Below are some comments from Carmike Cinemas (NASDAQ:CKEC) from its March 18, 2005 conference call with investors.
… currently the Board seems to be focusing….on growth opportunities, rather than increasing the dividend. The Company, as most of you know, has been kind of in a down sizing closure mode now since it entered bankruptcy….from the year 2000 to today it has been a continual drop in theaters and screens.
It is also been a continual drop in leverage. And because of that the Board has basically given management the charge to take advantage of markets where we can grow and add to cash flow, as well as to look hard at potentially acquiring other operators that are operating in markets very similar to Carmike's characteristics.
… what you will see is you will see the Company a lot more focused on growth, be it at the organic growth from building and/or acquisition growth. And it will not be in this -- at least short-term period, the next 1 to 2 years focused so much on growing the dividend as it is on growing the assets of the Company, and acquiring some cash flow that we believe would be attractive to Carmike.
We would much rather build this cash flow and then address dividends further down the line.
(Quotes from the CCBN StreetEvents transcript.)