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By Daniel Garris

Open Road's Nightcrawler moved into first place on Monday with $0.951 million. After three consecutive second place performances; yesterday represented the first time that Nightcrawler has led the daily box office. The critically acclaimed crime thriller starring Jake Gyllenhaal was down 63 percent from Sunday, which was one of the day's stronger daily holds among wide reelases. Nightcrawler has grossed $11.39 million in four days. That is in line with expectations and places the film 21 percent behind the $14.42 million four-day start of Open Road's End of Watch back in September of 2012.

Sony's Fury placed in a close second with $0.835 million. The David Ayer directed World War II film starring Brad Pitt continues to display very solid holding power this week, as it was down 67 percent from Sunday and down just 30 percent from last Monday. Fury has grossed $60.99 million in 18 days. That is towards the lower end of expectations and is 4 percent stronger than the $58.47 million 18-day take of Sony's The Monuments Men earlier this year.

John Wick claimed third place with $0.7674 million. The Keanu Reeves led action thriller from Lionsgate fell 67 percent from Sunday and 41 percent from last Monday. John Wick continues to perform on the high end of expectations with $28.30 million in eleven days. That leaves the film just $10.06 million away from the $38.36 million final gross of last year's 47 Ronin.

Ouija followed very closely behind in fourth with $0.7667 million. The low-budget PG-13 horror film from Universal and Platinum Dunes trailed John Wick by an extremely slim $751 for the day, as the two films were essentially tied. Ouija was down 67 percent from Sunday and down a very healthy 27 percent from last Monday. With $35.57 million in eleven days, Ouija continues to run in line with expectations and has now surpassed the $35.27 million final gross of last year's Carrie.

Fox's Gone Girl rounded out Monday's top five with $0.696 million. The critically acclaimed David Fincher directed film starring Ben Affleck fell 68 percent from Sunday and a slim 21 percent from last Monday. Gone Girl has grossed a very impressive $136.98 million in 32 days, which leaves the film $13.02 million away from reaching the $150 million domestic mark.

The Weinstein Company's St. Vincent took sixth place for the day with $0.568 million. The low-budget comedy starring Bill Murray and Melissa McCarthy was down 69 percent from Sunday and down only 9 percent from last Monday. With $19.57 million to date and very strong holding power thus far, St. Vincent appears to be turning into a word of mouth hit.

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carmikecinemas.pngAdmissions, Concessions and Other Revenues Hold Steady amid Industry-Wide Box Office Headwinds

Carmike Cinemas, Inc. (NASDAQ:CKEC), a leading entertainment, digital cinema and 3-D motion picture exhibitor, today reported results for the three and nine-month periods ended September 30, 2014, as summarized below.

"Aided by the impact of recent acquisitions, Carmike's 2014 third quarter admissions receipts outperformed the U.S. exhibition industry by 1,000 basis points," stated David Passman, Carmike Cinemas' President and Chief Executive Officer. "On a per screen basis, Carmike's admissions revenue decrease of approximately 13% was in-line with the reported industry box office decline of 13%. Despite lower attendance, Carmike's Q3 concessions and other revenue rose and on a per cap basis increased over 6% versus the prior year period, marking our 19th consecutive quarterly increase for that key metric.

"The weaker than expected domestic box office and resulting attendance decline negatively impacted Carmike's bottom line results and adjusted EBITDA due to our proportionately higher fixed cost structure. Our most recent acquisition - Digital Cinema Destinations Corp. (Digiplex) - closed in mid-August and as a result, Carmike's Q3 operating and overhead costs rose due to the additional locations in our circuit. However, this came without a corresponding box office benefit as the second half of the third quarter typically generates lower box office receipts with the absence of high-profile movie releases.

"Nevertheless, Carmike continues to effectively execute its strategy of making attractive acquisitions and new-builds that expand our operating platform into complementary markets that we believe will further enhance long-term value. In this regard, over the past three years we have successfully acquired and integrated 740 screens onto Carmike's growing platform, inclusive of our stock-for-stock purchase of Digiplex.

"As I stated on last quarter's call, our board, management team and I all believe the prudent course of action is for Carmike to continue its active role as a major industry consolidator as we see a number of potential opportunities to acquire additional regional exhibitors. Our top priority is targeting transactions that we believe will add high quality assets to our footprint and also generate attractive levels of theatre level cash flow, providing for the optimal return on investment for all of Carmike's stakeholders.

"Finally, as stated in yesterday's press release, we are disappointed that the Department of Justice is seeking to block the proposed sale of Screenvision. Notwithstanding the outcome of this decision, we remain very pleased with our relationship with Screenvision," concluded Mr. Passman.

"Film exhibition costs as a percentage of admissions revenues decreased by approximately 40 basis points to 54.6%. Concession costs as a percentage of concessions and other revenues decreased by approximately 170 basis points to 11.7% as a result of lower concession costs and higher rebates, versus the year-ago period.

"Although salaries and benefits rose 4.9% to $22.9 million due to our circuit growth, this increase was proportionally lower than the 13% rise in the number of average screens we operated during the quarter. Theatre occupancy costs rose $4.8 million to $21.8 million and other theatre operating costs rose $4.3 million to $31.4 million due primarily to our expanded circuit. General and administrative expenses were $8.4 million, versus $6.6 million in the 2013 period, due to legal and professional fees related to our acquisition and expansion initiatives. Quarterly interest expense was $12.8 million, due principally to the assumption of additional long-term lease obligations associated with the acquired Muvico screens.

"Adjusted EBITDA in Q3 2014 was $18.4 million and theatre level cash flow was $24.5 million. The aforementioned unfavorable box office environment and resulting lower attendance impacted Carmike's financial results for the quarter. We will continue to exercise sensible cost management, especially on controllable expenses, to maximize our future organizational operating performance.

"At quarter-end we had $355.0 million of net debt, versus $311.4 million at December 31, 2013, reflecting an aggregate of capital leases and long-term financing obligations, plus senior notes. Carmike's quarter-ending balance sheet included cash of $96.2 million," concluded Mr. Hare.

Supplemental Financial Measures

Theatre level cash flow, EBITDA, adjusted EBITDA, adjusted net (loss) income, total debt and net debt are supplemental non-GAAP financial measures used by Carmike to evaluate its operating performance. Carmike defines theatre level cash flow as adjusted EBITDA, as defined below, plus general and administrative expenses. Carmike believes that theatre level cash flow is an important supplemental measure of operating performance for a motion picture exhibitor's operations because it provides a measure of the core operations, rather than factoring in items such as general and administrative expenses and depreciation and amortization, among others. In addition, Carmike believes that theatre level cash flow, as defined, is a widely accepted measure of comparative operating performance in the motion picture exhibition industry. Adjusted net (loss) income is defined as net (loss) income plus impairment of long-lived assets, merger and acquisition-related expenses, lease termination charges, severance agreement charges and loss on sale of property and equipment, net of tax. Carmike believes adjusted net (loss) income is an important supplemental measure of operating performance for a motion picture exhibitor because it provides a measure of core operations. Total debt is defined as the sum of current maturities of capital leases and long-term financing obligations, long-term debt and capital leases and long-term financing obligations (less current maturities). Net debt is defined as total debt less cash and cash equivalents. EBITDA is defined as net (loss) income plus income tax (benefit) expense, interest expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus income from unconsolidated affiliates, loss from discontinued operations, merger and acquisition-related expenses, lease termination charges, severance agreement charges, loss on sale of property and equipment, and impairment of long-lived assets. Carmike believes that EBITDA and adjusted EBITDA are important supplemental measures of operating performance for a motion picture exhibitor's operations because they provide measures of core operations.

About Carmike Cinemas (www.carmike.com)

Carmike Cinemas, Inc. is a U.S. leader in digital cinema, 3-D cinema deployments and one of the nation's largest motion picture exhibitors. Carmike has 278 theatres with 2,917 screens in 41 states. The circuit includes 42 premium large format (PLF) auditoriums featuring state-of-the-art technology and luxurious seating, including 25 "BigDs," 15 IMAX auditoriums and two MuviXL screens. As "America's Hometown Theatre Chain" Carmike's primary focus is mid-sized communities.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs, expectations and future performance, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words, "believes," "expects," "anticipates," "plans," "estimates," "seeks" or similar expressions. Examples of forward-looking statements in this press release include the Company's expectations regarding circuit and strategic expansion and additional acquisition opportunities. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of management, which in turn are based on currently available information. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include, but are not limited to; our ability to achieve expected results from our strategic acquisitions, general economic conditions in our regional and national markets; our ability to comply with covenants contained in our senior secured credit agreement and the indenture governing our 7.375% Senior Secured Notes due 2019; our ability to operate at expected levels of cash flow; financial market conditions including, but not limited to, changes in interest rates and the availability and cost of capital; our ability to meet our contractual obligations, including all outstanding financing commitments; the availability of suitable motion pictures for exhibition in our markets; competition in our markets; competition with other forms of entertainment; and other factors, including the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013, under the caption "Risk Factors." We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

(1) Includes activity from theatres designated as discontinued operations and reported as such in the consolidated statements of operations.
Carmike Cinemas' Chief Financial Officer Richard B. Hare stated, "Carmike's total operating revenues for the quarter ended September 30, 2014 decreased minimally from the comparable 2013 period, reflecting a 2.1% reduction in admissions revenue, partially offset by a 1.0% increase in concessions and other revenues. Although our average screen count rose 13%, total attendance declined 5.8%, reflective of the challenging box office period. Average admissions per patron rose 3.4% to $6.98, partially offsetting the attendance decline impact and concessions and other revenues per patron also increased, from $4.09 to $4.35. Overall, combined Q3 2014 average per patron spending rose 4.5% to $11.33 per visit to our entertainment complexes.

(1) Theatre level cash flow, adjusted net (loss) income, adjusted EBITDA, total debt and net debt are supplemental non-GAAP financial measures. Reconciliations of theatre level cash flow and adjusted EBITDA to net (loss) income and adjusted net (loss) income to net (loss) income for the three and nine months ended September 30, 2014 and 2013, as well as a schedule of total debt and net debt as of September 30, 2014 and December 31, 2013, are included in the supplementary tables accompanying this news announcement.(1) Adjustments to net income for the three and nine months ended September 30, 2014 and 2013 are shown net of tax effect of 42.0% and 41.5%, respectively, which represents the estimated combined federal and state tax rates.

Contacts:

JCIR
Robert Rinderman or Jennifer Neuman
212/835-8500 or ckec@jcir.com
or
Carmike Cinemas, Inc.
Richard B. Hare, 706/576-3416
Chief Financial Officer

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CENTENNIAL, Colo. -- National CineMedia, Inc. (NASDAQ: NCMI) (the "Company" or "NCM") and Screenvision, LLC ("Screenvision") defended their proposed merger in response to the complaint filed by the U.S. Department of Justice ("DOJ") seeking to block their combination.

NCM Chairman and CEO Kurt Hall said, "I am obviously very disappointed that the DOJ did not see the benefits of the new combined company to our advertising clients and their agencies and our exhibitor partners. We look forward to demonstrating those benefits. Combining NCM and Screenvision will enable us to offer advertisers a better product with the broader reach, ubiquitous geographic coverage, more advertising impressions, enhanced targeting capability, and lower costs that advertising clients and their agencies seek. With a better product we will generate more advertising revenue for our theatre circuit partners. Advertisers, exhibitors and shareholders all will benefit from this combination which will better enable NCM 2.0 to compete in the increasingly competitive video advertising marketplace."

Screenvision CEO Travis Reid noted, "The merger preserves all the desirable attributes of cinema advertising while allowing the combined company to compete more effectively on dimensions important to advertisers. Together, NCM and Screenvision will be more competitive in the expanding video advertising marketplace and provide long term incremental advertising revenue to our theater partners."

Benefits of the Combined Company

Greater Reach

Advertisers place a premium value on reach. The merger will increase the number of theatre attendees reached by approximately 60%, allowing NCM 2.0 to offer a greater number of the advertising impressions that will be more competitive with cable and broadcast TV networks and online and mobile video advertising platforms.

Ubiquitous Coverage

Advertisers value ubiquitous audience coverage. NCM and Screenvision's competitors including TV broadcasters, many cable programmers and virtually all the online and mobile advertising platforms have ubiquitous national reach. This limits NCM's and Screenvision's current ability to compete for the budgets of national brands, most notably QSRs, Retailers and CPG brands who have businesses with national distribution (or store) networks that require their advertising to be in virtually all markets in which they operate. The merger will allow the combined company to offer advertisers the ubiquity they require.

Ability to Target Specific Audience Demographics

Advertisers prefer to buy a network that can provide a high percentage of a specific age or gender demographic group (e.g. Female 18-34); audience members outside that target represent waste that is inefficient for the advertiser and the network. Neither NCM nor Screenvision alone have a large enough base of attendance (advertising impressions) to target specific audience groups as well as TV networks or online and mobile video advertising platforms. The increase in advertising impressions resulting from the merger will provide enough advertising impressions to enable us to create targeted buys across the nearly 80 age and gender demographic groups currently sold on a guaranteed basis by TV networks and to provide the psychographic and other more precise targeting provided by Internet and mobile advertising platforms.

Lower Costs for Advertisers

While demanding reach, ubiquity and targeting capability, advertisers also want advertising platforms that will make it less difficult to plan and execute their advertising strategies. Advertisers want a single network that provides consistency across all impressions purchased, makes it less difficult to compare performance with other media acquired for a specific campaign, and improves efficiency of media buying process (i.e., takes less time to execute). The merger creates the network that advertisers tell us they want to buy and eliminates the costs associated with the many differences between the NCM and Screenvision networks including differing proposal and rating point estimate processes, different pre show quality and format and ad placement, confusing messaging about reach and market coverage and the value of preshow placement, different pricing methodologies, different delivery technologies and different posting processes.

Significant Expense Synergies

As a result of the merger more than $30 million of annual recurring operating expense synergies will be realized through the elimination of duplicative functions and operating costs. These operating expense savings will be reinvested into upgrading the network equipment within theatres and creating new systems like CATO (NCM's planned "Cinema Audience Targeting Optimizer"), to make our cinema advertising product even more attractive to advertisers.

As previously announced, the boards of directors of both NCM, Inc. and Screenvision, as well as, Screenvision's equity owners, approved a plan to combine to create a stronger combined cinema advertiser.

About National CineMedia, Inc.

National CineMedia (NCM) operates NCM Media Networks, a leading integrated media company reaching U.S. consumers in movie theaters, online and through mobile technology. NCM presents cinema advertising across the nation's largest digital in-theater network, comprised of theaters owned by AMC Entertainment Inc. (NYSE: AMC), Cinemark Holdings, Inc. (NYSE: CNK), Regal Entertainment Group (NYSE: RGC) and other leading regional theater circuits. NCM's theater advertising network covers 183 Designated Market Areas® (49 of the top 50) and includes over 20,000 screens (approximately 19,200 connected to our Digital Content Network). During 2013, over 710 million patrons (on an annualized basis) attended movies shown in theaters in which NCM currently has exclusive cinema advertising agreements in place. NCM Digital offers 360-degree integrated marketing opportunities in combination with cinema, encompassing 33 entertainment-related websites, online solutions and mobile applications. National CineMedia, Inc. (NASDAQ: NCMI) owns a 45.8% interest in and is the managing member of National CineMedia LLC. For more information, visit www.ncm.com.

About Screenvision

Headquartered in New York, N.Y., Screenvision is a national leader in cinema advertising, offering on-screen advertising, in-lobby promotions, and integrated marketing programs to national, regional, and local advertisers. Screenvision provides comprehensive cinema advertising representation services to top tier theatrical exhibitors presenting the highest quality moviegoing experience. The Screenvision cinema advertising network is comprised of over 14,200 screens in 2,200+ theater locations across all 50 states and 94 percent of DMAs nationwide; delivering through more than 150 theatrical circuits, including six of the top 10 exhibitor companies.

 

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nec.pngNEC Customers in Film, Television and Broadcast Industries Benefit from Color Specialist's Market Experience, Flexible System

CHICAGO - November 4, 2014 - NEC Display Solutions of America, a leading provider of commercial LCD display and projector solutions, announced today a collaboration with United Kingdom-based Light Illusion, a color management specialist, to enable native calibration for NEC color-critical monitors through its LightSpace CMS display calibration system.

LightSpace enables accurate color calibration and management of displays used in the post-production and broadcast markets. The ability of users to self-calibrate their displays as needed and to directly upload creative "looks" raises the appeal of NEC displays in these industries.

"LightSpace CMS is the de facto industry standard for the TV, film and broadcast markets, making it the obvious choice for advanced color calibration and management," said Art Marshall, Product Manager of Professional Desktop Displays at NEC Display. "For these users, calibration is managed differently. Our MultiSync® PA Series customers in these industries will realize the same high level of accuracy from LightSpace CMS as ones using our SpectraView Calibration system in the photography and pre-press markets."

NEC Display Solution's MultiSync PA Series displays feature custom calibration 3D LUT (lookup table) import capabilities that can directly upload calibration LUTs created via LightSpace CMS. That means users can accurately profile and calibrate NEC displays to a high level and conduct "look management" for situations such as on-set monitoring. Users gain new flexibility, including custom calibration, self-created color spaces and custom LUT manipulation.

Combined with the dependable imaging from the MultiSync PA Series, including backlight stability sensor and wide color gamuts, users of LightSpace CMS will have consistent, accurate windows into their work products.

"We are delighted to work with NEC Display to meet the calibration needs of artists in the world of moving images," said Steve Shaw, CEO of Light Illusion. "The flexibility of the LightSpace CMS and the features of the MultiSync PA Series give users the tools necessary to realize their artistic and business goals."

LightSpace CMS integrates with a wide range of popular calibration probes, which lets users choose their own color management workflows and levels of calibration investment. To facilitate switching between different calibrations, color spaces and looks, LightSpace CMS can directly upload LUTs to attached NEC displays through USB connections.

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About NEC Display Solutions of America, Inc.
Headquartered in Itasca, Ill., NEC Display Solutions of America, Inc., is a leading designer and provider of innovative desktop LCD monitors, commercial- and professional-grade large-screen LCD displays, a diverse line of multimedia and digital cinema projectors, and integrated display solutions. NEC Display Solutions develops leading-edge visual technology and customer-focused solutions for a wide variety of markets, including enterprise, healthcare, education and digital signage. For additional information about NEC Display Solutions of America products, call (866) NEC-MORE, or visit the website at www.necdisplay.com. For digital images, please visit http://necdisplay.com/digital-media-library. Follow us on our social media channels: Facebook, YouTube, Google+, Twitter and LinkedIn.

About VUKUNET
VUKUNET, from NEC Display Solutions of America, is the engine that powers the digital out-of-home advertising business. VUKUNET is the only universal ad serving platform that drives ads to any digital out-of-home network, regardless of content management system. VUKUNET makes the buying, flighting and reporting of digital out-of-home ad campaigns easy. For additional information about VUKUNET, visit www.vukunet.com, or call (877) 805-VUKU. For VUKUNET logos and digital images, please visit http://www.vukunet.com/pressresources.aspx.

About Light Illusion
From on-set through post-production to final delivery, Light Illusion provides industry-leading color management and workflow tools for digital cinematography and digital intermediate workflows with a key focus on high-quality system-wide color management. Light Illusion staff have numerous credits for feature film DI and grading work, as well as acting as digital film technologists and supervisors in building operational production and post-production workflows, and it is this real-world experience that is the basis for all of Light Illusion's product development, guaranteeing perfect market application. For more information, contact CEO Steve Shaw at steve@lightillusion.com.

 

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