Exhibit 99.1
For Immediate Release
Contact: Robert Copple or Nikki Sacks
972-665-1500
CINEMARK HOLDINGS, INC. REPORTS RESULTS FOR FIRST QUARTER 2007
Plano, TX, May 15, 2007 — Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor,
today reported results for the three months ended March 31, 2007.
Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2007 increased 53.7% to
$378.0 million from $246.0 million for the three months ended March 31, 2006. The increase was
primarily related to a 27.8% increase in attendance; a 24.3% increase in average ticket prices; and
a 15.3% increase in concession revenues per patron, all of which were favorably impacted by the
acquisition of Century Theatres, Inc. that occurred on October 5, 2006.
Adjusted EBITDA for the three months ended March 31, 2007 increased 61.4% to $80.1 million
from $49.6 million for the three months ended March 31, 2006. The Company’s Adjusted EBITDA margin
was 21.2% for the three months ended March 31, 2007, which increased 100 basis points over the
margin for the three months ended March 31, 2006. Reconciliations of non-GAAP financial measures
are provided in the financial schedules accompanying this press release.
Net income for the three months ended March 31, 2007 was $118.2 million compared to net income of
$5.8 million for the three months ended March 31, 2006. Net income benefited from a $129.6 million
after tax gain on the National CineMedia IPO, but was impacted by non-cash impairment charges of $49.7
million, the majority of which resulted from the Company amending its operating agreement with
National CineMedia LLC (NCM). As part of the National CineMedia IPO, Cinemark received a payment to
alter its exhibitor services agreement with NCM. As a result of the revised agreement, future cash
flows attributable to the exhibitor services agreement are expected to decrease, causing the
Company to evaluate and thus impair the carrying value of its goodwill as of March 31, 2007, which constitutes a majority
of the non-cash impairment charges. Cinemark records and measures goodwill for impairment purposes at an
individual theatre level, rather than aggregated at the corporate
level, which can result in more volatile impairment charges.
On
March 20, 2007, the Company repurchased approximately
$332.0 million aggregate principal amount of its 9% senior
subordinated notes primarily utilizing the proceeds from the NCM
transactions. The Company recorded a loss on early retirement of debt
of approximately $7.8 million related to this note repurchase. Additionally, on April 24, 2007, the Company
completed its initial public offering. The proceeds to the company from the initial public offering were
approximately $249.4 million before expenses. The Company expects to use the proceeds to further
reduce its long-term debt.
“During the first quarter our strong performance was driven by a solid industry box office
along with the integration of the acquired Century theatres,” stated Alan Stock, Cinemark’s Chief Executive Officer. “We also prepared the Company
for our
First Quarter 2007
News Release
initial public offering and successfully reduced
a portion of our long-term debt. As we
enter the second quarter, we are excited about the upcoming slate of blockbuster movies. The summer
season has certainly started off very well with a record box-office opening for Spiderman 3. We are
pleased to have completed our IPO and are now focused on driving long term revenue and EBITDA growth.”
On March 31, 2007, the Company’s aggregate screen count was 4,479, with screens in the United
States, Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua,
Costa Rica, Panama and Colombia. As of March 31, 2007, the Company had signed commitments to open
18 new theatres with 234 screens by the end of 2007 and open 12 new theatres with 166 screens
subsequent to 2007.
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. The passcode is 8916016.
Additionally, a live audio webcast will be
available to interested parties at www.cinemark.com under the Investor Relations section.
Due to the quiet period associated with the Company’s initial public offering, there will be no
question and answer session on the call.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark is a leader in the motion picture exhibition industry. As of
March 31, 2007, Cinemark operates 395 theatres and 4,479 screens in 37 states in the United
States and internationally in 12 countries, mainly in Mexico, South and Central America. For more
information go to www.cinemark.com.
Forward-looking Statements
Cinemark Holdings, Inc. intends that this release be governed by the “safe harbor” provision of the
Private Securities Litigation Reform Act of 1995 (the “PSLR Act”) with respect to statements that
may be deemed to be forward-looking statements. Statements contained in this release other than
statements of historical fact, including statements based on our current expectations, assumptions,
estimates and projections about our business and our industry, are forward-looking statements. You
can identify forward-looking statements by the use of words such as “may,” “should,” “will,”
“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 Cinemark Holdings,
Inc.’s control and difficult to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements. Forward-looking statements
contained in this release reflect Cinemark Holdings, Inc.’s view only as of the date of this
release. Cinemark Holdings, Inc. does not undertake any 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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