Cinemark Holdings, Inc. Reports Q3 2010 Adjusted EBITDA of $125.1 Million on Revenues of $560.2 Million

- Raises Quarterly Cash Dividend to $0.21 Per Share -

PLANO, Texas--(BUSINESS WIRE)-- 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, 2010. Separately, Cinemark Holdings, Inc.'s Board of Directors approved a new dividend policy, under which the Company has increased its annual dividend 16.7% to $0.84 per share of common stock, or $0.21 per share quarterly.

Cinemark Holdings, Inc.'s revenues for the three months ended September 30, 2010 increased 12.8% to $560.2 million from $496.8 million for the three months ended September 30, 2009. For the three months ended September 30, 2010, admissions revenues increased 13.8% to $367.6 million and concession revenues increased 11.2% to $170.2 million. The increases were primarily related to an 8.8% increase in attendance, a 4.7% increase in average ticket price and a 2.4% increase in concession revenues per patron.

Adjusted EBITDA for the three months ended September 30, 2010 increased 19.4% to $125.1 million from $104.8 million for the three months ended September 30, 2009. 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, 2010 increased 58.6% to $33.3 million compared to $21.0 million for the three months ended September 30, 2009.

"The 2010 third quarter marked the eighth consecutive reporting period in which Cinemark's domestic box office performance exceeded the industry," stated Cinemark Holdings, Inc.'s Chief Executive Officer Alan Stock. "In addition, our international circuit continues to deliver impressive revenue, attendance and Adjusted EBITDA growth."

Cinemark Holdings, Inc.'s revenues for the nine months ended September 30, 2010 increased 12.2% to $1,616.2 million from $1,440.1 million for the nine months ended September 30, 2009. During the nine months ended September 30, 2010, admissions revenues increased 12.9% to $1,063.7 million and concession revenues increased 10.5% to $488.5 million. The increases were primarily related to a 5.0% increase in attendance, a 7.6% increase in average ticket price and a 5.2% increase in concession revenues per patron.

Adjusted EBITDA for the nine months ended September 30, 2010 increased 15.0% to $372.0 million from $323.6 million for the nine months ended September 30, 2009. 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, 2010 increased 89.0% to $108.1 million compared to $57.2 million for the nine months ended September 30, 2009. Net income for the nine months ended September 30, 2009 included a loss on early retirement of debt of approximately $27.9 million, before income taxes.

On September 30, 2010, the Company's aggregate screen count was 4,938. As of September 30, 2010, the Company had signed commitments to open seven new theatres with 62 screens by the end of 2010 and open 17 new theatres and 170 screens subsequent to 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 November 8, 2010 via 800/642-1687 or 706/645-9291, passcode: 21039979.

About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 428 theatres with 4,938 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of September 30, 2010. 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 10, 2010 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, except per share amounts)

                                     Three months ended    Nine months ended

                                     September 30,         September 30,

                                     2010       2009       2010        2009

Statement of income data:

Revenues

Admissions                           $ 367,662  $ 322,915  $1,063,737  $ 941,886

Concession                           170,130    152,938    488,464     441,895

Other                                22,443     20,972     64,034      56,352

Total revenues                       560,235    496,825    1,616,235   1,440,133

Cost of operations

Film rentals and advertising         200,495    175,993    582,864     513,945

Concession supplies                  26,565     23,485     73,465      67,229

Facility lease expense               66,587     61,545     191,292     176,478

Other theatre operating expenses     121,133    114,016    342,794     313,332

General and administrative expenses  28,113     23,517     78,589      68,980

Depreciation and amortization        34,984     38,508     103,990     112,845

Impairment of long-lived assets      1,022      3,146      6,057       8,115

Loss on sale of assets and other     7,548      944        11,906      2,402

Total cost of operations             486,447    441,154    1,390,957   1,263,326

Operating income                     73,788     55,671     225,278     176,807

Interest expense (1)                 (28,938)   (25,893)   (83,553)    (77,006)

Distributions from NCM               4,263      4,162      15,541      15,768

Loss on early retirement of debt     --         (1,083)    --          (27,878)

Other income                         647        1,384      5           3,671

Income before income taxes           49,760     34,241     157,271     91,362

Income taxes                         15,877     12,186     45,918      31,149

Net income                           $ 33,883   $ 22,055   $ 111,353   $ 60,213

Less: Net income attributable to     551        1,044      3,246       2,967
noncontrolling interests

Net income attributable to Cinemark  $ 33,332   $ 21,011   $ 108,107   $ 57,246
Holdings, Inc.

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

Basic                                $ 0.29     $ 0.19     $ 0.96      $ 0.52

Diluted                              $ 0.29     $ 0.19     $ 0.96      $ 0.52

Weighted average diluted shares      112,516    110,372    111,764     110,075
outstanding

Other financial data:

Adjusted EBITDA (2)                  $ 125,077  $ 104,839  $ 371,974   $ 323,619

(1) Includes amortization of debt issue costs and excludes capitalized interest.

(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

                                            September 30,   December 31,

                                            2010            2009

Balance sheet data:

Cash and cash equivalents                   $ 430,467       $ 437,936

Theatre properties and equipment, net       $ 1,189,191     $ 1,219,588

Total assets                                $ 3,312,311     $ 3,276,448

Long-term debt, including current portion   $ 1,535,129     $ 1,543,705

Equity                                      $ 995,392       $ 914,628




                                           Three months ended  Nine months ended

                                           September 30,       September 30,

                                           2010    2009        2010     2009

Other operating data:

Attendance (patrons):

Domestic                                   42,198  40,984      123,429  122,174

International                              23,558  19,411      61,018   53,464

Worldwide                                  65,756  60,395      184,447  175,638

Average ticket price (in dollars):

Domestic                                   $ 6.22  $ 6.02      $ 6.41   $ 6.13

International                              $ 4.47  $ 3.92      $ 4.47   $ 3.62

Worldwide                                  $ 5.60  $ 5.35      $ 5.77   $ 5.36

Concession revenues per patron (in
dollars):

Domestic                                   $ 2.96  $ 2.92      $ 3.02   $ 2.92

International                              $ 1.92  $ 1.71      $ 1.89   $ 1.59

Worldwide                                  $ 2.59  $ 2.53      $ 2.65   $ 2.52

Average screen count (month end average):

Domestic                                   3,845   3,842       3,833    3,805

International                              1,077   1,059       1,072    1,044

Worldwide                                  4,922   4,901       4,905    4,849




Segment Information

(unaudited, in thousands)

                            Three months ended    Nine months ended

                            September 30,         September 30,

                            2010       2009       2010         2009

Revenues

U.S.                        $ 400,277  $ 378,046  $ 1,199,856  $ 1,139,065

International               161,492    119,866    420,404      304,024

Eliminations                (1,534)    (1,087)    (4,025)      (2,956)

Total revenues              $ 560,235  $ 496,825  $ 1,616,235  $ 1,440,133

Adjusted EBITDA (1)

U.S.                        $ 87,778   $ 77,907   $ 273,731    $ 260,202

International               37,299     26,932     98,243       63,417

Total Adjusted EBITDA       $ 125,077  $ 104,839  $ 371,974    $ 323,619

Capital expenditures

U.S.                        $ 11,564   $ 15,429   $ 47,571     $ 58,851

International               19,733     9,256      40,685       26,752

Total capital expenditures  $ 31,297   $ 24,685   $ 88,256     $ 85,603




Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

                                     Three months ended    Nine months ended

                                     September 30,         September 30,

                                     2010       2009       2010       2009

Net income                           $ 33,883   $ 22,055   $ 111,353  $ 60,213

Income taxes                         15,877     12,186     45,918     31,149

Interest expense                     28,938     25,893     83,553     77,006

Loss on early retirement of debt     --         1,083      --         27,878

Other income                         (647)      (1,384)    (5)        (3,671)

Depreciation and amortization        34,984     38,508     103,990    112,845

Impairment of long-lived assets      1,022      3,146      6,057      8,115

Loss on sale of assets and other     7,548      944        11,906     2,402

Deferred lease expenses - theatres   847        1,067      2,398      3,189
(2)

Deferred lease expenses - DCIP       232        --         378        --
equipment (3)

Amortization of long-term prepaid    468        323        1,247      1,074
rents (2)

Share based awards compensation      1,925      1,018      5,179      3,419
expense (4)

Adjusted EBITDA (1)                  $ 125,077  $ 104,839  $ 371,974  $ 323,619

(1) 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.

(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.




    Source: Cinemark Holdings, Inc.