This is topic Carmike files Chapter 11 in forum Ground Level at Film-Tech Forum ARCHIVE.
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Posted by Dustin Mitchell (Member # 372) on 08-08-2000, 10:46 PM:
That's right, Carmike Cinemas Incorporated, third largest theatre company in the US by number of screens, first by numbers of locations, has filed chapter 11 bankruptcy. On the very same day, Regal announced a 29 million dollar lose for the second quarter. What is going on here?!
Posted by John Scott (Member # 520) on 08-09-2000, 12:45 AM:
Well it looks like Regal and AMC may soon be following in chapter 11 as well, not to mention United Artists.
Here's an article I found about it all:
EXHIBITOR CARMIKE FILES FOR CHAPTER 11
State of the industry caused financial woes, others may follow
By JILL GOLDSMITH
Things took a nasty turn in the beleaguered movie theater biz Tuesday as
Carmike Cinemas, the nation's fourth-largest exhibitor, filed for Chapter 11
and the biggest chain in the country, Regal Cinemas, hinted that it might not
be
far behind.
"Things are bad in the sector, but they're about to get worse," said analyst
Daniel O'Neill of Credit Suisse First Boston. "You can't keep pouring capex
into a no-growth business," he added. He means the capital expenditure on
new theaters that has lifted the nation's screen count to untenable levels.
Atlanta-based Carmike still has some cash on hand but said senior lenders
blocked it from making an interest payment since it violated loan covenants
that require it to maintain certain financial ratios. That generally refers to
a
debt-to-equity ratio -- which has been leaning heavily towards the debt side at
Carmike and most of its competitors for the past several years.
Carmike opted for Chapter 11 after careful consideration "of our current
circumstances and the state of our industry," company chairman Michael
Patrick said. "Our focus is on preserving our assets and improving our
operational strength during this difficult period."
United Artists, generally considered to be in the worst shape of the bunch, is
currently hashing out new arrangements with its senior lenders. And Regal said
it hopes to do the same by end the of the third quarter. AMC Entertainment is
hurting as well, as is Cinemark and, to a lesser extent, Loews Cineplex.
The group is staggering under an enormous debt load from building expensive
new multiplexes across the country, even as attendance in the theaters is flat,
and in some cases, down. June was dismal, and competition from the
Olympics in September will kill fourth-quarter comparisons as well.
And the new locations are cannibalizing the old ones, which are being closed
down much too slowly.
There are about 37,000 screens in the U.S., and most agree, including the
exhibitors themselves, that the number needs to fall to 25,000 for the industry
to breathe easy again. Exhibs have slowed down their building, but have not
stopped it. The screen count was up 9% last year and will be up an estimated
4%-6% this year, as exhibs apparently keep spotting markets that are
screaming for a new multiplex.
It's an example of how "individually rational decisions led to collectively
irrational behavior," O'Neill said.
Wall Street is looking for more cases of Chapter 11. And, paradoxically, the
worse things get, the faster they may improve, as financial ills force
consolidation and push exhibs to shutter underperforming theaters faster.
Mergers in the industry are still a possibility, except none of the players has
spare cash for deals, and their stocks and bonds are all way down. Carmike
shares closed at $1.94 Tuesday. They were trading at close to $15 a year
ago.
Posted by Charles Lubner (Member # 157) on 08-09-2000, 12:50 AM:
Welcome, John! Nice to see another face from Marcus here! I agree, i think many theatre companies will fold or merge later this year. In the next 3 years only 5 or so big chains will be around, with the rest independents. A lot of multiplexes are going to be bulldozed and turned into strip malls.
Posted by Dustin Mitchell (Member # 372) on 08-09-2000, 02:45 AM:
Well, we are third largest, not fourth-at least for the time being. And Carmike is based out of Colombus, not Atlanta. But other than that, the article seems pretty accurate.
Posted by Andrew D'Vrey (Member # 285) on 08-09-2000, 11:05 AM:
Thank God I work for General Cinema. From the rumor mill, we're not doing much better, but GCC Capitol seems to be doing an adequate job of keeping us afloat. With Regal doing so bad, adding 36 screens to the Twin Cities market might not be their smartest move. Carmike just built a 20 screen in a nearby city that already has a 20 screen complex and I believe two other smaller theaters. WHY? WHY? WHY? I ask.
But I for one am happy. We need to get rid of some major chains to lower the overpopulation. Time to play survival of the fittest.
Posted by Kevin Crawford (Member # 469) on 08-10-2000, 01:31 AM:
Actually, GCC is doing much better than the industry avg. According to their SEC filings they only lost 1.5 mil in the first 6 months of the fiscal year. This was offset by 11.7 mil income from investments. But they closed 7 locations with a total of 32 screens, and sold 2 locations with a total of 10 screens. Not bad considering the competition. It may not be long until they get into the top 3. They could pick and choose some of the best theatres in the country.However, it must be remembered that it has not been the same company since they hired Frank Stry-something from AMC. It seems that they have become very similar to AMC in the way they do business. This quite frankly, no pun intended, scares me.
I am glad to see Neil Stolberg in charge of operations. When he was out west, he did an excellent job. I like the company and hope they do well.
However, the AMC ways of caring less and less about presentation makes me wonder if GCC won't follow their path.
Posted by Andrew D'Vrey (Member # 285) on 08-10-2000, 01:10 PM:
Well, I meant doing just as well at trying to turn a profit with the theaters alone. But yes, our investments are carrying us.GCC has made pleanty of cutbacks as you've mentioned. But I think GCC closed most of their worst houses early and stopped building in the nick of time, while other's (mainly all other's listed in the above article) are still building.
Other cutbacks include cutting down on Union hours in the booth. This is why I am no longer an IATSE local and took on a Management job with GCC. All our locations got cut to 40hrs or less for the union. Which I guess is a smart move on their part (besides my complaint of losing %5/hr) because if Carmike and Regal can't make it paying thier Manager/Operators $7-8.00/hr, I know I made over twice that as a Union operator.
Granted I'd like to see us dump a load of capex dollars into getting rid of our antiquated Rank automation system, but I for one am understanding of any decisions to hold back on spending at this time.
Posted by Kevin Crawford (Member # 469) on 08-12-2000, 12:22 PM:
Management? Ouch. Sorry to hear that. When they dropped us from full time to 40 I was out of work. The manager did offer me a job as a manager. But, I had already been a manager before. That was why I went into the union. I did not like the headaches.Now it is 25 a week, so I prostitute myself doing sound service.
Posted by Mike Spaeth (Member # 524) on 08-14-2000, 11:17 PM:
Is Warner Brothers pulling their product out of all Carmike theaters? They are here in Mankato - not that I'm complaining - My 8-screen (Cinemark) has to split product w/ 2 4-screen Carmikes. They pulled Pokemon 2000 and Perfect Storm this week, forcing Carmike to interlock Godzilla 2000 - lol. I'll be laughing all weekend - esp since Perfect Storm is moving over to my theater, as well as picking up Art of War next week (originally allocated to Carmike) - I also hear that they have $7 million in unpaid film rental to Dreamworks (which would explain why they haven't played a single Dreamworks film this year).
Posted by Dustin Mitchell (Member # 372) on 08-14-2000, 11:37 PM:
Hmm, in my neck of the woods we've been playing Dreamworks-Road Trip and What Lies Beneath-and we still have our prints of Pokemon 2000 and Perfect Storm. This may hae something to do with the fact that the only other theatre, a 6 screen independent, doesn't have enough screens to pick up all of this.
Posted by Mike Spaeth (Member # 524) on 08-15-2000, 12:09 AM:
sounds like it may be a market-by-market thing. They aren't pulling until Thursday, though.
Posted by Dustin Mitchell (Member # 372) on 08-15-2000, 10:21 AM:
I take that back, they pulled our print of Perfect Strom this week 
.
Posted by Glenda Cockrum (Member # 542) on 08-15-2000, 04:53 PM:
Well , besides my small one screen and two drive-ins, Carmike has the only theaters in this county, a 7 screen in Monaca and a (6?) in Beaver Falls. I started with Carmike and still have friends there, (despite the rather one sided competition 
), I'll hate to see some of these people out of work, there's three union projectionists, and not many chains will hire union these days since PA's laws have changed.
That said however it would be a blessing if some used equipment that I know how to operate becomes available on the market! 
Glenda Cockrum or as my younger customers call me "that movie lady!"
Posted by Scott Madsen (Member # 167) on 01-08-2002, 07:53 PM:
Carmike Cinemas Inc. is expected to emerge from Chapter 11 U.S. bankruptcy reorganization within two weeks.The company announced late Thursday that a federal bankruptcy court in Delaware approved its amended Chapter 11 reorganization plan, which will become effective the middle of this month.
The national movie theater chain, which is based in Columbus but incorporated in Delaware, has been in bankruptcy court since Aug. 8, 2000.
Chief Financial Officer Martin Durant in Columbus said in a prepared statement the company has improved its operating position during the 17-month Chapter 11 process.
"The company was able to terminate leases and close more than 130 unprofitable theatres, as well as reduce costs, streamline management responsibilities and restructure rents on other theatres to improve the profitability of such theatres," Durant said. "As a result, the company operates on a more efficient, effective basis and constitutes a more attractive, viable theatre circuit."
Columbus Ledger-Journal Jan 5/2002
Posted by Darryl Spicer (Member # 711) on 01-08-2002, 11:05 PM:
Does that mean that they will make there showtimes so that half there movies do not start at the same time. Here is a ten screen show schedule for them1:00
1:00
1:00
1:00
1:05
1:05
1:10
1:10
1:10
1:15
No wonder they have lines of pissed of people half way down the middle of the parking lot...
Posted by Mike Spaeth (Member # 524) on 01-09-2002, 03:43 AM:
Lines???At a Carmike????
What planet do you live on, Darryl ... I've never seen any large quantity of people at the Carmikes I've run across.
Posted by Evans A Criswell (Member # 381) on 01-09-2002, 09:55 AM:
The Carmike 10 here in Huntsville is usually always very busy, since it's the best theatre in town. Usually, their showtimes are staggered enough to keep line lengths down. If I notice a bunch of shows starting at the same time in the future, causing much longer lines, I'll definitely take note of it. It will be interesting to see Friday's showtimes to see if they go to that sort of schedule.
------------------
Evans A Criswell
Huntsville-Decatur Movie Theatre Information Site
Posted by Dustin Mitchell (Member # 372) on 01-09-2002, 01:21 PM:
Its called 'mandatory showtimes' and just about every movie has a set from the home office. For example, this Christmas I got to pick the showtimes for one movie-How High. Everything else had mandatory times. Due to the varying lengths these were actually staggered pretty well, I think their improving here.As far as that ten screen with all those showtimes the same, bad management at the theatre or district level, or both. No excuse for that, if I have more than two big movie starting at once our DM calls us and says "Change it." If the above situation results from mandatory showtimes, I call him and ask, "Can I change it?" To which the answer is usually yes.
Posted by Heyward Garner (Member # 722) on 01-19-2002, 02:53 AM:
Mike, if you've never seen a long line at a Carmike... You haven't been to ours, buddy... And damn Dustin, I wish we had your DM. It isn't near that easy for us, Sir.
Posted by Heyward Garner (Member # 722) on 01-19-2002, 02:56 AM:
Evans, like Dustin said... (sort of...) You could see them go to that sort of schedule, you might not. I would like to note that we have tried to stagger our shows as best as possible, however it was a bit of a journey to get to this point. We (being local management) try to stagger showtimes, etc only to be denied by our DM. Once the DM recieves enough complaints, he gets this "great idea" to stagger our showtimes... That's how it works.
Posted by Ryan Powers (Member # 1059) on 01-21-2002, 11:46 PM:
Heyward Garner is not kidding about the lines outside Carmike theaters in Winston Salem. The Wynnsong 12 is ridiculous on the weekends! It's not unusual to see 300 people standing in line to buy tickets here on any given Friday or Saturday. In most cases if you didn't buy your tickets hours in advance the movie will be sold out. I once went to the Wynnsong theater and saw massive line that wraped around the theater, and this was when it was raining. I didn't even bother getting out of the car. Why is it so crowded? Maybe it has something to do with a population of 200,000+ people and only 27 screens from three theaters, and only 12 of those screens are stadium seating! It's terrible, Winston Salem needs a nice new theater like no tomorrow.
Posted by Brian Potts (Member # 429) on 01-22-2002, 12:01 AM:
Ryan, we just closed 3 theatres in Winston-Salem that weren't doing any business. And besides, the Wynnsong 12 is only 4 years old. I personally think that we have enough screens to meet the demand. Why do we need another theatre?
Posted by Ryan Powers (Member # 1059) on 01-22-2002, 12:52 AM:
The theaters that closed were horrible, and two of them were very close to the crowded Wynnsong 12 cinema I talked about earlier. There was no chance for them to compete once the Wynnsong converted to stadium seating. There is a obvious void in available screens now that they are gone. To give you a perspective of what I am talking about, I have lived in Winston Salem, Raleigh, and now Charlotte. Granted Raleigh and Charlotte are much bigger then Winston Salem, but in Raleigh There was 82 screens with in a 20 minute drive from my house. In Charlotte there is 109 screens with in a 20 minute drive. Winston Salem has 27, Concord, NC has more screens available with 35 and it's only a percentage of the population. I just think the Carmike 10 needs to be renovated and expanded, or perhaps a new theater for Clemmons/Lewisville area to relieve some of the traffic over at Wynnsong.
Posted by Mike Spaeth (Member # 524) on 01-22-2002, 01:50 AM:
Ryan - busy theatres are what we WANT! Just because one area is over-screened doesn't mean that we should over-screen every area! Empty seats are bad for business. The building spree is why everyone is BANKRUPT. Hopefully, no one else decides to build in Winston-Salem so that the remaining theatres stay profitable.
Posted by Brian Potts (Member # 429) on 01-22-2002, 09:12 AM:
I have thought for years now that Charlotte was way over screened. The Wynnsong does very good business. The Carmike 10 does very good business for the most part. If they converted it to stadium seating, I believe it would take quite a bit of pressure off the Wynnsong.
Posted by Ryan Powers (Member # 1059) on 01-22-2002, 11:55 AM:
I am glad the Winston Salem theaters are doing well, but as a customer it becoming a mission just to see a new release at the Wynnsong especially. People shouldn't have to arrive an hour before show times to wait in line for seats. You often can't distinguish between the line for tearing tickets and the lines for concessions. It's just a mob of people standing. If you want concession products the best way to do it is if one person stands in the line for the tickets to be torn and the other person stands in the line for concessions. In most cases it's better just to avoid the concessions all together so your not left on the front row or separated from your group. Carmike 10 is less of a journey, and if I am in Winston for a weekend visiting my parents, we usually try to go here if the film is offered because it is less of a hassle.Crowds aren't the only reason, I think Winston Salem needs a new theater. It could be another reason, but I think it's because a lack of screens. In some cases, new releases come late, or don't come at all. For example, I saw "The Royal Tenenbaums" three weeks ago in Charlotte, although it was just released in Winston Salem this past Friday.
I could be wrong, maybe Winston Salem doesn't need another theater, but when Blockbuster video sounds like a better idea coming from a movie buff, something isn't right.
P.S. Charlotte does indeed have a lot of screens. I tend to mix the locations I go to around, and I do have to say they are typically pretty full every time I go, even on late showings on week days. The only negative thing I can find is that out of all the theaters in Charlotte, which is about 150 screens if you count the outskirts of the city, not one of them offers a THX certified auditorium. That was disappointing when I moved here and figured that out.
Posted by David Stambaugh (Member # 1102) on 01-22-2002, 01:40 PM:
When Cinemark 17 opened here, it triggered the closure of 3 aging Regal locations: West 11th Movieland 6, Springfield Quad, and the 1-screen McDonald. Regal tried running Springfield Quad as a dollar theater for a while, but Cinemark's Movies 12 has a lock on that too. The one remaining serious competitor to Cinemark 17, Regal Cinema World 8, seemed to be "decimated" for the first 18 months or so after the 17 opened -- not sure how they hung on. But their business seems to be improving some lately (might just be holiday blockbuster spillover though).
------------------
- dave
Crab juice, or Mountain Dew?
Posted by Richard Fowler (Member # 893) on 01-22-2002, 04:33 PM:
Carmike is basically out of bankruptcy and are planning to build some new screens....their stock is up to $3.50 from 30 cents in the last two months.
Richard Fowler
TVP-Theatre & Video Products Inc. www.tvpmiami.com
Posted by Dustin Mitchell (Member # 372) on 01-22-2002, 04:45 PM:
Winston-Salem showtimes:
Wynnsong 12:
Seven movies at 1:00, five at 7:00, and four at 9:45. Boy, I'd like to see their per caps :rollseyes:.Carmike 10
Five movies at 1:00, three movies at 7:00, and four at 9:45. Not as bad but still a tad congested.
The worst thing about the above two examples is that they are only using the mandatory showtimes for Black Hawk Down, the others have been changed from the original showtimes.
Posted by Mike Spaeth (Member # 524) on 01-23-2002, 11:59 AM:
Thank you Dustin!Ryan - this show schedule here proves my point. If you have half your movies starting at one time ... of course you're going to have HUGE crowds and lines ... ALL THE CUSTOMERS ARE SHOWING UP AT THE SAME TIME! Hence, the problem is not too busy of a theatre, but rather ... a really pooor show schedule. I'm only going to critique the 7:00 round here.
7:00 Count of Monte Cristo/A Beautiful Mind/Black Hawk Down/Vanilla Sky/I Am Sam
7:15 Kate & Leopold/Mothman Prophecies
7:20 Orange County
7:30 Kung Pow/Snow Dogs
7:45 A Walk To Remember
8:00 Lord Of The Rings
At 7:00 you have 2 new releases (Count of Monte Cristo/I Am Sam) plus 2 of the busiest movies in release (Beautiful Mind/Black Hawk Down).
Why is there nothing starting at 7:05/7:10/7:25/7:35/7:40/7:50/7:55? It's amazing how much of a difference 5 minutes can make in a show schedule. Personally, I don't think there's any reason for 2 shows to start at the same time in a 12 ... I've never had to do it in my 10.
Posted by Charles Everett (Member # 889) on 01-23-2002, 01:11 PM:
Mike S: To keep this particular thread from drifting I've bumped back up your old thread on "Ridiculous customer/show scheduling". Care to copy your latest post there?
Posted by Dustin Mitchell (Member # 372) on 01-23-2002, 01:17 PM:
That's a pretty bold statement there Mike, never having to start two movies at the same time. I've been pretty critical with the other theatres here, but lets do some self examination of my theatres showtimes. I'd just like to say that one must consider the fact that we have someone new doing the showtimes, so he isn't quite "up to speed" yet.
Oakwood 12 Showtimes
Analyzing the 7's again we have:
7:00 In the Bedroom/Oceans 11/Vanilla Sky/A Beautiful Mind
7:05 I Am Sam
7:10 Gossford Park/Mothman Prophecies/A Walk To Remember
7:15 Kung Pow
7:45 Snow Dogs
8:00 Pool Party Massacare (don't ask)
Ok, so those showtimes have room for criticism. The 7 slot is definately a little crowded, along with 7:10. One could easily spread everything out between 7 and 8. In fact, if running a ten plex you never had two movies starting at once like you claim, then you'd always have a 7:00, 7:05, 7:10, 7:15, 7:20, 7:25, 7:30, 7:35, 7:45, and 7:50 shows. Fine and dandy, but what happens to your nine round then? Looking at our current schedule, there are 4 movies that are 2 1/2 hours or more, and one that is 2 hours 20 minutes. Using your above show scheduling method, the 7:15 slot would be filled with a 2 1/2 hour long movie that would then get out at 9:45. Fifteen minutes mininum intermission puts you at a 10:00pm start time. Hell, even a relatively short hour and forty minute movie put in the 7:50 slot will get out at 9:30, putting its start time at 9:45. And what happens in those rare instances when all your movies are 2 hours plus? I'm sure the answer here is equally simple, just start everything past ten. We could do that, if we wanted to completely destroy our late show business. No one like late movies here, no one. I remember when we had Perfect Storm it would sell out easily for the 9:30 show, but when the 10:30 rolled around there would be 15 people in there max. The 'no shows past 10' rule we have here has proven itself in many more cases than just that one.Sorry I kinda went off there, but it just really peeves me when people assume that because doing something a certain way at one theatre works for them, it will automaticaly work in all other markets.
Posted by John Pytlak (Member # 331) on 01-23-2002, 02:08 PM:
I've heard that many European multiplex theatres try to keep showtimes simple and easy to remember, starting on the hour or half hour only, or on the quarter hour at most. Here's a selection of Kinopolis sites and start times:
http://www.kinopolis.de/godesberg/spielplan/index.html
http://www.citydome.de/sinsheim/index.html
http://www.citydome.de/rosenheim/index.html
http://www.citydome.de/darmstadt/index.html
http://www.kinopolis-leverkusen.de/Programm/programm.htm ------------------
John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Research Labs, Building 69, Room 7525A
Rochester, New York, 14650-1922 USA
Tel: 716-477-5325 Cell: 716-781-4036 Fax: 716-722-7243
E-Mail: john.pytlak@kodak.com
Web site: http://www.kodak.com/go/motion
Posted by Mike Spaeth (Member # 524) on 01-23-2002, 07:33 PM:
Maybe it's just a difference in operating styles ... my last show of the night is never before 10:15 ... right now it's 10:40. I hadn't thought about the 10's being affected by the later 7's. I also will use a 6:50 or 6:55 if necessary.BTW - What is Pool Party Massacre?
Also - FYI - here is my schedule for next week
Black Knight - 755/1015
Bones - 740/1005
Domestic Disturbanc - 715/935
Extreme Days - 700
Training Day - 920
Life As A House - 705/1000
Max Keeble's Big Move - 720/950
Out Cold - 820/1035
Shallow Hal - 800/1040
Spy Game - 730/1025
The One - 735/940
Posted by Dustin Mitchell (Member # 372) on 01-23-2002, 07:43 PM:
Ahh. I can understand doing that in certain markets, but around here that would never go over.And I told you not to ask about Pool Party Massacare
Ok, its a slasher flick. Supposed to be one of those good midnight shows. Not delivering though, I can't believe were running it for a second week.
Posted by Darryl Spicer (Member # 711) on 01-23-2002, 11:17 PM:
Pool party Massacre... now how did that slip by straight to video? here is our schedule for this weekend evenings.
Black Hawk Down 6:45, 9:50
Oceans 11 6:50, 9:30
Kate & Leopold 6:55, 9:35
Beautiful Minds 7:00, 9:55
Count of Monte C 7:05, 10:00
Royal Tenenbaums 7:20, 9:45
Walk to Remember 7:25, 9:40
Harry Potter 7:40
Lord of the Rings 8:00, 9:00 two screens
Posted by Mike Spaeth (Member # 524) on 01-24-2002, 01:43 AM:
Darryl - Can you email me? I've got a question I need to ask you, and you don't have an email address listed ...