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Cinemark Holdings, Inc. Reports Q1 2013 Adjusted EBITDA of $116.3 Million on Revenues of $547.8 Million

  Cinemark Holdings, Inc. Reports Q1 2013 Adjusted EBITDA of $116.3 Million on
  Revenues of $547.8 Million

Business Wire

PLANO, Texas -- May 07, 2013

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, 2013.

Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2013
were $547.8 million compared to $578.8 million for the three months ended
March 31, 2012. For the three months ended March 31, 2013, admissions revenues
were $349.4 million and concession revenues were $172.4 million. The average
ticket price for the three months ended March 31, 2013 increased to $6.09 and
concession revenues per patron increased to $3.00.

Adjusted EBITDA for the three months ended March 31, 2013 was $116.3 million
compared to $140.3 million for the three months ended March 31, 2012.
Reconciliations of non-GAAP financial measures are provided in the financial
schedules accompanying this press release.

Net income attributable to Cinemark Holdings, Inc. for the three months ended
March 31, 2013 was $32.6 million compared to $42.1 million for the three
months ended March 31, 2012. Diluted earnings per share for the three months
ended March 31, 2013 was $0.28 compared to $0.37 for the three months ended
March 31, 2012.

“Cinemark’s worldwide box office results outperformed the North American
industry box office for Q1 2013 by approximately 600 basis points, and has now
outperformed the industry for 15 out of the past 16 consecutive quarters on a
currency adjusted basis,” stated Tim Warner, Cinemark’s Chief Executive
Officer. “Our international segment reported admissions revenue growth of 7.1%
this quarter, reiterating the long term growth opportunity provided by this
segment.”

As of March 31, 2013, Cinemark operated 467 theatres with 5,259 screens and
had commitments to open 22 new theatres with 195 screens during the remainder
of 2013 and 9 additional new theatres with 97 screens subsequent to 2013.

Conference Call/Webcast – Today at 8:00AM ET

Telephone: via 888-755-8910 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 467 theatres with 5,259 screens in 39 U.S. states, Brazil, Mexico,
Argentina and 10 other Latin American countries as of March 31, 2013. 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 28, 2013 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,
                                                   2013          2012
Statement of income data:
Revenues
    Admissions                                     $ 349,414       $ 373,793
    Concession                                       172,396         179,820
    Other                                           25,963      25,205  
    Total revenues                                   547,773         578,818
                                                                   
Cost of operations
    Film rentals and advertising                     179,992         195,415
    Concession supplies                              28,000          28,451
    Facility lease expense                           69,618          68,562
    Other theatre operating expenses                 127,221         125,001
    General and administrative expenses              37,779          34,064
    Depreciation and amortization                    39,032          36,816
    Impairment of long-lived assets                  844             185
    (Gain) loss on sale of assets and               (342    )    836     
    other
Total cost of operations                            482,144     489,330 
Operating income                                     65,629          89,488
    Interest expense ^(1)                            (32,606 )       (32,133 )
    Distributions from NCM                           6,103           8,031
    Other income                                    4,554       5,422   
Income before income taxes                           43,680          70,808
Income taxes                                        10,618      27,932  
Net income                                         $ 33,062        $ 42,876
Less: Net income attributable to                    468         772     
noncontrolling interests
Net income attributable to Cinemark                $ 32,594     $ 42,104  
Holdings, Inc.
                                                                   
Earnings per share attributable to
Cinemark Holdings, Inc.’s common
stockholders:
    Basic                                          $ 0.28       $ 0.37    
    Diluted                                        $ 0.28       $ 0.37    
                                                                   
Weighted average diluted shares                     113,979     113,368 
outstanding
Other financial data:
    Adjusted EBITDA ^(2)                           $ 116,256    $ 140,328 
                                                                   

(1)  Includes amortization of debt issue costs and excludes capitalized
      interest.
      Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of
(2)   Adjusted EBITDA to net income is provided in the financial schedules
      accompanying this press release.
      

                                                        
                                                As of             As of
                                                March 31,         December 31,
                                                2013              2012
Balance Sheet Data:
  Cash and cash equivalents                     $ 724,303         $  742,664
  Theatre properties and equipment,             $ 1,304,639       $  1,304,958
  net
  Total assets                                  $ 3,857,199       $  3,863,226
  Long-term debt, including current             $ 1,761,784       $  1,764,010
  portion
  Equity                                        $ 1,110,983       $  1,094,984
                                                                  

                                                   
                                                         Three Months Ended
                                                         March 31,
                                                         2012       2012
Other operating data:
 Attendance (patrons):
  Domestic                                                 34,668       39,830
  International                                           22,751    21,718
  Worldwide                                               57,419    61,548
                                                                      
  Average ticket price (in dollars):
  Domestic                                               $ 6.76       $ 6.70
  International                                          $ 5.06       $ 4.94
  Worldwide                                              $ 6.09       $ 6.08
                                                                      
  Concession revenues per patron (in dollars):
  Domestic                                               $ 3.40       $ 3.30
  International                                          $ 2.40       $ 2.24
  Worldwide                                              $ 3.00       $ 2.92
                                                                      
  Average screen count (month end average):
  Domestic                                                 3,916        3,891
  International                                           1,333     1,278
  Worldwide                                               5,249     5,169
                                                                      


Segment Information
(unaudited, in thousands)
                                
                                       Three Months Ended
                                       March 31,
                                       2013            2012
Revenues
  U.S.                                 $ 366,363           $ 411,225
  International                          184,193             169,875
  Eliminations                          (2,783  )      (2,282  )
  Total revenues                       $ 547,773      $ 578,818 
Adjusted EBITDA
  U.S.                                 $ 80,078            $ 104,293
  International                         36,178        36,035  
  Total Adjusted EBITDA                $ 116,256      $ 140,328 
Capital expenditures
  U.S.                                 $ 6,156             $ 19,694
  International                         30,733        27,290  
  Total capital expenditures           $ 36,889       $ 46,984  
                                                           


  Reconciliation of Adjusted EBITDA
  (unaudited, in thousands)
                                            
                                                 Three Months Ended
                                                 March 31,
                                                 2013           2012
  Net income                                     $ 33,062          $ 42,876
  Income taxes                                     10,618            27,932
  Interest expense                                 32,606            32,133
  Other income                                     (4,554  )         (5,422  )
  Depreciation and amortization                    39,032            36,816
  Impairment of long-lived assets                  844               185
  (Gain) loss on sale of assets and                (342    )         836
  other
  Deferred lease expenses – theatres^(2)           (131    )         120
  Deferred lease expenses – DCIP                   1,021             1,003
  equipment ^(3)
  Amortization of long-term prepaid                650               534
  rents ^(2)
  Share based awards compensation                 3,450        3,315   
  expense ^(4)
  Adjusted EBITDA ^(1)                           $ 116,256     $ 140,328 
                                                                             

      Adjusted EBITDA as calculated in the chart above represents net income
      before income taxes, interest expense, other income, 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
(1)  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.
(2)   Non-cash expense included in facility lease expense.
(3)   Non-cash expense included in other theatre operating expenses.
(4)   Non-cash expense included in general and administrative expenses.

Contact:

Cinemark Holdings, Inc.
Financial Contact:
Chanda Brashears, 972-665-1671
cbrashears@cinemark.com
or
Media Contact:
James Meredith, 972-665-1060
jmeredith@cinemark.com
 
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