.

Carmike's theater-level cash flow rose 35% to $39.8 million, and adjusted EBITDA increased 39.8% to $34 million for the second quarter. Adjusted EBITDA margin rose to 20%, versus 18% in the prior-year period.

Chief executive officer David Passman said that Carmike is committed to reaching its goal of 300 theaters and 3,000 screens through "select, accretive acquisitions."

"We are not seeking fixer-uppers or turnaround projects," Passman said.

As of June 30, Carmike had 245 theaters with 2,476 screens across 35 states.

Also on Monday, Carmike announced an offering of 4.5 million shares of its common stock. Net proceeds will be used for potential acquisitions, working capital, capital expenditures or other general corporate purposes.

Carmike is a motion picture exhibitor based in Columbus, Ga.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.