Film-Tech Forum ARCHIVE: Martin / Carmike History Question

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Posted by Michael Coate (Member # 757) on 10-06-2005, 10:40 PM:

Anyone familiar with the history of Martin and Carmike Theatres? Did these companies merge? If so, when did this occur?

I found one account on the Web claiming a 1982 merge, but I have some newspaper ads for several theatres during 1984 under the Martin name.

Anyway, I have a question about a place called the Astro Twin in Greenville, South Carolina. Anyone familiar? I'm trying to determine which company operated the theatre in 1984.

[I asked this on another site but have not been able to get an answer.]

Posted by Tim Reed (Member # 137) on 10-07-2005, 12:39 AM:

Mike and Carl Patrick were executives with Martin. They either bought or otherwise gained control of the corporation, renaming it Carmike (for Carl and Mike... get it?) in the early 80s. One is the father; the other, a son.

Sorry I can't be more specific, but this is the info I kept hearing when I serviced them in the early 90s. Let me try to contact a source, if his email is still good. If so, I'll post back with the scoop.

Posted by Dustin Mitchell (Member # 372) on 10-07-2005, 02:08 AM:

From the Carmike webiste
Only the first paragraph really has anything to do with what you wanted, but I couldn't help but post all of it. Its just so inspirational.

quote:
Corporate History

Carmike Cinemas, Inc., evolved when Carl L. Patrick, Sr. and his son, Michael W. Patrick, acquired Martin Theatres from Fuqua Industries in a 1982 LBO. Headquartered in Columbus, Georgia, Michael W. Patrick is President, Chief Executive Officer and Chairman of the Board of Directors.

The dedication and determination exhibited by Michael W. Patrick is evident in Carmike Cinemas' status as a premiere motion picture exhibitor in the industry. As of May 31, 2005, Carmike operates 2,450 screens, 311 theatres in 37 states. Carmike Cinemas growth was through acquisitions in the 1980's and early 1990's. Stadium seating was introduced to the industry in the mid 1990's and as a result Carmike began constructing theatres to include stadium seating and digital sound

Carmike Cinemas targets small to mid-sized communities with populations ranging from 50,000 to 250,000. Our mission is to focus on small to mid-sized communities and to be the sole or premiere exhibitor in those niche markets. Capital expenditures for Carmike Cinemas are viewed as investments for the long-term. For example, in Cullman, AL a new complex was built that has allowed us to continue in a marketplace where we have experienced years of success. Our newest theatre design is referred to as the "Carmike-plex", which is 100% stadium seating and 100% digital sound, and can be found in towns such as Dyersburg, TN. The "Carmike-plex" is intended for markets with a population of 50,000 to 100,000 and the advantage is that other circuits are not targeting these markets because it would be impossible to put a megaplex in a town this size. Eighty percent (80%) of our theatres are in markets with fewer than 100,000 people.

I.Q. 2000 and I.Q. Zero are the information technology systems responsible for much of our success. Designed and built by Carmike, I.Q. 2000 and I.Q. Zero capture all point of sale information relating to ticket and concession sales and processes payroll information. The cost effective information systems allow the home office to manage day to day operations, allowing theatre managers more time to manage since less time is spent preparing numbers for the home office in Columbus, Georgia. Carmike Cinemas' operating expenses are the lowest in the industry due to I.Q. 2000 and I.Q. Zero, which instantly transmit all information to the Corporate headquarters where executive management coordinates the administrative functions, maximizes efficiency, and control costs.

From August 8, 2000 to January 31, 2002, Carmike operated its business and managed its properties under the protection of the reorganization provisions of chapter 11 of title 11 of the U.S. Code (the "Bankruptcy Code"). On August 8, 2000,Carmike and its subsidiaries Eastwynn Theatres, Inc., Wooden Nickel Pub, Inc. and Military Services, Inc. filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. On January 4, 2002, the United States Bankruptcy Court for the District of Delaware entered an order confirming the Debtors' Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code, dated as of November 14, 2001 (the "Plan"). The Plan became effective on January 31, 2002 and, on the Effective Date, Carmike filed with the Secretary of State for the State of Delaware the Amended and Restated Certificate of Incorporation. During the reorganization process, the Company closed unprofitable theatres, renegotiated rents, realigned its capital structure and identified its core group of theatres that would be the nucleus of the Company's operations and growth for the future.

Carmike Cinemas' Common Stock, effective upon the commencement of trading on Thursday, May 23, 2002, trades on The Nasdaq National Market under the ticker symbol "CKEC". Previously, the Common Stock traded on the over-the-counter Bulletin Board.

Carmike Cinemas, Inc. has enjoyed continued success and growth in the 20th century and looks forward to the prospects the 21st century has to offer. Carmike Cinemas is proud to bring America's "hometowns" today and tomorrows movies.

Posted by Tim Reed (Member # 137) on 10-07-2005, 02:15 AM:

Okay, I just heard back from my contact. Nothing to add from what Dustin posted.

Posted by Dustin Mitchell (Member # 372) on 10-07-2005, 03:38 AM:

It occured to me also that if you are interested in the actual mechanics of the Martin takeover there's gotta be a ton of SEC filings dating from 82 on the matter.

Posted by Bill Gabel (Member # 1105) on 10-07-2005, 09:04 AM:

The Astro Twin Theatre was operated by Martin in 1981.

Posted by Michael Coate (Member # 757) on 10-07-2005, 12:26 PM:

Thanks for contributing, Bill, but your reply doesn't answer my question. I'm asking about 1984!!!

Posted by John McConnel (Member # 2000) on 10-07-2005, 01:36 PM:

Michael,
Martin and Carmike were essentially the same company. As stated in a previous post, Carl and Mike Patrick bought Martin Theatres from Fuqua Industries in a leveraged buyout (LBO), and subsequently changed the name to Carmike Cinemas.
So in 1984, regardless of the name the company was using at the time, it would have been the same business entity that operated the theatre you asked about.
On another topic, Mike Patrick was considered somewhat of an arrogant executive in the 1980s, which could have contributed to the company's eventual comeuppance, and filing for bankruptcy protection, in 2000.

Posted by Adam Martin (Member # 641) on 10-07-2005, 08:20 PM:

Not to detract from Mike's question, but how does Eastwyn Theatres figure into the Carmike picture?

Posted by Dustin Mitchell (Member # 372) on 10-07-2005, 11:48 PM:

Eastwynn, Westwynn, and now GKC theatres are wholey owned subsidiaries of Carmike Cinemas. The management structure is completely integrated but legally speaking they are seperate entities. I'm no financial expert but I believe it is for tax/liability purposes.

Posted by Michael Coate (Member # 757) on 10-17-2005, 06:15 PM:

quote: John McConnel
So in 1984, regardless of the name the company was using at the time, it would have been the same business entity that operated the theatre you asked about.

Understood, except the exact name being used is the info I am seeking. If they bought the company in '82 and didn't immediately change the Martin name to Carmike on their buildings and in newspaper ads, then I'm inclined to go with Martin.

By the way, there's a reference to a 1985 name change on film-tech member Evans Criswell's website. Is there any chance that the 1982 date referenced was a typo of 1985? After all, on a typical keyboard, a 5 is right above 2. (Likewise, Evans' date could be the one with the typo.)

Thoughts, anyone?

[ 10-17-2005, 09:51 PM: Message edited by: Michael Coate ]

Posted by John McConnel (Member # 2000) on 10-17-2005, 08:20 PM:

QUOTE: Michael Coate
"Understood, except the exact name being used is the info I am seeking. If they bought the company in '82 and didn't immediately change the Martin name to Carmike on their buildings and in newspaper ads, then I'm inclined to go with Martin."

The name wasn't immediately changed from Martin to Carmike, although without doing some research, I couldn't tell you when the name change occurred.

As to the 1982 date for Carl and Mike Patrick's takeover of Martin, that year is close, if not correct.

Posted by Dustin Mitchell (Member # 372) on 10-17-2005, 08:24 PM:

I believe Martin was re-organized into 'Carmike' in 1984, at least that's the number I've heard kicked around.

Sign changes sometimes take time. I remember a theatre we closed in 2000 that still had an 'Excellence Theaters' awning over the door (though the marquee said Carmike).

Posted by Michael Coate (Member # 757) on 10-17-2005, 09:56 PM:

Thanks for the input.

I have some spring '84 newspaper ads from Nashville area theaters and they display what I think is a Martin logo, but I'm not certain. Does anyone recall the Martin logo? Was it a kinda curvy "M" with a "T" above it?

Posted by Jon Miller (Member # 163) on 10-17-2005, 10:36 PM:

Here you go, Michael...

Posted by Michael Coate (Member # 757) on 10-18-2005, 01:17 AM:

quote: Jon Miller
Here you go, Michael... + IMAGE

That's it! That's the logo that appears in the 1984 ads I mentioned.

So now what? If Carmike was formed in '82, why was the Martin logo still being used in '84?

Posted by Dustin Mitchell (Member # 372) on 10-18-2005, 02:30 AM:

I think perhaps the Patricks bought Martin in 82 and re-organized it into Carmike in 84. Or perhaps they did form Carmike in 84 but whatever reason ran Martin as a seperate corporation until 84?

I'm not sure how much luck you'll have but you could try calling/emailing Carmike's Public Relations person, Judy Russel. Her contact info should be on the website.

Posted by John McConnel (Member # 2000) on 10-18-2005, 02:39 PM:

Carmike wasn't formed in '82. But 1982 is when Carl and Mike Patrick bought Martin theatres from Fuqua Industries.
Rather than re-organizing into Carmike in 1984, it's possible that the Patricks just re-named the existing corporation. However, they may have formed a new umbrella corporation. The technicalities of how the business was put together would be an interesting study.
As they acquired theatres around the country, in some cases Martin/Carmike bought the shares of stock in existing corporations that owned the theatres, which of course gave them control, and they then billed them as Martin Theatres, or later, Carmike Cinemas. But if you checked at the courthouse, the ownership of the property would still be in the name of the corporation that Martin or Carmike bought the stock in.
Regardless of how title was held at the courthouse, or at the Secretary of State, the theatres were considered as Martin, or Carmike, theatres.
Martin, and Carmike, did have some situations where they had partners. But those are about all gone.