Exhibit 99.1
(CINEMARK COMPANY LOGO)
For Immediate Release
Contact: Robert Copple or Kate Messmer
972-665-1500
CINEMARK HOLDINGS, INC. REPORTS RESULTS FOR THIRD QUARTER 2009
Plano, TX, November 9, 2009 — Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor, today reported results for the three and nine months ended September 30, 2009.
Cinemark Holdings, Inc.’s attendance for the three months ended September 30, 2009 increased by 4.5% compared to the three months ended September 30, 2008. The Company’s total revenues for the three months ended September 30, 2009 increased 4.3% to $496.8 million from $476.2 million for the three months ended September 30, 2008. During the three months ended September 30, 2009, admissions revenues increased 4.7% to $322.9 million and concession revenues increased 4.7% to $153.0 million.
Adjusted EBITDA for the three months ended September 30, 2009 increased 2.6% to $104.8 million from $102.1 million for the three months ended September 30, 2008. 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 September 30, 2009 increased 2.8% to $21.0 million compared to $20.4 million for the three months ended September 30, 2008. Earnings per diluted share attributable to Cinemark Holdings, Inc. were $0.19 for the three months ended September 30, 2009 and the three months ended September 30, 2008.
“Our growth outpaced the domestic industry box office for the fourth consecutive quarter as our state-of-the-art theatres in diversified markets and organic screen growth continue to drive positive results,” stated Alan Stock, Cinemark’s Chief Executive Officer. “South American countries continue to outpace the U.S. economic recovery and we continue to benefit from solid industry trends and the expansion of our international portfolio. The fourth quarter box office is off to a good start, as patrons continue to enjoy the cinema as an exciting, low cost form of entertainment. We are optimistic about the incremental growth opportunities ahead of us including our digital cinema and XD Extreme Digital initiatives, both of which will allow us to take advantage of the continued expansion of 3D and alternative content and contribute to our long-term growth.”
Cinemark Holdings, Inc.’s attendance for the nine months ended September 30, 2009 increased by 9.1% compared to the nine months ended September 30, 2008. The Company’s total revenues for the nine months ended September 30, 2009 increased 7.9% to $1,440.1 million from $1,334.5 million for the nine months ended September 30, 2008. During the nine months ended September 30, 2009, admissions revenues increased 8.9% to $941.9 million and concession revenues increased 7.9% to $441.9 million.
Adjusted EBITDA for the nine months ended September 30, 2009 increased 13.1% to $323.6 million from $286.1 million for the nine months ended September 30, 2008. 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 nine months ended September 30, 2009 increased 38.9% to $57.2 million from $41.2 million for the nine months ended September 30, 2008. Earnings per diluted share attributable to Cinemark Holdings, Inc. were $0.52 for the nine months ended September 30, 2009 compared to $0.38 for the nine months ended September 30, 2008.

 

 

On September 30, 2009, the Company’s aggregate screen count was 4,908. As of September 30, 2009, the Company had signed commitments to open three new theatres with 30 screens by the end of 2009 and open ten new theatres with 112 screens subsequent to 2009.
Conference Call
The Company will host a conference call and audio webcast with investors, analysts and other interested parties today at 8:30 A.M. Eastern time. The call can be accessed live over the phone by dialing (800) 374-1346, or for international callers, (706) 679-3149. A replay will be available shortly after the call and can be accessed by dialing (800) 642-1687, or for international callers, (706) 645-9291. The passcode for the replay is 34909332. The replay will be available until November 16, 2009.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark Holdings, Inc. is the second largest motion picture exhibitor in the world in terms of both attendance and the number of screens in operation. As of September 30, 2009, Cinemark operates 426 theatres and 4,908 screens in 39 states in the United States and one Canadian province and internationally in 13 countries, including Brazil, Mexico, Chile, Colombia, Argentina, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala. 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 13, 2009 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.

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Cinemark Holdings, Inc.
Financial and Operating Summary
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2009     2008     2009     2008  
Statement of income data:
                                
Revenues
                                
Admissions
   $ 322,915     $ 308,453     $ 941,886     $ 865,245  
Concession
     152,938       146,076       441,895       409,707  
Other
     20,972       21,694       56,352       59,521  
 
                        
Total revenues
     496,825       476,223       1,440,133       1,334,473  
 
                                
Cost of operations
                                
Film rentals and advertising
     175,993       169,260       513,945       471,199  
Concession supplies
     23,485       24,489       67,229       66,443  
Facility lease expense
     61,545       58,936       176,478       171,382  
Other theatre operating expenses
     114,016       104,685       313,332       291,169  
General and administrative expenses
     23,517       22,741       68,980       67,808  
Depreciation and amortization
     38,508       38,817       112,845       115,467  
Impairment of long-lived assets
     3,146       2,316       8,115       8,145  
Loss on sale of assets and other
     944       2,301       2,402       3,211  
 
                        
Total cost of operations
     441,154       423,545       1,263,326       1,194,824  
 
                        
Operating income
     55,671       52,678       176,807       139,649  
 
                                
Interest expense (1)
     (25,893 )     (27,613 )     (77,006 )     (89,747 )
Distributions from NCM
     4,162       3,592       15,768       12,177  
Loss on early retirement of debt
     (1,083 )     —       (27,878 )     (40 )
Other income
     1,384       3,689       3,671       8,806  
 
                        
Income before income taxes
     34,241       32,346       91,362       70,845  
Income taxes
     12,186       10,367       31,149       25,848  
 
                        
Net income
   $ 22,055     $ 21,979     $ 60,213     $ 44,997  
Less: Net income attributable to noncontrolling interests
     1,044       1,531       2,967       3,775  
 
                        
Net income attributable to Cinemark Holdings, Inc.
   $ 21,011     $ 20,448     $ 57,246     $ 41,222  
 
                        
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
                                
Basic
   $ 0.19     $ 0.19     $ 0.52     $ 0.38  
 
                        
Diluted
   $ 0.19     $ 0.19     $ 0.52     $ 0.38  
 
                        
 
                                
Other financial data:
                                
Adjusted EBITDA (2)
   $ 104,839     $ 102,138     $ 323,619     $ 286,135  
                 
    As of     As of  
    September 30,     December 31,  
    2009     2008  
Balance sheet data:
                
Cash and cash equivalents
   $ 359,103     $ 349,603  
Theatre properties and equipment, net
     1,218,658       1,208,283  
Total assets
     3,178,716       3,065,708  
Long-term debt, including current portion
     1,546,624       1,508,462  
Stockholders’ equity
     882,712       824,227  

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    Three months ended     Nine months ended  
    September 30,     September 30,  
    2009     2008     2009     2008  
Other operating data:
                                
Attendance (patrons):
                                
Domestic
     40,984       39,373       122,174       112,223  
International
     19,411       18,425       53,464       48,690  
 
                        
Worldwide
     60,395       57,798       175,638       160,913  
 
                        
 
                                
Average ticket price (in dollars):
                                
Domestic
   $ 6.02     $ 5.97     $ 6.13     $ 5.99  
International
   $ 3.92     $ 3.97     $ 3.62     $ 3.96  
Worldwide
   $ 5.35     $ 5.34     $ 5.36     $ 5.38  
 
                                
Concession revenues per patron (in dollars):
                                
Domestic
   $ 2.92     $ 2.86     $ 2.92     $ 2.88  
International
   $ 1.71     $ 1.83     $ 1.59     $ 1.77  
Worldwide
   $ 2.53     $ 2.53     $ 2.52     $ 2.55  
 
                                
Average screen count (month end average):
                                
Domestic
     3,842       3,688       3,805       3,669  
International
     1,059       1,021       1,044       1,014  
 
                        
Worldwide
     4,901       4,709       4,849       4,683  
 
                        
Segment Information
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2009     2008     2009     2008  
Revenues
                                
U.S.
   $ 378,046     $ 358,935     $ 1,139,065     $ 1,027,982  
International
     119,866       118,448       304,024       309,457  
Eliminations
     (1,087 )     (1,160 )     (2,956 )     (2,966 )
 
                        
Total revenues
   $ 496,825     $ 476,223     $ 1,440,133     $ 1,334,473  
 
                        
Adjusted EBITDA (2)
                                
U.S.
   $ 77,907     $ 75,163     $ 260,202     $ 218,854  
International
     26,932       26,975       63,417       67,281  
 
                        
Total adjusted EBITDA
   $ 104,839     $ 102,138     $ 323,619     $ 286,135  
 
                        
Capital expenditures
                                
U.S.
   $ 15,429     $ 12,296     $ 58,851     $ 50,681  
International
     9,256       7,123       26,752       20,654  
 
                        
Total capital expenditures
   $ 24,685     $ 19,419     $ 85,603     $ 71,335  
 
                        

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Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2009     2008     2009     2008  
Net income
   $ 22,055     $ 21,979     $ 60,213     $ 44,997  
Income taxes
     12,186       10,367       31,149       25,848  
Interest expense (1)
     25,893       27,613       77,006       89,747  
Loss on early retirement of debt
     1,083       —       27,878       40  
Other income
     (1,384 )     (3,689 )     (3,671 )     (8,806 )
Depreciation and amortization
     38,508       38,817       112,845       115,467  
Impairment of long-lived assets
     3,146       2,316       8,115       8,145  
Loss on sale of assets and other
     944       2,301       2,402       3,211  
Deferred lease expenses (3)
     1,067       710       3,189       2,856  
Amortization of long-term prepaid rents (3)
     323       463       1,074       1,292  
Share based awards compensation expense (4)
     1,018       1,261       3,419       3,338  
 
                        
Adjusted EBITDA (2)
   $ 104,839     $ 102,138     $ 323,619     $ 286,135  
 
                        
 
(1)   Includes amortization of debt issue costs and excludes capitalized interest.
 
(2)   Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, 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 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.
 
(3)   Non-cash expense included in facility lease expense.
 
(4)   Non-cash expense included in general and administrative expenses.

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