CARMIKE CINEMAS. MANAGEMENT PRESENTATION. January 2012. Disclaimer.
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This presentation contains 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. Examples of forward-looking statements in this presentation include our ticket and concession price increases, our cost control measures, our strategies and operating goals, our plans regarding debt reduction, our film slate for 2012 and future years, and our capital expenditure and theater expansion/closing plans. 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:
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 these in light of new information or future events.
States with 1 – 9 Theatres
States with 10 – 19 Theatres
States with 20+ Theatres
Note: Includes California theatre no longer operated (10/04); excludes 3 MNM theatres acquired 10/21
OPTIONS & COMPETITION
CARMIKE IS A LEADER IN THE DEPLOYMENT OF DIGITAL AND 3-D CINEMA
FOCUS ON DIGITAL FORMAT HAS POSITIONED CARMIKE TO CAPITALIZE ON GROWING DIGITAL OPPORTUNITIES
Premium Ticket Prices
30 YEAR AGREEMENT WITH ADVERTISING PARTNER SCREENVISION PROVIDES FURTHER GROWTH OPPORTUNITIES
Annual attendance (mm)
Ticket Price per Patron
Most Popular Out-of-Home Entertainment Experience
Most Attractive Value Proposition
Source: 2008 MPAA, Pricewaterhouse Coopers
1 As percentage of total revenue for YTD 9/30/2011
2 Other theatre operating costs include labor, utilities, occupancy and facility lease expenses
THEATRE LEVEL CASH FLOW (unaudited)
1Operating income is defined as operating revenues less operating expenses which includes film exhibition, concession, theatre operating, G&A, and non-cash operating charges.
TOTAL DEBT AND BANK DEBT (unaudited)
1 Financing obligations are not included as debt under the terms of the Company’s debt agreement.
2The Company has prepaid $110 million of debt in the last four years.
CARMIKE HAS UNDERTAKEN SEVERAL INITIATIVES TO IMPROVE CASH FLOW AND FURTHER STRENGTHEN ITS CAPITAL STRUCTURE POSITION
Rationalized asset base by purging under-performing and non-strategic locations
Improves revenue (increased exhibition options and 3-D) and cost efficiency
Allowed for cash allocation to repay term loan principal
Carmike improving its future capital position through repayment of outstanding term loans
Only theater chain to complete its digital roll-out, limiting need for significant future capex
Carmike has lowered general and administrative costs
STATED OBJECTIVE IS TO IMPROVE FREE CASH FLOW GENERATION AND CONTINUE TO REDUCE LEVERAGE
Strengthened Balance Sheet
Growth via New Builds & Acquisitions
Per Cap Growth
Investor Relations contacts:
Richard Hare, CFO
Jaffoni & Collins