Exhibit 99.1

 

 

CINEMARK HOLDINGS, INC. REPORTS Q2 2013 ADJUSTED EBITDA OF $178.0 MILLION

ON REVENUES OF $725.6 MILLION

 

Plano, TX, August 6, 2013 — Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and six months ended June 30, 2013.

 

Cinemark Holdings, Inc.’s revenues for the three months ended June 30, 2013 increased 11.7% to $725.6 million from $649.6 million for the three months ended June 30, 2012. For the three months ended June 30, 2013, admissions revenues increased 11.1% to $464.5 million and concession revenues increased 13.6% to $228.7 million.  Average ticket price increased 4.1% to $6.33, concession revenues per patron increased 6.5% to $3.12 and attendance increased 6.7% to 73.4 million patrons during the three months ended June 30, 2013.

 

Adjusted EBITDA for the three months ended June 30, 2013 was $178.0 million compared to $157.0 million for the three months ended June 30, 2012. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

 

Net income for the three months ended June 30, 2013 included a loss on early retirement of debt of approximately $72.3 million, before income taxes.  Net income attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2013 was approximately $20.3 million compared to $51.6 million for the three months ended June 30, 2012.  Diluted earnings per share for the three months ended June 30, 2013 was $0.18 compared to $0.45 for the three months ended June 30, 2012.

 

“Although news headlines may lead you to believe that movies are not performing well, the real story is in the numbers this quarter. The diversity and breadth of the second quarter’s film product resulted in an all-time North American industry box office record of over $3 billion dollars, an increase of nearly 8% from the year ago period,” stated Tim Warner, Cinemark’s Chief Executive Officer. “With more than 500 theatres and nearly 5,800 screens, we achieved record worldwide admissions revenues of $464.5 million, an increase of 11.1%, and over-indexed the North American industry by approximately 320 basis points.  The diversity of our global circuit has allowed us to outperform the North American industry in 16 out of the past 17 consecutive quarters on a currency adjusted basis.”

 

Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2013 increased to $1,273.4 million from $1,228.4 million for the six months ended June 30, 2012. During the six months ended June 30, 2013, admissions revenues increased 2.8% to $813.9 million and concession revenues increased 5.2% to $401.1 million.  Average ticket price increased 2.3% to $6.22 and concession revenues per patron increased 4.8% to $3.07 during the six months ended June 30, 2013.

 

Adjusted EBITDA for the six months ended June 30, 2013 was $294.3 million compared to $297.3 million for the six months ended June 30, 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 six months ended June 30, 2013 was $52.9 million compared to $93.7 million for the six months ended June 30, 2012.  Diluted earnings per share for the six months ended June 30, 2013 was $0.46 compared to $0.82 for the six months ended June 30, 2012.  Net income for the six months ended June 30, 2013 included a loss on early retirement of debt of approximately $72.3 million, before income taxes.

 

On June 30, 2013, the Company’s aggregate screen count was 5,794. As of June 30, 2013, the Company had signed commitments to open 21 new theatres and 181 screens by the end of 2013 and open 16 new theatres with 153 screens subsequent to 2013.

 

Conference Call/Webcast — Today at 8:30 AM 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 504 theatres with 5,794 screens in 40 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of June 30, 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.

 

2


 

Cinemark Holdings, Inc.

Financial and Operating Summary

(unaudited, in thousands)

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Statement of income data:

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Admissions

 

$

464,483

 

$

418,073

 

$

813,897

 

$

791,866

 

Concession

 

228,746

 

201,414

 

401,142

 

381,234

 

Other

 

32,393

 

30,119

 

58,356

 

55,324

 

Total revenues

 

725,622

 

649,606

 

1,273,395

 

1,228,424

 

Cost of operations

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

257,435

 

227,301

 

437,427

 

422,716

 

Concession supplies

 

37,021

 

31,787

 

65,021

 

60,238

 

Facility lease expense

 

76,124

 

71,614

 

145,742

 

140,176

 

Other theatre operating expenses

 

143,445

 

131,923

 

270,666

 

256,924

 

General and administrative expenses

 

40,546

 

35,951

 

78,325

 

70,015

 

Depreciation and amortization

 

38,734

 

36,341

 

77,766

 

73,157

 

Impairment of long-lived assets

 

1,101

 

311

 

1,945

 

496

 

(Gain) loss on sale of assets and other

 

(2,801

)

469

 

(3,143

)

1,305

 

Total cost of operations

 

591,605

 

535,697

 

1,073,749

 

1,025,027

 

Operating income

 

134,017

 

113,909

 

199,646

 

203,397

 

Interest expense (1)

 

(34,458

)

(31,375

)

(67,064

)

(63,508

)

Distributions from NCM

 

1,693

 

386

 

7,796

 

8,417

 

Loss on early retirement of debt

 

(72,302

)

—

 

(72,302

)

—

 

Other income

 

609

 

63

 

5,163

 

5,485

 

Income before income taxes

 

29,559

 

82,983

 

73,239

 

153,791

 

Income taxes

 

8,722

 

30,844

 

19,340

 

58,776

 

Net income

 

$

20,837

 

$

52,139

 

$

53,899

 

$

95,015

 

Less: Net income attributable to noncontrolling interests

 

572

 

501

 

1,040

 

1,273

 

Net income attributable to Cinemark Holdings, Inc.

 

$

20,265

 

$

51,638

 

$

52,859

 

$

93,742

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.18

 

$

0.45

 

$

0.46

 

$

0.82

 

Diluted

 

$

0.18

 

$

0.45

 

$

0.46

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

114,387

 

113,737

 

114,210

 

113,568

 

 

 

 

 

 

 

 

 

 

 

Other financial data:

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (2)

 

$

178,024

 

$

156,952

 

$

294,280

 

$

297,280

 

 

(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

 

As of

 

 

 

June 30,

 

December 31,

 

 

 

2013

 

2012

 

Balance sheet data:

 

 

 

 

 

Cash and cash equivalents

 

$

515,474

 

$

742,664

 

Theatre properties and equipment, net

 

$

1,395,911

 

$

1,304,958

 

Total assets

 

$

4,111,617

 

$

3,863,226

 

Long-term debt, including current portion

 

$

1,827,651

 

$

1,764,010

 

Equity

 

$

1,073,740

 

$

1,094,984

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Other operating data:

 

 

 

 

 

 

 

 

 

Attendance (patrons):

 

 

 

 

 

 

 

 

 

Domestic

 

46,889

 

42,013

 

81,557

 

81,843

 

International

 

26,463

 

26,782

 

49,214

 

48,500

 

Worldwide

 

73,352

 

68,795

 

130,771

 

130,343

 

 

 

 

 

 

 

 

 

 

 

Average ticket price (in dollars):

 

 

 

 

 

 

 

 

 

Domestic

 

$

7.16

 

$

6.84

 

$

6.99

 

$

6.77

 

International

 

$

4.85

 

$

4.88

 

$

4.95

 

$

4.91

 

Worldwide

 

$

6.33

 

$

6.08

 

$

6.22

 

$

6.08

 

 

 

 

 

 

 

 

 

 

 

Concession revenues per patron (in dollars):

 

 

 

 

 

 

 

 

 

Domestic

 

$

3.50

 

$

3.38

 

$

3.46

 

$

3.34

 

International

 

$

2.43

 

$

2.23

 

$

2.42

 

$

2.23

 

Worldwide

 

$

3.12

 

$

2.93

 

$

3.07

 

$

2.93

 

 

 

 

 

 

 

 

 

 

 

Average screen count (month end average):

 

 

 

 

 

 

 

 

 

Domestic

 

4,181

 

3,911

 

4,068

 

3,901

 

International

 

1,349

 

1,284

 

1,341

 

1,280

 

Worldwide

 

5,530

 

5,195

 

5,409

 

5,181

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues

 

 

 

 

 

 

 

 

 

U.S.

 

$

517,109

 

$

443,765

 

$

883,472

 

$

854,990

 

International

 

211,879

 

208,372

 

396,072

 

378,247

 

Eliminations

 

(3,366

)

(2,531

)

(6,149

)

(4,813

)

Total revenues

 

$

725,622

 

$

649,606

 

$

1,273,395

 

$

1,228,424

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

U.S.

 

$

128,697

 

$

103,391

 

$

208,775

 

$

207,684

 

International

 

49,327

 

53,561

 

85,505

 

89,596

 

Total Adjusted EBITDA

 

$

178,024

 

$

156,952

 

$

294,280

 

$

297,280

 

Capital expenditures

 

 

 

 

 

 

 

 

 

U.S.

 

$

29,631

 

$

27,109

 

$

35,787

 

$

46,803

 

International

 

23,868

 

19,494

 

54,601

 

46,784

 

Total capital expenditures

 

$

53,499

 

$

46,603

 

$

90,388

 

$

93,587

 

 

4


 

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net income

 

$

20,837

 

$

52,139

 

$

53,899

 

$

95,015

 

Income taxes

 

8,722

 

30,844

 

19,340

 

58,776

 

Interest expense

 

34,458

 

31,375

 

67,064

 

63,508

 

Loss on early retirement of debt

 

72,302

 

―

 

72,302

 

―

 

Other income

 

(609

)

(63

)

(5,163

)

(5,485

)

Depreciation and amortization

 

38,734

 

36,341

 

77,766

 

73,157

 

Impairment of long-lived assets

 

1,101

 

311

 

1,945

 

496

 

(Gain) loss on sale of assets and other

 

(2,801

)

469

 

(3,143

)

1,305

 

Deferred lease expenses - theatres (2)

 

191

 

197

 

59

 

317

 

Deferred lease expenses — DCIP equipment (3)

 

1,022

 

1,010

 

2,044

 

2,013

 

Amortization of long-term prepaid rents (2)

 

729

 

776

 

1,379

 

1,310

 

Share based awards compensation expense (4)

 

3,338

 

3,553

 

6,788

 

6,868

 

Adjusted EBITDA (1)

 

$

178,024

 

$

156,952

 

$

294,280

 

$

297,280

 

 

(1)

Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, 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.

 

5