EX-99.1 3 dex991.htm INVESTOR PRESENTATION Investor presentation
1
Operating Performance
Improvement Plan
Carmike Cinemas
November 12, 2007
Exhibit 99.1

2
Disclosure Regarding Forward
Looking Statements
This
presentation
contains
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.
Examples
of
forward-looking
statements
in
this
presentation
include
the
potential
sale-leaseback
transactions,
the
potential
disposition
of
assets,
the
estimated
value
of
our
real
estate,
the
amount
of
proceeds
from
these
transactions,
our
ticket
and
concession
price
increases,
our
cost
control
measures,
our
strategies
and
operating
goals,
and
our
capital
expenditure
and
theater
expansion/closing
plans.
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 inability to consummate the transactions described in this presentation on terms favorable to us;
•
the inability to satisfy any conditions to closing or to complete any related financing in connection with the transactions described in this
presentation;
•
our ability to comply with covenants contained in our senior secured credit agreement;
•
our ability to operate at expected levels of cash flow;
•
the availability of suitable motion pictures for exhibition in our markets;
•
competition in our markets;
•
competition with other forms of entertainment;
•
identified material weaknesses in internal control over financial reporting;
•
the effect of our leverage on our financial condition; and
•
other
factors,
including
the
risk
factors
disclosed
in
our
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2006
and
our
Quarterly
Reports
on
Form
10-Q
for
the
quarters
ended
March
31,
2007,
June
30,
2007
and
September
30,
2007
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
these
in
light
of
new
information
or
future
events.

3
Strategic Plan to Rebuild
Shareholder Value
•
Improve our attendance per screen metrics
•
Implementation of an aggressive pricing policy
•
Maintain our focus on managing costs
•
Close or sell underperforming theaters
•
Monetize our assets via sale-leaseback transactions
•
Minimize expansion capital via build to suits

4
Attendance
•
Impact of discount theaters
•
Contribute $1 million of cash flow annually
•
Close upon lease terminations
•
Sensitive to pricing
•
Difficult comparison to prior year quarter
•
Small town footprint

5
Pricing Initiative
•
Initiating a Company-wide price increase in
conjunction with the release of Beowulf on
November 16
th
•
Estimating $0.25 to $0.50 per ticket increase
•
Estimating a 5% increase in concession prices
•
Average ticket prices have increased over 8%
year to date over the prior year period

6
Maintaining Cost Focus
•
Continue operational cost control
•
Aligned quarterly incentive program
•
Broadened middle management participation in
the incentive program
•
Customized administrative performance plan

7
Close or Sell Underperforming
Theaters
•
Surplus land and closed theaters
•
Higher and better use properties
•
Underperforming theaters
•
Leased portfolio

8
Surplus Land and Closed Theaters
•
We have sold over $8 million of properties in
2007
•
We have 12 remaining properties for sale valued
at approximately $7 million

9
Higher and Better Use Properties
•
Theaters have escalating real estate values
•
Seven properties identified
•
Could generate up to approximately $12 million
of proceeds

10
Underperforming Theaters
•
Seven properties identified
•
Could generate up to approximately $7 million of
proceeds

11
Leased Portfolio
•
Ongoing comprehensive review of our portfolio
of leased properties
•
Certain leases could have more value to the
landlord
•
Evaluating underperforming leased theaters
•
Underperformance covers rent on property
•
Evaluating certain leases to determine if negotiations
with landlord for early termination is desirable

12
Sale-Leaseback
•
Own approximately 1/3 of our properties
•
Currently Company estimates total real estate portfolio to
have a fair market value of $150 to $175 million
•
Evaluating monetization of assets via sale-leaseback
transactions and sale of certain assets
•
Could generate significant cash proceeds to pay down
debt
•
Credit facility allows for potential sale-leaseback
transactions up to $175 million

13
Capital Program
•
Estimating $25 million of total capital expenditures in 2007
•
Digital installation near completion
•
Shifting our expansion plans to “build to suit”
•
Substantially higher return on capital
•
Planning on completing four “build to suit”
developments in 2008
•
Partnering with REITs
and other developers

14
Conclusion
•
Revenue improvement
•
Aggressive admission policy
•
Maintain cost controls
•
Incentive based control plan
•
Debt reduction
•
Monetizing assets
•
Sale-leaseback
•
Sale of properties