Exhibit 99.1

 

 

CINEMARK HOLDINGS, INC. REPORTS Q3 2014 ADJUSTED EBITDA OF $141.7 MILLION

ON REVENUES OF $646.9 MILLION

 

Plano, TX, November 6, 2014 — Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and nine months ended September 30, 2014.

 

Cinemark Holdings, Inc.’s revenues for the three months ended September 30, 2014 were $646.9 million compared to $757.6 million for the three months ended September 30, 2013. For the three months ended September 30, 2014, admissions revenues were $402.9 million and concession revenues were $211.1 million. Attendance decreased to 66.2 million patrons, average ticket price increased 2.9% to $6.09 and concession revenues per patron increased 6.7% to $3.19 during the three months ended September 30, 2014.

 

Adjusted EBITDA for the three months ended September 30, 2014 was $141.7 million compared to $190.2 million for the three months ended September 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 September 30, 2014 was approximately $38.1 million compared to $80.0 million for the three months ended September 30, 2013.  Diluted earnings per share for the three months ended September 30, 2014 was $0.33 compared to $0.69 for the three months ended September 30, 2013.

 

“We are pleased with our results considering we faced a much higher hurdle than our peers with a 650 basis point domestic industry outperformance in Q3 of 2013 and the headwinds of the World Cup in Brazil,” stated Tim Warner, Cinemark’s Chief Executive Officer. “We continue to benefit from our strategic, diverse global platform and attribute our strong performance to our sustained emphasis on attendance growth.”

 

Cinemark Holdings, Inc.’s revenues for the nine months ended September 30, 2014 were $1,967.1 million compared to $2,031.0 million for the nine months ended September 30, 2013. During the nine months ended September 30, 2014, admissions revenues were $1,239.5 million and concession revenues were $630.6 million.  Average ticket price increased 2.3% to $6.25 and concession revenues per patron increased 4.6% to $3.18 during the nine months ended September 30, 2014, while attendance declined approximately 6.4% to 198.2 million patrons.

 

Adjusted EBITDA for the nine months ended September 30, 2014 was $439.6 million compared to $484.5 million for the nine months ended September 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 nine months ended September 30, 2014 was $145.3 million compared to $132.9 million for the nine months ended September 30, 2013.  Diluted earnings per share for the nine months ended September 30, 2014 was $1.25 compared to $1.15 for the nine months ended September 30, 2013.  Net income for the nine months ended September 30, 2013 included a loss on early retirement of debt of approximately $72.3 million, before income taxes.

 

On September 30, 2014, the Company’s aggregate screen count was 5,629. As of September 30, 2014, the Company had signed commitments to open five new theatres and 51 screens during the remainder of 2014 and 22 new theatres with 187 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 490 theatres with 5,629 screens in 40 U.S. states, Brazil, Argentina and 11 other Latin American countries as of September 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
September 30,

 

Nine months ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Statement of income data:

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Admissions

 

$

402,832

 

$

479,631

 

$

1,239,472

 

$

1,293,528

 

Concession

 

211,131

 

242,257

 

630,571

 

643,399

 

Other

 

32,940

 

35,678

 

97,003

 

94,034

 

Total revenues

 

646,903

 

757,566

 

1,967,046

 

2,030,961

 

Cost of operations

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

215,565

 

254,792

 

665,420

 

692,219

 

Concession supplies

 

33,473

 

38,971

 

98,862

 

103,992

 

Facility lease expense

 

80,567

 

85,085

 

239,571

 

230,827

 

Other theatre operating expenses

 

147,380

 

157,990

 

436,175

 

428,656

 

General and administrative expenses

 

35,803

 

42,395

 

114,892

 

120,720

 

Depreciation and amortization

 

44,731

 

42,399

 

131,108

 

120,165

 

Impairment of long-lived assets

 

4,510

 

131

 

5,294

 

2,076

 

(Gain) loss on sale of assets and other

 

2,590

 

611

 

8,719

 

(2,532

)

Total cost of operations

 

564,619

 

622,374

 

1,700,041

 

1,696,123

 

Operating income

 

82,284

 

135,192

 

267,005

 

334,838

 

Interest expense (1)

 

(28,335

)

(29,478

)

(85,101

)

(96,542

)

Distributions from NCM

 

3,481

 

5,622

 

14,158

 

13,418

 

Loss on early retirement of debt

 

—

 

—

 

—

 

(72,302

)

Other income

 

6,636

 

12,795

 

20,777

 

17,958

 

Income before income taxes

 

64,066

 

124,131

 

216,839

 

197,370

 

Less: Income taxes

 

25,534

 

43,386

 

70,477

 

62,726

 

Net income

 

$

38,532

 

$

80,745

 

$

146,362

 

$

134,644

 

Less: Net income attributable to noncontrolling interests

 

403

 

726

 

1,059

 

1,766

 

Net income attributable to Cinemark Holdings, Inc.

 

$

38,129

 

$

80,019

 

$

145,303

 

$

132,878

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

$

0.69

 

$

1.25

 

$

1.15

 

Diluted

 

$

0.33

 

$

0.69

 

$

1.25

 

$

1.15

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

115,021

 

114,449

 

114,901

 

114,291

 

 

 

 

 

 

 

 

 

 

 

Other financial data:

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (2)

 

$

141,739

 

$

190,173

 

$

439,649

 

$

484,453

 

 

(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

 

 

 

September 30,

 

December 31,

 

 

 

2014

 

2013

 

Balance sheet data:

 

 

 

 

 

Cash and cash equivalents

 

$

546,665

 

$

599,929

 

Theatre properties and equipment, net

 

$

1,427,787

 

$

1,427,190

 

Total assets

 

$

4,060,429

 

$

4,144,163

 

Long-term debt, including current portion

 

$

1,826,083

 

$

1,832,800

 

Equity

 

$

1,129,382

 

$

1,102,417

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Other operating data:

 

 

 

 

 

 

 

 

 

Attendance (patrons, in thousands):

 

 

 

 

 

 

 

 

 

Domestic

 

42,886

 

50,604

 

129,938

 

132,161

 

International

 

23,290

 

30,433

 

68,244

 

79,647

 

Worldwide

 

66,176

 

81,037

 

198,182

 

211,808

 

 

 

 

 

 

 

 

 

 

 

Average ticket price (in dollars):

 

 

 

 

 

 

 

 

 

Domestic

 

$

6.79

 

$

6.68

 

$

6.99

 

$

6.87

 

International

 

$

4.80

 

$

4.66

 

$

4.86

 

$

4.84

 

Worldwide

 

$

6.09

 

$

5.92

 

$

6.25

 

$

6.11

 

 

 

 

 

 

 

 

 

 

 

Concession revenues per patron (in dollars):

 

 

 

 

 

 

 

 

 

Domestic

 

$

3.63

 

$

3.38

 

$

3.63

 

$

3.43

 

International

 

$

2.38

 

$

2.34

 

$

2.33

 

$

2.39

 

Worldwide

 

$

3.19

 

$

2.99

 

$

3.18

 

$

3.04

 

 

 

 

 

 

 

 

 

 

 

Average screen count (month end average):

 

 

 

 

 

 

 

 

 

Domestic

 

4,468

 

4,420

 

4,462

 

4,172

 

International

 

1,154

 

1,373

 

1,140

 

1,352

 

Worldwide

 

5,622

 

5,793

 

5,602

 

5,524

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenues

 

 

 

 

 

 

 

 

 

U.S.

 

$

463,854

 

$

529,426

 

$

1,433,259

 

$

1,412,898

 

International

 

186,428

 

231,771

 

543,501

 

627,843

 

Eliminations

 

(3,379

)

(3,631

)

(9,714

)

(9,780

)

Total revenues

 

$

646,903

 

$

757,566

 

$

1,967,046

 

$

2,030,961

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

U.S.

 

$

99,519

 

$

132,803

 

$

313,930

 

$

341,579

 

International

 

42,220

 

57,370

 

125,719

 

142,874

 

Total Adjusted EBITDA

 

$

141,739

 

$

190,173

 

$

439,649

 

$

484,453

 

Capital expenditures

 

 

 

 

 

 

 

 

 

U.S.

 

$

36,325

 

$

35,746

 

$

97,120

 

$

71,533

 

International

 

17,280

 

33,354

 

59,048

 

87,955

 

Total capital expenditures

 

$

53,605

 

$

69,100

 

$

156,168

 

$

159,488

 

 

4


 

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2013

 

2043

 

2013

 

Net income

 

$

38,532

 

$

80,745

 

$

146,362

 

$

134,644

 

Income taxes

 

25,534

 

43,386

 

70,477

 

62,726

 

Interest expense

 

28,335

 

29,478

 

85,101

 

96,542

 

Loss on early retirement of debt

 

—

 

—

 

—

 

72,302

 

Other income

 

(6,636

)

(12,795

)

(20,777

)

(17,958

)

Depreciation and amortization

 

44,731

 

42,399

 

131,108

 

120,165

 

Impairment of long-lived assets

 

4,510

 

131

 

5,294

 

2,076

 

(Gain) loss on sale of assets and other

 

2,590

 

611

 

8,719

 

(2,532

)

Deferred lease expenses - theatres (2)

 

403

 

897

 

1,443

 

956

 

Deferred lease expenses — DCIP equipment (3)

 

(235

)

1,038

 

573

 

3,082

 

Amortization of long-term prepaid rents (2)

 

1,000

 

725

 

1,785

 

2,104

 

Share based awards compensation expense (4)

 

2,975

 

3,558

 

9,564

 

10,346

 

Adjusted EBITDA (1)

 

$

141,739

 

$

190,173

 

$

439,649

 

$

484,453

 

 

(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