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Carmike Cinemas Q3 Adjusted EBITDA Increases 56%

Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today reported results for the three and nine months ended September 30, 2011, as summarized below.

Carmike Cinemas President and Chief Executive Officer David Passman stated, "Carmike achieved a continuation of the positive operating momentum we established in Q2, posting our second consecutive eight percent year-over-year increase in quarterly per-screen attendance, well ahead of the domestic industry. The increase in attendance contributed to a 5.6% increase in our box office and 14.4% increase in concessions and other revenue for Q3 2011 compared with the same quarter of the prior year. In addition, we extended our streak of year-over-year per-cap concessions and other revenue increases to a seventh consecutive quarter.

"We are pleased with our progress in further enhancing and 'refreshing' our theatrical circuit which was accomplished by making some necessary capital improvements as well as closing unprofitable theatres and exiting a number of leases. With that in our rearview mirror, we are proactively focusing on growing our circuit and expanding Carmike's Small-Town America footprint.

"During the third quarter, we made numerous announcements on that front, including the acquisition of the MNM circuit with 40 screens based in the Atlanta, GA area, which closed on October 21. We recently announced two new entertainment complexes with openings slated for summer 2012. One facility (located at the Grand Boulevard complex in Sandestin, FL) will include a Carmike Big D large format digital experience screen and our second Ovation Club VIP dining auditorium. The other new theatre (based in The Village at Myrtle Grove in Wilmington, NC) will include a Big D auditorium.

"In Q3, we opened Big D large format screens at three additional theatres, the Shiloh 14 in Billings, MT, the Carmike 14 in Tyler, TX and the Wynnsong 11 in Savannah, GA. We also just completed expanding our Missoula, MT Carmike 10 theatre from a 10-plex to a 12-screen complex, including the addition of a new Big D theatre plus a second auditorium featuring a large digital screen.

"We are opening a new 12-plex in West Pottsgrove, PA next week and are also in the final stages of construction on a 12-screen Carmike theatre in Winder, GA expected to open in early 2012. In addition to these and the aforementioned Sandestin and Wilmington sites, we have new-build theatres in various stages of construction set for Maryville, TN and Jacksonville, NC," concluded Mr. Passman.

Admissions revenue for Q3 2011 increased to $86.4 million from $81.9 million for Q3 2010. Q3 admissions per patron declined 1.8 percent to $6.49, primarily as a result of increased discounts and promotional activities during the period, versus the corresponding year-ago quarter. Concessions and other revenue increased from $41.6 million in Q3 2010 to $47.5 million in Q3 2011. Average concession and other revenues per patron rose 6.3 percent to $3.57, compared to Q3 '10.

Carmike Cinemas Chief Financial Officer Richard Hare stated, "During the three-month period, film exhibition costs improved 70 basis points to 54.5 percent of admissions revenues, down from 55.2 percent in the year-earlier quarter. Other theatre operating costs declined 0.7 percent to $54.5 million, versus $54.9 million in the year-ago period. Decreases in repairs and maintenance costs and insurance expenditures were the main drivers of the year-over-year decline in other theatre operating costs. General and administrative expenses were $4.5 million, compared to $4.4 million in the 2010 third quarter.

"Carmike's Q3 interest expense fell 8.4 percent to $8.1 million, primarily as a result of the Company's lower outstanding debt balance given our voluntary prepayments over the trailing twelve-month period, including $25 million during the first half of 2011.

"Income tax expense for Q3 2011 was $3.9 million compared with an income tax benefit of $2.4 million in the year ago quarter. The current quarter expense was primarily attributable to our receipt of $30 million from Screenvision in early 2011. Excluding this charge, basic and diluted earnings per share for the quarter would have been significantly higher.

"Additionally, our Screenvision profits interest contributed to our bottom line performance during Q3 2011," Mr. Hare concluded.

Supplemental Financial Measures

Theatre level cash flow, EBITDA, adjusted EBITDA, adjusted net income (loss), total debt and net debt are supplemental non-GAAP financial measures used by Carmike to evaluate its operating performance. Carmike defines theatre level cash flow as adjusted EBITDA, as defined below, plus general and administrative expenses. Carmike believes that theatre level cash flow is an important supplemental measure of operating performance for a motion picture exhibitor's operations because it provides a measure of the core operations, rather than factoring in items such as general and administrative expenses and depreciation and amortization, among others. In addition, Carmike believes that theatre level cash flow, as defined, is a widely accepted measure of comparative operating performance in the motion picture exhibition industry. Adjusted net income (loss) is defined as net income (loss) plus impairment of long-lived assets, loss on extinguishment of debt, write-off of note receivable, severance agreement charges and sales and use tax audit assessment. Carmike believes adjusted net income (loss) is an important supplemental measure of operating performance for a motion picture exhibitor because it provides a measure of core operations. Total debt is defined as the sum of current maturities of long-term debt, capital leases and long-term financing obligations, long-term debt (less current maturities) and capital leases and long-term financing obligations (less current maturities). Net debt is defined as total debt less cash and cash equivalents. EBITDA is defined as net income (loss) plus income tax expense (benefit), interest expense and depreciation and amortization. Adjusted EBITDA is defined as net income (loss) plus income tax expense (benefit), interest expense, depreciation and amortization, (income) loss from unconsolidated subsidiaries, (income) loss from discontinued operations, loss on extinguishment of debt, sales and use tax audit assessment, severance agreement charges, (gain) loss on sale of property and equipment, write-off of note receivable and impairment of long-lived assets. Carmike believes that EBITDA and adjusted EBITDA are important supplemental measures of operating performance for a motion picture exhibitor's operations because they provide measures of core operations.

About Carmike Cinemas (www.carmike.com)

Carmike Cinemas, Inc. is a U.S. leader in digital cinema and 3-D cinem

Jaffoni & Collins - Investor Relations
Robert Rinderman or Joseph Jaffoni
212-835-8500 or ckec@jcir.com
or
Carmike Cinemas, Inc.
Richard B. Hare, 706-576-3416
Chief Financial Officer