Carmike Cinemas (CKEC) Closes Digital Cinema Destinations (DCIN) Acquisition

Carmike Cinemas (Nasdaq: CKEC) announced the closing of its stock-for-stock acquisition of Digital Cinema Destinations Corp. (Nasdaq: DCIN) (“Digiplex”), including its 21 theatres with 206 screens and four location pipeline of 33 screens. Each outstanding Digiplex share was converted into the right to receive 0.1765 shares of Carmike common stock, or approximately 1.4 million Carmike shares in the aggregate.

Carmike expects to immediately integrate the 21 acquired theatres onto its national footprint and complete the pipeline theatre acquisitions, during Q3 or early Q4. The acquisition further expands Carmike’s domestic entertainment complex circuit to 2,900+ screens and 276 locations across 41 states.

Carmike’s President and Chief Executive Officer David Passman stated, “In addition to continuing our successful execution of Carmike’s strategic M&A plan and adding complementary, well-managed theatres to our circuit, we also expect to gain valuable insight from Digiplex’s dedicated alternative programming team, led by CEO/Founder Bud Mayo. Their organization has consistently outperformed its exhibition industry peers by averaging approximately 5% of quarterly box office receipts from alternative content, boosting capacity utilization during less busy Monday through Thursday periods.”

Bud Mayo commented, “I am very excited about the many opportunities that lie ahead as we join forces with a ‘best-in-class’ exhibitor with a national footprint. Carmike’s senior executive group, led by David, has guided the Company through an impressive multi-year transformation and our alternative programming team looks forward to helping the organization build on its recent success and achieve additional growth.”

Mr. Passman continued, “We are delighted to welcome Digiplex’s executives and theatre-level associates to the Carmike family and look forward to their contributions. In the interim, we will also continue with our plans to actively pursue additional movie theatre acquisition opportunities that we expect will generate attractive levels of theatre level cash flow and drive shareholder value.”

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