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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 10, 1999
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CARMIKE CINEMAS, INC
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 0-14993 58-1469127
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
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1301 First Avenue, Columbus, Georgia 31901
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (706) 576-3400
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(Former name or former address, if changed since last report)
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ITEM 5 Other Events
On August 10, 1999, Carmike Cinemas, Inc. (the "Company") issued a
press release announcing results for the second quarter ended June 30, 1999 and
the authorization by the Company's Board of Directors of a stock repurchase
program for shares of the Company's Class A Common Stock. The information
contained in such press release is hereby incorporated by reference into this
Report.
ITEM 7 Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99 Press Release of the Company dated
August 10, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CARMIKE CINEMAS, INC.
Registrant
/s/ Martin A. Durant
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Martin A. Durant
Senior Vice President-Finance
Dated: August 13, 1999
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EXHIBIT INDEX
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Exhibit
Number Description
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99 Press release of Carmike Cinemas, Inc. (the "Company") dated August 10, 1999.
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EXHIBIT 99
FOR IMMEDIATE RELEASE
August 10, 1999
CONTACT: Martin A. Durant
Chief Financial Officer
(706) 576-3416
Janice J. Kuntz
Fleishman-Hillard
(404) 659-4446
CARMIKE CINEMAS, INC. REPORTS
POSITIVE SECOND QUARTER EARNINGS
BOARD APPROVES STOCK REPURCHASE PLAN
COLUMBUS, Georgia - Carmike Cinemas, Inc. (NYSE: CKE) today announced results
for the second quarter ended June 30, 1999. Revenues for the second quarter
were $125.3 million, an increase of 13.2 percent over revenues of $110.7
million for the second quarter a year ago. Net income available for common
shares for the quarter was $3.1 million, or $.28 per share, compared with net
income of $.4 million, or $.03 per share, in the same quarter last year.
Earnings for the second quarter of 1999 include a credit from a change in
estimated restructuring costs of $2.7 million before applicable taxes.
Excluding this credit, earnings were $1.5 million, or $.13 per share, an
increase of over 300 percent on a per share basis over the second quarter of
1998.
Revenues for the six months ended June 30, 1999 were $223.0 million, compared
with revenues of $227.8 million reported for the same period in 1998. Excluding
the extraordinary item and restructuring credit, the company reported a net
loss of $1.6 million, or $.14 per share for the six months ended June 30, 1999,
compared to net income of $4.2 million, or $.36 per share for the six months
ended June 30, 1998. Including the extraordinary item incurred in connection
with the February, 1999 debt restructuring and the restructuring credit, the
net loss for the six months ended June 30, 1999 was $6.2 million, or $.55 per
share.
The credit related to a change in the estimated restructuring expenses reported
for the fourth quarter of 1998. This change was due to a landlord initiated
early lease buyout on one of the properties included in the restructuring plan.
Martin A. Durant, Chief Financial Officer, stated, "Similar transactions may
occur in future periods as we continue to review our ability to reduce lease
commitments on properties included in our restructuring plan."
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Michael W. Patrick, President and Chief Executive Officer of Carmike,
commented, "We are inspired by the results in our newer theatres which
contributed significantly to the over 41 percent increase in EBITDA for the
second quarter compared to the same quarter in 1998. The increase in attendance
per average screen of 8.6 percent over 1998 levels demonstrates the public's
positive acceptance of the product (movies out of Hollywood) and our newer
facilities. We are still looking for this to be a strong summer with great
product available for everyone in the family. In regards to our real estate
activities, we are on track with our expansion program to achieve our goal of
348 new screens opened by the end of the year. We also have 23 acres of surplus
property which we are reviewing for possible sale opportunities."
The Company also announced that its Board of Directors has authorized a stock
repurchase program for shares of the Company's Class A Common Stock. The
program authorized the Company to make repurchases from time to time, in the
open market or through privately negotiated transactions, of the Class A Common
Stock, depending upon market conditions and other factors. At June 30, 1999,
the Company had 9.968,287 shares of its Class A Common Stock outstanding.
Regarding the repurchase plan, Mr. Durant stated, "We believe the repurchase
plan will allow the Company to take advantage of the current market position of
our stock, and the Board's approval of the stock repurchase plan demonstrates
our belief in the long-term value of our operations."
Carmike Cinemas, Inc. is the nation's third largest motion picture exhibitor in
terms of the number of screens operated. As of July 31, 1999, the Company
operates 2,743 screens at 461 locations in 36 states.
# # #
This press release includes forward-looking statements in addition to
historical information. The words "expect," "anticipate," "intend," "plan,"
"believe," "seek," "estimate" and similar expressions are intended to identify
such forward-looking statements; however, this press release also contains
other forward-looking statements in addition to historical information. The
Company cautions that there are various important factors that could cause
actual results to differ materially from those indicated in the forward-looking
statements; accordingly, there can be no assurance that such indicated results
will be realized. Among the important factors that could cause actual results
to differ materially from those indicated by such forward-looking statements
are competitive pressures in the Company's secondary market niche, dependence
upon motion picture production and performance, seasonality, business
conditions in the movie industry and other complementary markets, general
economic conditions and the risk factors detailed from time to time in the
Company's periodic reports and registration statements filed with the
Securities and Exchange Commission, including the Company's Annual Report on
Form 10-K for the year ended December 31, 1998. By making these forward-looking
statements, the Company does not undertake to update them in any manner except
as may be required by the Company's disclosure obligations in filings it makes
with the Securities and Exchange Commission under the Federal securities laws.
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CARMIKE CINEMAS, INC.
For quarter and six months ended June 30, 1999 - Unaudited
(000's omitted)
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Quarter Ended June 30 Six Months Ended June 30
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1999 1998 1999 1998
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Admissions $ 87,046 $ 76,026 $ 154,068 $ 156,651
Concession & Other 38,227 34,672 68,921 71,189
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Total Revenue $ 125,273 $ 110,698 $ 222,989 $ 227,840
Film Exhibition Costs 48,897 42,435 84,115 85,101
Concession Costs 4,984 4,937 8,703 9,611
Cost of Operations 46,736 45,407 90,619 92,057
General & Administrative 1,788 1,768 3,653 3,499
Depreciation and Amortization 10,046 9,088 19,552 18,074
Decrease in estimated Restructuring Costs (2,671) 0 (2,671) 0
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Total Cost of Sales $ 109,780 $ 103,635 $ 203,971 $ 208,342
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Operating Income $ 15,493 $ 7,063 $ 19,018 $ 19,498
Interest Expense 9,195 6,477 16,501 12,794
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Income before Income Taxes and Extraordinary Item $ 6,298 $ 586 $ 2,517 $ 6,704
Income Taxes 2,393 224 956 2,548
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Net Income before Extraordinary item $ 3,905 $ 362 $ 1,561 $ 4,156
Extraordinary Item (net of income taxes) 0 0 (6,291) 0
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Net Income (Loss) $ 3,905 $ 362 $ (4,730) $ 4,156
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Preferred Stock Dividends 756 0 1,512 0
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Net Income (Loss) available for Common Stock $ 3,149 $ 362 $ (6,242) $ 4,156
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Weighted average shares outstanding:
- Basic 11,382 11,360 11,373 11,350
- Diluted 11,416 11,434 11,405 11,429
Earnings (loss) per common share before extraordinary item
- Basic $ 0.28 $ 0.03 $ -- $ 0.37
- Diluted $ 0.28 $ 0.03 $ -- $ 0.36
Earnings (loss) per common share
- Basic $ 0.28 $ 0.03 $ (0.55) $ 0.37
- Diluted $ 0.28 $ 0.03 $ (0.55) $ 0.36
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