Cinemark Holdings, Inc. Reports Q4 2010 Adjusted EBITDA of $113.9 Million on Revenues of $524.9 Million
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 months and year ended December 31, 2010.
Cinemark Holdings, Inc.'s revenues for the three months ended December 31, 2010 were $524.9 million compared to $536.4 million for the three months ended December 31, 2009. For the three months ended December 31, 2010, admissions revenues decreased 2.8% to $341.7 million and concession revenues decreased 4.5% to $153.8 million. The decreases were primarily related to a 7.0% decrease in attendance, partially offset by a 4.7% increase in average ticket price and a 2.7% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended December 31, 2010 was $113.9 million compared to $121.9 million for the three months ended December 31, 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 December 31, 2010 was $38.0 million compared to $39.9 million for the three months ended December 31, 2009.
"Cinemark continued its domestic out-performance streak during the fourth quarter of 2010 and posted another strong period, finishing the year with more than $2 billion in worldwide revenues for the first time in its history, " stated Alan Stock, Cinemark's Chief Executive Officer. "We achieved an approximate 9% increase in Adjusted EBITDA for the full year as a result of a very strong performance in Latin America and our operating discipline."
Cinemark Holdings, Inc.'s revenues for the year ended December 31, 2010 increased 8.3% to $2,141.1 million from $1,976.5 million for the year ended December 31, 2009. For the year ended December 31, 2010, admissions revenues increased 8.7% to $1,405.4 million and concession revenues increased 6.5% to $642.3 million. The increases were primarily related to a 1.9% increase in attendance, a 6.8% increase in average ticket prices and a 4.3% increase in concession revenues per patron.
Adjusted EBITDA for the year ended December 31, 2010 increased 9.1% to $485.9 million from $445.5 million for the year ended December 31, 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 year ended December 31, 2010 increased to $146.1 million from $97.1 million for the year ended December 31, 2009.
On December 31, 2010, the Company's aggregate screen count was 4,945. As of December 31, 2010, Cinemark had commitments to open 12 new theatres and 102 screens during 2011 and nine additional new theatres with 94 screens subsequent to 2011.
The Company's board of directors declared a cash dividend for its 2010 fourth quarter of $0.21 per share of common stock. The dividend will be paid on March 16, 2011 to stockholders of record on March 4, 2011.
Conference Call/Webcast - Today at 10 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, 2011 via 800/642-1687 or 706/645-9291, passcode: 45716646.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 430 theatres with 4,945 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of December 31, 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)
Three months ended Years ended
December 31, December 31,
2010 2009 2010 2009
Statement of Operations
Data:
Revenues
Admissions $ 341,652 $ 351,492 $ 1,405,389 $ 1,293,378
Concession 153,862 160,985 642,326 602,880
Other 29,395 23,890 93,429 80,242
Total revenues $ 524,909 $ 536,367 $ 2,141,144 $ 1,976,500
Cost of operations
Film rentals and 186,834 194,215 769,698 708,160
advertising
Concession supplies 24,019 24,689 97,484 91,918
Facility lease expense 64,425 62,301 255,717 238,779
Other theatre operating 117,922 112,765 460,716 426,097
expenses
General and 30,456 27,517 109,045 96,497
administrative expenses
Depreciation and 39,518 36,670 143,508 149,515
amortization
Impairment of long-lived 6,481 3,743 12,538 11,858
assets
(Gain) loss on sale of (12,337 ) 800 (431 ) 3,202
assets and other
Total cost of operations 457,318 462,700 1,848,275 1,726,026
Operating income 67,591 73,667 292,869 250,474
Interest expense (1) (28,891 ) (25,499 ) (112,444 ) (102,505 )
Loss on early retirement (3 ) (3 ) (27,878 )
of debt
Distributions from NCM 7,817 5,054 23,358 20,822
Other income 3,716 1,017 3,721 4,688
Income before income 50,230 54,239 207,501 145,601
taxes
Income taxes 11,920 13,696 57,838 44,845
Net income $ 38,310 $ 40,543 $ 149,663 $ 100,756
Less: Net income
attributable to 297 681 3,543 3,648
noncontrolling interests
Net income attributable
to Cinemark Holdings, $ 38,013 $ 39,862 $ 146,120 $ 97,108
Inc.
Earnings per share
attributable to Cinemark
Holdings,
Inc.'s common
stockholders:
Basic $ 0.33 $ 0.36 $ 1.30 $ 0.89
Diluted $ 0.33 $ 0.36 $ 1.29 $ 0.87
Weighted average diluted 112,783 110,758 112,151 110,255
shares outstanding
Other Financial Data:
Adjusted EBITDA (2) $ 113,946 $ 121,905 $ 485,920 $ 445,524
(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 is provided in the financial schedules
accompanying this press release.
As of
December 31,
2010 2009
Balance Sheet Data (unaudited, in thousands):
Cash and cash equivalents $ 464,997 $ 437,936
Theatre properties and equipment, net 1,215,446 1,219,588
Total assets 3,421,478 3,276,448
Long-term debt, including current portion 1,532,441 1,543,705
Equity 1,033,152 914,628
Segment Information
(unaudited, in thousands)
Three months ended Years ended
December 31, December 31,
2010 2009 2010 2009
Revenues
U.S. $ 384,425 $ 419,671 $ 1,584,281 $ 1,558,736
International 143,836 117,741 564,240 421,765
Eliminations (3,352 ) (1,045 ) (7,377 ) (4,001 )
Total revenues $ 524,909 $ 536,367 $ 2,141,144 $ 1,976,500
Adjusted EBITDA
U.S. $ 89,614 $ 101,483 $ 363,345 $ 361,685
International 24,332 20,422 122,575 83,839
Total Adjusted EBITDA $ 113,946 $ 121,905 $ 485,920 $ 445,524
Capital Expenditures
U.S. $ 22,903 $ 22,844 $ 70,474 $ 81,695
International 44,943 16,350 85,628 43,102
Total capital expenditures $ 67,846 $ 39,194 $ 156,102 $ 124,797
Additional Segment Information(1)
(unaudited)
U.S. Operating Segment International Operating Consolidated
Segment
Three Months Ended Three Months Ended Three Months Ended
December 31, December 31, December 31,
% % %
2010 2009 Change 2010 2009 Change 2010 2009 Change
Admissions $ 253.7 $ 277.3 (8.5 )% $ 88.0 $ 74.2 18.6 % $ 341.7 $ 351.5 (2.8 )%
revenues
Concession $ 114.8 $ 128.2 (10.5 )% $ 39.0 $ 32.8 18.9 % $ 153.8 $ 161.0 (4.5 )%
revenues
Other
revenues $ 12.6 $ 13.1 (3.8 )% $ 16.8 $ 10.8 55.6 % $ 29.4 $ 23.9 23.0 %
(2)
Total
revenues $ 381.1 $ 418.6 (9.0 )% $ 143.8 $ 117.8 22.1 % $ 524.9 $ 536.4 (2.1 )%
(2)
Attendance 37.8 42.9 (11.9 )% 19.0 18.2 4.4 % 56.8 61.1 (7.0 )%
Average
ticket $ 6.71 $ 6.46 3.9 % $ 4.63 $ 4.08 13.5 % $ 6.02 $ 5.75 4.7 %
price
Concession
revenues $ 3.04 $ 2.99 1.7 % $ 2.05 $ 1.80 13.9 % $ 2.71 $ 2.64 2.7 %
per patron
Average
screen 3,829 3,833 1,098 1,066 4,927 4,899
count
Revenues
per $ 99,536 $ 109,216 (8.9 )% $ 130,998 $ 110,451 18.6 % $ 106,548 $ 109,485 (2.7 )%
average
screen(2)
International
Operating
U.S. Operating Segment Segment Consolidated
Three Months Ended Three Months Ended Three Months Ended
December 31, December 31, December 31,
2010 2009 2010 2009 2010 2009
Film rentals
and $ 140.9 $ 156.1 $ 46.0 $ 38.2 $ 186.9 $ 194.3
advertising
Concession 14.1 16.5 9.9 8.2 24.0 24.7
supplies
Salaries and 42.6 44.4 13.0 9.9 55.6 54.3
wages
Facility 45.3 45.9 19.1 16.4 64.4 62.3
lease expense
Utilities and 36.9 40.8 25.4 17.6 62.3 58.4
other
International Operating
U.S. Operating Segment Segment Consolidated
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
% % %
2010 2009 Change 2010 2009 Change 2010 2009 Change
Admissions $ 1,044.7 $ 1,025.9 1.8 % $ 360.7 $ 267.5 34.8 % $ 1,405.4 $ 1,293.4 8.7 %
revenues
Concession $ 487.9 $ 485.2 0.6 % $ 154.4 $ 117.7 31.2 % $ 642.3 $ 602.9 6.5 %
revenues
Other
revenues $ 44.3 $ 43.6 1.6 % $ 49.1 $ 36.6 34.2 % $ 93.4 $ 80.2 16.5 %
(2)
Total
revenues $ 1,576.9 $ 1,554.7 1.4 % $ 564.2 $ 421.8 33.8 % $ 2,141.1 $ 1,976.5 8.3 %
(2)
Attendance 161.2 165.1 (2.4 )% 80.0 71.6 11.7 % 241.2 236.7 1.9 %
Average
ticket $ 6.48 $ 6.21 4.3 % $ 4.51 $ 3.74 20.6 % $ 5.83 $ 5.46 6.8 %
price
Concession
revenues $ 3.03 $ 2.94 3.1 % $ 1.93 $ 1.64 17.7 % $ 2.66 $ 2.55 4.3 %
per patron
Average
screen 3,830 3,810 1,079 1,050 4,909 4,860
count
Revenues
per $ 411,708 $ 408,017 0.9 % $ 523,078 $ 401,828 30.2 % $ 436,181 $ 406,681 7.3 %
average
screen(2)
U.S. Operating International
Segment Operating Segment Consolidated
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2010 2009 2010 2009 2010 2009
Film rentals and advertising $ 586.6 $ 572.3 $ 183.1 $ 135.9 $ 769.7 $ 708.2
Concession supplies 59.1 61.9 38.4 30.0 97.5 91.9
Salaries and wages 174.1 168.8 47.1 34.6 221.2 203.4
Facility lease expense 181.9 178.8 73.8 60.0 255.7 238.8
Utilities and other 161.5 163.5 78.0 59.2 239.5 222.7
(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,
2010 2009 2010 2009
Net income $ 38,310 $ 40,543 $ 149,663 $ 100,756
Income taxes 11,920 13,696 57,838 44,845
Interest expense 28,891 25,499 112,444 102,505
Loss on early retirement of 3 - 3 27,878
debt
Other income (3,716 ) (1,017 ) (3,721 ) (4,688 )
Depreciation and amortization 39,518 36,670 143,508 149,515
Impairment of long-lived 6,481 3,743 12,538 11,858
assets
(Gain) loss on sale of assets (12,337 ) 800 (431 ) 3,202
and other
Deferred lease expenses - 823 771 3,221 3,960
theatres (2)
Deferred lease expenses - DCIP 341 - 719 -
(3)
Amortization of long-term 539 315 1,786 1,389
prepaid rents (2)
Share based awards 3,173 885 8,352 4,304
compensation expense (4)
Adjusted EBITDA (1) $ 113,946 $ 121,905 $ 485,920 $ 445,524
(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, (gain) 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 February 24, 2011