Exhibit 99.1

 

 

CINEMARK HOLDINGS, INC. REPORTS A 6.6% INCREASE IN REVENUES

 TO $651.9 MILLION FOR Q4 2013

 

Plano, TX, February 19, 2014 — 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, 2013.

 

Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2013 increased 6.6% to $651.9 million compared to $611.5 million for the three months ended December 31, 2012. For the three months ended December 31, 2013, admissions revenues increased 6.9% and concession revenues increased 6.2%. Average ticket price increased 5.1% and concession revenues per patron increased 4.4% during the three months ended December 31, 2013.

 

Adjusted EBITDA for the three months ended December 31, 2013 was $140.9 million compared to $143.6 million for the three months ended December 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 December 31, 2013 was $15.6 million compared to $27.8 million for the three months ended December 31, 2012. Diluted earnings per share for the three months ended December 31, 2013 was $0.13 compared to $0.24 for the three months ended December 31, 2012. Net income for the three months ended December 31, 2013 included an after-tax loss of approximately $17.9 million on the Company’s sale of its Mexico subsidiaries.

 

“The annual 2013 North American industry had a record-breaking year, achieving nearly $11 billion dollars in admissions revenues, which exceeded 2012’s record box office,” stated Tim Warner, Cinemark’s Chief Executive Officer.  “Our total worldwide revenues for the year grew 8.5% to a record $2.7 billion dollars.   Our operations teams were able to leverage the attendance increase while simultaneously managing costs resulting in an all-time high Adjusted EBITDA of over $625 million dollars.”

 

Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2013 increased 8.5% to $2,682.9 million from $2,473.5 million for the year ended December 31, 2012. For the year ended December 31, 2013, admissions revenues increased 8.0% and concession revenues increased 9.6%, primarily due to a 4.9% increase in attendance, a 3.0% increase in average ticket price and a 4.4% increase in concession revenues per patron.

 

Adjusted EBITDA for the year ended December 31, 2013 increased 6.1% to $625.3 million from $589.2 million for the year ended December 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 year ended December 31, 2013 was $148.5 million compared to $168.9 million for the year ended December 31, 2012. Diluted earnings per share for the year ended December 31, 2013 was $1.28 compared to $1.47 for the year ended December 31, 2012. Net income attributable to Cinemark Holdings, Inc. for the year ended December 31, 2013 included a pre-tax loss on early retirement of debt of approximately $72.3 million.

 

As of December 31, 2013, the Company’s aggregate screen count was 5,563 and the Company had commitments to open 21 new theatres and 178 screens during 2014 and 8 additional new theatres with 85 screens subsequent to 2014.

 



 

Conference Call/Webcast — Today at 4:30 PM 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 482 theatres with 5,563 screens in 40 U.S. states, Brazil, Argentina and 10 other Latin American countries as of December 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.

 

2



 

Cinemark Holdings, Inc.

Financial and Operating Summary

(unaudited, in thousands, except per share amounts)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Statement of Income Data:

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Admissions

 

$

412,617

 

$

386,095

 

$

1,706,145

 

$

1,580,401

 

Concession

 

201,769

 

190,059

 

845,168

 

771,405

 

Other

 

37,547

 

35,380

 

131,581

 

121,725

 

Total revenues

 

651,933

 

611,534

 

2,682,894

 

2,473,531

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

227,292

 

208,389

 

919,511

 

845,107

 

Concession supplies

 

31,723

 

30,309

 

135,715

 

123,471

 

Facility lease expense

 

77,024

 

68,556

 

307,851

 

281,615

 

Other theatre operating expenses

 

146,400

 

133,171

 

575,056

 

528,138

 

General and administrative expenses

 

44,631

 

41,613

 

165,351

 

148,624

 

Depreciation and amortization

 

43,805

 

37,621

 

163,970

 

147,675

 

Impairment of long-lived assets

 

1,718

 

1,559

 

3,794

 

3,031

 

(Gain) loss on sale of assets and other

 

(1,313

)

4,164

 

(3,845

)

12,168

 

Total cost of operations

 

571,280

 

525,382

 

2,267,403

 

2,089,829

 

Operating income

 

80,653

 

86,152

 

415,491

 

383,702

 

Interest expense (1)

 

(28,172

)

(29,296

)

(124,714

)

(123,665

)

Loss on early retirement of debt

 

 

(5,599

)

(72,302

)

(5,599

)

Distributions from NCM

 

7,283

 

7,722

 

20,701

 

20,812

 

Other income

 

6,730

 

6,628

 

24,688

 

21,568

 

Income before income taxes

 

66,494

 

65,607

 

263,864

 

296,818

 

Income taxes

 

50,590

 

37,169

 

113,316

 

125,398

 

Net income

 

$

15,904

 

$

28,438

 

$

150,548

 

$

171,420

 

Less: Net income attributable to noncontrolling interests

 

312

 

616

 

2,078

 

2,471

 

Net income attributable to Cinemark Holdings, Inc.

 

$

15,592

 

$

27,822

 

$

148,470

 

$

168,949

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.13

 

$

0.24

 

$

1.28

 

$

1.47

 

Diluted

 

$

0.13

 

$

0.24

 

$

1.28

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

114,536

 

113,958

 

114,396

 

113,824

 

 

 

 

 

 

 

 

 

 

 

Other Financial Data:

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (2)

 

$

140,870

 

$

143,585

 

$

625,323

 

$

589,235

 

 


(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,

 

 

 

2013

 

2012

 

Balance Sheet Data (unaudited, in thousands):

 

 

 

 

 

Cash and cash equivalents

 

$

599,929

 

$

742,664

 

Theatre properties and equipment, net

 

1,427,190

 

1,304,958

 

Total assets

 

4,144,163

 

3,863,226

 

Long-term debt, including current portion

 

1,832,800

 

1,764,010

 

Equity

 

1,102,417

 

1,094,984

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues

 

 

 

 

 

 

 

 

 

U.S.

 

$

499,776

 

$

435,356

 

$

1,912,674

 

$

1,706,511

 

International

 

155,210

 

178,783

 

783,053

 

777,663

 

Eliminations

 

(3,053

)

(2,605

)

(12,833

)

(10,643

)

Total revenues

 

$

651,933

 

$

611,534

 

$

2,682,894

 

$

2,473,531

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

U.S.

 

$

113,910

 

$

107,638

 

$

455,489

 

$

409,860

 

International

 

26,960

 

35,947

 

169,834

 

179,375

 

Total Adjusted EBITDA

 

$

140,870

 

$

143,585

 

$

625,323

 

$

589,235

 

Capital expenditures

 

 

 

 

 

 

 

 

 

U.S.

 

$

45,955

 

$

33,163

 

$

117,488

 

$

107,323

 

International

 

54,227

 

41,037

 

142,182

 

113,404

 

Total capital expenditures

 

$

100,182

 

$

74,200

 

$

259,670

 

$

220,727

 

 

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,

 

 

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

2013

 

2012

 

Change

 

2013 

 

2012

 

Change

 

2013

 

2012

 

Change

 

Admissions revenues

 

$

323.0

 

$

280.5

 

15.2%

 

$

89.6

 

$

105.6

 

(15.2)%

 

$

412.6

 

$

386.1

 

6.9%

 

Concession revenues

 

$

156.0

 

$

137.5

 

13.5%

 

$

45.8

 

$

52.6

 

(12.9)%

 

$

201.8

 

$

190.1

 

6.2%

 

Other revenues(2)

 

$

17.7

 

$

14.7

 

20.4%

 

$

19.8

 

$

20.6

 

(3.9)%

 

$

37.5

 

$

35.3

 

6.2%

 

Total revenues(2)

 

$

496.7

 

$

432.7

 

14.8%

 

$

155.2

 

$

178.8

 

(13.2)%

 

$

651.9

 

$

611.5

 

6.6%

 

Attendance

 

45.0

 

40.6

 

10.8%

 

19.8

 

23.1

 

(14.3)%

 

64.8

 

63.7

 

1.7%

 

Average ticket price

 

$

7.18

 

$

6.91

 

3.9%

 

$

4.53

 

$

4.57

 

(0.9)%

 

$

6.37

 

$

6.06

 

5.1%

 

Concession revenues per patron

 

$

3.47

 

$

3.39

 

2.4%

 

$

2.31

 

$

2.28

 

1.3%

 

$

3.11

 

$

2.98

 

4.4%

 

Average screen count

 

4,432

 

3,916

 

 

 

1,241

 

1,307

 

 

 

5,673

 

5,223

 

 

 

 

4



 

 

 

U.S. Operating
Segment

 

International
Operating Segment

 

Consolidated

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Film rentals and advertising

 

$

184.7

 

$

156.8

 

$

42.6

 

$

51.6

 

$

227.3

 

$

208.4

 

Concession supplies

 

21.4

 

18.3

 

10.3

 

12.0

 

31.7

 

30.3

 

Salaries and wages

 

52.3

 

44.2

 

18.2

 

18.7

 

70.5

 

62.9

 

Facility lease expense

 

58.3

 

48.0

 

18.8

 

20.5

 

77.1

 

68.5

 

Utilities and other

 

53.6

 

43.9

 

22.3

 

26.4

 

75.9

 

70.3

 

 

 

 

U.S. Operating Segment

 

International
Operating Segment

 

Consolidated

 

 

 

Year Ended

 

Year Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

 

 

%

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

Admissions revenues

 

$

1,231.4

 

$

1,099.6

 

12.0%

 

$

474.7

 

$

480.8

 

(1.3)%

 

$

1,706.1

 

$

1,580.4

 

8.0%

 

Concession revenues

 

$

609.3

 

$

546.2

 

11.6%

 

$

235.9

 

$

225.2

 

4.8%

 

$

845.2

 

$

771.4

 

9.6%

 

Other revenues(2)

 

$

59.1

 

$

50.1

 

18.0%

 

$

72.5

 

$

71.6

 

1.3%

 

$

131.6

 

$

121.7

 

8.1%

 

Total revenues(2)

 

$

1,899.8

 

$

1,695.9

 

12.0%

 

$

783.1

 

$

777.6

 

0.7%

 

$

2,682.9

 

$

2,473.5

 

8.5%

 

Attendance

 

177.2

 

163.6

 

8.3%

 

99.4

 

100.1

 

(0.7)%

 

276.6

 

263.7

 

4.9%

 

Average ticket price

 

$

6.95

 

$

6.72

 

3.4%

 

$

4.78

 

$

4.80

 

(0.4)%

 

$

6.17

 

$

5.99

 

3.0%

 

Concession revenues per patron

 

$

3.44

 

$

3.34

 

3.0%

 

$

2.37

 

$

2.25

 

5.3%

 

$

3.06

 

$

2.93

 

4.4%

 

Average screen count

 

4,233

 

3,909

 

 

 

1,315

 

1,289

 

 

 

5,548

 

5,198

 

 

 

 

 

 

U.S. Operating
Segment

 

International
Operating Segment

 

Consolidated

 

 

 

Year Ended

 

Year Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Film rentals and advertising

 

$

687.3

 

$

610.5

 

$

232.2

 

$

234.6

 

$

919.5

 

$

845.1

 

Concession supplies

 

83.7

 

71.1

 

52.0

 

52.4

 

135.7

 

123.5

 

Salaries and wages

 

192.5

 

174.2

 

76.8

 

73.2

 

269.3

 

247.4

 

Facility lease expense

 

215.5

 

191.1

 

92.4

 

90.5

 

307.9

 

281.6

 

Utilities and other

 

204.5

 

182.9

 

101.2

 

97.8

 

305.7

 

280.7

 

 


(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,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net income

 

$

15,904

 

$

28,438

 

$

150,548

 

$

171,420

 

Income taxes

 

50,590

 

37,169

 

113,316

 

125,398

 

Interest expense

 

28,172

 

29,296

 

124,714

 

123,665

 

Loss on early retirement of debt

 

 

5,599

 

72,302

 

5,599

 

Other income

 

(6,730

)

(6,628

)

(24,688

)

(21,568

)

Depreciation and amortization

 

43,805

 

37,621

 

163,970

 

147,675

 

Impairment of long-lived assets

 

1,718

 

1,559

 

3,794

 

3,031

 

(Gain) loss on sale of assets and other

 

(1,313

)

4,164

 

(3,845

)

12,168

 

Deferred lease expenses — theatres (2)

 

608

 

(243

)

1,564

 

58

 

Deferred lease expenses — DCIP (3)

 

1,055

 

1,020

 

4,137

 

4,046

 

Amortization of long-term prepaid rents (2)

 

521

 

685

 

2,625

 

2,673

 

Share based awards compensation expense (4)

 

6,540

 

4,905

 

16,886

 

15,070

 

Adjusted EBITDA (1)

 

$

140,870

 

$

143,585

 

$

625,323

 

$

589,235

 

 


(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.

 

6