Friday, motion picture exhibitor Cinemark Holdings Inc. (CNK) reported an increase in profit for the second quarter, helped by higher revenues as well as lower taxes and interest expenses. However, on a per share basis, earnings missed analysts' estimates.
Commenting on the results, Alan Stock, chief executive officer, said, "Our strong start to the year accelerated during the second quarter as we benefited from a solid slate of films and outperformed the overall domestic industry box office results. In addition, our international attendance growth continues to outpace U.S. attendance growth."
For the quarter, net income attributable to the company was $18.67 million or $0.17 per share, up from $15.52 million or $0.14 per share in the prior-year quarter. Net income for the quarter included a loss on early retirement of debt of about $26.8 million, before income taxes.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter increased 13.2% to $517.51 million from $457.23 million a year earlier. Analysts estimated revenues of $492.55 million for the quarter.
For the quarter, revenue from Admissions increased 15.2% to $339.09 million from $294.43 million a year ago. Concession revenue was $158.93 million, up from $141.47 million, while other revenue declined to $19.49 million from $21.34 million in the previous-year quarter.
The company noted that attendance for the three months ended June 30 increased by 14.4%, compared with the year-ago quarter.
For the quarter, the company's income taxes decreased to $4.32 million from $11.84 million last year. Interest expense lowered to $25.65 million from $30.06 million in the comparable quarter a year earlier.
On June 30, the company's aggregate screen count was 4,889. As of June 30, Cinemark had signed commitments to open four new theaters with 34 screens by the end of 2009 and open eight new theaters with 92 screens subsequent to 2009.
For the six-month period, net income attributable to the company was $36.24 million or $0.33 per share, higher than $20.77 million or $0.19 per share in the previous year. Year-to-date, total revenues increased to $943.31 million from $858.25 million last year.
CNK is currently trading at $10.75, up 0.84%, on the NYSE.
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