Cineplex Inc. says its second quarter profits fell 39.4% as it booked a series of one-time charges related to its conversion from an income fund to a corporation in January.
The exhibitor said Thursday that net income was $13.4 million, compared to a profit of $22.2 million in the same period a year ago.
The results were affected by a $9.3-million increase in income tax expenses as well as a $4.4 million change in the fair value of financial instruments related to its conversion to a corporation.
It also booked a $2.2 million share of loss of joint ventures related to the start-up of the Canadian Digital Cinema Partnership.
Despite the weaker results, quarterly ticket sales at the box-office actually increased 5.2% to $151.1 million driven by several hit movies.
Attendance grew 3.8% in the quarter, helped by interest in blockbusters like Pirates of the Caribbean: On Stranger Tides and The Hangover 2.
Concession revenues grew 5.5% to $76.2 million.
Total revenue was $258.4 million, up from $242.4 million and attendance grew 3.8%in the quarter to 17.2 million.
In the same period last year a string of early summer box-office flops, including The A-Team and Ashton Kutcher’s action-comedy Killers, put the squeeze on results.
Cineplex Galaxy converted from an income fund to a corporation in January and operates Cineplex Entertainment, which runs 130 theatres located from British Columbia to Quebec with about 1,351 screens that include digital projectors, Imax screens and its UltraAVX screen and sound systems.
The company has about 10,000 employees under its numerous brands which include Cineplex Odeon, Galaxy, Famous Players, Colossus, SilverCity and Scotiabank theatres.
