Cinemark Holdings, Inc. Reports Q3 2013 Adjusted EBITDA of $190.2 Million on Revenues of $757.6 Million

  Cinemark Holdings, Inc. Reports Q3 2013 Adjusted EBITDA of $190.2 Million on
  Revenues of $757.6 Million

Business Wire

PLANO, Texas -- November 7, 2013

Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture
exhibitors in the world, today reported results for the three and nine months
ended September 30, 2013.

Cinemark Holdings, Inc.’s revenues for the three months ended September 30,
2013 increased 19.6% to $757.6 million from $633.6 million for the three
months ended September 30, 2012. For the three months ended September 30,
2013, admissions revenues increased 19.2% to $479.6 million and concession
revenues increased 21.1% to $242.3 million. Attendance increased 16.2% to 81.0
million patrons, average ticket price increased 2.6% to $5.92 and concession
revenues per patron increased 4.2% to $2.99 during the three months ended
September 30, 2013.

Adjusted EBITDA for the three months ended September 30, 2013 was $190.2
million compared to $148.4 million for the three months ended September 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 three months ended
September 30, 2013 was approximately $80.0 million compared to $47.4 million,
an increase of 68.8%, for the three months ended September 30, 2012. Diluted
earnings per share for the three months ended September 30, 2013 was $0.69
compared to $0.41 for the three months ended September 30, 2012. Net income
for the three months ended September 30, 2012 was impacted by a lease
termination reserve for a planned closure.

“The North American industry celebrated a robust box office in the third
quarter with an increase of 6.4%, fueled by a record summer box office,”
stated Tim Warner, Cinemark Chief Executive Officer. “Cinemark achieved
record-setting results with a 19.2% increase in admissions revenues over the
prior year, as well as all-time highs for attendance, Adjusted EBITDA and
Adjusted EBITDA margin. Due to the strength and diversity of our global
footprint, our worldwide operations have now outperformed the North American
industry in 17 of the past 18 consecutive quarters on a currency adjusted
basis.”

Cinemark Holdings, Inc.’s revenues for the nine months ended September 30,
2013 increased 9.1% to $2,031.0 million from $1,862.0 million for the nine
months ended September 30, 2012. During the nine months ended September 30,
2013, admissions revenues increased 8.3% to $1,293.5 million and concession
revenues increased 10.7% to $643.4 million. Average ticket price increased
2.3% to $6.11 and concession revenues per patron increased 4.5% to $3.04
during the nine months ended September 30, 2013.

Adjusted EBITDA for the nine months ended September 30, 2013 was $484.5
million compared to $445.7 million for the nine months ended September 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 nine months ended
September 30, 2013 was $132.9 million compared to $141.1 million for the nine
months ended September 30, 2012. Diluted earnings per share for the nine
months ended September 30, 2013 was $1.15 compared to $1.23 for the nine
months ended September 30, 2012. Net income for the nine months ended
September 30, 2013 included a loss on early retirement of debt of
approximately $72.3 million, before income taxes.

On September 30, 2013, the Company’s aggregate screen count was 5,794. As of
September 30, 2013, the Company had signed commitments to open 15 new theatres
and 128 screens during the remainder of 2013 and 23 new theatres with 209
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 506 theatres with 5,794 screens in 40 U.S. states, Brazil, Mexico,
Argentina and 10 other Latin American countries as of September 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             Nine months ended September 30,
                   September 30,
                   2013          2012           2013            2012
Statement of
income data:
Revenues
Admissions         $ 479,631       $ 402,440         $ 1,293,528       $ 1,194,306
Concession           242,257         200,112           643,399           581,346
Other               35,678      31,021       94,034        86,345    
Total revenues       757,566         633,573           2,030,961         1,861,997
Cost of
operations
Film rentals
and                  254,792         214,002           692,219           636,718
advertising
Concession           38,971          32,924            103,992           93,162
supplies
Facility lease       85,085          72,883            230,827           213,059
expense
Other theatre
operating            157,990         138,043           428,656           394,967
expenses
General and
administrative       42,395          36,996            120,720           107,011
expenses
Depreciation
and                  42,399          36,897            120,165           110,054
amortization
Impairment of
long-lived           131             976               2,076             1,472
assets
(Gain) loss on
sale of assets      611         6,699        (2,532    )    8,004     
and other
Total cost of       622,374     539,420      1,696,123     1,564,447 
operations
Operating            135,192         94,153            334,838           297,550
income
Interest             (29,478 )       (30,861 )         (96,542   )       (94,369   )
expense ^(1)
Distributions        5,622           4,673             13,418            13,090
from NCM
Loss on early
retirement of        —               —                 (72,302   )     ―
debt
Other income        12,795      9,455        17,958        14,940    
Income before        124,131         77,420            197,370           231,211
income taxes
Income taxes        43,386      29,453       62,726        88,229    
Net income         $ 80,745        $ 47,967          $ 134,644         $ 142,982
Less: Net
income
attributable        726         582          1,766         1,855     
to
noncontrolling
interests
Net income
attributable       $ 80,019     $ 47,385      $ 132,878      $ 141,127   
to Cinemark
Holdings, Inc.
Earnings per
share
attributable
to Cinemark
Holdings,
Inc.’s common
stockholders:
Basic              $ 0.69       $ 0.41        $ 1.15         $ 1.23      
Diluted            $ 0.69       $ 0.41        $ 1.15         $ 1.23      
                                                                                   
Weighted
average             114,449     113,814      114,291       113,664   
diluted shares
outstanding
                                                                                   
Other
financial
data:
Adjusted           $ 190,173    $ 148,370     $ 484,453      $ 445,650   
EBITDA ^(2)

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

                                                           
                                              As of             As of
                                              September 30,     December 31,
                                              2013              2012
Balance sheet data:
Cash and cash equivalents                     $  479,779        $  742,664
Theatre properties and equipment, net         $  1,417,023      $  1,304,958
Total assets                                  $  4,082,898      $  3,863,226
Long-term debt, including current portion     $  1,826,764      $  1,764,010
Equity                                        $  1,110,107      $  1,094,984
                                                                   

                                                 
                           Three months ended          Nine months ended
                                                   
                           September 30,               September 30,
                           2013       2012           2013        2012
Other operating data:
Attendance (patrons,
in thousands):
Domestic                     50,604       41,141         132,161       122,984
International               30,433    28,508     79,647     77,008
Worldwide                   81,037    69,649     211,808    199,992
                                                                     
Average ticket price
(in dollars):
Domestic                   $ 6.68       $ 6.44         $ 6.87        $ 6.66
International              $ 4.66       $ 4.81         $ 4.84        $ 4.87
Worldwide                  $ 5.92       $ 5.77         $ 6.11        $ 5.97
                                                                     
Concession revenues
per patron (in
dollars):
Domestic                   $ 3.38       $ 3.29         $ 3.43        $ 3.32
International              $ 2.34       $ 2.26         $ 2.39        $ 2.24
Worldwide                  $ 2.99       $ 2.87         $ 3.04        $ 2.91
                                                                     
Average screen count
(month end average):
Domestic                     4,420        3,922          4,172         3,907
International               1,373     1,285      1,352      1,282
Worldwide                   5,793     5,207      5,524      5,189
                                                                       

                                              
Segment Information
(unaudited, in thousands)
                                                    
                  Three months ended                Nine months ended
                                                
                  September 30,                     September 30,
                  2013          2012              2013            2012
Revenues
U.S.              $ 529,426       $ 416,165         $ 1,412,898       $ 1,271,155
International       231,771         220,633           627,843           598,880
Eliminations       (3,631  )    (3,225  )     (9,780    )    (8,038    )
Total             $ 757,566    $ 633,573     $ 2,030,961    $ 1,861,997 
revenues
Adjusted
EBITDA ^(1)
U.S.              $ 132,803       $ 94,538          $ 341,579         $ 302,222
International      57,370      53,832       142,874       143,428   
Total
Adjusted          $ 190,173    $ 148,370     $ 484,453      $ 445,650   
EBITDA
Capital
expenditures
U.S.              $ 35,746        $ 27,357          $ 71,533          $ 74,160
International      33,354      25,583       87,955        72,367    
Total capital     $ 69,100     $ 52,940      $ 159,488      $ 146,527   
expenditures
                                                                                  


Reconciliation of Adjusted EBITDA
(unaudited, in thousands)

               Three months ended             Nine months ended
                 September 30,                  September 30,
                 2013          2012              2013          2012
Net income       $ 80,745        $ 47,967          $ 134,644       $ 142,982
Income taxes       43,386          29,453            62,726          88,229
Interest           29,478          30,861            96,542          94,369
expense
Loss on
early            ―               ―                   72,302        ―
retirement
of debt
Other income       (12,795 )       (9,455  )         (17,958 )       (14,940 )
Depreciation
and                42,399          36,897            120,165         110,054
amortization
Impairment
of                 131             976               2,076           1,472
long-lived
assets
(Gain) loss
on sale of         611             6,699             (2,532  )       8,004
assets and
other
Deferred
lease
expenses –         897             (16     )         956             301
theatres
^(2)
Deferred
lease
expenses –         1,038           1,013             3,082           3,026
DCIP
equipment
^(3)
Amortization
of long-term       725             678               2,104           1,988
prepaid
rents ^(2)
Share based
awards            3,558       3,297        10,346      10,165  
compensation
expense ^(4)
Adjusted         $ 190,173    $ 148,370     $ 484,453    $ 445,650 
EBITDA ^(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
^(1)  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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