AMC, trying to buy Carmike Cinemas, reports tumbling revenues and profits in quarter

AMC Entertainment Holdings, the company courting Carmike Cinemas with a $1.2 billion purchase agreement, on Monday morning reported that its revenues — including sales of tickets, food and beverages — tumbled in the second quarter of this year.

Its bottom line profit came in at $24 million, down about 45 percent from $43.9 million in the same April-June period a year ago.

Carmike, headquartered in downtown Columbus, issued its second-quarter report after the stock markets closed Monday, reporting a $1.6 million loss on operating revenues of $204.7 million.

Adam Aron, president and chief executive officer of Leawood, Kan.-based AMC, which operates AMC Theatres, chalked up the poor performance to a “lackluster film slate” that has hurt box office results nationwide, with revenue down nearly 11 percent per screen compared to a year ago.

On the other hand, Aron said in an earnings release, the firm’s theater revenue picture already appears to be improving and setting up a “potentially record-setting film slate” in calendar year 2017. He also touted upgrades in premium facilities at AMC movie houses, enhanced food offerings and a “revamped” loyalty program for its own patrons.

The CEO also mentioned AMC’s recent agreement to buy Europe-based Odeon & UCI Cinemas and its sweetened merger deal with Carmike Cinemas that gives stock owners $33.06 per share of common stock, up from $30 per share, or just over one share of AMC stock, if and when the acquisition is completed.

“When either of these acquisitions close, AMC then becomes overnight the largest movie exhibitor in the world,” Aron said. “Taken together, this level of activity and progress is almost breathtaking, enabling AMC to be uniquely positioned to deliver additional value to our guests, associates and shareholders.”

Carmike, which has postponed special shareholder votes a handful of times, has yet to reschedule one with AMC’s latest offer.

Aside from the profit number, AMC reported Monday that total revenues dropped about 7 percent, from $821.1 million to $764 million, in the second quarter. Admissions, or ticket sales, were down from $533.4 million to $481.2 million. Food and beverage revenues were down from $250.5 million to $243.5 million.

The performance is better through the first half of 2016, however, with revenues up nearly 4 percent to $1.53 billion, ticket sales up 1.2 percent to $963.8 million, and food and beverage sales up about 8 percent to $487.7 million. Those calculate to a $52.3 million profit for January through June, a 4.4 percent increase over the same six months a year ago, when the firm’s profit was $50.1 million.

This story was originally published August 1, 2016 at 12:51 PM with the headline "AMC, trying to buy Carmike Cinemas, reports tumbling revenues and profits in quarter."