AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Cinemark Holdings, Inc. Reports Record Global Revenues of $821.8 Million for the Third Quarter Of 2019

November 5, 2019

PLANO, Texas--(BUSINESS WIRE)--Nov 5, 2019--

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, 2019.

Cinemark Holdings, Inc.’s total revenues for the three months ended September 30, 2019 increased 9.0% to a record $821.8 million from $754.2 million for the three months ended September 30, 2018. For the three months ended September 30, 2019, admissions revenues increased 6.3% to $454.5 million and concession revenues increased 9.6% to $289.5 million. For the three months ended September 30, 2019, attendance increased 5.0% to 73.3 million patrons, average ticket price increased 1.1% to $6.20 and concession revenues per patron increased 4.5% to $3.95.

Net income attributable to Cinemark Holdings, Inc. for the three months ended September 30, 2019 was $31.4 million compared to $50.2 million for the three months ended September 30, 2018. Diluted earnings per share for the three months ended September 30, 2019 was $0.27 compared to $0.43 for the three months ended September 30, 2018.

Adjusted EBITDA for the three months ended September 30, 2019 increased to $169.8 million from $168.4 million for the three months ended September 30, 2018. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“Our third quarter’s record worldwide revenues were fueled by strength in both our domestic and international operations,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “In addition to the film content that resonated extremely well with our global audiences, we benefited from the continued focus and execution of our guest-oriented strategic priorities. We continue to believe the investments we are making to differentiate and enrich the overall entertainment experience we provide our guests will further position Cinemark for long-term success.”

Cinemark Holdings, Inc.’s total revenues for the nine months ended September 30, 2019 increased 2.9% to $2,494.3 million from $2,423.2 million for the nine months ended September 30, 2018. For the nine months ended September 30, 2019, admissions revenues were $1,371.1 million and concession revenues increased 6.6% to $886.1 million. For the nine months ended September 30, 2019, attendance was 215.8 million patrons, average ticket price was $6.35 and concession revenues per patron increased 6.2% to $4.11.

Net income attributable to Cinemark Holdings, Inc. for the nine months ended September 30, 2019 was $165.1 million compared to $194.4 million for the nine months ended September 30, 2018. Diluted earnings per share for the nine months ended September 30, 2019 was $1.41 compared to $1.66 for the nine months ended September 30, 2018.

Adjusted EBITDA for the nine months ended September 30, 2019 was $566.8 million compared to $583.4 million for the nine months ended September 30, 2018. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of September 30, 2019, the Company’s aggregate screen count was 6,082 and the Company had commitments to open seven new theatres and 63 screens during the remainder of 2019 and 22 new theatres and 214 screens subsequent to 2019.

Conference Call/Webcast – Today at 8:30 AM ET

Telephone: via 800-374-1346 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.

Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theatre companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates 548 theatres with 6,082 screens in 41 states domestically and 15 countries throughout South and Central America. Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD - the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://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, 2019. 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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Statement of income data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

454,429

 

 

$

427,616

 

 

$

1,371,041

 

 

$

1,389,110

 

Concession

 

 

289,477

 

 

 

264,165

 

 

 

886,083

 

 

 

831,243

 

Other

 

 

77,911

 

 

 

62,454

 

 

 

237,172

 

 

 

202,906

 

Total revenues

 

 

821,817

 

 

 

754,235

 

 

 

2,494,296

 

 

 

2,423,259

 

Cost of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

 

254,911

 

 

 

230,121

 

 

 

759,693

 

 

 

758,242

 

Concession supplies

 

 

51,573

 

 

 

42,720

 

 

 

157,361

 

 

 

134,577

 

Salaries and wages

 

 

103,270

 

 

 

92,495

 

 

 

308,316

 

 

 

285,997

 

Facility lease expense

 

 

87,436

 

 

 

80,592

 

 

 

262,529

 

 

 

243,873

 

Utilities and other

 

 

123,877

 

 

 

112,832

 

 

 

357,210

 

 

 

337,866

 

General and administrative expenses

 

 

44,702

 

 

 

38,299

 

 

 

127,002

 

 

 

123,714

 

Depreciation and amortization

 

 

67,760

 

 

 

64,971

 

 

 

196,795

 

 

 

193,656

 

Impairment of long-lived assets

 

 

27,304

 

 

 

1,641

 

 

 

45,382

 

 

 

5,020

 

Loss on disposal of assets and other

 

 

2,453

 

 

 

7,826

 

 

 

8,057

 

 

 

28,666

 

Total cost of operations

 

 

763,286

 

 

 

671,497

 

 

 

2,222,345

 

 

 

2,111,611

 

Operating income

 

 

58,531

 

 

 

82,738

 

 

 

271,951

 

 

 

311,648

 

Interest expense

 

 

(24,967

)

 

 

(27,144

)

 

 

(75,037

)

 

 

(82,725

)

Loss on debt amendments and refinancing

 

 

 

 

 

 

 

 

 

 

 

(1,484

)

Interest income

 

 

3,903

 

 

 

2,761

 

 

 

10,062

 

 

 

7,861

 

Foreign currency exchange loss

 

 

(4,406

)

 

 

(3,126

)

 

 

(4,785

)

 

 

(6,947

)

Distributions from NCM

 

 

2,474

 

 

 

2,386

 

 

 

9,168

 

 

 

12,168

 

Interest expense - NCM

 

 

(4,666

)

 

 

(4,983

)

 

 

(14,180

)

 

 

(14,875

)

Equity in income of affiliates

 

 

15,139

 

 

 

14,158

 

 

 

33,982

 

 

 

29,208

 

Income before income taxes

 

 

46,008

 

 

 

66,790

 

 

 

231,161

 

 

 

254,854

 

Income taxes

 

 

14,053

 

 

 

16,169

 

 

 

64,152

 

 

 

59,592

 

Net income

 

$

31,955

 

 

$

50,621

 

 

$

167,009

 

 

$

195,262

 

Less: Net income attributable to noncontrolling interests

 

 

602

 

 

 

393

 

 

 

1,957

 

 

 

878

 

Net income attributable to Cinemark Holdings, Inc.

 

$

31,353

 

 

$

50,228

 

 

$

165,052

 

 

$

194,384

 

Earnings per share attributable to Cinemark Holdings, Inc.'s common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

 

$

0.43

 

 

$

1.41

 

 

$

1.66

 

Diluted

 

$

0.27

 

 

$

0.43

 

 

$

1.41

 

 

$

1.66

 

Weighted average shares outstanding - Diluted

 

 

116,600

 

 

 

116,322

 

 

 

116,577

 

 

 

116,288

 

 

Other Operating Data

(unaudited, in thousands)

 

 

 

As of

 

 

As of

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Balance sheet data:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

482,772

 

 

$

426,222

 

Theatre properties and equipment, net

 

$

1,682,401

 

 

$

1,833,133

 

Total assets

 

$

5,751,603

 

 

$

4,481,838

 

Long-term debt, including current portion, net of unamortized debt issue costs

 

$

1,779,647

 

 

$

1,780,611

 

Equity

 

$

1,496,451

 

 

$

1,456,117

 

 

Segment Information

(unaudited, in millions, except per patron data)

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

Constant

Currency (1)

 

 

Three Months Ended September 30,

 

 

 

 

 

Revenues

 

2019

 

 

2018

 

 

% Change

 

 

2019

 

 

2018

 

 

% Change

 

 

2019

 

 

% Change

 

 

2019

 

 

2018

 

 

% Change

 

Admissions revenues

 

$

351.1

 

 

$

333.3

 

 

 

5.3

%

 

$

103.4

 

 

$

94.3

 

 

 

9.7

%

 

$

114.7

 

 

 

21.6

%

 

$

454.5

 

 

$

427.6

 

 

 

6.3

%

Concession revenues

 

$

230.4

 

 

$

207.9

 

 

 

10.8

%

 

$

59.1

 

 

$

56.2

 

 

 

5.2

%

 

$

65.4

 

 

 

16.4

%

 

$

289.5

 

 

$

264.1

 

 

 

9.6

%

Other revenues

 

$

51.5

 

 

$

41.1

 

 

 

25.3

%

 

$

26.3

 

 

$

21.4

 

 

 

22.9

%

 

$

29.9

 

 

 

39.7

%

 

$

77.8

 

 

$

62.5

 

 

 

24.5

%

Total revenues

 

$

633.0

 

 

$

582.3

 

 

 

8.7

%

 

$

188.8

 

 

$

171.9

 

 

 

9.8

%

 

$

210.0

 

 

 

22.2

%

 

$

821.8

 

 

$

754.2

 

 

 

9.0

%

Attendance

 

 

44.1

 

 

 

43.7

 

 

 

0.9

%

 

 

29.2

 

 

 

26.1

 

 

 

11.9

%

 

 

 

 

 

 

 

 

 

 

73.3

 

 

 

69.8

 

 

 

5.0

%

Average ticket price

 

$

7.96

 

 

$

7.63

 

 

 

4.3

%

 

$

3.54

 

 

$

3.61

 

 

 

(1.9

)%

 

$

3.93

 

 

 

8.9

%

 

$

6.20

 

 

$

6.13

 

 

 

1.1

%

Concession revenues per patron

 

$

5.22

 

 

$

4.76

 

 

 

9.7

%

 

$

2.02

 

 

$

2.15

 

 

 

(6.0

)%

 

$

2.24

 

 

 

4.2

%

 

$

3.95

 

 

$

3.78

 

 

 

4.5

%

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

Cost of Operations

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

Constant

Currency (1)

2019

 

 

2019

 

 

2018

 

Film rentals and advertising

 

$

203.5

 

 

$

185.1

 

 

$

51.4

 

 

$

45.0

 

 

$

57.1

 

 

$

254.9

 

 

$

230.1

 

Concession supplies

 

$

38.6

 

 

$

31.2

 

 

$

12.9

 

 

$

11.5

 

 

$

14.4

 

 

$

51.5

 

 

$

42.7

 

Salaries and wages

 

$

83.2

 

 

$

73.2

 

 

$

20.1

 

 

$

19.3

 

 

$

22.6

 

 

$

103.3

 

 

$

92.5

 

Facility lease expense

 

$

64.5

 

 

$

61.1

 

 

$

22.9

 

 

$

19.5

 

 

$

24.8

 

 

$

87.4

 

 

$

80.6

 

Utilities and other

 

$

91.7

 

 

$

83.0

 

 

$

32.2

 

 

$

29.9

 

 

$

36.0

 

 

$

123.9

 

 

$

112.9

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

Constant

Currency (1)

 

 

Nine Months Ended September 30,

 

 

 

 

 

Revenues

 

2019

 

 

2018

 

 

% Change

 

 

2019

 

 

2018

 

 

% Change

 

 

2019

 

 

% Change

 

 

2019

 

 

2018

 

 

% Change

 

Admissions revenues

 

$

1,066.9

 

 

$

1,091.5

 

 

 

(2.3

)%

 

$

304.2

 

 

$

297.6

 

 

 

2.2

%

 

$

357.3

 

 

 

20.1

%

 

$

1,371.1

 

 

$

1,389.1

 

 

 

(1.3

)%

Concession revenues

 

$

704.7

 

 

$

661.3

 

 

 

6.6

%

 

$

181.4

 

 

$

169.9

 

 

 

6.8

%

 

$

210.6

 

 

 

24.0

%

 

$

886.1

 

 

$

831.2

 

 

 

6.6

%

Other revenues

 

$

159.2

 

 

$

134.9

 

 

 

18.0

%

 

$

77.9

 

 

$

68.0

 

 

 

14.6

%

 

$

94.2

 

 

 

38.5

%

 

$

237.1

 

 

$

202.9

 

 

 

16.9

%

Total revenues

 

$

1,930.8

 

 

$

1,887.7

 

 

 

2.3

%

 

$

563.5

 

 

$

535.5

 

 

 

5.2

%

 

$

662.1

 

 

 

23.6

%

 

$

2,494.3

 

 

$

2,423.2

 

 

 

2.9

%

Attendance

 

 

132.9

 

 

 

138.9

 

 

 

(4.3

)%

 

 

82.9

 

 

 

75.8

 

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

215.8

 

 

 

214.7

 

 

 

0.5

%

Average ticket price

 

$

8.03

 

 

$

7.86

 

 

 

2.2

%

 

$

3.67

 

 

$

3.93

 

 

 

(6.6

)%

 

$

4.31

 

 

 

9.7

%

 

$

6.35

 

 

$

6.47

 

 

 

(1.9

)%

Concession revenues per patron

 

$

5.30

 

 

$

4.76

 

 

 

11.3

%

 

$

2.19

 

 

$

2.24

 

 

 

(2.2

)%

 

$

2.54

 

 

 

13.4

%

 

$

4.11

 

 

$

3.87

 

 

 

6.2

%

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

Cost of Operations

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

Constant

Currency (1)

2019

 

 

2019

 

 

2018

 

Film rentals and advertising

 

$

610.3

 

 

$

616.7

 

 

$

149.4

 

 

$

141.5

 

 

$

175.6

 

 

$

759.7

 

 

$

758.2

 

Concession supplies

 

$

117.6

 

 

$

98.1

 

 

$

39.7

 

 

$

36.5

 

 

$

46.2

 

 

$

157.3

 

 

$

134.6

 

Salaries and wages

 

$

247.4

 

 

$

224.3

 

 

$

60.9

 

 

$

61.7

 

 

$

72.5

 

 

$

308.3

 

 

$

286.0

 

Facility lease expense

 

$

194.1

 

 

$

183.1

 

 

$

68.4

 

 

$

60.8

 

 

$

77.8

 

 

$

262.5

 

 

$

243.9

 

Utilities and other

 

$

260.8

 

 

$

245.7

 

 

$

96.4

 

 

$

92.2

 

 

$

113.8

 

 

$

357.2

 

 

$

337.9

 

   (1) 

Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2018. We translate the results of our international operating segment from local currencies into U.S. dollars using currency rates in effect at different points in time in accordance with U.S. GAAP. Significant changes in foreign currency exchange rates from one period to the next can result in meaningful variations in reported results.    We are providing constant currency amounts for our international operating segment to present a period-to-period comparison of business performance that excludes the impact of foreign currency fluctuations.

 

Other Segment Information

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

132,347

 

 

$

132,652

 

 

$

453,404

 

 

$

476,907

 

International

 

 

37,411

 

 

 

35,740

 

 

 

113,346

 

 

 

106,518

 

Total Adjusted EBITDA (1)

 

$

169,758

 

 

$

168,392

 

 

$

566,750

 

 

$

583,425

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

50,679

 

 

$

65,458

 

 

$

148,609

 

 

$

195,104

 

International

 

 

20,664

 

 

 

17,915

 

 

 

37,903

 

 

 

50,858

 

Total capital expenditures

 

$

71,343

 

 

$

83,373

 

 

$

186,512

 

 

$

245,962

 

(1)  

Adjusted EBITDA represents net income before income taxes, depreciation and amortization expense and other items, as calculated below. 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.

 

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

31,955

 

 

$

50,621

 

 

$

167,009

 

 

$

195,262

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

14,053

 

 

 

16,169

 

 

 

64,152

 

 

 

59,592

 

Interest expense (a)

 

 

24,967

 

 

 

27,144

 

 

 

75,037

 

 

 

82,725

 

Other income, net (b)

 

 

(9,970

)

 

 

(8,810

)

 

 

(25,079

)

 

 

(15,247

)

Loss on debt amendments and refinancing

 

 

 

 

 

 

 

 

 

 

 

1,484

 

Distributions from DCIP (c)

 

 

2,694

 

 

 

 

 

 

7,912

 

 

 

5,201

 

Other cash distributions from equity investees (d)

 

 

5,804

 

 

 

4,786

 

 

 

20,251

 

 

 

15,840

 

Depreciation and amortization (a)

 

 

67,760

 

 

 

64,971

 

 

 

196,795

 

 

 

193,656

 

Impairment of long-lived assets

 

 

27,304

 

 

 

1,641

 

 

 

45,382

 

 

 

5,020

 

Loss on disposal of assets and other

 

 

2,453

 

 

 

7,826

 

 

 

8,057

 

 

 

28,666

 

Non-cash rent (e)

 

 

(1,102

)

 

 

 

 

 

(3,252

)

 

 

 

Deferred lease expenses - theatres (a)(f)

 

 

 

 

 

216

 

 

 

 

 

 

(488

)

Deferred lease expenses - projectors (a)(g)

 

 

 

 

 

(236

)

 

 

 

 

 

(464

)

Amortization of long-term prepaid rents (a)(f)

 

 

 

 

 

578

 

 

 

 

 

 

1,814

 

Share based awards compensation expense (h)

 

 

3,840

 

 

 

3,486

 

 

 

10,486

 

 

 

10,364

 

Adjusted EBITDA

 

$

169,758

 

 

$

168,392

 

 

$

566,750

 

 

$

583,425

 

 (a) 

Amounts for the three and nine months ended September 30, 2019 were impacted by the adoption of ASC Topic 842 and the resulting change in the classification of certain of the Company’s leases. 

 (b) 

Includes loss on debt amendments and refinancing, interest income, foreign currency exchange loss, interest expense – NCM and equity in income of affiliates.

 (c) 

Cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP.

 (d) 

Cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances.

 (e) 

The adoption of ASC Topic 842 impacted how the Company amortizes lease related assets and liabilities such as deferred lease expenses, favorable and unfavorable lease intangible assets, long-term prepaid rents and deferred lease incentives.  Beginning January 1, 2019, these items are amortized to facility lease expense for theatre operating leases and utilities and other for equipment operating leases.

 (f) 

Non-cash expense included in facility lease expense.

 (g) 

Non-cash expense included in utilities and other.

 (h) 

Non-cash expense included in general and administrative expenses.

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191105005397/en/

CONTACT: Financial and Media Contact :

Chanda Brashears – 972-665-1671 orcbrashears@cinemark.com

KEYWORD: TEXAS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: FILM & MOTION PICTURES ENTERTAINMENT

SOURCE: Cinemark Holdings, Inc.

Copyright Business Wire 2019.

PUB: 11/05/2019 06:30 AM/DISC: 11/05/2019 06:30 AM

http://www.businesswire.com/news/home/20191105005397/en