Carmike Cinemas Inc. Delivers Strong First Quarter 2004 Revenues and Theatre Level Cash Flow; First Ever Dividend Declared
COLUMBUS, GA -- 05/12/2004 -- Carmike Cinemas, Inc. (NASDAQ: CKEC) (the
"Company") reported today its revenues for the three months ended March 31,
2004 were up 13.3% to $116.9 million compared to $103.2 million for the
three months ended March 31, 2003. Admission revenues for the three months
ended March 31, 2004 increased 15.0% while concession and other revenues
increased 9.8%. Expenses for the three months ended March 31, 2004 were
$98.1 million, an increase of 11.2%, compared to $88.2 million for the
three months ended March 31, 2003. Operating income increased 26.0% to
$18.9 million for the three months ended March 31, 2004 compared to $15.0
million for the three months ended March 31, 2003.
Driven by strong movie product and stable expenses, theatre level cash flow
for the three months ended March 31, 2004 reached $30.6 million, up 29.7%
from $23.6 million for the three months ended March 31, 2003.
During the first quarter of 2004, the Company successfully completed a
recapitalization through a public offering of three million primary shares
of common stock and a restructuring of its long-term debt. This
recapitalization strengthened the Company's balance sheet, lowered interest
rates, and provided greater flexibility for capital spending. As of March
31, 2004, the Company had total debt outstanding, including capital leases,
of $302.7 million and net debt of $276.1 million, which represents the
lowest debt levels of the Company since 1996. In connection with this
recapitalization, the Company expensed $9.6 million, including a $1.8
million write-off of fees related to the Company's previous debt and a $7.8
million premium paid to retire its previous senior subordinated notes.
The Company's Board of Directors declared its first-ever quarterly dividend
of $0.175 per share on March 31, 2004. The dividend is payable on August
2, 2004 to shareholders of record as of July 15, 2004.
"We are very pleased with our financial performance this quarter. The
popularity of 'The Passion of the Christ,' along with our continued focus
on operating costs and corporate overhead, has helped make this a
successful quarter," stated Martin A. Durant, Chief Financial Officer. "We
are excited to have completed the restructuring of our balance sheet and to
be able to return capital to our shareholders through our newly instituted
dividend policy."
Carmike will hold its first quarter 2004 earnings conference call on
Friday, May 14, 2004 at 11:00 a.m. (ET). This call is being webcast by
CCBN and can be accessed at our website, www.carmike.com, at the Corporate
Information link. For those not able to listen during the live webcast, the
audio re-play of the webcast will be available on our website,
www.carmike.com, at the Corporate Information link until June 15, 2004.
Carmike Cinemas, Inc. is a premier motion picture exhibitor in the United
States with 291 theatre locations and 2,219 screens in 35 states, as of
March 31, 2004. Carmike's focus for its theatre locations is small to
mid-sized communities across the United States. More than 80% of its
theatres are located in communities with populations of fewer than 100,000.
Carmike Cinemas, Inc.'s Common Stock is traded on the Nasdaq National
Market under the ticker symbol "CKEC." For more information visit Carmike
Cinemas' website, www.carmike.com.
Total debt, net debt and theatre level cash flows are supplemental non-GAAP
financial measure used by Carmike to evaluate its operating performance.
Total debt is defined as the sum of long-term debt, capital lease
obligations and current maturities of long-term debt and capital leases
obligations. Net debt is defined as total debt less cash and cash
equivalents. Theatre level cash flow is defined as operating income plus
general and administrative expenses and depreciation and amortization
expenses less gain on sales of property and equipment. 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
depreciation and amortization and general and administrative expenses. 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. A reconciliation of theatre level cash flow to
operating income for the three months ended March 31, 2004 and 2003, as
well as a schedule of total debt and net debt is included in the tables
accompanying this press release.
This press release may contain forward-looking statements within the
meaning of the federal securities laws. Statements that are not historical
facts, including statements about our beliefs and expectations, are
forward-looking statements. Forward-looking statements include statements
preceded by, followed by or that include the words "believes," "expects,"
"anticipates," "plans," "estimates" or similar expressions.
Forward-looking statements are only predictions and are not guarantees of
performance. These statements are based on beliefs and assumptions of our
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. Such factors include, but are not limited to, the
following: the availability of suitable motion pictures for exhibition in
our markets; competition in our markets; competition with other forms of
entertainment; the effect of our leverage on our financial condition; and
other factors, including those discussed under the caption "Risk Factors"
in our Annual Report on Form 10-K for the fiscal year ended December 31,
2003. The risk factors discussed in our Form 10-K under the heading "Risk
Factors" are specifically incorporated by reference in this press release.
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.
Consolidated Statement of Operations (unaudited)
Carmike Cinemas, Inc.
(in thousands except for share data)
Three Months Ended
March 31,
2004 2003
--------- ---------
Revenues
Admissions $ 79,549 $ 69,174
Concessions and miscellaneous 37,379 34,040
--------- ---------
116,928 103,214
Costs and Expenses
Film exhibition costs 36,322 32,433
Concession costs 4,126 3,823
Other theatre operating costs 45,902 43,339
General and administrative expenses 3,765 3,346
Depreciation and amortization expenses 8,253 7,711
Gain on sales of property and equipment (305) (2,440)
--------- ---------
98,063 88,212
--------- ---------
Operating income 18,865 15,002
Other Income and Expenses
Interest expense 7,375 10,340
Loss on extinguishment of debt 9,579 -
--------- ---------
Net income before reorganization costs
and income taxes 1,911 4,662
Reorganization costs (676) 100
--------- ---------
Net income before income taxes 2,587 4,562
Income tax (benefit) 970 -
--------- ---------
Net income available for common stock $ 1,617 $ 4,562
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Weighted average shares outstanding:
Basic 10,837 9,089
Diluted 11,547 9,267
========= =========
Net income per common share:
Basic $ 0.15 $ 0.50
Diluted $ 0.14 $ 0.49
========= =========
Reconciliation of Operating income to
Theatre cash flow (unaudited)
Carmike Cinemas, Inc.
(in thousands)
Three Months Ended
March 31,
2004 2003
--------- ---------
Operating income $ 18,865 $ 15,002
General and administrative expenses 3,765 3,346
Depreciation and amortization expenses 8,253 7,711
Gain on sales of property and equipment (305) (2,440)
--------- ---------
Theatre cash flow $ 30,578 $ 23,619
========= =========
Total Debt and Net Debt (unaudited)
Carmike Cinemas, Inc.
(in thousands)
As of March 31, 2004
--------------------
Current portion of long-term debt and
capital lease obligations $ 2,846
Long-term debt 248,750
Capital lease obligations 51,138
---------
Total debt 302,734
Less cash and cash equivalents (26,681)
---------
Net debt 276,053
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