Cinemark Holdings, Inc. Reports Results for Second Quarter 2007

PLANO, Texas--(BUSINESS WIRE)--

Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor, today reported results for the three and six months ended June 30, 2007.

Cinemark Holdings, Inc.'s revenues for the three months ended June 30, 2007 increased 49.1% to $440.0 million from $295.1 million for the three months ended June 30, 2006. Admissions revenues increased 54.8% and concession revenues increased 50.6%. The increases were primarily related to a 24.1% increase in attendance; a 25.1% increase in average ticket prices; and a 21.5% increase in concession revenues per patron, all of which were favorably impacted by the acquisition of Century Theatres, Inc. that occurred on October 5, 2006.

Adjusted EBITDA for the three months ended June 30, 2007 increased 38.9% to $95.7 million from $68.9 million for the three months ended June 30, 2006. The Company's Adjusted EBITDA margin was 21.7% for the three months ended June 30, 2007. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

Net income for the three months ended June 30, 2007 was $47.9 million compared to net income of $13.1 million for the three months ended June 30, 2006.

"During the second quarter our solid performance was driven by the strength of a few summer blockbuster films, the performance of our international theatres, and the integration of the Century acquisition," stated Alan Stock, Cinemark's Chief Executive Officer. "I believe the outlook for Cinemark is positive with a good slate of movies for the remainder of the year and a robust new theatre development pipeline. In addition, we have opened our first fully digital theatre which will allow us to test the new technology and position ourselves even better for long term profitable growth."

Cinemark Holdings, Inc.'s revenues for the six months ended June 30, 2007 increased 51.2% to $818.0 million from $541.1 million for the six months ended June 30, 2006. Admissions revenues increased 56.6% and concession revenues increased 49.1%. The increases were primarily related to a 25.8% increase in attendance; a 24.8% increase in average ticket prices; and an 18.6% increase in concession revenues per patron, all of which were favorably impacted by the acquisition of Century Theatres, Inc. that occurred on October 5, 2006.

Adjusted EBITDA for the six months ended June 30, 2007 increased 48.4% to $175.8 million from $118.5 million for the six months ended June 30, 2006. The Company's Adjusted EBITDA margin was 21.5% for the six months ended June 30, 2007. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

Net income for the six months ended June 30, 2007 was $166.1 million compared to net income of $18.9 million for the six months ended June 30, 2006.

Net income for the six months ended June 30, 2007 benefited from a $129.6 million after tax gain on the National CineMedia IPO, but was impacted by non-cash impairment charges of $56.8 million, the majority of which resulted from the Company amending its operating agreement with National CineMedia LLC (NCM). Cinemark records and measures goodwill for impairment purposes at an individual theatre level, rather than aggregated at the corporate level, which can result in more volatile impairment charges.

During the six months ended June 30, 2007, the Company repurchased approximately $332.1 million aggregate principal amount of its 9% senior subordinated notes primarily utilizing the proceeds from the NCM transaction. The Company recorded a loss on early retirement of debt of approximately $8.0 million related to this note repurchase.

On June 30, 2007, the Company's aggregate screen count was 4,568, with screens in the United States, Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Colombia. As of June 30, 2007, the Company had signed commitments to open nine new theatres with 121 screens by the end of 2007 and open 12 new theatres with 160 screens subsequent to 2007.

Conference Call

The Company will host a conference call and audio webcast with investors, analysts and other interested parties today at 5:00 P.M. Eastern time. The call can be accessed live over the phone by dialing (800) 374-1346, or for international callers, (706) 679-3149. The passcode is 12086087. Additionally, a live audio webcast will be available to interested parties at www.cinemark.com under the Investor Relations section.

About Cinemark Holdings, Inc.

Headquartered in Plano, TX, Cinemark is a leader in the motion picture exhibition industry. As of June 30, 2007, Cinemark operates 402 theatres and 4,568 screens in 38 states in the United States and internationally in 12 countries, mainly in Mexico, South and Central America. For more information go to www.cinemark.com.

Forward-looking Statements

Cinemark Holdings, Inc. intends that this release be governed by the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995 (the "PSLR Act") with respect to statements that may be deemed to be forward-looking statements. Statements contained in this release other than statements of historical fact, including statements based on our current expectations, assumptions, estimates and projections about our business and our industry, are forward-looking statements. You can identify forward-looking statements by the use of words such as "may," "should," "will," "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 Cinemark Holdings, Inc.'s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Forward-looking statements contained in this release reflect Cinemark Holdings, Inc.'s view only as of the date of this release. Cinemark Holdings, Inc. does not undertake any 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   Six months ended
                                     June 30,            June 30,
                               ---------------------------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Statement of Income data:
Revenues
 Admissions                    $283,117  $182,862  $527,107  $336,530
 Concession                     138,448    91,901   253,535   169,973
 Other                           18,471    20,342    37,416    34,591
                               ---------------------------------------
Total revenues                  440,036   295,105   818,058   541,094
                               ---------------------------------------

Cost of operations
 Film rentals and advertising   159,084   100,298   287,378   179,246
 Concession supplies             22,668    14,807    40,125    26,847
 Facility lease expense          53,253    37,828   104,898    74,860
 Other theatre operating
  expenses                       93,663    60,296   178,038   116,943
 General and administrative
  expenses                       18,381    15,428    37,114    29,510
 Termination of profit
  participation agreement         6,952        --     6,952        --
 Depreciation and amortization   37,345    21,504    75,154    43,166
 Impairment of long-lived
  assets                          7,036       647    56,766       923
 (Gain) loss on sale of assets
  and other                      (1,864)      815    (1,559)    1,543
                               ---------------------------------------
Total cost of operations        396,518   251,623   784,866   473,038
                               ---------------------------------------
Operating income                 43,518    43,482    33,192    68,056

 Interest expense (1)           (35,301)  (22,209)  (76,798)  (44,577)
 Gain on NCM transaction             --        --   210,773        --
 Gain on Fandango transaction     9,205        --     9,205        --
 Loss on early retirement of
  debt                             (123)   (2,501)   (7,952)   (2,501)
 Other income                     4,888     1,311     7,371     1,804
                               ---------------------------------------
Income before taxes              22,187    20,083   175,791    22,782
  Income taxes                  (25,683)    6,979     9,710     3,888
                               ---------------------------------------
Net income                     $ 47,870  $ 13,104  $166,081  $ 18,894
                               =======================================
Net Earnings Per Share
 Basic                         $   0.46  $   0.16  $   1.70  $   0.23
                               =======================================
 Diluted                       $   0.45  $   0.15  $   1.66  $   0.22
                               =======================================

Other Financial Data:
 Adjusted EBITDA (2)           $ 95,682  $ 68,907  $175,776  $118,525
 Adjusted EBITDA margin            21.7%     23.3%     21.5%     21.9%

Other Operating Data:
 Attendance (patrons):
   Domestic                      38,907    28,302    73,854    52,941
   International                 16,755    16,615    31,014    30,484
                               ---------------------------------------
   Worldwide                     55,662    44,917   104,868    83,425
                               =======================================

 Average screen count (month
  end average):
   Domestic                       3,558     2,458     3,543     2,440
   International                    963       925       961       920
                               ---------------------------------------
   Worldwide                      4,521     3,383     4,504     3,360
                               =======================================
                                                As of        As of
                                              June 30,   December 31,
                                                 2007         2006
                                              ---------- -------------
Balance Sheet Data:
 Cash and cash equivalents                    $  386,537  $    147,099
 Theatre properties and equipment, net         1,338,566     1,324,572
 Total assets                                  3,361,459     3,171,582
 Long-term debt, including current portion     1,575,181     1,911,653
 Stockholders' equity                          1,125,378       689,297

                          Segment Information
                       (unaudited, in thousands)

                               Three months ended   Six months ended
                                    June 30,            June 30,
                               ---------------------------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Revenues
 U.S.                          $349,043  $215,956  $655,418  $396,996
 International                   91,790    79,638   164,051   144,962
 Eliminations                      (797)     (489)   (1,411)     (864)
                               ---------------------------------------
  Total Revenues               $440,036  $295,105  $818,058  $541,094
                               =======================================
Adjusted EBITDA (2)
 U.S.                          $ 74,811  $ 51,071  $141,512  $ 89,389
 International                   20,871    17,836    34,264    29,136
                               ---------------------------------------
  Total Adjusted EBITDA        $ 95,682  $ 68,907  $175,776  $118,525
                               =======================================
Capital Expenditures
 U.S.                          $ 28,148  $ 21,566  $ 53,045  $ 45,399
 International                   12,935     5,251    20,103     9,665
                               ---------------------------------------
   Total Capital Expenditures  $ 41,083  $ 26,817  $ 73,148  $ 55,064
                               =======================================
                  Reconciliation of Adjusted EBITDA
                      (unaudited, in thousands)

                               Three months ended  Six months ended
                                    June 30,            June 30,
                               ---------------------------------------
                                 2007      2006      2007      2006
                               --------- -------- ---------- ---------
 Net income                    $ 47,870  $13,104  $ 166,081  $ 18,894
 Income taxes                   (25,683)   6,979      9,710     3,888
 Interest expense (1)            35,301   22,209     76,798    44,577
 Gain on NCM transaction             --       --   (210,773)       --
 Gain on Fandango transaction    (9,205)      --     (9,205)       --
 Loss on early retirement of
  debt                              123    2,501      7,952     2,501
 Other income                    (4,888)  (1,311)    (7,371)   (1,804)
 Termination of profit
  participation agreement         6,952       --      6,952        --
 Depreciation and amortization   37,345   21,504     75,154    43,166
 Impairment of long-lived
  assets                          7,036      647     56,766       923
 (Gain) loss on sale of assets
  and other                      (1,864)     815     (1,559)    1,543
 Deferred lease expenses (3)      1,704    1,442      3,311     2,823
 Amortization of long-term
  prepaid rents (3)                 275      301        511       582
 Stock option compensation
  expense (4)                       716      716      1,449     1,432
                               ---------------------------------------
  Adjusted EBITDA (2)          $ 95,682  $68,907  $ 175,776  $118,525
                               =======================================

(1)  Includes amortization of debt issue costs and excludes
 capitalized interest.

(2)  Adjusted EBITDA as calculated in the chart above represents net
 income before income taxes, interest expense, gain on NCM
 transaction, gain on Fandango transaction, loss on early retirement
 of debt, other income, termination of profit participation agreement,
 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 stock option
 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. Adjusted EBITDA
 margin represents Adjusted EBITDA divided by total revenues.

(3)  Non-cash expense included in facility lease expense.

(4)  Non-cash expense included in general and administrative expenses.

Source: Cinemark Holdings, Inc.