Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS A 0.9% INCREASE IN REVENUES

TO $751.2 MILLION FOR THE SECOND QUARTER OF 2017

Plano, TX, August 4, 2017 – 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, 2017.

Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2017 increased 0.9% to $751.2 million from $744.4 million for the three months ended June 30, 2016. For the three months ended June 30, 2017, admissions revenues were $449.9 million and concession revenues were $262.3 million. Concession revenues per patron increased 8.9% to $3.78 and average ticket price increased 3.7% to $6.48 for the three months ended June 30, 2017.

Net income attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2017 was $51.2 million compared to $53.9 million for the three months ended June 30, 2016. Diluted earnings per share for the three months ended June 30, 2017 was $0.44 compared to $0.46 for the three months ended June 30, 2016.

Adjusted EBITDA for the three months ended June 30, 2017 increased 1.4% to $170.7 million from $168.4 million for the three months ended June 30, 2016. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

“We continue to be pleased with the consistency of our financial performance, including our second quarter’s global revenue growth, record food and beverage per caps, and year-over-year box office results that again exceeded the North American industry,” stated Mark Zoradi, Cinemark’s CEO. “We remain optimistic about film content for the remainder of the year, as well as the future growth potential that our strong foundation and strategic initiatives provide for our Company.”

Cinemark Holdings, Inc.’s total revenues for the six months ended June 30, 2017 increased 5.6% to $1,530.8 million from $1,449.3 million for the six months ended June 30, 2016. During the six months ended June 30, 2017, admissions revenues increased 3.9% to $926.4 million and concession revenues increased 8.0% to $530.5 million. Concession revenues per patron increased 9.2% to $3.69 and average ticket price increased 5.2% to $6.45 for the six months ended June 30, 2017.

Net income attributable to Cinemark Holdings, Inc. for the six months ended June 30, 2017 was $131.0 million compared to $112.4 million for the six months ended June 30, 2016. Diluted earnings per share for the six months ended June 30, 2017 was $1.12 compared to $0.97 for the six months ended June 30, 2016. Net income for the six months ended June 30, 2016 was impacted by a pre-tax 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.

Adjusted EBITDA for the six months ended June 30, 2017 increased 8.4% to $382.6 million, compared to $353.0 million for the six months ended June 30, 2016. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

On June 30, 2017, the Company’s aggregate screen count was 5,926. As of June 30, 2017, the Company had signed commitments to open five new theatres and 48 screens by the end of 2017 and open 14 new theatres with 114 screens subsequent to 2017.

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 529 theatres with 5,926 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of June 30, 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 June 30,     Six months ended June 30,  
     2017     2016     2017     2016  

Statement of income data:

        

Revenues

        

Admissions

   $ 449,880     $ 456,075     $ 926,349     $ 891,895  

Concession

     262,322       253,592       530,546       491,407  

Other

     38,993       34,737       73,910       65,971  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     751,195       744,404       1,530,805       1,449,273  

Cost of operations

        

Film rentals and advertising

     246,556       250,421       499,374       483,335  

Concession supplies

     41,839       39,208       83,939       75,111  

Facility lease expense

     82,388       80,252       166,650       159,056  

Other theatre operating expenses

     180,865       173,367       353,423       329,880  

General and administrative expenses

     37,834       35,987       76,050       73,853  

Depreciation and amortization

     59,137       52,358       116,493       101,687  

Impairment of long-lived assets

     4,301       1,425       4,574       1,917  

Loss on sale of assets and other

     54       5,824       888       4,045  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     652,974       638,842       1,301,391       1,228,884  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     98,221       105,562       229,414       220,389  

Interest expense (1)

     (26,522     (27,262     (52,891     (55,321

Loss on debt amendments and refinancing

     (246     (98     (246     (13,284

Distributions from NCM

     2,772       193       9,560       8,736  

Foreign currency exchange gain (loss)

     (155     512       1,434       2,398  

Other income

     7,185       7,078       18,578       15,572  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     81,255       85,985       205,849       178,490  

Income taxes

     29,445       31,617       73,845       65,076  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 51,810     $ 54,368     $ 132,004     $ 113,414  

Less: Net income attributable to noncontrolling interests

     571       462       1,037       983  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 51,239     $ 53,906     $ 130,967     $ 112,431  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.44     $ 0.46     $ 1.12     $ 0.97  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.44     $ 0.46     $ 1.12     $ 0.97  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average diluted shares outstanding

     116,072       115,758       116,020       115,660  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other financial data:

        

Adjusted EBITDA (2)

   $ 170,679     $ 168,395     $ 382,559     $ 353,042  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(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  
     June 30,      December 31,  
     2017      2016  

Balance sheet data:

     

Cash and cash equivalents

   $ 504,179      $ 561,235  

Theatre properties and equipment, net

   $ 1,756,986      $ 1,704,536  

Total assets

   $ 4,354,525      $ 4,306,633  

Long-term debt, including current portion

   $ 1,789,203      $ 1,788,112  

Equity

   $ 1,335,421      $ 1,272,960  

 

     Three months ended
June 30,
     Six months ended
June 30,
 
     2017      2016      2017      2016  

Other operating data:

           

Attendance (patrons, in millions):

           

Domestic

     43.0        45.5        89.5        90.0  

International

     26.4        27.5        54.2        55.5  
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     69.4        73.0        143.7        145.5  
  

 

 

    

 

 

    

 

 

    

 

 

 

Average ticket price (in dollars):

           

Domestic

   $ 7.79      $ 7.59      $ 7.72      $ 7.59  

International

   $ 4.35      $ 4.03      $ 4.34      $ 3.77  

Worldwide

   $ 6.48      $ 6.25      $ 6.45      $ 6.13  

Concession revenues per patron (in dollars):

           

Domestic

   $ 4.59      $ 4.26      $ 4.48      $ 4.20  

International

   $ 2.46      $ 2.17      $ 2.39      $ 2.05  

Worldwide

   $ 3.78      $ 3.47      $ 3.69      $ 3.38  

Average screen count (month end average):

           

Domestic

     4,537        4,566        4,544        4,543  

International

     1,367        1,298        1,358        1,291  
  

 

 

    

 

 

    

 

 

    

 

 

 

Worldwide

     5,904        5,864        5,902        5,834  
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Information

(unaudited, in thousands)

 

     Three months ended
June 30,
     Six months ended
June 30,
 
     2017      2016      2017      2016  

Revenues

           

U.S.

   $ 554,929      $ 560,534      $ 1,136,138      $ 1,104,449  

International

     199,926        187,561        401,994        351,736  

Eliminations

     (3,660      (3,691      (7,327      (6,912
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 751,195      $ 744,404      $ 1,530,805      $ 1,449,273  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

           

U.S.

   $ 129,394      $ 127,845      $ 294,048      $ 271,478  

International

     41,285        40,550        88,511        81,564  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Adjusted EBITDA

   $ 170,679      $ 168,395      $ 382,559      $ 353,042  
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital expenditures

           

U.S.

   $ 77,175      $ 58,182      $ 155,992      $ 99,380  

International

     14,438        25,597        26,808        32,144  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 91,613      $ 83,779      $ 182,800      $ 131,524  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three months ended      Six months ended  
   June 30,      June 30,  
     2017      2016      2017      2016  

Net income

   $ 51,810      $ 54,368      $ 132,004      $ 113,414  

Income taxes

     29,445        31,617        73,845        65,076  

Interest expense

     26,522        27,262        52,891        55,321  

Other income

     (7,030      (7,590      (20,012      (17,970

Loss on debt amendments and refinancing

     246        98        246        13,284  

Other cash distributions from equity investees (2)

     2,870        184        14,919        8,270  

Depreciation and amortization

     59,137        52,358        116,493        101,687  

Impairment of long-lived assets

     4,301        1,425        4,574        1,917  

Loss on sale of assets and other

     54        5,824        888        4,045  

Deferred lease expenses - theatres (3)

     (120      26        (234      (182

Deferred lease expenses – DCIP equipment (4)

     (255      (233      (488      (465

Amortization of long-term prepaid rents (3)

     496        514        989        985  

Share based awards compensation expense (5)

     3,203        2,542        6,444        7,660  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (1)

   $ 170,679      $ 168,395      $ 382,559      $ 353,042  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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, 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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