AMC Entertainment Profit Climbs
April 29 2016 - 7:30AM
Dow Jones News
AMC Entertainment Holdings Inc., in the midst of a deal to merge
with Carmike Cinemas Inc., reported better-than-expected profit in
the latest quarter as revenue rose sharply.
The company benefited from its recent acquisition of Starplex
Cinemas in December, Chief Executive Adam Aron said, adding that
the Starplex transaction as well as the Carmike acquisition "should
further serve to significantly accelerate the pace of our growth"
at the company.
For the first three months of the year, AMC said it logged
admissions revenue of $482.6 million compared with $418.7 million
in the prior-year period, as average ticket price climbed to $9.42
from $9.35. Both admission revenue and average ticket price
increased to first-quarter records, the company said.
Food and beverage revenues rose to $244.2 million from $200.5
million. Food and beverage revenues per patron increased 6.3% to
$4.76, which AMC was its highest ever.
AMC said last month it agreed to buy Carmike Cinemas in a deal
worth about $1.1 billion, including debt, that would form the
world's largest movie-theater chain. The chief executives from both
companies told The Wall Street Journal this month that the
transaction is moving through a Justice Department antitrust review
despite continued shareholder scrutiny. The CEOs said they saw the
deal closing by the end of the year.
AMC has roughly 5,400 screens, while Carmike has more than
2,900.
Over all, AMC posted a profit of $28.3 million, or 29 cents a
share, compared with $6.1 million, or six cents a share, a year
ago. Excluding items, AMC earned 27 cents a share compared with a
loss of a nickel a year ago.
Revenue climbed 17% to $766 million. Analysts polled by Thomson
Reuters had expected per-share earnings of 21 cents on $769 million
in revenue.
Shares, up 30% in the past three months, were unchanged
premarket from Thursday's close at $28.33.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
April 29, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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