Cinemark Holdings, Inc. Reports Results for Fourth Quarter 2009 and Declares Quarterly Cash Dividend
PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYSE: CNK), the second largest motion picture exhibitor in the world in terms of both attendance and the number of screens in operation, today reported results for the three months and year ended December 31, 2009.
Cinemark Holdings, Inc.'s revenues for the three months ended December 31, 2009 increased 31.5% to $536.4 million from $407.8 million for the three months ended December 31, 2008. For the three months ended December 31, 2009, admissions revenues increased 34.3% to $351.5 million and concession revenues increased 28.7% to $161.0 million. The increases were primarily related to a 21.2% increase in attendance, a 10.8% increase in average ticket prices and a 6.5% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended December 31, 2009 increased 44.9% to $121.9 million, from $84.2 million for the three months ended December 31, 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 December 31, 2009 was $39.9 million, compared to a net loss of $89.5 million for the three months ended December 31, 2008. The net loss in 2008 was primarily due to $105.4 million of non-cash impairment charges.
"Cinemark concluded a successful year with a very strong fourth quarter as we again outperformed the overall domestic box office. Cinemark's geographic diversity continues to be a key strategic advantage as we add additional new state-of-the-art theatres to our footprint both in the U.S. and internationally. Once DCIP funding occurs, we are set to accelerate the pace of Cinemark's digital screen installations, which will allow us to benefit further from the expanding pipeline of 3D motion pictures. During 2010, we will also continue to expand our footprint of XD Extreme Digital auditoriums, adding approximately 30 new XD auditoriums to our existing 16," stated Alan Stock, Cinemark's Chief Executive Officer.
Cinemark Holdings, Inc.'s revenues for the year ended December 31, 2009 increased 13.4% to $1,976.5 million from $1,742.3 million for the year ended December 31, 2008. For the year ended December 31, 2009, admissions revenues increased 14.8% to $1,293.4 million and concession revenues increased 12.7% to $602.9 million. The increases were primarily related to a 12.0% increase in attendance and a 2.4% increase in average ticket prices.
Adjusted EBITDA for the year ended December 31, 2009 increased 20.3% to $445.5 million from $370.3 million for the year ended December 31, 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 year ended December 31, 2009 was $97.1 million compared to a net loss of $48.3 million for the year ended December 31, 2008.
On December 31, 2009, the Company's aggregate screen count was 4,896. As of December 31, 2009, Cinemark had commitments to open nine new theatres with 77 screens during 2010 and four additional new theatres with 60 screens subsequent to 2010.
The Company's board of directors declared a cash dividend for its 2009 fourth quarter of $0.18 per share of common stock. The dividend will be paid on March 19, 2010 to stockholders of record on March 5, 2010.
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 www.cinemark.com in the Investor Relations section and archived for a limited time immediately following the call.
Call Replay: until February 28, 2010 via 800/642-1687 or 706/645-9291, passcode: 56042300.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 424 theatres with 4,896 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of December 31, 2009. 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 Years ended
December 31, December 31,
2009 2008 2009 2008
Statement of Operations
Data:
Revenues
Admissions $ 351,492 $ 261,732 $ 1,293,378 $ 1,126,977
Concession 160,985 125,129 602,880 534,836
Other 23,890 20,953 80,242 80,474
Total revenues $ 536,367 $ 407,814 $ 1,976,500 $ 1,742,287
Cost of operations
Film rentals and 194,215 141,049 708,160 612,248
advertising
Concession supplies 24,689 20,175 91,918 86,618
Facility lease expense 62,301 54,213 238,779 225,595
Other theatre operating 112,765 95,595 426,097 386,764
expenses
General and 27,517 22,980 96,497 90,788
administrative expenses
Depreciation and 36,670 42,567 149,515 158,034
amortization
Impairment of 3,743 105,387 11,858 113,532
long-lived assets
Loss on sale of assets 800 5,277 3,202 8,488
and other
Total cost of operations 462,700 487,243 1,726,026 1,682,067
Operating income (loss) 73,667 (79,429 ) 250,474 60,220
Interest expense (1) (25,499 ) (26,311 ) (102,505 ) (116,058 )
Gain (loss) on early - 1,738 (27,878 ) 1,698
retirement of debt
Distributions from NCM 5,054 6,661 20,822 18,838
Other income 1,017 3,121 4,688 11,927
Income (loss) before 54,239 (94,220 ) 145,601 (23,375 )
income taxes
Income taxes 13,696 (4,793 ) 44,845 21,055
Net income (loss) $ 40,543 $ (89,427 ) $ 100,756 $ (44,430 )
Less: Net income
attributable to 681 120 3,648 3,895
noncontrolling interests
Net income (loss)
attributable to Cinemark $ 39,862 $ (89,547 ) $ 97,108 $ (48,325 )
Holdings, Inc.
Earnings (loss) per
share attributable to
Cinemark Holdings,
Inc.'s common
stockholders:
Basic $ 0.36 $ (0.82 ) $ 0.89 $ (0.45 )
Diluted $ 0.36 $ (0.82 ) $ 0.87 $ (0.45 )
Weighted average diluted 110,758 108,291 110,255 107,341
shares outstanding
Other Financial Data:
Adjusted EBITDA (2) $ 121,905 $ 84,157 $ 445,524 $ 370,292
(1) Includes amortization of debt issue costs and excludes capitalized
interest.
Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of
(2) Adjusted EBITDA to net income (loss) is provided in the financial
schedules accompanying this press release.
As of
December 31,
2009 2008
Balance Sheet Data (unaudited, in thousands):
Cash and cash equivalents $ 437,936 $ 349,603
Theatre properties and equipment, net 1,219,588 1,208,283
Total assets 3,276,448 3,065,708
Long-term debt, including current portion 1,543,705 1,508,462
Stockholders' equity 914,628 824,227
Segment Information
(unaudited, in thousands)
Three months ended Years ended
December 31, December 31,
2009 2008 2009 2008
Revenues
U.S. $ 419,671 $ 332,194 $ 1,558,736 $ 1,360,176
International 117,741 76,360 421,765 385,817
Eliminations (1,045 ) (740 ) (4,001 ) (3,706 )
Total revenues $ 536,367 $ 407,814 $ 1,976,500 $ 1,742,287
Adjusted EBITDA
U.S. $ 101,483 $ 72,633 $ 361,685 $ 291,487
International 20,422 11,524 83,839 78,805
Total Adjusted EBITDA $ 121,905 $ 84,157 $ 445,524 $ 370,292
Capital Expenditures
U.S. $ 22,844 $ 26,512 $ 81,695 $ 77,193
International 16,350 8,262 43,102 28,916
Total capital $ 39,194 $ 34,774 $ 124,797 $ 106,109
expenditures
Additional Segment Information(1)
(unaudited)
U.S. Operating Segment International Operating Consolidated
Segment
Three Months Three Months Three Months
Ended Ended Ended
December 31, December 31, December 31,
% % %
2009 2008 Change 2009 2008 Change 2009 2008 Change
Admissions $ 277.3 $ 216.6 28.0 % $ 74.2 $ 45.1 64.5 % $ 351.5 $ 261.7 34.3 %
revenues
Concession $ 128.2 $ 103.0 24.5 % $ 32.8 $ 22.1 48.4 % $ 161.0 $ 125.1 28.7 %
revenues
Other
revenues $ 13.1 $ 11.9 10.1 % $ 10.8 $ 9.1 18.7 % $ 23.9 $ 21.0 13.8 %
(2)
Total
revenues $ 418.6 $ 331.5 26.3 % $ 117.8 $ 76.3 54.4 % $ 536.4 $ 407.8 31.5 %
(2)
Attendance 42.9 35.7 20.2 % 18.2 14.7 23.8 % 61.1 50.4 21.2 %
Average
ticket $ 6.46 $ 6.07 6.4 % $ 4.08 $ 3.07 32.9 % $ 5.75 $ 5.19 10.8 %
price
Concession
revenues $ 2.99 $ 2.89 3.5 % $ 1.80 $ 1.50 20.0 % $ 2.64 $ 2.48 6.5 %
per patron
Revenues
per $ 109,216 $ 89,124 22.5 % $ 110,451 $ 73,671 49.9 % $ 109,485 $ 85,756 27.7 %
average
screen(2)
International
U.S. Operating Segment Operating Consolidated
Segment
Three Months Ended Three Months Ended Three Months Ended
December 31, December 31, December 31,
2009 2008 2009 2008 2009 2008
Film rentals
and $ 156.1 $ 118.9 $ 38.2 $ 22.1 $ 194.3 $ 141.0
advertising
Concession 16.5 14.1 8.2 6.1 24.7 20.2
supplies
Salaries and 44.4 38.5 9.9 7.2 54.3 45.7
wages
Facility
lease 45.9 41.9 16.4 12.3 62.3 54.2
expense
Utilities 40.8 38.3 17.6 11.6 58.4 49.9
and other
U.S. Operating Segment International Operating Consolidated
Segment
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
% % %
2009 2008 Change 2009 2008 Change 2009 2008 Change
Admissions $ 1,025.9 $ 889.1 15.4 % $ 267.5 $ 237.9 12.4 % $ 1,293.4 $ 1,127.0 14.8 %
revenues
Concession $ 485.2 $ 426.5 13.8 % $ 117.7 $ 108.3 8.7 % $ 602.9 $ 534.8 12.7 %
revenues
Other
revenues $ 43.6 $ 40.9 6.6 % $ 36.6 $ 39.6 (7.6 )% $ 80.2 $ 80.5 (0.4 )%
(2)
Total
revenues $ 1,554.7 $ 1,356.5 14.6 % $ 421.8 $ 385.8 9.3 % $ 1,976.5 $ 1,742.3 13.4 %
(2)
Attendance 165.1 147.9 11.6 % 71.6 63.4 12.9 % 236.7 211.3 12.0 %
Average
ticket $ 6.21 $ 6.01 3.3 % $ 3.74 $ 3.75 (0.3 )% $ 5.46 $ 5.33 2.4 %
price
Concession
revenues $ 2.94 $ 2.88 2.1 % $ 1.64 $ 1.71 (4.1 )% $ 2.55 $ 2.53 0.8 %
per patron
Revenues
per $ 408,017 $ 368,313 10.8 % $ 401,828 $ 378,252 6.2 % $ 406,681 $ 370,469 9.8 %
average
screen(2)
U.S. Operating International Operating Consolidated
Segment Segment
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2009 2008 2009 2008 2009 2008
Film rentals and $ 572.3 $ 494.6 $ 135.9 $ 117.6 $ 708.2 $ 612.2
advertising
Concession supplies 61.9 58.5 30.0 28.1 91.9 86.6
Salaries and wages 168.8 149.5 34.6 31.5 203.4 181.0
Facility lease 178.8 166.8 60.0 58.8 238.8 225.6
expense
Utilities and other 163.5 151.8 59.2 54.0 222.7 205.8
(1) Revenues and attendance are in millions. Average ticket price, concession revenues per patron and revenues per average screen are in dollars. Theatre operating costs are in millions.
(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 Years ended
December 31, December 31,
2009 2008 2009 2008
Net income (loss) $ 40,543 $ (89,427 ) $ 100,756 $ (44,430 )
Income taxes 13,696 (4,793 ) 44,845 21,055
Interest expense 25,499 26,311 102,505 116,058
(Gain) loss on early - (1,738 ) 27,878 (1,698 )
retirement of debt
Other income (1,017 ) (3,121 ) (4,688 ) (11,927 )
Depreciation and 36,670 42,567 149,515 158,034
amortization
Impairment of long-lived 3,743 105,387 11,858 113,532
assets
Loss on sale of assets and 800 5,277 3,202 8,488
other
Deferred lease expenses (2) 771 1,494 3,960 4,350
Amortization of long-term 315 425 1,389 1,717
prepaid rents (2)
Share based awards 885 1,775 4,304 5,113
compensation expense (3)
Adjusted EBITDA (1) $ 121,905 $ 84,157 $ 445,524 $ 370,292
Adjusted EBITDA as calculated in the chart above represents net income
(loss) before income taxes, interest expense, (gain) 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
(1) alternative to net income (loss) 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 general and administrative expenses.
Source: Cinemark Holdings, Inc.
Released February 25, 2010