COLUMBUS, Ga., May 14, 2003 (PRIMEZONE) -- Carmike Cinemas, Inc. (Nasdaq:CKEC) (the "Company") reported today net income improved to $4.6 million for the three months ended March 31, 2003 when compared to a net loss of ($56.0) million for the three months ended March 31, 2002. The net loss for the first quarter of 2002 was impacted by interest expense that included $59.2 million for prior years interest not previously recorded due to our reorganization. Basic income per common share improved to $0.50 for the three months ended March 31, 2003 compared to basic loss per common share of ($5.70) for the three months ended March 31, 2002. Theatre level cash flow for the three months ended March 31, 2003 was $23.6 million, a decrease of 9.2% when compared to the three months ended March 31, 2002 of $26.0 million. Revenues for the three months ended March 31, 2003 were $103.2 million, a decrease of 11.3%, compared to $116.3 million for the three months ended March 31, 2002. Expenses for the three months ended March 31, 2003 were $90.7 million, a decrease of 10.0%, compared to $100.8 million for the three months ended March 31, 2002. Operating income was $12.6 million for the three months ended March 31, 2003, a decrease of 18.7% when compared to $15.5 million for the three months ended March 31, 2002.
"The industry faced difficult comparisons in the first quarter of 2003. The box office for the industry decreased approximately 7.1% due to weaker film product and the Easter holiday falling in the second quarter of 2003," commented Michael W. Patrick, President and CEO. "Carmike's revenues for the first quarter of 2003 decreased compared to the first quarter of 2002, but we continued to control our expenses to minimize the effect on theatre level cash flow."
The movies slated to open in the second quarter are playing on the success of sequels, with titles such as: "X-Men 2," "Matrix Reloaded" and "2 Fast 2 Furious". Other major releases in the second quarter are: "Bruce Almighty," "Finding Nemo" and "The Hulk."
Carmike will hold its first quarter 2003 earnings conference call on Monday, May 19, 2003 at 11:00 a.m. (ET). This call is being webcast by CCBN and can be accessed at the Company's 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 the Company's website, www.carmike.com, at the Corporate Information link until June 20, 2003.
At March 31, 2003, Carmike Cinemas operated 304 theatres with 2,251 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 supplemental non-GAAP financial measure used by the Company to evaluate its operating performance. The Company defines theatre level cash flow as operating income plus general and administrative expenses and depreciation and amortization 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 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, 2003 and 2002 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 (Unaudited)
Carmike Cinemas, Inc.
(in thousands except for share data)
Three Months Ended
March 31,
2003 2002
------------------ -----------------
Revenues
Admissions $69,174 $ 78,659
Concessions and
miscellaneous 34,040 37,653
------------------ -----------------
103,214 116,312
Costs and Expenses
Film exhibition costs 32,433 40,228
Concession costs 3,823 4,952
Other theatre operating
costs 43,339 45,151
General and administrative
expenses 3,346 2,413
Depreciation and
amortization expenses 7,711 8,027
------------------ -----------------
90,652 100,771
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Operating income 12,562 15,541
Interest expense (Contractual
interest for the three
months ended March 31, 2002
was $11,532) 10,340 71,527
------------------ -----------------
Net income (loss) before gain
on real estate sales,
reorganization costs and
income taxes 2,222 (55,986)
Gain on real estate sales 2,440 141
------------------ -----------------
Net income (loss) before
reorganization costs and
income taxes 4,662 (55,845)
Reorganization costs 100 14,805
------------------ -----------------
Net income (loss) before
income taxes 4,562 (70,650)
Income tax (benefit) - (14,700)
================== =================
Net income (loss) $ 4,562 $ (55,950)
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Weighted average shares
outstanding:
Basic 9,089 9,817
Diluted 9,267 9,817
================== =================
Net income (loss) per common
share:
Basic $ 0.50 $ (5.70)
Diluted $ 0.49 $ (5.70)
================== =================
Other Information:
Reconciliation of theatre
level cash flow to
operating income
Operating income $12,562 $ 15,541
General and administrative
expenses 3,346 2,413
Depreciation and amortization
expenses 7,711 8,027
================== =================
Theatre level cash flow $23,619 $ 25,981
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