COLUMBUS, Ga., March 25, 2003 (PRIMEZONE) -- Carmike Cinemas, Inc. (Nasdaq:CKEC) (the "Company") reported today an all-time high for theatre-level cash flow of $115.8 million for the year ended December 31, 2002, an increase of 38.7%, compared to $83.5 million for the year ended December 31, 2001.
Revenues for the year ended December 31, 2002 were a record high $507.2 million, an increase of 11%, compared to $457.0 million for the previous year. Admission revenues for the period ended 2002 increased approximately 10% due to an 8.3% increase in overall attendance and a 1.5% increase in average ticket price. Concessions and other revenue increased 13.3% due to the attendance increase, a 3.2% increase in concession sales per patron and a $3.3 million increase in other revenues.
Expenses for the year ended December 31, 2002 were $438.4 million, a decrease of 21.3%, compared to $556.7 million for the year ended 2001. We recorded no impairment charge in the year ended December 31, 2002, compared to a $132.2 million impairment charge in the year ended December 31, 2001. Operating income was $68.8 million in 2002 compared to an operating loss of ($99.7) million for 2001. This change in operating income was attributable to the record level of revenues, the success of our expense control efforts and the overall improvement in the quality of our theatre circuit. The Company's net loss improved from $125.4 million in 2001 to $39.8 million in 2002. This substantial improvement was the result of an increase in operating income partially offset by the increase in interest expense relating to the Company's emergence from Chapter 11.
"The success of `Spiderman' and films such as `Star Wars: Attack of the Clones,' `Signs' and `The Lord of the Rings: The Two Towers' drove Carmike over $500 million of revenues," stated CEO and President, Michael W. Patrick. "We believe the impressive revenues and operating income for fiscal year 2002 demonstrates the strength of our theatre circuit and our focus on returning our attention to top-line growth."
At December 31, 2002, Carmike Cinemas operated 308 theatres with 2,262 screens in 35 states, making it the second largest in terms of theatres and the fourth largest in terms of screens in the United States. The Company targets small to mid-sized communities to operate its theatres. Carmike Cinemas' Common Stock is traded on the Nasdaq National Market under the ticker symbol "CKEC".
Theatre level cash flow is a non-GAAP financial measure used by the Company to evaluate its performance. The Company defines theatre level cash flow as operating income plus general and administrative expenses, depreciation and amortization expenses and impairment charge. A reconciliation of theatre level cash flow to operating income for the years ended December 31, 2002 and 2001 is included in the table 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, 2002. 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
Carmike Cinemas, Inc.
(in thousands except for share data)
Years Ended December 31,
2002 2001
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Revenues:
Admissions $ 342,839 $ 311,818
Concessions and other 164,349 145,132
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507,188 456,950
Costs and expenses:
Film exhibition costs 189,265 171,207
Concession costs 19,233 20,184
Other theatre operating costs 183,841 182,054
General and administrative expenses 14,983 8,846
Depreciation and amortization expenses 32,079 42,153
Impairment charge -- 132,207
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438,401 556,651
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Operating income (loss) 68,787 (99,701)
Interest expense (Contractual interest
was $47,468 and $44,651 at December 31,
2002 and 2001, respectively) 102,773 6,138
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Net loss before reorganization costs
and income taxes (33,986) (105,839)
Reorganization costs 20,547 19,548
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Net loss before income taxes (54,533) (125,387)
Income tax (benefit) (14,706) --
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Net loss $ (39,827) $(125,387)
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Weighted average shares outstanding:
Basic and diluted 9,195 11,344
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Loss per common share:
Basic and diluted $ (4.33) $ (11.05)
Other Information
Operating income (loss) $ 68,787 $ (99,701)
General and administrative expenses 14,983 8,846
Depreciation and amortization expenses 32,079 42,153
Impairment charge -- 132,207
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Theatre level cash flow $ 115,849 $ 83,505
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