Cinemark Holdings, Inc. Reports Q1 2011 Adjusted EBITDA of $102.7 Million on Revenues of $483.1 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 months ended March 31, 2011.
Cinemark Holdings, Inc.'s revenues for the three months ended March 31, 2011 were $483.1 million compared to $516.6 million for the three months ended March 31, 2010. For the three months ended March 31, 2011, admissions revenues were $311.7 million and concession revenues were $146.7 million. Attendance declined 8.0%, average ticket prices declined 1.2% and concession revenues per patron increased 4.2%.
Adjusted EBITDA for the three months ended March 31, 2011 was $102.7 million compared to $121.8 million for the three months ended March 31, 2010. 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 March 31, 2011 was $25.0 million compared to $35.1 million for the three months ended March 31, 2010.
"Despite the lackluster film slate for the first quarter of 2011, Cinemark's geographic diversity and operating discipline helped us post our tenth consecutive quarter of domestic industry out-performance and maintain solid margins," stated Alan Stock, Cinemark's Chief Executive Officer. "Our international segment continues to benefit from the overall healthy economic climate throughout Latin America, posting a 19.4% increase in total revenues over the prior year."
As of March 31, 2011, Cinemark had commitments to open 11 new theatres and 95 screens during the remainder of 2011 and 12 additional new theatres with 125 screens subsequent to 2011.
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About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 431 theatres with 4,941 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of March 31, 2011. For more information go to www.cinemark.com.
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 1, 2011 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 March 31, 2011 2010 Statement of income data: Revenues Admissions $ 311,692 $ 342,990 Concession 146,681 153,104 Other 24,763 20,537 Total revenues 483,136 516,631 Cost of operations Film rentals and advertising 165,153 188,819 Concession supplies 23,282 22,406 Facility lease expense 66,426 62,715 Other theatre operating expenses 109,906 107,763 General and administrative expenses 28,986 25,530 Depreciation and amortization 39,140 34,091 Impairment of long-lived assets 1,015 347 Loss on sale of assets and other 472 3,167 Total cost of operations 434,380 444,838 Operating income 48,756 71,793 Interest expense (1) (29,290 ) (26,010 ) Distributions from NCM 9,863 9,946 Other income 5,030 812 Income before income taxes 34,359 56,541 Income taxes 9,037 19,830 Net income $ 25,322 $ 36,711 Less: Net income attributable to noncontrolling 359 1,618 interests Net income attributable to Cinemark Holdings, Inc. $ 24,963 $ 35,093 Earnings per share attributable to Cinemark Holdings, Inc.'s common stockholders: Basic $ 0.22 $ 0.32 Diluted $ 0.22 $ 0.31 Weighted average diluted shares outstanding 112,899 110,880 Other financial data: Adjusted EBITDA (2) $ 102,706 $ 121,781
(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 As of March 31, December 31, 2011 2010 Balance Sheet Data: Cash and cash equivalents $ 463,308 $ 464,997 Theatre properties and equipment, net $ 1,206,796 $ 1,215,446 Total assets $ 3,404,139 $ 3,421,478 Long-term debt, including current portion $ 1,529,938 $ 1,532,441 Equity $ 1,049,741 $ 1,033,152
Three months ended March 31, 2011 2010 Other operating data: Attendance (patrons): Domestic 33,389 39,573 International 20,382 18,934 Worldwide 53,771 58,507 Average ticket price (in dollars): Domestic $ 6.40 $ 6.55 International $ 4.81 $ 4.43 Worldwide $ 5.79 $ 5.86 Concession revenues per patron (in dollars): Domestic $ 3.14 $ 2.99 International $ 2.05 $ 1.83 Worldwide $ 2.73 $ 2.62 Average screen count (month end average): Domestic 3,820 3,825 International 1,121 1,066 Worldwide 4,941 4,891
Segment Information (unaudited, in thousands) Three months ended March 31, 2011 2010 Revenues U.S. $ 330,866 $ 388,615 International 154,471 129,271 Eliminations (2,201 ) (1,255 ) Total revenues $ 483,136 $ 516,631 Adjusted EBITDA U.S. $ 68,791 $ 89,405 International 33,915 32,376 Total Adjusted EBITDA $ 102,706 $ 121,781 Capital expenditures U.S. $ 11,468 $ 12,500 International 24,301 7,017 Total capital expenditures $ 35,769 $ 19,517
Reconciliation of Adjusted EBITDA (unaudited, in thousands) Three Months Ended March 31, 2011 2010 Net income $ 25,322 $ 36,711 Income taxes 9,037 19,830 Interest expense 29,290 26,010 Other income (5,030 ) (812 ) Depreciation and amortization 39,140 34,091 Impairment of long-lived assets 1,015 347 Loss on sale of assets and other 472 3,167 Deferred lease expenses - theatres(2) 296 750 Deferred lease expenses - DCIP equipment (3) 484 33 Amortization of long-term prepaid rents (2) 667 341 Share based awards compensation expense (4) 2,013 1,313 Adjusted EBITDA (1) $ 102,706 $ 121,781
Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, other income, 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 alternative to net income as an indicator of operating (1) 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.
Released May 5, 2011