Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS Q2 2012 ADJUSTED EBITDA OF $157.0 MILLION

ON REVENUES OF $649.6 MILLION

Plano, TX, August 6, 2012 – 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, 2012.

Cinemark Holdings, Inc.’s revenues for the three months ended June 30, 2012 were $649.6 million compared to $620.6 million for the three months ended June 30, 2011. For the three months ended June 30, 2012, admissions revenues were $418.1 million and concession revenues were $201.4 million.

Adjusted EBITDA for the three months ended June 30, 2012 was $157.0 million compared to $149.8 million for the three months ended June 30, 2011. 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, 2012 was approximately $51.6 million compared to $40.4 million for the three months ended June 30, 2011. Net income for the three months ended June 30, 2011 included a loss on early retirement of debt of approximately $4.9 million, before income taxes.

Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2012 increased to $1,228.4 million from $1,103.7 million for the six months ended June 30, 2011. During the six months ended June 30, 2012, admissions revenues were $791.9 million and concession revenues were $381.2 million.

Adjusted EBITDA for the six months ended June 30, 2012 was $297.3 million compared to $252.5 million for the six months ended June 30, 2011. 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, 2012 was $93.7 million compared to $65.4 million for the six months ended June 30, 2011. Net income for the six months ended June 30, 2011 included a loss on early retirement of debt of approximately $4.9 million, before income taxes.

On June 30, 2012, the Company’s aggregate screen count was 5,207. As of June 30, 2012, the Company had signed commitments to open 11 new theatres and 91 screens by the end of 2012 and open 16 new theatres with 167 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: available live at investors.cinemark.com 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 461 theatres with 5,207 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of June 30, 2012. For more information go to investors.cinemark.com.

Contacts:

Robert Copple – 972/665-1500 or investors@cinemark.com

Chanda Brashears – 972-665-1671 or cbrashears@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 29, 2012 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 June 30,     Six months ended June 30,  
     2012     2011     2012     2011  

Statement of income data:

        

Revenues

        

Admissions

   $ 418,073      $ 405,917      $ 791,866      $ 717,609   

Concession

     201,414        189,353        381,234        336,034   

Other

     30,119        25,323        55,324        50,086   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     649,606        620,593        1,228,424        1,103,729   

Cost of operations

        

Film rentals and advertising

     227,301        222,620        422,716        387,773   

Concession supplies

     31,787        29,628        60,238        52,910   

Facility lease expense

     71,614        69,367        140,176        135,793   

Other theatre operating expenses

     131,923        123,605        256,924        233,511   

General and administrative expenses

     35,951        31,187        70,015        60,173   

Depreciation and amortization

     36,341        39,897        73,157        79,037   

Impairment of long-lived assets

     311        1,594        496        2,609   

Loss on sale of assets and other

     469        5,694        1,305        6,166   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     535,697        523,592        1,025,027        957,972   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     113,909        97,001        203,397        145,757   

Interest expense (1)

     (31,375     (29,777     (63,508     (59,067

Distributions from NCM

     386        1,559        8,417        11,422   

Loss on early retirement of debt

     —          (4,945     —          (4,945

Other income

     63        443        5,485        5,473   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     82,983        64,281        153,791        98,640   

Income taxes

     30,844        23,272        58,776        32,309   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 52,139      $ 41,009      $ 95,015      $ 66,331   

Less: Net income attributable to noncontrolling interests

     501        598        1,273        957   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 51,638      $ 40,411      $ 93,742      $ 65,374   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.45      $ 0.35      $ 0.82      $ 0.57   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.45      $ 0.35      $ 0.82      $ 0.57   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

     113,737        113,209        113,568        113,080   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other financial data:

        

Adjusted EBITDA (2)

   $ 156,952      $ 149,791      $ 297,280      $ 252,497   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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.

 

     As of      As of  
     June 30,      December 31,  
     2012      2011  

Balance sheet data:

     

Cash and cash equivalents

   $ 524,282       $ 521,408   

Theatre properties and equipment, net

   $ 1,242,695       $ 1,238,850   

Total assets

   $ 3,542,360       $ 3,522,408   

Long-term debt, including current portion

   $ 1,566,396       $ 1,572,221   

Equity

   $ 1,058,136       $ 1,023,639   

 

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     Three months ended
June 30,
     Six months ended
June 30,
 
     2012      2011      2012      2011  

Other operating data:

           

Attendance (patrons):

           

Domestic

     42,013         43,915         81,843         77,304   

International

     26,782         22,245         48,500         42,627   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     68,795         66,160         130,343         119,931   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average ticket price (in dollars):

           

Domestic

   $ 6.84       $ 6.64       $ 6.77       $ 6.53   

International

   $ 4.88       $ 5.16       $ 4.91       $ 4.99   

Worldwide

   $ 6.08       $ 6.14       $ 6.08       $ 5.98   

Concession revenues per patron (in dollars):

           

Domestic

   $ 3.38       $ 3.19       $ 3.34       $ 3.17   

International

   $ 2.23       $ 2.23       $ 2.23       $ 2.14   

Worldwide

   $ 2.93       $ 2.86       $ 2.93       $ 2.80   

Average screen count (month end average):

           

Domestic

     3,911         3,835         3,901         3,829   

International

     1,284         1,132         1,280         1,126   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     5,195         4,967         5,181         4,955   
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Information

(unaudited, in thousands)

 

     Three months ended
June 30,
    Six months ended
June 30,
 
     2012     2011     2012     2011  

Revenues

        

U.S.

   $ 443,765      $ 444,479      $ 854,990      $ 775,345   

International

     208,372        178,720        378,247        333,191   

Eliminations

     (2,531     (2,606     (4,813     (4,807
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 649,606      $ 620,593      $ 1,228,424      $ 1,103,729   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

        

U.S.

   $ 103,391      $ 110,015      $ 207,684      $ 178,806   

International

     53,561        39,776        89,596        73,691   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA

   $ 156,952      $ 149,791      $ 297,280      $ 252,497   
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital expenditures

        

U.S.

   $ 27,109      $ 27,977      $ 46,803      $ 39,445   

International

     19,494        21,556        46,784        45,857   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capital expenditures

   $ 46,603      $ 49,533      $ 93,587      $ 85,302   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended     Six months ended  
   June 30,     June 30,  
     2012     2011     2012     2011  

Net income

   $ 52,139      $ 41,009      $ 95,015      $ 66,331   

Income taxes

     30,844        23,272        58,776        32,309   

Interest expense

     31,375        29,777        63,508        59,067   

Loss on early retirement of debt

     —          4,945        —          4,945   

Other income

     (63     (443     (5,485     (5,473

Depreciation and amortization

     36,341        39,897        73,157        79,037   

Impairment of long-lived assets

     311        1,594        496        2,609   

Loss on sale of assets and other

     469        5,694        1,305        6,166   

Deferred lease expenses—theatres (2)

     197        243        317        539   

Deferred lease expenses – DCIP equipment (3)

     1,010        627        2,013        1,111   

Amortization of long-term prepaid rents (2)

     776        617        1,310        1,284   

Share based awards compensation expense (4)

     3,553        2,559        6,868        4,572   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 156,952      $ 149,791      $ 297,280      $ 252,497   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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, 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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