EX-99.1 2 d487141dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS REVENUES

OF $710.8 MILLION FOR THE THIRD QUARTER OF 2017

Plano, TX, November 3, 2017 – Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and nine months ended September 30, 2017.

Cinemark Holdings, Inc.’s total revenues for the three months ended September 30, 2017 was $710.8 million compared to $768.6 million for the three months ended September 30, 2016. For the three months ended September 30, 2017, admissions revenues were $425.1 million and concession revenues were $247.1 million. Concession revenues per patron increased 7.0% to $3.67 and average ticket price increased 1.8% to $6.32 for the three months ended September 30, 2017.

Net income attributable to Cinemark Holdings, Inc. for the three months ended September 30, 2017 was $38.1 million compared to $65.7 million for the three months ended September 30, 2016. Diluted earnings per share for the three months ended September 30, 2017 was $0.33 compared to $0.56 for the three months ended September 30, 2016.

Adjusted EBITDA for the three months ended September 30, 2017 was $153.7 million compared to $184.9 million for the three months ended September 30, 2016. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

“We continued our trend of outperforming the North American box office in the third quarter, beating industry results by approximately 200 basis points. We have now exceeded market growth for 31 out of 35 quarters,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “We are pleased to yet again deliver consistent results, despite the weaker consumer appeal of this summer’s film content, and we remain enthusiastic about the long-term prospects of our industry and film line-up for the remainder of 2017 and beyond.”

Cinemark Holdings, Inc.’s total revenues for the nine months ended September 30, 2017 were $2,241.6 million compared to $2,217.9 million for the nine months ended September 30, 2016. During the nine months ended September 30, 2017, admissions revenues were $1,351.5 million and concession revenues were $777.6 million. Concession revenues per patron increased 8.5% to $3.69 and average ticket price increased 4.1% to $6.41 for the nine months ended September 30, 2017.

Net income attributable to Cinemark Holdings, Inc. for the nine months ended September 30, 2017 was $169.1 million compared to $178.1 million for the nine months ended September 30, 2016. Diluted earnings per share for the nine months ended September 30, 2017 was $1.45 compared to $1.53 for the nine months ended September 30, 2016. Net income for the nine months ended September 30, 2016 was impacted by a pre-tax loss on debt amendments and refinancing of $13.3 million, which was primarily due to the refinancing of the Company’s 7.375% senior subordinated notes with an add-on to the Company’s 4.875% senior notes.

Adjusted EBITDA for the nine months ended September 30, 2017 was $536.2 million compared to $537.9 million for the nine months ended September 30, 2016. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

On September 30, 2017, the Company’s aggregate screen count was 5,957. As of September 30, 2017, the Company had signed commitments to open two new theatres and 16 screens by the end of 2017 and open 17 new theatres with 140 screens subsequent to 2017.

Conference Call/Webcast – Today at 8:30AM ET

Telephone: via 800-374-1346 or 706-679-3149 (for international callers).

Live Webcast/Replay: Available live at investors.cinemark.com. A replay will be available following the call and archived for a limited time.

About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 533 theatres with 5,957 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of September 30, 2017. For more information go to investors.cinemark.com.

Financial Contact:

Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com

Media Contact:

James Meredith – 972-665-1060 or communications@cinemark.com

Forward-looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to future revenues, expenses and profitability, the future development and expected growth of our business, projected capital expenditures, attendance at movies generally or in any of the markets in which we operate, the number or diversity of popular movies released and our ability to successfully license and exhibit popular films, national and international growth in our industry, competition from other exhibitors and alternative forms of entertainment and determinations in lawsuits in which we are defendants. You can identify forward-looking statements by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In evaluating forward-looking statements, you should carefully consider the risks and uncertainties described in the “Risk Factors” section or other sections in the Company’s Annual Report on Form 10-K filed February 23, 2017 and quarterly reports on Form 10-Q. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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Cinemark Holdings, Inc.

Financial and Operating Summary

(unaudited, in thousands)

 

     Three months ended
September 30,		     Nine months ended
September 30,		  
     2017     2016     2017     2016  

Statement of income data:

 

      

Revenues

         

Admissions

    $ 425,128     $ 472,842     $ 1,351,477     $ 1,364,737  

Concession

      247,027       261,391       777,573       752,798  

Other

      38,593       34,341       112,503       100,312  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      710,748       768,574       2,241,553       2,217,847  

Cost of operations

         

Film rentals and advertising

      226,229       249,766       725,603       733,101  

Concession supplies

      40,178       41,888       124,117       116,999  

Facility lease expense

      81,919       82,848       248,569       241,904  

Other theatre operating expenses

      179,646       179,459       533,069       509,339  

General and administrative expenses

      36,947       35,290       112,997       109,143  

Depreciation and amortization

      58,052       54,187       174,545       155,874  

Impairment of long-lived assets

      5,026       406       9,600       2,323  

Loss on sale of assets and other

      8,576       6,940       9,464       10,985  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total cost of operations

      636,573       650,784       1,937,964       1,879,668  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      74,175       117,790       303,589       338,179  

Interest expense (1)

      (26,317 )      (26,659 )      (79,208 )      (81,980 ) 

Loss on debt amendments and refinancing

      —         —         (246 )      (13,284 ) 

Distributions from NCM

      2,144       1,381       11,704       10,117  

Foreign currency exchange gain

      584       485       2,018       2,883  

Other income

      12,584       14,055       31,162       29,627  
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      63,170       107,052       269,019       285,542  

Income taxes

      24,630       40,926       98,475       106,002  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 38,540     $ 66,126     $ 170,544     $ 179,540  

Less: Net income attributable to noncontrolling interests

      401       471       1,438       1,454  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Cinemark Holdings, Inc.

    $ 38,139     $ 65,655     $ 169,106     $ 178,086  
  

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:

         

Basic

    $ 0.33     $ 0.56     $ 1.45     $ 1.53  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.33     $ 0.56     $ 1.45     $ 1.53  
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average diluted shares outstanding

      116,104       115,793       116,063       115,706  
  

 

 

    

 

 

    

 

 

    

 

 

  

Other financial data:

         

Adjusted EBITDA (2)

    $ 153,672     $ 184,891     $ 536,231     $ 537,933  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Includes amortization of debt issue costs.
(2) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net income, the most comparable GAAP measure, is provided in the financial schedules accompanying this press release.

 

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     As of      As of  
     September 30,      December 31,  
     2017      2016  

Balance sheet data:

      

Cash and cash equivalents

    $ 469,446      $ 561,235  

Theatre properties and equipment, net

    $ 1,791,606      $ 1,704,536  

Total assets

    $ 4,371,650      $ 4,306,633  

Long-term debt, including current portion

    $ 1,789,051      $ 1,788,112  

Equity

    $ 1,351,820      $ 1,272,960  

 

     Three months
ended
September 30,		      Nine months ended
September 30,		  
     2017      2016      2017      2016  

Other operating data:

            

Attendance (patrons, in millions):

            

Domestic

      40.6        48.0        130.1        138.0  

International

      26.7        28.2        80.9        83.7  
  

 

 

     

 

 

     

 

 

     

 

 

  

Worldwide

      67.3        76.2        211.0        221.7  
  

 

 

     

 

 

     

 

 

     

 

 

  

Average ticket price (in dollars):

            

Domestic

    $ 7.69      $ 7.39      $ 7.71      $ 7.52  

International

    $ 4.22      $ 4.18      $ 4.30      $ 3.91  

Worldwide

    $ 6.32      $ 6.21      $ 6.41      $ 6.16  

Concession revenues per patron (in dollars):

            

Domestic

    $ 4.47      $ 4.11      $ 4.48      $ 4.17  

International

    $ 2.46      $ 2.27      $ 2.42      $ 2.12  

Worldwide

    $ 3.67      $ 3.43      $ 3.69      $ 3.40  

Average screen count (month end average):

            

Domestic

      4,553        4,563        4,547        4,547  

International

      1,386        1,317        1,367        1,299  
  

 

 

     

 

 

     

 

 

     

 

 

  

Worldwide

      5,939        5,880        5,914        5,846  
  

 

 

     

 

 

     

 

 

     

 

 

  

Segment Information

(unaudited, in thousands)

 

     Three months ended
September 30,		      Nine months ended
September 30,		  
     2017      2016      2017      2016  

Revenues

            

U.S.

    $ 514,376      $ 572,916      $ 1,650,514      $ 1,677,365  

International

      200,122        199,476        602,116        551,212  

Eliminations

      (3,750 )       (3,818 )       (11,077 )       (10,730 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenues

    $ 710,748      $ 768,574      $ 2,241,553      $ 2,217,847  
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted EBITDA

            

U.S.

    $ 108,854      $ 137,540      $ 402,902      $ 409,018  

International

      44,818        47,351        133,329        128,915  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Adjusted EBITDA

    $ 153,672      $ 184,891      $ 536,231      $ 537,933  
  

 

 

     

 

 

     

 

 

     

 

 

  

Capital expenditures

            

U.S.

    $ 65,612      $ 75,839      $ 221,604      $ 175,218  

International

      14,318        22,984        41,126        55,128  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total capital expenditures

    $ 79,930      $ 98,823      $ 262,730      $ 230,346  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended     Nine months ended  
   September 30,     September 30,  
     2017     2016     2017     2016  

Net income

    $ 38,540     $ 66,126     $ 170,544     $ 179,540  

Income taxes

      24,630       40,926       98,475       106,002  

Interest expense

      26,317       26,659       79,208       81,980  

Other income

      (13,168 )      (14,540 )      (33,180 )      (32,510 ) 

Loss on debt amendments and refinancing

      —         —         246       13,284  

Other cash distributions from equity investees (2)

      2,402       1,391       17,321       9,660  

Depreciation and amortization

      58,052       54,187       174,545       155,874  

Impairment of long-lived assets

      5,026       406       9,600       2,323  

Loss on sale of assets and other

      8,576       6,940       9,464       10,985  

Deferred lease expenses – theatres (3)

      (44 )      70       (278 )      (111 ) 

Deferred lease expenses – DCIP equipment (4)

      (253 )      (232 )      (741 )      (698 ) 

Amortization of long-term prepaid rents (3)

      551       371       1,540       1,357  

Share based awards compensation expense (5)

      3,043       2,587       9,487       10,247  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA (1)

    $ 153,672     $ 184,891     $ 536,231     $ 537,933  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, other income, loss on debt amendments and refinancing, other cash distributions from equity investees, depreciation and amortization, impairment of long-lived assets, loss on sale of assets and other, changes in deferred lease expense, amortization of long-term prepaid rents and share based awards compensation expense. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. In addition, we use Adjusted EBITDA for incentive compensation purposes. Adjusted EBITDA margin represents Adjusted EBITDA divided by total revenues.
(2) Represents cash distributions received from equity investees that were recorded as a reduction of the respective investment balances.
(3) Non-cash expense included in facility lease expense.
(4) Non-cash expense included in other theatre operating expenses.
(5) Non-cash expense included in general and administrative expenses.

 

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