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 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 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: Revenues 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 interests 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 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 March 31, As of December 31, 2010 2009 Balance Sheet Data (unaudited, in thousands): 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 Revenues 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.
Released May 6, 2010