Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today announced the closing of its purchase of three Atlanta-area movie theatres with a total of 40 auditoriums from MNM Theatres. The agreement was first announced August 19 as a Letter of Intent. The three theatres are based in Atlanta, Hiram and Cumming, GA.
Carmike will commence converting MNM's 34 remaining analog screens to digital cinema in the near-term and the Company also plans to install 15 additional RealD 3-D screens for an aggregate of 741 3-D-compatible screens after the digital rollout is completed in early November. Carmike now has 25 Georgia-based entertainment complexes.
Carmike Cinemas President and Chief Executive Officer David Passman said, "We are delighted to complete this transaction, which further expands our growing footprint in Carmike's home state of Georgia. More than 10% of our circuit is based here and we have our 26th entertainment complex set to open in Winder, GA before year-end.
"The MNM acquisition underscores our strategic growth plan to increase screen count both through accretive acquisitions such as MNM as well as state-of-the-art new build-to-suit complexes. We have a number of theatres currently under construction and several awaiting financing approval. In addition, we are installing BigD large format screens at some of our most successful existing theatres and are also in the process of opening the Company's second Ovation Club VIP Dining auditorium at Carmike's forthcoming Sandestin, FL location, slated for a summer 2012 debut at The Village at Myrtle Grove," 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 additional theatre locations and 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
Richard
Hare, Chief Financial Officer
Greg Wiggins, Director of Financial
Reporting
706-576-3400
