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

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:


 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

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

     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


 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.