Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS RECORD REVENUES OF $799.9 MILLION FOR THE

SECOND QUARTER OF 2015

Plano, TX, August 6, 2015 – 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, 2015.

Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2015 were $799.9 million, an 11.4% increase from total revenues for the three months ended June 30, 2014 of $717.9 million. Admissions revenues increased 10.4%, concession revenues increased 14.6% and attendance was up 8.8% for the three months ended June 30, 2015 compared to the same prior year period.

Adjusted EBITDA for the three months ended June 30, 2015 was $193.5 million compared to $169.4 million for the three months ended June 30, 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 June 30, 2015 was approximately $70.3 million compared to $71.7 million for the three months ended June 30, 2014. Diluted earnings per share for the three months ended June 30, 2015 was $0.61 compared to $0.62 for the three months ended June 30, 2014. Net income for the three months ended June 30, 2015 reflected an effective income tax rate of approximately 38% compared to the effective income tax rate for the three months ended June 30, 2014 of approximately 25%. The rate for the three months ended June 30, 2014 included certain discreet income tax benefits related to the sale of our Mexican subsidiary.

“It was an incredible second quarter for the North American industry with 9.3% year-over-year growth,” stated Tim Warner, Cinemark CEO. “With our global footprint, as well as our focus on technology and innovation, our worldwide operations outperformed the industry by 740 basis points on a currency adjusted basis. Furthermore, we have now achieved 24 out of 26 quarters of North American industry outperformance and congratulate our entire worldwide team for yet another quarter of outstanding results.”

Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2015 increased 9.5% to $1,445.3 million from $1,320.2 million for the six months ended June 30, 2014. During the six months ended June 30, 2015, admissions revenues increased 8.0% to $903.6 million, concession revenues increased 13.0% to $474.0 million and attendance increased 7.7% to 142.2 million patrons. Average ticket price increased 0.2% to $6.35 and concession revenues per patron increased 4.7% to $3.33 during the six months ended June 30, 2015.

Adjusted EBITDA for the six months ended June 30, 2015 was $340.6 million compared to $297.9 million for the six months ended June 30, 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 six months ended June 30, 2015 was $112.8 million compared to $107.2 million for the six months ended June 30, 2014. Diluted earnings per share for the six months ended June 30, 2015 was $0.97 compared to $0.93 for the six months ended June 30, 2014.

On June 30, 2015, the Company’s aggregate screen count was 5,720. As of June 30, 2015, the Company had signed commitments to open 11 new theatres and 111 screens by the end of 2015 and open 12 new theatres with 123 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 503 theatres with 5,720 screens in 41 U.S. states, Brazil, Argentina and 12 other Latin American countries as of June 30, 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 June 30,     Six months ended June 30,  
     2015     2014     2015     2014  

Statement of income data:

        

Revenues

        

Admissions

   $ 502,963      $ 455,726      $ 903,625      $ 836,640   

Concession

     259,530        226,417        473,957        419,440   

Other

     37,439        35,720        67,748        64,063   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     799,932        717,863        1,445,330        1,320,143   

Cost of operations

        

Film rentals and advertising

     285,303        249,198        500,962        449,855   

Concession supplies

     40,903        35,336        73,406        65,389   

Facility lease expense

     82,391        80,647        162,008        159,004   

Other theatre operating expenses

     161,666        148,512        306,246        288,795   

General and administrative expenses

     39,277        39,717        77,202        79,089   

Depreciation and amortization

     46,569        43,881        91,901        86,377   

Impairment of long-lived assets

     3,528        430        4,322        784   

Loss on sale of assets and other

     5,802        3,276        4,352        6,129   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     665,439        600,997        1,220,399        1,135,422   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     134,493        116,866        224,931        184,721   

Interest expense (1)

     (28,304     (28,286     (56,511     (56,766

Distributions from NCM

     —          1,180        8,499        10,677   

Loss on amendment to debt agreement

     (925     —          (925     —     

Other income

     8,400        6,455        6,952        14,141   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     113,664        96,215        182,946        152,773   

Income taxes

     42,774        24,081        69,154        44,943   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 70,890      $ 72,134      $ 113,792      $ 107,830   

Less: Net income attributable to noncontrolling interests

     632        403        1,013        656   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 70,258      $ 71,731      $ 112,779      $ 107,174   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.61      $ 0.62      $ 0.97      $ 0.93   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.61      $ 0.62      $ 0.97      $ 0.93   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

     115,328        114,961        115,215        114,814   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other financial data:

        

Adjusted EBITDA (2)

   $ 193,453      $ 169,355      $ 340,574      $ 297,910   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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
June 30,
2015
     As of
December 31,
2014
 

Balance sheet data:

     

Cash and cash equivalents

   $ 576,289       $ 638,869   

Theatre properties and equipment, net

   $ 1,484,389       $ 1,450,812   

Total assets

   $ 4,164,070       $ 4,151,980   

Long-term debt, including current portion

   $ 1,819,479       $ 1,822,997   

Equity

   $ 1,135,537       $ 1,123,129   

 

     Three months ended
June 30,
     Six months ended
June 30,
 
     2015      2014      2015      2014  

Other operating data:

           

Attendance (patrons, in millions):

           

Domestic

     49.0         46.5         90.5         87.1   

International

     27.7         24.0         51.7         44.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     76.7         70.5         142.2         132.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average ticket price (in dollars):

           

Domestic

   $ 7.67       $ 7.20       $ 7.42       $ 7.09   

International

   $ 4.60       $ 5.04       $ 4.49       $ 4.88   

Worldwide

   $ 6.56       $ 6.46       $ 6.35       $ 6.34   

Concession revenues per patron (in dollars):

           

Domestic

   $ 3.98       $ 3.67       $ 3.92       $ 3.63   

International

   $ 2.33       $ 2.33       $ 2.31       $ 2.30   

Worldwide

   $ 3.38       $ 3.21       $ 3.33       $ 3.18   

Average screen count (month end average):

           

Domestic

     4,498         4,452         4,497         4,457   

International

     1,209         1,145         1,196         1,133   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     5,707         5,597         5,693         5,590   
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Information

(unaudited, in thousands)

 

     Three months ended
June 30,
    Six months ended
June 30,
 
     2015     2014     2015     2014  

Revenues

        

U.S.

   $ 592,482      $ 524,485      $ 1,066,777      $ 969,405   

International

     211,505        196,881        385,838        357,073   

Eliminations

     (4,055     (3,503     (7,285     (6,335
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 799,932      $ 717,863      $ 1,445,330      $ 1,320,143   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

        

U.S.

   $ 143,604      $ 120,871      $ 250,711      $ 214,411   

International

     49,849        48,484        89,863        83,499   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA

   $ 193,453      $ 169,355      $ 340,574      $ 297,910   
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital expenditures

        

U.S.

   $ 43,947      $ 30,483      $ 118,214      $ 60,795   

International

     26,018        19,274        37,498        41,768   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capital expenditures

   $ 69,965      $ 49,757      $ 155,712      $ 102,563   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended     Six months ended  
   June 30,     June 30,  
     2015     2014     2015     2014  

Net income

   $ 70,890      $ 72,134      $ 113,792      $ 107,830   

Income taxes

     42,774        24,081        69,154        44,943   

Interest expense

     28,304        28,286        56,511        56,766   

Loss on amendment to debt agreement

     925        —          925        —     

Other income

     (8,400     (6,455     (6,952     (14,141

Depreciation and amortization

     46,569        43,881        91,901        86,377   

Impairment of long-lived assets

     3,528        430        4,322        784   

Loss on sale of assets and other

     5,802        3,276        4,352        6,129   

Deferred lease expenses - theatres (2)

     (351     485        (819     1,040   

Deferred lease expenses – DCIP equipment (3)

     (234     (236     (469     808   

Amortization of long-term prepaid rents (2)

     669        407        1,382        785   

Share based awards compensation expense (4)

     2,977        3,066        6,475        6,589   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 193,453      $ 169,355      $ 340,574      $ 297,910   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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