Exhibit 99.1

 

 

CINEMARK HOLDINGS, INC. REPORTS  RESULTS FOR Q2 2014

 

Plano, TX, August 5, 2014 — 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, 2014.

 

Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2014 were $717.9 million. For the three months ended June 30, 2014, admissions revenues were $455.7 million and concession revenues were $226.5 million.  Average ticket price increased 2.1% to $6.46 and concession revenues per patron increased 2.9% to $3.21 during the three months ended June 30, 2014.

 

Adjusted EBITDA for the three months ended June 30, 2014 was $169.4 million compared to $178.0 million for the three months ended June 30, 2013. 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 June 30, 2014 was approximately $71.7 million compared to $20.3 million for the three months ended June 30, 2013.  Diluted earnings per share for the three months ended June 30, 2014 was $0.62 compared to $0.18 for the three months ended June 30, 2013. 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.

 

“The second quarter of 2014 was up against a record-breaking 2013,” stated Tim Warner, Cinemark’s Chief Executive Officer.  “Regardless of the difficult comparisons of prior year, Cinemark’s second quarter worldwide admissions revenues outperformed the North American industry by approximately 460 basis points, marking 21 out of 22 consecutive quarters of outperformance on a currency adjusted basis.”

 

Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2014 increased 3.7% to $1,320.2 million from $1,273.4 million for the six months ended June 30, 2013. During the six months ended June 30, 2014, admissions revenues increased 2.8% to $836.6 million and concession revenues increased 4.6% to $419.5 million. Average ticket price increased 1.9% to $6.34 and concession revenues per patron increased 3.6% to $3.18 during the six months ended June 30, 2014.

 

Adjusted EBITDA for the six months ended June 30, 2014 was $297.9 million compared to $294.3 million for the six months ended June 30, 2013. 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, 2014 was $107.2 million compared to $52.9 million for the six months ended June 30, 2013.  Diluted earnings per share for the six months ended June 30, 2014 was $0.93 compared to $0.46 for the six months ended June 30, 2013.  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, 2014, the Company’s aggregate screen count was 5,609. As of June 30, 2014, the Company had signed commitments to open nine new theatres and 96 screens by the end of 2014 and open 14 new theatres with 134 screens subsequent to 2014.

 

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 488 theatres with 5,609 screens in 40 U.S. states, Brazil, Argentina and 11 other Latin American countries as of June 30, 2014. 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, 2014 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,

 

 

 

2014

 

2013

 

2014

 

2013

 

Statement of income data:

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Admissions

 

$

455,726

 

$

464,483

 

$

836,640

 

$

813,897

 

Concession

 

226,417

 

228,746

 

419,440

 

401,142

 

Other

 

35,720

 

32,393

 

64,063

 

58,356

 

Total revenues

 

717,863

 

725,622

 

1,320,143

 

1,273,395

 

Cost of operations

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

249,198

 

257,435

 

449,855

 

437,427

 

Concession supplies

 

35,336

 

37,021

 

65,389

 

65,021

 

Facility lease expense

 

80,647

 

76,124

 

159,004

 

145,742

 

Other theatre operating expenses

 

148,512

 

143,445

 

288,795

 

270,666

 

General and administrative expenses

 

39,717

 

40,546

 

79,089

 

78,325

 

Depreciation and amortization

 

43,881

 

38,734

 

86,377

 

77,766

 

Impairment of long-lived assets

 

430

 

1,101

 

784

 

1,945

 

(Gain) loss on sale of assets and other

 

3,276

 

(2,801

)

6,129

 

(3,143

)

Total cost of operations

 

600,997

 

591,605

 

1,135,422

 

1,073,749

 

Operating income

 

116,866

 

134,017

 

184,721

 

199,646

 

Interest expense (1)

 

(28,286

)

(34,458

)

(56,766

)

(67,064

)

Distributions from NCM

 

1,180

 

1,693

 

10,677

 

7,796

 

Loss on early retirement of debt

 

—

 

(72,302

)

—

 

(72,302

)

Other income

 

6,455

 

609

 

14,141

 

5,163

 

Income before income taxes

 

96,215

 

29,559

 

152,773

 

73,239

 

Income taxes

 

24,081

 

8,722

 

44,943

 

19,340

 

Net income

 

$

72,134

 

$

20,837

 

$

107,830

 

$

53,899

 

Less: Net income attributable to noncontrolling interests

 

403

 

572

 

656

 

1,040

 

Net income attributable to Cinemark Holdings, Inc.

 

$

71,731

 

$

20,265

 

$

107,174

 

$

52,859

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.62

 

$

0.18

 

$

0.93

 

$

0.46

 

Diluted

 

$

0.62

 

$

0.18

 

$

0.93

 

$

0.46

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

114,961

 

114,387

 

114,814

 

114,210

 

 

 

 

 

 

 

 

 

 

 

Other financial data:

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (2)

 

$

169,355

 

$

178,024

 

$

297,910

 

$

294,280

 

 

(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,

 

 

 

2014

 

2013

 

Balance sheet data:

 

 

 

 

 

Cash and cash equivalents

 

$

578,141

 

$

599,929

 

Theatre properties and equipment, net

 

$

1,445,626

 

$

1,427,190

 

Total assets

 

$

4,116,472

 

$

4,144,163

 

Long-term debt, including current portion

 

$

1,827,833

 

$

1,832,800

 

Equity

 

$

1,156,421

 

$

1,102,417

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Other operating data:

 

 

 

 

 

 

 

 

 

Attendance (patrons):

 

 

 

 

 

 

 

 

 

Domestic

 

46,452

 

46,889

 

87,052

 

81,557

 

International

 

24,036

 

26,463

 

44,954

 

49,214

 

Worldwide

 

70,488

 

73,352

 

132,006

 

130,771

 

 

 

 

 

 

 

 

 

 

 

Average ticket price (in dollars):

 

 

 

 

 

 

 

 

 

Domestic

 

$

7.20

 

$

7.16

 

$

7.09

 

$

6.99

 

International

 

$

5.04

 

$

4.85

 

$

4.88

 

$

4.95

 

Worldwide

 

$

6.46

 

$

6.33

 

$

6.34

 

$

6.22

 

 

 

 

 

 

 

 

 

 

 

Concession revenues per patron (in dollars):

 

 

 

 

 

 

 

 

 

Domestic

 

$

3.67

 

$

3.50

 

$

3.63

 

$

3.46

 

International

 

$

2.33

 

$

2.43

 

$

2.30

 

$

2.42

 

Worldwide

 

$

3.21

 

$

3.12

 

$

3.18

 

$

3.07

 

 

 

 

 

 

 

 

 

 

 

Average screen count (month end average):

 

 

 

 

 

 

 

 

 

Domestic

 

4,452

 

4,181

 

4,457

 

4,068

 

International

 

1,145

 

1,349

 

1,133

 

1,341

 

Worldwide

 

5,597

 

5,530

 

5,590

 

5,409

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenues

 

 

 

 

 

 

 

 

 

U.S.

 

$

524,485

 

$

517,109

 

$

969,405

 

$

883,472

 

International

 

196,881

 

211,879

 

357,073

 

396,072

 

Eliminations

 

(3,503

)

(3,366

)

(6,335

)

(6,149

)

Total revenues

 

$

717,863

 

$

725,622

 

$

1,320,143

 

$

1,273,395

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

U.S.

 

$

120,871

 

$

128,697

 

$

214,411

 

$

208,775

 

International

 

48,484

 

49,327

 

83,499

 

85,505

 

Total Adjusted EBITDA

 

$

169,355

 

$

178,024

 

$

297,910

 

$

294,280

 

Capital expenditures

 

 

 

 

 

 

 

 

 

U.S.

 

$

30,483

 

$

29,631

 

$

60,795

 

$

35,787

 

International

 

19,274

 

23,868

 

41,768

 

54,601

 

Total capital expenditures

 

$

49,757

 

$

53,499

 

$

102,563

 

$

90,388

 

 

4


 

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net income

 

$

72,134

 

$

20,837

 

$

107,830

 

$

53,899

 

Income taxes

 

24,081

 

8,722

 

44,943

 

19,340

 

Interest expense

 

28,286

 

34,458

 

56,766

 

67,064

 

Loss on early retirement of debt

 

—

 

72,302

 

—

 

72,302

 

Other income

 

(6,455

)

(609

)

(14,141

)

(5,163

)

Depreciation and amortization

 

43,881

 

38,734

 

86,377

 

77,766

 

Impairment of long-lived assets

 

430

 

1,101

 

784

 

1,945

 

(Gain) loss on sale of assets and other

 

3,276

 

(2,801

)

6,129

 

(3,143

)

Deferred lease expenses - theatres (2)

 

485

 

191

 

1,040

 

59

 

Deferred lease expenses — DCIP equipment (3)

 

(236

)

1,022

 

808

 

2,044

 

Amortization of long-term prepaid rents (2)

 

407

 

729

 

785

 

1,379

 

Share based awards compensation expense (4)

 

3,066

 

3,338

 

6,589

 

6,788

 

Adjusted EBITDA (1)

 

$

169,355

 

$

178,024

 

$

297,910

 

$

294,280

 

 

(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