Exhibit 99.1

 

 

CINEMARK HOLDINGS, INC. REPORTS Q1 2013 ADJUSTED EBITDA OF $116.3 MILLION ON REVENUES OF $547.8 MILLION

 

Plano, TX, May 7, 2013 — 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, 2013.

 

Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2013 were $547.8 million compared to $578.8 million for the three months ended March 31, 2012. For the three months ended March 31, 2013, admissions revenues were $349.4 million and concession revenues were $172.4 million. The average ticket price for the three months ended March 31, 2013 increased to $6.09 and concession revenues per patron increased to $3.00.

 

Adjusted EBITDA for the three months ended March 31, 2013 was $116.3 million compared to $140.3 million for the three months ended March 31, 2012. 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, 2013 was $32.6 million compared to $42.1 million for the three months ended March 31, 2012. Diluted earnings per share for the three months ended March 31, 2013 was $0.28 compared to $0.37 for the three months ended March 31, 2012.

 

“Cinemark’s worldwide box office results outperformed the North American industry box office for Q1 2013 by approximately 600 basis points, and has now outperformed the industry for 15 out of the past 16 consecutive quarters on a currency adjusted basis.” stated Tim Warner, Cinemark’s Chief Executive Officer.  “Our international segment reported admissions revenue growth of 7.1% this quarter, reiterating the long term growth opportunity provided by this segment.”

 

As of March 31, 2013, Cinemark operated 467 theatres with 5,259 screens and had commitments to open 22 new theatres with 195 screens during the remainder of 2013 and 9 additional new theatres with 97 screens subsequent to 2013.

 

Conference Call/Webcast — Today at 8:00AM ET

 

Telephone: via 888-755-8910 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 467 theatres with 5,259 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of March 31, 2013. For more information go to investors.cinemark.com.

 

Financial Contact:

 

Chanda Brashears — 972-665-1671 or cbrashears@cinemark.com

 

Media Contact:

 

James Meredith 972-665-1060 or jmeredith@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, 2013 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,

 

 

 

2013

 

2012

 

Statement of income data:

 

 

 

 

 

Revenues

 

 

 

 

 

Admissions

 

$

349,414

 

$

373,793

 

Concession

 

172,396

 

179,820

 

Other

 

25,963

 

25,205

 

Total revenues

 

547,773

 

578,818

 

 

 

 

 

 

 

Cost of operations

 

 

 

 

 

Film rentals and advertising

 

179,992

 

195,415

 

Concession supplies

 

28,000

 

28,451

 

Facility lease expense

 

69,618

 

68,562

 

Other theatre operating expenses

 

127,221

 

125,001

 

General and administrative expenses

 

37,779

 

34,064

 

Depreciation and amortization

 

39,032

 

36,816

 

Impairment of long-lived assets

 

844

 

185

 

(Gain) loss on sale of assets and other

 

(342

)

836

 

Total cost of operations

 

482,144

 

489,330

 

Operating income

 

65,629

 

89,488

 

Interest expense (1)

 

(32,606

)

(32,133

)

Distributions from NCM

 

6,103

 

8,031

 

Other income

 

4,554

 

5,422

 

Income before income taxes

 

43,680

 

70,808

 

Income taxes

 

10,618

 

27,932

 

Net income

 

$

33,062

 

$

42,876

 

Less: Net income attributable to noncontrolling interests

 

468

 

772

 

Net income attributable to Cinemark Holdings, Inc.

 

$

32,594

 

$

42,104

 

 

 

 

 

 

 

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

 

 

 

 

 

Basic

 

$

0.28

 

$

0.37

 

Diluted

 

$

0.28

 

$

0.37

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

113,979

 

113,368

 

Other financial data:

 

 

 

 

 

Adjusted EBITDA (2)

 

$

116,256

 

$

140,328

 

 


(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
March 31,

 

As of
December 31,

 

 

 

2013

 

2012

 

Balance Sheet Data:

 

 

 

 

 

Cash and cash equivalents

 

$

724,303

 

$

742,664

 

Theatre properties and equipment, net

 

$

1,304,639

 

$

1,304,958

 

Total assets

 

$

3,857,199

 

$

3,863,226

 

Long-term debt, including current portion

 

$

1,761,784

 

$

1,764,010

 

Equity

 

$

1,110,983

 

$

1,094,984

 

 

 

 

Three Months Ended
March 31,

 

 

 

2012

 

2012

 

Other operating data:

 

 

 

 

 

Attendance (patrons):

 

 

 

 

 

Domestic

 

34,668

 

39,830

 

International

 

22,751

 

21,718

 

Worldwide

 

57,419

 

61,548

 

 

 

 

 

 

 

Average ticket price (in dollars):

 

 

 

 

 

Domestic

 

$

6.76

 

$

6.70

 

International

 

$

5.06

 

$

4.94

 

Worldwide

 

$

6.09

 

$

6.08

 

 

 

 

 

 

 

Concession revenues per patron (in dollars):

 

 

 

 

 

Domestic

 

$

3.40

 

$

3.30

 

International

 

$

2.40

 

$

2.24

 

Worldwide

 

$

3.00

 

$

2.92

 

 

 

 

 

 

 

Average screen count (month end average):

 

 

 

 

 

Domestic

 

3,916

 

3,891

 

International

 

1,333

 

1,278

 

Worldwide

 

5,249

 

5,169

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2013

 

2012

 

Revenues

 

 

 

 

 

U.S.

 

$

366,363

 

$

411,225

 

International

 

184,193

 

169,875

 

Eliminations

 

(2,783

)

(2,282

)

Total revenues

 

$

547,773

 

$

578,818

 

Adjusted EBITDA

 

 

 

 

 

U.S.

 

$

80,078

 

$

104,293

 

International

 

36,178

 

36,035

 

Total Adjusted EBITDA

 

$

116,256

 

$

140,328

 

Capital expenditures

 

 

 

 

 

U.S.

 

$

6,156

 

$

19,694

 

International

 

30,733

 

27,290

 

Total capital expenditures

 

$

36,889

 

$

46,984

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended
March 31,

 

 

 

2013

 

2012

 

Net income

 

$

33,062

 

$

42,876

 

Income taxes

 

10,618

 

27,932

 

Interest expense

 

32,606

 

32,133

 

Other income

 

(4,554

)

(5,422

)

Depreciation and amortization

 

39,032

 

36,816

 

Impairment of long-lived assets

 

844

 

185

 

(Gain) loss on sale of assets and other

 

(342

)

836

 

Deferred lease expenses - theatres(2)

 

(131

)

120

 

Deferred lease expenses — DCIP equipment (3)

 

1,021

 

1,003

 

Amortization of long-term prepaid rents (2)

 

650

 

534

 

Share based awards compensation expense (4)

 

3,450

 

3,315

 

Adjusted EBITDA (1)

 

$

116,256

 

$

140,328

 

 


(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, (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 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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