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Topic: Carmike 10-K

Jeffry L. Johnson
Jedi Master Film Handler

Posts: 809
From: Cleveland, Ohio, USA
Registered: Apr 2000

posted 05-16-2008 10:45 AM

Carmike 10-K 2007 web page

quote:
Digital Cinema

We executed a Master License Agreement with Christie/AIX (“Christie”) on December 16, 2005. This agreement calls for Christie to license and install up to 2,300 digital cinema projection systems in our theatre auditoriums at a per screen installation cost of $800. The term of the agreement is from the date of installation in a specific auditorium until December 31, 2020 unless renewed for successive one year periods for up to ten years. Additionally, we are responsible for the maintenance of the installed equipment and have entered into a service agreement with Christie at an annual per screen cost of $2,250.

As of December 31, 2007, we had 237 theatres with 2,174 screens on a digital-based platform, and 194 theatres with 429 screens equipped for 3-D. We believe our leading-edge technologies allow us not only greater flexibility in showing feature films, but also provide us with the capability to explore revenue-enhancing alternative content programming. Digital film content can be easily moved to and from auditoriums in our theatres to maximize attendance. The superior quality of digital cinema and our 3-D capability could provide a competitive advantage to us in markets where we compete for film and patrons.

Carmike closed a western Pennsylvania all-digital cinema location because the theater income couldn't cover the digital cinema financial obligations.

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 05-16-2008 12:24 PM

quote: Jeffry L. Johnson
Carmike closed a western Pennsylvania all-digital cinema location because the theater income couldn't cover the digital cinema financial obligations.

I can guarantee you they have quite a few other locations heading the same way. They also have locations that can barely justify running film. Ultra Star Cinemas has also closed "all digital" locations as well. In their case I can't say weather they closed because the theater couldn't support the ludicrous 10 year service forcontract they signed or because they lost the lease or other reasons.

Mark

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99

posted 05-16-2008 02:37 PM

$800 per screen installation cost? That must have just been the labor, right? Or is the rest of the $80,000 or whatever being paid by VPFs? (If so, what a screw job for the rest of us!)

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Scott Norwood
Film God

Posts: 8146
From: Boston, MA. USA (1774.21 miles northeast of Dallas)
Registered: Jun 99

posted 05-16-2008 02:41 PM

Presumably they got a sweetheart deal for being the first (and, so far, only) major chain to make a firm commitment to DLP.

AccessIT looks to be on pretty shaky ground right now, too, and it will be interesting to see which company (AccessIT or Carmike) takes first and whether it takes the other one down with it as a result.

I'm not sure how much Carmike's DLP installs correlate with the company's poor performance. The company was in pretty rough shape well before it made that deal.

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 05-16-2008 03:57 PM

quote: Scott Norwood
The company was in pretty rough shape well before it made that deal.

They still are and always will be in rough shape... More due to corporate mentality than any other aspect!

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Aaron Mehocic
Jedi Master Film Handler

Posts: 804
From: New Castle, PA, USA
Registered: Jun 99

posted 05-17-2008 01:32 PM

Double post. See Below.

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Aaron Mehocic
Jedi Master Film Handler

Posts: 804
From: New Castle, PA, USA
Registered: Jun 99

posted 05-17-2008 01:56 PM

quote: Jeffry L. Johnson
Carmike closed a western Pennsylvania all-digital cinema location because the theater income couldn't cover the digital cinema financial obligations.

That theater is due to reopen at the end of May with the 35mm equipment re-installed. It will not be ran by Carmike, but was sold to an independent company currently expanding north of Pittsburgh. I work for that company and will be involved in training the new staff on operating that booth. In talking with the service techs, who are delighted to see the digital systems removed and film brought back, this is the first digital un-install they are aware of.

Without divulging too much information on the particulars associated with the Carmike closure and subsequent purchase by our company, I would like to report all eight screens will be reopened and it will operate as a first-run house. All of Carmike's rank-and-file staff for this location was retained and retrained at the neighboring Shenango Valley Cinema across town.

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Steve Wilson
Expert Film Handler

Posts: 109
From: Paoli, IN, USA
Registered: May 2004

posted 05-17-2008 05:12 PM

Digital will only become a reality when the cost is in line with Film and is able to save both the theater and the studios money. Thats the point at which digital becomes the standard in all industries trying to use digital anything.

I have high hopes of more bankrupcies at the corporate theater level, to slow this overpriced technology down for a least 5 to 10 years!

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Martin McCaffery
Film God

Posts: 2481
From: Montgomery, AL
Registered: Jun 99

posted 05-20-2008 08:25 PM

Carmike closed its all digital Wynsong 10 in Montgomery last November (on a Wednesday, no less) and took over the O'neil's all 35mm the next town over at the same time. Currently it appears half of the screens are now digital.

As an aside, in the 22 years I've been here, they've gone from being a monopoly (other than us) with as many as 9 theatres to the one they have in town now. Good Riddance.

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 05-21-2008 02:40 PM

Martin... As my customers say..."If you have to have competition Carmike is the best one to have".

Mark

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Larry Myers
Master Film Handler

Posts: 371
From: Herndon, VA, USA
Registered: Jan 2001

posted 05-21-2008 07:21 PM

One of the worst presentations I have ever seen was just last week at a Carmike in Pittsburgh. Dirty theater, dirty lens, dirty projector window and the image was 15% smaller then the screen resulting in fuzzy boarders all the way around the image.

When I looked up at the projector from my seat, I could hardly see it for all the dirt and fingerprints on the port window. It was not worth the 99 cents to get in.

[ 05-22-2008, 07:43 AM: Message edited by: Larry Myers ]

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Joe Redifer
You need a beating today

Posts: 12859
From: Denver, Colorado
Registered: May 99

posted 05-21-2008 07:30 PM

When I saw the title of this thread, I thought that Carmike would be installing digital projectors with 10K resolution. But at $800 a pop, it seems like they'll be using the Wal*Mart Special variety.

Anyway what does 10K have to do with anything in the original post? I can't figure it out! EDIT: Oh, it's the form they filled out or some such nonsense.

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