Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today announced the closing of its previously announced purchase of three state-of-the-art digital entertainment complexes totaling 52 screens in Louisville, KY (Stonybrook 20), Voorhees, NJ (Ritz Center 16) and Hickory Creek, TX (Hickory Creek 16) from Cinemark USA, Inc., a wholly owned subsidiary of Cinemark Holdings, Inc. (NYSE: CNK). Financial terms of the transaction were not disclosed.
All 52 auditoriums feature full digital projection and stadium seating. Approximately one-third of the screens are 3-D-compatible and Carmike added an eighth
® large format screen to its footprint, at the Stonybrook 20 in Louisville. Combined with its 19
Big D large format digital experience screens, Carmike now operates 27 premium large format screens. This transaction also added 36 screens to the Company’s long-term pre-show advertising arrangement with
Carmike Cinemas President and Chief Executive Officer David Passman said, “We are pleased to add these quality assets to our growing circuit. This transaction further underscores our commitment to increasing theatre and screen count through accretive acquisitions.”
About Carmike Cinemas
Carmike Cinemas, Inc. is a U.S. leader in digital cinema, 3-D cinema deployments and one of the nation’s largest motion picture exhibitors. As of June 30, 2013, the Company had 245 theatres with 2,476 screens in 35 states, with a digital footprint of 2,373 screens, including 227 locations with 940 screens also equipped for 3-D. The circuit includes 19 “Big D” large format digital experience auditoriums, featuring state-of-the-art equipment and luxurious amenities, as well as 8 IMAX® auditoriums. As “America’s Hometown Theatre Chain,” Carmike’s primary focus is small to mid-sized community locations.
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 our expectations regarding the closing of the transaction.
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: our ability to achieve expected results from our strategic acquisitions, general economic conditions in our regional and national markets; our ability to comply with covenants contained in the agreements governing our indebtedness; 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; the effect of our leverage on our financial condition; prices and availability of operating supplies; the impact of continued cost control procedures on operating results; the impact of asset impairments; the impact of terrorist attacks; changes in tax laws, regulations and rates; financial, legal, tax, regulatory, legislative or accounting changes or actions that may affect the overall performance of our business and other factors, including the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012 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.