Carmike Cinemas (CKEC) discusses bad weather, debt and capex spending (quotes from conf call)

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Below are some comments from Carmike Cinemas (NASDAQ:CKEC) from its
December 16, 2004 conference call with investors. (Quotes from the CCBN StreetEvents transcript.)

On storm disruptions in the Southeast

"it clearly had an impact on attendance, as people's focus was not necessarily on what was playing at their local movie theater, but whether they were trying to prepare or evacuate under some of the storm conditions that existed during this time period."

On its $150 million subordinated notes

"…….150 million senior subnote does carry a coupon of 7.5 percent….we put that in in February of [2004]. So to redeem that note would be rather expensive right now….if we were to do a similar note today, I would expect it to be something slightly north of 7, but certainly less than 7.5. So I'm not sure that from a cost standpoint, we would be interested in doing that."

On increasing capex spending

"…it is the Company's desire and intent in 2005 to increase that capital spending limitation [on the loan revolver]….we believe at least for the next couple years that the Company's CapEx spending program ought to be around 50 million in lieu of 35 million….we have a few more markets that we feel like we need to go back in and upgrade to stadium and add on to protect cash-flow. But, it would probably not be more than 50 percent of the $15 million."