Cinemark Holdings, Inc. Reports Results for Second Quarter 2009
PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor, today reported results for the three and six months ended June 30, 2009.
Cinemark Holdings, Inc.'s attendance for the three months ended June 30, 2009 increased by 14.4% compared to the three months ended June 30, 2008. The Company's total revenues for the three months ended June 30, 2009 increased 13.2% to $517.5 million from $457.2 million for the three months ended June 30, 2008. During the three months ended June 30, 2009, admissions revenues increased 15.2% to $339.1 million and concession revenues increased 12.3% to $158.9 million.
Adjusted EBITDA for the three months ended June 30, 2009 increased 21.0% to $120.8 million from $99.8 million for the three months ended June 30, 2008. 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, 2009 increased 20.6% to $18.7 million compared to $15.5 million for the three months ended June 30, 2008. Net income for the three months ended June 30, 2009 included a loss on early retirement of debt of approximately $26.8 million, before income taxes. The loss on early retirement of debt was a result of the repurchase of approximately $402.5 million aggregate principal amount of the Company's 9 % senior discount notes due 2014, utilizing the proceeds received from the Company's issuance of $470 million of senior notes due 2019.
"Our strong start to the year accelerated during the second quarter as we benefited from a solid slate of films and outperformed the overall domestic industry box office results. In addition, our international attendance growth continues to outpace U.S. attendance growth," stated Alan Stock, Cinemark's Chief Executive Officer. "Consumers continue to prove they value the cinema as one of the most attractive forms of out-of-home entertainment."
Cinemark Holdings, Inc.'s attendance for the six months ended June 30, 2009 increased by 11.7% compared to the six months ended June 30, 2008. The Company's total revenues for the six months ended June 30, 2009 increased 9.9% to $943.3 million from $858.2 million for the six months ended June 30, 2008. During the six months ended June 30, 2009, admissions revenues increased 11.2% to $619.0 million and concession revenues increased 9.6% to $288.9 million.
Adjusted EBITDA for the six months ended June 30, 2009 increased 18.9% to $218.8 million from $184.0 million for the six months ended June 30, 2008. 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, 2009 was $36.2 million compared to $20.8 million for the six months ended June 30, 2008.
On June 30, 2009, the Company's aggregate screen count was 4,889. As of June 30, 2009, the Company had signed commitments to open four new theatres with 34 screens by the end of 2009 and open eight new theatres with 92 screens subsequent to 2009.
Conference Call
The Company will host a conference call and audio webcast with investors, analysts and other interested parties today at 8:30 A.M. Eastern time. The call can be accessed live over the phone by dialing (800) 374-1346, or for international callers, (706) 679-3149. A replay will be available shortly after the call and can be accessed by dialing (800) 642-1687, or for international callers, (706) 645-9291. The passcode for the replay is 21534701. The replay will be available until August 10, 2009.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark Holdings, Inc. is the second largest motion picture exhibitor in the world in terms of both attendance and the number of screens in operation. As of June 30, 2009, Cinemark operates 424 theatres and 4,889 screens in 39 states in the United States and one Canadian province and internationally in 13 countries, including Brazil, Mexico, Chile, Colombia, Argentina, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala. For more information go to www.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 March 13, 2009 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,
2009 2008 2009 2008
Statement of income
data:
Revenues
Admissions $ 339,088 $ 294,425 $ 618,971 $ 556,792
Concession 158,926 141,474 288,957 263,631
Other 19,494 21,335 35,380 37,827
Total revenues 517,508 457,234 943,308 858,250
Cost of operations
Film rentals and 190,826 163,799 337,952 301,939
advertising
Concession supplies 24,027 23,205 43,744 41,954
Facility lease expense 59,195 56,124 114,933 112,446
Other theatre operating 106,238 95,732 199,316 186,484
expenses
General and 23,675 24,495 45,463 45,067
administrative expenses
Depreciation and 37,881 38,539 74,337 76,650
amortization
Impairment of 3,930 1,342 4,969 5,829
long-lived assets
Loss on sale of assets 1,186 1,109 1,458 910
and other
Total cost of 446,958 404,345 822,172 771,279
operations
Operating income 70,550 52,889 121,136 86,971
Interest expense (1) (25,649 ) (30,061 ) (51,113 ) (62,134 )
Distributions from NCM 5,027 3,403 11,606 8,585
Loss on early (26,795 ) (26,795 ) (40 )
retirement of debt
Other income 994 2,224 2,287 5,117
Income before income 24,127 28,455 57,121 38,499
taxes
Income taxes 4,320 11,840 18,963 15,481
Net income $ 19,807 $ 16,615 $ 38,158 $ 23,018
Less: Net income
attributable to 1,137 1,092 1,923 2,244
noncontrolling
interests
Net income attributable
to Cinemark Holdings, $ 18,670 $ 15,523 $ 36,235 $ 20,774
Inc.
Earnings per share
attributable to
Cinemark Holdings,
Inc.'s common
stockholders:
Basic $ 0.17 $ 0.14 $ 0.33 $ 0.19
Diluted $ 0.17 $ 0.14 $ 0.33 $ 0.19
Other financial data:
Adjusted EBITDA (2) $ 120,792 $ 99,838 $ 218,780 $ 183,998
As of As of
June 30, December 31,
2009 2008
Balance sheet data:
Cash and cash $ 382,737 $ 349,603
equivalents
Theatre properties and 1,224,132 1,208,283
equipment, net
Total assets 3,208,046 3,065,708
Long-term debt,
including current 1,566,568 1,508,462
portion
Stockholders' equity 864,309 824,227
Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
Other operating data:
Attendance (patrons):
Domestic 43,922 38,559 81,190 72,850
International 17,198 14,830 34,053 30,265
Worldwide 61,120 53,389 115,243 103,115
Average ticket price (in dollars):
Domestic $ 6.29 $ 6.07 $ 6.18 $ 6.00
International $ 3.66 $ 4.06 $ 3.45 $ 3.96
Worldwide $ 5.55 $ 5.51 $ 5.37 $ 5.40
Concession per patron (in dollars):
Domestic $ 2.99 $ 2.96 $ 2.92 $ 2.89
International $ 1.61 $ 1.84 $ 1.52 $ 1.74
Worldwide $ 2.60 $ 2.65 $ 2.51 $ 2.56
Average screen count (month end
average):
Domestic 3,825 3,672 3,789 3,661
International 1,037 1,011 1,037 1,011
Worldwide 4,862 4,683 4,826 4,672
Segment Information
(unaudited, in thousands)
Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
Revenues
U.S. $ 419,575 $ 360,247 $ 761,019 $ 669,047
International 98,962 97,900 184,158 191,009
Eliminations (1,029 ) (913 ) (1,869 ) (1,806 )
Total revenues $ 517,508 $ 457,234 $ 943,308 $ 858,250
Adjusted EBITDA (2)
U.S. $ 100,576 $ 78,815 $ 182,295 $ 143,691
International 20,216 21,023 36,485 40,307
Total adjusted EBITDA $ 120,792 $ 99,838 $ 218,780 $ 183,998
Capital expenditures
U.S. $ 27,171 $ 12,490 $ 43,422 $ 38,385
International 10,875 8,625 17,496 13,531
Total capital expenditures $ 38,046 $ 21,115 $ 60,918 $ 51,916
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
Net income $ 19,807 $ 16,615 $ 38,158 $ 23,018
Income taxes 4,320 11,840 18,963 15,481
Interest expense (1) 25,649 30,061 51,113 62,134
Loss on early retirement of 26,795 26,795 40
debt
Other income (994 ) (2,224 ) (2,287 ) (5,117 )
Depreciation and amortization 37,881 38,539 74,337 76,650
Impairment of long-lived 3,930 1,342 4,969 5,829
assets
Loss on sale of assets and 1,186 1,109 1,458 910
other
Deferred lease expenses (3) 1,034 914 2,121 2,146
Amortization of long-term 360 425 750 829
prepaid rents (3)
Share based awards 824 1,217 2,403 2,078
compensation expense (4)
Adjusted EBITDA (2) $ 120,792 $ 99,838 $ 218,780 $ 183,998
(1) Includes amortization of debt issue costs and excludes capitalized
interest.
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, 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
(2) 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.
(3) Non-cash expense included in facility lease expense.
(4) Non-cash expense included in general and administrative expenses.
Source: Cinemark Holdings, Inc.
Released August 7, 2009