Cinemark Holdings, Inc. Reports Q3 2015 Adjusted EBITDA of $154.8 Million on Revenues of $700.1 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 and nine months ended September 30, 2015.
Cinemark Holdings, Inc.’s revenues for the three months ended September 30, 2015 increased 8.2% to $700.1 million compared to $646.9 million for the three months ended September 30, 2014. For the three months ended September 30, 2015, admissions revenues increased 7.3% to $432.2 million and concession revenues increased 9.0% to $230.2 million. Attendance increased 7.3% to 71.0 million patrons.
Adjusted EBITDA for the three months ended September 30, 2015 increased 9.2% to $154.8 million from $141.7 million for the three months ended September 30, 2014. 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, 2015 increased 21.5% to $46.3 million from $38.1 million for the three months ended September 30, 2014. Diluted earnings per share for the three months ended September 30, 2015 was $0.40 compared to $0.33 for the three months ended September 30, 2014.
“Our worldwide admissions revenues increased 15.1% on a currency adjusted basis, exceeding the North American industry’s box office by an impressive 930 basis points,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “Our Latin American segment’s attendance growth of 16.2% further substantiates the exhibition industry is reliant upon film content rather than economic cycles. Cinemark is well adept at navigating through various economic cycles with more than 20 years of operating experience in the region.”
Cinemark Holdings, Inc.’s revenues increased 9.1% to $2,145.4 million for the nine months ended September 30, 2015 from $1,967.1 million for the nine months ended September 30, 2014. During the nine months ended September 30, 2015, admissions revenues increased 7.8% to $1,335.8 million and concession revenues increased 11.7% to $704.2 million. Attendance increased 7.6% to 213.2 million patrons.
Adjusted EBITDA for the nine months ended September 30, 2015 increased 12.7% to $495.4 million from $439.6 million for the nine months ended September 30, 2014. 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, 2015 increased 9.5% to $159.1 million from $145.3 million for the nine months ended September 30, 2014. Diluted earnings per share for the nine months ended September 30, 2015 was $1.37 compared to $1.25 for the nine months ended September 30, 2014.
On September 30, 2015, the Company’s aggregate screen count was 5,746. As of September 30, 2015, the Company had signed commitments to open seven new theatres and 66 screens during the remainder of 2015 and 16 new theatres with 163 screens subsequent to 2015.
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About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 507 theatres with 5,746 screens in 41 U.S. states, Brazil, Argentina and 12 other Latin American countries as of September 30, 2015. For more information go to investors.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 February 27, 2015 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 | Nine months ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Statement of income data: | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Admissions | $ | 432,136 | $ | 402,832 | $ | 1,335,761 | $ | 1,239,472 | |||||||||||||
| Concession | 230,233 | 211,131 | 704,190 | 630,571 | |||||||||||||||||
| Other | 37,687 | 32,940 | 105,435 | 97,003 | |||||||||||||||||
| Total revenues | 700,056 | 646,903 | 2,145,386 | 1,967,046 | |||||||||||||||||
| Cost of operations | |||||||||||||||||||||
| Film rentals and advertising | 236,415 | 215,565 | 737,377 | 665,420 | |||||||||||||||||
| Concession supplies | 36,039 | 33,473 | 109,445 | 98,862 | |||||||||||||||||
| Facility lease expense | 80,604 | 80,567 | 242,612 | 239,571 | |||||||||||||||||
| Other theatre operating expenses | 161,096 | 147,380 | 467,342 | 436,175 | |||||||||||||||||
| General and administrative expenses | 39,099 | 35,803 | 116,301 | 114,892 | |||||||||||||||||
| Depreciation and amortization | 47,543 | 44,731 | 139,444 | 131,108 | |||||||||||||||||
| Impairment of long-lived assets | 633 | 4,510 | 4,955 | 5,294 | |||||||||||||||||
| (Gain) loss on sale of assets and other | (500 | ) | 2,590 | 3,852 | 8,719 | ||||||||||||||||
| Total cost of operations | 600,929 | 564,619 | 1,821,328 | 1,700,041 | |||||||||||||||||
| Operating income | 99,127 | 82,284 | 324,058 | 267,005 | |||||||||||||||||
| Interest expense (1) | (28,419 | ) | (28,335 | ) | (84,930 | ) | (85,101 | ) | |||||||||||||
| Distributions from NCM | 4,601 | 3,481 | 13,100 | 14,158 | |||||||||||||||||
| Loss on amendment to debt agreement | — | — | (925 | ) | — | ||||||||||||||||
| Other income | 1,501 | 6,636 | 8,453 | 20,777 | |||||||||||||||||
| Income before income taxes | 76,810 | 64,066 | 259,756 | 216,839 | |||||||||||||||||
| Less: Income taxes | 30,109 | 25,534 | 99,263 | 70,477 | |||||||||||||||||
| Net income | $ | 46,701 | $ | 38,532 | $ | 160,493 | $ | 146,362 | |||||||||||||
| Less: Net income attributable to noncontrolling interests | 362 | 403 | 1,375 | 1,059 | |||||||||||||||||
| Net income attributable to Cinemark Holdings, Inc. | $ | 46,339 | $ | 38,129 | $ | 159,118 | $ | 145,303 | |||||||||||||
| Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders: | |||||||||||||||||||||
| Basic | $ | 0.40 | $ | 0.33 | $ | 1.37 | $ | 1.25 | |||||||||||||
| Diluted | $ | 0.40 | $ | 0.33 | $ | 1.37 | $ | 1.25 | |||||||||||||
| Weighted average diluted shares outstanding | 115,356 | 115,021 | 115,279 | 114,901 | |||||||||||||||||
| Other financial data: | |||||||||||||||||||||
| Adjusted EBITDA (2) | $ | 154,777 | $ | 141,739 | $ | 495,351 | $ | 439,649 | |||||||||||||
|
(1) |
Includes amortization of debt issue costs. |
|
|
(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, | |||||||
| 2015 | 2014 | |||||||
| Balance sheet data: | ||||||||
| Cash and cash equivalents | $ | 502,914 | $ | 638,869 | ||||
| Theatre properties and equipment, net | $ | 1,461,018 | $ | 1,450,812 | ||||
| Total assets | $ | 4,044,256 | $ | 4,151,980 | ||||
| Long-term debt, including current portion | $ | 1,817,718 | $ | 1,822,997 | ||||
| Equity | $ | 1,096,106 | $ | 1,123,129 | ||||
| Three months ended | Nine months ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Other operating data: | |||||||||||||||||
| Attendance (patrons, in millions): | |||||||||||||||||
| Domestic | 43.8 | 42.8 | 134.3 | 129.9 | |||||||||||||
| International | 27.2 | 23.4 | 78.9 | 68.3 | |||||||||||||
| Worldwide | 71.0 | 66.2 | 213.2 | 198.2 | |||||||||||||
| Average ticket price (in dollars): | |||||||||||||||||
| Domestic | $ | 7.27 | $ | 6.79 | $ | 7.37 | $ | 6.99 | |||||||||
| International | $ | 4.18 | $ | 4.80 | $ | 4.38 | $ | 4.86 | |||||||||
| Worldwide | $ | 6.09 | $ | 6.09 | $ | 6.27 | $ | 6.25 | |||||||||
| Concession revenues per patron (in dollars): | |||||||||||||||||
| Domestic | $ | 3.85 | $ | 3.63 | $ | 3.90 | $ | 3.63 | |||||||||
| International | $ | 2.27 | $ | 2.38 | $ | 2.30 | $ | 2.33 | |||||||||
| Worldwide | $ | 3.24 | $ | 3.19 | $ | 3.30 | $ | 3.18 | |||||||||
| Average screen count (month end average): | |||||||||||||||||
| Domestic | 4,493 | 4,468 | 4,496 | 4,462 | |||||||||||||
| International | 1,250 | 1,154 | 1,214 | 1,140 | |||||||||||||
| Worldwide | 5,743 | 5,622 | 5,710 | 5,602 | |||||||||||||
| Segment Information | |||||||||||||||||||||
|
(unaudited, in thousands) |
|||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Revenues | |||||||||||||||||||||
| U.S. | $ | 509,330 | $ | 463,854 | $ | 1,576,107 | $ | 1,433,259 | |||||||||||||
| International | 194,497 | 186,428 | 580,335 | 543,501 | |||||||||||||||||
| Eliminations | (3,771 | ) | (3,379 | ) | (11,056 | ) | (9,714 | ) | |||||||||||||
| Total revenues | $ | 700,056 | $ | 646,903 | $ | 2,145,386 | $ | 1,967,046 | |||||||||||||
| Adjusted EBITDA (1) | |||||||||||||||||||||
| U.S. | $ | 108,689 | $ | 99,519 | $ | 359,400 | $ | 313,930 | |||||||||||||
| International | 46,088 | 42,220 | 135,951 | 125,719 | |||||||||||||||||
| Total Adjusted EBITDA | $ | 154,777 | $ | 141,739 | $ | 495,351 | $ | 439,649 | |||||||||||||
| Capital expenditures | |||||||||||||||||||||
| U.S. | $ | 48,868 | $ | 36,325 | $ | 167,082 | $ | 97,120 | |||||||||||||
| International | 27,771 | 17,280 | 65,269 | 59,048 | |||||||||||||||||
| Total capital expenditures | $ | 76,639 | $ | 53,605 | $ | 232,351 | $ | 156,168 | |||||||||||||
| Reconciliation of Adjusted EBITDA | |||||||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Net income | $ | 46,701 | $ | 38,532 | $ | 160,493 | $ | 146,362 | |||||||||||||
| Income taxes | 30,109 | 25,534 | 99,263 | 70,477 | |||||||||||||||||
| Interest expense | 28,419 | 28,335 | 84,930 | 85,101 | |||||||||||||||||
| Loss on amendment to debt agreement |
— |
— |
925 |
— |
|||||||||||||||||
| Other income | (1,501 | ) | (6,636 | ) | (8,453 | ) | (20,777 | ) | |||||||||||||
| Depreciation and amortization | 47,543 | 44,731 | 139,444 | 131,108 | |||||||||||||||||
| Impairment of long-lived assets | 633 | 4,510 | 4,955 | 5,294 | |||||||||||||||||
| (Gain) loss on sale of assets and other | (500 | ) | 2,590 | 3,852 | 8,719 | ||||||||||||||||
| Deferred lease expenses - theatres (2) | (289 | ) | 403 | (1,108 | ) | 1,443 | |||||||||||||||
| Deferred lease expenses – DCIP equipment (3) | (232 | ) | (235 | ) | (701 | ) | 573 | ||||||||||||||
| Amortization of long-term prepaid rents (2) | 519 | 1,000 | 1,901 | 1,785 | |||||||||||||||||
| Share based awards compensation expense (4) | 3,375 | 2,975 | 9,850 | 9,564 | |||||||||||||||||
| Adjusted EBITDA (1) | $ | 154,777 | $ | 141,739 | $ | 495,351 | $ | 439,649 | |||||||||||||
| (1) | Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on amendment to debt agreement, 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. |
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Cinemark Holdings, Inc.
Financial Contact:
Chanda
Brashears, 972-665-1671
cbrashears@cinemark.com
or
Media
Contact:
James Meredith, 972-665-1060
jmeredith@cinemark.com
Source: Cinemark Holdings, Inc.
Released November 5, 2015