“The second quarter was an active and productive period for the cinema exhibition industry and while we are only a little over three weeks into Q3, the industry has continued to generate positive results at the box office and we remain optimistic about the back half of 2013.

“We continue to explore opportunities to grow the circuit and are pleased to have announced the purchase of three theatres from Cinemark last week as well as the completion of our new build-to-suit theatre in Winchester, VA in late June. As a result of the purchase from Cinemark, we are adding our 8th IMAX screen to the circuit. Combined with our 19th Big D auditorium opening in Winchester, our circuit now has 27 premium large-format auditoriums.”

Carmike Cinemas’ Chief Financial Officer Richard B. Hare stated, “Carmike’s average Q2 admissions per patron increased 4.5% to $7.22, primarily due to price increases and an uplift from recent acquisitions. Average concessions and other revenue per patron rose 6.9% to $4.19. In aggregate, per patron spending rose 5.4% to a record $11.41, up from $10.83 a year earlier.

“We continue to trade margin percentage for margin dollars as our concessions and other revenue margin increased to $54.9 million in the 2013 period from $43.6 million in the 2012 period. As a percentage of concessions and other revenues, concessions costs for the quarter were 12.3%, compared to 11.2% in the comparable quarter. The increase is due primarily to an increase in the cost of concession supplies and increased discounts and other promotional activities. Film exhibition costs as a percentage of admissions revenue increased 90 basis points to 56.7%.

“As a percentage of total operating revenues, other theatre operating expenses decreased from 38.6% in Q2 2012 to 36.2% in Q2 2013. Other theatre operating expenses increased to $61.8 million for the three months ended June 30, 2013, compared to $52.3 million for the same period in 2012, largely a reflection of the 9.5% increase in Carmike’s average screen count. General and administrative expenses were $6.0 million for the three months ended June 30, 2013, compared to $5.2 million for the same period in 2012, primarily due to costs associated with ongoing merger and acquisition activities.

“Second quarter theatre level cash flow rose 35.0% to $39.8 million and adjusted EBITDA increased 39.8% to $34.0 million. Our Q2 adjusted EBITDA margin rose to 20.0%, versus 18.0% in the prior year period. We believe these results again demonstrate that Carmike is successfully managing both fixed and variable costs and we remain focused on taking additional steps that can further enhance value by deploying free cash flow to grow our business, while maintaining a modest leverage profile.” 

Carmike Cinemas, Inc. also today announced it has commenced an underwritten public offering of 4,500,000 shares of its common stock. In addition, Carmike expects to grant the underwriters a 30-day option to purchase up to an additional 675,000 shares of common stock, on the same terms and conditions, to cover over-allotments, if any. Carmike plans to use the net proceeds from this offering for potential acquisitions, working capital, capital expenditures or other general corporate purposes. Macquarie Capital is acting as the sole bookrunning manager for the offering. B. Riley & Co., Wedbush Securities,