Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS A 2.1% INCREASE IN REVENUES

TO $535.9 MILLION FOR Q4 2011

Plano, TX, February 22, 2012 – 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, 2011.

Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2011 increased 2.1% to $535.9 million compared to $524.9 million for the three months ended December 31, 2010. For the three months ended December 31, 2011, admissions revenues decreased 1.4% to $336.9 million and concession revenues increased 7.9% to $166.0 million.

Adjusted EBITDA for the three months ended December 31, 2011 was $112.7 million compared to $113.9 million for the three months ended December 31, 2010. 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, 2011 was $18.3 million compared to $38.0 million for the three months ended December 31, 2010. Net income for the three months ended December 31, 2011 included an after-tax noncash loss on marketable securities of $7.9 million, which lowered diluted earnings per share by approximately $0.07. Reported diluted earnings per share for the three months ended December 31, 2011 was $0.16 compared to $0.33 for the three months ended December 31, 2010.

“Cinemark’s increase in attendance this quarter of 2.3% drove an admissions revenue performance that again exceeded the North American industry’s box office results. Our Latin American assets led us with admissions revenue growth of 8.4%,” stated Tim Warner, Cinemark’s Chief Executive Officer. “During Q4, we completed our goal of being 100% digital in all of the Company’s U.S. first-run theatres and we continue to focus on further expanding our international digital footprint.”

Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2011 increased 6.5% to $2,279.6 million from $2,141.1 million for the year ended December 31, 2010. For the year ended December 31, 2011, admissions revenues increased 4.7% to $1,471.6 million and concession revenues increased 8.5% to $696.8 million.

Adjusted EBITDA for the year ended December 31, 2011 increased 6.9% to $519.5 million from $485.9 million for the year ended December 31, 2010. 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, 2011 decreased to $130.6 million from $146.1 million for the year ended December 31, 2010. The full-year net income figure was impacted by the aforementioned $7.9 million after-tax noncash loss on marketable securities and an after-tax loss on early retirement of debt of $3.1 million, which together lowered diluted earnings per share by approximately $0.10. Reported diluted earnings per share for the year ended December 31, 2011 was $1.14 compared to $1.29 for the year ended December 31, 2010.

As of December 31, 2011, the Company’s aggregate screen count was 5,152 and the Company had commitments to open 11 new theatres and 117 screens during 2012 and 11 additional new theatres with 129 screens subsequent to 2012.


Conference Call/Webcast – Today at 8:30 AM ET

Telephone: via 800/374-1346 or 706/679-3149 (for international callers).

Live Webcast/Replay: available live at www.cinemark.com in the Investor Relations section and archived for a limited time immediately following the call.

About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 456 theatres with 5,152 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of December 31, 2011. For more information go to www.cinemark.com.

Contacts:

Robert Copple – 972/665-1500

Robert Rinderman – Jaffoni & Collins – 212/835-8500 or CNK@jcir.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 March 1, 2011 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
December 31,
    Year Ended
December 31,
 
     2011     2010     2011     2010  

Statement of Income Data:

        

Revenues

        

Admissions

   $ 336,930      $ 341,652      $ 1,471,627      $ 1,405,389   

Concession

     165,926        153,862        696,754        642,326   

Other

     33,015        29,395        111,232        93,429   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 535,871      $ 524,909      $ 2,279,613      $ 2,141,144   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of operations

        

Film rentals and advertising

     185,402        186,834        798,606        769,698   

Concession supplies

     27,046        24,019        112,122        97,484   

Facility lease expense

     68,167        64,425        276,278        255,717   

Other theatre operating expenses

     119,874        117,922        486,178        460,716   

General and administrative expenses

     34,796        30,456        127,621        109,045   

Depreciation and amortization

     34,870        39,518        154,449        143,508   

Impairment of long-lived assets

     3,432        6,481        7,033        12,538   

(Gain) loss on sale of assets and other

     817        (12,337     8,792        (431
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     474,404        457,318        1,971,079        1,848,275   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     61,467        67,591        308,534        292,869   

Interest expense (1)

     (31,786     (28,891     (123,102     (112,444

Loss on early retirement of debt

     —          (3     (4,945     (3

Distributions from NCM

     7,631        7,817        24,161        23,358   

Loss on marketable securities—RealD

     (12,610     —          (12,610     —     

Other income

     5,305        3,716        13,594        3,721   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     30,007        50,230        205,632        207,501   

Income taxes

     11,404        11,920        73,050        57,838   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 18,603      $ 38,310      $ 132,582      $ 149,663   

Less: Net income attributable to noncontrolling interests

     340        297        2,025        3,543   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 18,263      $ 38,013      $ 130,557      $ 146,120   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.16      $ 0.33     $ 1.15     $ 1.30   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.16      $ 0.33     $ 1.14     $ 1.29   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

     113,339        112,783        113,224        112,151   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Financial Data:

        

Adjusted EBITDA (2)

   $ 112,703      $ 113,946      $ 519,473      $ 485,920   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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
December 31,
 
     2011      2010  

Balance Sheet Data (unaudited, in thousands):

     

Cash and cash equivalents

   $ 521,408       $ 464,997   

Theatre properties and equipment, net

     1,238,850         1,215,446   

Total assets

     3,507,076         3,421,478   

Long-term debt, including current portion

     1,572,221         1,532,441   

Equity

     1,023,639         1,033,152   

Segment Information

(unaudited, in thousands)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2011     2010     2011     2010  

Revenues

        

U.S.

   $ 376,988      $ 384,425      $ 1,593,667      $ 1,584,281   

International

     161,291        143,836        696,119        564,240   

Eliminations

     (2,408     (3,352     (10,173     (7,377
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 535,871      $ 524,909      $ 2,279,613      $ 2,141,144   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

      

U.S.

   $ 82,121      $ 89,614      $ 371,212      $ 363,345   

International

     30,582        24,332        148,261        122,575   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA

   $ 112,703      $ 113,946      $ 519,473      $ 485,920   
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital Expenditures

      

U.S.

   $ 22,194      $ 22,903      $ 79,510      $ 70,474   

International

     36,442        44,943        105,309        85,628   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capital expenditures

   $ 58,636      $ 67,846      $ 184,819      $ 156,102   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Additional Segment Information (1)

(unaudited)

 

    U.S. Operating Segment     International Operating
Segment
    Consolidated  
    Three Months
Ended
December 31,
    %
Change
    Three Months
Ended
December 31,
    %
Change
    Three Months
Ended
December 31,
   

%
Change

 
    2011     2010       2011     2010       2011     2010    

Admissions revenues

  $ 241.5      $ 253.7        (4.8 )%    $ 95.4      $ 88.0        8.4   $ 336.9      $ 341.7        (1.4 )% 

Concession revenues

  $ 119.7      $ 114.8        4.3   $ 46.3      $ 39.0        18.7   $ 166.0      $ 153.8        7.9

Other revenues(2)

  $ 13.3      $ 12.6        5.6   $ 19.7      $ 16.8        17.3   $ 33.0      $ 29.4        12.2

Total revenues(2)

  $ 374.5      $ 381.1        (1.7 )%    $ 161.4      $ 143.8        12.2   $ 535.9      $ 524.9        2.1

Attendance

    36.8        37.8        (2.6 )%      21.3        19.0        12.1     58.1        56.8        2.3

Average ticket price

  $ 6.57      $ 6.71        (2.1 )%    $ 4.48      $ 4.63        (3.2 )%    $ 5.80      $ 6.02        (3.7 )% 

Concession revenues per patron

  $ 3.26      $ 3.04        7.2   $ 2.17      $ 2.05        5.9   $ 2.86      $ 2.71        5.5

Average screen count

    3,870        3,829          1,251        1,098          5,121        4,927     

Revenues per average screen(2)

  $ 96,803      $ 99,536        (2.7 )%    $ 128,904      $ 130,998        (1.6 )%    $ 104,647      $ 106,548        (1.8 )% 

 

     U.S. Operating Segment      International Operating
Segment
     Consolidated  
     Three Months Ended      Three Months Ended      Three Months Ended  
     December 31,      December 31,      December 31,  
     2011      2010      2011      2010      2011      2010  

Film rentals and advertising

   $ 135.7       $ 140.9       $ 49.7       $ 46.0       $ 185.4       $ 186.9   

Concession supplies

     15.7         14.1         11.3         9.9         27.0         24.0   

Salaries and wages

     41.8         42.6         16.5         13.0         58.3         55.6   

Facility lease expense

     46.8         45.3         21.4         19.1         68.2         64.4   

Utilities and other

     42.0         36.9         19.6         25.4         61.6         62.3   

 

    U.S. Operating Segment     International Operating
Segment
    Consolidated  
    Year Ended           Year Ended           Year Ended        
    December 31,           December 31,           December 31,        
                %                 %                 %  
    2011     2010     Change     2011     2010     Change     2011     2010     Change  

Admissions revenues

  $ 1,033.6      $ 1,044.7        (1.1 )%    $ 438.0      $ 360.7        21.4   $ 1,471.6      $ 1,405.4        4.7

Concession revenues

  $ 503.4      $ 487.9        3.2   $ 193.4      $ 154.4        25.3   $ 696.8      $ 642.3        8.5

Other revenues(2)

  $ 46.5      $ 44.3        5.0   $ 64.7      $ 49.1        31.8   $ 111.2      $ 93.4        19.1

Total revenues(2)

  $ 1,583.5      $ 1,576.9        0.4   $ 696.1      $ 564.2        23.4   $ 2,279.6      $ 2,141.1        6.5

Attendance

    158.5        161.2        (1.7 )%      88.9        80.0        11.1     247.4        241.2        2.6

Average ticket price

  $ 6.52      $ 6.48        0.6   $ 4.93      $ 4.51        9.3   $ 5.95      $ 5.83        2.1

Concession revenues per patron

  $ 3.18      $ 3.03        5.0   $ 2.18      $ 1.93        13.0   $ 2.82      $ 2.66        6.0

Average screen count

    3,847        3,830          1,174        1,079          5,021        4,909     

Revenues per average screen(2)

  $ 411,618      $ 411,708        0.0   $ 593,142      $ 523,078        13.4   $ 454,051      $ 436,181        4.1

 

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     U.S. Operating
Segment
     International
Operating Segment
     Consolidated  
     Year Ended      Year Ended      Year Ended  
     December 31,      December 31,      December 31,  
     2011      2010      2011      2010      2011      2010  

Film rentals and advertising

   $ 574.2       $ 586.6       $ 224.4       $ 183.1       $ 798.6       $ 769.7   

Concession supplies

     64.0         59.1         48.1         38.4         112.1         97.5   

Salaries and wages

     167.5         174.1         59.0         47.1         226.5         221.2   

Facility lease expense

     185.8         181.9         90.5         73.8         276.3         255.7   

Utilities and other

     174.5         161.5         85.2         78.0         259.7         239.5   

 

(1) 

Revenues and attendance are in millions. Average ticket price, concession revenues per patron and revenues per average screen are in dollars. Theatre operating costs are in millions.

(2) 

U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended     Year ended  
     December 31,     December 31,  
     2011     2010     2011     2010  

Net income

   $ 18,603      $ 38,310      $ 132,582      $ 149,663   

Income taxes

     11,404        11,920        73,050        57,838   

Interest expense

     31,786        28,891        123,102        112,444   

Loss on early retirement of debt

     —          3        4,945        3   

Loss on marketable securities—RealD

     12,610        —          12,610        —     

Other income

     (5,305     (3,716     (13,594     (3,721

Depreciation and amortization

     34,870        39,518        154,449        143,508   

Impairment of long-lived assets

     3,432        6,481        7,033        12,538   

(Gain) loss on sale of assets and other

     817        (12,337     8,792        (431

Deferred lease expenses—theatres (2)

     252        823        1,218        3,221   

Deferred lease expenses— DCIP (3)

     993        341        2,937        719   

Amortization of long-term prepaid rents (2)

     681        539        2,657        1,786   

Share based awards compensation expense (4)

     2,560        3,173        9,692        8,352   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 112,703      $ 113,946      $ 519,473      $ 485,920   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

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

 

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