"We're pleased to report significant year-over-year cash flow and earnings improvements in the third quarter, particularly given our reduced screen count compared to the same period in 2009. Nearly 85% of the top line revenue growth was retained in Theatre Level Cash Flow, a clear indication that costs were held in check and incremental revenues improved our profitability. We averaged 40 less screens in the quarter compared to last year and believe our strategy of closing underperforming locations and focusing on the patron movie-going experience is working. During the third quarter, Carmike's box office receipts increased 2.7% on a per screen basis, compared to the prior year period. Despite a solid 3-D slate of movies during the quarter, the mix of 2-D product did not perform as well in our markets. Certain high-grossing movies such as "Inception" and "Salt" performed well in large metropolitan markets but significantly underperformed in small towns," stated Carmike Cinemas President and Chief Executive Officer David Passman.

"During the third quarter, approximately 23 percent of our box office revenues came from 3-D presentations and with ten titles in the fourth quarter and more than 30 anticipated next year we are working to meet the increasing demand. We installed over 40 additional 3-D screens, finishing the period with 591 3-D-compatible auditoriums. We will also be opening more of our proprietary BigD brand, large format 3-D auditoriums throughout the coming months."

In aggregate, Carmike's patrons spent an average of $9.97 per visit during the third quarter, up 3.5 percent compared to the year-ago period. Average admissions rose 2.3 percent to $6.61, with 3-D premiums driving the year-over-year rise. Concessions and other revenue per patron also rose for the third consecutive quarter, increasing 6.0 percent to $3.36 compared to the prior year period.

Carmike Chief Financial Officer Richard B. Hare stated, "On the expense side, film exhibition costs improved 70 basis points to 55.2 percent of admissions revenues as a result of reduced film rent costs and a decline in advertising expenses, versus 55.9 percent in the year-ago period. General and administrative expenses rose to $4.4 million, primarily as a result of increases in legal and professional fees associated with our previously announced Screenvison transaction. Carmike's other theatre operating costs rose slightly, year-over-year, due primarily to a rise in occupancy costs and utility expenses, which was partially offset by reduced repair and maintenance costs."

Mr. Hare continued, "Quarterly interest expense rose to $8.8 million, versus $7.6 million from the prior year period, due to an increase in interest rates, partially offset by a decrease in average debt outstanding as we voluntarily pre-paid an additional $5 million in bank debt during the third quarter. We have made $25 million in bank debt prepayments for the first nine months of 2010, reducing our balance to $238 million at quarter-end."

"Subsequent to quarter-end, we completed an important transaction in which we extended and expanded our relationship with cinema advertising leader Screenvision. In addition to our regular periodic screen advertising payments, we will receive a $30 million up-front payment in the first quarter of 2011 and hold an approximate 20% ownership interest in the growth of Screenvision. We are excited about the new growth path Screenvision is embarking upon and we look forward to participating in the future growth and profits of that organization as digital cinema continues its rapid expansion," concluded Mr. Passman.

 

 

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KNOXVILLE, Tenn. -- Regal Entertainment Group (NYSE: RGC), a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States, announced today that the industry-leading customer loyalty program, Regal Crown Club, will celebrate ten years by honoring its most dedicated members. In 2011 Regal Crown Club will reach its 10 year anniversary. In celebration, Regal is creating a new Elite status to recognize the most loyal movie theatre patrons.

With more than six million active members, Regal Crown Club is the number one theatre loyalty program in the country. Loyalty club members account for over 25% of the total admissions for Regal Entertainment Group. The Regal Crown Club began in 2001 as a way to reward Regal's frequent moviegoers. Through the Regal Crown Club, moviegoers accumulate credits at the box office and concession stand to earn free popcorn, soft drinks and movies.

"We are excited to commemorate the 10 year anniversary of our Regal Crown Club loyalty program and also to honor our Elite Members," stated Greg Dunn, President and COO of Regal Entertainment Group. "Through the Regal Crown Club, millions of patrons show their preference for our theatres and their loyalty is greatly appreciated. Elite status further rewards our most frequent guests and encourages all Regal Crown Club members to accumulate more credits to achieve their own Elite status."

Ten Regal Crown Club members with the highest credit totals will be the first inducted into the new Elite status this fall. Since the program's inception, the Top 10 Elite members each accumulated more than 16,000 credits. These 10 members will receive a specially-designed Regal Crown Club Elite membership card embossed with their name. The Top 10 Elite Members will also receive a prize package including a $250 Regal Entertainment Group gift card, a commemorative clapboard award for their outstanding loyalty, and various movie memorabilia.

The Regal Crown Club anniversary celebration will continue in 2011 when the program honors additional members who have accumulated 10,000 or more credits on their loyalty cards. These Elite Members will receive a prize package including a $50 Regal Entertainment Group gift card and movie memorabilia.

In addition to earning free popcorn, soft drinks and movies, Regal Crown Club members can also participate in the following benefits:

* Enjoy Dollar Days - $1 featured candy every Monday and $1 small popcorn on Tuesdays.
* Create a personal online account to watch RCC credits build and view exclusive offers.
* Receive monthly online Regal Crown Club newsletter communications.
* Receive emails about special movie promotions and programs in your area.
* Win great prizes through various member sweepstakes throughout the year.
* Earn Extra Credits toward free popcorn, soft drinks and movies.

Regal Crown Club membership is free and open to everyone 13 years of age and older. Membership is obtainable at any Regal Entertainment Group theatre or online at www.REGmovies.com.

 

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Los Angeles -- David F. England has been named Executive Vice President and Chief Financial Officer of the Motion Picture Association of America, Inc. (MPAA), it was announced today by Bob Pisano, President and Interim CEO. England will assume his duties in December when current Executive Vice President and Chief Financial Officer Lisa Pierozzi leaves to pursue other opportunities.

"We are pleased to welcome David to the MPAA," said Pisano. "He brings a wealth of experience and expertise in the entertainment industry which will be an invaluable asset to our organization. I also want to thank Lisa for the substantial contribution she made to our organization and wish her well in her future endeavors."

As Chief Financial Officer and Executive Vice President, Finance and Administration, England will be responsible for the day-to-day management of all aspects of MPAA's finances. In addition, he will oversee Facilities and Information Services. He will be based in Los Angeles and report to Pisano.

England comes to the MPAA from Simon and Schuster, where he spent six years as Senior Vice President, Chief Financial Officer. Prior to that, he was Executive Vice President, Chief Financial Officer at United Paramount Network (UPN) and Chief Financial Officer at Western International Media Corp. He began his entertainment career as Assistant Controller at Hanna-Barbera Productions.

He received an MBA and a BA from the University of Southern California.

 

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