IRVING, TX -- CEC Entertainment Inc., parent company of the Chuck E. Cheese's chain, said its 2012 second-quarter net income declined 37.3% to $4.1 million, compared with $6.5 million for the second quarter of 2011. Comparable store earnings fell 2.4%.
CEC's total second-quarter revenue decreased 2%, or $3.8 million, to $182.4 million, compared with $186.2 million for the same period a year ago.
For the first six months of 2012, CEC's total revenue decreased 3%, or $13.4 million, to $429.2 million, compared with $442.6 million for the first six months of 2011. The decrease in total revenue was primarily related to a 3.4% decrease in comparable store sales, slightly offset by additional revenues generated by new stores, the company said.
CEC chief executive Michael Magusiak said the company is well positioned for future growth thanks to stronger marketing and better pricing, including more discount packages.
In the second quarter, diluted earnings per CEC share decreased to 23¢ from 34¢ for the second quarter of 2011. The decline was primarily related to the decrease in net income.
In July, CEC gave its Chuck E. Cheese a facelift and launched new marketing campaign for kids. | SEE STORY
Magusiak said a second campaign, targeting mothers, will commence at the end of August.
CEC and its franchisees operate 560 Chuck E. Cheese's pizzeria-arcade stores located in 48 states and eight foreign countries or territories.
On July 31, the company’s board of directors declared a cash dividend of 22¢ a share. The dividend will be paid on Oct. 4 to stockholders of record as of Sept. 6.