Exhibit 99.1
(CINEMARK)
For Immediate Release
Contact:   Robert Copple or Nikki Sacks
972-665-1500
CINEMARK REPORTS RESULTS FOR THIRD QUARTER 2007
Plano, TX, November 12, 2007 — Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor, today reported results for the three and nine months ended September 30, 2007.
Cinemark Holdings, Inc.’s revenues for the three months ended September 30, 2007 increased 63.7% to $471.5 million from $288.0 million for the three months ended September 30, 2006. Admissions revenues increased 73.3% and concession revenues increased 59.8%. The increases were primarily related to a 33.5% increase in attendance; a 29.7% increase in average ticket prices; and a 20.0% 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 September 30, 2007 increased 87.8% to $116.0 million from $61.8 million for the three months ended September 30, 2006. The Company’s Adjusted EBITDA margin was 24.6% for the three months ended September 30, 2007. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Net income before taxes for the three months ended September 30, 2007 was $36.7 million. As a result of the interim period income tax allocations required under generally accepted accounting principles, the Company recorded income tax expense of $60.1 million for the three months ended September 30, 2007. The effective tax rate for the three months ended September 30, 2007 was 163.8%. The high tax rate for the quarter balances the lower tax rates the Company recorded during the first two quarters of 2007, including the income tax credit recorded during the second quarter. The Company’s effective tax rate for the nine months ended September 30, 2007 was 32.8%. The impact of the interim income tax allocation for the three months ended September 30, 2007 was the reason for the Company’s net loss after taxes of $23.4 million.
“In the third quarter the domestic industry box office benefited from a quality slate of movies, driving Cinemark’s strong topline growth,” stated Alan Stock, Cinemark’s Chief Executive Officer. “Our international business also enhanced Cinemark’s performance, with a solid quarter of more than 20% revenue growth along with margin expansion. We increased our year-over-year EBITDA margins by 320 basis points due to our solid operating leverage and effective cost management. The fourth quarter box office has started slower than we would have liked, but we are optimistic about the upcoming holiday releases. We remain focused on our profitability, developing our new theatre pipeline and positioning ourselves to capitalize on leading edge industry innovations in order to create long term shareholder value.”
Cinemark Holdings, Inc.’s revenues for the nine months ended September 30, 2007 increased 55.5% to $1,289.6 million from $829.1 million for the nine months ended September 30, 2006. Admissions revenues increased 62.4% and concession revenues increased 52.9%. The increases were primarily related to a 28.5% increase in attendance; a 26.5% increase in average ticket prices; and an 18.7% 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 nine months ended September 30, 2007 increased 62.6% to $293.1 million from $180.3 million for the nine months ended September 30, 2006. The Company’s Adjusted EBITDA margin was 22.7% for the nine months ended September 30, 2007. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

 

 

Net income for the nine months ended September 30, 2007 was $142.7 million compared to net income of $21.2 million for the nine months ended September 30, 2006.
Net income for the nine months ended September 30, 2007 benefited from a $129.6 million after tax gain on the National CineMedia IPO, but was impacted by non-cash impairment charges of $60.4 million, the majority of which resulted from the Company amending its operating agreement with National CineMedia LLC (NCM). 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.
During the nine months ended September 30, 2007, the Company repurchased approximately $332.1 million aggregate principal amount of its 9% senior subordinated notes primarily utilizing the proceeds from the NCM transaction and repurchased $47.0 million aggregate principal amount at maturity of it 9 3/4% senior discount notes utilizing the proceeds from its initial public offering. The Company recorded a loss on early retirement of debt of approximately $11.5 million related to these note repurchases.
On September 30, 2007, the Company’s aggregate screen count was 4,596, with screens in the United States, Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Colombia. As of September 30, 2007, the Company had signed commitments to open six new theatres with 83 screens by the end of 2007 and open 14 new theatres with 183 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 5:00 P.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 21619028. Additionally, a live audio webcast will be available to interested parties at www.cinemark.com under the Investor Relations section. 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 21619028. The replay will be available until November 14, 2007.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark is a leader in the motion picture exhibition industry. As of September 30, 2007, Cinemark operates 404 theatres and 4,596 screens in 38 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
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,” “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 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 for the latest fiscal year ended 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,  
    2007     2006     2007     2006  
Statement of Operations data:
                                
Revenues
                                
Admissions
   $ 307,951     $ 177,653     $ 835,058     $ 514,183  
Concession
     144,330       90,250       397,865       260,223  
Other
     19,218       20,092       56,634       54,683  
     
Total revenues
     471,499       287,995       1,289,557       829,089  
     
 
                                
Cost of operations
                                
Film rentals and advertising
     166,822       95,759       454,200       275,005  
Concession supplies
     22,546       15,016       62,671       41,863  
Facility lease expense
     54,943       38,268       159,841       113,128  
Other theatre operating expenses
     97,288       62,983       275,326       179,926  
General and administrative expenses
     20,617       16,448       57,731       45,958  
Termination of profit participation agreement
     —       —       6,952       —  
Depreciation and amortization
     38,273       21,357       113,427       64,523  
Impairment of long-lived assets
     3,624       4,276       60,390       5,199  
(Gain) loss on sale of assets and other
     942       3,757       (617 )     5,300  
     
Total cost of operations
     405,055       257,864       1,189,921       730,902  
     
Operating income
     66,444       30,131       99,636       98,187  
 
                                
Interest expense (1)
     (34,968 )     (22,531 )     (111,766 )     (67,108 )
Gain on NCM transaction
     —       —       210,773       —  
Gain on Fandango transaction
     —       —       9,205       —  
Loss on early retirement of debt
     (3,584 )     —       (11,536 )     (2,501 )
Distributions from NCM
     4,392       —       5,754       —  
Other income
     4,374       364       10,383       2,168  
     
Income before taxes
     36,658       7,964       212,449       30,746  
Income taxes
     60,054       5,688       69,764       9,576  
     
Net income (loss)
   $ (23,396 )   $ 2,276     $ 142,685     $ 21,170  
     
Net Earnings (Loss) Per Share:
                                
Basic
   $ (0.22 )   $ 0.03     $ 1.42     $ 0.26  
     
Diluted
   $ (0.22 )   $ 0.03     $ 1.39     $ 0.25  
     
 
                                
Other Financial Data:
                                
Adjusted EBITDA (2)
   $ 116,000     $ 61,760     $ 293,139     $ 180,285  
Adjusted EBITDA margin
     24.6 %     21.4 %     22.7 %     21.7 %
Other Operating Data:
                                
Attendance (patrons):
                                
Domestic
     42,967       28,617       116,821       81,558  
International
     17,275       16,445       48,289       46,929  
     
Worldwide
     60,242       45,062       165,110       128,487  
     
 
                                
Average screen count (month end average):
                                
Domestic
     3,606       2,469       3,563       2,449  
International
     984       939       969       926  
     
Worldwide
     4,590       3,408       4,532       3,375  
     

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    As of     As of  
    September 30,     December 31,  
    2007     2006  
Balance Sheet Data:
                
Cash and cash equivalents
   $ 333,076     $ 147,099  
Theatre properties and equipment, net
     1,332,315       1,324,572  
Total assets
     3,290,320       3,171,582  
Long-term debt, including current portion
     1,534,636       1,911,653  
Stockholders’ equity
     1,087,553       689,297  
Segment Information
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
Revenues
                                
U.S.
   $ 378,417     $ 210,733     $ 1,033,835     $ 607,729  
International
     93,910       77,818       257,961       222,780  
Eliminations
     (828 )     (556 )     (2,239 )     (1,420 )
     
Total Revenues
   $ 471,499     $ 287,995     $ 1,289,557     $ 829,089  
     
Adjusted EBITDA (2)
                                
U.S.
   $ 94,732     $ 45,685     $ 237,606     $ 135,074  
International
     21,268       16,075       55,533       45,211  
     
Total Adjusted EBITDA
   $ 116,000     $ 61,760     $ 293,139     $ 180,285  
     
Capital Expenditures
                                
U.S.
   $ 28,802     $ 14,533     $ 81,847     $ 59,931  
International
     8,099       8,306       28,202       17,971  
     
Total Capital Expenditures
   $ 36,901     $ 22,839     $ 110,049     $ 77,902  
     

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Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
Net income (loss)
   $ (23,396 )   $ 2,276     $ 142,685     $ 21,170  
Income taxes
     60,054       5,688       69,764       9,576  
Interest expense (1)
     34,968       22,531       111,766       67,108  
Gain on NCM transaction
     —       —       (210,773 )     —  
Gain on Fandango transaction
     —       —       (9,205 )     —  
Loss on early retirement of debt
     3,584       —       11,536       2,501  
Other income
     (4,374 )     (364 )     (10,383 )     (2,168 )
Termination of profit participation agreement
     —       —       6,952       —  
Depreciation and amortization
     38,273       21,357       113,427       64,523  
Impairment of long-lived assets
     3,624       4,276       60,390       5,199  
(Gain) loss on sale of assets and other
     942       3,757       (617 )     5,300  
Deferred lease expenses (3)
     1,295       1,289       4,606       4,112  
Amortization of long-term prepaid rents (3)
     314       234       826       816  
Stock option compensation expense (4)
     716       716       2,165       2,148  
     
Adjusted EBITDA (2)
   $ 116,000     $ 61,760     $ 293,139     $ 180,285  
     
 
(1)   Includes amortization of debt issue costs and excludes capitalized interest.
 
(2)   Adjusted EBITDA as calculated in the chart above represents net income (loss) before income taxes, interest expense, gain on NCM transaction, gain on Fandango transaction, loss on early retirement of debt, other income, termination of profit participation agreement, 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 stock option 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 (loss) 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. Adjusted EBITDA margin represents Adjusted EBITDA divided by total revenues.
 
(3)   Non-cash expense included in facility lease expense.
 
(4)   Non-cash expense included in general and administrative expenses.

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