Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS A 9.8% INCREASE IN REVENUES AND A 42%

INCREASE IN NET INCOME FOR THE THIRD QUARTER OF 2016

Plano, TX, November 8, 2016 – 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, 2016.

Cinemark Holdings, Inc.’s total revenues for the three months ended September 30, 2016 increased 9.8% to $768.6 million from $700.1 million for the three months ended September 30, 2015. For the three months ended September 30, 2016, admissions revenues increased 9.4% to $472.9 million and concession revenues increased 13.6% to $261.4 million. Attendance increased 7.3% to 76.2 million patrons, concession revenues per patron increased 5.9% to $3.43 and average ticket price increased 2.0% to $6.21 for the three months ended September 30, 2016.

Net income attributable to Cinemark Holdings, Inc. for the three months ended September 30, 2016 increased 42% to approximately $65.7 million from $46.3 million for the three months ended September 30, 2015. Diluted earnings per share for the three months ended September 30, 2016 increased 40% to $0.56 from $0.40 for the three months ended September 30, 2015.

Adjusted EBITDA for the three months ended September 30, 2016 increased 16% to $184.9 million from $159.1 million for the three months ended September 30, 2015. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

“The robust film environment, coupled with our focus and execution on our strategic initiatives, enabled us to deliver a 9.8% increase in total revenues, 16% growth in Adjusted EBITDA and a 42% increase in net income,” stated Mark Zoradi, Cinemark’s CEO. “We are pleased to see how our strategic investments and emphasis on enriching the guest experience favorably impacted our third quarter results. We remain opportunistic regarding these endeavors with an eye toward driving long-term shareholder value.”

Cinemark Holdings, Inc.’s total revenues for the nine months ended September 30, 2016 increased 3.4% to $2,217.9 million from $2,145.4 million for the nine months ended September 30, 2015. For the nine months ended September 30, 2016, admissions revenues increased 2.2% to $1,364.8 million and concession revenues increased 6.9% to $752.8 million. Attendance increased 4.0% to 221.7 million patrons, concession revenues per patron increased 3.0% to $3.40 and average ticket price was $6.16 for the nine months ended September 30, 2016.

Net income attributable to Cinemark Holdings, Inc. for the nine months ended September 30, 2016 increased 12% to $178.1 million from $159.1 million for the nine months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was impacted by a loss on debt amendments and refinancing of $13.3 million, which was primarily due to the refinancing of the Company’s 7.375% senior subordinated notes with an add-on to the Company’s 4.875% senior notes. Diluted earnings per share for the nine months ended September 30, 2016 increased 12% to $1.53 from $1.37 for the nine months ended September 30, 2015, even with the aforementioned loss on debt amendments and refinancing.

Adjusted EBITDA for the nine months ended September 30, 2016 increased approximately 6% to $537.9 million from $508.0 million for the nine months ended September 30, 2015. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

On September 30, 2016, the Company’s aggregate screen count was 5,865. As of September 30, 2016, the Company had signed commitments to open 7 new theatres and 60 screens by the end of 2016 and open 16 new theatres with 147 screens subsequent to 2016.

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

Telephone: via 800-374-1346 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 522 theatres with 5,865 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of September 30, 2016. 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 communications@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)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2016     2015     2016     2015  

Statement of income data:

  

   

Revenues

        

Admissions

   $ 472,842      $ 432,136      $ 1,364,737      $ 1,335,761   

Concession

     261,391        230,233        752,798        704,190   

Other

     34,341        37,687        100,312        105,435   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     768,574        700,056        2,217,847        2,145,386   

Cost of operations

        

Film rentals and advertising

     249,766        227,571        733,101        713,306   

Concession supplies

     41,888        36,039        116,999        109,445   

Facility lease expense

     82,848        80,604        241,904        242,612   

Other theatre operating expenses

     179,459        169,940        509,339        491,413   

General and administrative expenses

     35,290        39,099        109,143        116,301   

Depreciation and amortization

     54,187        47,543        155,874        139,444   

Impairment of long-lived assets

     406        633        2,323        4,955   

(Gain) loss on sale of assets and other

     6,940        (500     10,985        3,852   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     650,784        600,929        1,879,668        1,821,328   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     117,790        99,127        338,179        324,058   

Interest expense (1)

     (26,659     (28,419     (81,980     (84,930

Loss on debt amendments and refinancing

     —          —          (13,284     (925

Distributions from NCM

     1,381        4,601        10,117        13,100   

Foreign currency exchange gain (loss)

     485        (11,935     2,883        (18,702

Other income

     14,055        13,436        29,627        27,155   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     107,052        76,810        285,542        259,756   

Income taxes

     40,926        30,109        106,002        99,263   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     66,126        46,701        179,540        160,493   

Less: Net income attributable to noncontrolling interests

     471        362        1,454        1,375   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 65,655      $ 46,339      $ 178,086      $ 159,118   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

     115,601        115,164        115,475        115,051   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     115,793        115,356        115,706        115,279   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

   $ 0.56      $ 0.40      $ 1.53      $ 1.37   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other financial data:

        

Adjusted EBITDA (2)

   $ 184,891      $ 159,147      $ 537,933      $ 508,030   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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,  
     2016      2015  

Balance sheet data:

     

Cash and cash equivalents

   $ 527,111       $ 588,539   

Theatre properties and equipment, net

   $ 1,613,109       $ 1,505,069   

Total assets

   $ 4,176,619       $ 4,126,497   

Long-term debt, including current portion

   $ 1,790,793       $ 1,781,335   

Equity

   $ 1,233,616       $ 1,110,813   

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2016      2015      2016      2015  

Other operating data:

           

Attendance (patrons, in millions):

           

Domestic

     48.0         43.8         138.0         134.3   

International

     28.2         27.2         83.7         78.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     76.2         71.0         221.7         213.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average ticket price (in dollars):

           

Domestic

   $ 7.39       $ 7.27       $ 7.52       $ 7.37   

International

   $ 4.18       $ 4.18       $ 3.91       $ 4.38   

Worldwide

   $ 6.21       $ 6.09       $ 6.16       $ 6.27   

Concession revenues per patron (in dollars):

           

Domestic

   $ 4.11       $ 3.85       $ 4.17       $ 3.90   

International

   $ 2.27       $ 2.27       $ 2.12       $ 2.30   

Worldwide

   $ 3.43       $ 3.24       $ 3.40       $ 3.30   

Average screen count (month end average):

           

Domestic

     4,563         4,493         4,547         4,496   

International

     1,317         1,250         1,299         1,214   
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     5,880         5,743         5,846         5,710   
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Information

(unaudited, in thousands)

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2016      2015      2016      2015  

Revenues

           

U.S.

   $ 572,916       $ 509,330       $ 1,677,365       $ 1,576,107   

International

     199,476         194,497         551,212         580,335   

Eliminations

     (3,818      (3,771      (10,730      (11,056
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 768,574       $ 700,056       $ 2,217,847       $ 2,145,386   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

           

U.S.

   $ 137,540       $ 113,059       $ 409,018       $ 372,079   

International

     47,351         46,088         128,915         135,951   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Adjusted EBITDA

   $ 184,891       $ 159,147       $ 537,933       $ 508,030   
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital expenditures

           

U.S.

   $ 75,839       $ 48,868       $ 175,218       $ 167,082   

International

     22,984         27,771         55,128         65,269   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 98,823       $ 76,639       $ 230,346       $ 232,351   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended      Nine months ended  
   September 30,      September 30,  
     2016      2015      2016      2015  

Net income

   $ 66,126       $ 46,701       $ 179,540       $ 160,493   

Income taxes

     40,926         30,109         106,002         99,263   

Interest expense

     26,659         28,419         81,980         84,930   

Other income

     (14,540      (1,501      (32,510      (8,453

Loss on debt amendments and refinancing

     —           —           13,284         925   

Other cash distributions from equity investees (2)

     1,391         4,370         9,660         12,679   

Depreciation and amortization

     54,187         47,543         155,874         139,444   

Impairment of long-lived assets

     406         633         2,323         4,955   

(Gain) loss on sale of assets and other

     6,940         (500      10,985         3,852   

Deferred lease expenses - theatres (3)

     70         (289      (111      (1,108

Deferred lease expenses – DCIP equipment (4)

     (232      (232      (698      (701

Amortization of long-term prepaid rents (3)

     371         519         1,357         1,901   

Share based awards compensation expense (5)

     2,587         3,375         10,247         9,850   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (1)

   $ 184,891       $ 159,147       $ 537,933       $ 508,030   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, other income, loss on debt amendments and refinancing, other cash distributions from equity investees, 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. Adjusted EBITDA margin represents Adjusted EBITDA divided by total revenues.
(2) Represents cash distributions received from equity investees that were recorded as a reduction of the respective investment balances. Adjusted EBITDA for the three and nine months ended September 30, 2015 has been adjusted to reflect a comparable presentation.
(3) Non-cash expense included in facility lease expense.
(4) Non-cash expense included in other theatre operating expenses.
(5) Non-cash expense included in general and administrative expenses.

 

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