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
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...