Exhibit 99.1

 

LOGO

CINEMARK HOLDINGS, INC. REPORTS RECORD REVENUES, NET INCOME, ADJUSTED EBITDA AND EPS

FOR THE SECOND QUARTER OF 2018

Plano, TX, August 8, 2018 – 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, 2018.

Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2018 increased 18.3% to $889.0 million compared to $751.2 million for the three months ended June 30, 2017. For the three months ended June 30, 2018, admissions revenues increased 13.1% to $508.9 million and concession revenues increased 16.4% to $305.3 million. For the three months ended June 30, 2018, attendance increased 10.1% to 76.4 million patrons, average ticket price increased 2.8% to $6.66 and concession revenues per patron increased 5.8% to $4.00.

Net income attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2018 was $82.1 million compared to $51.2 million for the three months ended June 30, 2017. Diluted earnings per share for the three months ended June 30, 2018 was $0.70 compared to $0.44 for the three months ended June 30, 2017.

Adjusted EBITDA for the three months ended June 30, 2018 increased 29.8% to $221.6 million compared to $170.7 million for the three months ended June 30, 2017. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

Mark Zoradi, Cinemark’s Chief Executive Officer, stated, “We are thrilled to have delivered multiple records across all revenue categories, net income, and Adjusted EBITDA. I commend our Cinemark team for capitalizing on second quarter film content strength and continuing to advance our strategic initiatives to achieve these results. Given the all-time high box office that the North American industry celebrated in the second quarter and first half of the year, we remain bullish on full-year 2018 box office potential, while our enthusiasm for the 2019 film slate continues to grow.”

Cinemark Holdings, Inc.’s total revenues for the six months ended June 30, 2018 increased 9% to $1,669.0 million compared to $1,530.8 million for the six months ended June 30, 2017. For the six months ended June 30, 2018, admissions revenues increased 3.8% to $961.5 million and concession revenues increased 6.9% to $567.1 million. For the six months ended June 30, 2018, attendance increased 0.8% to 144.9 million patrons, average ticket price increased 2.9% to $6.64 and concession revenues per patron increased 6.0% to $3.91.

Net income attributable to Cinemark Holdings, Inc. for the six months ended June 30, 2018 was $144.2 million compared to $131.0 million for the six months ended June 30, 2017. Diluted earnings per share for the six months ended June 30, 2018 was $1.23 compared to $1.12 for the six months ended June 30, 2017.

Adjusted EBITDA for the six months ended June 30, 2018 increased 8.5% to $415.0 million compared to $382.6 million for the six months ended June 30, 2017. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of June 30, 2018, the Company’s aggregate screen count was 5,998 and the Company had commitments to open 8 new theatres and 59 screens during the remainder of 2018 and 16 new theatres and 146 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 539 theatres with 5,998 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of June 30, 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.


Cinemark Holdings, Inc.

Financial and Operating Summary

(unaudited, in thousands, except per share amounts)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2018     2017     2018     2017  

Statement of income data:

        

Revenues

        

Admissions

   $ 508,870     $ 449,880     $ 961,494     $ 926,349  

Concession

     305,306       262,322       567,078       530,546  

Other

     74,877       38,993       140,452       73,910  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     889,053       751,195       1,669,024       1,530,805  

Cost of operations

        

Film rentals and advertising

     287,206       246,556       528,121       499,374  

Concession supplies

     51,033       41,839       91,857       83,939  

Salaries and wages

     100,344       89,812       193,502       174,013  

Facility lease expense

     81,190       82,388       163,281       166,650  

Utilities and other

     115,602       91,053       225,034       179,410  

General and administrative expenses

     43,031       37,834       85,415       76,050  

Depreciation and amortization

     64,290       59,137       128,685       116,493  

Impairment of long-lived assets

     2,788       4,301       3,379       4,574  

Loss on disposal of assets and other

     16,901       54       20,840       888  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of operations

     762,385       652,974       1,440,114       1,301,391  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     126,668       98,221       228,910       229,414  

Interest expense

     (28,466     (26,522     (55,581     (52,891

Loss on debt amendments

     —         (246     (1,484     (246

Interest income

     2,862       1,380       5,100       2,713  

Foreign currency exchange gain (loss)

     (5,199     (155     (3,821     1,434  

Distributions from NCM

     3,424       2,772       9,782       9,560  

Interest expense - NCM

     (4,913     —         (9,892     —    

Equity in income of affiliates

     6,414       5,805       15,050       15,865  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     100,790       81,255       188,064       205,849  

Income taxes

     18,326       29,445       43,423       73,845  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 82,464     $ 51,810     $ 144,641     $ 132,004  

Less: Net income attributable to noncontrolling interests

     329       571       485       1,037  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Cinemark Holdings, Inc.

   $ 82,135     $ 51,239     $ 144,156     $ 130,967  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.70     $ 0.44     $ 1.23     $ 1.12  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.70     $ 0.44     $ 1.23     $ 1.12  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding - Diluted

     116,268       116,072       116,238       116,020  
  

 

 

   

 

 

   

 

 

   

 

 

 


Other Operating Data

(unaudited, in thousands)

 

     As of      As of  
     June 30,      December 31,  
     2018      2017  

Balance sheet data:

     

Cash and cash equivalents

   $ 504,712      $ 522,547  

Theatre properties and equipment, net

   $ 1,817,737      $ 1,828,054  

Total assets

   $ 4,455,238      $ 4,470,893  

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

   $ 1,782,766      $ 1,787,480  

Equity

   $ 1,463,810      $ 1,405,688  

Segment Information

(unaudited, in millions, except per patron data)

 

     U.S. Operating Segment     International Operating Segment     Consolidated  
     Three Months Ended
June 30,
           Three Months Ended
June 30,
           Constant
Currency (1)
    Three Months Ended
June 30,
        
     2018      2017      %
Change
    2018      2017      %
Change
    2018      %
Change
    2018      2017      %
Change
 

Revenues

                             

Admissions revenues

   $ 408.9      $ 335.0        22.1   $ 100.0      $ 114.9        (13.0 )%    $ 111.7        (2.8 )%    $ 508.9      $ 449.9        13.1

Concession revenues

   $ 249.6      $ 197.3        26.5   $ 55.7      $ 65.0        (14.3 )%    $ 61.5        (5.4 )%    $ 305.3      $ 262.3        16.4

Other revenues

   $ 50.5      $ 18.9        167.2   $ 24.3      $ 20.1        20.9   $ 27.7        37.8   $ 74.8      $ 39.0        91.8

Total revenues

   $ 709.0      $ 551.2        28.6   $ 180.0      $ 200.0        (10.0 )%    $ 200.9        0.4   $ 889.0      $ 751.2        18.3

Attendance

     50.6        43.0        17.7     25.8        26.4        (2.3 )%           76.4        69.4        10.1

Average ticket price

   $ 8.08      $ 7.79        3.7   $ 3.88      $ 4.35        (10.8 )%    $ 4.33        (0.5 )%    $ 6.66      $ 6.48        2.8

Concession revenues per patron

   $ 4.93      $ 4.59        7.4   $ 2.16      $ 2.46        (12.2 )%    $ 2.38        (3.3 )%    $ 4.00      $ 3.78        5.8

 

     U.S. Operating Segment      International Operating Segment      Consolidated  
     Three Months Ended      Three Months Ended      Three Months Ended  
     June 30,      March 31,      June 30,  
     2018      2017      2018      2017      Constant
Currency (1)
2018
     2018      2017  

Cost of Operations

                    

Film rentals and advertising

   $ 238.7      $ 190.4      $ 48.4      $ 56.2      $ 54.3      $ 287.1      $ 246.6  

Concession supplies

   $ 38.4      $ 27.8      $ 12.7      $ 14.0      $ 14.0      $ 51.1      $ 41.8  

Salaries and wages

   $ 79.4      $ 66.7      $ 21.0      $ 23.1      $ 24.0      $ 100.4      $ 89.8  

Facility lease expense

   $ 61.0      $ 59.9      $ 20.2      $ 22.4      $ 22.1      $ 81.2      $ 82.3  

Utilities and other

   $ 83.7      $ 61.1      $ 31.9      $ 29.9      $ 36.0      $ 115.6      $ 91.0  

 

    U.S. Operating Segment     International Operating Segment     Consolidated  
    Six Months Ended
June 30,
          Six Months Ended
June 30,
          Constant
Currency (1)
    Six Months Ended
June 30,
       
    2018     2017     %
Change
    2018     2017     %
Change
    2018     %
Change
    2018     2017     %
Change
 

Revenues

                     

Admissions revenues

  $ 758.2     $ 691.2       9.7   $ 203.3     $ 235.2       (13.6 )%    $ 219.4       (6.7 )%    $ 961.5     $ 926.4       3.8

Concession revenues

  $ 453.4     $ 400.7       13.2   $ 113.7     $ 129.8       (12.4 )%    $ 121.6       (6.3 )%    $ 567.1     $ 530.5       6.9

Other revenues

  $ 93.8     $ 36.9       154.2   $ 46.6     $ 37.0       25.9   $ 51.5       39.2   $ 140.4     $ 73.9       90.0

Total revenues

  $ 1,305.4     $ 1,128.8       15.6   $ 363.6     $ 402.0       (9.6 )%    $ 392.5       (2.4 )%    $ 1,669.0     $ 1,530.8       9.0

Attendance

    95.2       89.5       6.4     49.7       54.2       (8.3 )%          144.9       143.7       0.8

Average ticket price

  $ 7.96     $ 7.72       3.1   $ 4.09     $ 4.34       (5.8 )%    $ 4.41       1.6   $ 6.64     $ 6.45       2.9

Concession revenues per patron

  $ 4.76     $ 4.48       6.2   $ 2.29     $ 2.39       (4.2 )%    $ 2.45       2.5   $ 3.91     $ 3.69       6.0


     U.S. Operating Segment      International Operating Segment      Consolidated  
     Six Months Ended      Six Months Ended      Six Months Ended  
     June 30,      June 30,      June 30,  
     2018      2017      2018      2017      Constant
Currency (1)
2018
     2018      2017  

Cost of Operations

                    

Film rentals and advertising

   $ 431.6      $ 386.8      $ 96.5      $ 112.6      $ 104.5      $ 528.1      $ 499.4  

Concession supplies

   $ 66.9      $ 55.9      $ 25.0      $ 28.0      $ 26.8      $ 91.9      $ 83.9  

Salaries and wages

   $ 151.1      $ 129.9      $ 42.4      $ 44.1      $ 46.7      $ 193.5      $ 174.0  

Facility lease expense

   $ 122.0      $ 121.3      $ 41.3      $ 45.3      $ 43.8      $ 163.3      $ 166.6  

Utilities and other

   $ 162.7      $ 121.1      $ 62.3      $ 58.3      $ 68.1      $ 225.0      $ 179.4  

 

(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.

Segment Information, Continued

(unaudited, in thousands)

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2018      2017      2018      2017  

Revenues

           

U.S.

   $ 712,483      $ 554,929      $ 1,312,128      $ 1,136,138  

International

     179,979        199,926        363,607        401,994  

Eliminations

     (3,409      (3,660      (6,711      (7,327
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 889,053      $ 751,195      $ 1,669,024      $ 1,530,805  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (1)

           

U.S.

   $ 188,411      $ 129,394      $ 344,255      $ 294,048  

International

     33,192        41,285        70,778        88,511  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Adjusted EBITDA (1)

   $ 221,603      $ 170,679      $ 415,033      $ 382,559  
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital expenditures

           

U.S.

   $ 59,675      $ 77,175      $ 129,646      $ 155,992  

International

     22,751        14,438        32,943        26,808  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 82,426      $ 91,613      $ 162,589      $ 182,800  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Adjusted EBITDA represents net income before income taxes, interest expense, other (income) expense, loss on debt amendments, other cash distributions from equity investees, depreciation and amortization, impairment of long-lived assets, loss on disposal 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      Six Months Ended  
     June 30,      June 30,  
     2018      2017      2018      2017  

Net income

   $ 82,464      $ 51,810      $ 144,641      $ 132,004  

Add (deduct):

           

Income taxes

     18,326        29,445        43,423        73,845  

Interest expense

     28,466        26,522        55,581        52,891  

Other (income) expense

     836        (7,030      (6,437      (20,012

Loss on debt amendments

     —          246        1,484        246  

Other cash distributions from equity investees (2)

     3,932        2,870        16,255        14,919  

Depreciation and amortization

     64,290        59,137        128,685        116,493  

Impairment of long-lived assets

     2,788        4,301        3,379        4,574  

Loss on disposal of assets and other

     16,901        54        20,840        888  

Deferred lease expenses - theatres (3)

     (217      (120      (468      (234

Deferred lease expenses - projectors (4)

     (232      (255      (464      (488

Amortization of long-term prepaid rents (3)

     597        496        1,236        989  

Share based awards compensation expense (5)

     3,452        3,203        6,878        6,444  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 221,603      $ 170,679      $ 415,033      $ 382,559  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 utilities and other.

(5)

Non-cash expense included in general and administrative expenses.