Blame it on the rain: Highlights from Carmike Cinemas' (CKEC) most recent quarter

On December 16, 2004, Carmike Cinemas (CKEC) reported results for
the third quarter 2004.  Below are some highlights.

Highlights for 3Q04 vs. 3Q03

• GAAP EPS: $0.60 vs. $0.98 (-39%)
• Adjusted EPS (using 37.5% tax rate): $0.63 vs. $0.62 (+2%)
• Total revenues:  $117M vs. $128M (-9%)
• Admissions revenues: $78M vs. $87M (-10%)
• Concession revenues: $39M vs. $42M (-7%)
• Operating Income: $11M vs. $19M (-42%)
• Operating margin: 9.6% vs. 15.2% (-560 bps)Interest expense: $4M vs. $10M (-60%)
• Cash: $38M vs. $41M (-7%)
• LT Debt: $248M vs. $323M (-23%)
• Liabilities subject to compromise: $4.8M vs. $21.5M
• Free Cash Flow: -6.7M vs. -2.0M
• Theaters: 285 vs. 300 (-5%)
• Screens: 2,195 vs. 2,239 (-2%)
• Attendance: 6,874 vs. 7,821 (-12%)
• Avg. Ticket price: $5.14 vs. $4.92 (+4%)
• Avg. Concession/patron: $2.31 vs.$2.14 (+8%)

Quick comments:

• Revenue drop in second half of the quarter because of stormy weather in the Southeast
• Reported first 9 months theater cash flow of 25% ($91M) for of 2004 compared to 24% ($87M) for 2003
• G&A expenses up due to Sarbanes-Oxley regulations
• Company focused on cost controls and debt reduction
• 2005 theater additions: 0 in 1Q, 4 in 2Q, 5 in 3Q, 3 in 4Q
• CKEC would like to amend its loan revolver to bring capex up to $50M instead of $35
• Only 2 analysts on the call