The company’s net income for the second quarter ended June 27, 2013 was $36.1 million, compared to $37.2 million in the second quarter of 2012. Second quarter net income was affected by a $19.4 million after-tax loss on extinguishment of debt. Adjusted (for one-time events) diluted EPS was $0.36 for the second quarter of 2013 compared to $0.25 for the second quarter of 2012. According to CEO Amy Miles, Regal’s second quarter results reflected the successful integration of recent acquisitions which helped raise admissions revenue .
Cinemark achieves box-office revenue record
Cinemark Holdings, Inc. (NYSE:CNK) is the third largest theater operator in the U.S. with 332 theaters and 4,434 screens. Unlike AMC and Regal, the company operates theaters in Latin America — a total of 172 theaters and 1,360 screens in 13 countries. Cinemark Holdings, Inc. (NYSE:CNK) has a strong presence in Latin America and occupies 14 of the top 15 metropolitan areas as of December 2012 .
Cinemark Holdings, Inc. (NYSE:CNK)’s second quarter results ended June 30 showed net income of $20.3 million and included a pre-tax loss on early retirement of debt worth $72.3 million. These results compare to net income for 2012’s second quarter of $51.6 million. Diluted EPS for the current second quarter was $0.18 compared to $0.45 for the same period last year. CEO Tim Warner commented that second quarter revenues were an all-time box office record of $3 billion, up almost 8% from 2012. Cinemark Holdings, Inc. (NYSE:CNK) also achieved record worldwide admissions revenues of $464.5 million, up 11.1% .
My foolish conclusion
As AMC begins selling shares to investors, it should not lose sight of how the revenues of movie theater operators are being challenged. The wide variety of movie content delivery options that are available to movie watchers, often below the price of a movie ticket, also affects rivals Regal Entertainment Group (NYSE:RGC) and Cinemark Holdings, Inc. (NYSE:CNK). Fool contributor Rich Duprey discusses in another post the additional services and tactics movie operators use to give moviegoers a better experience while charging higher prices . . But prices can’t rise forever before a drop in demand occurs.
At a recent event at the University of Southern California, directors Steven Spielberg and George Lucas talked about a future when movie ticket prices will have greater variation. Lower-budget movies, like Lincoln, will carry a lower ticket price than bigger budget movies, like Ironman 3 . It will be interesting to see the effect this will have on the movie industry, movie theater operators and patrons.
The article Break Out the Popcorn! AMC Is Going Public originally appeared on Fool.com and is written by Eileen Rojas.
Eileen Rojas has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
