Carmike 3rd-quarter earnings slip
Carmike's revenue rose 6.2% to $128.7 million, with the growth coming equally from admissions revenues and concessions. But Carmike's film and theater costs rose as well, wiping out earnings growth.
Carmike had been hoping for a stronger quarter after a weak opening to summer in the second quarter, although the exhib signaled Sept. 3 that the third quarter would not be as strong as hoped. As a result, Wall Street did not react and Carmike stock closed unchanged at $32.18.
Carmike CEO Michael Patrick said in a statement Tuesday "the quarter was clearly disappointing" as Carmike, like other exhibs, had been anticipating a turnaround from last year's Olympic Games-affected third quarter.
"But film product did not yield enough strength to achieve our objectives," Patrick said. He added that the holiday season "looks more promising with several blockbuster holiday releases including "Titanic," "Tomorrow Never Dies" and "Starship Troopers." "
