Cineplex Inc. Reports Second Quarter Results

TORONTO, Aug. 2, 2017 /CNW/ - (TSX: CGX) - Cineplex Inc. ("Cineplex") today released its financial results for the three and six months ended June 30, 2017.  Unless otherwise specified, all amounts are in Canadian dollars.

Second Quarter Results

 

Year to Date Results

 

"Total revenue for the second quarter of 2017 increased 7.7% versus the prior year period to $364.1 million, primarily due to higher amusement revenue, resulting from Cineplex's continued growth and diversification," said Ellis Jacob, President and CEO, Cineplex.

Box Office revenue increased 2.4% to $170.7 million and theatre food service increased 2.7% to $99.4 million during the period with BPP of $10.36 and CPP of $6.03 both representing all-time quarterly records. Media revenue decreased 9.0% to $36.6 million, primarily due to a decline in cinema advertising and lower digital signage installation revenue. Amusement revenue of $45.7 million increased 85.9% versus the prior year period, largely due to the acquisition of Tricorp Amusements and SAW LLC which were completed in the fourth quarter of 2016, and the acquisition of Dandy Amusements acquired during this quarter.  Despite growth in these areas, declines in attendance and the delay in media spend and installations coupled with costs associated with Cineplex's ongoing diversification strategy resulted in an 11% decrease in Adjusted EBITDA to $38.1 million.

Key accomplishments during the quarter included the opening of the second location of The Rec Room in downtown Toronto at the Roundhouse; the opening of the Cineplex O.E. Smith Theatre at the IWK Health Centre in Halifax and the continued rollout of luxury recliners in select theatres across the country.  Additionally, the SCENE loyalty program reached 8.5 million members.

Subsequent to quarter end, we announced an exclusive partnership to bring global sports entertainment leader Topgolf to Canada.  The joint venture will see the opening of several locations across the country during the next few years.

KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2017

The following describes certain key business initiatives undertaken and results achieved during the second quarter of 2017 in each of Cineplex's core business areas:

FILM ENTERTAINMENT AND CONTENT

Theatre Exhibition

• Reported second quarter box office revenues of $170.7 million, an increase of $4.0 million (2.4%) from the $166.7 million reported in the prior year period.
• BPP was $10.36, an all-time quarterly record for Cineplex, and 4.8% higher than $9.89 reported in the prior year period.
• Announced two new theatre complexes in British Columbia at the Park Royal Shopping Centre and The Amazing Brentwood and a new theatre at Cineplex Cinemas East Hills in Alberta.
• Converted 33 auditoriums to recliner seating during the quarter.

Theatre Food Service

• Reported second quarter food services revenues of $99.4 million, an increase of $2.6 million or 2.7% reported in the prior year period.
• CPP in the second quarter of 2017 was $6.03, an all-time quarter record for Cineplex, $0.29 (5.1%) higher than the $5.74 reported during the prior year period.

Alternative Programming

• Alternative programming in the second quarter of 2017 included strong performances from the Metropolitan Opera: Live in HD series, international film programming, WWE Wrestlemania 33, and the live broadcast of Rosencrantz & Guildenstern Are Dead, starring Daniel Radcliffe from the National Theatre.
• Featured numerous strong performing international films, including Hindi, Mandarin and Punjabi in select markets across the country.

Digital Commerce

• Cineplex.com registered a 30% increase in visits during the second quarter of 2017 compared to the prior year period.
• Online and mobile ticketing represented 22.5% of total admissions during the second quarter.
• Monthly active users of the Cineplex store increased 72% as compared to the prior year period.
• Cineplex store registered a 30% increase in device activations over the prior year period.

MEDIA

• Reported second quarter total media revenues of $36.6 million, a decrease of $3.6 million, or 9.0% compared to the prior year period.

Cinema Media

• Reported second quarter revenues of $24.0 million, compared to $26.2 million in the prior year period, a decrease of 8.7% primarily due to a decline in onscreen advertising.

Digital Place-Based Media

• Reported second quarter revenues of $12.6 million, a decrease of $1.3 million compared to the prior year period due to lower project installation revenues partially offset by higher advertising revenue generated from an expanded client base. The deferred consideration relating to the acquisition of EK3 Technologies Inc ("EK3") was settled at $10.0 million with $9.3 million paid in the second quarter of 2017 and the remaining $0.7 million to be paid in the third quarter of 2017.  There was no impact on net income.

AMUSEMENT AND LEISURE

Amusement Solutions

• Reported second quarter revenues of $45.7 million, an increase of $21.1 million over the prior year period. The increase was primarily due to the acquisitions of Tricorp and SAW, which were acquired in the fourth quarter of 2016 and Dandy which was acquired in the second quarter of 2017.
• Acquired the assets of Dandy, a California-based leading amusement gaming machine operator with operations in western United States, for $13.7 million.

Location Based Entertainment

• The Rec Room reported second quarter food services revenues of $2.0 million and amusement revenues of $1.7 million.
• Opened the second location of The Rec Room in downtown Toronto at the iconic Roundhouse Park on June 27, 2017.
• The Rec Room at the Roundhouse features the first location of THE VOID which combines interactive sets, virtual reality, real-time effects and gear.
• Announced the opening of two new locations of The Rec Room: one in Mississauga, Ontario at Square One, and the other, the first location in British Columbia, at The Amazing Brentwood both of which are scheduled to open in 2019.

eSports

• In April 2017, Cineplex acquired the 20% non-controlling interest in WGN for $4.0 million. Cineplex now owns and operates 100% of WGN.
• In May 2017, Collegiate Starleague ("CSL"), a subsidiary of WGN hosted the 2017 North American Collegiate Grand Finals at the Scotiabank Theatre in Toronto, Ontario.
• WGN launched the Northern Fights Canadian Championship Series. The National Finals were hosted at the Scotiabank Theatre in Toronto, Ontario in June 2017.

LOYALTY

• Membership in the SCENE loyalty program increased by 0.2 million members in the period, reaching 8.5 million at June 30, 2017.

CORPORATE

• Cineplex is among the founding members of the newly created Global Cinema Federation, a worldwide group intended to represent cinema exhibition global interests. The Federation will address issues such as film theft, technology standards, theatrical release practices, international trade practices and relationship with partners in film distribution.
• During the second quarter of 2017, the Board of Directors of Cineplex (the "Board") announced a monthly dividend increase of 3.7% to $0.140 per share ($1.68 on an annual basis) up from $0.135 per Share ($1.62 on an annual basis) effective with the May 2017 dividend paid in June 2017.
• During the second quarter, Anthony Munk and Robert Steacy did not stand for re-election for the Board. Elected to the Board during the quarter were Janice Fukakusa and Nadir Mohamed.
• In partnership with the IWK Health Centre in Halifax, Cineplex opened the IWK Health Centre's O.E. Smith theatre where IWK's patients and families can enjoy movies free of charge.

OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017

Total revenues

Total revenues for the three months ended June 30, 2017 increased $26.1 million (7.7%) to $364.1 million as compared to the prior year period.  Total revenues for the six months ended June 30, 2017 increased $41.4 million (5.8%) to $758.3 million as compared to the prior year period. A discussion of the factors affecting the changes in box office, food service, media, amusement and other revenues for the period is provided below.

Non-GAAP measures discussed throughout this MD&A, including adjusted EBITDA, adjusted free cash flow, attendance, BPP, premium priced product, same store metrics, CPP, film cost percentage, food service cost percentage and concession margin per patron are defined and discussed in the non-GAAP measures section of this news release.

Box office revenues

The following table highlights the movement in box office revenues, attendance and BPP for the quarter and the year to date (in thousands of dollars, except attendance reported in thousands of patrons, and per patron amounts, unless otherwise noted):

 

 

Second Quarter

 

Box office revenues increased $4.0 million, or 2.4%, to $170.7 million during the period, compared to $166.7 million reported in the second quarter of 2016.  The increase was due to a second quarter BPP of $10.36, a $0.47 (4.8%) increase from the prior year period, which was an all-time quarterly record. The increase in BPP was due to price increases in selective markets as compared to the prior year period.

Year to Date

 

Box office revenues for the six months ended June 30, 2017 were $366.1 million, an increase of $0.7 million or 0.2% over the prior year due to the higher BPP in the current year period as compared to the 2016 period, offsetting the 3.6% decrease in attendance period over period.

Cineplex's BPP for the period increased $0.39, or 4.0%, from $9.76 in the prior year period to a record $10.15 in the current period.  This increase was due to a higher percentage of box office revenue from premium priced offerings, which accounted for 48.0% of Cineplex's box office revenues in the six months ended June 30, 2017, as compared to 46.6% in the prior year period, as well as price increases in selective markets as compared to the prior year period.

Food service revenues

The following table highlights the movement in food service revenues, attendance and CPP for the quarter and the year to date (in thousands of dollars, except attendance and same theatre attendance reported in thousands of patrons, and per patron amounts):

 

 

Second Quarter

Food service revenues are comprised primarily of concession revenues, which includes food service sales at theatre locations and food and beverage sales at The Rec Room.  Food service revenues increased $4.6 million or 4.7% as compared to the prior year period due to the increase in CPP.  Operations of The Rec Room contributed $2.0 million which, combined with the impact of the CPP increase, more than offset the impact of the 2.2% decline in attendance. Food service revenues from The Rec Room are not included in CPP calculation.

CPP increased 5.1% to $6.03, an all-time quarterly record for Cineplex. Expanded offerings outside of core food service products, including offerings at Cineplex's VIP Cinemas and Outtakes locations, have contributed to increased visitation and higher average transaction values, resulting in the higher CPP in the period.

Year to Date

Food service revenues increased $6.5 million, or 3.1% as compared to the prior year, due to the 5.0% increase in CPP and the $4.1 million contributed by The Rec Room partially offset by the 3.6% decrease in attendance.  The CPP of $5.86 in the current period is the highest CPP Cineplex has reported through the first six months of a year.

Media revenues

The following table highlights the movement in media revenues for the quarter (in thousands of dollars):

 

Second Quarter

Total media revenues decreased $3.6 million (9.0%) to $36.6 million in the second quarter of 2017 compared to the prior year period. This change was due to decreases to cinema advertising and lower project installation revenues for Digital place-based media due to the timing of project rollouts.

Year to Date

Total media revenues decreased $2.8 million in the six months ended June 30, 2017 as compared to the prior year period.  The decrease resulted from the $1.8 million decrease in cinema media due to lower pre-show advertising and a $1.0 million decrease in digital place-based media revenues due to to lower project installation revenue which was partially offset by growth in digital advertising, software and network management revenues from increased active locations.

Amusement Revenues

The following table highlights the movement in amusement revenues for the quarter (in thousands of dollars):

 

Second Quarter

Amusement revenues increased 85.9%, or  $21.1 million, to $45.7 million in the second quarter of 2017 compared to the prior year period primarily due to the acquisitions of Tricorp and SAW in the fourth quarter of 2016 and Dandy in the current period.

Year to Date

For the year to date period, amusement revenues increased 72.0% or  $36.5 million, to $87.1 million  primarily due to the acquisitions of Tricorp and SAW in the fourth quarter of 2016 and Dandy in the current period.

Other revenues

The following table highlights the other revenues which includes revenues from the Cineplex Store, promotional activities, screenings, private parties, corporate events, breakage on gift card sales, and revenues from management fees for the quarter and the year to date (in thousands of dollars):

 

Film cost

The following table highlights the movement in film cost and the film cost percentage for the quarter and the year to date  (in thousands of dollars, except film cost percentage):

 

Second Quarter

Film cost varies primarily with box office revenues, and can vary from quarter to quarter usually based on the relative strength of the titles exhibited during the period. This is due to film cost terms varying by title and distributor.  Film cost percentage during the second quarter of 2017 was 53.6%, a 0.8% decrease from the prior year period.

Year to Date

The year to date decrease in film cost expense was due to the lower film costs partially offset by higher box office revenues in the current period compared to the prior year period. The decrease in film cost percentage is attributable to the reduced concentration of box office revenues from a few titles,  with the top five films in the current period accounting for only 31.4% of box office revenues in the period (2016 period - 35.0%). Top films tend to have higher settlement rates than the other films in the slate due to their strong performance.

Cost of food service

The following table highlights the movement in cost of food service and food service cost as a percentage of food service revenues ("concession cost percentage") for the quarter and the year to date (in thousands of dollars, except percentages and margins per patron):

 

Second Quarter

Cost of food service at the theatres varies primarily with theatre attendance as well as the quantity and mix of offerings sold.  Cost of food service at The Rec Room varies primarily with the volume of guests who visit the location as well as the quantity and mix between food and beverage items sold.

The increase in the theatre cost of food service as compared to the prior year period was primarily due to the higher food service revenues. The increase in the theatre concession cost percentage is due in part to the mix of food offerings.  The addition of  VIP theatres since the prior year period has contributed to the changing mix including more items outside of the core concession offerings, which tend to have higher costs.

The theatre concession margin per patron increased 4.5% from $4.46 in the second quarter of 2016 to $4.66 in the same period in 2017, reflecting the impact of the higher CPP during the period partially offset by the impact of the higher concession cost percentage.

Cost of food service at The Rec Room reflects the costs incurred during the period, which opened in the third quarter of 2016, and therefore does not have a comparator.

Year to Date

The increase in the theatre cost of food service as compared to the prior year period was due to the higher theatre food service revenues.  The theatre concession margin per patron increased from $4.32 in the prior year period to $4.54 in the current period, reflecting the impact of the higher CPP in the current period.

Despite the 10% discount offered to SCENE members and SCENE points offered on select offerings, which contributes to a higher concession cost percentage, Cineplex believes the SCENE program drives incremental attendance and purchase incidence which increases food service revenues and CPP.

Depreciation and amortization

The following table highlights the movement in depreciation and amortization expenses during the quarter and the year to date (in thousands of dollars):

 

The quarterly and year to date increase in depreciation of property, equipment and leaseholds of $3.2 million and year to date increase of $5.7 million was primarily due to investments in amusement and leisure, including The Rec Room, and the acquisitions of Tricorp, SAW and Dandy.

Loss on disposal of assets

The following table shows the movement in the loss on disposal of assets during the quarter and the year to date (in thousands of dollars):

 

Other costs

Other costs include three main sub-categories of expenses; theatre occupancy expenses, which capture the rent and associated occupancy costs for Cineplex's theatre operations; other operating expenses, which include the costs related to running Cineplex's film entertainment and content, media, amusement and leisure as well as Cineplex's ancillary businesses; and general and administrative expenses, which includes costs related to managing Cineplex's operations, including head office expenses.  Please see the discussions below for more details on these categories. The following table highlights the movement in other costs for the quarter and the year to date (in thousands of dollars):

 

Theatre occupancy expenses

The following table highlights the movement in theatre occupancy expenses for the quarter and the year to date (in thousands of dollars):

 

 

Second Quarter

Theatre occupancy expenses increased $2.0 million during the second quarter of 2017 compared to the prior year period.  This increase was primarily due to the impact of one time charges of $1.5 million in addition to the impact of new and acquired theatres net of disposed theatres, rent increases and higher other expenses (including real estate taxes).

Year to Date

The increase in theatre occupancy expenses of $1.2 million for the 2017 period compared to the prior year was due to the impact of one time charges of $1.0 million in addition to the impact of new and acquired theatres, net of disposed theatres as compared to the prior year period.

Other operating expenses 

The following table highlights the movement in other operating expenses during the quarter and the year to date (in thousands of dollars):

 

 

Second Quarter

Other operating expenses during the second quarter of 2017 increased $24.5 million or 21.4% compared to the prior year period. The increase is primarily due to higher amusement and leisure costs, including higher P1AG costs due primarily to the acquisitions of Tricorp and SAW in the fourth quarter of 2016 and Dandy in the current quarter.  Excluding P1AG,  the increase to other operating expenses primarily included Media costs ($1.5 million) which increased due to payments to third party networks, and increased payroll and operating expenses for The Rec Room which is not included in the prior year comparative ($2.8 million).  These were partially offset by a decrease to Marketing costs ($1.5 million) due to the timing of expenditures.

Year to Date

For the six months ended June 30, 2017, other operating expenses increased $38.9 million or 16.8% compared to the prior year period. The increase is primarily due to higher amusement and leisure costs, including higher P1AG costs due primarily to the acquisitions of Tricorp and SAW in the fourth quarter of 2016 and Dandy this quarter. Excluding P1AG, other operating expenses increased primarily due to operating expenses for The Rec Room which was not included in the prior year comparatives ($5.7 million) and  increases to Media cost due to high payments to third party networks which were partially offset by a decrease to Marketing costs ($3.3 million).

General and administrative expenses

The following table highlights the movement in general and administrative ("G&A") expenses during the quarter and the year to date, including Share based compensation costs, and G&A net of these costs (in thousands of dollars):

 

Second Quarter

G&A expenses increased $1.6 million during the second quarter of 2017 compared to the prior year period due to higher payroll expenses.

Year to Date

G&A expenses for the year to date period increased $4.7 million compared to the prior year period primarily due to higher head office payroll and including non-recurring $1.6 million past-service costs associated with the supplemental executive retirement plan.

EARNINGS BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") (see non-GAAP measures section of this news release)

The following table presents EBITDA and adjusted EBITDA for the three and six months ended June 30, 2017 as compared to the prior year periods (in thousands of dollars, except adjusted EBITDA margin):

 

Adjusted EBITDA for the second quarter of 2017 decreased $4.7 million, or 11.0%, as compared to the prior year period. Adjusted EBITDA margin, calculated as adjusted EBITDA divided by total revenues, was 10.5% in the current period. The decrease as compared to the prior year period despite the revenue growth, was due to higher costs attributable to Cineplex's emerging businesses as it continues to execute its diversification strategy.

Adjusted EBITDA for the six months ended June 30, 2017 decreased $2.4 million, or 2.4%, as compared to the prior year period.  The decrease was due to Cineplex's continued higher costs attributable to Cineplex's emerging businesses as it continues to execute its diversification strategy.  Adjusted EBITDA margin for the period was 12.9%, an decrease of 1.0% from 13.9% in the prior year period.

ADJUSTED FREE CASH FLOW (see non-GAAP measures section of this news release)

For the second quarter of 2017, adjusted free cash flow per common share of Cineplex was $0.28 as compared to $0.40 in the prior year period.  The declared dividends per common share of Cineplex were $0.42 in the second quarter of 2017 and $0.40 in the prior year period.  During the 12 months ended June 30, 2017, Cineplex generated adjusted free cash flow per Share of $2.33, compared to $2.50 per Share in the 12 months ended June 30, 2016.  Cineplex declared dividends per Share of $1.63 and $1.57, respectively, in each period.  The payout ratios for these periods were approximately 70.1% and 62.7%, respectively.

FINANCIAL STATEMENT PRESENTATION

Cineplex has reclassified box office, amusement and other revenues to reflect the growth of its Amusement and Leisure business and to enhance comparability with exhibition peers in the United States. Certain revenues from Cineplex's enhanced guest experience initiatives were previously included in other revenues and are now included with box office revenues. This presentation is consistent with other exhibitors and better reflects how Cineplex management measures and operates the business. This affects the BPP, film cost percentage and percentage of premium priced products due to the increase in box office revenues reported. Prior period financial statement figures have been reclassified to conform to current period presentation.  The following table presents the reclassified box office revenues for the three and six months ended June 30, 2016 (in thousands of dollars):

 

Other revenues also previously contained all amusement revenue. Due to the growth of Cineplex's amusement  solutions and location based entertainment businesses, these revenues are now separately reported as amusement revenues. The following table presents the reclassified other revenues for the three and six months ended June 30, 2016 (in thousands of dollars):

 

Cineplex had previously included foreign exchange gain and losses in interest expense. As of January 1, 2017, the foreign exchange gains and losses are reported separately on the statements of operations. The prior year period figures have been reclassified to conform to current period presentation. The following table reflects the changes to the interest expense due to the change in presentation for the three and six months ended June 30, 2016 (in thousands of dollars):

 

NON-GAAP FINANCIAL MEASURES

EBITDA and Adjusted Free Cash Flow
EBITDA and adjusted free cash flow are not measures recognized by GAAP and do not have standardized meanings in accordance with such principles.  Therefore, EBITDA and adjusted free cash flow may not be comparable to similar measures presented by other issuers.  Management uses adjusted EBITDA and adjusted free cash flow to evaluate performance primarily because of the significant effect certain unusual or non-recurring charges and other items have on EBITDA from period to period.

EBITDA is calculated by adding back to net income, income tax expense, depreciation and amortization expense, and interest income.  Adjusted EBITDA is calculated by adjusting EBITDA for the change in fair value of financial instrument, losses on disposal of assets, foreign exchange (loss) gain, the equity income of CDCP, the non-controlling interests' share of adjusted EBITDA of WGN and Brady Starburst LLC, and depreciation, amortization, interest and taxes of Cineplex's other joint ventures.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by total revenues.

Adjusted free cash flow is a non-GAAP measure generally used by Canadian corporations, as an indicator of financial performance and it should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP.

For a detailed reconciliation of net income to EBITDA and adjusted EBITDA and from cash provided by operating activities to adjusted free cash flow, please refer to Cineplex's management's discussion and analysis filed on www.sedar.com.

Earnings per Share Metrics
The six months ended June 30, 2017 include the gain associated with the change in fair value of financial instrument relating to the WGN put option. Cineplex has presented basic and diluted earnings per share net of this item to provide a more comparable earnings per share metric between the current periods and prior year periods.  In the non-GAAP measure, earnings is defined as net income excluding the change in fair value of financial instrument.

Per Patron Revenue Metrics
Cineplex reviews per patron metrics as they relate to box office revenue and theatre food service revenue such as BPP, CPP, BPP excluding premium priced product, and concession margin per patron, as these are key measures used by investors to value and assess Cineplex's performance, and are widely used in the theatre exhibition industry.  Management of Cineplex defines these metrics as follows:

Attendance: Attendance is calculated as the total number of paying patrons that frequent Cineplex's theatres during the period.

BPP: Calculated as total box office revenues divided by total paid attendance for the period.

BPP excluding premium priced product: Calculated as total box office revenues for the period, less box office revenues from 3D, 4DX, UltraAVX, VIP and IMAX product; divided by total paid attendance for the period, less paid attendance for 3D, 4DX, UltraAVX, VIP and IMAX product.

CPP: Calculated as total theatre food service revenues divided by total paid attendance for the period.

Premium priced product: Defined as 3D, 4DX, UltraAVX, IMAX and VIP film product.

Theatre concession margin per patron: Calculated as total food service revenues less total food service cost, divided by attendance for the period.

Same Theatre Analysis
Cineplex reviews and reports same theatre metrics relating to box office revenues, theatre food service revenues, theatre rent expense and theatre payroll expense, as these measures are widely used in the theatre exhibition industry as well as other retail industries.

Same theatre metrics are calculated by removing the results for all theatres that have been opened, acquired, closed or otherwise disposed of subsequent to the start of the prior year comparative period.  For the three months ended June 30, 2017 the impact of the three locations that have been opened or acquired and two locations that have been closed have been excluded, resulting in 159 theatres being included in the same theatre metrics.  For the six months ended June 30, 2017 the impact of the four locations that have been opened or acquired and the two locations that have been closed have been excluded, resulting in 158 theatres being included in the same theatre metrics.

Cost of sales percentages
Cineplex reviews and reports cost of sales percentages for its two largest revenue sources, box office revenues and theatre food service revenues as these measures are widely used in the theatre exhibition industry.  These measures are reported as film cost percentage and concession cost percentage, respectively, and are calculated as follows:

Film cost percentage: Calculated as total film cost expense divided by total box office revenues for the period.

Theatre concession cost percentage: Calculated as total theatre food service costs divided by total theatre food service revenues for the period.

Certain information included in this news release contains forward-looking statements within the meaning of applicable securities laws.  These forward-looking statements include, among others, statements with respect to Cineplex's objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to Cineplex's beliefs, plans, objectives, expectations, anticipations, estimates and intentions.  The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"), Cineplex's management's discussion and analysis ("MD&A") and in this news release.  Those risks and uncertainties, both general and specific, give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Cineplex cautions readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond Cineplex's control, could cause actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, risks generally encountered in the relevant industry, competition, customer, legal, taxation and accounting matters.

The foregoing list of factors that may affect future results is not exhaustive. When reviewing Cineplex's forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risks and Uncertainties" section of Cineplex's MD&A.

Cineplex does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable Canadian securities law. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. All forward-looking statements in this news release are made as of the date hereof and are qualified by these cautionary statements. Additional information, including Cineplex's AIF and MD&A, can be found on SEDAR at www.sedar.com.

About Cineplex
A leading entertainment and media company, Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. As Canada's largest and most innovative film exhibitor, Cineplex welcomes 75 million guests annually through its circuit of 164 theatres across the country. Cineplex also operates successful businesses in digital commerce (CineplexStore.com), food service, alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group).  It also operates a location based entertainment business through Canada's newest destination for 'Eats & Entertainment' (The Rec Room), and an online eSports platform for competitive and passionate gamers (WorldGaming.com).  Additionally, Cineplex is a joint venture partner in SCENE, Canada's largest entertainment loyalty program.

Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 13,000 people in its offices across Canada and the United States.  To learn more visit www.Cineplex.com or download the Cineplex App. More information is available at Cineplex.com.  Further information can be found in the disclosure documents filed by Cineplex with the securities regulatory authorities, available at www.sedar.com.

You are cordially invited to participate in a teleconference call with the management of Cineplex (TSX: CGX) to review our quarterly results.  Ellis Jacob, President and Chief Executive Officer, Gord Nelson, Chief Financial Officer and Pat Marshall, Investor Relations Officer will host the call.  The teleconference call is scheduled for:

Wednesday, August 2, 2017
10:00 a.m. Eastern Daylight Time

In order to participate in the conference call, please dial 416-849-1847 or outside Toronto and from the U.S. dial 1-800-274-0251 at least five to ten minutes prior to 10:00 a.m. EDT. Please quote the conference confirmation code 9252966 to access the call.

If you cannot participate in a live mode, a replay will be available. Please dial 647-436-0148 or outside Toronto and from the U.S. 1-888-203-1112. The replay passcode is 236679.

The replay will begin at 1:00 pm EDT on Wednesday August 2, 2017, and end at 1:00 pm EDT on Wednesday August 9, 2017.

Note that media will be participating in the call in listen-only mode.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE Cineplex

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