NEW YORK -- Carmike Cinemas swung to a loss of $9.3 million in the first quarter from a profit of $3.8 million, reflecting both the exhib industry's widespread slump and a one-time early debt repayment charge.

Excluding the charge, which flowed from Carmike's refinancing of its debt after raising $200 million in bonds earlier this year, the exhib lost $3.1 million on 16% lower revenues of $97.7 million.

Cash flow dip

The deterioration in business was highlighted by a 40% decline in Carmike's cash flow -- earnings before interest, taxes, depreciation and amortization -- to $13 million. The cash flow drop came despite a 10% reduction in Carmike's operating expenses, the exhib said, resulting from a concerted cost-cutting effort.

All major exhibs had warned earlier this year that the absence of a "Titanic"-like presence at theaters this quarter, compared with the same period last year, would result in lower earnings or, in some cases, losses. Carmike's earnings were broadly in line with expectations, and its stock rose 87� to $20.93.

Carmike CEO Michael Patrick said the exhib had "focused our attention on cost reduction" in anticipation of the likely downturn in attendance levels during the quarter.

Cost-cutting, prepping for 'Menace'

"Management continues to work on cost-cutting measures and controls while preparing and looking forward to our summer season," when "Star Wars: Episode I -- The Phantom Menace" is expected to boost attendance dramatically, he added.

Carmike announced that before the "Star Wars" pic opens, it plans to reopen 53 screens closed during the first quarter for stadium seating additions and bow five new complexes with a total of 79 screens. Patrick predicted the summer would be "one of the best ... in our industry's history in box office sales."