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
 
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