Carmike Cinemas Announces $50 Million Share Repurchase Program

Carmike Cinemas, Inc. (NASDAQ:CKEC), a leading entertainment, digital cinema, alternative programing and 3-D motion picture exhibitor, today announced that its Board of Directors has authorized a $50 million share repurchase program.

“This share repurchase program reflects our confidence in Carmike’s strategy and our belief that Carmike’s stock represents an attractive investment opportunity,” said David Passman, President and Chief Executive Officer of Carmike Cinemas. “We are pleased that the Company’s financial strength and cash flows provide us with the flexibility to support both this buyback program and the initiatives we have underway to enhance and expand our theater footprint, including through additional accretive acquisition opportunities.”

Mr. Passman continued, “We are committed to enhancing shareholder value. We will continue to regularly review our capital allocation to ensure it is optimized to support the needs of the business and directed to the areas where we believe we can drive the greatest value for our shareholders and deliver the best experience for our guests.”

The Board regularly reviews the Company’s business and capital allocation to ensure Carmike is best positioned for growth and value creation. The decision to initiate this share repurchase program follows such review conducted by Carmike’s Board with the assistance of outside financial advisors. As part of this review, the Board considered that there are additional value-enhancing acquisition opportunities available to Carmike, similar to Carmike’s recent acquisition of Sundance Cinemas, LLC. In addition, Carmike has identified and is investing in a number of organic growth initiatives, including new builds, expansion of its dine-in locations and theater upgrades. After considering a range of capital return options, including the potential for a share repurchase program and/or a dividend, the Board determined that the $50 million repurchase program was optimal as it allows for a return of capital to shareholders while at the same time preserving the Company’s financial strength and flexibility to pursue accretive acquisition opportunities and internal organic growth initiatives.

The Company may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws, and the repurchase program may be suspended or discontinued at any time. The timing and amounts of any purchases under the share repurchase program will be based on market conditions and other factors including price and capital availability. The Company intends to fund the share repurchase program with cash from operations. The share repurchase program will expire on December 10, 2018.

About Carmike Cinemas (www.carmike.com)

Carmike Cinemas, Inc. is a U.S. leader in digital cinema, 3-D cinema deployments and alternative programming and is one of the nation's largest motion picture exhibitors. Carmike has 275 theatres with 2,921 screens in 41 states. The circuit includes 50 premium large format (PLF) auditoriums featuring state-of-the-art technology and luxurious seating, including 32 “BigDs,” 16 IMAX auditoriums and two MuviXL screens. As “America’s Hometown Theatre Chain” Carmike’s primary focus is mid-sized communities. Visit www.carmike.com for exact show-times and to purchase tickets.

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 our 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 statements relating to the share repurchase program, the timing and amount, if any, of the shares to be purchased thereunder, food and beverage strategies, circuit expansion and additional acquisition opportunities. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of 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. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include, but are not limited to: our ability to achieve expected results from our strategic acquisitions, general economic conditions in our regional and national markets; our ability to comply with covenants contained in our senior secured credit agreement and the indenture governing our 6.00% Senior Secured Notes due 2023; our 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; our ability to meet our contractual obligations, including all outstanding financing commitments; the availability of suitable motion pictures for exhibition in our markets; competition in our markets; competition with other forms of entertainment; and other factors, including the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014, under the caption “Risk Factors.” 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.

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