Cinemark Holdings, Inc. Reports Q2 2010 Adjusted EBITDA of $125.1 Million on Revenues of $539.4 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 six months ended June 30, 2010.

Cinemark Holdings, Inc.'s revenues for the three months ended June 30, 2010 increased 4.2% to $539.4 million from $517.5 million for the three months ended June 30, 2009. For the three months ended June 30, 2010, admissions revenues increased 4.1% to $353.1 million and concession revenues increased 4.0% to $165.2 million. The increases were primarily related to a 5.8% increase in average ticket price and a 5.4% increase in concession revenues per patron, partially offset by a 1.5% decline in attendance.

Adjusted EBITDA for the three months ended June 30, 2010 increased 3.6% to $125.1 million from $120.8 million for the three months ended June 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 June 30, 2010 increased 112.3% to $39.7 million compared to $18.7 million for the three months ended June 30, 2009. Net income for the three months ended June 30, 2009 included a loss on early retirement of debt of approximately $26.8 million, before income taxes.

"We again achieved strong, industry-leading results. This is the seventh straight quarter that our domestic box office performance has exceeded industry performance. In addition, our international circuit continued to be an important factor in driving our worldwide revenue and Adjusted EBITDA growth," stated Cinemark Chief Executive Officer Alan Stock. "The Company's digital cinema rollout is well underway with Barco projectors and RealD 3D systems being installed to expand our 3D footprint. In response to increasing customer demand and an expanding 3D slate, we now expect to install 3D systems in approximately 40-50% of our worldwide screens. Once this installation process is completed we will begin converting all of our remaining screens to digital. We are excited by the performance of Cinemark's XD Extreme Digital Cinema auditoriums, and are actively expanding that footprint both domestically and internationally."

Cinemark Holdings, Inc.'s revenues for the six months ended June 30, 2010 increased 11.9% to $1,056.0 million from $943.3 million for the six months ended June 30, 2009. During the six months ended June 30, 2010, admissions revenues increased 12.5% to $696.1 million and concession revenues increased 10.2% to $318.3 million. The increases were primarily related to a 3.0% increase in attendance, a 9.1% increase in average ticket price and a 6.8% increase in concession revenues per patron.

Adjusted EBITDA for the six months ended June 30, 2010 increased 12.8% to $246.9 million from $218.8 million for the six months ended June 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 six months ended June 30, 2010 increased 106.6% to $74.8 million compared to $36.2 million for the six months ended June 30, 2009. Net income for the six months ended June 30, 2009 included a loss on early retirement of debt of approximately $26.8 million, before income taxes.

On June 30, 2010, the Company's aggregate screen count was 4,907. As of June 30, 2010, the Company had signed commitments to open 10 new theatres with 97 screens by the end of 2010 and open 12 new theatres with 126 screens subsequent to 2010.


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Telephone: via 800/374-1346 or 706/679-3149 (for international callers).



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About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 425 theatres with 4,907 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of June 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)

                         Three months ended June 30,  Six months ended June 30,

                         2010       2009              2010       2009

Statement of income
data:

Revenues

 Admissions              $ 353,085  $ 339,088         $ 696,075  $ 618,971

 Concession              165,230    158,926           318,334    288,957

 Other                   21,054     19,494            41,591     35,380

Total revenues           539,369    517,508           1,056,000  943,308

Cost of operations

 Film rentals and        193,550    190,826           382,369    337,952
 advertising

 Concession supplies     24,494     24,027            46,900     43,744

 Facility lease expense  61,990     59,195            124,705    114,933

 Other theatre           113,898    106,238           221,661    199,316
 operating expenses

 General and
 administrative          24,946     23,675            50,476     45,463
 expenses

 Depreciation and        34,915     37,881            69,006     74,337
 amortization

 Impairment of           4,688      3,930             5,035      4,969
 long-lived assets

 Loss on sale of assets  1,191      1,186             4,358      1,458
 and other

Total cost of            459,672    446,958           904,510    822,172
operations

Operating income         79,697     70,550            151,490    121,136

 Interest expense (1)    (28,605)   (25,649)          (54,615)   (51,113)

 Distributions from NCM  1,332      5,027             11,278     11,606

 Loss on early           -          (26,795)          -          (26,795)
 retirement of debt

 Other income (expense)  (1,454)    994               (642)      2,287

Income before income     50,970     24,127            107,511    57,121
taxes

Income taxes             10,211     4,320             30,041     18,963

Net income               $ 40,759   $ 19,807          $ 77,470   $ 38,158

Less: Net income
attributable to          1,077      1,137             2,695      1,923
noncontrolling
interests

Net income attributable
to Cinemark Holdings,    $ 39,682   $ 18,670          $ 74,775   $ 36,235
Inc.

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

 Basic                   $ 0.35     $ 0.17            $ 0.67     $ 0.33

 Diluted                 $ 0.35     $ 0.17            $ 0.67     $ 0.33

 Weighted average
 diluted shares          111,552    110,266           111,299    109,922
 outstanding

Other financial data:

Adjusted EBITDA (2)      $ 125,116  $ 120,792         $ 246,897  $ 218,780

 (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

                         June 30,   December 31,

                         2010       2009

Balance sheet data:

Cash and cash            $ 435,770  $ 437,936
equivalents

Theatre properties and   1,184,254  1,219,588
equipment, net

Total assets             3,305,151  3,276,448

Long-term debt,
including current        1,537,917  1,543,705
portion

Equity                   959,934    914,628




                                     Three months ended  Six months ended

                                     June 30,            June 30,

                                     2010    2009        2010     2009

Other operating data:

 Attendance (patrons):

 Domestic                            41,658  43,922      81,231   81,190

 International                       18,526  17,198      37,460   34,053

 Worldwide                           60,184  61,120      118,691  115,243

 Average ticket price (in dollars):

 Domestic                            $ 6.47  $ 6.29      $ 6.51   $ 6.18

 International                       $ 4.51  $ 3.66      $ 4.47   $ 3.45

 Worldwide                           $ 5.87  $ 5.55      $ 5.86   $ 5.37

 Concession revenues per patron (in
 dollars):

 Domestic                            $ 3.12  $ 2.99      $ 3.06   $ 2.92

 International                       $ 1.91  $ 1.61      $ 1.87   $ 1.52

 Worldwide                           $ 2.74  $ 2.60      $ 2.68   $ 2.51

 Average screen count (month end
 average):

 Domestic                            3,827   3,825       3,827    3,789

 International                       1,070   1,037       1,068    1,037

 Worldwide                           4,897   4,862       4,895    4,826




Segment Information

(unaudited, in thousands)

                            Three months ended    Six months ended

                            June 30,              June 30,

                            2010       2009       2010         2009

Revenues

 U.S.                       $ 410,964  $ 419,575  $ 799,579    $ 761,019

 International              129,641    98,962     258,912      184,158

 Eliminations               (1,236)    (1,029)    (2,491)      (1,869)

 Total revenues             $ 539,369  $ 517,508  $ 1,056,000  $ 943,308

Adjusted EBITDA (1)

 U.S.                       $ 96,548   $ 100,576  $ 185,953    $ 182,295

 International              28,568     20,216     60,944       36,485

 Total adjusted EBITDA      $ 125,116  $ 120,792  $ 246,897    $ 218,780

Capital expenditures

U.S.                        $ 23,508   $ 27,171   $ 36,008     $ 43,422

International               13,935     10,875     20,952       17,496

Total capital expenditures  $ 37,443   $ 38,046   $ 56,960     $ 60,918




Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

                                     Three months ended    Six months ended

                                     June 30,              June 30,

                                     2010       2009       2010       2009

Net income                           $ 40,759   $ 19,807   $ 77,470   $ 38,158

 Income taxes                        10,211     4,320      30,041     18,963

 Interest expense                    28,605     25,649     54,615     51,113

 Loss on early retirement of debt               26,795                26,795

 Other (income) expense              1,454      (994)      642        (2,287)

 Depreciation and amortization       34,915     37,881     69,006     74,337

 Impairment of long-lived assets     4,688      3,930      5,035      4,969

 Loss on sale of assets and other    1,191      1,186      4,358      1,458

 Deferred lease expenses - theatres  801        1,034      1,551      2,121
 (2)

 Deferred lease expenses - DCIP      113                   146
 equipment (3)

 Amortization of long-term prepaid   438        360        779        750
 rents (2)

 Share based awards compensation     1,941      824        3,254      2,403
 expense (4)

 Adjusted EBITDA (1)                 $ 125,116  $ 120,792  $ 246,897  $ 218,780




     Adjusted EBITDA as calculated in the chart above represents net income
     before income taxes, interest expense, loss on early retirement of debt,
     other (income) expense, 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
(1)  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.