Carmike Cinemas Inc. sank in the third quarter after a $17.2 million impairment charge.
The Columbus, Georgia-based cinema owner and operator (NASDAQ:
CKEC) reported a net loss of $20.7 million and a loss of $1.63 per share, compared with a net loss of $203,000 and a loss per share of 2 cents in the second quarter of 2008.
The results for the third quarter of 2009 included a $17.2 million non-cash asset impairment charge, primarily due to the entrance of competition in certain markets, a decline in the market value of 35mm projectors and a write-off of surplus equipment.
Third-quarter revenue was virtually flat at $124.4 million.
The average admission per patron was up 23 cents to $6.46. Average concessions per patron were down 5 cents to $3.17, and total attendance was down 316,000 to 12,713,000.
Carmike Cinemas President and CEO David Passman said, “The beginning of the third quarter was weak at the box office compared to the same period in 2008, but receipts improved as the quarter progressed based on the strengthening of the film slate.” Carmike’s Q3 admissions revenue rose 1.8% compared to a 0.6% decline for the industry.