Carmike Cinemas Inc. (CKEC) knows the value of smaller when it comes to making bigger profits. Their focus, as a motion picture exhibitor in the United States, is to place their state-of-the-art theatres in smaller communities. They are taking hold of a niche market that the megaplex-type theatre chains are not.
Carmike Cinemas trades on the NASDAQ exchange as part of the Movie Production-Theatres business sector. With headquarters in Columbus, Georgia, they are one of the largest movie exhibitors in America. Carmike has 291 theatres with 2,450 screens across 37 states. Their statistics show that over 80% of their theatres reside in communities of 100,000 people or less.
Carmike began in 1982 with Carl L. Patrick, Sr. and his son Michael W. Patrick, who bought Martin Theatres from Fuqua Industries. Today, Michael is the President, Chief Executive Officer, and Chairman of the Board of Directors for Carmike Cinemas, Inc.
Their newest theatre design is one they call the “econoplex”. This theatre style consists of 100% stadium seating and 100% digital sound. They also have their “Carmike-plex”. These theatres are suited to markets with populations of 50,000 to 100,000 people.
Carmike operates with efficiency because of their I.Q. 2000 and I.Q. Zero information technology systems. Designed and built by Carmike, these systems register and transmit all of the information from each individual theatre. This includes ticket and concession sales, and all payroll data for Carmike’s employees. These systems allow Carmike to keep their operating expenses low; in fact, they are the lowest in their industry sector.
The company continues to reward shareholders. On March 17, 2008, they announced a quarterly cash dividend of $0.175 per share. Carmike remains committed to targeting small and mid-size markets for their theatre locations to increase shareholder value.
They are going where the mega-chains do not want to play. Carmike knows their place to be is in the smaller cities and towns that want quality theatres for viewing entertainment. With their focus on this niche market, Carmike is expected by many to continue walking the red carpet, with their shareholders, to future financial rewards.
Let us hear your thoughts below: