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.