Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS RECORD REVENUES OF $707.2 MILLION

AND ADJUSTED EBITDA OF $168.4 MILLION FOR Q4 2015

Plano, TX, February 24, 2016 – 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, 2015.

Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2015 increased 7.2% to $707.2 million compared to $659.9 million for the three months ended December 31, 2014. For the three months ended December 31, 2015, admissions revenues increased 6.2% to $429.7 million and concession revenues increased 8.4% to $232.8 million. Average ticket price was $6.42 and concession revenues per patron was $3.48 for the three months ended December 31, 2015.

Adjusted EBITDA for the three months ended December 31, 2015 increased 7.3% to $168.4 million from $156.9 million for the three months ended December 31, 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 December 31, 2015 increased 22.2% to $57.8 million from $47.3 million for the three months ended December 31, 2014. Diluted earnings per share for the three months ended December 31, 2015 was $0.50 compared to $0.41 for the three months ended December 31, 2014.

“It was a record-breaking year for the North American industry box office, as well as for each of the countries in which we operate throughout South and Central America,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “Cinemark is extremely pleased with our worldwide fourth quarter and full-year 2015 results that created new records in each key performance metric, including attendance, admissions and concession revenues, average ticket price, concession per patron, Adjusted EBITDA, and net income.”

Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2015 increased 8.6% to $2,852.6 million from $2,627.0 million for the year ended December 31, 2014. For the year ended December 31, 2015, admissions revenues increased 7.4% to $1,765.5 million and concession revenues increased 10.8% to $937.0 million. Average ticket price increased 1.1% to $6.30 and concession revenues per patron increased 4.7% to $3.35 for the year ended December 31, 2015.

Adjusted EBITDA for the year ended December 31, 2015 increased 11.3% to $663.8 million from $596.5 million for the year ended December 31, 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 year ended December 31, 2015 increased 12.6% to $216.9 million from $192.6 million for the year ended December 31, 2014. Diluted earnings per share for the year ended December 31, 2015 was $1.87 compared to $1.66 for the year ended December 31, 2014.

As of December 31, 2015, the Company’s aggregate screen count was 5,796 and the Company had commitments to open 13 new theatres and 115 screens during 2016 and seven new theatres and 76 screens subsequent to 2016.


Conference Call/Webcast – Today at 8:30 AM 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 513 theatres with 5,796 screens in 41 U.S. states, Brazil, Argentina and 12 other Latin American countries as of December 31, 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 24, 2016 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     Year Ended  
     December 31,     December 31,  
     2015     2014     2015     2014  

Statement of Income Data:

        

Revenues

        

Admissions

   $ 429,758      $ 404,697      $ 1,765,519      $ 1,644,169   

Concession

     232,780        214,805        936,970        845,376   

Other

     44,685        40,442        150,120        137,445   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     707,223        659,944        2,852,609        2,626,990   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of operations

        

Film rentals and advertising

     239,213        217,632        976,590        883,052   

Concession supplies

     34,825        33,123        144,270        131,985   

Salaries and wages

     78,838        71,684        301,099        273,880   

Facility lease expense

     77,149        77,525        319,761        317,096   

Utilities and other

     79,770        74,466        324,851        308,445   

General and administrative expenses

     40,435        36,552        156,736        151,444   

Depreciation and amortization

     49,762        44,548        189,206        175,656   

Impairment of long-lived assets

     3,846        1,353        8,801        6,647   

Loss on sale of assets and other

     4,291        6,996        8,143        15,715   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     608,129        563,879        2,429,457        2,263,920   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     99,094        96,065        423,152        363,070   

Interest expense (1)

     (27,811     (28,597     (112,741     (113,698

Loss on amendment to debt agreement

     —          —          (925     —     

Distributions from NCM

     5,040        4,383        18,140        18,541   

Foreign currency exchange gain (loss)

     1,909        (5,834     (16,793     (6,192

Other income

     9,679        7,207        36,834        28,342   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     87,911        73,224        347,667        290,063   

Income taxes

     29,676        25,587        128,939        96,064   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 58,235      $ 47,637      $ 218,728      $ 193,999   

Less: Net income attributable to noncontrolling interests

     484        330        1,859        1,389   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 57,751      $ 47,307      $ 216,869      $ 192,610   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.50      $ 0.41      $ 1.87      $ 1.66   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.50      $ 0.41      $ 1.87      $ 1.66   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

     115,463        115,062        115,399        114,966   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Financial Data:

        

Adjusted EBITDA (2)

   $ 168,404      $ 156,876      $ 663,755      $ 596,525   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes amortization of debt issuance 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  
     December 31,  
     2015      2014  

Balance Sheet Data (unaudited, in thousands):

     

Cash and cash equivalents

   $ 588,539       $ 638,869   

Theatre properties and equipment, net

   $ 1,505,069       $ 1,450,812   

Total assets

   $ 4,126,497       $ 4,120,561   

Long-term debt, including current portion

   $ 1,781,335       $ 1,791,578   

Equity

   $ 1,110,813       $ 1,123,129   

Segment Information

(unaudited, in thousands)

 

     Three Months Ended      Year Ended  
     December 31,      December 31,  
     2015      2014      2015      2014  

Revenues

           

U.S.

   $ 561,626       $ 501,731       $ 2,137,733       $ 1,934,990   

International

     148,400         161,122         728,735         704,623   

Eliminations

     (2,803      (2,909      (13,859      (12,623
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 707,223       $ 659,944       $ 2,852,609       $ 2,626,990   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

           

U.S.

   $ 137,939       $ 122,933       $ 497,339       $ 436,863   

International

     30,465         33,943         166,416         159,662   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Adjusted EBITDA

   $ 168,404       $ 156,876       $ 663,755       $ 596,525   
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital expenditures

           

U.S.

   $ 56,131       $ 51,412       $ 223,213       $ 148,532   

International

     43,244         37,125         108,513         96,173   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 99,375       $ 88,537       $ 331,726       $ 244,705   
  

 

 

    

 

 

    

 

 

    

 

 

 

Additional Segment Information (1)

(unaudited)

 

     U.S. Operating Segment     International Operating
Segment
    Consolidated  
     Three Months Ended     Three Months Ended     Three Months Ended  
     December 31,     December 31,     December 31,  
                   %                   %            %  
     2015      2014      Change     2015      2014      Change     2015      2014      Change  

Admissions revenues

   $ 348.0       $ 312.9         11.2   $ 81.7       $ 91.8         (11.0 %)    $ 429.7       $ 404.7         6.2

Concession revenues

   $ 186.6       $ 164.2         13.6   $ 46.2       $ 50.6         (8.7 %)    $ 232.8       $ 214.8         8.4

Other revenues(2)

   $ 24.2       $ 21.7         11.5   $ 20.5       $ 18.7         9.6   $ 44.7       $ 40.4         10.6

Total revenues(2)

   $ 558.8       $ 498.8         12.0   $ 148.4       $ 161.1         (7.9 %)    $ 707.2       $ 659.9         7.2

Attendance

     45.3         44.0         3.0     21.6         21.7         (0.5 %)      66.9         65.7         1.8

Average ticket price

   $ 7.68       $ 7.11         8.0   $ 3.78       $ 4.23         (10.6 %)    $ 6.42       $ 6.16         4.2

Concession revenues per patron

   $ 4.12       $ 3.73         10.5   $ 2.14       $ 2.33         (8.2 %)    $ 3.48       $ 3.27         6.4

Average screen count

     4,506         4,481         0.6     1,263         1,163         8.6     5,769         5,644         2.2

 

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     U.S. Operating
Segment
     International
Operating Segment
     Consolidated  
     Three Months Ended      Three Months Ended      Three Months Ended  
     December 31,      December 31,      December 31,  
     2015      2014      2015      2014      2015      2014  

Film rentals and advertising

   $ 200.7       $ 175.6       $ 38.5       $ 42.1       $ 239.2       $ 217.7   

Concession supplies

   $ 25.1       $ 22.0       $ 9.8       $ 11.1       $ 34.9       $ 33.1   

Salaries and wages

   $ 61.5       $ 53.0       $ 17.3       $ 18.7       $ 78.8       $ 71.7   

Facility lease expense

   $ 60.3       $ 59.0       $ 16.8       $ 18.5       $ 77.1       $ 77.5   

Utilities and other

   $ 57.4       $ 52.5       $ 22.4       $ 21.9       $ 79.8       $ 74.4   

 

                  International                      
     U.S. Operating Segment     Operating Segment     Consolidated  
     Year Ended     Year Ended     Year Ended  
     December 31,     December 31,     December 31,  
                   %                   %                   %  
     2015      2014      Change     2015      2014      Change     2015      2014      Change  

Admissions revenues

   $ 1,338.0       $ 1,220.8         9.6   $ 427.5       $ 423.4         1.0   $ 1,765.5       $ 1,644.2         7.4

Concession revenues

   $ 709.7       $ 635.6         11.7   $ 227.3       $ 209.8         8.3   $ 937.0       $ 845.4         10.8

Other revenues(2)

   $ 76.2       $ 66.0         15.5   $ 73.9       $ 71.4         3.5   $ 150.1       $ 137.4         9.2

Total revenues(2)

   $ 2,123.9       $ 1,922.4         10.5   $ 728.7       $ 704.6         3.4   $ 2,852.6       $ 2,627.0         8.6

Attendance

     179.6         173.9         3.3     100.5         90.0         11.7     280.1         263.9         6.1

Average ticket price

   $ 7.45       $ 7.02         6.1   $ 4.25       $ 4.70         (9.6 %)    $ 6.30       $ 6.23         1.1

Concession revenues per patron

   $ 3.95       $ 3.65         8.2   $ 2.26       $ 2.33         (3.0 %)    $ 3.35       $ 3.20         4.7

Average screen count

     4,499         4,467         0.7     1,226         1,146         7.0     5,725         5,613         2.0

 

     U.S. Operating Segment      International
Operating Segment
     Consolidated  
     Year Ended      Year Ended      Year Ended  
     December 31,      December 31,      December 31,  
     2015      2014      2015      2014      2015      2014  

Film rentals and advertising

   $ 768.2       $ 681.1       $ 208.4       $ 202.0       $ 976.6       $ 883.1   

Concession supplies

   $ 95.4       $ 86.4       $ 48.9       $ 45.6       $ 144.3       $ 132.0   

Salaries and wages

   $ 226.9       $ 202.8       $ 74.2       $ 71.1       $ 301.1       $ 273.9   

Facility lease expense

   $ 239.4       $ 235.2       $ 80.3       $ 81.9       $ 319.7       $ 317.1   

Utilities and other

   $ 228.0       $ 217.2       $ 96.9       $ 91.2       $ 324.9       $ 308.4   

 

(1) Revenues, attendance and theatre operating costs are in millions. Average ticket price and concession revenues per patron are in dollars.
(2) U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended      Year ended  
     December 31,      December 31,  
     2015      2014      2015      2014  

Net income

   $ 58,235       $ 47,637       $ 218,728       $ 193,999   

Income taxes

     29,676         25,587         128,939         96,064   

Interest expense

     27,811         28,597         112,741         113,698   

Loss on amendment to debt agreement

     —           —           925         —     

Foreign currency exchange (gain) loss

     (1,909      5,834         16,793         6,192   

Other income

     (9,679      (7,207      (36,834      (28,342

Depreciation and amortization

     49,762         44,548         189,206         175,656   

Impairment of long-lived assets

     3,846         1,353         8,801         6,647   

Loss on sale of assets and other

     4,291         6,996         8,143         15,715   

Deferred lease expenses – theatres (2)

     234         754         (874      2,197   

Deferred lease expenses – DCIP (3)

     (231      (234      (932      339   

Amortization of long-term prepaid rents (2)

     460         (243      2,361         1,542   

Share based awards compensation expense (4)

     5,908         3,254         15,758         12,818   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (1)

   $ 168,404       $ 156,876       $ 663,755       $ 596,525   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on amendment to debt agreement, foreign currency exchange (gain) loss, 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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