Exhibit 99.1
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.
2
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. |
3
| 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 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
4
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, |
% |
|||||||||||||||||||||||||||||||
| 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 | % | ||||||||||||||||||
5
| 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. |
6