COLUMBUS, Ga. & NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, and Continental Concession Supplies Inc. (“CCSI”), a New York-based movie theatre and specialty market candy, snacks, janitorial and paper goods distributor, announced today the signing of a new long-term national distribution partnership. Under the agreement, CCSI will supply Carmike with substantially all of its concessions and janitorial needs. CCSI will commence distribution to all 247 Carmike Cinemas theatres on November 1, 2013.
The new partnership allows Carmike to capitalize upon CCSI’s national distribution capabilities, thereby reducing delivery lead times and allowing the Company to source virtually all of its concession, janitorial, paper and food products, for the first time ever, from one source. In response to the agreement, CCSI plans the immediate opening of a new distribution facility in Charlotte, NC, expanding their current network of distribution facilities to six.
In addition, the arrangement provides Carmike with further flexibility by offering an expanded menu of the best-performing food items, including gourmet and frozen foods, while leveraging the buying power and industry expertise of CCSI. With an expanded concessions selection, Carmike expects to rotate menu items faster, facilitating additional menu experimentation.
Carmike Cinemas’ President and Chief Executive Officer David Passman stated: “Carmike has established a strong reputation for growth and innovation in the theatre concessions arena by achieving increased per patron spending while maintaining solid margins. We are pleased to take the next step in our concessions growth by forging a new partnership with CCSI, an organization that we believe possesses the buying power and industry expertise to support our future success.”
CCSI Executive Vice President of Sales and Procurement Adam Gottlieb stated: “CCSI is honored to be appointed as the national supplier to Carmike Cinemas for all of their concession and janitorial needs. CCSI searches for dynamic, growing companies like Carmike to partner with, thus creating relationships that are mutually beneficial to both companies. I know we have entered into such a long-term partnership with Carmike, and our entire organization is excited to begin servicing their entertainment complexes across the nation.”
About Carmike Cinemas (www.carmike.com)
Carmike Cinemas, Inc. is a U.S. leader in digital cinema, 3-D cinema deployments and one of the nation’s largest motion picture exhibitors. As of June 30, 2013, Carmike had 245 theatres with 2,476 screens in 35 states. Carmike’s digital cinema footprint reached 2,373 screens, including 227 theatres with 940 screens that are also equipped for 3-D. The circuit also includes 19 “Big D” large format digital experience auditoriums, featuring state-of-the-art equipment and luxurious seating and 8 IMAX® auditoriums. As “America’s Hometown Theatre Chain,” Carmike’s primary focus for its locations is small to mid-sized communities.
About Continental Concession Supplies Inc. --- www.ccsicandy.com
Continental Concession Supplies Inc., headquartered in New Hyde Park, NY, is an industry leader in supplying candy, snacks, paper, and janitorial supplies to the movie theater and specialty markets class of trade.
CCSI’s six company owned distribution facilities enable CCSI to provide industry leading customer service levels and pricing to customers throughout the continental United States, and their state of the art, proprietary software package, Forward Thinking Systems, allows them to offer a vast array of customer specific reporting capabilities to their customers.
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about Carmike’s beliefs, expectations and future performance, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words, “believes,” “expects,” “anticipates,” “plans,” “estimates,” “seeks” or similar expressions. Examples of forward-looking statements in this press release include Carmike’s expectations regarding the expected impact of the CCSI agreement. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of Carmike’s 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 Carmike’s ability to control or predict. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include, but are not limited to: Carmike’s ability to achieve expected results from its strategic acquisitions, general economic conditions in Carmike’s regional and national markets; Carmike’s ability to comply with covenants contained in its senior secured credit agreement and the indenture governing its 7.375% Senior Secured Notes due 2019; Carmike’s ability to operate at expected levels of cash flow; financial market conditions including, but not limited to, changes in interest rates and the availability and cost of capital; Carmike’s ability to meet its contractual obligations, including all outstanding financing commitments; the availability of suitable motion pictures for exhibition in Carmike’s markets; competition in Carmike’s markets; competition with other forms of entertainment; and other factors, including the risk factors disclosed in Carmike’s Annual Report on Form 10-K for the year ended December 31, 2012, under the caption “Risk Factors.” Carmike believes 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 Carmike undertakes no obligation to update publicly any of them in light of new information or future events.
