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Cinemark Beats Wall Street Expectations, Keeps Mum on Aurora Shooting Details

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The company reported Q2 EPS of $0.45.

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MINYANVILLE ORIGINAL Cinemark Holdings (CNK) reported a 27.7% rise in profits in the second quarter, thanks to higher admissions and concessions revenue.

The movie theater chain, which is the third largest in the US behind Regal Entertainment (RGC) and AMC Theatres, saw net income go up from $40.4 million a year ago to $51.6 million, or $0.45 per share. The consensus estimate was a profit of $0.38 per share.

Second quarter revenue was up 5% to $649.6 million, beating the $630.7 million predicted by analysts polled by Thomson Reuters.

In the US, admissions fell 4.3% to $42 million, though the corresponding drop in admissions revenue (-1.4%) was softened thanks to a 3% increase in ticket prices.

Despite the US dip, overall admissions revenue, the largest top-line contributor for Cinemark, was up 3% to $418.1 million, with global attendance gaining 4.1%, thanks to a strong performance in Latin America, where the company has a large presence.

Total concessions revenue also spiked 6.4% to $201.4 million. In North America, the average movie-goer purchased $3.38 worth of concessions, an increase of 6% from last year.

Cinemark has now exceeded expectations for two straight quarters. In the first quarter, its net income was $0.37 per share, compared to the consensus of $0.34.

On a call today addressing second quarter results, Cinemark CEO Tim Warner also spoke about the tragic shooting in Aurora, CO, last month.

"We would like to thank and acknowledge the endeavors of all those who acted with immense strength and bravery in assisting the victims, including patrons, our employees, the police department, the emergency crew responders, and the area hospitals that treated the victims," he said, according to The Hollywood Reporter. "We are also grateful for the governmental leadership, including the governor's, the chief of staff, the mayor of Aurora, the chief of police, and the many charitable and business organizations providing assistance."

However, Warner did not provide new information on the shooting, requesting analysts not to ask questions on the topic and saying, "Out of respect for the victims and their families, we will not be addressing any details regarding the tragedy or our specific efforts."

According to a report filed by the Denver Post, a spokesperson of Cinemark's attorney declined to say whether the exit doors of the theater where the shootings took place were equipped with alarms.

Twitter: @sterlingwong
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No positions in stocks mentioned.
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