Exhibit 99.1
(CINE MARK LOGO)
For Immediate Release
Contact: Robert Copple or Nikki Sacks
972-665-1500
CINEMARK HOLDINGS, INC. REPORTS RESULTS FOR THIRD QUARTER 2008 AND
DECLARES QUARTERLY CASH DIVIDEND
Plano, TX, November 10, 2008 — Cinemark Holdings, Inc. (NYSE: CNK), a leading motion picture exhibitor, today reported results for the three and nine months ended September 30, 2008.
Cinemark Holdings, Inc.’s revenues for the three months ended September 30, 2008 increased 1.0% to $476.2 million from $471.5 million for the three months ended September 30, 2007. Admissions revenues increased 0.2% and concession revenues increased 1.2%. The increases were primarily related to a 4.5% increase in average ticket prices and a 5.4% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended September 30, 2008 decreased 12.0% to $102.1 million from $116.0 million for the three months ended September 30, 2007. The Company’s Adjusted EBITDA margin was 21.4% for the three months ended September 30, 2008. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Net income for the three months ended September 30, 2008 was $20.4 million compared to a net loss of $23.4 million for the three months ended September 30, 2007.
“Our performance during the third quarter reinforces our belief that compelling movie product is the most significant driver of attendance, as illustrated by the strong performance of films such as The Dark Knight,” stated Alan Stock, Cinemark’s Chief Executive Officer. “Our third quarter benefitted from our broad geographic presence as we increased revenues year over year, due in part to strength in our international markets.”
Mr. Stock concluded, “As we head into the fourth quarter, the domestic industry’s box office was up approximately 17% for the month of October and we feel consumers will continue to seek affordable entertainment options during these challenging economic times. We continue to generate strong cash flows as well as maintain a solid balance sheet.”
Cinemark Holdings, Inc.’s revenues for the nine months ended September 30, 2008 increased 3.5% to $1,334.5 million from $1,289.6 million for the nine months ended September 30, 2007. Admissions revenues increased 3.6% and concession revenues increased 3.0%. The increases were primarily related to a 6.3% increase in average ticket prices and a 5.8% increase in concession revenues per patron.
Adjusted EBITDA for the nine months ended September 30, 2008 decreased 2.4% to $286.1 million from $293.1 million for the nine months ended September 30, 2007. The Company’s Adjusted EBITDA margin was 21.4% for the nine months ended September 30, 2008. 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, 2008 was $41.2 million compared to net income of $142.7 million for the nine months ended September 30, 2007. Net income for the nine months ended September 30, 2007 included a gain of $210.8 million related to the sale of a portion of our investment in National CineMedia, LLC and non-cash impairment charges of $60.4 million.

 

 

As of September 30, 2008, Cinemark Holdings, Inc.’s cash position was $371.3 million and total long-term debt was $1.54 billion, resulting in net debt at quarter end of $1.17 billion. The Company’s senior debt and its subordinated debt do not mature until 2013 and 2014. Additionally, the Company has an undrawn revolver. Net debt to trailing twelve month EBITDA ratio was 3.16 as of September 30, 2008.
On September 30, 2008, the Company’s aggregate screen count was 4,717, 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, 2008, the Company had signed commitments to open ten new theatres with 98 screens by the end of 2008 and open eleven new theatres with 147 screens subsequent to 2008.
The Company’s board of directors has declared a cash dividend for its third quarter of fiscal 2008 of $0.18 per share of common stock. The dividend will be paid on December 11, 2008 to stockholders of record on November 26, 2008.
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 45975338. 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 68151677. The replay will be available until November 12, 2008. Additionally, a live audio webcast will be available to interested parties at www.cinemark.com under the Investor Relations section.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark is a leader in the motion picture exhibition industry. As of September 30, 2008, Cinemark operates 414 theatres and 4,717 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 filed March 28, 2008 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,
    2008   2007   2008   2007
Statement of Operations data:
                                
Revenues
                                
Admissions
   $ 308,453     $ 307,951     $ 865,245     $ 835,058  
Concession
     146,076       144,330       409,707       397,865  
Other
     21,694       19,218       59,521       56,634  
     
Total revenues
     476,223       471,499       1,334,473       1,289,557  
     
 
                                
Cost of operations
                                
Film rentals and advertising
     169,260       166,822       471,199       454,200  
Concession supplies
     24,489       22,546       66,443       62,671  
Facility lease expense
     58,936       54,943       171,382       159,841  
Other theatre operating expenses
     104,685       97,288       291,169       275,326  
General and administrative expenses
     22,741       20,617       67,808       57,731  
Termination of profit participation agreement
     —       —       —       6,952  
Depreciation and amortization
     38,817       38,273       115,467       113,427  
Impairment of long-lived assets
     2,316       3,624       8,145       60,390  
(Gain) loss on sale of assets and other
     2,301       942       3,211       (617 )
     
Total cost of operations
     423,545       405,055       1,194,824       1,189,921  
     
Operating income
     52,678       66,444       139,649       99,636  
 
                                
Interest expense (1)
     (27,613 )     (34,968 )     (89,747 )     (111,766 )
Gain on NCM transaction
     —       —       —       210,773  
Gain on Fandango transaction
     —       —       —       9,205  
Distributions from NCM
     3,592       4,392       12,177       5,754  
Loss on early retirement of debt
     —       (3,584 )     (40 )     (11,536 )
Other income
     2,158       4,374       5,031       10,383  
     
Income before income taxes
     30,815       36,658       67,070       212,449  
Income taxes
     10,367       60,054       25,848       69,764  
     
Net income (loss)
   $ 20,448     $ (23,396 )   $ 41,222     $ 142,685  
     
Net Earnings (Loss) Per Share
                                
Basic
   $ 0.19     $ (0.22 )   $ 0.39     $ 1.42  
     
Diluted
   $ 0.19     $ (0.22 )   $ 0.38     $ 1.39  
     
 
                                
Other Financial Data:
                                
Adjusted EBITDA (2)
   $ 102,138     $ 116,000     $ 286,135     $ 293,139  
Adjusted EBITDA margin
     21.4 %     24.6 %     21.4 %     22.7 %
                 
    As of   As of
    September 30,   December 31,
    2008   2007
Balance Sheet Data:
                
Cash and cash equivalents
   $ 371,297     $ 338,043  
Theatre properties and equipment, net
     1,271,368       1,314,066  
Total assets
     3,249,573       3,296,892  
Long-term debt, including current portion
     1,537,565       1,523,745  
Stockholders’ equity
     981,942       1,019,203  

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    Three months ended   Nine months ended
    September 30,   September 30,
    2008   2007   2008   2007
Other Operating Data:
                                
Attendance (patrons):
                                
Domestic
     39,373       42,967       112,233       116,821  
International
     18,425       17,275       48,690       48,289  
     
Worldwide
     57,798       60,242       160,913       165,110  
     
 
                                
Average Ticket Price (in dollars):
                                
Domestic
   $ 5.97     $ 5.79     $ 5.99     $ 5.75  
International
   $ 3.97     $ 3.41     $ 3.96     $ 3.38  
Worldwide
   $ 5.34     $ 5.11     $ 5.38     $ 5.06  
 
                                
Concession Per Patron (in dollars):
                                
Domestic
   $ 2.86     $ 2.75     $ 2.88     $ 2.79  
International
   $ 1.83     $ 1.52     $ 1.77     $ 1.48  
Worldwide
   $ 2.53     $ 2.40     $ 2.55     $ 2.41  
 
                                
Average Screen Count (month end average):
                                
Domestic
     3,688       3,606       3,669       3,563  
International
     1,021       984       1,014       969  
     
Worldwide
     4,709       4,590       4,683       4,532  
     
Segment Information
(unaudited, in thousands)
                                 
    Three months ended   Nine months ended
    September 30,   September 30,
    2008   2007   2008   2007
Revenues
                                
U.S.
   $ 358,935     $ 378,417     $ 1,027,982     $ 1,033,835  
International
     118,448       93,910       309,457       257,961  
Eliminations
     (1,160 )     (828 )     (2,966 )     (2,239 )
     
Total Revenues
   $ 476,223     $ 471,499     $ 1,334,473     $ 1,289,557  
     
Adjusted EBITDA(2)
                                
U.S.
   $ 75,163     $ 94,732     $ 218,854     $ 237,606  
International
     26,975       21,268       67,281       55,533  
     
Total Adjusted EBITDA
   $ 102,138     $ 116,000     $ 286,135     $ 293,139  
     
Capital Expenditures
                                
U.S.
   $ 12,296     $ 28,802     $ 50,681     $ 81,847  
International
     7,123       8,099       20,654       28,202  
     
Total Capital Expenditures
   $ 19,419     $ 36,901     $ 71,335     $ 110,049  
     

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Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                                 
    Three months ended   Nine months ended
    September 30,   September 30,
    2008   2007   2008   2007
Net income (loss)
   $ 20,448     $ (23,396 )   $ 41,222     $ 142,685  
Income taxes
     10,367       60,054       25,848       69,764  
Interest expense (1)
     27,613       34,968       89,747       111,766  
Gain on NCM transaction
     —       —       —       (210,773 )
Gain on Fandango transaction
     —       —       —       (9,205 )
Loss on early retirement of debt
     —       3,584       40       11,536  
Other income
     (2,158 )     (4,374 )     (5,031 )     (10,383 )
Termination of profit participation agreement
     —       —       —       6,952  
Depreciation and amortization
     38,817       38,273       115,467       113,427  
Impairment of long-lived assets
     2,316       3,624       8,145       60,390  
(Gain) loss on sale of assets and other
     2,301       942       3,211       (617 )
Deferred lease expenses (3)
     710       1,295       2,856       4,606  
Amortization of long-term prepaid rents (3)
     463       314       1,292       826  
Share based awards compensation expense (4)
     1,261       716       3,338       2,165  
     
Adjusted EBITDA (2)
   $ 102,138     $ 116,000     $ 286,135     $ 293,139  
     
 
(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 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 (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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