| SEGMENTS |
The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report asset information by segment because that information is not used to evaluate Company performance or allocate resources between segments.
Below is a breakdown of select financial information by reportable operating segment:
|
|
|
Year Ended December 31, |
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
2,551,719 |
|
|
$ |
2,594,246 |
|
|
$ |
559,184 |
|
|
International |
|
|
682,778 |
|
|
|
702,196 |
|
|
|
129,401 |
|
|
Eliminations |
|
|
(12,762 |
) |
|
|
(13,343 |
) |
|
|
(2,275 |
) |
|
Total revenues |
|
$ |
3,221,735 |
|
|
$ |
3,283,099 |
|
|
$ |
686,310 |
|
|
Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
648,576 |
|
|
$ |
615,161 |
|
|
$ |
(226,981 |
) |
|
International |
|
|
132,941 |
|
|
|
129,884 |
|
|
|
(49,899 |
) |
|
Total Adjusted EBITDA |
|
$ |
781,517 |
|
|
$ |
745,045 |
|
|
$ |
(276,880 |
) |
|
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
270,870 |
|
|
$ |
230,561 |
|
|
$ |
64,026 |
|
|
International |
|
|
75,203 |
|
|
|
73,066 |
|
|
|
19,904 |
|
|
Total capital expenditures |
|
$ |
346,073 |
|
|
$ |
303,627 |
|
|
$ |
83,930 |
|
|
|
(1) |
Distributions from equity investees are reported entirely within the U.S. operating segment. |
The following table sets forth a reconciliation of net income to Adjusted EBITDA:
|
|
|
Year Ended December 31, |
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
|
Net income (loss) |
|
$ |
215,305 |
|
|
$ |
193,848 |
|
|
$ |
(617,948 |
) |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
95,429 |
|
|
|
79,912 |
|
|
|
(309,376 |
) |
|
Interest expense (1) |
|
|
109,994 |
|
|
|
99,941 |
|
|
|
129,871 |
|
|
Loss on debt amendments and refinancing |
|
|
1,484 |
|
|
|
— |
|
|
|
— |
|
|
Other income (2) |
|
|
(18,472 |
) |
|
|
(22,441 |
) |
|
|
62,369 |
|
|
Distributions from DCIP (3) |
|
|
5,799 |
|
|
|
23,696 |
|
|
|
10,383 |
|
|
Other cash distributions from equity investees (4) |
|
|
24,344 |
|
|
|
29,670 |
|
|
|
15,047 |
|
|
Non-cash distributions from other equity investee (5) |
|
|
— |
|
|
|
— |
|
|
|
(12,915 |
) |
|
Depreciation and amortization |
|
|
261,162 |
|
|
|
261,155 |
|
|
|
259,776 |
|
|
Impairment of long-lived assets and investments |
|
|
32,372 |
|
|
|
57,001 |
|
|
|
152,706 |
|
|
(Gain) loss on disposal of assets and other |
|
|
38,702 |
|
|
|
12,008 |
|
|
|
(8,923 |
) |
|
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
20,369 |
|
|
Non-cash rent expense |
|
|
— |
|
|
|
(4,360 |
) |
|
|
2,357 |
|
|
Deferred lease expenses |
|
|
(1,320 |
) |
|
|
— |
|
|
|
— |
|
|
Amortization of long-term prepaid rents |
|
|
2,382 |
|
|
|
— |
|
|
|
— |
|
|
Share based awards compensation expense |
|
|
14,336 |
|
|
|
14,615 |
|
|
|
19,404 |
|
|
Adjusted EBITDA |
|
$ |
781,517 |
|
|
$ |
745,045 |
|
|
$ |
(276,880 |
) |
|
|
(1) |
Includes amortization of debt issue costs. |
|
|
(2) |
Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM. |
|
|
(3) |
See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 9. These distributions are reported entirely within the U.S. operating segment. |
|
|
(4) |
Reflects cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 8 and 9). These distributions are reported entirely within the U.S. operating segment. |
|
|
(5) |
Reflects non-cash distribution of projectors from DCIP (see Note 9). These distributions are reported entirely within the U.S. operating segment. |
Financial Information About Geographic Area
Below is a breakdown of select financial information by geographic area:
|
|
|
Year Ended December 31, |
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
2,551,719 |
|
|
$ |
2,594,246 |
|
|
$ |
559,184 |
|
|
Brazil |
|
|
283,009 |
|
|
|
302,074 |
|
|
|
59,321 |
|
|
Other international countries |
|
|
399,769 |
|
|
|
400,122 |
|
|
|
70,080 |
|
|
Eliminations |
|
|
(12,762 |
) |
|
|
(13,343 |
) |
|
|
(2,275 |
) |
|
Total |
|
$ |
3,221,735 |
|
|
$ |
3,283,099 |
|
|
$ |
686,310 |
|
|
|
|
December 31, 2019 |
|
|
December 31, 2020 |
|
|
Theatre Properties and Equipment-net |
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1,479,603 |
|
|
$ |
1,392,780 |
|
|
Brazil |
|
|
140,570 |
|
|
|
72,080 |
|
|
Other international countries |
|
|
212,960 |
|
|
|
150,202 |
|
|
Total |
|
$ |
1,735,247 |
|
|
$ |
1,615,062 |
|
|