Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Cinemark Holdings, Inc. Reports Results for the Second Quarter Of 2021

CNK

Delivered Substantial Reduction in Quarterly Net Loss and Significant Improvement in Cash Flows from Operations

Domestic Segment Generated Positive Adjusted EBITDA for First Time Since COVID Outbreak

Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and six months ended June 30, 2021. As of June 30, 2021, the Company had reopened all 323 of its domestic theatres and 152 of its 198 international theatres, showing primarily new releases during reduced operating hours.

Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2021 were $294.7 million compared to $9.0 million for the three months ended June 30, 2020. As a reminder, the Company’s theatres were closed for a majority of the three months ended June 30, 2020. For the three months ended June 30, 2021, admissions revenues were $153.5 million and concession revenues were $109.8 million. For the three months ended June 30, 2021, attendance was 19.1 million patrons, average ticket price was $8.04 and concession revenues per patron were $5.75.

Net loss attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2021 was $142.5 million compared to $170.4 million for the three months ended June 30, 2020. Diluted loss per share for the three months ended June 30, 2021 was $1.19 compared to $1.45 for the three months ended June 30, 2020.

Adjusted EBITDA for the three months ended June 30, 2021 was $(11.8) million compared to $(117.6) million for the three months ended June 30, 2020. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“I’m pleased to report that the second quarter recovery of our industry and business progressed at a faster rate than we expected with the North American industry box office more than tripling first quarter results,” stated Mark Zoradi, Cinemark CEO. “For Cinemark, the second quarter improved so materially that we were able to substantially reduce our net loss during the quarter and our domestic operations delivered positive Adjusted EBITDA for the first time since our theaters were forced to temporarily shut down last year.”

Mr. Zoradi continued, “While the recovery of Latin America continues to lag the U.S. by two to three months driven by the status of the virus, all data points and financial metrics are trending in the right direction. We remain confident in the global resurgence of theatrical exhibition as COVID-19 is contained. We have already witnessed this phenomenon in various parts of the world and we have now experienced it firsthand with North America’s second quarter box office results.”

Cinemark Holdings, Inc.’s total revenues for the six months ended June 30, 2021 were $409.0 million compared to $552.6 million for the six months ended June 30, 2020. For the six months ended June 30, 2021, admissions revenues were $209.6 million and concession revenues were $149.3 million. For the six months ended June 30, 2021, attendance was 26.8 million patrons, average ticket price was $7.81 and concession revenues per patron were $5.56. For the six months ended June 30, 2020, attendance was 45.8 million patrons, average ticket price was $6.39 and concession revenues per patron were $4.16.

Net loss attributable to Cinemark Holdings, Inc. for the six months ended June 30, 2021 was $350.7 million compared to $230.0 million for the six months ended June 30, 2020. Diluted loss per share for the six months ended June 30, 2021 was $2.94 compared to $1.96 for the six months ended June 30, 2020.

Adjusted EBITDA for the six months ended June 30, 2021 was $(103.8) million compared to $(51.4) million for the six months ended June 30, 2020. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of June 30, 2021, the Company’s aggregate screen count was 5,864 and the Company had commitments to open five new theatres and 66 screens during the remainder of 2021 and twelve new theatres and 109 screens subsequent to 2021.

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 https://investors.cinemark.com. A replay will be available following the call and archived for a limited time.

About Cinemark Holdings, Inc.

Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theatre companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates 521 theatres with 5,864 screens in 42 states domestically and 15 countries throughout South and Central America. Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD - the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://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, including, among others, the impacts of COVID-19. Such risks and uncertainties 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 26, 2021 and the Current Report on Form 8-K filed March 4, 2021. 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, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Statement of income data:

Revenues

Admissions

$

153,479

$

37

$

209,600

$

292,499

Concession

109,814

124

149,302

190,480

Other

31,359

8,813

50,111

69,611

Total revenues

294,652

8,974

409,013

552,590

Cost of operations

Film rentals and advertising

76,587

388

99,792

157,005

Concession supplies

18,847

2,379

25,987

37,191

Salaries and wages

50,407

8,864

81,573

96,408

Facility lease expense

67,213

65,202

132,042

147,443

Utilities and other

61,185

34,871

110,329

135,394

General and administrative expenses

37,332

28,001

73,190

69,019

Depreciation and amortization

66,920

63,581

135,080

128,837

Impairment of long-lived assets

16,619

Restructuring costs

(740

)

19,538

(948

)

19,538

Loss on disposal of assets and other

2,358

425

6,863

2,330

Total cost of operations

380,109

223,249

663,908

809,784

Operating loss

(85,457

)

(214,275

)

(254,895

)

(257,194

)

Interest expense

(37,034

)

(31,041

)

(73,587

)

(55,707

)

Interest income

3,828

803

4,474

2,887

Loss on extinguishment of debt

(3,924

)

(6,527

)

Foreign currency exchange gain (loss)

2,327

916

(647

)

(3,932

)

Distributions from NCM

690

77

5,914

Interest expense - NCM

(5,962

)

(5,934

)

(11,797

)

(11,825

)

Equity in loss of affiliates

(8,109

)

(20,120

)

(14,915

)

(11,634

)

Loss before income taxes

(134,331

)

(268,961

)

(357,817

)

(331,491

)

Income taxes

7,950

(98,145

)

(6,693

)

(101,253

)

Net loss

$

(142,281

)

$

(170,816

)

$

(351,124

)

$

(230,238

)

Less: Net income (loss) attributable to noncontrolling interests

186

(427

)

(416

)

(258

)

Net loss attributable to Cinemark Holdings, Inc.

$

(142,467

)

$

(170,389

)

$

(350,708

)

$

(229,980

)

Loss per share attributable to Cinemark Holdings, Inc.'s common stockholders

Basic

$

(1.19

)

$

(1.45

)

$

(2.94

)

$

(1.96

)

Diluted

$

(1.19

)

$

(1.45

)

$

(2.94

)

$

(1.96

)

Weighted average shares outstanding - Diluted

117,225

116,666

117,200

116,581

Other Operating Data

(unaudited, in thousands)

As of

As of

June 30,

December 31,

2021

2020

Balance sheet data:

Cash and cash equivalents

$

595,884

$

655,338

Theatre properties and equipment, net

$

1,492,564

$

1,615,062

Total assets

$

5,212,818

$

5,562,922

Long-term debt, including current portion, net of unamortized debt discounts and debt issue costs

$

2,499,536

$

2,395,218

Equity

$

397,738

$

798,969

Segment Information

(unaudited, in millions, except per patron data)

U.S. Operating Segment

International Operating Segment

Consolidated

Three Months Ended
June 30,

Three Months Ended
June 30,

Three Months Ended
June 30,

Revenues

2021

2021

2021

Admissions revenues

$

140.6

$

12.9

$

153.5

Concession revenues

$

99.4

$

10.4

$

109.8

Other revenues

$

29.3

$

2.0

$

31.3

Total revenues

$

269.3

$

25.3

$

294.6

Attendance

15.1

4.0

19.1

Average ticket price

$

9.33

$

3.21

$

8.04

Concession revenues per patron

$

6.59

$

2.60

$

5.75

U.S. Operating Segment

International Operating Segment

Consolidated

Three Months Ended

Three Months Ended

Three Months Ended

June 30,

June 30,

June 30,

Cost of Operations

2021

2020

2021

2020

Constant
Currency (1)
2021

2021

2020

Film rentals and advertising

$

70.3

$

0.2

$

6.3

$

0.2

$

6.6

$

76.6

$

0.4

Concession supplies

$

16.1

$

1.5

$

2.7

$

0.9

$

2.7

$

18.8

$

2.4

Salaries and wages

$

43.5

$

3.4

$

6.9

$

5.4

$

7.2

$

50.4

$

8.8

Facility lease expense

$

59.9

$

59.8

$

7.3

$

5.4

$

7.3

$

67.2

$

65.2

Utilities and other

$

52.9

$

28.8

$

8.3

$

6.1

$

8.5

$

61.2

$

34.9

U.S. Operating Segment

International Operating Segment

Consolidated

Six Months Ended June 30,

Six Months Ended June 30,

Constant
Currency (1)

Six Months Ended June 30,

Revenues

2021

2020

2021

2020

2021

2021

2020

Admissions revenues

$

189.1

$

232.3

$

20.5

$

60.2

$

21.9

$

209.6

$

292.5

Concession revenues

$

132.4

$

152.8

$

16.9

$

37.7

$

17.8

$

149.3

$

190.5

Other revenues

$

44.9

$

50.4

$

5.2

$

19.2

$

6.0

$

50.1

$

69.6

Total revenues

$

366.4

$

435.5

$

42.6

$

117.1

$

45.7

$

409.0

$

552.6

Attendance

20.3

27.9

6.5

17.9

26.8

45.8

Average ticket price

$

9.31

$

8.33

$

3.15

$

3.36

$

3.36

$

7.81

$

6.39

Concession revenues per patron

$

6.52

$

5.48

$

2.59

$

2.11

$

2.73

$

5.56

$

4.16

U.S. Operating Segment

International Operating Segment

Consolidated

Six Months Ended

Six Months Ended

Six Months Ended

June 30,

June 30,

June 30,

Cost of Operations

2021

2020

2021

2020

Constant
Currency (1)
2021

2021

2020

Film rentals and advertising

$

89.6

$

128.2

$

10.2

$

28.8

$

11.0

$

99.8

$

157.0

Concession supplies

$

21.6

$

27.1

$

4.4

$

10.1

$

4.6

$

26.0

$

37.2

Salaries and wages

$

68.4

$

74.6

$

13.2

$

21.8

$

14.4

$

81.6

$

96.4

Facility lease expense

$

118.9

$

125.2

$

13.1

$

22.2

$

13.6

$

132.0

$

147.4

Utilities and other

$

92.9

$

103.8

$

17.4

$

31.6

$

19.0

$

110.3

$

135.4

(1)

Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2020. We translate the results of our international operating segment from local currencies into U.S. dollars using currency rates in effect at different points in time in accordance with U.S. GAAP. Significant changes in foreign currency exchange rates from one period to the next can result in meaningful variations in reported results. We are providing constant currency amounts for our international operating segment to present a period-to-period comparison of business performance that excludes the impact of foreign currency fluctuations.

Other Segment Information

(unaudited, in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Adjusted EBITDA (1)

U.S.

$

519

$

(96,252

)

$

(76,478

)

$

(40,180

)

International

(12,340

)

(21,366

)

(27,293

)

(11,227

)

Total Adjusted EBITDA (1)

$

(11,821

)

$

(117,618

)

$

(103,771

)

$

(51,407

)

Capital expenditures

U.S.

$

11,483

$

11,028

$

25,124

$

36,701

International

3,656

1,788

7,695

10,258

Total capital expenditures

$

15,139

$

12,816

$

32,819

$

46,959

(1)

Adjusted EBITDA represents net income before income taxes, depreciation and amortization expense and other items, as calculated below. 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.

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Net income (loss)

$

(142,281

)

$

(170,816

)

$

(351,124

)

$

(230,238

)

Add (deduct):

Income taxes

7,950

(98,145

)

(6,693

)

(101,253

)

Interest expense

37,034

31,041

73,587

55,707

Other expense, net (a)

7,914

24,335

22,885

24,504

Distributions from DCIP (b)

5,222

10,383

Cash distributions from other equity investees (c)

1,456

156

12,901

Depreciation and amortization

66,920

63,581

135,080

128,837

Impairment of long-lived assets

16,619

Restructuring costs

(740

)

19,538

(948

)

19,538

Loss on disposal of assets and other

2,358

425

6,863

2,330

Loss on extinguishment of debt

3,924

6,527

Non-cash rent

(807

)

1,424

(679

)

833

Share based awards compensation expense (d)

5,907

4,321

10,575

8,432

Adjusted EBITDA

$

(11,821

)

$

(117,618

)

$

(103,771

)

$

(51,407

)

(a)

Includes interest income, foreign currency exchange loss, interest expense – NCM and equity in income (loss) of affiliates.

(b)

Cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP.

(c)

Cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances.

(d)

Non-cash expense included in general and administrative expenses.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today