Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS ADJUSTED EBITDA OF $148.4 MILLION

ON REVENUES OF $633.6 MILLION

Plano, TX, November 6, 2012 – 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, 2012. Cinemark Holdings, Inc.’s revenues for the three months ended September 30, 2012 were $633.6 million compared to $640.0 million for the three months ended September 30, 2011. For the three months ended September 30, 2012, admissions revenues were $402.4 million and concession revenues were $200.1 million. Attendance was 69.7 million patrons for the three months ended September 30, 2012, a slight increase over the three months ended September 30, 2011.

Adjusted EBITDA for the three months ended September 30, 2012 was $148.4 million compared to $154.3 million for the three months ended September 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 September 30, 2012 was $47.4 million compared to $46.9 million for the three months ended September 30, 2011.

“The geographic diversity of our U.S. and Latin American footprint with 5,207 screens in 39 U.S. states and 13 Latin American countries led to an all-time Cinemark record for worldwide attendance, entertaining 69.7 million patrons during the quarter,” stated Tim Warner, Cinemark’s Chief Executive Officer. “As our results consistently demonstrate, Cinemark has designed a company with a strong and stable domestic base, which supports our substantial quarterly dividend, accompanied by our international circuit, which represents a long-running growth engine and differentiates us from all of our industry peers worldwide.”

Cinemark Holdings, Inc.’s revenues for the nine months ended September 30, 2012 increased 6.8% to $1,862.0 million from $1,743.7 million for the nine months ended September 30, 2011. During the nine months ended September 30, 2012, admissions revenues increased 5.3% to $1,194.3 million and concession revenues increased 9.5% to $581.3 million. The increases were primarily related to a 5.7% increase in attendance and a 3.9% increase in concession revenues per patron.

Adjusted EBITDA for the nine months ended September 30, 2012 increased 9.6% to $445.7 million from $406.8 million for the nine months ended September 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 nine months ended September 30, 2012 was $141.1 million compared to $112.3 million for the nine months ended September 30, 2011. Net income for the nine months ended September 30, 2011 included a loss on early retirement of debt of approximately $4.9 million, before income taxes.

On September 30, 2012, the Company’s aggregate screen count was 5,207. As of September 30, 2012, the Company had signed commitments to open eight new theatres with 72 screens by the end of 2012 and open 28 new theatres and 284 screens subsequent to 2012.

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

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

Live Webcast: available live at investors.cinemark.com 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 461 theatres with 5,207 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of September 30, 2012. For more information go to investors.cinemark.com.

Contact:

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, except per share amounts)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2012     2011     2012     2011  

Statement of income data:

        

Revenues

        

Admissions

   $ 402,440      $ 417,088      $ 1,194,306      $ 1,134,697   

Concession

     200,112        194,794        581,346        530,828   

Other

     31,021        28,131        86,345        78,217   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     633,573        640,013        1,861,997        1,743,742   

Cost of operations

        

Film rentals and advertising

     214,002        225,431        636,718        613,204   

Concession supplies

     32,924        32,166        93,162        85,076   

Facility lease expense

     72,883        72,318        213,059        208,111   

Other theatre operating expenses

     138,043        132,793        394,967        366,304   

General and administrative expenses

     36,996        32,652        107,011        92,825   

Depreciation and amortization

     36,897        40,542        110,054        119,579   

Impairment of long-lived assets

     976        992        1,472        3,601   

Loss on sale of assets and other

     6,699        1,809        8,004        7,975   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     539,420        538,703        1,564,447        1,496,675   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     94,153        101,310        297,550        247,067   

Interest expense (1)

     (30,861     (32,249     (94,369     (91,316

Distributions from NCM

     4,673        5,108        13,090        16,530   

Loss on early retirement of debt

     —          —          —          (4,945

Other income

     9,455        2,816        14,940        8,289   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     77,420        76,985        231,211        175,625   

Income taxes

     29,453        29,337        88,229        61,646   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 47,967      $ 47,648      $ 142,982      $ 113,979   

Less: Net income attributable to noncontrolling interests

     582        728        1,855        1,685   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 47,385      $ 46,920      $ 141,127      $ 112,294   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.41      $ 0.41      $ 1.23      $ 0.98   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.41      $ 0.41      $ 1.23      $ 0.98   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

     113,814        113,298        113,664        113,170   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other financial data:

        

Adjusted EBITDA (2)

   $ 148,370      $ 154,273      $ 445,650      $ 406,770   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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.

 

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

Balance sheet data (in thousands):

     

Cash and cash equivalents

   $ 540,759       $ 521,408   

Theatre properties and equipment, net

   $ 1,262,919       $ 1,238,850   

Total assets

   $ 3,581,318       $ 3,522,408   

Long-term debt, including current portion

   $ 1,563,470       $ 1,572,221   

Equity

   $ 1,088,098       $ 1,023,639   

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2012      2011      2012      2011  

Other operating data:

           

Attendance (patrons, in thousands):

           

Domestic

     41,141         44,424         122,984         121,728   

International

     28,508         25,009         77,008         67,636   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     69,649         69,433         199,992         189,364   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average ticket price (in dollars):

           

Domestic

   $ 6.44       $ 6.47       $ 6.66       $ 6.51   

International

   $ 4.81       $ 5.20       $ 4.87       $ 5.07   

Worldwide

   $ 5.77       $ 6.01       $ 5.97       $ 5.99   

Concession revenues per patron (in dollars):

           

Domestic

   $ 3.29       $ 3.13       $ 3.32       $ 3.15   

International

   $ 2.26       $ 2.23       $ 2.24       $ 2.18   

Worldwide

   $ 2.87       $ 2.81       $ 2.91       $ 2.80   

Average screen count (month end average):

           

Domestic

     3,922         3,861         3,907         3,840   

International

     1,285         1,184         1,282         1,148   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     5,207         5,045         5,189         4,988   
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Information

(unaudited, in thousands)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2012     2011     2012     2011  

Revenues

        

U.S.

   $ 416,165      $ 441,334      $ 1,271,155      $ 1,216,679   

International

     220,633        201,637        598,880        534,828   

Eliminations

     (3,225     (2,958     (8,038     (7,765
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 633,573      $ 640,013      $ 1,861,997      $ 1,743,742   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

        

U.S.

   $ 94,538      $ 110,285      $ 302,222      $ 289,091   

International

     53,832        43,988        143,428        117,679   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA

   $ 148,370      $ 154,273      $ 445,650      $ 406,770   
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital expenditures

        

U.S.

   $ 27,357      $ 17,871      $ 74,160      $ 57,316   

International

     25,583        23,010        72,367        68,867   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capital expenditures

   $ 52,940      $ 40,881      $ 146,527      $ 126,183   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2012     2011     2012     2011  

Net income

   $ 47,967      $ 47,648      $ 142,982      $ 113,979   

Income taxes

     29,453        29,337        88,229        61,646   

Interest expense

     30,861        32,249        94,369        91,316   

Loss on early retirement of debt

     —          —          —          4,945   

Other income

     (9,455     (2,816     (14,940     (8,289

Depreciation and amortization

     36,897        40,542        110,054        119,579   

Impairment of long-lived assets

     976        992        1,472        3,601   

Loss on sale of assets and other

     6,699        1,809        8,004        7,975   

Deferred lease expenses - theatres (2)

     (16     832        301        1,944   

Deferred lease expenses – DCIP equipment (3)

     1,013        428        3,026        966   

Amortization of long-term prepaid rents (2)

     678        692        1,988        1,976   

Share based awards compensation expense (4)

     3,297        2,560        10,165        7,132   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 148,370      $ 154,273      $ 445,650      $ 406,770   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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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