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Cinemark Holdings, Inc. Reports Q2 2013 Adjusted EBITDA of $178.0 Million on Revenues of $725.6 Million



  Cinemark Holdings, Inc. Reports Q2 2013 Adjusted EBITDA of $178.0 Million on
  Revenues of $725.6 Million

Business Wire

PLANO, Texas -- August 6, 2013

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, 2013.

Cinemark Holdings, Inc.’s revenues for the three months ended June 30, 2013
increased 11.7% to $725.6 million from $649.6 million for the three months
ended June 30, 2012. For the three months ended June 30, 2013, admissions
revenues increased 11.1% to $464.5 million and concession revenues increased
13.6% to $228.7 million. Average ticket price increased 4.1% to $6.33,
concession revenues per patron increased 6.5% to $3.12 and attendance
increased 6.7% to 73.4 million patrons during the three months ended June 30,
2013.

Adjusted EBITDA for the three months ended June 30, 2013 was $178.0 million
compared to $157.0 million for the three months ended June 30, 2012.
Reconciliations of non-GAAP financial measures are provided in the financial
schedules accompanying this press release.

Net income for the three months ended June 30, 2013 included a loss on early
retirement of debt of approximately $72.3 million, before income taxes. Net
income attributable to Cinemark Holdings, Inc. for the three months ended June
30, 2013 was approximately $20.3 million compared to $51.6 million for the
three months ended June 30, 2012. Diluted earnings per share for the three
months ended June 30, 2013 was $0.18 compared to $0.45 for the three months
ended June 30, 2012.

“Although news headlines may lead you to believe that movies are not
performing well, the real story is in the numbers this quarter. The diversity
and breadth of the second quarter’s film product resulted in an all-time North
American industry box office record of over $3 billion dollars, an increase of
nearly 8% from the year ago period,” stated Tim Warner, Cinemark’s Chief
Executive Officer. “With more than 500 theatres and nearly 5,800 screens, we
achieved record worldwide admissions revenues of $464.5 million, an increase
of 11.1%, and over-indexed the North American industry by approximately 320
basis points. The diversity of our global circuit has allowed us to outperform
the North American industry in 16 out of the past 17 consecutive quarters on a
currency adjusted basis.”

Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2013
increased to $1,273.4 million from $1,228.4 million for the six months ended
June 30, 2012. During the six months ended June 30, 2013, admissions revenues
increased 2.8% to $813.9 million and concession revenues increased 5.2% to
$401.1 million. Average ticket price increased 2.3% to $6.22 and concession
revenues per patron increased 4.8% to $3.07 during the six months ended June
30, 2013.

Adjusted EBITDA for the six months ended June 30, 2013 was $294.3 million
compared to $297.3 million for the six months ended June 30, 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 six months ended
June 30, 2013 was $52.9 million compared to $93.7 million for the six months
ended June 30, 2012. Diluted earnings per share for the six months ended June
30, 2013 was $0.46 compared to $0.82 for the six months ended June 30, 2012.
Net income for the six months ended June 30, 2013 included a loss on early
retirement of debt of approximately $72.3 million, before income taxes.

On June 30, 2013, the Company’s aggregate screen count was 5,794. As of June
30, 2013, the Company had signed commitments to open 21 new theatres and 181
screens by the end of 2013 and open 16 new theatres with 153 screens
subsequent to 2013.

Conference Call/Webcast – Today at 8:30 AM 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 504 theatres with 5,794 screens in 40 U.S. states, Brazil, Mexico,
Argentina and 10 other Latin American countries as of June 30, 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 June 30,     Six months ended June 30,
                     2013            2012            2013              2012       
Statement of
income data:
Revenues
Admissions         $ 464,483       $ 418,073       $ 813,897         $ 791,866
Concession           228,746         201,414         401,142           381,234
Other                32,393          30,119          58,356            55,324     
Total revenues       725,622         649,606         1,273,395         1,228,424
Cost of
operations
Film rentals
and                  257,435         227,301         437,427           422,716
advertising
Concession           37,021          31,787          65,021            60,238
supplies
Facility lease       76,124          71,614          145,742           140,176
expense
Other theatre
operating            143,445         131,923         270,666           256,924
expenses
General and
administrative       40,546          35,951          78,325            70,015
expenses
Depreciation
and                  38,734          36,341          77,766            73,157
amortization
Impairment of
long-lived           1,101           311             1,945             496
assets
(Gain) loss on
sale of assets       (2,801  )       469             (3,143    )       1,305      
and other
Total cost of        591,605         535,697         1,073,749         1,025,027  
operations
Operating            134,017         113,909         199,646           203,397
income
Interest             (34,458 )       (31,375 )       (67,064   )       (63,508   )
expense ^(1)
Distributions        1,693           386             7,796             8,417
from NCM
Loss on early
retirement of        (72,302 )       —               (72,302   )       —
debt
Other income         609             63              5,163             5,485      
Income before        29,559          82,983          73,239            153,791
income taxes
Income taxes         8,722           30,844          19,340            58,776     
Net income         $ 20,837        $ 52,139        $ 53,899          $ 95,015
Less: Net
income
attributable         572             501             1,040             1,273      
to
noncontrolling
interests
Net income
attributable       $ 20,265        $ 51,638        $ 52,859          $ 93,742     
to Cinemark
Holdings, Inc.
Earnings per
share
attributable
to Cinemark
Holdings,
Inc.’s common
stockholders:
Basic              $ 0.18          $ 0.45          $ 0.46            $ 0.82       
Diluted            $ 0.18          $ 0.45          $ 0.46            $ 0.82       
                                                                      
Weighted
average              114,387         113,737         114,210           113,568    
diluted shares
outstanding
                                                                      
Other
financial
data:
Adjusted           $ 178,024       $ 156,952       $ 294,280         $ 297,280    
EBITDA ^(2)

^(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
                                              June 30,        December 31,
                                              2013            2012
Balance sheet data:
Cash and cash equivalents                     $ 515,474       $  742,664
Theatre properties and equipment, net         $ 1,395,911     $  1,304,958
Total assets                                  $ 4,111,617     $  3,863,226
Long-term debt, including current portion     $ 1,827,651     $  1,764,010
Equity                                        $ 1,073,740     $  1,094,984

                                                      
                                                        
                             Three months ended        Six months ended

                             June 30,                  June 30,
                             2013         2012         2013          2012
Other operating data:
Attendance (patrons):
Domestic                       46,889       42,013       81,557        81,843
International                  26,463       26,782       49,214        48,500
Worldwide                      73,352       68,795       130,771       130,343
                                                                      
Average ticket price (in
dollars):
Domestic                     $ 7.16       $ 6.84       $ 6.99        $ 6.77
International                $ 4.85       $ 4.88       $ 4.95        $ 4.91
Worldwide                    $ 6.33       $ 6.08       $ 6.22        $ 6.08
                                                                      
Concession revenues per
patron (in dollars):
Domestic                     $ 3.50       $ 3.38       $ 3.46        $ 3.34
International                $ 2.43       $ 2.23       $ 2.42        $ 2.23
Worldwide                    $ 3.12       $ 2.93       $ 3.07        $ 2.93
                                                                      
Average screen count
(month end average):
Domestic                       4,181        3,911        4,068         3,901
International                  1,349        1,284        1,341         1,280
Worldwide                      5,530        5,195        5,409         5,181

 
 
Segment Information
(unaudited, in thousands)
 
                  Three months ended              Six months ended
                                                 
                  June 30,                        June 30,
                    2013            2012            2013              2012       
Revenues
U.S.              $ 517,109       $ 443,765       $ 883,472         $ 854,990
International       211,879         208,372         396,072           378,247
Eliminations        (3,366  )       (2,531  )       (6,149    )       (4,813    )
Total             $ 725,622       $ 649,606       $ 1,273,395       $ 1,228,424  
revenues
Adjusted
EBITDA ^(1)
U.S.              $ 128,697       $ 103,391       $ 208,775         $ 207,684
International       49,327          53,561          85,505            89,596     
Total
Adjusted          $ 178,024       $ 156,952       $ 294,280         $ 297,280    
EBITDA
Capital
expenditures
U.S.              $ 29,631        $ 27,109        $ 35,787          $ 46,803
International       23,868          19,494          54,601            46,784     
Total capital     $ 53,499        $ 46,603        $ 90,388          $ 93,587     
expenditures

 
 
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
 
                   Three months ended              Six months ended
                   June 30,                        June 30,
                     2013            2012            2013            2012     
Net income         $ 20,837        $ 52,139        $ 53,899        $ 95,015
Income taxes         8,722           30,844          19,340          58,776
Interest             34,458          31,375          67,064          63,508
expense
Loss on early
retirement of        72,302          ―               72,302          ―
debt
Other income         (609    )       (63     )       (5,163  )       (5,485  )
Depreciation
and                  38,734          36,341          77,766          73,157
amortization
Impairment of
long-lived           1,101           311             1,945           496
assets
(Gain) loss on
sale of assets       (2,801  )       469             (3,143  )       1,305
and other
Deferred lease
expenses -           191             197             59              317
theatres ^(2)
Deferred lease
expenses –           1,022           1,010           2,044           2,013
DCIP equipment
^(3)
Amortization
of long-term         729             776             1,379           1,310
prepaid rents
^(2)
Share based
awards               3,338           3,553           6,788           6,868    
compensation
expense ^(4)
Adjusted           $ 178,024       $ 156,952       $ 294,280       $ 297,280  
EBITDA ^(1)

^(1) Adjusted EBITDA as calculated in the chart above represents net income
before income taxes, interest expense, loss on early retirement of debt, 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 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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