COLUMBUS, Ga.--(BUSINESS WIRE)-- Carmike Cinemas, Inc. (NASDAQ:CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today announced the completion of its previously announced purchase from Muvico Entertainment, L.L.C. (d/b/a Muvico Theatres) of nine entertainment complexes with an aggregate of 147 screens in Florida, California, and Illinois.
Carmike Cinemas' President and Chief Executive Officer David Passman stated, "This completed transaction is an important step along our path to achieving Carmike's current goal of further growing our theatrical circuit to 300 entertainment complexes and 3,000 screens. We believe the expanded scale this acquisition brings to our operations positions Carmike to continue building long-term value for all stakeholders. In the current industry environment, which is favorable for further consolidation, we believe we have ample additional financial capacity to further optimize our theatre portfolio through attractive acquisition opportunities. We enthusiastically welcome our new Muvico associates to the growing Carmike family."
Of the nine theatres purchased, seven are located in Florida, with one each in Illinois and California. Ninety seven percent of the acquired auditoriums are digital and feature stadium seating. Approximately 24 percent of the screen count is 3-D-capable and four theatres have premium large format screens - two IMAX® and two MuviXL. Every location features select auditoriums that contain D-BOX motion-code action seats, and a majority of the theatres offer beer and wine service. Each of the Thousand Oaks, Calif., and Rosemont, Ill., locations contains within the theatre complex a Bogart's Bar & Grill full-service restaurant. All 147 screens are participants in the Screenvision Cinema Network, which includes more than 14,000 screens throughout the US. Inclusive of the Muvico screens, Carmike's theatre portfolio now consists of 257 theatres with an aggregate of 2,681 screens in 37 states.
Macquarie Capital acted as financial advisor, and King & Spalding LLP acted as legal counsel, to Carmike Cinemas in this transaction. Dresner Partners acted as financial advisor, and Seyfarth Shaw LLP acted as legal counsel, to Muvico Entertainment, L.L.C., in this transaction.
About Carmike Cinemas (www.carmike.com )
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 September 30, 2013, the Company had 247 theatres with 2,521 screens in 36 states, with a digital footprint of 2,418 screens, including 229 locations with 954 screens also equipped for 3-D. The circuit includes 32 premium large format auditoriums featuring state-of-the-art technology and luxurious seating, including 20 "BigDs," 10 IMAX® auditoriums and two MuviXL screens. 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 contains 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," "seeks" or similar expressions. Examples of forward-looking statements in this press release include the Company's expectations regarding future operating efficiencies, box office performance, circuit expansion, additional acquisition opportunities and the operating impact of the Muvico 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 our senior secured credit agreement and the indenture governing our 7.375% Senior Secured Notes due 2019; 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, 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.
Robert Rinderman or Jennifer Neuman
Carmike Cinemas, Inc.
Richard B. Hare, 706-576-3416
Chief Financial Officer
Source: Carmike Cinemas, Inc.