Exhibit 99.1

 

CINEMARK HOLDINGS, INC. REPORTS GROWTH IN WORLDWIDE ATTENDANCE, REVENUES,

NET INCOME, EPS AND ADJUSTED EBITDA FOR THE THIRD QUARTER OF 2018

Plano, TX, November 2, 2018 – 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, 2018.

Cinemark Holdings, Inc.’s total revenues for the three months ended September 30, 2018 increased 6.1% to $754.2 million compared to $710.8 million for the three months ended September 30, 2017. For the three months ended September 30, 2018, admissions revenues increased 0.6% to $427.6 million and concession revenues increased 6.9% to $264.1 million. For the three months ended September 30, 2018, attendance increased 3.7% to 69.8 million patrons, average ticket price was $6.13 and concession revenues per patron increased 3.0% to $3.78.

Net income attributable to Cinemark Holdings, Inc. for the three months ended September 30, 2018 increased 31.7% to $50.2 million from $38.1 million for the three months ended September 30, 2017. Diluted earnings per share for the three months ended September 30, 2018 was $0.43 compared to $0.33 for the three months ended September 30, 2017.

Adjusted EBITDA for the three months ended September 30, 2018 increased 9.6% to $168.4 million compared to $153.7 million for the three months ended September 30, 2017. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“Cinemark again delivered remarkable results during the third quarter. We are pleased to report that ongoing execution of our strategic initiatives, coupled with our sustained operating discipline, enabled us to capitalize on strong film content and generate worldwide growth across our key metrics,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “Furthermore, continued momentum at the North American box office, which is up 8.7% year-to-date and has been propelled by year-over-year attendance growth, reinforces the strength and stability of the theatrical exhibition industry.”

Cinemark Holdings, Inc.’s total revenues for the nine months ended September 30, 2018 increased 8.1% to $2,423.2 million compared to $2,241.6 million for the nine months ended September 30, 2017. For the nine months ended September 30, 2018, admissions revenues increased 2.8% to $1,389.1 million and concession revenues increased 6.9% to $831.2 million. For the nine months ended September 30, 2018, attendance increased 1.8% to 214.7 million patrons, average ticket price was $6.47 and concession revenues per patron increased 4.9% to $3.87.

Net income attributable to Cinemark Holdings, Inc. for the nine months ended September 30, 2018 increased 14.9% to $194.4 million from $169.1 million for the nine months ended September 30, 2017. Diluted earnings per share for the nine months ended September 30, 2018 was $1.66 compared to $1.45 for the nine months ended September 30, 2017.

Adjusted EBITDA for the nine months ended September 30, 2018 increased 8.8% to $583.4 million compared to $536.2 million for the nine months ended September 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 September 30, 2018, the Company’s aggregate screen count was 6,014 and the Company had commitments to open five new theatres and 35 screens during the remainder of 2018 and 20 new theatres and 191 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 541 theatres with 6,014 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of September 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								Nine Months Ended
		September 30,								September 30,
		2018				2017				2018				2017
Statement of income data:
Revenues
Admissions		$	427,616			$	425,128			$	1,389,110			$	1,351,477
Concession			264,165				247,027				831,243				777,573
Other			62,454				38,593				202,906				112,503
Total revenues			754,235				710,748				2,423,259				2,241,553
Cost of operations
Film rentals and advertising			230,121				226,229				758,242				725,603
Concession supplies			42,720				40,178				134,577				124,117
Salaries and wages			92,495				87,305				285,997				261,318
Facility lease expense			80,592				81,919				243,873				248,569
Utilities and other			112,832				92,341				337,866				271,751
General and administrative expenses			38,299				36,947				123,714				112,997
Depreciation and amortization			64,971				58,052				193,656				174,545
Impairment of long-lived assets			1,641				5,026				5,020				9,600
Loss on disposal of assets and other			7,826				8,576				28,666				9,464
Total cost of operations			671,497				636,573				2,111,611				1,937,964
Operating income			82,738				74,175				311,648				303,589
Interest expense			(27,144	)			(26,317	)			(82,725	)			(79,208	)
Loss on debt amendments			—				—				(1,484	)			(246	)
Interest income			2,761				1,682				7,861				4,395
Foreign currency exchange gain (loss)			(3,126	)			584				(6,947	)			2,018
Distributions from NCM			2,386				2,144				12,168				11,704
Interest expense - NCM			(4,983	)			—				(14,875	)			—
Equity in income of affiliates			14,158				10,902				29,208				26,767
Income before income taxes			66,790				63,170				254,854				269,019
Income taxes			16,169				24,630				59,592				98,475
Net income		$	50,621			$	38,540			$	195,262			$	170,544
Less: Net income attributable to noncontrolling interests			393				401				878				1,438
Net income attributable to Cinemark Holdings, Inc.		$	50,228			$	38,139			$	194,384			$	169,106
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders
Basic		$	0.43			$	0.33			$	1.66			$	1.45
Diluted		$	0.43			$	0.33			$	1.66			$	1.45
Weighted average shares outstanding - Diluted			116,322				116,104				116,288				116,063

Other Operating Data

(unaudited, in thousands)

 

		As of				As of
		September 30,				December 31,
		2018				2017
Balance sheet data:
Cash and cash equivalents		$	366,796			$	522,547
Theatre properties and equipment, net		$	1,820,487			$	1,828,054
Total assets		$	4,397,573			$	4,470,893
Long-term debt, including current portion, net of unamortized debt issue costs		$	1,782,440			$	1,787,480
Equity		$	1,469,527			$	1,405,688

Segment Information

(unaudited, in millions, except per patron data)

 

		U.S. Operating Segment												International Operating Segment																				Consolidated
		Three Months Ended September 30,												Three Months Ended September 30,												Constant Currency (1)								Three Months Ended September 30,
		2018				2017				% Change				2018				2017				% Change				2018				% Change				2018				2017				% Change
Revenues
Admissions revenues		$	333.3			$	312.3				6.7	%		$	94.3			$	112.8				(16.4	)%		$	116.3				3.1	%		$	427.6			$	425.1				0.6	%
Concession revenues		$	207.9			$	181.5				14.5	%		$	56.2			$	65.6				(14.3	)%		$	67.1				2.3	%		$	264.1			$	247.1				6.9	%
Other revenues		$	41.1			$	16.9				143.2	%		$	21.4			$	21.7				(1.4	)%		$	27.6				27.2	%		$	62.5			$	38.6				61.9	%
Total revenues		$	582.3			$	510.7				14.0	%		$	171.9			$	200.1				(14.1	)%		$	211.0				5.4	%		$	754.2			$	710.8				6.1	%
Attendance			43.7				40.6				7.6	%			26.1				26.7				(2.2	)%											69.8				67.3				3.7	%
Average ticket price		$	7.63			$	7.69				(0.8	)%		$	3.61			$	4.22				(14.5	)%		$	4.46				5.7	%		$	6.13			$	6.32				(3.0	)%
Concession revenues per patron		$	4.76			$	4.47				6.5	%		$	2.15			$	2.46				(12.6	)%		$	2.57				4.5	%		$	3.78			$	3.67				3.0	%

 

		U.S. Operating Segment								International Operating Segment												Consolidated
		Three Months Ended								Three Months Ended												Three Months Ended
		September 30,								September 30,												September 30,
		2018				2017				2018				2017				Constant Currency (1) 2018				2018				2017
Cost of Operations
Film rentals and advertising		$	185.1			$	171.5			$	45.0			$	54.7			$	55.5			$	230.1			$	226.2
Concession supplies		$	31.2			$	26.2			$	11.5			$	14.0			$	13.7			$	42.7			$	40.2
Salaries and wages		$	73.2			$	64.6			$	19.3			$	22.7			$	24.0			$	92.5			$	87.3
Facility lease expense		$	61.1			$	59.8			$	19.5			$	22.2			$	23.1			$	80.6			$	82.0
Utilities and other		$	83.0			$	64.0			$	29.9			$	28.4			$	36.8			$	112.9			$	92.4

 

		U.S. Operating Segment												International Operating Segment																				Consolidated
		Nine Months Ended September 30,												Nine Months Ended September 30,												Constant Currency (1)								Nine Months Ended September 30,
		2018				2017				% Change				2018				2017				% Change				2018				% Change				2018				2017				% Change
Revenues
Admissions revenues		$	1,091.5			$	1,003.5				8.8	%		$	297.6			$	348.0				(14.5	)%		$	335.7				(3.5	)%		$	1,389.1			$	1,351.5				2.8	%
Concession revenues		$	661.3			$	582.2				13.6	%		$	169.9			$	195.4				(13.1	)%		$	188.7				(3.4	)%		$	831.2			$	777.6				6.9	%
Other revenues		$	134.9			$	53.8				150.7	%		$	68.0			$	58.7				15.8	%		$	79.1				34.8	%		$	202.9			$	112.5				80.4	%
Total revenues		$	1,887.7			$	1,639.5				15.1	%		$	535.5			$	602.1				(11.1	)%		$	603.5				0.2	%		$	2,423.2			$	2,241.6				8.1	%
Attendance			138.9				130.1				6.8	%			75.8				80.9				(6.3	)%											214.7				211.0				1.8	%
Average ticket price		$	7.86			$	7.71				1.9	%		$	3.93			$	4.30				(8.6	)%		$	4.43				3.0	%		$	6.47			$	6.41				0.9	%
Concession revenues per patron		$	4.76			$	4.48				6.2	%		$	2.24			$	2.42				(7.4	)%		$	2.49				2.9	%		$	3.87			$	3.69				4.9	%

		U.S. Operating Segment Nine Months Ended September 30,								International Operating Segment Nine Months Ended September 30,												Consolidated Nine Months Ended September 30,
		2018				2017				2018				2017				Constant Currency (1) 2018				2018				2017
Cost of Operations
Film rentals and advertising		$	616.7			$	558.3			$	141.5			$	167.3			$	160.0			$	758.2			$	725.6
Concession supplies		$	98.1			$	82.1			$	36.5			$	42.0			$	40.5			$	134.6			$	124.1
Salaries and wages		$	224.3			$	194.5			$	61.7			$	66.8			$	70.7			$	286.0			$	261.3
Facility lease expense		$	183.1			$	181.1			$	60.8			$	67.5			$	66.9			$	243.9			$	248.6
Utilities and other		$	245.7			$	185.1			$	92.2			$	86.7			$	104.9			$	337.9			$	271.8

 

(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.

Other Segment Information

(unaudited, in thousands)

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2018				2017				2018				2017
Adjusted EBITDA (1)
U.S.		$	132,652			$	108,854			$	476,907			$	402,902
International			35,740				44,818				106,518				133,329
Total Adjusted EBITDA (1)		$	168,392			$	153,672			$	583,425			$	536,231
Capital expenditures
U.S.		$	65,458			$	65,612			$	195,104			$	221,604
International			17,915				14,318				50,858				41,126
Total capital expenditures		$	83,373			$	79,930			$	245,962			$	262,730

 

(1)

Adjusted EBITDA represents net income before income taxes, interest expense, interest income, foreign currency exchange gain (loss), interest expense – NCM, equity in income of affiliates, loss on debt amendments and refinancing, 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								Nine Months Ended
		September 30,								September 30,
		2018				2017				2018				2017
Net income		$	50,621			$	38,540			$	195,262			$	170,544
Add (deduct):
Income taxes			16,169				24,630				59,592				98,475
Interest expense			27,144				26,317				82,725				79,208
Other income			(8,810	)			(13,168	)			(15,247	)			(33,180	)
Loss on debt amendments and refinancing			—				—				1,484				246
Other cash distributions from equity investees (2)			4,786				2,402				21,041				17,321
Depreciation and amortization			64,971				58,052				193,656				174,545
Impairment of long-lived assets			1,641				5,026				5,020				9,600
Loss on disposal of assets and other			7,826				8,576				28,666				9,464
Deferred lease expenses - theatres (3)			216				(44	)			(252	)			(278	)
Deferred lease expenses - projectors (4)			(236	)			(253	)			(700	)			(741	)
Amortization of long-term prepaid rents (3)			578				551				1,814				1,540
Share based awards compensation expense (5)			3,486				3,043				10,364				9,487
Adjusted EBITDA		$	168,392			$	153,672			$	583,425			$	536,231

 

(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.