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.
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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.
Released November 5, 2010