Exhibit 99.1
(CIONEMARK)
CINEMARK HOLDINGS, INC. REPORTS Q4 2010 ADJUSTED EBITDA OF $113.9 MILLION ON
REVENUES OF $524.9 MILLION
Plano, TX, February 24, 2011 — Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three months and year ended December 31, 2010.
Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2010 were $524.9 million compared to $536.4 million for the three months ended December 31, 2009. For the three months ended December 31, 2010, admissions revenues decreased 2.8% to $341.7 million and concession revenues decreased 4.5% to $153.8 million. The decreases were primarily related to a 7.0% decrease in attendance, partially offset by a 4.7% increase in average ticket price and a 2.7% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended December 31, 2010 was $113.9 million compared to $121.9 million for the three months ended December 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 December 31, 2010 was $38.0 million compared to $39.9 million for the three months ended December 31, 2009.
“Cinemark continued its domestic out-performance streak during the fourth quarter of 2010 and posted another strong period, finishing the year with more than $2 billion in worldwide revenues for the first time in its history, ” stated Alan Stock, Cinemark’s Chief Executive Officer. “We achieved an approximate 9% increase in Adjusted EBITDA for the full year as a result of a very strong performance in Latin America and our operating discipline.”
Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2010 increased 8.3% to $2,141.1 million from $1,976.5 million for the year ended December 31, 2009. For the year ended December 31, 2010, admissions revenues increased 8.7% to $1,405.4 million and concession revenues increased 6.5% to $642.3 million. The increases were primarily related to a 1.9% increase in attendance, a 6.8% increase in average ticket prices and a 4.3% increase in concession revenues per patron.
Adjusted EBITDA for the year ended December 31, 2010 increased 9.1% to $485.9 million from $445.5 million for the year ended December 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 year ended December 31, 2010 increased to $146.1 million from $97.1 million for the year ended December 31, 2009.
On December 31, 2010, the Company’s aggregate screen count was 4,945. As of December 31, 2010, Cinemark had commitments to open 12 new theatres and 102 screens during 2011 and nine additional new theatres with 94 screens subsequent to 2011.
The Company’s board of directors declared a cash dividend for its 2010 fourth quarter of $0.21 per share of common stock. The dividend will be paid on March 16, 2011 to stockholders of record on March 4, 2011.

 


 

Conference Call/Webcast — Today at 10 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 February 28, 2011 via 800/642-1687 or 706/645-9291, passcode: 45716646.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 430 theatres with 4,945 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of December 31, 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)
                                 
    Three months ended     Years ended  
    December 31,     December 31,  
    2010     2009     2010     2009  
Statement of Operations Data:
                               
Revenues
                               
Admissions
  $ 341,652     $ 351,492     $ 1,405,389     $ 1,293,378  
Concession
    153,862       160,985       642,326       602,880  
Other
    29,395       23,890       93,429       80,242  
             
Total revenues
  $ 524,909     $ 536,367     $ 2,141,144     $ 1,976,500  
             
 
                               
Cost of operations
                               
Film rentals and advertising
    186,834       194,215       769,698       708,160  
Concession supplies
    24,019       24,689       97,484       91,918  
Facility lease expense
    64,425       62,301       255,717       238,779  
Other theatre operating expenses
    117,922       112,765       460,716       426,097  
General and administrative expenses
    30,456       27,517       109,045       96,497  
Depreciation and amortization
    39,518       36,670       143,508       149,515  
Impairment of long-lived assets
    6,481       3,743       12,538       11,858  
(Gain) loss on sale of assets and other
    (12,337 )     800       (431 )     3,202  
             
Total cost of operations
    457,318       462,700       1,848,275       1,726,026  
             
Operating income
    67,591       73,667       292,869       250,474  
Interest expense (1)
    (28,891 )     (25,499 )     (112,444 )     (102,505 )
Loss on early retirement of debt
    (3 )           (3 )     (27,878 )
Distributions from NCM
    7,817       5,054       23,358       20,822  
Other income
    3,716       1,017       3,721       4,688  
             
Income before income taxes
    50,230       54,239       207,501       145,601  
Income taxes
    11,920       13,696       57,838       44,845  
             
Net income
  $ 38,310     $ 40,543     $ 149,663     $ 100,756  
 
                               
Less: Net income attributable to noncontrolling interests
    297       681       3,543       3,648  
             
 
                               
Net income attributable to Cinemark Holdings, Inc.
  $ 38,013     $ 39,862     $ 146,120     $ 97,108  
             
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
                               
Basic
  $ 0.33     $ 0.36     $ 1.30     $ 0.89  
             
Diluted
  $ 0.33     $ 0.36     $ 1.29     $ 0.87  
             
 
                               
Weighted average diluted shares outstanding
    112,783       110,758       112,151       110,255  
             
 
                               
Other Financial Data:
                               
Adjusted EBITDA (2)
  $ 113,946     $ 121,905     $ 485,920     $ 445,524  
             
 
(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  
    December 31,  
    2010     2009  
Balance Sheet Data (unaudited, in thousands):
               
Cash and cash equivalents
  $ 464,997     $ 437,936  
Theatre properties and equipment, net
    1,215,446       1,219,588  
Total assets
    3,421,478       3,276,448  
Long-term debt, including current portion
    1,532,441       1,543,705  
Equity
    1,033,152       914,628  
Segment Information
(unaudited, in thousands)
                                 
    Three months ended     Years ended  
    December 31,     December 31,  
    2010     2009     2010     2009  
Revenues
                               
U.S.
  $ 384,425     $ 419,671     $ 1,584,281     $ 1,558,736  
International
    143,836       117,741       564,240       421,765  
Eliminations
    (3,352 )     (1,045 )     (7,377 )     (4,001 )
     
Total revenues
  $ 524,909     $ 536,367     $ 2,141,144     $ 1,976,500  
     
Adjusted EBITDA
                               
U.S.
  $ 89,614     $ 101,483     $ 363,345     $ 361,685  
International
    24,332       20,422       122,575       83,839  
     
Total Adjusted EBITDA
  $ 113,946     $ 121,905     $ 485,920     $ 445,524  
     
Capital Expenditures
                               
U.S.
  $ 22,903     $ 22,844     $ 70,474     $ 81,695  
International
    44,943       16,350       85,628       43,102  
     
Total capital expenditures
  $ 67,846     $ 39,194     $ 156,102     $ 124,797  
     

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Additional Segment Information (1)
(unaudited)
                                                                         
    U.S. Operating Segment   International Operating Segment   Consolidated
    Three Months Ended           Three Months Ended           Three Months Ended    
    December 31,           December 31,           December 31,    
                    %                   %                   %
    2010   2009   Change   2010   2009   Change   2010   2009   Change
Admissions revenues
  $ 253.7     $ 277.3       (8.5 )%   $ 88.0     $ 74.2       18.6 %   $ 341.7     $ 351.5       (2.8 )%
Concession revenues
  $ 114.8     $ 128.2       (10.5 )%   $ 39.0     $ 32.8       18.9 %   $ 153.8     $ 161.0       (4.5 )%
Other revenues(2)
  $ 12.6     $ 13.1       (3.8 )%   $ 16.8     $ 10.8       55.6 %   $ 29.4     $ 23.9       23.0 %
Total revenues(2)
  $ 381.1     $ 418.6       (9.0 )%   $ 143.8     $ 117.8       22.1 %   $ 524.9     $ 536.4       (2.1 )%
Attendance
    37.8       42.9       (11.9 )%     19.0       18.2       4.4 %     56.8       61.1       (7.0 )%
Average ticket price
  $ 6.71     $ 6.46       3.9 %   $ 4.63     $ 4.08       13.5 %   $ 6.02     $ 5.75       4.7 %
Concession revenues per patron
  $ 3.04     $ 2.99       1.7 %   $ 2.05     $ 1.80       13.9 %   $ 2.71     $ 2.64       2.7 %
Average screen count
    3,829       3,833               1,098       1,066               4,927       4,899          
Revenues per average screen(2)
  $ 99,536     $ 109,216       (8.9 )%   $ 130,998     $ 110,451       18.6 %   $ 106,548     $ 109,485       (2.7 )%
                                                 
                    International Operating    
    U.S. Operating Segment   Segment   Consolidated
    Three Months Ended   Three Months Ended   Three Months Ended
    December 31,   December 31,   December 31,
    2010   2009   2010   2009   2010   2009
Film rentals and advertising
  $ 140.9     $ 156.1     $ 46.0     $ 38.2     $ 186.9     $ 194.3  
Concession supplies
    14.1       16.5       9.9       8.2       24.0       24.7  
Salaries and wages
    42.6       44.4       13.0       9.9       55.6       54.3  
Facility lease expense
    45.3       45.9       19.1       16.4       64.4       62.3  
Utilities and other
    36.9       40.8       25.4       17.6       62.3       58.4  
                                                                         
    U.S. Operating Segment   International Operating Segment   Consolidated
    Year Ended           Year Ended           Year Ended    
    December 31,           December 31,           December 31,    
                    %                   %                   %
    2010   2009   Change   2010   2009   Change   2010   2009   Change
Admissions revenues
  $ 1,044.7     $ 1,025.9       1.8 %   $ 360.7     $ 267.5       34.8 %   $ 1,405.4     $ 1,293.4       8.7 %
Concession revenues
  $ 487.9     $ 485.2       0.6 %   $ 154.4     $ 117.7       31.2 %   $ 642.3     $ 602.9       6.5 %
Other revenues(2)
  $ 44.3     $ 43.6       1.6 %   $ 49.1     $ 36.6       34.2 %   $ 93.4     $ 80.2       16.5 %
Total revenues(2)
  $ 1,576.9     $ 1,554.7       1.4 %   $ 564.2     $ 421.8       33.8 %   $ 2,141.1     $ 1,976.5       8.3 %
Attendance
    161.2       165.1       (2.4 )%     80.0       71.6       11.7 %     241.2       236.7       1.9 %
Average ticket price
  $ 6.48     $ 6.21       4.3 %   $ 4.51     $ 3.74       20.6 %   $ 5.83     $ 5.46       6.8 %
Concession revenues per patron
  $ 3.03     $ 2.94       3.1 %   $ 1.93     $ 1.64       17.7 %   $ 2.66     $ 2.55       4.3 %
Average screen count
    3,830       3,810               1,079       1,050               4,909       4,860          
Revenues per average screen(2)
  $ 411,708     $ 408,017       0.9 %   $ 523,078     $ 401,828       30.2 %   $ 436,181     $ 406,681       7.3 %

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                    International Operating    
    U.S. Operating Segment   Segment   Consolidated
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2010   2009   2010   2009   2010   2009
Film rentals and advertising
  $ 586.6     $ 572.3     $ 183.1     $ 135.9     $ 769.7     $ 708.2  
Concession supplies
    59.1       61.9       38.4       30.0       97.5       91.9  
Salaries and wages
    174.1       168.8       47.1       34.6       221.2       203.4  
Facility lease expense
    181.9       178.8       73.8       60.0       255.7       238.8  
Utilities and other
    161.5       163.5       78.0       59.2       239.5       222.7  
 
(1)   Revenues and attendance are in millions. Average ticket price, concession revenues per patron and revenues per average screen are in dollars. Theatre operating costs are in millions.
 
(2)   U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                                 
    Three months ended     Years ended  
    December 31, December 31,  
    2010     2009     2010     2009  
Net income
  $ 38,310     $ 40,543     $ 149,663     $ 100,756  
Income taxes
    11,920       13,696       57,838       44,845  
Interest expense
    28,891       25,499       112,444       102,505  
Loss on early retirement of debt
    3             3       27,878  
Other income
    (3,716 )     (1,017 )     (3,721 )     (4,688 )
Depreciation and amortization
    39,518       36,670       143,508       149,515  
Impairment of long-lived assets
    6,481       3,743       12,538       11,858  
(Gain) loss on sale of assets and other
    (12,337 )     800       (431 )     3,202  
Deferred lease expenses — theatres (2)
    823       771       3,221       3,960  
Deferred lease expenses — DCIP (3)
    341             719        
Amortization of long-term prepaid rents (2)
    539       315       1,786       1,389  
Share based awards compensation expense (4)
    3,173       885       8,352       4,304  
     
Adjusted EBITDA (1)
  $ 113,946     $ 121,905     $ 485,920     $ 445,524  
     
 
(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, (gain) 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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