Carmike Cinemas Inc fka CKEC

[Enterprising Investor]

Loss on extinguishment of debt produces $1.5 loss million in 2Q15.

Carmike recorded non-recurring loss on extinguishment of debt charges of $17.6 million in the second quarter of 2015 for the write-off of unamortized debt issuance costs, including a prepayment penalty of $11.6 million related to the termination of its existing senior secured notes. The refinancing is expected to yield $1.7 million of annual interest expense savings through 2023.

Of course, a loss on extinguishment of debt is a non-recurring item. The company spent $17.6 million in the quarter to save $1.7 million per year over the next eight years.