ncmi-ex99

Centennial, CO – February 23, 2017 – National CineMedia, Inc. (NASDAQ: NCMI) (the Company), the managing member and owner of 43.7% of National CineMedia, LLC (NCM LLC), the operator of the largest in-theater digital media network in North America, today announced consolidated results for the fiscal fourth quarter and year ended December 29, 2016.

Total revenue for the fourth quarter ended December 29, 2016 increased 4.5% to a record $142.5 million from $136.4 million for the comparable quarter last year. Adjusted OIBDA increased 14.9% to a record $86.4 million for the fourth quarter of 2016 from $75.2 million for the fourth quarter of 2015. Net income for the fourth quarter of 2016 was $14.7 million, or income of $0.24 per diluted share, compared to net income of $6.6 million, or income of $0.11 per diluted share, for the fourth quarter of 2015. As adjusted to exclude the reserve for uncertain tax positions and CEO transition-related costs, net income for the fourth quarter of 2016 and fourth quarter of 2015, would have been $0.24 per diluted share and $0.20 per diluted share, respectively.

Total revenue for the year ended December 29, 2016 increased 0.2% to $447.6 million from $446.5 million for the comparable period last year. Adjusted OIBDA increased 0.3% to $230.7 million for the full year of 2016 from $229.9 million for the full year of 2015. Net income for the full year of 2016 was $25.4 million, or income of $0.42 per diluted share, compared to net income of $15.4 million, or income of $0.26 per diluted share for the full year of 2015. As adjusted to exclude a loss on early retirement of debt, the costs associated with the terminated merger with Screenvision and certain other non-recurring items set forth in the table at the end of this release, net income for the full year of 2016 would have been $0.44 per diluted share and net income for the full year of 2015 would have been $0.51 per diluted share. Adjusted OIBDA and adjusted earnings per share are non-GAAP measures. See the tables at the end of this release for the reconciliations to the closest GAAP basis measurement.

The Company announced today that its Board of Directors has authorized the Company’s regular quarterly cash dividend of $0.22 per share of common stock. The dividend will be paid on March 23, 2017 to stockholders of record on March 9, 2017. The Company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors consistent with the Company’s intention to distribute over time a substantial portion of its free cash flow. The declaration, payment, timing and amount of any future dividends payable will be at the sole discretion of the Board of Directors who will take into account general economic and advertising market business conditions, the Company’s financial condition, available cash, current and anticipated cash needs, and any other factors that the Board of Directors considers relevant.

Commenting on the Company’s fourth quarter and full year 2016 operating results, Andy England, NCM’s CEO said, “As you know, 2016 was my first year as CEO of National CineMedia, and I am happy to say that it was a good one. NCM had a record Q4 and full year 2016 for both revenue and Adjusted OIBDA derived from advertising, against record comps from 2015. But this year was about more than just the numbers. We also established a new leadership team, presented some truly groundbreaking cinema campaigns in theaters, and created a company vision, values and plan that will allow us to pursue a strategy that includes growing our network affiliate partnerships, growing on-screen revenue, expanding our digital product offerings, ensuring that we are the first choice for our customers, developing our people and capabilities, and allocating resources to strategy. It is an exciting time to be at NCM, and I am optimistic about our future and the future of cinema advertising.”

For the full year 2017, the Company expects total revenue to be down 0.5% to up 4% and Adjusted OIBDA is expected to be down 2% to up 4% from the full year 2016. The Company expects total revenue in the range of $445.0 million to $465.0 million for the full year 2017, compared to total revenue for the full year 2016 of $447.6 million and Adjusted OIBDA in the range of $225.0 million to $240.0 million for the full year 2017 compared to Adjusted OIBDA for the full year 2016 of $230.7 million. This outlook includes the impact of an 8% increase in the theater access fee paid to the founding members that occurs every five years.

Integration payments due from Cinemark and AMC associated with Rave Theatres for the quarter ended December 29, 2016 and December 31, 2015 and the full year ended December 29, 2016 and December 31, 2015 were $1.1 million, $0.9 million, $2.6 million and $2.7 million, respectively. The integration payments were recorded as a reduction of an intangible asset.

The Company will host a conference call and audio webcast with investors, analysts and other interested parties February 23, 2017 at 5:00 P.M. Eastern time. The live call can be accessed by dialing 1-877-407-9039 or for international participants 1-201-689-8470. Participants should register at least 15 minutes prior to the commencement of the call. Additionally, a live audio webcast will be available to interested parties at www.ncm.com under the Investor Relations section. Participants should allow at least 15 minutes prior to the commencement of the call to register, download and install necessary audio software.

The replay of the conference call will be available until midnight Eastern Time, March 9, 2017, by dialing 1-844-512-2921 or for international participants 1-412-317-6671, and entering conference ID 13654646.

National CineMedia (NCM) is America’s Movie Network. As the #1 Millennial weekend network in the U.S., NCM is the connector between brands and movie audiences. More than 700 million moviegoers annually attend theaters that are currently under contract to present NCM’s FirstLook pre-show in over 40 leading national and regional theater circuits including AMC Entertainment Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK) and Regal Entertainment Group (NYSE: RGC). NCM’s cinema advertising network offers broad reach and unparalleled audience engagement with over 20,500 screens in over 1,600 theaters in 189 Designated Market Areas® (all of the top 50). NCM Digital goes beyond the big screen, extending in-theater campaigns into online and mobile marketing programs to reach entertainment audiences. National CineMedia, Inc. (NASDAQ:NCMI) owns a 43.7% interest in, and is the managing member of, National CineMedia, LLC. For more information, visit www.ncm.com.

This press release contains various forward-looking statements that reflect management’s current expectations or beliefs regarding future events, including statements providing guidance and projections for the full year 2017, the dividend policy, and our beliefs about our business position as we enter 2017. Investors are cautioned that reliance on these forward-looking statements involves risks and uncertainties. Although the Company believes that the assumptions used in the forward looking statements are reasonable, any of these assumptions could prove to be inaccurate and, as a result, actual results could differ materially from those expressed or implied in the forward looking statements. The factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are, among others, 1) level of theater attendance; 2) increased competition for advertising expenditures; 3) technological changes and innovations; 4) economic conditions, including the level of expenditures on cinema advertising; 5) our ability to renew or replace expiring advertising and content contracts; 6) our need for additional funding, risks and uncertainties relating to our significant indebtedness; 7) fluctuations

in operating costs; 8) changes in interest rates; and 9) changes in accounting principles. In addition, the outlook provided does not include the impact of any future unusual or infrequent transactions; sales and acquisitions of operating assets and investments; any future noncash impairments of intangible and fixed assets; amounts related to litigation or the related impact of taxes that may occur from time to time due to management decisions and changing business circumstances. The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events. Please refer to the Company’s Securities and Exchange Commission filings, including the “Risk Factor” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, for further information about these and other risks.

	Quarter Ended						Years Ended
	December 29, 2016			December 31, 2015			December 29, 2016			December 31, 2015
Revenue (including revenue from founding members of $7.0, $7.0, $29.1 and $30.2, respectively)	$	142.5		$	136.4		$	447.6		$	446.5
OPERATING EXPENSES:
Advertising operating costs		9.2			8.9			30.0			30.8
Network costs		4.2			4.8			17.1			17.8
Theater access fees—founding members		18.3			18.5			75.1			72.5
Selling and marketing costs		18.3			22.4			72.8			72.3
Merger-related costs		—			—			—			34.3
Administrative and other costs		10.9			12.3			43.8			38.6
Depreciation and amortization		9.3			8.0			35.8			32.2
Total		70.2			74.9			274.6			298.5
OPERATING INCOME		72.3			61.5			173.0			148.0
NON-OPERATING EXPENSES:
Interest on borrowings		12.8			13.0			54.0			52.2
Interest income		(0.2	)		(0.2	)		(1.5	)		(1.6	)
Accretion of interest on the discounted payable to founding members under tax receivable agreement		3.5			3.5			13.9			14.1
Amortization of terminated derivatives		—			—			—			1.6
Loss on early retirement of debt		—			—			10.4			—
Other non-operating expense		—			—			—			0.2
Total		16.1			16.3			76.8			66.5
INCOME BEFORE INCOME TAXES		56.2			45.2			96.2			81.5
Income tax expense		7.9			11.5			9.2			17.8
CONSOLIDATED NET INCOME		48.3			33.7			87.0			63.7
Less: Net income attributable to noncontrolling interests		33.6			27.1			61.6			48.3
NET INCOME ATTRIBUTABLE TO NCM, INC.	$	14.7		$	6.6		$	25.4		$	15.4

NET INCOME PER NCM, INC. COMMON SHARE:
Basic	$	0.25		$	0.11		$	0.42		$	0.26
Diluted	$	0.24		$	0.11		$	0.42		$	0.26

(In millions, except advertising revenue per attendee, margin and per share data)

	Quarter Ended						Years Ended
	December 29, 2016			December 31, 2015			December 29, 2016			December 31, 2015
Revenue breakout:
National advertising revenue	$	96.4		$	88.8		$	311.9		$	307.0
Local and regional advertising revenue		39.3			40.6			107.0			109.5
Total advertising revenue (excluding beverage)	$	135.7		$	129.4		$	418.9		$	416.5

Total revenue	$	142.5		$	136.4		$	447.6		$	446.5

Per attendee data:
National advertising revenue per attendee	$	0.585		$	0.486		$	0.453		$	0.442
Local and regional advertising revenue per attendee	$	0.239		$	0.222		$	0.155		$	0.158
Total advertising revenue (excluding beverage) per attendee	$	0.824		$	0.708		$	0.608		$	0.600
Total revenue per attendee	$	0.865		$	0.746		$	0.650		$	0.643
Total attendance (1)		164.7			182.8			688.8			694.7

Other operating data:
Operating income	$	72.3		$	61.5		$	173.0		$	148.0
OIBDA (2)	$	81.6		$	69.5		$	208.8		$	180.2
Adjusted OIBDA (2)	$	86.4		$	75.2		$	230.7		$	229.9
Adjusted OIBDA margin (2)		60.6	%		55.1	%		51.5	%		51.5	%

Income per share – basic	$	0.25		$	0.11		$	0.42		$	0.26
Income per share – diluted	$	0.24		$	0.11		$	0.42		$	0.26

Adjusted income per share – basic (2)	$	0.25		$	0.20		$	0.45		$	0.51
Adjusted income per share – diluted (2)	$	0.24		$	0.20		$	0.44		$	0.51

Operating Income Before Depreciation and Amortization (“OIBDA”), Adjusted OIBDA and Adjusted OIBDA margin are not financial measures calculated in accordance with GAAP in the United States. OIBDA represents operating income before depreciation and amortization expense. Adjusted OIBDA excludes from OIBDA non-cash share based compensation costs, the merger termination fee and related merger costs and Chief Executive Officer transition costs. Adjusted OIBDA margin is calculated by dividing Adjusted OIBDA by total revenue. Our management uses these non-GAAP financial measures to evaluate operating performance, to forecast future results and as a basis for compensation. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that may have different depreciation and amortization policies, non-cash share based compensation programs, levels of mergers and acquisitions, CEO turnover, interest rates, debt levels or income tax rates. A limitation of these measures, however, is that they exclude depreciation and amortization, which represent a proxy for the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company’s business. In addition, Adjusted OIBDA has the limitation of not reflecting the effect of the Company’s share based payment costs, costs associated with the terminated merger with Screenvision, or costs associated with the resignation of the company’s former Chief Executive Officer. OIBDA or Adjusted OIBDA should not be regarded as an alternative to operating income, net income or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that operating income is the most directly comparable GAAP financial measure to OIBDA. Because not all companies use identical calculations, these non-GAAP presentations may not be comparable to other similarly titled measures of other companies, or calculations in the Company’s debt agreement.

The following tables reconcile operating income to OIBDA and Adjusted OIBDA for the periods presented (dollars in millions):

	Quarter Ended						Years Ended
	December 29, 2016			December 31, 2015			December 29, 2016			December 31, 2015
Operating income	$	72.3		$	61.5		$	173.0		$	148.0
Depreciation and amortization		9.3			8.0			35.8			32.2
OIBDA	$	81.6		$	69.5		$	208.8		$	180.2
Share-based compensation costs (1)		4.6			5.1			18.3			14.8
Merger-related costs (2)		—			—			—			34.3
CEO transition costs (3)		0.2			0.6			3.6			0.6
Adjusted OIBDA	$	86.4		$	75.2		$	230.7		$	229.9
Total revenue	$	142.5		$	136.4		$	447.6		$	446.5
Adjusted OIBDA margin		60.6	%		55.1	%		51.5	%		51.5	%

Adjusted OIBDA	$	86.4		$	75.2		$	230.7		$	229.9
Rave theatres integration payments		1.1			0.9			2.6			2.7
Adjusted OIBDA after integration payments	$	87.5		$	76.1		$	233.3		$	232.6

Adjusted net income and earnings per share are not financial measures calculated in accordance with GAAP in the United States. Adjusted net income and earnings per share are calculated using reported net income and income per share and exclude a loss on early retirement of debt, the change of a reserve for uncertain tax positions, the amortization of terminated derivatives, merger-related costs and CEO transition-related costs shown in the below table. Our management uses these non-GAAP financial measures as an additional tool to evaluate operating performance. The Company believes these are important supplemental measures of operating performance because they eliminate items that have less bearing on its operating performance and so highlight trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. The Company believes the presentation of these measures is relevant and useful for investors because it enables them to view performance in a manner similar to a method used by the Company’s management and helps improve their ability to understand the Company’s operating performance. Adjusted net income should not be regarded as an alternative to net income and should not be regarded as an alternative to earnings per share or as indicators of operating performance, nor should they be considered in isolation of, or as substitutes for financial measures prepared in accordance with GAAP. The Company believes that net income and income per share are the most directly comparable GAAP financial measures. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies.

The following table reconciles net income and income per share as reported to adjusted net income and earnings per share excluding the amortization of terminated derivatives, merger-related costs, CEO transition-related costs, loss on early retirement of debt and the change in a reserve for uncertain tax positions for the periods presented (dollars in millions):

	Quarter Ended						Years Ended
	December 29, 2016			December 31, 2015			December 29, 2016			December 31, 2015
Net income as reported	$	14.7		$	6.6		$	25.4		$	15.4
Amortization of terminated derivatives		—			—			—			1.6
Merger-related costs (1)		—			—			—			34.3
CEO transition costs (2)		0.2			0.6			3.6			0.6
Stock-based compensation expense for modified equity awards (3)		—			—			2.3			—
Loss on early retirement of debt		—			—			10.4			—
Change in reserve for uncertain tax positions (4)		—			4.9			(2.9	)		4.9
Effect of noncontrolling interests (56.3%, 56.2%, 56.3% and 56.2%, respectively)		(0.1	)		(0.3	)		(9.2	)		(20.5	)
Effect of provision for income taxes (38% effective rate)		—			(0.1	)		(2.7	)		(6.1	)
Net effect of adjusting items		0.1			5.1			1.5			14.8
Net income excluding adjusting items	$	14.8		$	11.7		$	26.9		$	30.2

Weighted Average Shares Outstanding as reported and as adjusted
Basic		59,863,068			59,033,946			59,788,026			58,979,508
Diluted		61,071,680			59,963,655			60,605,570			59,589,299

Basic income per share as reported	$	0.25		$	0.11		$	0.42		$	0.26
Net effect of adjusting items		—			0.09			0.03			0.25
Basic income per share excluding adjusting items	$	0.25		$	0.20		$	0.45		$	0.51

Diluted income per share as reported	$	0.24		$	0.11		$	0.42		$	0.26
Net effect of adjusting items		—			0.09			0.02			0.25
Diluted income per share excluding adjusting items	$	0.24		$	0.20		$	0.44		$	0.51

INVESTOR CONTACT:		MEDIA CONTACT:
Ted Watson		Amy Jane Finnerty
800-844-0935		212-931-8117
investors@ncm.com		amy.finnerty@ncm.com

	As of
	December 29, 2016			December 31, 2015
Cash, cash equivalents and marketable securities	$	68.7		$	85.4
Receivables, net		160.5			148.9
Property and equipment, net		29.6			25.1
Total assets		1,057.4			1,073.7
Borrowings, gross		935.0			936.0
Total equity/(deficit)		(181.2	)		(171.7	)
Total liabilities and equity		1,057.4			1,073.7

	Quarter Ended
	December 29, 2016		December 31, 2015
Total Screens (100% Digital) at Period End (1)(6)		20,548		20,361
Founding Member Screens at Period End (2)(6)		17,022		16,981
DCN (Digital Content Network) Screens at Period End (3)(6)		20,080		19,760

	Quarter Ended				Years Ended
(in millions)	December 29, 2016		December 31, 2015		December 29, 2016		December 31, 2015
Total Attendance for Period (4)(6)		164.7		177.4		688.8		694.7
Founding Member Attendance for Period (5)(6)		140.3		150.4		586.2		586.6
Capital Expenditures	$	3.9	$	4.7	$	13.3	$	13.0

	Year Ending December 28, 2017
	NCM, Inc.
	Low		High
Operating income	$	174.1	$	188.7
Depreciation and amortization		35.4		35.6
OIBDA		209.5		224.3
Share-based compensation costs (1)		15.2		15.4
CEO transition costs (2)		0.3		0.3
Adjusted OIBDA	$	225.0	$	240.0
Total revenue	$	445.0	$	465.0