Carmike Cinemas, Inc., a leading entertainment, digital cinema and 3-D motion picture exhibitor, today reported results for the three and nine month periods ended September 30, 2015, as summarized below.

“Carmike’s record third quarter operating revenue growth reflects the successful execution of our strategies to add value through theatre acquisitions and organic growth and the ongoing success of our theatre-level initiatives, combined with the support of a favorable year-to-date U.S. box office environment. Over the past several years, Carmike’s admissions revenue growth per screen has consistently outpaced the industry. The 2015 third quarter extended this trend as admissions revenues per screen grew nearly 9%, outperforming the industry by approximately 290 basis points. Attendance growth of nearly 7% and a 4% increase in average ticket prices versus the comparable 2014 period generated an 11% rise in total operating revenues,” stated David Passman, Carmike Cinemas’ President and Chief Executive Officer.

“In the third quarter, we extended our success around our food and beverage initiatives, which we believe is an important factor in our ability to support top-line growth, with an 11% increase in total concessions and other revenues and 5% rise in concessions and other spending per patron. By expanding in-theatre dining services to additional markets and further building on our successful long-term food and beverage strategies, we maintained healthy gross margins while generating concessions and other spending per patron of $4.55, marking 23 consecutive reporting periods of year-over-year concessions and other per patron spending growth.

“Over the last three years, Carmike has effectively executed its long-term strategy to identify, efficiently finance and integrate accretive theatre acquisitions, which we believe will enhance shareholder value. On October 6, 2015, the Company acquired Sundance Cinemas for $36 million in cash. The Sundance transaction is another positive development for Carmike and we intend to continue our role as an industry consolidator. With a strong balance sheet that includes over $120 million in cash and a recently refinanced capital structure that affords us the financial flexibility to continue pursuing additional strategic transactions and organic growth opportunities, we remain confident in the Company's prospects to further expand the business for sustainable growth.

“In summary, we are pleased with our record year-to-date operating revenues and remain optimistic that the positive operating environment will continue for the remainder of 2015 and beyond,” concluded Mr. Passman.

Carmike Cinemas’ Chief Financial Officer Richard B. Hare stated, “Third quarter operating revenue increase of 10.8% reflects balanced growth across our two revenue streams - a 10.4% increase in admissions revenue and 11.4% rise in concessions and other revenue. Top-line growth is attributable to Carmike’s expanded theatre circuit, favorable box office environment, and our ability to gain a greater share of the consumer wallet as reflected in a 4.9% rise in average attendance per screen, a 3.6% increase in average ticket prices and a 4.6% rise in concessions/other spending per patron. Overall, guests spent an average of $11.78 per visit in the third quarter, which represents a 4% increase in combined per-patron spending, compared to the prior year.

“Carmike’s Q3 2015 film exhibition costs as a percentage of admissions revenues were 55.5%, versus 54.6% in the third quarter of 2014, as a result of strong performing titles. Concession costs as a percentage of concessions and other revenue increased to 12.8%, due to higher costs related to our Ovation dine-in theatres, expanded beverage offerings, (including alcohol), at a greater number of locations and the timing of concession rebates.

“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. Salaries and benefits rose $2.8 million to $25.7 million while theatre occupancy costs increased $2.2 million to $24.0 million and other theatre operating costs rose to $34.6 million, compared to $31.4 million in the third quarter of 2014. As a percentage of total operating revenues, these combined theatre-level expense categories remained flat at 46.8% versus the prior year period.

“General and administrative expenses were $7.0 million for the third quarter of 2015, including $1.2 million of non-cash share-based compensation expense and $0.3 million of one-time merger and acquisition related costs, while quarterly interest expense decreased $0.5 million to $12.3 million in the quarter, primarily due to more favorable terms as a result of the refinancing transactions we completed in the second quarter of 2015.

“Adjusted EBITDA increased 4.6% to $20.1 million and theatre level cash flow rose approximately 4.2% to $25.6 million. We will continue to exercise sensible cost management, especially on controllable expenses, to maximize our future organizational operating performance.

“We continue to have a strong balance sheet and ample liquidity to fund our operating and growth strategies as reflected in our cash position of $120.4 million at September 30, 2015. Net debt for the quarter was $336.3 million, compared with $347.5 million at December 31, 2014. We expect Carmike’s total financial leverage ratio to remain below 4x, reflecting recent refinancing activity inclusive of approximately $1.7 million in annual interest expense savings through 2023. Our capital allocation strategy continues to focus on deploying cash to expand our theatre circuit through accretive acquisitions and new build locations,” concluded Mr. Hare.