COLUMBUS, Ga. -- Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema and 3D motion picture exhibitor, today announced the modification of a long-term, exclusive exhibition agreement with Screenvision, a leading innovator in cinema advertising. The modified agreement extends Carmike's existing relationship with Screenvision for a 30-year term. In addition to its regular periodic payments throughout the term of the agreement, Carmike will receive a cash payment of $30 million in January, 2011. Carmike will also receive an approximately 20% ownership interest in the growth of Screenvision.
"We have been a business partner of Screenvision for over twenty years and we plan to be a partner for many more," said David Passman, President & Chief Executive Officer of Carmike. "Adding an ownership interest to our already excellent business relationship is an exciting opportunity for Carmike's shareholders to benefit in the growth of Screenvision. In addition, although still in its early stages, we expect alternative content to play an increasingly important role in further enhancing capacity utilization of entertainment complexes, and with its growing digital footprint and extensive distribution network, we believe Screenvision continues to be the right partner for Carmike."
"Carmike is a technological innovator in the exhibition industry and our partnership has only become stronger with this agreement," said Darryl Schaffer, Executive Vice President - Exhibitor Relations at Screenvision.
The extended exhibition agreement is effective upon closing of Carmike's acquisition of the ownership interest in Screenvision, which is expected to be in October 2010.