Exhibit 99.1

 

 

CINEMARK HOLDINGS, INC. REPORTS A 14.1% INCREASE IN REVENUES

 TO $611.5 MILLION FOR Q4 2012

 

Plano, TX, February 20, 2013 — 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, 2012.

 

Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2012 increased 14.1% to $611.5 million compared to $535.9 million for the three months ended December 31, 2011. For the three months ended December 31, 2012, admissions revenues increased 14.6% and concession revenues increased 14.5% due to a 9.6% increase in attendance, a 4.5% increase in average ticket price, and a 4.2% increase in concession revenues per patron.

 

Adjusted EBITDA for the three months ended December 31, 2012 increased 27.4% to $143.6 million from $112.7 million for the three months ended December 31, 2011. 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, 2012 was $27.8 million compared to $18.3 million for the three months ended December 31, 2011. Diluted earnings per share for the three months ended December 31, 2012 was $0.24 compared to $0.16 for the three months ended December 31, 2011. Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2012 included a pre-tax loss on early retirement of debt of $5.6 million.

 

“It was an incredible year for the industry, as 2012 set a new record with an estimated $10.8 billion in domestic box office revenues, representing an increase of approximately 6.1% compared to 2011,” stated Tim Warner, Cinemark’s Chief Executive Officer. “Cinemark’s worldwide attendance set a company record of 263.7 million patrons. We also reached a milestone in Latin America, surpassing 100 million patrons. Cinemark continues to be the number one attended worldwide exhibitor.”

 

Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2012 increased 8.5% to $2,473.5 million from $2,279.6 million for the year ended December 31, 2011. For the year ended December 31, 2012, admissions revenues increased 7.4% and concession revenues increased 10.7%, primarily due to a 6.6% increase in attendance and a 3.9% increase in concession revenues per patron.

 

Adjusted EBITDA for the year ended December 31, 2012 increased 13.4% to $589.2 million from $519.5 million for the year ended December 31, 2011. 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, 2012 increased to $168.9 million from $130.6 million for the year ended December 31, 2011. Diluted earnings per share for the year ended December 31, 2012 was $1.47 compared to $1.14 for the year ended December 31, 2011. Net income attributable to Cinemark Holdings, Inc. for the year ended December 31, 2012 included a pre-tax loss on early retirement of debt of $5.6 million.

 

As of December 31, 2012, the Company’s aggregate screen count was 5,240 and the Company had commitments to open 22 new theatres and 199 screens during 2013 and 8 additional new theatres with 88 screens subsequent to 2013.

 



 

Conference Call/Webcast — Today at 4:30 PM ET

 

Telephone: via 800-374-1346 or 706-679-3149 (for international callers).

 

Live Webcast/Replay: Available live at investors.cinemark.com.  A replay will be available following the call and archived for a limited time.

 

About Cinemark Holdings, Inc.

 

Cinemark is a leading domestic and international motion picture exhibitor, operating 465 theatres with 5,240 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of December 31, 2012. For more information go to investors.cinemark.com.

 

Contact:

 

Chanda Brashears — 972-665-1671 or cbrashears@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,” “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 February 28, 2012 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.

 

2



 

Cinemark Holdings, Inc.

Financial and Operating Summary

(unaudited, in thousands, except per share amounts)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Statement of Income Data:

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Admissions

 

$

386,095

 

$

336,930

 

$

1,580,401

 

$

1,471,627

 

Concession

 

190,059

 

165,926

 

771,405

 

696,754

 

Other

 

35,380

 

33,015

 

121,725

 

111,232

 

Total revenues

 

$

611,534

 

$

535,871

 

$

2,473,531

 

$

2,279,613

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

208,389

 

185,402

 

845,107

 

798,606

 

Concession supplies

 

30,309

 

27,046

 

123,471

 

112,122

 

Facility lease expense

 

68,556

 

68,167

 

281,615

 

276,278

 

Other theatre operating expenses

 

133,171

 

119,874

 

528,138

 

486,178

 

General and administrative expenses

 

41,613

 

34,796

 

148,624

 

127,621

 

Depreciation and amortization

 

37,621

 

34,870

 

147,675

 

154,449

 

Impairment of long-lived assets

 

1,559

 

3,432

 

3,031

 

7,033

 

Loss on sale of assets and other

 

4,164

 

817

 

12,168

 

8,792

 

Total cost of operations

 

525,382

 

474,404

 

2,089,829

 

1,971,079

 

Operating income

 

86,152

 

61,467

 

383,702

 

308,534

 

Interest expense (1)

 

(29,296

)

(31,786

)

(123,665

)

(123,102

)

Loss on early retirement of debt

 

(5,599

)

 

(5,599

)

(4,945

)

Distributions from NCM

 

7,722

 

7,631

 

20,812

 

24,161

 

Loss on marketable securities - RealD

 

 

(12,610

)

 

(12,610

)

Other income

 

6,628

 

5,305

 

21,568

 

13,594

 

Income before income taxes

 

65,607

 

30,007

 

296,818

 

205,632

 

Income taxes

 

37,169

 

11,404

 

125,398

 

73,050

 

Net income

 

$

28,438

 

$

18,603

 

$

171,420

 

$

132,582

 

Less: Net income attributable to noncontrolling interests

 

616

 

340

 

2,471

 

2,025

 

Net income attributable to Cinemark Holdings, Inc.

 

$

27,822

 

$

18,263

 

$

168,949

 

$

130,557

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

$

0.16

 

$

1.47

 

$

1.15

 

Diluted

 

$

0.24

 

$

0.16

 

$

1.47

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

113,958

 

113,339

 

113,824

 

113,224

 

 

 

 

 

 

 

 

 

 

 

Other Financial Data:

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (2)

 

$

143,585

 

$

112,703

 

$

589,235

 

$

519,473

 

 


(1)       Includes amortization of debt issue costs.

(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.

 

3



 

 

 

As of

 

 

 

December 31,

 

 

 

2012

 

2011

 

Balance Sheet Data (unaudited, in thousands):

 

 

 

 

 

Cash and cash equivalents

 

$

742,664

 

$

521,408

 

Theatre properties and equipment, net

 

1,304,958

 

1,238,850

 

Total assets

 

3,863,226

 

3,522,408

 

Long-term debt, including current portion

 

1,764,010

 

1,572,221

 

Equity

 

1,094,984

 

1,023,639

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Revenues

 

 

 

 

 

 

 

 

 

U.S.

 

$

435,356

 

$

376,988

 

$

1,706,511

 

$

1,593,667

 

International

 

178,783

 

161,291

 

777,663

 

696,119

 

Eliminations

 

(2,605

)

(2,408

)

(10,643

)

(10,173

)

Total revenues

 

$

611,534

 

$

535,871

 

$

2,473,531

 

$

2,279,613

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

U.S.

 

$

107,638

 

$

82,121

 

$

409,860

 

$

371,212

 

International

 

35,947

 

30,582

 

179,375

 

148,261

 

Total Adjusted EBITDA

 

$

143,585

 

$

112,703

 

$

589,235

 

$

519,473

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

U.S.

 

$

33,163

 

$

22,194

 

$

107,323

 

$

79,510

 

International

 

41,037

 

36,442

 

113,404

 

105,309

 

Total capital expenditures

 

$

74,200

 

$

58,636

 

$

220,727

 

$

184,819

 

 

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,

 

 

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

Admissions revenues

 

$

280.5

 

$

241.5

 

16.1

%

$

105.6

 

$

95.4

 

10.7

%

$

386.1

 

$

336.9

 

14.6

%

Concession revenues

 

$

137.5

 

$

119.7

 

14.9

%

$

52.6

 

$

46.3

 

13.6

%

$

190.1

 

$

166.0

 

14.5

%

Other revenues(2) 

 

$

14.7

 

$

13.3

 

10.5

%

$

20.6

 

$

19.7

 

4.6

%

$

35.3

 

$

33.0

 

7.0

%

Total revenues(2)

 

$

432.7

 

$

374.5

 

15.5

%

$

178.8

 

$

161.4

 

10.8

%

$

611.5

 

$

535.9

 

14.1

%

Attendance

 

40.6

 

36.8

 

10.3

%

23.1

 

21.3

 

8.5

%

63.7

 

58.1

 

9.6

%

Average ticket price

 

$

6.91

 

$

6.57

 

5.2

%

$

4.57

 

$

4.48

 

2.0

%

$

6.06

 

$

5.80

 

4.5

%

Concession revenues per patron

 

$

3.39

 

$

3.26

 

4.0

%

$

2.28

 

$

2.17

 

5.1

%

$

2.98

 

$

2.86

 

4.2

%

Average screen count

 

3,916

 

3,870

 

 

 

1,307

 

1,251

 

 

 

5,223

 

5,121

 

 

 

 

4



 

 

 

U.S. Operating 
Segment

 

International 
Operating Segment

 

Consolidated

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Film rentals and advertising

 

$

156.8

 

$

135.7

 

$

51.6

 

$

49.7

 

$

208.4

 

$

185.4

 

Concession supplies

 

18.3

 

15.7

 

12.0

 

11.3

 

30.3

 

27.0

 

Salaries and wages

 

44.2

 

41.8

 

18.7

 

16.5

 

62.9

 

58.3

 

Facility lease expense

 

48.0

 

46.8

 

20.5

 

21.4

 

68.5

 

68.2

 

Utilities and other

 

43.9

 

42.0

 

26.4

 

19.6

 

70.3

 

61.6

 

 

 

 

U.S. Operating Segment

 

International Operating
Segment

 

Consolidated

 

 

 

Year Ended

 

Year Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

2012

 

2011

 

Change

 

Admissions revenues

 

$

1,099.6

 

$

1,033.6

 

6.4

%

$

480.8

 

$

438.0

 

9.8

%

$

1,580.4

 

$

1,471.6

 

7.4

%

Concession revenues

 

$

546.2

 

$

503.4

 

8.5

%

$

225.2

 

$

193.4

 

16.4

%

$

771.4

 

$

696.8

 

10.7

%

Other revenues(2) 

 

$

50.1

 

$

46.5

 

7.7

%

$

71.6

 

$

64.7

 

10.7

%

$

121.7

 

$

111.2

 

9.4

%

Total revenues(2)

 

$

1,695.9

 

$

1,583.5

 

7.1

%

$

777.6

 

$

696.1

 

11.7

%

$

2,473.5

 

$

2,279.6

 

8.5

%

Attendance

 

163.6

 

158.5

 

3.2

%

100.1

 

88.9

 

12.6

%

263.7

 

247.4

 

6.6

%

Average ticket price

 

$

6.72

 

$

6.52

 

3.1

%

$

4.80

 

$

4.93

 

(2.6

)%

$

5.99

 

$

5.95

 

0.7

%

Concession revenues per patron

 

$

3.34

 

$

3.18

 

5.0

%

$

2.25

 

$

2.18

 

3.2

%

$

2.93

 

$

2.82

 

3.9

%

Average screen count

 

3,909

 

3,847

 

 

 

1,289

 

1,174

 

 

 

5,198

 

5,021

 

 

 

 

 

 

U.S. Operating 
Segment

 

International 
Operating Segment

 

Consolidated

 

 

 

Year Ended

 

Year Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Film rentals and advertising

 

$

610.5

 

$

574.2

 

$

234.6

 

$

224.4

 

$

845.1

 

$

798.6

 

Concession supplies

 

71.1

 

64.0

 

52.4

 

48.1

 

123.5

 

112.1

 

Salaries and wages

 

174.2

 

167.5

 

73.2

 

59.0

 

247.4

 

226.5

 

Facility lease expense

 

191.1

 

185.8

 

90.5

 

90.5

 

281.6

 

276.3

 

Utilities and other

 

182.9

 

174.5

 

97.8

 

85.2

 

280.7

 

259.7

 

 


(1)       Revenues, attendance and theatre operating costs are in millions. Average ticket price and concession revenues per patron are in dollars.

(2)       U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.

 

5



 

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Net income

 

$

28,438

 

$

18,603

 

$

171,420

 

$

132,582

 

Income taxes

 

37,169

 

11,404

 

125,398

 

73,050

 

Interest expense

 

29,296

 

31,786

 

123,665

 

123,102

 

Loss on early retirement of debt

 

5,599

 

 

5,599

 

4,945

 

Loss on marketable securities - RealD

 

 

12,610

 

 

12,610

 

Other income

 

(6,628

)

(5,305

)

(21,568

)

(13,594

)

Depreciation and amortization

 

37,621

 

34,870

 

147,675

 

154,449

 

Impairment of long-lived assets

 

1,559

 

3,432

 

3,031

 

7,033

 

Loss on sale of assets and other

 

4,164

 

817

 

12,168

 

8,792

 

Deferred lease expenses — theatres (2)

 

(243

)

252

 

58

 

1,218

 

Deferred lease expenses — DCIP (3)

 

1,020

 

993

 

4,046

 

2,937

 

Amortization of long-term prepaid rents (2)

 

685

 

681

 

2,673

 

2,657

 

Share based awards compensation expense (4)

 

4,905

 

2,560

 

15,070

 

9,692

 

Adjusted EBITDA (1)

 

$

143,585

 

$

112,703

 

$

589,235

 

$

519,473

 

 


(1)             Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, loss on marketable securities — RealD, 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.

 

6