Cinemark Holdings, Inc. Reports Results for First Quarter 2010

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, 2010.

Cinemark Holdings, Inc.'s revenues for the three months ended March 31, 2010 increased 21.3% to $516.6 million from $425.8 million for the three months ended March 31, 2009. For the three months ended March 31, 2010, admissions revenues increased 22.5% to $343.0 million and concession revenues increased 17.8% to $153.1 million. The increases were primarily related to an 8.1% increase in attendance, a 13.3% increase in average ticket prices and a 9.2% increase in concession revenues per patron.

Adjusted EBITDA for the three months ended March 31, 2010 increased 24.3% to $121.8 million from $98.0 million for the three months ended March 31, 2009. 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, 2010 increased 99.4% to $35.1 million from $17.6 million for the three months ended March 31, 2009.

"2010 is off to an excellent start with another strong quarter led by robust growth in attendance, revenues and Adjusted EBITDA across our entire global theatre circuit. During the first quarter of 2010 we again outperformed U.S. industry benchmarks for the quarter, which itself was the third consecutive record breaking quarter for the U.S. industry. This highlights the strength of both our industry and Cinemark's circuit and underscores the benefits of our geographically diverse theatre footprint - both domestically as well as internationally in 13 countries," stated Alan Stock, Cinemark's Chief Executive Officer.

On March 31, 2010, the Company's aggregate screen count was 4,884. As of March 31, 2010, Cinemark had commitments to open 13 new theatres and 121 screens during the remainder of 2010 and seven additional new theatres with 78 screens subsequent to 2010.

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About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 423 theatres with 4,884 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of March 31, 2010. 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 10, 2010 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,

                                                       2010         2009

Statement of income data:


 Admissions                                            $ 342,990    $ 279,883

 Concession                                              153,104      130,031

 Other                                                   20,537       15,886

 Total revenues                                        $ 516,631    $ 425,800

Cost of operations

 Film rentals and advertising                            188,819      147,126

 Concession supplies                                     22,406       19,717

 Facility lease expense                                  62,715       55,738

 Other theatre operating expenses                        107,763      93,078

 General and administrative expenses                     25,530       21,788

 Depreciation and amortization                           34,091       36,456

 Impairment of long-lived assets                         347          1,039

 Loss on sale of assets and other                        3,167        272

Total cost of operations                                 444,838      375,214

Operating income                                         71,793       50,586

 Interest expense (1)                                    (26,010 )    (25,464 )

 Distributions from NCM                                  9,946        6,579

 Other income                                            812          1,293

Income before income taxes                               56,541       32,994

Income taxes                                             19,830       14,643

Net income                                             $ 36,711     $ 18,351

Less: Net income attributable to noncontrolling          1,618        786

Net income attributable to Cinemark Holdings, Inc.     $ 35,093     $ 17,565

Earnings per share attributable to Cinemark Holdings,
Inc.'s common stockholders:

 Basic                                                 $ 0.32       $ 0.16

 Diluted                                               $ 0.31       $ 0.16

Weighted average diluted shares outstanding              110,880      109,566

Other financial data:

 Adjusted EBITDA (2)                                   $ 121,781    $ 97,988

(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 March 31,  As of December 31,

                                            2010             2009

Balance Sheet Data (unaudited, in

 Cash and cash equivalents                  $ 433,229        $ 437,936

 Theatre properties and equipment, net        1,191,215        1,219,588

 Total assets                                 3,282,680        3,276,448

 Long-term debt, including current portion    1,540,796        1,543,705

 Equity                                       939,134          914,628

                                               Three months ended

                                               March 31,

                                               2010      2009

Other operating data:

 Attendance (patrons):

 Domestic                                        39,573    37,268

 International                                   18,934    16,855

 Worldwide                                       58,507    54,123

 Average ticket price (in dollars):

 Domestic                                      $ 6.55    $ 6.05

 International                                 $ 4.43    $ 3.24

 Worldwide                                     $ 5.86    $ 5.17

 Concession revenues per patron (in dollars):

 Domestic                                      $ 2.99    $ 2.84

 International                                 $ 1.83    $ 1.43

 Worldwide                                     $ 2.62    $ 2.40

 Average screen count (month end average):

 Domestic                                        3,825     3,759

 International                                   1,066     1,035

 Worldwide                                       4,891     4,794

Segment Information

(unaudited, in thousands)

                             Three months ended

                             March 31,

                             2010         2009


 U.S.                        $ 388,615    $ 341,445

 International                 129,271      85,195

 Eliminations                  (1,255  )    (840    )

 Total revenues              $ 516,631    $ 425,800

Adjusted EBITDA

 U.S.                        $ 89,405     $ 81,719

 International                 32,376       16,269

 Total Adjusted EBITDA       $ 121,781    $ 97,988

Capital expenditures

 U.S.                        $ 12,500     $ 16,251

 International                 7,017        6,621

 Total capital expenditures  $ 19,517     $ 22,872

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

                                              Three Months Ended

                                              March 31,

                                              2010         2009

Net income                                    $ 36,711     $ 18,351

Income taxes                                    19,830       14,643

Interest expense                                26,010       25,464

Other income                                    (812    )    (1,293 )

Depreciation and amortization                   34,091       36,456

Impairment of long-lived assets                 347          1,039

Loss on sale of assets and other                3,167        272

Deferred lease expenses - theatres(2)           750          1,088

Deferred lease expenses - DCIP equipment (3)    33           -

Amortization of long-term prepaid rents (2)     341          390

Share based awards compensation expense (4)     1,313        1,578

Adjusted EBITDA (1)                           $ 121,781    $ 97,988

     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 utilities and other.

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

    Source: Cinemark Holdings, Inc.