Cinemark Holdings, Inc. Reports a 9.8% Increase in Revenues and a 42% Increase in Net Income for the Third
Quarter of 2016
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, 2016.
Cinemark Holdings, Inc.’s total revenues for the three months ended September 30, 2016 increased 9.8% to $768.6 million from
$700.1 million for the three months ended September 30, 2015. For the three months ended September 30, 2016, admissions revenues
increased 9.4% to $472.9 million and concession revenues increased 13.6% to $261.4 million. Attendance increased 7.3% to 76.2
million patrons, concession revenues per patron increased 5.9% to $3.43 and average ticket price increased 2.0% to $6.21 for the
three months ended September 30, 2016.
Net income attributable to Cinemark Holdings, Inc. for the three months ended September 30, 2016 increased 42% to approximately
$65.7 million from $46.3 million for the three months ended September 30, 2015. Diluted earnings per share for the three months
ended September 30, 2016 increased 40% to $0.56 from $0.40 for the three months ended September 30, 2015.
Adjusted EBITDA for the three months ended September 30, 2016 increased 16% to $184.9 million from $159.1 million for the three
months ended September 30, 2015. Reconciliations of non-GAAP financial measures are provided in the financial schedules
accompanying this press release.
“The robust film environment, coupled with our focus and execution on our strategic initiatives, enabled us to deliver a 9.8%
increase in total revenues, 16% growth in Adjusted EBITDA and a 42% increase in net income,” stated Mark Zoradi, Cinemark’s CEO.
“We are pleased to see how our strategic investments and emphasis on enriching the guest experience favorably impacted our third
quarter results. We remain opportunistic regarding these endeavors with an eye toward driving long-term shareholder value.”
Cinemark Holdings, Inc.’s total revenues for the nine months ended September 30, 2016 increased 3.4% to $2,217.9 million from
$2,145.4 million for the nine months ended September 30, 2015. For the nine months ended September 30, 2016, admissions revenues
increased 2.2% to $1,364.8 million and concession revenues increased 6.9% to $752.8 million. Attendance increased 4.0% to 221.7
million patrons, concession revenues per patron increased 3.0% to $3.40 and average ticket price was $6.16 for the nine months
ended September 30, 2016.
Net income attributable to Cinemark Holdings, Inc. for the nine months ended September 30, 2016 increased 12% to $178.1 million
from $159.1 million for the nine months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was
impacted by a 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. Diluted earnings per share for the nine
months ended September 30, 2016 increased 12% to $1.53 from $1.37 for the nine months ended September 30, 2015, even with the
aforementioned loss on debt amendments and refinancing.
Adjusted EBITDA for the nine months ended September 30, 2016 increased approximately 6% to $537.9 million from $508.0 million
for the nine months ended September 30, 2015. Reconciliations of non-GAAP financial measures are provided in the financial
schedules accompanying this press release.
On September 30, 2016, the Company’s aggregate screen count was 5,865. As of September 30, 2016, the Company had signed
commitments to open 7 new theatres and 60 screens by the end of 2016 and open 16 new theatres with 147 screens subsequent to
2016.
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 522 theatres with 5,865 screens in 41 U.S.
states, Brazil, Argentina and 13 other Latin American countries as of September 30, 2016. For more information go to investors.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 24, 2016 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.
| |
| Cinemark Holdings, Inc. |
| Financial and Operating Summary |
| (unaudited, in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
2016
|
|
|
2015
|
| Statement of income data: |
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
|
$ |
472,842 |
|
|
|
$ |
432,136 |
|
|
$ |
1,364,737 |
|
|
|
$ |
1,335,761 |
|
|
Concession |
|
|
|
261,391 |
|
|
|
|
230,233 |
|
|
|
752,798 |
|
|
|
|
704,190 |
|
|
Other |
|
|
|
34,341 |
|
|
|
|
37,687 |
|
|
|
100,312 |
|
|
|
|
105,435 |
|
| Total revenues |
|
|
|
768,574 |
|
|
|
|
700,056 |
|
|
|
2,217,847 |
|
|
|
|
2,145,386 |
|
| Cost of operations |
|
|
|
|
|
|
|
|
|
|
|
|
Film rentals and advertising |
|
|
|
249,766 |
|
|
|
|
227,571 |
|
|
|
733,101 |
|
|
|
|
713,306 |
|
|
Concession supplies |
|
|
|
41,888 |
|
|
|
|
36,039 |
|
|
|
116,999 |
|
|
|
|
109,445 |
|
|
Facility lease expense |
|
|
|
82,848 |
|
|
|
|
80,604 |
|
|
|
241,904 |
|
|
|
|
242,612 |
|
|
Other theatre operating expenses |
|
|
|
179,459 |
|
|
|
|
169,940 |
|
|
|
509,339 |
|
|
|
|
491,413 |
|
|
General and administrative expenses |
|
|
|
35,290 |
|
|
|
|
39,099 |
|
|
|
109,143 |
|
|
|
|
116,301 |
|
|
Depreciation and amortization |
|
|
|
54,187 |
|
|
|
|
47,543 |
|
|
|
155,874 |
|
|
|
|
139,444 |
|
|
Impairment of long-lived assets |
|
|
|
406 |
|
|
|
|
633 |
|
|
|
2,323 |
|
|
|
|
4,955 |
|
|
(Gain) loss on sale of assets and other |
|
|
|
6,940 |
|
|
|
|
(500 |
) |
|
|
10,985 |
|
|
|
|
3,852 |
|
| Total cost of operations |
|
|
|
650,784 |
|
|
|
|
600,929 |
|
|
|
1,879,668 |
|
|
|
|
1,821,328 |
|
| Operating income |
|
|
|
117,790 |
|
|
|
|
99,127 |
|
|
|
338,179 |
|
|
|
|
324,058 |
|
|
Interest expense (1) |
|
|
|
(26,659 |
) |
|
|
|
(28,419 |
) |
|
|
(81,980 |
) |
|
|
|
(84,930 |
) |
|
Loss on debt amendments and refinancing |
|
|
|
- |
|
|
|
|
- |
|
|
|
(13,284 |
) |
|
|
|
(925 |
) |
|
Distributions from NCM |
|
|
|
1,381 |
|
|
|
|
4,601 |
|
|
|
10,117 |
|
|
|
|
13,100 |
|
|
Foreign currency exchange gain (loss) |
|
|
|
485 |
|
|
|
|
(11,935 |
) |
|
|
2,883 |
|
|
|
|
(18,702 |
) |
|
Other income |
|
|
|
14,055 |
|
|
|
|
13,436 |
|
|
|
29,627 |
|
|
|
|
27,155 |
|
| Income before income taxes |
|
|
|
107,052 |
|
|
|
|
76,810 |
|
|
|
285,542 |
|
|
|
|
259,756 |
|
| Income taxes |
|
|
|
40,926 |
|
|
|
|
30,109 |
|
|
|
106,002 |
|
|
|
|
99,263 |
|
| Net income |
|
|
|
66,126 |
|
|
|
|
46,701 |
|
|
|
179,540 |
|
|
|
|
160,493 |
|
| Less: Net income attributable to noncontrolling interests |
|
|
|
471 |
|
|
|
|
362 |
|
|
|
1,454 |
|
|
|
|
1,375 |
|
| Net income attributable to Cinemark Holdings, Inc. |
|
|
$ |
65,655 |
|
|
|
$ |
46,339 |
|
|
$ |
178,086 |
|
|
|
$ |
159,118 |
|
|
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
115,601 |
|
|
|
|
115,164 |
|
|
|
115,475 |
|
|
|
|
115,051 |
|
|
Diluted |
|
|
|
115,793 |
|
|
|
|
115,356 |
|
|
|
115,706 |
|
|
|
|
115,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
$ |
0.56 |
|
|
|
$ |
0.40 |
|
|
$ |
1.53 |
|
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
|
|
|
$ |
184,891 |
|
|
|
$ |
159,147 |
|
|
$ |
537,933 |
|
|
|
$ |
508,030 |
|
|
________________________________
|
|
|
|
|
(1) Includes amortization of debt issue costs.
|
|
(2) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted
EBITDA to net income is provided in the financial schedules accompanying this press release.
|
| |
|
|
|
|
|
|
|
|
|
|
As of |
|
|
As of |
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2016
|
|
|
2015
|
| Balance sheet data: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
527,111 |
|
|
$ |
588,539 |
| Theatre properties and equipment, net |
|
|
$ |
1,613,109 |
|
|
$ |
1,505,069 |
| Total assets |
|
|
$ |
4,176,619 |
|
|
$ |
4,126,497 |
| Long-term debt, including current portion |
|
|
$ |
1,790,793 |
|
|
$ |
1,781,335 |
| Equity |
|
|
$ |
1,233,616 |
|
|
$ |
1,110,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
| Other operating data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Attendance (patrons, in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
48.0 |
|
|
43.8 |
|
|
138.0 |
|
|
134.3 |
|
International |
|
|
28.2 |
|
|
27.2 |
|
|
83.7 |
|
|
78.9 |
|
Worldwide |
|
|
76.2 |
|
|
71.0 |
|
|
221.7 |
|
|
213.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average ticket price (in dollars): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
$ 7.39 |
|
|
$ 7.27 |
|
|
$ 7.52 |
|
|
$ 7.37 |
|
International |
|
|
$ 4.18 |
|
|
$ 4.18 |
|
|
$ 3.91 |
|
|
$ 4.38 |
|
Worldwide |
|
|
$ 6.21 |
|
|
$ 6.09 |
|
|
$ 6.16 |
|
|
$ 6.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concession revenues per patron (in dollars): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
$ 4.11 |
|
|
$ 3.85 |
|
|
$ 4.17 |
|
|
$ 3.90 |
|
International |
|
|
$ 2.27 |
|
|
$ 2.27 |
|
|
$ 2.12 |
|
|
$ 2.30 |
|
Worldwide |
|
|
$ 3.43 |
|
|
$ 3.24 |
|
|
$ 3.40 |
|
|
$ 3.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average screen count (month end average): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
4,563 |
|
|
4,493 |
|
|
4,547 |
|
|
4,496 |
|
International |
|
|
1,317 |
|
|
1,250 |
|
|
1,299 |
|
|
1,214 |
|
Worldwide |
|
|
5,880 |
|
|
5,743 |
|
|
5,846 |
|
|
5,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Segment Information
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
$ |
572,916 |
|
|
|
$ |
509,330 |
|
|
|
$ |
1,677,365 |
|
|
|
$ |
1,576,107 |
|
|
International |
|
|
|
199,476 |
|
|
|
|
194,497 |
|
|
|
|
551,212 |
|
|
|
|
580,335 |
|
|
Eliminations |
|
|
|
(3,818 |
) |
|
|
|
(3,771 |
) |
|
|
|
(10,730 |
) |
|
|
|
(11,056 |
) |
|
Total revenues |
|
|
$ |
768,574
|
|
|
|
$ |
700,056 |
|
|
|
$ |
2,217,847 |
|
|
|
$ |
2,145,386 |
|
| Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
$ |
137,540 |
|
|
|
$ |
113,059 |
|
|
|
$ |
409,018 |
|
|
|
$ |
372,079 |
|
|
International |
|
|
|
47,351 |
|
|
|
|
46,088 |
|
|
|
|
128,915 |
|
|
|
|
135,951 |
|
|
Total Adjusted EBITDA |
|
|
$ |
184,891 |
|
|
|
$ |
159,147 |
|
|
|
$ |
537,933 |
|
|
|
$ |
508,030 |
|
| Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. |
|
|
$ |
75,839 |
|
|
|
$ |
48,868 |
|
|
|
$ |
175,218 |
|
|
|
$ |
167,082 |
|
| International |
|
|
|
22,984 |
|
|
|
|
27,771 |
|
|
|
|
55,128 |
|
|
|
|
65,269 |
|
| Total capital expenditures |
|
|
$ |
98,823 |
|
|
|
$ |
76,639 |
|
|
|
$ |
230,346 |
|
|
|
$ |
232,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Reconciliation of Adjusted EBITDA |
|
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
| Net income |
|
|
$ |
66,126 |
|
|
|
$ |
46,701 |
|
|
|
$ |
179,540 |
|
|
|
$ |
160,493 |
|
|
Income taxes |
|
|
|
40,926 |
|
|
|
|
30,109 |
|
|
|
|
106,002 |
|
|
|
|
99,263 |
|
|
Interest expense |
|
|
|
26,659 |
|
|
|
|
28,419 |
|
|
|
|
81,980 |
|
|
|
|
84,930 |
|
|
Other income |
|
|
|
(14,540 |
) |
|
|
|
(1,501 |
) |
|
|
|
(32,510 |
) |
|
|
|
(8,453 |
) |
|
Loss on debt amendments and refinancing |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
13,284 |
|
|
|
|
925 |
|
|
Other cash distributions from equity investees (2) |
|
|
|
1,391 |
|
|
|
|
4,370 |
|
|
|
|
9,660 |
|
|
|
|
12,679 |
|
|
Depreciation and amortization |
|
|
|
54,187 |
|
|
|
|
47,543 |
|
|
|
|
155,874 |
|
|
|
|
139,444 |
|
|
Impairment of long-lived assets |
|
|
|
406 |
|
|
|
|
633 |
|
|
|
|
2,323 |
|
|
|
|
4,955 |
|
|
(Gain) loss on sale of assets and other |
|
|
|
6,940 |
|
|
|
|
(500 |
) |
|
|
|
10,985 |
|
|
|
|
3,852 |
|
|
Deferred lease expenses - theatres (3) |
|
|
|
70 |
|
|
|
|
(289 |
) |
|
|
|
(111 |
) |
|
|
|
(1,108 |
) |
|
Deferred lease expenses – DCIP equipment (4) |
|
|
|
(232 |
) |
|
|
|
(232 |
) |
|
|
|
(698 |
) |
|
|
|
(701 |
) |
|
Amortization of long-term prepaid rents (3) |
|
|
|
371 |
|
|
|
|
519 |
|
|
|
|
1,357 |
|
|
|
|
1,901 |
|
|
Share based awards compensation expense (5) |
|
|
|
2,587 |
|
|
|
|
3,375 |
|
|
|
|
10,247 |
|
|
|
|
9,850 |
|
| Adjusted EBITDA (1) |
|
|
$ |
184,891 |
|
|
|
$ |
159,147 |
|
|
|
$ |
537,933 |
|
|
|
$ |
508,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, (gain) 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. Adjusted EBITDA for the three and nine months ended September 30, 2015 has been
adjusted to reflect a comparable presentation.
|
|
(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.
|
|
|
|
|
Cinemark Holdings, Inc.
Financial:
Chanda Brashears, 972-665-1671
cbrashears@cinemark.com
or
Media:
James Meredith, 972-665-1060
communications@cinemark.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20161108005344/en/