Exhibit 99.1
(LOGO)
CINEMARK HOLDINGS, INC. REPORTS Q1 2011 ADJUSTED EBITDA OF $102.7 MILLION ON
REVENUES OF $483.1 MILLION
Plano, TX, May 5, 2011 — 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, 2011.
Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2011 were $483.1 million compared to $516.6 million for the three months ended March 31, 2010. For the three months ended March 31, 2011, admissions revenues were $311.7 million and concession revenues were $146.7 million. Attendance declined 8.0%, average ticket prices declined 1.2% and concession revenues per patron increased 4.2%.
Adjusted EBITDA for the three months ended March 31, 2011 was $102.7 million compared to $121.8 million for the three months ended March 31, 2010. 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, 2011 was $25.0 million compared to $35.1 million for the three months ended March 31, 2010.
“Despite the lackluster film slate for the first quarter of 2011, Cinemark’s geographic diversity and operating discipline helped us post our tenth consecutive quarter of domestic industry out-performance and maintain solid margins,” stated Alan Stock, Cinemark’s Chief Executive Officer. “Our international segment continues to benefit from the overall healthy economic climate throughout Latin America, posting a 19.4% increase in total revenues over the prior year.”
As of March 31, 2011, Cinemark had commitments to open 11 new theatres and 95 screens during the remainder of 2011 and 12 additional new theatres with 125 screens subsequent to 2011.
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 May 8, 2011 via 800/642-1687 or 706/645-9291, passcode: 63951054.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 431 theatres with 4,941 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of March 31, 2011. 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 1, 2011 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  
    March 31,  
    2011     2010  
Statement of income data:
               
Revenues
               
Admissions
  $ 311,692     $ 342,990  
Concession
    146,681       153,104  
Other
    24,763       20,537  
     
Total revenues
    483,136       516,631  
 
               
Cost of operations
               
Film rentals and advertising
    165,153       188,819  
Concession supplies
    23,282       22,406  
Facility lease expense
    66,426       62,715  
Other theatre operating expenses
    109,906       107,763  
General and administrative expenses
    28,986       25,530  
Depreciation and amortization
    39,140       34,091  
Impairment of long-lived assets
    1,015       347  
Loss on sale of assets and other
    472       3,167  
     
Total cost of operations
    434,380       444,838  
     
Operating income
    48,756       71,793  
Interest expense (1)
    (29,290 )     (26,010 )
Distributions from NCM
    9,863       9,946  
Other income
    5,030       812  
     
Income before income taxes
    34,359       56,541  
Income taxes
    9,037       19,830  
     
Net income
  $ 25,322     $ 36,711  
Less: Net income attributable to noncontrolling interests
    359       1,618  
     
Net income attributable to Cinemark Holdings, Inc.
  $ 24,963     $ 35,093  
     
 
               
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
               
Basic
  $ 0.22     $ 0.32  
     
Diluted
  $ 0.22     $ 0.31  
     
 
               
Weighted average diluted shares outstanding
    112,899       110,880  
     
Other financial data:
               
Adjusted EBITDA (2)
  $ 102,706     $ 121,781  
     
(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  
    March 31,     December 31,  
    2011     2010  
Balance Sheet Data:
               
Cash and cash equivalents
  $ 463,308     $ 464,997  
Theatre properties and equipment, net
  $ 1,206,796     $ 1,215,446  
Total assets
  $ 3,404,139     $ 3,421,478  
Long-term debt, including current portion
  $ 1,529,938     $ 1,532,441  
Equity
  $ 1,049,741     $ 1,033,152  
                 
    Three months ended  
    March 31,  
    2011     2010  
Other operating data:
               
Attendance (patrons):
               
Domestic
    33,389       39,573  
International
    20,382       18,934  
     
Worldwide
    53,771       58,507  
     
 
               
Average ticket price (in dollars):
               
Domestic
  $ 6.40     $ 6.55  
International
  $ 4.81     $ 4.43  
Worldwide
  $ 5.79     $ 5.86  
 
               
Concession revenues per patron (in dollars):
               
Domestic
  $ 3.14     $ 2.99  
International
  $ 2.05     $ 1.83  
Worldwide
  $ 2.73     $ 2.62  
 
               
Average screen count (month end average):
               
Domestic
    3,820       3,825  
International
    1,121       1,066  
     
Worldwide
    4,941       4,891  
     
Segment Information
(unaudited, in thousands)
                 
    Three months ended  
    March 31,  
    2011     2010  
Revenues
               
U.S.
  $ 330,866     $ 388,615  
International
    154,471       129,271  
Eliminations
    (2,201 )     (1,255 )
     
Total revenues
  $ 483,136     $ 516,631  
     
Adjusted EBITDA
               
U.S.
  $ 68,791     $ 89,405  
International
    33,915       32,376  
     
Total Adjusted EBITDA
  $ 102,706     $ 121,781  
     
Capital expenditures
               
U.S.
  $ 11,468     $ 12,500  
International
    24,301       7,017  
     
Total capital expenditures
  $ 35,769     $ 19,517  
     

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Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                 
    Three Months Ended  
    March 31,  
    2011     2010  
Net income
  $ 25,322     $ 36,711  
Income taxes
    9,037       19,830  
Interest expense
    29,290       26,010  
Other income
    (5,030 )     (812 )
Depreciation and amortization
    39,140       34,091  
Impairment of long-lived assets
    1,015       347  
Loss on sale of assets and other
    472       3,167  
Deferred lease expenses — theatres(2)
    296       750  
Deferred lease expenses — DCIP equipment (3)
    484       33  
Amortization of long-term prepaid rents (2)
    667       341  
Share based awards compensation expense (4)
    2,013       1,313  
     
Adjusted EBITDA (1)
  $ 102,706     $ 121,781  
     
(1)   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 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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