Carmike Reports Successful 2015

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Tue, 03/01/2016 - 11:48 -- Nick Dager

Carmike Cinemas today reported results for the three and twelve-month periods ended December 31, 2015 and noted continued growth. “Carmike’s record fourth quarter and 2015 full year financial results reflect the ongoing success of our theatre-level initiatives, the progress we are achieving with our value-building theatre acquisition and organic growth strategies and the overall strength of the U.S. box office. Our admissions revenue growth per screen of over 15 percent in the 2015 fourth quarter and 9 percent for the full year outpaced the industry by almost 500 and 200 basis points, respectively. We achieved record results across several key financial metrics, including a 19 percent rise in operating revenues to an all-time quarterly record, as well as a rise in operating income of over 100 percent, which drove increases in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and theatre level cash flow of approximately 61 percent and 51 percent, respectively,” said David Passman, Carmike Cinemas’ president and chief executive officer.

"With the acquisition completed in October, we were pleased to welcome the Sundance Cinemas associates and guests to the Carmike family. This high profile circuit increased our presence in some of the country's largest DMAs."

"From the box office to the corporate office, the people of Carmike remain committed to providing best-in-class entertainment experiences to our guests. We are extremely pleased with our record 2015 fourth quarter and full year financial results and are optimistic about the prospects for 2016,” concluded Passman.

Carmike Cinemas’ chief financial officer Richard B. Hare said, “Our fourth quarter operating revenue increase of 19 percent reflects a 16.3 percent increase in admissions revenue and a 23.4 percent rise in concessions and other revenue based on higher attendance and per patron spend. Q4 average ticket prices and concessions and other spending per patron rose 9.9 percent and 16.6 percent, respectively. Overall, guests spent an average of $13.41 per Carmike visit in the fourth quarter, representing a 12.5 percent increase in combined per-patron spending, compared to the prior year. We believe growth in these metrics showcases the success of our initiatives focused on increasing attendance, growing concession sales and further leveraging our overall theater-level operations.

“The year-over-year increases in our three theatre-level expense categories primarily reflect the overall increase in Carmike’s average screen count related to recent acquisitions and new theatre openings as well as the favorable industry box office. Notably, as a percentage of total operating revenues, on a combined basis, these theatre-level expense categories decreased from the comparable year ago period by 440 basis points to 38.5 percent.

“Fourth quarter adjusted EBITDA increased 61.4 percent to $44.7 million versus the same period last year and theatre level cash flow rose approximately 50.6 percent over Q4 2014 to $52.0 million. Our Adjusted EBTIDA margin of 20.3 percent marked a 530 basis point improvement over the prior year’s fourth quarter.

“Reflecting Carmike's commitment to building long term shareholder value, and to underscore our confidence in our strategies, the Board of Directors recently authorized a $50 million share repurchase program, which resulted in repurchases of approximately 305,000 shares at an average price of $22.42 per share. With a healthy balance sheet, including cash in excess of $100 million, Carmike has the liquidity and financial flexibility to further expand through additional accretive acquisitions and new build growth opportunities while maintaining modest leverage of sub-4x, and returning capital to shareholders through opportunistic share repurchases and pursuing other initiatives that enhance shareholder value,” concluded Hare.

Carmike Cinemas