Carmike Cinemas, Inc., a leading entertainment, digital cinema, alternative content and 3-D motion picture exhibitor, reported results for the three and nine-month periods ended September 30, 2016, as summarized below.

“Carmike’s third quarter operating revenue growth reflects the ongoing success of our theatre-level initiatives and strategies from both theatre acquisitions and organic growth, combined with the support of a favorable U.S. box office environment. While average ticket prices increased modestly versus the prior year period, third quarter 2016 attendance growth of 13% generated a 16% rise in operating revenues, as well as a 187% increase in operating income, resulting in adjusted EBITDA and theatre level cash flow growth of approximately 63% and 49%, respectively,” stated David Passman, Carmike Cinemas’ President and Chief Executive Officer.

“The continued progress of our food and beverage initiatives is reflected by the 7% increase in concessions and other spending per patron to a record third quarter level of $4.85, marking 27 consecutive reporting periods of year-over-year concessions and other per patron spending growth while maintaining healthy margins. Our team has long-term success in driving innovation at the concessions counter and our enhanced food and beverage offerings and unique dining concepts continue to generate positive results and growth for Carmike in this high-margin revenue category.

"In summary, Carmike’s circuit of high quality theatres, Company-wide emphasis on providing best-in-class entertainment experiences to our guests and focus in maximizing high-margin concessions revenue opportunities remain important factors in our ability to deliver positive operating results over the long-term. We are extremely pleased with our third quarter financial results and are optimistic about our prospects for the remainder of 2016,” concluded Mr. Passman.

Carmike Cinemas’ Chief Financial Officer Richard B. Hare stated, “A favorable year-over-year industry box office comparison led to an approximate 10.9% increase in attendance per screen, resulting in a 13.9% increase in admissions revenue and a 20.3% increase in concessions and other revenue. Average admissions per patron increased 1.0% to $7.30, while guests spent an average of $12.15 per visit in the quarter, a 3.1% increase in combined per patron spending, compared to the prior year period.

“Carmike’s 2016 third quarter film exhibition costs as a percentage of admissions revenues were 55.3%, compared to 55.5% in the third quarter of 2015. Concession costs as a percentage of concessions and other revenue decreased from 12.8% in Q3 2015 to 12.2% in Q3 2016, while salaries and benefits increased 5.3% to $27.1 million, theatre occupancy costs increased 10.9% to $26.6 million, and other theatre operating costs increased 9.5% to $37.9 million. The year-over-year rise in these three expense categories were primarily a result of Carmike’s expanded circuit on the back of acquisitions and new theatre openings, as well as an increase in theatre-level staffing levels related to higher attendance. General and administrative expenses were $13.0 million for the third quarter of 2016, including $0.7 million of non-cash share-based compensation expense and $6.8 million of M&A related costs. Quarterly interest expense remained relatively flat at $12.4 million in Q3 2016. A net loss for the quarter of $1.4 million compares favorably to a net loss of $6.3 million in the prior year period. Adjusted EBITDA increased 62.9% to $32.7 million, and theatre level cash flow increased 49.3% to $38.2 million, as a result of attendance increases and the year-over-year rise in top-line revenue.

“Looking at our balance sheet, we continue to operate our business on solid financial footing with a healthy balance sheet that includes cash and cash equivalents totaling $95.4 million at September 30, 2016. Total debt as of September 30, 2016 was $462.4 million, compared with $454.7 million at December 31, 2015. Net debt¹ for the quarter was $367.1 million, compared with $352.2 million at December 31, 2015, reflecting a net leverage ratio of net debt to EBITDA of approximately 2.5 times," concluded Mr. Hare.