Cinemark Holdings, Inc. Reports Results for Third Quarter 2009
PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor, today reported results for the three and nine months ended September 30, 2009.
Cinemark Holdings, Inc.'s attendance for the three months ended September 30, 2009 increased by 4.5% compared to the three months ended September 30, 2008. The Company's total revenues for the three months ended September 30, 2009 increased 4.3% to $496.8 million from $476.2 million for the three months ended September 30, 2008. During the three months ended September 30, 2009, admissions revenues increased 4.7% to $322.9 million and concession revenues increased 4.7% to $153.0 million.
Adjusted EBITDA for the three months ended September 30, 2009 increased 2.6% to $104.8 million from $102.1 million for the three months ended September 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 September 30, 2009 increased 2.8% to $21.0 million compared to $20.4 million for the three months ended September 30, 2008. Earnings per diluted share attributable to Cinemark Holdings, Inc. were $0.19 for the three months ended September 30, 2009 and the three months ended September 30, 2008.
"Our growth outpaced the domestic industry box office for the fourth consecutive quarter as our state-of-the-art theatres in diversified markets and organic screen growth continue to drive positive results," stated Alan Stock, Cinemark's Chief Executive Officer. "South American countries continue to outpace the U.S. economic recovery and we continue to benefit from solid industry trends and the expansion of our international portfolio. The fourth quarter box office is off to a good start, as patrons continue to enjoy the cinema as an exciting, low cost form of entertainment. We are optimistic about the incremental growth opportunities ahead of us including our digital cinema and XD Extreme Digital initiatives, both of which will allow us to take advantage of the continued expansion of 3D and alternative content and contribute to our long-term growth."
Cinemark Holdings, Inc.'s attendance for the nine months ended September 30, 2009 increased by 9.1% compared to the nine months ended September 30, 2008. The Company's total revenues for the nine months ended September 30, 2009 increased 7.9% to $1,440.1 million from $1,334.5 million for the nine months ended September 30, 2008. During the nine months ended September 30, 2009, admissions revenues increased 8.9% to $941.9 million and concession revenues increased 7.9% to $441.9 million.
Adjusted EBITDA for the nine months ended September 30, 2009 increased 13.1% to $323.6 million from $286.1 million for the nine months ended September 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 nine months ended September 30, 2009 increased 38.9% to $57.2 million from $41.2 million for the nine months ended September 30, 2008. Earnings per diluted share attributable to Cinemark Holdings, Inc. were $0.52 for the nine months ended September 30, 2009 compared to $0.38 for the nine months ended September 30, 2008.
On September 30, 2009, the Company's aggregate screen count was 4,908. As of September 30, 2009, the Company had signed commitments to open three new theatres with 30 screens by the end of 2009 and open ten new theatres with 112 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 34909332. The replay will be available until November 16, 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 September 30, 2009, Cinemark operates 426 theatres and 4,908 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 Nine months ended
September 30, September 30,
2009 2008 2009 2008
Statement of income data:
Revenues
Admissions $ 322,915 $ 308,453 $ 941,886 $ 865,245
Concession 152,938 146,076 441,895 409,707
Other 20,972 21,694 56,352 59,521
Total revenues 496,825 476,223 1,440,133 1,334,473
Cost of operations
Film rentals and advertising 175,993 169,260 513,945 471,199
Concession supplies 23,485 24,489 67,229 66,443
Facility lease expense 61,545 58,936 176,478 171,382
Other theatre operating 114,016 104,685 313,332 291,169
expenses
General and administrative 23,517 22,741 68,980 67,808
expenses
Depreciation and amortization 38,508 38,817 112,845 115,467
Impairment of long-lived 3,146 2,316 8,115 8,145
assets
Loss on sale of assets and 944 2,301 2,402 3,211
other
Total cost of operations 441,154 423,545 1,263,326 1,194,824
Operating income 55,671 52,678 176,807 139,649
Interest expense (1) (25,893) (27,613) (77,006) (89,747)
Distributions from NCM 4,162 3,592 15,768 12,177
Loss on early retirement of (1,083) (27,878) (40)
debt
Other income 1,384 3,689 3,671 8,806
Income before income taxes 34,241 32,346 91,362 70,845
Income taxes 12,186 10,367 31,149 25,848
Net income $ 22,055 $ 21,979 $ 60,213 $ 44,997
Less: Net income attributable 1,044 1,531 2,967 3,775
to noncontrolling interests
Net income attributable to $ 21,011 $ 20,448 $ 57,246 $ 41,222
Cinemark Holdings, Inc.
Earnings per share
attributable to Cinemark
Holdings, Inc.'s common
stockholders:
Basic $ 0.19 $ 0.19 $ 0.52 $ 0.38
Diluted $ 0.19 $ 0.19 $ 0.52 $ 0.38
Other financial data:
Adjusted EBITDA (2) $ 104,839 $ 102,138 $ 323,619 $ 286,135
As of As of
September 30, December 31,
2009 2008
Balance sheet data:
Cash and cash equivalents $ 359,103 $ 349,603
Theatre properties and 1,218,658 1,208,283
equipment, net
Total assets 3,178,716 3,065,708
Long-term debt, including 1,546,624 1,508,462
current portion
Stockholders' equity 882,712 824,227
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Other operating data:
Attendance (patrons):
Domestic 40,984 39,373 122,174 112,223
International 19,411 18,425 53,464 48,690
Worldwide 60,395 57,798 175,638 160,913
Average ticket price (in dollars):
Domestic $ 6.02 $ 5.97 $ 6.13 $ 5.99
International $ 3.92 $ 3.97 $ 3.62 $ 3.96
Worldwide $ 5.35 $ 5.34 $ 5.36 $ 5.38
Concession revenues per patron (in
dollars):
Domestic $ 2.92 $ 2.86 $ 2.92 $ 2.88
International $ 1.71 $ 1.83 $ 1.59 $ 1.77
Worldwide $ 2.53 $ 2.53 $ 2.52 $ 2.55
Average screen count (month end average):
Domestic 3,842 3,688 3,805 3,669
International 1,059 1,021 1,044 1,014
Worldwide 4,901 4,709 4,849 4,683
Segment Information
(unaudited, in thousands)
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Revenues
U.S. $ 378,046 $ 358,935 $ 1,139,065 $ 1,027,982
International 119,866 118,448 304,024 309,457
Eliminations (1,087) (1,160) (2,956) (2,966)
Total revenues $ 496,825 $ 476,223 $ 1,440,133 $ 1,334,473
Adjusted EBITDA (2)
U.S. $ 77,907 $ 75,163 $ 260,202 $ 218,854
International 26,932 26,975 63,417 67,281
Total adjusted EBITDA $ 104,839 $ 102,138 $ 323,619 $ 286,135
Capital expenditures
U.S. $ 15,429 $ 12,296 $ 58,851 $ 50,681
International 9,256 7,123 26,752 20,654
Total capital expenditures $ 24,685 $ 19,419 $ 85,603 $ 71,335
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Net income $ 22,055 $ 21,979 $ 60,213 $ 44,997
Income taxes 12,186 10,367 31,149 25,848
Interest expense (1) 25,893 27,613 77,006 89,747
Loss on early retirement of debt 1,083 - 27,878 40
Other income (1,384) (3,689) (3,671) (8,806)
Depreciation and amortization 38,508 38,817 112,845 115,467
Impairment of long-lived assets 3,146 2,316 8,115 8,145
Loss on sale of assets and other 944 2,301 2,402 3,211
Deferred lease expenses (3) 1,067 710 3,189 2,856
Amortization of long-term prepaid 323 463 1,074 1,292
rents (3)
Share based awards compensation 1,018 1,261 3,419 3,338
expense (4)
Adjusted EBITDA (2) $ 104,839 $ 102,138 $ 323,619 $ 286,135
(1) Includes amortization of debt issue costs and excludes capitalized interest.
(2) 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 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 November 9, 2009