Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today announced it has signed a letter of intent to acquire three Atlanta-area movie theatres with a total of 40 screens from MNM Theatres. The three MNM facilities are located in Atlanta, Hiram and Cumming, GA. Presently, six of the circuit's 40 screens are digitized and 3-D capable. Carmike plans to immediately begin converting the remaining 34 screens to digital cinema as well as installing additional 3-D screens.
Following completion of this transaction, Carmike will have 25 Georgia-based entertainment complexes. Carmike expects to close on the transaction in late third quarter or early fourth quarter. The acquisition is contingent upon Carmike's completion of due diligence. MNM CEO Norman Shindler will continue to be involved in the operations of these theatres for a period of at least three years following the acquisition.
Mr. Shindler stated, "We are very pleased to join Carmike Cinemas, as we share a similar operating philosophy centrally focused on serving theater-going patrons. I am certain that MNM's loyal customers will be delighted to share in the benefit from Carmike's position as a pioneering leader in digital and 3-D cinema, including the immediate conversion of all of our auditoriums to digital and the addition of cutting-edge RealD 3-D technology to further enhance the theatre-going experience."
Carmike Cinemas President and Chief Executive Officer David Passman said, "Despite being in the shadow of one of the country's largest demographic markets, MNM Theatres provides the same small-town, customer-focused experience that Carmike patrons have come to enjoy. This experience has been fostered by Mr. Shindler, who with his entrepreneurial, operations expertise and knowledgeable, long-tenured associates, have created a high-quality, details matter approach that is congruent to Carmike's philosophy. We expect Carmike to benefit immensely from Mr. Shindler's continued involvement and welcome him and his team to the Carmike family.
"This purchase underscores Carmike's strategic plan to increase screen count through accretive acquisitions and organic growth. We have previously announced signed commitments to open five new-builds in coming months and hope to announce more new Carmike theatres soon," concluded Mr. Passman.
About Carmike Cinemas (www.carmike.com)
Carmike Cinemas, Inc. is a U.S. leader in digital cinema and 3-D cinema deployments and one of the nation's largest motion picture exhibitors. As of June 30, 2011, Carmike had 235 theatres with 2,215 screens in 36 states. Carmike's digital cinema footprint reached 2,083 screens, including 207 theatres with 724 screens that are also equipped for 3-D. Carmike's focus for its theatre locations is small to mid-sized communities.
Disclosure Regarding Forward-Looking Statements
This press release and other written or oral statements made by or on behalf of Carmike contain 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" or similar expressions. Examples of forward-looking statements in this press release include the Company's strategies and operating goals.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: general economic conditions in our regional and national markets; our ability to comply with covenants contained in our senior secured credit agreement; 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, 2010, 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.
Contacts:
Jaffoni& Collins – Investor Relations
Robert Rinderman or
Joseph Jaffoni
212-835-8500 or ckec@jcir.com
or
Carmike
Cinemas, Inc.
Richard B. Hare, 706-576-3416
Chief Financial
Officer
