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.
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 www.cinemark.com in the Investor Relations section and archived for a limited time immediately following the call.
Call Replay: until May 8, 2011 via 800/642-1687 or 706/645-9291, passcode: 63951054.
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.
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 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