Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS GLOBAL REVENUES OF $780 MILLION FOR THE FIRST QUARTER OF 2018

Plano, TX, May 9, 2018 – 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, 2018.

Cinemark Holdings, Inc.’s total revenues for the three months ended March 31, 2018 were $780.0 million compared to $779.6 million for the three months ended March 31, 2017. For the three months ended March 31, 2018, admissions revenues were $452.6 million and concession revenues were $261.8 million. Average ticket price increased 3.1% to $6.61 and concession revenues per patron increased 5.8% to $3.82 for the three months ended March 31, 2018.

Net income attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2018 was $62.0 million compared to $79.7 million for the three months ended March 31, 2017. Diluted earnings per share for the three months ended March 31, 2018 was $0.53 compared to $0.68 for the three months ended March 31, 2017.

Adjusted EBITDA for the three months ended March 31, 2018 were $193.4 million compared to $211.9 million for the three months ended March 31, 2017. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“Fueled by the unprecedented success of Black Panther, the North American industry box office results in the first quarter far surpassed expectations, demonstrating the powerful potential of a break-out film,” stated Mark Zoradi, Cinemark’s Chief Executive Officer.

“And driven by the benefits we continue to derive from our strategic initiatives and actions, Cinemark again outperformed industry attendance and box office results, while maintaining the consistency and strength of our operating margins.”

As of March 31, 2018, the Company’s aggregate screen count was 5,964 and the Company had commitments to open 12 new theatres and 79 screens during the remainder of 2018 and 11 new theatres and 106 screens subsequent to 2018.


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 533 theatres with 5,964 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of March 31, 2018. 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, 2018. 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  
     March 31,  
     2018     2017  

Statement of income data:

    

Revenues

    

Admissions

   $ 452,624     $ 476,469  

Concession

     261,772       268,224  

Other

     65,575       34,917  
  

 

 

   

 

 

 

Total revenues

     779,971       779,610  

Cost of operations

    

Film rentals and advertising

     240,915       252,818  

Concession supplies

     40,824       42,100  

Salaries and wages

     93,158       84,201  

Facility lease expense

     82,091       84,262  

Utilities and other

     109,432       88,357  

General and administrative expenses

     42,384       38,216  

Depreciation and amortization

     64,395       57,356  

Impairment of long-lived assets

     591       273  

Loss on sale of assets and other

     3,939       834  
  

 

 

   

 

 

 

Total cost of operations

     677,729       648,417  
  

 

 

   

 

 

 

Operating income

     102,242       131,193  

Interest expense

     (27,115     (26,369

Loss on debt amendments

     (1,484     —    

Interest income

     2,238       1,333  

Foreign currency exchange gain

     1,378       1,589  

Distributions from NCM

     6,358       6,788  

Interest expense - NCM

     (4,979     —    

Equity in income of affiliates

     8,636       10,060  
  

 

 

   

 

 

 

Income before income taxes

     87,274       124,594  

Income taxes

     25,097       44,400  
  

 

 

   

 

 

 

Net income

   $ 62,177     $ 80,194  

Less: Net income attributable to noncontrolling interests

     156       466  
  

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 62,021     $ 79,728  
  

 

 

   

 

 

 

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

    

Basic

   $ 0.53     $ 0.68  
  

 

 

   

 

 

 

Diluted

   $ 0.53     $ 0.68  
  

 

 

   

 

 

 

Weighted average shares outstanding

     116,143       115,915  
  

 

 

   

 

 

 

 

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Other Operating Data

(unaudited, in thousands)

 

     As of      As of  
     March 31,      December 31,  
     2018      2017  

Balance sheet data:

     

Cash and cash equivalents

   $ 474,046      $ 522,547  

Theatre properties and equipment, net

   $ 1,835,652      $ 1,828,054  

Total assets

   $ 4,413,471      $ 4,470,893  

Long-term debt, including current portion, net of unamortized debt issue costs

   $ 1,783,236      $ 1,787,480  

Equity

   $ 1,471,991      $ 1,405,688  

Segment Information

(unaudited, in millions, except per patron data)

 

     U.S. Operating Segment     International Operating Segment     Consolidated  
     Three Months Ended
March 31,
           Three Months Ended
March 31,
           Constant
Currency (1)
    Three Months Ended
March 31,
        
     2018      2017      %
Change
    2018      2017      %
Change
    2018      %
Change
    2018      2017      %
Change
 

Admissions revenues

   $ 349.3      $ 356.2        (1.9 )%    $ 103.3      $ 120.3        (14.1 )%    $ 107.7        (10.5 )%    $ 452.6      $ 476.5        (5.0 )% 

Concession revenues

   $ 203.8      $ 203.4        0.2   $ 58.0      $ 64.8        (10.5 )%    $ 60.1        (7.3 )%    $ 261.8      $ 268.2        (2.4 )% 

Other revenues

   $ 43.3      $ 18.0        140.6   $ 22.3      $ 16.9        32.0   $ 23.8        40.8   $ 65.6      $ 34.9        88.0

Total revenues

   $ 596.4      $ 577.6        3.3   $ 183.6      $ 202.0        (9.1 )%    $ 191.6        (5.1 )%    $ 780.0      $ 779.6        0.1

Attendance

     44.6        46.5        (4.1 )%      23.9        27.8        (14.0 )%           68.5        74.3        (7.8 )% 

Average ticket price

   $ 7.83      $ 7.66        2.2   $ 4.32      $ 4.33        (0.2 )%    $ 4.51        4.2   $ 6.61      $ 6.41        3.1

Concession revenues per patron

   $ 4.57      $ 4.37        4.6   $ 2.43      $ 2.33        4.3   $ 2.51        7.7   $ 3.82      $ 3.61        5.8

 

     U.S. Operating Segment      International Operating Segment      Consolidated  
     Three Months Ended      Three Months Ended      Three Months Ended  
     March 31,      March 31,      March 31,  
     2018      2017      2018      2017      Constant
Currency (1)
2018
     2018      2017  

Film rentals and advertising

   $ 192.9      $ 196.4      $ 48.1      $ 56.4      $ 50.2      $ 241.0      $ 252.8  

Concession supplies

     28.5        28.1        12.3        14.0        12.8        40.8        42.1  

Salaries and wages

     71.7        63.2        21.4        21.0        22.7        93.1        84.2  

Facility lease expense

     61.0        61.4        21.1        22.9        21.7        82.1        84.3  

Utilities and other

     79.0        60.0        30.4        28.4        32.1        109.4        88.4  

 

(1) Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2017. We translate the results of our international operating segment from local currencies into U.S. dollars using currency rates in effect at different points in time in accordance with U.S. GAAP. Significant changes in foreign exchange rates from one period to the next can result in meaningful variations in reported results. We are providing constant currency amounts for our international operating segment to present a period-to-period comparison of business performance that excludes the impact of foreign currency fluctuations.

 

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Segment Information, continued

(unaudited, in thousands)

 

     Three Months Ended  
     March 31,  
     2018      2017  

Revenues

     

U.S.

   $ 599,645      $ 581,209  

International

     183,628        202,068  

Eliminations

     (3,302      (3,667
  

 

 

    

 

 

 

Total revenues

   $ 779,971      $ 779,610  
  

 

 

    

 

 

 

Adjusted EBITDA (1)

     

U.S.

   $ 155,844      $ 164,654  

International

     37,586        47,226  
  

 

 

    

 

 

 

Total Adjusted EBITDA (1)

   $ 193,430      $ 211,880  
  

 

 

    

 

 

 

Capital expenditures

     

U.S.

   $ 69,971      $ 78,817  

International

     10,192        12,370  
  

 

 

    

 

 

 

Total capital expenditures

   $ 80,163      $ 91,187  
  

 

 

    

 

 

 

 

(1) Adjusted EBITDA represents net income before income taxes, interest expense, other income, loss on debt amendments, 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, as calculated below. 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.

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

     Three Months Ended  
     March 31,  
     2018      2017  

Net income

   $ 62,177      $ 80,194  

Add (deduct):

     

Income taxes

     25,097        44,400  

Interest expense

     27,115        26,369  

Other income

     (7,273      (12,982

Loss on debt amendments

     1,484        —    

Other cash distributions from equity investees (2)

     12,323        12,049  

Depreciation and amortization

     64,395        57,356  

Impairment of long-lived assets

     591        273  

Loss on sale of assets and other

     3,939        834  

Deferred lease expenses - theatres (3)

     (251      (114

Deferred lease expenses - projectors (4)

     (232      (233

Amortization of long-term prepaid rents (3)

     639        493  

Share based awards compensation expense (5)

     3,426        3,241  
  

 

 

    

 

 

 

Adjusted EBITDA

   $ 193,430      $ 211,880  
  

 

 

    

 

 

 

 

(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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