Cinemark Holdings, Inc. Reports Results for Q2 2014

  Cinemark Holdings, Inc. Reports Results for Q2 2014  Business Wire  PLANO, Texas -- August 5, 2014  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, 2014.  Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2014 were $717.9 million. For the three months ended June 30, 2014, admissions revenues were $455.7 million and concession revenues were $226.5 million. Average ticket price increased 2.1% to $6.46 and concession revenues per patron increased 2.9% to $3.21 during the three months ended June 30, 2014.  Adjusted EBITDA for the three months ended June 30, 2014 was $169.4 million compared to $178.0 million for the three months ended June 30, 2013. 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 June 30, 2014 was approximately $71.7 million compared to $20.3 million for the three months ended June 30, 2013. Diluted earnings per share for the three months ended June 30, 2014 was $0.62 compared to $0.18 for the three months ended June 30, 2013. 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.  “The second quarter of 2014 was up against a record-breaking 2013,” stated Tim Warner, Cinemark’s Chief Executive Officer. “Regardless of the difficult comparisons of prior year, Cinemark’s second quarter worldwide admissions revenues outperformed the North American industry by approximately 460 basis points, marking 21 out of 22 consecutive quarters of outperformance on a currency adjusted basis.”  Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2014 increased 3.7% to $1,320.2 million from $1,273.4 million for the six months ended June 30, 2013. During the six months ended June 30, 2014, admissions revenues increased 2.8% to $836.6 million and concession revenues increased 4.6% to $419.5 million. Average ticket price increased 1.9% to $6.34 and concession revenues per patron increased 3.6% to $3.18 during the six months ended June 30, 2014.  Adjusted EBITDA for the six months ended June 30, 2014 was $297.9 million compared to $294.3 million for the six months ended June 30, 2013. 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, 2014 was $107.2 million compared to $52.9 million for the six months ended June 30, 2013. Diluted earnings per share for the six months ended June 30, 2014 was $0.93 compared to $0.46 for the six months ended June 30, 2013. 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, 2014, the Company’s aggregate screen count was 5,609. As of June 30, 2014, the Company had signed commitments to open nine new theatres and 96 screens by the end of 2014 and open 14 new theatres with 134 screens subsequent to 2014.  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 488 theatres with 5,609 screens in 40 U.S. states, Brazil, Argentina and 11 other Latin American countries as of June 30, 2014. 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, 2014 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,                                                                                     2014            2013              2014              2013 Statement of income data: Revenues Admissions                                                                          $ 455,726       $ 464,483         $ 836,640         $ 813,897 Concession                                                                            226,417         228,746           419,440           401,142 Other                                                                                35,720      32,393          64,063        58,356     Total revenues                                                                        717,863         725,622           1,320,143         1,273,395 Cost of operations Film rentals and advertising                                                          249,198         257,435           449,855           437,427 Concession supplies                                                                   35,336          37,021            65,389            65,021 Facility lease expense                                                                80,647          76,124            159,004           145,742 Other theatre operating expenses                                                      148,512         143,445           288,795           270,666 General and administrative expenses                                                   39,717          40,546            79,089            78,325 Depreciation and amortization                                                         43,881          38,734            86,377            77,766 Impairment of long-lived assets                                                       430             1,101             784               1,945 (Gain) loss on sale of assets and other                                              3,276       (2,801  )        6,129         (3,143    ) Total cost of operations                                                             600,997     591,605         1,135,422     1,073,749  Operating income                                                                      116,866         134,017           184,721           199,646 Interest expense ^(1)                                                                 (28,286 )       (34,458 )         (56,766   )       (67,064   ) Distributions from NCM                                                                1,180           1,693             10,677            7,796 Loss on early retirement of debt                                                      —               (72,302 )         —                 (72,302   ) Other income                                                                         6,455       609             14,141        5,163      Income before income taxes                                                            96,215          29,559            152,773           73,239 Income taxes                                                                         24,081      8,722           44,943        19,340     Net income                                                                          $ 72,134        $ 20,837          $ 107,830         $ 53,899 Less: Net income attributable to noncontrolling interests                            403         572             656           1,040      Net income attributable to Cinemark Holdings, Inc.                                  $ 71,731     $ 20,265         $ 107,174      $ 52,859     Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders: Basic                                                                               $ 0.62       $ 0.18           $ 0.93         $ 0.46       Diluted                                                                             $ 0.62       $ 0.18           $ 0.93         $ 0.46                                                                                                                                                Weighted average diluted shares outstanding                                          114,961     114,387         114,814       114,210                                                                                                                                             Other financial data: Adjusted EBITDA ^(2)                                                                $ 169,355    $ 178,024        $ 297,910      $ 294,280                                                                                  ^(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,                                                 2014              2013 Balance sheet data: Cash and cash equivalents                       $ 578,141         $  599,929 Theatre properties and equipment, net           $ 1,445,626       $  1,427,190 Total assets                                    $ 4,116,472       $  4,144,163 Long-term debt, including current portion       $ 1,827,833       $  1,832,800 Equity                                          $ 1,156,421       $  1,102,417                                                                                                                                                                                                                          Three months ended          Six months ended                            June 30,                    June 30,                            2014       2013           2014        2013 Other operating data:  Attendance   (patrons):   Domestic                   46,452       46,889         87,052        81,557   International             24,036    26,463        44,954     49,214   Worldwide                 70,488    73,352        132,006    130,771                                                                         Average ticket   price (in   dollars):   Domestic                 $ 7.20       $ 7.16         $ 7.09        $ 6.99   International            $ 5.04       $ 4.85         $ 4.88        $ 4.95   Worldwide                $ 6.46       $ 6.33         $ 6.34        $ 6.22                                                                         Concession   revenues per   patron (in   dollars):   Domestic                 $ 3.67       $ 3.50         $ 3.63        $ 3.46   International            $ 2.33       $ 2.43         $ 2.30        $ 2.42   Worldwide                $ 3.21       $ 3.12         $ 3.18        $ 3.07                                                                         Average screen   count (month end   average):   Domestic                   4,452        4,181          4,457         4,068   International             1,145     1,349         1,133      1,341   Worldwide                 5,597     5,530         5,590      5,409                                                                                                                                                                                                  Segment Information  (unaudited, in thousands)                                                                            Three months ended                Six months ended                     June 30,                          June 30,                     2014          2013              2014            2013 Revenues U.S.                $ 524,485       $ 517,109         $ 969,405         $ 883,472 International         196,881         211,879           357,073           396,072 Eliminations         (3,503  )    (3,366  )        (6,335    )    (6,149    ) Total               $ 717,863    $ 725,622        $ 1,320,143    $ 1,273,395  revenues Adjusted EBITDA ^(1) U.S.                $ 120,871       $ 128,697         $ 214,411         $ 208,775 International        48,484      49,327          83,499        85,505     Total Adjusted            $ 169,355    $ 178,024        $ 297,910      $ 294,280    EBITDA Capital expenditures U.S.                $ 30,483        $ 29,631          $ 60,795          $ 35,787 International        19,274      23,868          41,768        54,601     Total capital       $ 49,757     $ 53,499         $ 102,563      $ 90,388     expenditures                                                                                                                                                                     Reconciliation of Adjusted EBITDA (unaudited, in thousands)                                                                      Three months ended             Six months ended                                     June 30,                          June 30,                                     2014          2013              2014          2013 Net income                          $ 72,134        $ 20,837          $ 107,830       $ 53,899 Income taxes                          24,081          8,722             44,943          19,340 Interest expense                      28,286          34,458            56,766          67,064 Loss on early retirement of           —               72,302            —               72,302 debt Other income                          (6,455  )       (609    )         (14,141 )       (5,163  ) Depreciation and amortization         43,881          38,734            86,377          77,766 Impairment of long-lived              430             1,101             784             1,945 assets (Gain) loss on sale of assets         3,276           (2,801  )         6,129           (3,143  ) and other Deferred lease expenses -             485             191               1,040           59 theatres ^(2) Deferred lease expenses –             (236    )       1,022             808             2,044 DCIP equipment ^(3) Amortization of long-term             407             729               785             1,379 prepaid rents ^(2) Share based awards                   3,066       3,338           6,589       6,788    compensation expense ^(4) Adjusted EBITDA ^(1)                $ 169,355    $ 178,024        $ 297,910    $ 294,280                                                                                                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 ^(1)   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  
Press spacebar to pause and continue. Press esc to stop.