Welcome!

News Feed Item

Carmike Cinemas’ First Quarter Revenue Rises 22.9% to $158.9 Million

Carmike Cinemas, Inc. (NASDAQ: CKEC):

 
Webcast/Conference Call TODAY, Monday, May 5 at 5:00 p.m. ET
 
WEBCAST LINK:

www.carmikeinvestors.com (archived for 30 days)

 
CALL DIAL-IN: 800/920-2977 or 212/231-2920 (international callers)
 
CALL REPLAY: 800/633-8284 or 402/977-9140, passcode: 21714378 (through May 12)
 

Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today reported results for the three-month period ended March 31, 2014, as summarized below.

           

SUMMARY FINANCIAL DATA

(unaudited)

 

Three Months Ended
March 31

(in millions) 2014     2013
Total operating revenues $ 158.9     $ 129.3
Operating income 8.1 3.4
Interest expense 13.1 12.3
Theatre level cash flow (1) 27.5 22.7
Net loss (3.2 ) (5.8 )
Adjusted net loss (1) (2.6 ) (3.6 )
Adjusted EBITDA (1) 20.7 17.2
 
(in millions) Mar. 31, 2014 Dec. 31, 2013
Total debt(1) $ 453.7 $ 455.3
Net debt(1) $ 319.8 $ 311.4
(1)   Theatre level cash flow, adjusted net loss, adjusted EBITDA, total debt and net debt are supplemental non-GAAP financial measures. Reconciliations of theatre level cash flow and adjusted EBITDA to net income and adjusted net income to net income for the three months ended March 31, 2014 and 2013, as well as a schedule of total debt and net debt as of March 31, 2014 and December 31, 2013, are included in the supplementary tables accompanying this news announcement.
 

“Carmike’s theatre circuit outperformed box office and attendance gains in Q1, as well as our 17th straight quarter of higher year-over-year concessions and other per patron spending,” stated David Passman, Carmike Cinemas’ President and Chief Executive Officer. “The Company’s per screen admissions revenue and attendance grew approximately 12% and 9%, respectively, versus the prior-year period. This compares to reported domestic industry box office revenue and attendance growth of approximately 6% and 5%, respectively, during the quarter.

“A more compelling, diverse and well-spaced film slate, versus the comparable period, positive contributions from the first full quarter of operating results from the nine theatres and 147 screens we acquired from Muvico in late 2013, as well as several recently opened Carmike locations, drove strong top line financial performance in Q1.

“Innovative concessions and promotional strategies combined with Carmike’s customer-centric focus on providing guests with an exceptional experience on every visit, continue to be key elements of our operating success. Concessions and other sales per patron increased over 8% to a Company record $4.52 in Q1 2014, further underscoring our achievements.

“During the quarter, we announced plans to open three state-of-the-art theatres in Fayetteville, NC, Spring Hill, TN and Traverse City, MI. We have a total of six announced locations under construction. Subsequent to quarter-end, we also completed a remodel of our Mount Lebanon, PA theatre in the Pittsburgh suburbs and opened the Tiger 13 in Opelika, AL, not far from the Auburn University campus. There are a number of other new-builds in the planning or advanced negotiations stages. We continue to actively search for acquisitive and organic growth opportunities that will help us achieve our circuit expansion target.

“Today’s announcement by National CineMedia to acquire Screenvision, of which Carmike owns approximately 19%, represents the successful culmination of nearly three years of incredibly hard work by Screenvision’s management team, associates, partners and owners. We are pleased to be joining the NCM network in the near term, and look forward to working with Kurt Hall and the other members of the merged organization’s management team.

“We believe that Carmike is well positioned to capitalize on future opportunities for circuit growth. Our balance sheet continues to strengthen and we have ample cash balances on hand with a very manageable debt level. In addition, our operating results continue to improve as evidenced by our significant year over year Q1 growth in operating income and bottom line results. We consider the recent ratings upgrade of our senior secured notes further recognition of the continued improvement in our financial position as we continue to identify and act on growth opportunities in 2014,” concluded Mr. Passman.

       

THEATRE PERFORMANCE STATISTICS
(unaudited)

 
Three Months Ended March 31
2014     2013
Average theatres 252 246
Average screens 2,660 2,480
Average attendance per screen(1) 5,104 4,687
Average admissions per patron(1) $ 7.19 $ 7.02
Average concessions/other sales per patron(1) $ 4.52 $ 4.18
Total attendance (in thousands)(1) 13,578 11,620
Total operating revenues (in thousands) $ 158,924 $ 129,283
(1)   Includes activity from theatres designated as discontinued operations and reported as such in the consolidated statements of operations.
 

Carmike Cinemas’ Chief Financial Officer Richard B. Hare stated, “Carmike generated another quarter of solid results, including increases in box office receipts of 20.4%, concessions and other revenue of 27.2% and total operating revenues of 22.9%. Average Q1 admissions per patron increased 2.4% to $7.19, while average concessions and other revenue per patron rose 8.1% to an all-time quarterly record of $4.52. In aggregate, during the 2014 first quarter Carmike guests spent $11.71 per visit to our entertainment complexes, also a record level.

“Carmike’s Q1 2014 film exhibition costs as a percentage of admissions revenues was 54.2%, compared to 53.1% in Q1 2013. The increase was largely due to higher film rent associated with top tier films compared to the year-ago period. Concession costs as a percentage of concessions and other revenue decreased from 12.3% in the first quarter of 2013 to 11.6% due primarily to a decrease in discount and other promotional activities.

“In an effort to enhance visibility into our theatre operating costs, we are now reporting separate line items for salaries and benefits, theatre occupancy costs and other operating costs on our consolidated statement of operations. These were previously included in other theatre operating costs. Salaries and benefits rose $3.2 million to $21.5 million and theatre occupancy costs rose $5.1 million to $20.4 million in Q1 2014 due primarily to recent acquisitions and new-builds. Other theatre operating costs were $29.4 million, compared to $23.8 million in the 2013 period, due primarily to incremental operating expenses resulting from our expanded circuit.

“General and administrative expenses were $7.5 million, versus $6.0 million in the 2013 period, partially due to outside professional fees. As expected, quarterly interest expense rose to $13.1 million, due principally to the assumption of long-term lease obligations associated with the acquired Muvico screens.

“Carmike’s Adjusted EBITDA rose 20.0% to $20.7 million and theatre level cash flow increased 21.3% to $27.5 million. At quarter-end we had $319.8 million of net debt, versus $311.4 million at December 31, 2013, reflecting an aggregate of capital leases and long-term financing obligations, plus senior notes. Carmike's quarter-ending balance sheet included cash of $133.9 million. Our top priority for cash deployment remains circuit growth,” concluded Mr. Hare.

Supplemental Financial Measures

Theatre level cash flow, EBITDA, adjusted EBITDA, adjusted net income, total debt and net debt are supplemental non-GAAP financial measures used by Carmike to evaluate its operating performance. Carmike defines theatre level cash flow as adjusted EBITDA, as defined below, plus general and administrative expenses. Carmike believes that theatre level cash flow is an important supplemental measure of operating performance for a motion picture exhibitor’s operations because it provides a measure of the core operations, rather than factoring in items such as general and administrative expenses and depreciation and amortization, among others. In addition, Carmike believes that theatre level cash flow, as defined, is a widely accepted measure of comparative operating performance in the motion picture exhibition industry. Adjusted net loss is defined as net loss plus impairment of long-lived assets, merger and acquisition-related expenses, lease termination charges, and (gain) loss on sale of property and equipment, net of tax. Carmike believes adjusted net income is an important supplemental measure of operating performance for a motion picture exhibitor because it provides a measure of core operations. Total debt is defined as the sum of current maturities of capital leases and long-term financing obligations, long-term debt and capital leases and long-term financing obligations (less current maturities). Net debt is defined as total debt less cash and cash equivalents. EBITDA is defined as net income plus income tax benefit, interest expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus loss from unconsolidated affiliates, loss from discontinued operations, merger and acquisition-related expenses, lease termination charges, (gain) loss on sale of property and equipment, and impairment of long-lived assets. Carmike believes that EBITDA and adjusted EBITDA are important supplemental measures of operating performance for a motion picture exhibitor’s operations because they provide measures of core operations.

About Carmike Cinemas (www.carmike.com)

Carmike Cinemas, Inc. is a U.S. leader in digital cinema, 3-D cinema deployments and one of the nation's largest motion picture exhibitors. The Company has 253 theatres with 2,670 screens in 37 states. The circuit includes 38 premium large format auditoriums featuring state-of-the-art technology and luxurious seating, including 23 "BigDs," 13 IMAX auditoriums and two MuviXL screens. As "America's Hometown Theatre Chain," Carmike's primary focus is mid-sized communities.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs, expectations and future performance, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words, “believes,” “expects,” “anticipates,” “plans,” “estimates,” “seeks” or similar expressions. Examples of forward-looking statements in this press release include the Company’s expectations regarding box office performance, food and beverage strategies, circuit expansion, second quarter performance, the upcoming film slate, additional acquisition opportunities and the Company’s ability to complete future transactions. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of management, which in turn are based on currently available information. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include, but are not limited to: the ability of National CineMedia to secure approvals and satisfy conditions necessary to complete the acquisition of Screenvision; our ability to achieve expected results from our strategic acquisitions, general economic conditions in our regional and national markets; our ability to comply with covenants contained in our senior secured credit agreement and the indenture governing our 7.375% Senior Secured Notes due 2019; our ability to operate at expected levels of cash flow; financial market conditions including, but not limited to, changes in interest rates and the availability and cost of capital; our ability to meet our contractual obligations, including all outstanding financing commitments; the availability of suitable motion pictures for exhibition in our markets; competition in our markets; competition with other forms of entertainment; and other factors, including the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013, under the caption “Risk Factors.” We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

             

CARMIKE CINEMAS, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

 
Three Months Ended

March 31

  2014     2013  
 
Revenues: (Unaudited) (Unaudited)
Admissions $ 97,572 $ 81,055
Concessions and other   61,352     48,228  
 
Total operating revenues 158,924 129,283
 
Operating costs and expenses:
Film exhibition costs 52,889 43,016
Concession costs 7,119 5,929
Salaries and benefits 21,534 18,359
Theatre occupancy costs 20,361 15,214
Other theatre operating costs 29,382 23,798
General and administrative expenses 7,498 6,015
Lease termination charges 3,063
Depreciation and amortization 11,771 10,201
(Gain) loss on sale of property and equipment (67 ) 80
Impairment of long-lived assets   358     192  
 
Total operating costs and expenses   150,845     125,867  
 
Operating income 8,079 3,416
Interest expense   13,116     12,298  
 

Loss before income tax and income from unconsolidated affiliates        

(5,037 ) (8,882 )
Income tax benefit (2,010 ) (4,251 )
Loss from unconsolidated affiliates   (85 )   (1,015 )
 
Loss from continuing operations (3,112 ) (5,646 )
Loss from discontinued operations   (52 )   (137 )
 
Net loss $ (3,164 ) $ (5,783 )
 
Weighted average shares outstanding:
Basic 22,821 17,547
Diluted 22,821 17,547
 
Net income per common share (Basic and Diluted):
Loss from continuing operations $ (0.14 ) $ (0.32 )
Loss from discontinued operations, net of tax       (0.01 )
 
Net loss per common share $ (0.14 ) $ (0.33 )
         

CARMIKE CINEMAS, INC. and SUBSIDIARIES
SUPPLEMENTARY NON-GAAP RECONCILIATIONS

 

THEATRE LEVEL CASH FLOW AND ADJUSTED EBITDA (Unaudited)
($ in thousands)

 
 

Three Months Ended
March 31,

  2014         2013  
 
(Unaudited) (Unaudited)
Net loss $ (3,164 ) $ (5,783 )
Income tax benefit (2,010 ) (4,251 )
Interest expense 13,116 12,298
Depreciation and amortization   11,771     10,201  
 
EBITDA 19,713 12,465
Loss from unconsolidated affiliates 85 1,015
Loss from discontinued operations (52 ) (137 )

(Gain) loss on sale of property and equipment                                     

(67 ) 80
Impairment of long-lived assets 358 192
Lease termination charges 3,063
Merger and acquisition-related expenses   614     531  
 
Adjusted EBITDA $ 20,651   $ 17,209  
 
General and administrative expenses   6,884     5,484  
 
Theatre level cash flow $ 27,535   $ 22,693  
         

TOTAL DEBT AND NET DEBT (Unaudited)
($ in thousands)

 
Mar. 31, 2014 Dec. 31, 2013
Current maturities of capital leases and long-term financing obligations $ 7,231 $ 6,870
Long-term debt 209,637 209,619
Capital leases and long-term financing obligations, less current maturities   236,804     238,763  
 
Total debt $ 453,672 $ 455,252
Less cash and cash equivalents   (133,910 )   (143,867 )
 
Net debt $ 319,762   $ 311,385  
       

ADJUSTED NET INCOME (Unaudited)
($ in thousands)

 

Three Months Ended
March 31,

  2014         2013  
 
(Unaudited) (Unaudited)
Net loss $ (3,164 ) $ (5,783 )
Impairment of long-lived assets 358 192

(Gain) loss on sale of property and equipment                                        

(67 ) 80
Lease termination charges 3,063
Merger and acquisition-related expenses 614 531
Tax effect of adjustments to net loss   (389 )   (1,662 )
 
Adjusted net loss(1) $ (2,648 ) $ (3,579 )
 
Weighted average shares outstanding (basic) 22,821 17,547
Weighted average shares outstanding (diluted) 22,821 17,547
Adjusted net loss per share (basic and diluted) $ (0.12 ) $ (0.20 )
(1)   Adjustments to net loss for the three months ended March 31, 2014 and 2013 are shown net of tax effect of 43.0% which represents the estimated combined federal and state tax rates for each period.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.