Carmike Cinemas Reports First Quarter 2006 Results; First Quarter Revenues Increase 10.4%; Theater Level Cash Flow Increases 9.4%.COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ga. -- Carmike Cinemas, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CKEC) today reported results for its first quarter ended March 31, 2006. First Quarter Operating Results Total revenue for the quarter ended March 31, 2006 was $111.7 million, compared to $101.2 million for the quarter ended March 31, 2005. Admissions revenue was $72.6 million for the quarter ended March 31, 2006 compared to $67.1 million for the quarter ended March 31, 2005. Concessions and other revenue was $39.2 million for the first quarter of 2006 compared to $34.2 million for the first quarter of 2005. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $3.8 million for the first quarter of 2006, compared to $5.9 million for the same period in the prior year. Carmike's general and administrative expenses during the first quarter of 2006 were negatively impacted by increased professional fees including those related to the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of the Company's financial statements. Theatre level cash flow was $19.8 million in the first quarter of 2006, compared to $18.1 million for the same period in the prior year. Interest expense was $10.6 million for the first quarter of 2006 versus $7.7 million in the prior year period, due to higher interest rates and an increase in average debt outstanding. Net loss was $6.2 million, or $0.50 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended March 31, 2006, compared to net income of $0.3 million, or $0.03 per diluted share, in 2005. The fiscal 2006 results include the impact of expensing stock options and shares purchased under the employee stock purchase plan as required by Statement of Financial Accounting Standards No. 123R, Share-Based Payment ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R"). The Company also recorded stock-based compensation expense of $1.0 million in the current quarter. Carmike's results for the first quarter of 2006 include results attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to GKC GKC Gilbert Keith Chesterton (English critic and author) GKC Gennera Knab & Company GKC Grassy Knoll Crowd GKC Group Key Controller Theatres. Carmike acquired GKC Theatres on May 19, 2005, adding 30 theatres with 263 screens in Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). and Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee . At March 31, 2006, Carmike's cash and cash equivalent balance was $14.1 million versus $23.6 million at December December: see month. 31, 2005. Carmike had net debt of $415.6 million at March 31, 2006, compared to net debt of $408.4 million at December 31, 2005. At March 31, 2006, Carmike had no borrowings outstanding under its five-year $50 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , during the second quarter of 2006 Carmike borrowed $156 million, pursuant to a delayed-draw term loan commitment (maturing on May 19, 2012) under its senior secured credit facility, in order to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. its $150 million outstanding senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes. These notes are no longer outstanding and the related indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. is no longer in effect. Restatement of First Quarter 2005 Financial Statements In May 2006, Carmike's Audit Committee, upon the recommendation of management, concluded that certain previously issued financial statements contained in Carmike's annual and quarterly reports were inaccurate. As previously disclosed, Carmike is restating certain previously issued financial statements. Today, Carmike filed its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2006, which includes restated financial statements for the quarter ended March 31, 2005. The restatement adjustments decreased previously reported net income by $0.1 million, or $0.01 per diluted share, for the quarter ended March 31, 2005. There was no net impact on cash flows, nor did the adjustments affect Carmike's compliance with financial covenants under its senior secured credit facility. Supplemental Financial Measures Total debt, net debt and theatre level cash flows are supplemental non-GAAP financial measures used by Carmike to evaluate its operating performance. Total debt is defined as the sum of current maturities of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , capital lease and long-term financing Long-term financing Liabilities repayable in more than one year plus equity. obligations, long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. (less current maturities) and capital lease and long-term financing obligations (less current maturities). Net debt is defined as total debt less cash and cash equivalents. Theatre level cash flow is a supplemental non-GAAP financial measure used by Carmike to evaluate its operating performance. Carmike defines theatre level cash flow as operating income plus general and administrative expenses, depreciation and amortization expenses, minus gain on sales of property and equipment. 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 items such as general and administrative expenses and depreciation and amortization expenses among others. 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 first quarter ended March 31, 2006 and 2005, as well as a schedule of total debt and net debt is included in the tables accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. this press release. About Carmike Cinemas Carmike Cinemas, Inc. is a premiere motion picture exhibitor in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with 297 theatres and 2,454 screens in 37 states, as of March 31, 2006. Carmike's focus for its theatre locations is small to mid-sized communities with populations of fewer than 100,000. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 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: --our ability to comply with covenants contained in our senior secured credit agreement; --our ability to maintain our Nasdaq listing; --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; --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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005 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.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
CARMIKE CINEMAS, INC. and SUBSIDIARIES
(in thousands, except per share data)
Three Months Ended
March 31,
-------------------
2005
2006 (restated)
-------- ----------
Revenues
Admissions $72,564 $67,052
Concessions and other 39,180 34,168
-------- ----------
111,744 101,220
Costs and Expenses
Film exhibition costs 37,275 35,380
Concession costs 4,090 3,596
Other theatre operating costs 50,606 44,105
General and administrative expenses 5,781 3,988
Depreciation and amortization expenses 10,292 8,241
Gain on sales of property and equipment (144) --
-------- ----------
107,900 95,310
-------- ----------
Operating income 3,844 5,910
Other expenses
Interest expense 10,614 7,735
-------- ----------
Loss before reorganization costs and income taxes (6,770) (1,825)
Reorganization benefit -- 2,391
-------- ----------
Income (loss) before income taxes (6,770) 566
Income tax expense (benefit) (596) 242
-------- ----------
Net income (loss) $(6,174) $324
======== ==========
Weighted average shares outstanding:
Basic 12,338 12,138
======== ==========
Diluted 12,338 12,569
======== ==========
Net income (loss) per common share:
Basic $(0.50) $0.03
======== ==========
Diluted $(0.50) $0.03
======== ==========
Dividend declared per common share $0.175 $0.175
======== ==========
TOTAL DEBT AND NET DEBT
CARMIKE CINEMAS, INC. and SUBSIDIARIES
(in thousands)
March 31, December 31,
2006 2005
----------- ----------
(unaudited)
Current maturities of long-term indebtedness,
capital lease and long-term financing
obligations $2,857 $2,435
Long term debt, less current maturities 312,966 313,774
Capital lease and long-term financing
obligations, less current maturities 113,865 115,809
----------- ----------
Total debt 429,688 432,018
Less cash and cash equivalents (14,069) (23,609)
----------- ----------
Net debt $415,619 $408,409
=========== ==========
THEATRE LEVEL CASH FLOW (UNAUDITED)
CARMIKE CINEMAS, INC. and SUBSIDIARIES
(in thousands)
Three Months Ended
March 31,
----------------------
2006 2005
---------- ----------
(restated)
Operating Income $3,844 $5,910
Gain on sales of property and equipment (144) --
General and administrative expenses 5,781 3,988
Depreciation and amortization expenses 10,292 8,241
---------- ----------
Theatre level cash flow $19,773 $18,139
========== ==========
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion