Exhibit 99.1

 

GRAPHIC

 

CINEMARK HOLDINGS, INC. REPORTS A 14.4% INCREASE IN ADJUSTED EBITDA FOR Q1 2015 TO $147.1 MILLION

 

Plano, TX, May 7, 2015 — 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, 2015.

 

Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2015 increased 7.2% to $645.4 million from $602.3 million for the three months ended March 31, 2014. Admissions revenues increased 5.2% to $400.7 million and concession revenues increased 11.1% to $214.4 million. The average ticket price for the three months ended March 31, 2015 was $6.12, concession revenues per patron increased 4.1% to $3.27 and attendance increased 6.5%.

 

Adjusted EBITDA for the three months ended March 31, 2015 was $147.1 million compared to $128.6 million for the three months ended March 31, 2014. 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, 2015 increased to $42.5 million compared to $35.4 million for the three months ended March 31, 2014. Diluted earnings per share for the three months ended March 31, 2015 was $0.37 compared to $0.31 for the three months ended March 31, 2014.

 

“With our diverse global footprint, Cinemark’s box office results continue to out-perform the North American industry, doing so for 23 out of 25 quarters on a currency adjusted basis,” stated Cinemark’s Chief Executive Officer Tim Warner.  “We also continue to report remarkable statistics for concession per cap, achieving growth for 33 consecutive quarters and setting a new domestic record of $3.85.  Our success continues to be driven by our focus on utilization across our total worldwide platform, including our core circuit and enhanced concepts.”

 

As of March 31, 2015, Cinemark operated 497 theatres with 5,687 screens and had commitments to open eighteen new theatres with 162 screens during the remainder of 2015 and seven additional new theatres with 72 screens subsequent to 2015.

 

Conference Call/Webcast — Today at 8:30AM 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 497 theatres with 5,687 screens in 41 U.S. states, Brazil, Argentina and 11 other Latin American countries as of March 31, 2015. 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 27, 2015 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,

 

 

 

2015

 

2014

 

Statement of income data:

 

 

 

 

 

Revenues

 

 

 

 

 

Admissions

 

$

400,662

 

$

380,914

 

Concession

 

214,427

 

193,023

 

Other

 

30,309

 

28,343

 

Total revenues

 

645,398

 

602,280

 

 

 

 

 

 

 

Cost of operations

 

 

 

 

 

Film rentals and advertising

 

215,659

 

200,657

 

Concession supplies

 

32,503

 

30,053

 

Facility lease expense

 

79,617

 

78,357

 

Other theatre operating expenses

 

144,580

 

140,283

 

General and administrative expenses

 

37,925

 

39,372

 

Depreciation and amortization

 

45,332

 

42,496

 

Impairment of long-lived assets

 

794

 

354

 

(Gain) loss on sale of assets and other

 

(1,450

)

2,853

 

Total cost of operations

 

554,960

 

534,425

 

Operating income

 

90,438

 

67,855

 

Interest expense (1)

 

(28,207

)

(28,480

)

Distributions from NCM

 

8,499

 

9,497

 

Other income (expense)

 

(1,448

)

7,686

 

Income before income taxes

 

69,282

 

56,558

 

Income taxes

 

26,380

 

20,862

 

Net income

 

$

42,902

 

$

35,696

 

Less: Net income attributable to noncontrolling interests

 

381

 

253

 

Net income attributable to Cinemark Holdings, Inc.

 

$

42,521

 

$

35,443

 

 

 

 

 

 

 

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

 

 

 

 

 

Basic

 

$

0.37

 

$

0.31

 

Diluted

 

$

0.37

 

$

0.31

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

115,058

 

114,610

 

Other financial data:

 

 

 

 

 

Adjusted EBITDA (2)

 

$

147,121

 

$

128,555

 

 

(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,

 

 

 

2015

 

2014

 

Balance Sheet Data:

 

 

 

 

 

Cash and cash equivalents

 

$

532,845

 

$

638,869

 

Theatre properties and equipment, net

 

$

1,452,743

 

$

1,450,812

 

Total assets

 

$

4,046,287

 

$

4,151,980

 

Long-term debt, including current portion

 

$

1,821,238

 

$

1,822,997

 

Equity

 

$

1,093,233

 

$

1,123,129

 

 

 

 

Three Months Ended
March 31,

 

 

 

2015

 

2014

 

Other operating data:

 

 

 

 

 

Attendance (patrons):

 

 

 

 

 

Domestic

 

41,436

 

40,600

 

International

 

24,025

 

20,918

 

Worldwide

 

65,461

 

61,518

 

 

 

 

 

 

 

Average ticket price (in dollars):

 

 

 

 

 

Domestic

 

$

7.13

 

$

6.96

 

International

 

$

4.37

 

$

4.70

 

Worldwide

 

$

6.12

 

$

6.19

 

 

 

 

 

 

 

Concession revenues per patron (in dollars):

 

 

 

 

 

Domestic

 

$

3.85

 

$

3.58

 

International

 

$

2.28

 

$

2.27

 

Worldwide

 

$

3.27

 

$

3.14

 

 

 

 

 

 

 

Average screen count (month end average):

 

 

 

 

 

Domestic

 

4,496

 

4,463

 

International

 

1,181

 

1,122

 

Worldwide

 

5,677

 

5,585

 

 

Segment Information

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

2014

 

Revenues

 

 

 

 

 

U.S.

 

$

474,295

 

$

444,920

 

International

 

174,333

 

160,192

 

Eliminations

 

(3,230

)

(2,832

)

Total revenues

 

$

645,398

 

$

602,280

 

Adjusted EBITDA

 

 

 

 

 

U.S.

 

$

107,107

 

$

93,540

 

International

 

40,014

 

35,015

 

Total Adjusted EBITDA

 

$

147,121

 

$

128,555

 

Capital expenditures

 

 

 

 

 

U.S.

 

$

74,267

 

$

30,312

 

International

 

11,480

 

22,494

 

Total capital expenditures

 

$

85,747

 

$

52,806

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

 

 

Three Months Ended
March 31,

 

 

 

2015

 

2014

 

Net income

 

$

42,902

 

$

35,696

 

Income taxes

 

26,380

 

20,862

 

Interest expense

 

28,207

 

28,480

 

Other (income) expense

 

1,448

 

(7,686

)

Depreciation and amortization

 

45,332

 

42,496

 

Impairment of long-lived assets

 

794

 

354

 

(Gain) loss on sale of assets and other

 

(1,450

)

2,853

 

Deferred lease expenses - theatres (2)

 

(468

)

555

 

Deferred lease expenses — DCIP equipment (3)

 

(235

)

1,044

 

Amortization of long-term prepaid rents (2)

 

713

 

378

 

Share based awards compensation expense (4)

 

3,498

 

3,523

 

Adjusted EBITDA (1)

 

$

147,121

 

$

128,555

 

 

(1)             Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, other (income) expense, 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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