Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, June 27, 1995 TAG: 9506270039
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Knight-Ridder/Tribune|
DATELINE: COLUMBUS, GA. LENGTH: Medium
The company said Monday it completed purchase of 145 screens near Atlanta and in central Florida, inching it close to the current No. 1 exhibitor, United Artists Theater Circuit Inc.
Since January 1994, Carmike has operated three theaters in the Roanoke Valley: Salem Valley 8; Tanglewood Mall Cinema I, II, and III; and Valley View Cinema, a total of 17 screens. The three theaters employ approximately 100 people and contribute about 3 percent to Carmike's total revenue, said John Barwick, vice president of finance.
In 1994, the company reported net income of $16.9 million on revenues of $327 million. Revenues rose 26 percent from the previous year.
Carmike is gaining on its competition rapidly.
The company plans to overtake United Artists - which has 2,316 screens in 425 theaters - before Christmas by opening 140 new screens in theaters under construction.
In the last two years, the 13-year-old company has added 900 screens.
All the company's purchases are cash transactions.
Carmike President Mike Patrick is considering other purchases, with the goal of growing to a 6,000-screen company.
``I have this offer on my desk and another offer here,'' he said, lifting piles of papers. ``I just haven't had time to look at them yet.''
U.S. maps with little lights illuminating the locations of Carmike theaters across the country hang in all Carmike theaters. At least eight maps poked with colored pins hang in Patrick's office.
The biggest map shows Carmike theaters. Smaller maps indicate United Artists and Cineplex Odeon theaters. Another map shows the locations of theater chains Patrick thinks would make good purchases.
According to the National Association of Theater Owners, there are 26,689 theater screens in the United States.
Mark Allen, an analyst with Robinson Humphrey in Atlanta, said Carmike has room to grow.
``There are a lot of markets where they need to shore up their presence, and there are some areas geographically where they don't have locations right now,'' he said.
John Barwick, Carmike's vice president of finance, said the company is raring to go. ``It's a pretty safe assumption to say that we will buy something new by the end of the year.''
Carmike's acquisition frenzy, which dates from 1983, has been fueled by a nationwide slump in movie attendance. Slowdowns make theater owners more willing to sell their properties, Patrick said.
``Any time there is a decline in attendance, you will see us expanding quicker than we usually do,'' he said. ``We have always expanded Carmike by taking advantage of the misfortune of others.''
Staff writer Shannon D. Harrington contributed information to this story.
by CNB