Carmike Cinemas Q2 2008 Earnings Call Transcript

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2008-08-11 15:20:24.0

Tags: Carmike Cinemas Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We’ll take our first question from David Miller, Caris & Company.

David Miller - Caris & Company

Good afternoon. Just a couple of housekeeping items; Richard, I still have your NOL balance as being $114.5 million. Is that correct? Was there any change in the quarter? It doesn’t look like there was. And I just have a follow-up. Thanks.

Richard B. Hare

Sure. We are right at $116.7 million of federal and state operating loss carry-forwards as of the end of June.

David Miller - Caris & Company

Okay, wonderful. And then the $2 up-charge for Journey to the Center of the Earth, can you guys just give me your overall sort of 100,000 foot view as to what kind of elasticity in pricing that might carry going forward? I mean, Jeff Katzenberg, we cover DreamWorks Animation, you know, he’s been talking rhetorically about a $5 up-charge for some of his films. A lot of the guys at DCIP were talking about maybe a $3 up-charge as being standard. It looks like you charged $2 for Journey. Could you just comment as to any wiggle room in the future with that up-charge? Thanks.

Fred W. Van Noy

When we played Meet the Robinsons, we had 10 locations that we pushed that $2 to $2.50, kind of just to test the waters. With Journey, we had 17% of our play dates at the $2.50 level. I think that of course we’ll continue to push this. We had absolutely no push back with the 17%. They were of course our larger markets but as we get to Bolt, I think Bolt will be the movie that we will be able to really escalate this price up a little bit higher.

And as far as a $5 threshold or a $3 threshold, we are just going to keep testing the market and see where it will take us.

David Miller - Caris & Company

Okay. Thank you.

Operator

(Operator Instructions) With no further questions in the queue, I would like to turn it back to Mr. Michael Patrick for any closing remarks.

Michael W. Patrick

Thank you for attending our call today and as always, if you have any follow-up questions, just call Richard, Fred, or myself. Thank you very much.

Operator

Ladies and gentlemen, that does conclude today’s conference. You may now disconnect.

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