Cinemark Holdings, Inc. Reports a 6.6% Increase in Revenues to $651.9 Million for Q4 2013

  Cinemark Holdings, Inc. Reports a 6.6% Increase in Revenues to $651.9   Million for Q4 2013  Business Wire  PLANO, Texas -- February 19, 2014  Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three months and year ended December 31, 2013.  Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2013 increased 6.6% to $651.9 million compared to $611.5 million for the three months ended December 31, 2012. For the three months ended December 31, 2013, admissions revenues increased 6.9% and concession revenues increased 6.2%. Average ticket price increased 5.1% and concession revenues per patron increased 4.4% during the three months ended December 31, 2013.  Adjusted EBITDA for the three months ended December 31, 2013 was $140.9 million compared to $143.6 million for the three months ended December 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 December 31, 2013 was $15.6 million compared to $27.8 million for the three months ended December 31, 2012. Diluted earnings per share for the three months ended December 31, 2013 was $0.13 compared to $0.24 for the three months ended December 31, 2012. Net income for the three months ended December 31, 2013 included an after-tax loss of approximately $17.9 million on the Company’s sale of its Mexico subsidiaries.  “The annual 2013 North American industry had a record-breaking year, achieving nearly $11 billion dollars in admissions revenues, which exceeded 2012’s record box office,” stated Tim Warner, Cinemark’s Chief Executive Officer. “Our total worldwide revenues for the year grew 8.5% to a record $2.7 billion dollars. Our operations teams were able to leverage the attendance increase while simultaneously managing costs resulting in an all-time high Adjusted EBITDA of over $625 million dollars.”  Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2013 increased 8.5% to $2,682.9 million from $2,473.5 million for the year ended December 31, 2012. For the year ended December 31, 2013, admissions revenues increased 8.0% and concession revenues increased 9.6%, primarily due to a 4.9% increase in attendance, a 3.0% increase in average ticket price and a 4.4% increase in concession revenues per patron.  Adjusted EBITDA for the year ended December 31, 2013 increased 6.1% to $625.3 million from $589.2 million for the year ended December 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 year ended December 31, 2013 was $148.5 million compared to $168.9 million for the year ended December 31, 2012. Diluted earnings per share for the year ended December 31, 2013 was $1.28 compared to $1.47 for the year ended December 31, 2012. Net income attributable to Cinemark Holdings, Inc. for the year ended December 31, 2013 included a pre-tax loss on early retirement of debt of approximately $72.3 million.  As of December 31, 2013, the Company’s aggregate screen count was 5,563 and the Company had commitments to open 21 new theatres and 178 screens during 2014 and 8 additional new theatres with 85 screens subsequent to 2014.  Conference Call/Webcast – Today at 4:30 PM 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 482 theatres with 5,563 screens in 40 U.S. states, Brazil, Argentina and 10 other Latin American countries as of December 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, except per share amounts)                   Three Months Ended          Year Ended                    December 31,                  December 31,                     2013       2012          2013          2012       Statement of Income Data: Revenues Admissions         $ 412,617     $ 386,095       $ 1,706,145     $ 1,580,401 Concession           201,769       190,059         845,168         771,405 Other               37,547     35,380        131,581      121,725    Total revenues      651,933    611,534       2,682,894    2,473,531                                                                    Cost of operations Film rentals and                  227,292       208,389         919,511         845,107 advertising Concession           31,723        30,309          135,715         123,471 supplies Facility lease       77,024        68,556          307,851         281,615 expense Other theatre operating            146,400       133,171         575,056         528,138 expenses General and administrative       44,631        41,613          165,351         148,624 expenses Depreciation and                  43,805        37,621          163,970         147,675 amortization Impairment of long-lived           1,718         1,559           3,794           3,031 assets (Gain) loss on sale of assets      (1,313  )   4,164         (3,845    )   12,168     and other Total cost of       571,280    525,382       2,267,403    2,089,829  operations Operating            80,653        86,152          415,491         383,702 income Interest             (28,172 )     (29,296 )       (124,714  )     (123,665  ) expense ^(1) Loss on early retirement of        –             (5,599  )       (72,302   )     (5,599    ) debt Distributions        7,283         7,722           20,701          20,812 from NCM Other income        6,730      6,628         24,688       21,568     Income before        66,494        65,607          263,864         296,818 income taxes Income taxes        50,590     37,169        113,316      125,398    Net income         $ 15,904      $ 28,438        $ 150,548       $ 171,420 Less: Net income attributable        312        616           2,078        2,471      to noncontrolling interests Net income attributable       $ 15,592    $ 27,822       $ 148,470     $ 168,949    to Cinemark Holdings, Inc.                                                                   Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders: Basic              $ 0.13      $ 0.24         $ 1.28        $ 1.47       Diluted            $ 0.13      $ 0.24         $ 1.28        $ 1.47                                                                         Weighted average             114,536    113,958       114,396      113,824    diluted shares outstanding                                                                   Other Financial Data: Adjusted           $ 140,870   $ 143,585      $ 625,323     $ 589,235    EBITDA ^(2)  ^(1)  Includes amortization of debt issue costs.        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                                                   December 31,                                                   2013          2012 Balance Sheet Data (unaudited, in thousands): Cash and cash equivalents                         $ 599,929       $ 742,664 Theatre properties and equipment, net               1,427,190       1,304,958 Total assets                                        4,144,163       3,863,226 Long-term debt, including current portion           1,832,800       1,764,010 Equity                                              1,102,417       1,094,984    Segment Information (unaudited, in thousands)                  Three Months Ended            Year Ended                   December 31,                  December 31,                    2013        2012        2013          2012       Revenues                                                        U.S.              $ 499,776       $ 435,356       $ 1,912,674       $ 1,706,511 International       155,210         178,783         783,053           777,663 Eliminations       (3,053  )    (2,605  )    (12,833   )    (10,643   ) Total             $ 651,933    $ 611,534    $ 2,682,894    $ 2,473,531  revenues Adjusted EBITDA U.S.              $ 113,910       $ 107,638       $ 455,489         $ 409,860 International      26,960      35,947      169,834       179,375    Total Adjusted          $ 140,870    $ 143,585    $ 625,323      $ 589,235    EBITDA Capital expenditures U.S.              $ 45,955        $ 33,163        $ 117,488         $ 107,323 International      54,227      41,037      142,182       113,404    Total capital     $ 100,182    $ 74,200     $ 259,670      $ 220,727    expenditures    Additional Segment Information ^(1) (unaudited)                U.S. Operating Segment           International Operating            Consolidated                                                     Segment                  Three Months Ended                 Three Months Ended                   Three Months Ended                  December 31,                       December 31,                         December 31,                                      %                              %                                %                  2013        2012        Change     2013        2012        Change       2013        2012        Change Admissions       $ 323.0     $ 280.5     15.2 %     $ 89.6      $ 105.6     (15.2 )%     $ 412.6     $ 386.1     6.9  % revenues Concession       $ 156.0     $ 137.5     13.5 %     $ 45.8      $ 52.6      (12.9 )%     $ 201.8     $ 190.1     6.2  % revenues Other            $ 17.7      $ 14.7      20.4 %     $ 19.8      $ 20.6      (3.9  )%     $ 37.5      $ 35.3      6.2  % revenues^(2) Total            $ 496.7     $ 432.7     14.8 %     $ 155.2     $ 178.8     (13.2 )%     $ 651.9     $ 611.5     6.6  % revenues^(2) Attendance         45.0        40.6      10.8 %       19.8        23.1      (14.3 )%       64.8        63.7      1.7  % Average          $ 7.18      $ 6.91      3.9  %     $ 4.53      $ 4.57      (0.9  )%     $ 6.37      $ 6.06      5.1  % ticket price Concession revenues per     $ 3.47      $ 3.39      2.4  %     $ 2.31      $ 2.28      1.3   %      $ 3.11      $ 2.98      4.4  % patron Average            4,432       3,916                  1,241       1,307                    5,673       5,223 screen count                 U.S. Operating        International       Consolidated                 Segment                 Operating Segment                 Three Months Ended      Three Months          Three Months Ended                                         Ended                 December 31,            December 31,          December 31,                 2013      2012        2013     2012       2013      2012 Film rentals and     $ 184.7     $ 156.8     $ 42.6     $ 51.6     $ 227.3     $ 208.4 advertising Concession        21.4        18.3        10.3       12.0       31.7        30.3 supplies Salaries          52.3        44.2        18.2       18.7       70.5        62.9 and wages Facility lease             58.3        48.0        18.8       20.5       77.1        68.5 expense Utilities         53.6        43.9        22.3       26.4       75.9        70.3 and other                                                                                                         U.S. Operating Segment                 International                       Consolidated                                                         Operating Segment                  Year Ended                             Year Ended                          Year Ended                  December 31,                           December 31,                        December 31,                                          %                              %                                   %                  2013          2012          Change     2013        2012        Change      2013          2012          Change Admissions       $ 1,231.4     $ 1,099.6     12.0 %     $ 474.7     $ 480.8     (1.3 )%     $ 1,706.1     $ 1,580.4     8.0  % revenues Concession       $ 609.3       $ 546.2       11.6 %     $ 235.9     $ 225.2     4.8  %      $ 845.2       $ 771.4       9.6  % revenues Other            $ 59.1        $ 50.1        18.0 %     $ 72.5      $ 71.6      1.3  %      $ 131.6       $ 121.7       8.1  % revenues^(2) Total            $ 1,899.8     $ 1,695.9     12.0 %     $ 783.1     $ 777.6     0.7  %      $ 2,682.9     $ 2,473.5     8.5  % revenues^(2) Attendance         177.2         163.6       8.3  %       99.4        100.1     (0.7 )%       276.6         263.7       4.9  % Average          $ 6.95        $ 6.72        3.4  %     $ 4.78      $ 4.80      (0.4 )%     $ 6.17        $ 5.99        3.0  % ticket price Concession revenues per     $ 3.44        $ 3.34        3.0  %     $ 2.37      $ 2.25      5.3  %      $ 3.06        $ 2.93        4.4  % patron Average            4,233         3,909                    1,315       1,289                   5,548         5,198 screen count                                                                            U.S. Operating          International           Consolidated                 Segment                 Operating Segment                 Year Ended              Year Ended              Year Ended                 December 31,            December 31,            December 31,                 2013      2012        2013      2012        2013      2012 Film rentals and     $ 687.3     $ 610.5     $ 232.2     $ 234.6     $ 919.5     $ 845.1 advertising Concession        83.7        71.1        52.0        52.4        135.7       123.5 supplies Salaries          192.5       174.2       76.8        73.2        269.3       247.4 and wages Facility lease             215.5       191.1       92.4        90.5        307.9       281.6 expense Utilities         204.5       182.9       101.2       97.8        305.7       280.7 and other  ^(1)  Revenues, attendance and theatre operating costs are in millions.        Average ticket price and concession revenues per patron are in dollars. ^(2)   U.S. operating segment revenues include eliminations of intercompany        transactions with the international operating segment.    Reconciliation of Adjusted EBITDA (unaudited, in thousands)                                                                               Three months ended              Year ended                    December 31,                  December 31,                     2013          2012          2013          2012     Net income         $ 15,904        $ 28,438        $ 150,548       $ 171,420 Income taxes         50,590          37,169          113,316         125,398 Interest             28,172          29,296          124,714         123,665 expense Loss on early retirement of      ―                 5,599           72,302          5,599 debt Other income         (6,730  )       (6,628  )       (24,688 )       (21,568 ) Depreciation and                  43,805          37,621          163,970         147,675 amortization Impairment of long-lived           1,718           1,559           3,794           3,031 assets (Gain) loss on sale of assets       (1,313  )       4,164           (3,845  )       12,168 and other Deferred lease expenses –           608             (243    )       1,564           58 theatres ^(2) Deferred lease expenses –           1,055           1,020           4,137           4,046 DCIP ^(3) Amortization of long-term         521             685             2,625           2,673 prepaid rents ^(2) Share based awards              6,540       4,905       16,886      15,070   compensation expense ^(4) Adjusted           $ 140,870    $ 143,585    $ 625,323    $ 589,235  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