SOURCE: Carmike Cinemas, Inc

March 15, 2006 16:56 ET

Carmike Cinemas, Inc. Announces Delayed Form 10-K Filing

COLUMBUS, GA -- (MARKET WIRE) -- March 15, 2006 -- Carmike Cinemas, Inc. (the "Company") (NASDAQ: CKEC) announced today that it will delay the filing of its Form 10-K for the year ended December 31, 2005.

This delay is due to the need to complete additional research required to analyze technical accounting issues relating largely to FASB Interpretation No. 47 ("FIN 47"), "Accounting for Conditional Asset Retirement Obligations", FASB 144 "Accounting for the Impairment or Disposal of Long Lived Assets" ("FAS 144"), a financing obligation on a theatre opened in 2005 and a lease cancellation on one theatre in exchange for the modification of five theatre leases with the same landlord. This additional research has been time consuming partly because of departures and changes in our accounting and finance staff in 2005. FIN 47 requires the Company to recognize a liability for the fair value of a conditional Asset Retirement Obligation ("ARO") such as potential environmental remediation. FAS 144 requires the Company to test for potential asset impairments where events or changes in circumstances suggest the carrying value of an asset may not be recoverable. We do not expect this review to have a significant impact on the Company's cash flows for the year ended December 31, 2005. After we have completed our reviews and made any necessary adjustments, we will also need to determine the impact on management's report on internal control over financial reporting as of December 31, 2005. We expect to complete the reviews and analysis in a timely manner and file our Form 10-K for the year ended December 31, 2005 within the 15 day extension period.

As indicated in our Form 12b-25 filed with the Securities and Exchange Commission, we anticipate that revenues, operating income and net income for the year ended December 31, 2005 will be significantly lower than revenues, operating income and net income for the year ended December 31, 2004. Revenues were negatively impacted by the decreased box office across the industry generally during the year ended December 31, 2005. In addition, our total costs and expenses were higher for the year ended December 31, 2005 due primarily to increases in theatre operating costs and depreciation and amortization expense related to theatre development, retrofitting and acquisition activities in 2005.

Carmike Cinemas, Inc. is a premiere motion picture exhibitor in the United States with 301 theatres and 2,475 screens in 37 states, as of December 31, 2005. Carmike's focus for its theatre locations is small to mid-sized communities with populations of fewer than 100,000. Carmike's common stock is traded on the NASDAQ National Market under the ticker symbol "CKEC". For more information visit Carmike's website,

This press release may contain forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words, "believes," "expects," "anticipates," "plans," "estimates" or similar expressions. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of our management, which in turn are based on currently available information. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Such factors include, but are not limited to, the following: the availability of suitable motion pictures for exhibition in our markets; competition in our markets; competition with other forms of entertainment; the effect of our leverage on our financial condition; and other factors, including those discussed under the caption "Information About Forward-Looking Statements" in our Form 10-Q for the quarterly period ended September 30, 2005 and "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2004. The risk factors discussed in our Form 10-K under the heading "Risk Factors" are specifically incorporated by reference in this presentation.

We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Contact Information

    Judy Russell
    Director of Investor and Public Relations