Exhibit 99.1

 

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CINEMARK HOLDINGS, INC. REPORTS RECORD REVENUES, NET INCOME

AND ADJUSTED EBITDA FOR THE FIRST QUARTER OF 2017

Plano, TX, May 3, 2017 – Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three months ended March 31, 2017.

Cinemark Holdings, Inc.’s revenues for the three months ended March 31, 2017 increased 10.6% to $779.6 million from $704.9 million for the three months ended March 31, 2016. Admissions revenues increased 9.3% and concession revenues increased 12.8%. For the three months ended March 31, 2017, attendance increased 2.5%, the average ticket price increased 6.7% to $6.41 and concession revenues per patron increased 10.1% to $3.61.

Net income attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2017 increased 36.2% to $79.7 million compared to $58.5 million for the three months ended March 31, 2016. Diluted earnings per share for the three months ended March 31, 2017 was $0.68 compared to $0.50 for the three months ended March 31, 2016.

Adjusted EBITDA for the three months ended March 31, 2017 increased 14.7% to $211.9 million from $184.6 million for the three months ended March 31, 2016. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

“I am delighted to report another record-breaking quarter for Cinemark’s worldwide operations,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “This marks our 4th consecutive year of first-quarter records. We were able to leverage the strength in our attendance of nearly 75 million guests to generate first-quarter records in total revenues, net income, Adjusted EBITDA and earnings per share. We are thrilled to have kicked-off the year on such a high note and remain enthusiastic about the upcoming film slate, as well as the execution of our strategic initiatives.”

As of March 31, 2017, Cinemark operated 525 theatres with 5,894 screens and had commitments to open seven new theatres with 63 screens during the remainder of 2017 and an additional 12 new theatres with 106 screens subsequent to 2017.

Conference Call/Webcast – Today at 8:30 AM 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 525 theatres with 5,894 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of March 31, 2017. 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 23, 2017 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 March 31,  
     2017     2016  

Statement of income data:

 

  

Revenues

     

Admissions

    $ 476,469     $ 435,820  

Concession

      268,224       237,815  

Other

      34,917       31,234  
  

 

 

    

 

 

  

Total revenues

      779,610       704,869  

Cost of operations

     

Film rentals and advertising

      252,818       232,914  

Concession supplies

      42,100       35,903  

Facility lease expense

      84,262       78,804  

Other theatre operating expenses

      172,558       156,513  

General and administrative expenses

      38,216       37,866  

Depreciation and amortization

      57,356       49,329  

Impairment of long-lived assets

      273       492  

(Gain) loss on sale of assets and other

      834       (1,779 ) 
  

 

 

    

 

 

  

Total cost of operations

      648,417       590,042  
  

 

 

    

 

 

  

Operating income

      131,193       114,827  

Interest expense (1)

      (26,369 )      (28,059 ) 

Loss on early retirement of debt

      —         (13,186 ) 

Distributions from NCM

      6,788       8,543  

Foreign currency exchange gain

      1,589       1,886  

Other income

      11,393       8,494  
  

 

 

    

 

 

  

Income before income taxes

      124,594       92,505  

Income taxes

      44,400       33,459  
  

 

 

    

 

 

  

Net income

    $ 80,194     $ 59,046  

Less: Net income attributable to noncontrolling interests

      466       521  
  

 

 

    

 

 

  

Net income attributable to Cinemark Holdings, Inc.

    $ 79,728     $ 58,525  
  

 

 

    

 

 

  

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

     

Basic

    $ 0.68     $ 0.50  
  

 

 

    

 

 

  

Diluted

    $ 0.68     $ 0.50  
  

 

 

    

 

 

  

Weighted average diluted shares outstanding

      115,915       115,527  
  

 

 

    

 

 

  

Other financial data:

     

Adjusted EBITDA (2)

    $ 211,880     $ 184,647  
  

 

 

    

 

 

  

 

(1) Includes amortization of debt issue costs.
(2) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net income, the most comparable GAAP measure, is provided in the financial schedules accompanying this press release.

 

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     As of      As of  
     March 31,      December 31,  
     2017      2016  

Balance sheet data:

      

Cash and cash equivalents

    $ 584,318      $ 561,235  

Theatre properties and equipment, net

    $ 1,729,236      $ 1,704,536  

Total assets

    $ 4,383,326      $ 4,306,633  

Long-term debt, including current portion

    $ 1,789,621      $ 1,788,112  

Total equity

    $ 1,333,034      $ 1,272,960  

 

     Three months ended
March 31,		  
     2017      2016  

Other operating data:

      

Attendance (patrons, in millions):

      

Domestic

      46.5        44.5  

International

      27.8        28.0  
  

 

 

     

 

 

  

Worldwide

      74.3        72.5  
  

 

 

     

 

 

  

Average ticket price (in dollars) (1):

      

Domestic

    $ 7.66      $ 7.58  

International

    $ 4.33      $ 3.51  

Worldwide

    $ 6.41      $ 6.01  

Concession revenues per patron (in dollars) (1):

      

Domestic

    $ 4.37      $ 4.13  

International

    $ 2.33      $ 1.92  

Worldwide

    $ 3.61      $ 3.28  

Average screen count (month end average):

      

Domestic (2)

      4,550        4,522  

International

      1,348        1,283  
  

 

 

     

 

 

  

Worldwide

      5,898        5,805  
  

 

 

     

 

 

  

Segment Information (1)

(unaudited, in thousands)

 

     Three months ended
March 31,		  
     2017     2016  

Revenues

     

U.S.

    $ 581,209     $ 543,915  

International

      202,068       164,175  

Eliminations

      (3,667 )      (3,221 ) 
  

 

 

    

 

 

  

Total revenues

    $ 779,610     $ 704,869  
  

 

 

    

 

 

  

Adjusted EBITDA

     

U.S.

    $ 164,654     $ 143,633  

International

      47,226       41,014  
  

 

 

    

 

 

  

Total Adjusted EBITDA

    $ 211,880     $ 184,647  
  

 

 

    

 

 

  

Capital expenditures

     

U.S.

    $ 78,817     $ 41,198  

International

      12,370       6,547  
  

 

 

    

 

 

  

Total capital expenditures

    $ 91,187     $ 47,745  
  

 

 

    

 

 

  

 

(1) For additional segment results and discussion, including a presentation of results for our international segment in constant currency, see the “Results of Operations” section in the Company’s Quarterly Report on Form 10-Q filed May 3, 2017.
(2) Average domestic screens in operation, net of average screens closed for renovations, were 4,444 and 4,485 screens for the three months ended March 31, 2017 and March 31, 2016, respectively.

 

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Reconciliation of Net Income to Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended  
   March 31,  
     2017     2016  

Net income

    $ 80,194     $ 59,046  

Income taxes

      44,400       33,459  

Interest expense

      26,369       28,059  

Other income

      (12,982 )      (10,380 ) 

Loss on early retirement of debt

      —         13,186  

Other cash distributions from equity investees (2)

      12,049       8,086  

Depreciation and amortization

      57,356       49,329  

Impairment of long-lived assets

      273       492  

(Gain) loss on sale of assets and other

      834       (1,779 ) 

Deferred lease expenses - theatres (3)

      (114 )      (208 ) 

Deferred lease expenses – DCIP equipment (4)

      (233 )      (232 ) 

Amortization of long-term prepaid rents (3)

      493       471  

Share based awards compensation expense (5)

      3,241       5,118  
  

 

 

    

 

 

  

Adjusted EBITDA (1)

    $ 211,880     $ 184,647  
  

 

 

    

 

 

  

 

(1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, other income, loss on early retirement of debt, 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.
(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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