Exhibit 99.1
(LOGO)
CINEMARK HOLDINGS, INC. REPORTS Q3 2010
ADJUSTED EBITDA OF $125.1 MILLION ON REVENUES OF $560.2 MILLION
- Raises Quarterly Cash Dividend to $0.21 Per Share -
Plano, TX, November 5, 2010 — Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and nine months ended September 30, 2010. Separately, Cinemark Holdings, Inc.’s Board of Directors approved a new dividend policy, under which the Company has increased its annual dividend 16.7% to $0.84 per share of common stock, or $0.21 per share quarterly.
Cinemark Holdings, Inc.’s revenues for the three months ended September 30, 2010 increased 12.8% to $560.2 million from $496.8 million for the three months ended September 30, 2009. For the three months ended September 30, 2010, admissions revenues increased 13.8% to $367.6 million and concession revenues increased 11.2% to $170.2 million. The increases were primarily related to an 8.8% increase in attendance, a 4.7% increase in average ticket price and a 2.4% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended September 30, 2010 increased 19.4% to $125.1 million from $104.8 million for the three months ended September 30, 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 September 30, 2010 increased 58.6% to $33.3 million compared to $21.0 million for the three months ended September 30, 2009.
“The 2010 third quarter marked the eighth consecutive reporting period in which Cinemark’s domestic box office performance exceeded the industry,” stated Cinemark Holdings, Inc.’s Chief Executive Officer Alan Stock. “In addition, our international circuit continues to deliver impressive revenue, attendance and Adjusted EBITDA growth.”
Cinemark Holdings, Inc.’s revenues for the nine months ended September 30, 2010 increased 12.2% to $1,616.2 million from $1,440.1 million for the nine months ended September 30, 2009. During the nine months ended September 30, 2010, admissions revenues increased 12.9% to $1,063.7 million and concession revenues increased 10.5% to $488.5 million. The increases were primarily related to a 5.0% increase in attendance, a 7.6% increase in average ticket price and a 5.2% increase in concession revenues per patron.
Adjusted EBITDA for the nine months ended September 30, 2010 increased 15.0% to $372.0 million from $323.6 million for the nine months ended September 30, 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 nine months ended September 30, 2010 increased 89.0% to $108.1 million compared to $57.2 million for the nine months ended September 30, 2009. Net income for the nine months ended September 30, 2009 included a loss on early retirement of debt of approximately $27.9 million, before income taxes.
On September 30, 2010, the Company’s aggregate screen count was 4,938. As of September 30, 2010, the Company had signed commitments to open seven new theatres with 62 screens by the end of 2010 and open 17 new theatres and 170 screens subsequent to 2010.
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 November 8, 2010 via 800/642-1687 or 706/645-9291, passcode: 21039979.

 


 

About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 428 theatres with 4,938 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of September 30, 2010. For more information go to www.cinemark.com.
Contacts:
Robert Copple — 972/665-1500
Robert Rinderman — Jaffoni & Collins — 212/835-8500 or CNK@jcir.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 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.

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Cinemark Holdings, Inc.
Financial and Operating Summary
(unaudited, in thousands, except per share amounts)
                                 
    Three months ended        
    September 30,     Nine months ended September 30,  
    2010     2009     2010     2009  
Statement of income data:
                               
Revenues
                               
Admissions
  $ 367,662     $ 322,915     $ 1,063,737     $ 941,886  
Concession
    170,130       152,938       488,464       441,895  
Other
    22,443       20,972       64,034       56,352  
     
Total revenues
    560,235       496,825       1,616,235       1,440,133  
 
                               
Cost of operations
                               
Film rentals and advertising
    200,495       175,993       582,864       513,945  
Concession supplies
    26,565       23,485       73,465       67,229  
Facility lease expense
    66,587       61,545       191,292       176,478  
Other theatre operating expenses
    121,133       114,016       342,794       313,332  
General and administrative expenses
    28,113       23,517       78,589       68,980  
Depreciation and amortization
    34,984       38,508       103,990       112,845  
Impairment of long-lived assets
    1,022       3,146       6,057       8,115  
Loss on sale of assets and other
    7,548       944       11,906       2,402  
     
Total cost of operations
    486,447       441,154       1,390,957       1,263,326  
     
Operating income
    73,788       55,671       225,278       176,807  
 
                               
Interest expense (1)
    (28,938 )     (25,893 )     (83,553 )     (77,006 )
Distributions from NCM
    4,263       4,162       15,541       15,768  
Loss on early retirement of debt
          (1,083 )           (27,878 )
Other income
    647       1,384       5       3,671  
     
Income before income taxes
    49,760       34,241       157,271       91,362  
Income taxes
    15,877       12,186       45,918       31,149  
     
Net income
  $ 33,883     $ 22,055     $ 111,353     $ 60,213  
Less: Net income attributable to noncontrolling interests
    551       1,044       3,246       2,967  
     
Net income attributable to Cinemark Holdings, Inc.
  $ 33,332     $ 21,011     $ 108,107     $ 57,246  
     
 
                               
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
                               
Basic
  $ 0.29     $ 0.19     $ 0.96     $ 0.52  
     
Diluted
  $ 0.29     $ 0.19     $ 0.96     $ 0.52  
     
 
                               
Weighted average diluted shares outstanding
    112,516       110,372       111,764       110,075  
     
 
                               
Other financial data:
                               
Adjusted EBITDA (2)
  $ 125,077     $ 104,839     $ 371,974     $ 323,619  
     
     
(1)
  Includes amortization of debt issue costs and excludes capitalized interest.
(2)
  Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net income is provided in the financial schedules accompanying this press release.

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    As of     As of  
    September 30,     December 31,  
    2010     2009  
Balance sheet data:
               
Cash and cash equivalents
  $ 430,467     $ 437,936  
Theatre properties and equipment, net
  $ 1,189,191     $ 1,219,588  
Total assets
  $ 3,312,311     $ 3,276,448  
Long-term debt, including current portion
  $ 1,535,129     $ 1,543,705  
Equity
  $ 995,392     $ 914,628  
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2010     2009     2010     2009  
Other operating data:
                               
Attendance (patrons):
                               
Domestic
    42,198       40,984       123,429       122,174  
International
    23,558       19,411       61,018       53,464  
     
Worldwide
    65,756       60,395       184,447       175,638  
     
Average ticket price (in dollars):
                               
Domestic
  $ 6.22     $ 6.02     $ 6.41     $ 6.13  
International
  $ 4.47     $ 3.92     $ 4.47     $ 3.62  
Worldwide
  $ 5.60     $ 5.35     $ 5.77     $ 5.36  
Concession revenues per patron (in dollars):
                               
Domestic
  $ 2.96     $ 2.92     $ 3.02     $ 2.92  
International
  $ 1.92     $ 1.71     $ 1.89     $ 1.59  
Worldwide
  $ 2.59     $ 2.53     $ 2.65     $ 2.52  
Average screen count (month end average):
                               
Domestic
    3,845       3,842       3,833       3,805  
International
    1,077       1,059       1,072       1,044  
     
Worldwide
    4,922       4,901       4,905       4,849  
     
Segment Information
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2010     2009     2010     2009  
Revenues
                               
U.S.
  $ 400,277     $ 378,046     $ 1,199,856     $ 1,139,065  
International
    161,492       119,866       420,404       304,024  
Eliminations
    (1,534 )     (1,087 )     (4,025 )     (2,956 )
     
Total revenues
  $ 560,235     $ 496,825     $ 1,616,235     $ 1,440,133  
     
Adjusted EBITDA (1)
                               
U.S.
  $ 87,778     $ 77,907     $ 273,731     $ 260,202  
International
    37,299       26,932       98,243       63,417  
     
Total Adjusted EBITDA
  $ 125,077     $ 104,839     $ 371,974     $ 323,619  
     
Capital expenditures
                               
U.S.
  $ 11,564     $ 15,429     $ 47,571     $ 58,851  
International
    19,733       9,256       40,685       26,752  
     
Total capital expenditures
  $ 31,297     $ 24,685     $ 88,256     $ 85,603  
     

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Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2010     2009     2010     2009  
Net income
  $ 33,883     $ 22,055     $ 111,353     $ 60,213  
Income taxes
    15,877       12,186       45,918       31,149  
Interest expense
    28,938       25,893       83,553       77,006  
Loss on early retirement of debt
          1,083             27,878  
Other income
    (647 )     (1,384 )     (5 )     (3,671 )
Depreciation and amortization
    34,984       38,508       103,990       112,845  
Impairment of long-lived assets
    1,022       3,146       6,057       8,115  
Loss on sale of assets and other
    7,548       944       11,906       2,402  
Deferred lease expenses — theatres (2)
    847       1,067       2,398       3,189  
Deferred lease expenses — DCIP equipment (3)
    232             378        
Amortization of long-term prepaid rents (2)
    468       323       1,247       1,074  
Share based awards compensation expense (4)
    1,925       1,018       5,179       3,419  
     
Adjusted EBITDA (1)
  $ 125,077     $ 104,839     $ 371,974     $ 323,619  
     
     
(1)
  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.
(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.

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