Cinemark Holdings, Inc. Reports Record Revenues, Net Income and Adjusted EBITDA for the First Quarter of
2017
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the
three months ended March 31, 2017.
Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2017 increased 10.6% to $779.6 million from $704.9
million for the three months ended March 31, 2016. Admissions revenues increased 9.3% and concession revenues increased 12.8%. For
the three months ended March 31, 2017, attendance increased 2.5%, the average ticket price increased 6.7% to $6.41 and concession
revenues per patron increased 10.1% to $3.61.
Net income attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2017 increased 36.2% to $79.7 million
compared to $58.5 million for the three months ended March 31, 2016. Diluted earnings per share for the three months ended March
31, 2017 was $0.68 compared to $0.50 for the three months ended March 31, 2016.
Adjusted EBITDA for the three months ended March 31, 2017 increased 14.7% to $211.9 million from $184.6 million for the three
months ended March 31, 2016. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying
this press release.
“I am delighted to report another record-breaking quarter for Cinemark’s worldwide operations,” stated Mark Zoradi, Cinemark’s
Chief Executive Officer. “This marks our 4th consecutive year of first-quarter records. We were able to leverage the strength in
our attendance of nearly 75 million guests to generate first-quarter records in total revenues, net income, Adjusted EBITDA and
earnings per share. We are thrilled to have kicked-off the year on such a high note and remain enthusiastic about the upcoming film
slate, as well as the execution of our strategic initiatives.”
As of March 31, 2017, Cinemark operated 525 theatres with 5,894 screens and had commitments to open seven new theatres with 63
screens during the remainder of 2017 and an additional 12 new theatres with 106 screens subsequent to 2017.
Conference Call/Webcast – Today at 8:30 AM 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 525 theatres with 5,894 screens in 41 U.S.
states, Brazil, Argentina and 13 other Latin American countries as of March 31, 2017. 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 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.
| |
| |
|
Cinemark Holdings, Inc.
|
|
Financial and Operating Summary
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
Statement of income data:
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
| Admissions |
|
|
$ |
476,469 |
|
|
|
$ |
435,820 |
|
| Concession |
|
|
|
268,224 |
|
|
|
|
237,815 |
|
| Other |
|
|
|
34,917 |
|
|
|
|
31,234 |
|
| Total revenues |
|
|
|
779,610 |
|
|
|
|
704,869 |
|
|
Cost of operations
|
|
|
|
|
|
|
| Film rentals and advertising |
|
|
|
52,818 |
|
|
|
|
232,914 |
|
| Concession supplies |
|
|
|
42,100 |
|
|
|
|
35,903 |
|
| Facility lease expense |
|
|
|
84,262 |
|
|
|
|
78,804 |
|
| Other theatre operating expenses |
|
|
|
172,558 |
|
|
|
|
156,513 |
|
|
General and administrative expenses
|
|
|
|
38,216
|
|
|
|
|
37,866 |
|
| Depreciation and amortization |
|
|
|
57,356 |
|
|
|
|
49,329 |
|
| Impairment of long-lived assets |
|
|
|
273 |
|
|
|
|
492 |
|
|
(Gain) loss on sale of assets and other
|
|
|
|
834
|
|
|
|
|
(1,779 |
) |
|
Total cost of operations
|
|
|
|
648,417 |
|
|
|
|
590,042 |
|
| Operating income |
|
|
|
131,193 |
|
|
|
|
114,827 |
|
|
Interest expense (1)
|
|
|
|
(26,369 |
) |
|
|
|
(28,059 |
) |
| Loss on early retirement of debt |
|
|
|
-
|
|
|
|
|
(13,186 |
) |
| Distributions from NCM |
|
|
|
6,788 |
|
|
|
|
8,543 |
|
|
Foreign currency exchange gain
|
|
|
|
1,589 |
|
|
|
|
1,886 |
|
| Other income |
|
|
|
11,393 |
|
|
|
|
8,494 |
|
| Income before income taxes |
|
|
|
124,594 |
|
|
|
|
92,505 |
|
| Income taxes |
|
|
|
44,400 |
|
|
|
|
33,459 |
|
| Net income |
|
|
$ |
80,194 |
|
|
|
$ |
59,046 |
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
466
|
|
|
|
|
521 |
|
|
Net income attributable to Cinemark Holdings, Inc.
|
|
|
$
|
79,728
|
|
|
|
$ |
58,525 |
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
|
|
|
|
|
|
|
| Basic |
|
|
$ |
0.68 |
|
|
|
$ |
0.50 |
|
| Diluted |
|
|
$ |
0.68 |
|
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
115,915
|
|
|
|
|
115,527 |
|
|
|
|
|
|
|
|
|
Other financial data:
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
|
|
|
$ |
211,880 |
|
|
|
$ |
184,647 |
|
| ________________________________ |
| |
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
As of |
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
| Balance sheet data: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
584,318 |
|
|
$ |
561,235 |
| Theatre properties and equipment, net |
|
|
$ |
1,729,236 |
|
|
$ |
1,704,536 |
| Total assets |
|
|
$ |
4,383,326 |
|
|
$ |
4,306,633 |
| Long-term debt, including current portion |
|
|
$ |
1,789,621 |
|
|
$ |
1,788,112 |
| Total equity |
|
|
$ |
1,333,034 |
|
|
$ |
1,272,960 |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
March 31, |
|
|
|
2017 |
|
|
2016 |
| Other operating data: |
|
|
|
|
|
|
| Attendance (patrons, in millions): |
|
|
|
|
|
|
| Domestic |
|
|
|
46.5 |
|
|
|
44.5 |
| International |
|
|
|
27.8 |
|
|
|
28.0 |
| Worldwide |
|
|
|
74.3 |
|
|
|
72.5 |
|
|
|
|
|
|
|
| Average ticket price (in dollars) (1) : |
|
|
|
|
|
|
| Domestic |
|
|
$ |
7.66 |
|
|
$ |
7.58 |
| International |
|
|
$ |
4.33 |
|
|
$ |
3.51 |
| Worldwide |
|
|
$ |
6.41 |
|
|
$ |
6.01 |
|
|
|
|
|
|
|
| Concession revenues per patron (in dollars) (1)
: |
|
|
|
|
|
|
| Domestic |
|
|
$ |
4.37 |
|
|
$ |
4.13 |
| International |
|
|
$ |
2.33 |
|
|
$ |
1.92 |
| Worldwide |
|
|
$ |
3.61 |
|
|
$ |
3.28 |
|
|
|
|
|
|
|
| Average screen count (month end average): |
|
|
|
|
|
|
| Domestic (2) |
|
|
|
4,550 |
|
|
|
4,522 |
| International |
|
|
|
1,348 |
|
|
|
1,283 |
| Worldwide |
|
|
|
5,898 |
|
|
|
5,805 |
| |
| |
|
Segment Information (1)
|
|
(unaudited, in thousands)
|
| |
|
|
|
Three months ended |
|
|
|
March 31, |
|
|
|
|
2017 |
|
|
|
|
2016 |
|
| Revenues |
|
|
|
|
|
|
| U.S. |
|
|
$ |
581,209 |
|
|
|
$ |
543,915 |
|
| International |
|
|
|
202,068 |
|
|
|
|
164,175 |
|
| Eliminations |
|
|
|
(3,667 |
) |
|
|
|
(3,221 |
) |
| Total revenues |
|
|
$ |
779,610 |
|
|
|
$ |
704,869 |
|
| Adjusted EBITDA |
|
|
|
|
|
|
| U.S. |
|
|
$ |
164,654 |
|
|
|
$ |
143,633 |
|
| International |
|
|
|
47,226 |
|
|
|
|
41,014 |
|
| Total Adjusted EBITDA |
|
|
$ |
211,880 |
|
|
|
$ |
184,647 |
|
| Capital expenditures |
|
|
|
|
|
|
| U.S. |
|
|
$ |
78,817 |
|
|
|
$ |
41,198 |
|
| International |
|
|
|
12,370 |
|
|
|
|
6,547 |
|
| Total capital expenditures |
|
|
$ |
91,187 |
|
|
|
$ |
47,745 |
|
|
(1)
|
|
For additional segment results and discussion, including a presentation of results
for our international segment in constant currency, see the “Results of Operations” section in the Company’s Quarterly Report
on Form 10-Q filed May 3, 2017. |
|
(2)
|
|
Average domestic screens in operation, net of average screens closed for renovations,
were 4,444 and 4,485 screens for the three months ended March 31, 2017 and March 31, 2016, respectively. |
| |
| |
| Reconciliation of Net Income to Adjusted EBITDA |
| (unaudited, in thousands) |
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
|
|
|
2017 |
|
|
|
|
2016 |
|
| Net income |
|
|
$ |
80,194 |
|
|
|
$ |
59,046 |
|
| Income taxes |
|
|
|
44,400 |
|
|
|
|
33,459 |
|
| Interest expense |
|
|
|
26,369 |
|
|
|
|
28,059 |
|
| Other income |
|
|
|
(12,982 |
) |
|
|
|
(10,380 |
) |
| Loss on early retirement of debt |
|
|
|
— |
|
|
|
|
13,186 |
|
| Other cash distributions from equity investees (2) |
|
|
|
12,049 |
|
|
|
|
8,086 |
|
| Depreciation and amortization |
|
|
|
57,356 |
|
|
|
|
49,329 |
|
| Impairment of long-lived assets |
|
|
|
273 |
|
|
|
|
492 |
|
| (Gain) loss on sale of assets and other |
|
|
|
834 |
|
|
|
|
(1,779 |
) |
| Deferred lease expenses - theatres (3) |
|
|
|
(114 |
) |
|
|
|
(208 |
) |
| Deferred lease expenses – DCIP equipment (4) |
|
|
|
(233 |
) |
|
|
|
(232 |
) |
| Amortization of long-term prepaid rents (3) |
|
|
|
493 |
|
|
|
|
471 |
|
| Share based awards compensation expense (5) |
|
|
|
3,241 |
|
|
|
|
5,118 |
|
| Adjusted EBITDA (1) |
|
|
$ |
211,880 |
|
|
|
$ |
184,647 |
|
|
(1)
|
|
Adjusted EBITDA as calculated in the chart above represents net income before income
taxes, interest expense, other income, loss on early retirement of debt, 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. |
|
(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 Contact :
Chanda Brashears, 972-665-1671
cbrashears@cinemark.com
or
Media Contact:
James Meredith, 972-665-1060
communications@cinemark.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503005320/en/