CEC Entertainment, Inc., parent company of Chuck E. Cheese's, today announced its financial results for its second quarter ending July 3. Total revenues for the second quarter of 2011 increased $5.2 million, or 2.9 percent to $186.2 million from $181.0 million for the second quarter of 2010. The increase was primarily due to a weighted average net increase of approximately nine stores as compared to the second quarter of 2010, and a 0.3 percent increase in comparable store sales.
"During the first six months of 2011, we generated $111.6 million of operating cash flow," said Michael Magusiak, president and CEO.
Income
Net income for the second quarter ended July 3, 2011 increased to $6.5 million as compared to net income of $4.8 million for the second quarter of 2010. In addition, diluted earnings per share for the second quarter of 2011 was $0.34 as compared to diluted earnings per share of $0.22 for the second quarter of 2010. An unfavorable tax adjustment was recorded in the prior year of about $2.8 million, net of taxes, in connection with an Internal Revenue Service ("IRS") examination. In addition, diluted earnings per share benefitted from a repurchase of approximately 2.8 million shares of common stock since the beginning of the second quarter of 2010.
For the first six months of 2011, total revenues increased $15.3 million, or 3.6 percent, to $442.6 million as compared to $427.3 million for the first six months of 2010. The increase was primarily due to a weighted average net increase of about eight stores and a 0.8 percent increase in comparable store sales.
Net income for the first six months of 2011 increased to $40.6 million as compared to $38.6 million for the first six months of 2010. In addition, diluted earnings per share for the first six months of 2011 was $2.06 as compared to diluted earnings per share of $1.77 for the first six months of 2010. In addition, diluted earnings per share benefitted from repurchase of about 3.2 million shares of CEC common stock since the beginning of fiscal year 2010.
Dividends
On May 3, the company's Board of Directors declared a cash dividend of $0.20 per share that was paid on July 7 to stockholders. The board also declared a cash dividend of $0.20 per share on Aug. 2 to be paid on Oct. 6, 2011 to stockholders.
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