Exhibit 99.1

 

LOGO

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.