Cinemark Holdings, Inc. Reports Results for the Fourth Quarter of 2020

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 twelve months ended December 31, 2020. The Company’s financial results continue to be significantly impacted by the COVID-19 pandemic, as the Company’s theatres were closed for an extended period of time beginning in March 2020. The Company began reopening domestic theatres in June 2020 and international theatres in August 2020, following enhanced health and safety protocols. As of December 31, 2020, the Company had 217 domestic and 129 international theatres open to limited hours, showing library content and some new releases with some limitations on capacities. During the three months ended December 31, 2020, attendance was 6.6 million patrons, average ticket price was $7.42 and concession revenues per patron was $4.75. Admissions revenues were $49.1 million, concession revenues were $31.5 million and total revenues were $98.2 million for the three months ended December 31, 2020.

Net loss attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2020 was $(239.3) million. Diluted loss per share for the three months ended December 31, 2020 was $(2.03) and Adjusted EBITDA for the three months ended December 31, 2020 was $(97.5) million. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results with the North American industry touting the second-highest grossing box office of all-time,” stated Mark Zoradi, Cinemark CEO. “While COVID-19 has caused significant distress to our industry and our company, Cinemark has maintained discipline and consistency, while demonstrating relentless perseverance and agility.”

Mr. Zoradi continued, “We remain highly confident in the rebound of our industry once the virus is more contained, as evidenced by recent box office results in China, Japan and Australia. Cinemark was well-positioned heading into the crisis, and we have adapted and evolved the way we operate to navigate the current environment, and to ensure we remain successful and further solidify our leadership position as theatrical moviegoing resurges.”

Cinemark Holdings, Inc.’s total revenues for the twelve months ended December 31, 2020 were $686.3 million compared to $3,283.1 million for the twelve months ended December 31, 2019. For the twelve months ended December 31, 2020, admissions revenues were $356.5 million and concession revenues were $231.0 million. For the twelve months ended December 31, 2020, attendance was 54.3 million patrons, average ticket price was $6.57 and concession revenues per patron were $4.26.

Net loss attributable to Cinemark Holdings, Inc. for the twelve months ended December 31, 2020 was $(616.8) million compared to net income attributable to Cinemark Holdings, Inc. of $191.4 million for the twelve months ended December 31, 2019. Diluted loss per share for the twelve months ended December 31, 2020 was $(5.25) compared to diluted earnings per share of $1.63 for the twelve months ended December 31, 2019.

Adjusted EBITDA for the twelve months ended December 31, 2020 was $(276.9) million compared to $745.0 million for the twelve months ended December 31, 2019. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of December 31, 2020, the Company’s aggregate screen count was 5,958 and the Company currently has commitments to open six new theatres and 72 screens during 2021 and 13 new theatres and 123 screens subsequent to 2021.

Conference Call/Webcast – Today at 8:30 AM ET

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

Live Webcast/Replay: Available live at https://investors.cinemark.com. A replay will be available following the call and archived for a limited time.

About Cinemark Holdings, Inc.

Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theatre companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates 531 theatres with 5,958 screens in 42 states domestically and 15 countries throughout South and Central America. Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD - the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://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, including, among others, the impacts of COVID-19. Such risks and uncertainties 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 21, 2020, as updated by the information related to COVID-19 that was included in a Form 8-K filed on April 13, 2020, including the documents incorporated by reference therein, the Quarterly Report on Form 10-Q filed on August 4, 2020 and the Quarterly Report on Form 10-Q filed on November 5, 2020. 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, except per share amounts)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Statement of income data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

49,108

 

 

$

434,280

 

 

$

356,508

 

 

$

1,805,321

 

Concession

 

 

31,450

 

 

 

275,000

 

 

 

231,046

 

 

 

1,161,083

 

Other

 

 

17,684

 

 

 

79,523

 

 

 

98,756

 

 

 

316,695

 

Total revenues

 

 

98,242

 

 

 

788,803

 

 

 

686,310

 

 

 

3,283,099

 

Cost of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

 

21,548

 

 

 

244,139

 

 

 

186,810

 

 

 

1,003,832

 

Concession supplies

 

 

8,768

 

 

 

49,080

 

 

 

48,647

 

 

 

206,441

 

Salaries and wages

 

 

28,442

 

 

 

101,770

 

 

 

145,031

 

 

 

410,086

 

Facility lease expense

 

 

65,274

 

 

 

83,565

 

 

 

279,764

 

 

 

346,094

 

Utilities and other

 

 

50,699

 

 

 

117,501

 

 

 

229,505

 

 

 

474,711

 

General and administrative expenses

 

 

28,238

 

 

 

46,382

 

 

 

127,599

 

 

 

173,384

 

Depreciation and amortization

 

 

68,396

 

 

 

64,360

 

 

 

259,776

 

 

 

261,155

 

Impairment of long-lived and other assets

 

 

111,492

 

 

 

11,619

 

 

 

152,706

 

 

 

57,001

 

Restructuring costs

 

 

307

 

 

 

 

 

 

20,369

 

 

 

 

(Gain) loss on disposal of assets and other

 

 

2,074

 

 

 

3,951

 

 

 

(8,923

)

 

 

12,008

 

Total cost of operations

 

 

385,238

 

 

 

722,367

 

 

 

1,441,284

 

 

 

2,944,712

 

Operating income (loss)

 

 

(286,996

)

 

 

66,436

 

 

 

(754,974

)

 

 

338,387

 

Interest expense

 

 

(37,587

)

 

 

(24,904

)

 

 

(129,871

)

 

 

(99,941

)

Interest income

 

 

601

 

 

 

2,527

 

 

 

4,836

 

 

 

12,589

 

Foreign currency exchange gain (loss)

 

 

1,318

 

 

 

1,391

 

 

 

(4,865

)

 

 

(3,394

)

Distributions from NCM

 

 

 

 

 

3,705

 

 

 

6,975

 

 

 

12,873

 

Non-cash distributions from other equity investee

 

 

12,915

 

 

 

 

 

 

12,915

 

 

 

-

 

Interest expense - NCM

 

 

(5,869

)

 

 

(14,444

)

 

 

(23,595

)

 

 

(28,624

)

Equity in income (loss) of affiliates

 

 

(11,034

)

 

 

7,888

 

 

 

(38,745

)

 

 

41,870

 

Total other expense

 

 

(39,656

)

 

 

(23,837

)

 

 

(172,350

)

 

 

(64,627

)

Income (loss) before income taxes

 

 

(326,652

)

 

 

42,599

 

 

 

(927,324

)

 

 

273,760

 

Income taxes

 

 

(86,978

)

 

 

15,760

 

 

 

(309,376

)

 

 

79,912

 

Net income (loss)

 

$

(239,674

)

 

$

26,839

 

 

$

(617,948

)

 

$

193,848

 

Less: Net income (loss) attributable to noncontrolling interests

 

 

(418

)

 

 

505

 

 

 

(1,120

)

 

 

2,462

 

Net income (loss) attributable to Cinemark Holdings, Inc.

 

$

(239,256

)

 

$

26,334

 

 

$

(616,828

)

 

$

191,386

 

Earnings (loss) per share attributable to Cinemark Holdings, Inc.'s common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(2.03

)

 

$

0.22

 

 

$

(5.25

)

 

$

1.63

 

Diluted

 

$

(2.03

)

 

$

0.22

 

 

$

(5.25

)

 

$

1.63

 

Diluted weighted average shares outstanding

 

 

116,794

 

 

 

116,600

 

 

 

116,667

 

 

 

116,606

 

Other Financial Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

(97,474

)

 

$

178,295

 

 

$

(276,880

)

 

$

745,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Operating Data

(unaudited, in thousands)

 

 

 

As of

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Balance sheet data (unaudited, in thousands):

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

655,338

 

 

$

488,313

 

Theatre properties and equipment, net

 

$

1,615,062

 

 

$

1,735,247

 

Total assets

 

$

5,562,922

 

 

$

5,828,017

 

Long-term debt, including current portion, net of unamortized debt discount and debt issue costs

 

$

2,395,218

 

 

$

1,777,937

 

Equity

 

$

798,969

 

 

$

1,448,322

 

 

Segment Information

(unaudited, in millions, except per patron data)

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

Constant

Currency (1)

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

 

2020

 

 

2019

 

 

% Change

 

 

2020

 

 

2019

 

 

% Change

 

 

2020

 

 

% Change

 

 

2020

 

 

2019

 

 

% Change

 

Admissions revenues (2)

 

$

291.6

 

 

$

1,431.8

 

 

 

(79.6

)%

 

$

64.9

 

 

$

373.5

 

 

 

(82.6

)%

 

$

76.5

 

 

 

(79.5

)%

 

$

356.5

 

 

$

1,805.3

 

 

 

(80.3

)%

Concession revenues (3)

 

$

189.6

 

 

$

936.2

 

 

 

(79.7

)%

 

$

41.5

 

 

$

224.9

 

 

 

(81.5

)%

 

$

48.1

 

 

 

(78.6

)%

 

$

231.1

 

 

$

1,161.1

 

 

 

(80.1

)%

Other revenues

 

$

75.7

 

 

$

212.9

 

 

 

(64.4

)%

 

$

23.0

 

 

$

103.8

 

 

 

(77.8

)%

 

$

28.4

 

 

 

(72.6

)%

 

$

98.7

 

 

$

316.7

 

 

 

(68.8

)%

Total revenues

 

$

556.9

 

 

$

2,580.9

 

 

 

(78.4

)%

 

$

129.4

 

 

$

702.2

 

 

 

(81.6

)%

 

$

153.0

 

 

 

(78.2

)%

 

$

686.3

 

 

$

3,283.1

 

 

 

(79.1

)%

Attendance

 

 

34.9

 

 

 

176.2

 

 

 

(80.2

)%

 

 

19.4

 

 

 

103.4

 

 

 

(81.2

)%

 

 

 

 

 

 

 

 

 

 

54.3

 

 

 

279.6

 

 

 

(80.6

)%

Average ticket price

 

$

8.36

 

 

$

8.13

 

 

 

2.8

%

 

$

3.35

 

 

$

3.61

 

 

 

(7.2

)%

 

$

3.94

 

 

 

9.1

%

 

$

6.57

 

 

$

6.46

 

 

 

1.7

%

Concession revenues per patron

 

$

5.43

 

 

$

5.31

 

 

 

2.3

%

 

$

2.14

 

 

$

2.18

 

 

 

(1.8

)%

 

$

2.48

 

 

 

13.8

%

 

$

4.26

 

 

$

4.15

 

 

 

2.7

%

Average screen count

 

 

4,571

 

 

 

4,615

 

 

 

 

 

 

 

1,474

 

 

 

1,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,045

 

 

 

6,072

 

 

 

 

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

Constant

Currency (1)

2020

 

 

2020

 

 

2019

 

Film rentals and advertising

 

$

155.3

 

 

$

819.6

 

 

$

31.5

 

 

$

184.2

 

 

$

37.4

 

 

$

186.8

 

 

$

1,003.8

 

Concession supplies

 

 

36.9

 

 

 

156.9

 

 

 

11.7

 

 

 

49.6

 

 

 

14.0

 

 

 

48.6

 

 

 

206.5

 

Salaries and wages

 

 

113.8

 

 

 

331.2

 

 

 

31.2

 

 

 

78.9

 

 

 

38.0

 

 

 

145.0

 

 

 

410.1

 

Facility lease expense

 

 

247.0

 

 

 

259.8

 

 

 

32.8

 

 

 

86.3

 

 

 

38.9

 

 

 

279.8

 

 

 

346.1

 

Utilities and other

 

 

180.3

 

 

 

348.2

 

 

 

49.2

 

 

 

126.5

 

 

 

59.4

 

 

 

229.5

 

 

 

474.7

 

     

(1)

Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2019. We translate the results of our international operating segment from local currencies into U.S. dollars using currency rates in effect at different points in time in accordance with U.S. GAAP. Significant changes in foreign currency exchange rates from one period to the next can result in meaningful variations in reported results. We are providing constant currency amounts for our international operating segment to present a period-to-period comparison of business performance that excludes the impact of foreign currency fluctuations.

 

Other Segment Information

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

(81,034

)

 

$

161,757

 

 

$

(226,981

)

 

$

615,161

 

International

 

 

(16,440

)

 

 

16,538

 

 

 

(49,899

)

 

 

129,884

 

Total Adjusted EBITDA

 

$

(97,474

)

 

$

178,295

 

 

$

(276,880

)

 

$

745,045

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

9,422

 

 

$

81,952

 

 

$

64,026

 

 

$

230,561

 

International

 

 

6,890

 

 

 

35,163

 

 

 

19,904

 

 

 

73,066

 

Total capital expenditures

 

$

16,312

 

 

$

117,115

 

 

$

83,930

 

 

$

303,627

 

     

(1)

Adjusted EBITDA represents net income before income taxes, depreciation and amortization expense and other items, as calculated below. 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.

 

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

(239,674

)

 

$

26,839

 

 

$

(617,948

)

 

$

193,848

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

(86,978

)

 

 

15,760

 

 

 

(309,376

)

 

 

79,912

 

Interest expense (a)

 

 

37,587

 

 

 

24,904

 

 

 

129,871

 

 

 

99,941

 

Other (income) expense, net (b)

 

 

14,984

 

 

 

2,638

 

 

 

62,369

 

 

 

(22,441

)

Distributions from DCIP (c)

 

 

 

 

 

15,784

 

 

 

10,383

 

 

 

23,696

 

Other cash distributions from equity investees (d)

 

 

 

 

 

9,419

 

 

 

15,047

 

 

 

29,670

 

Non-cash distributions from other equity investee (e)

 

 

(12,915

)

 

 

 

 

 

(12,915

)

 

 

 

Depreciation and amortization

 

 

68,396

 

 

 

64,360

 

 

 

259,776

 

 

 

261,155

 

Impairment of long-lived and other assets

 

 

111,492

 

 

 

11,619

 

 

 

152,706

 

 

 

57,001

 

Restructuring costs

 

 

307

 

 

 

 

 

 

20,369

 

 

 

 

(Gain) loss on disposal of assets and other

 

 

2,074

 

 

 

3,951

 

 

 

(8,923

)

 

 

12,008

 

Non-cash rent

 

 

708

 

 

 

(1,108

)

 

 

2,357

 

 

 

(4,360

)

Share based awards compensation expense (f)

 

 

6,545

 

 

 

4,129

 

 

 

19,404

 

 

 

14,615

 

Adjusted EBITDA

 

$

(97,474

)

 

$

178,295

 

 

$

(276,880

)

 

$

745,045

 

(a)

Includes non-cash amortization of debt issue costs and amortization of amended interest rate swaps. 

(b)

Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income (loss) of affiliates.

(c)

Cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP.

(d)

Cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances.

(e)

Non-cash distribution of projector equipment from DCIP, which was recorded as a reduction of the Company’s investment in DCIP.

(f)

Non-cash expense included in general and administrative expenses.

 

Financial Contact :
Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com

Media Contact:
Caitlin Piper – 972-665-1418 or pr@cinemark.com

Source: Cinemark Holdings, Inc.