Exhibit 99.1

 

CINEMARK HOLDINGS, INC. REPORTS ALL-TIME-HIGH 4TH QUARTER REVENUES IN ADDITION TO

FOURTH CONSECUTIVE YEAR OF RECORD WORLDWIDE ANNUAL REVENUES OF $3.2 BILLION

Increases Dividend $0.08 to $1.36 per Annum Resulting in an Annual Yield of 3.7%

Plano, TX, February 22, 2019 – Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and twelve months ended December 31, 2018 and announced that its Board of Directors has increased its cash dividend by 6.25% to $1.36 per share of common stock on an annualized basis, effective immediately. The fourth quarter dividend of $0.34 will be paid on March 22, 2019 to stockholders of record on March 8, 2019.

Cinemark Holdings, Inc.’s total revenues for the three months ended December 31, 2018 increased 6.5% to $798.6 million compared to $750.0 million for the three months ended December 31, 2017. For the three months ended December 31, 2018, admissions revenues increased 0.4% to $445.1 million and concession revenues increased 6.3% to $277.6 million. For the three months ended December 31, 2018, attendance increased 2.1% to 67.4 million patrons, average ticket price was $6.60 and concession revenues per patron increased 4.0% to $4.12.

Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2018 was $19.4 million compared to $95.1 million for the three months ended December 31, 2017. Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2018 included a $17 million non-cash tax expense associated with recently issued tax guidance that modified the treatment of foreign tax credit utilization and resulted in an increased valuation allowance for the Company. Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2017 included a $45 million tax benefit driven by a reduction of net deferred income tax liabilities as a result of the 2017 tax reform legislation that went into effect during December 2017. Diluted earnings per share for the three months ended December 31, 2018 was $0.17 compared to $0.82 for the three months ended December 31, 2017.

Adjusted EBITDA for the three months ended December 31, 2018 increased 5.6% to $198.1 million compared to $187.5 million for the three months ended December 31, 2017. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“The resilience of the exhibition industry was again demonstrated in 2018 as the North American box office reached another record high of $11.9 billion, driven by sizeable year-over-year attendance growth associated with outstanding studio film content,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “And, through consistent execution of our strategic initiatives that focus on creating an extraordinary guest experience, Cinemark yet again outperformed industry results for the ninth time out of the past ten years with 7.7% domestic box office growth and a 6.3% increase in attendance.”    

Mr. Zoradi continued, “I am also pleased to report that, based on confidence in our industry, enthusiasm for the upcoming film slate and our Company’s consistent financial strength, our Board of Directors approved an $0.08 increase to Cinemark’s annual dividend. Inclusive of that increase, we have grown Cinemark’s dividend by 36% and distributed more than $640 million dollars in cash dividends to shareholders over the past five years, demonstrating our discipline in returning capital to shareholders while investing in strategic initiatives to position our Company for long-term success.”

Cinemark Holdings, Inc.’s total revenues for the twelve months ended December 31, 2018 increased 7.7% to $3,221.8 million compared to $2,991.6 million for the twelve months ended December 31, 2017. For the twelve months ended December 31, 2018, admissions revenues increased 2.2% to $1,834.2 million and concession revenues increased 6.7% to $1,108.8 million. For the twelve months ended December 31, 2018, attendance increased 1.8% to 282.1 million patrons, average ticket price increased to $6.50 and concession revenues per patron increased 4.8% to $3.93.

Net income attributable to Cinemark Holdings, Inc. for the twelve months ended December 31, 2018 was $213.8 million compared to $264.2 million for the twelve months ended December 31, 2017. Net income attributable to Cinemark Holdings, Inc. for the twelve months ended December 31, 2018 included $19 million of non-cash tax expense associated with true-ups to 2017’s provisional tax reform calculations, as well as recently issued tax guidance that modified the treatment of foreign tax credit utilization and resulted in an increased valuation allowance for the Company. Net income attributable to Cinemark Holdings, Inc. for the twelve months ended December 31, 2017 included a $45 million tax benefit driven by a reduction of net deferred income tax liabilities as a result of the 2017 tax reform legislation that went into effect during December 2017. Diluted earnings per share for the twelve months ended December 31, 2018 was $1.83 compared to $2.26 for the twelve months ended December 31, 2017.

Adjusted EBITDA for the twelve months ended December 31, 2018 increased 8.0% to $781.5 million compared to $723.8 million for the twelve months ended December 31, 2017. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of December 31, 2018, the Company’s aggregate screen count was 6,048 and the Company had commitments to open fourteen new theatres and 129 screens during 2019 and seven new theatres and 83 screens subsequent to 2019.

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 546 theatres with 6,048 screens in 41 U.S. states, Brazil, Argentina and 13 other Latin American countries as of December 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 December 31,								Twelve Months Ended December 31,
		2018				2017				2018				2017
Statement of income data:
Revenues
Admissions		$	445,063			$	443,505			$	1,834,173			$	1,794,982
Concession			277,550				261,215				1,108,793				1,038,788
Other			75,863				45,274				278,769				157,777
Total revenues			798,476				749,994				3,221,735				2,991,547
Cost of operations
Film rentals and advertising			241,513				240,907				999,755				966,510
Concession supplies			46,397				42,203				180,974				166,320
Salaries and wages			97,863				93,192				383,860				354,510
Facility lease expense			79,443				79,628				323,316				328,197
Utilities and other			110,204				83,290				448,070				355,041
General and administrative expenses			41,459				40,281				165,173				153,278
Depreciation and amortization			67,506				62,968				261,162				237,513
Impairment of long-lived assets			27,352				5,484				32,372				15,084
Loss on disposal of assets and other			10,036				13,348				38,702				22,812
Total cost of operations			721,773				661,301				2,833,384				2,599,265
Operating income			76,703				88,693				388,351				392,282
Interest expense			(27,269	)			(26,710	)			(109,994	)			(105,918	)
Loss on debt amendments and refinancing			—				(275	)			(1,484	)			(521	)
Interest income			2,753				1,854				10,614				6,249
Foreign currency exchange gain (loss)			(4,713	)			(1,125	)			(11,660	)			893
Distributions from NCM			3,221				4,703				15,389				16,407
Interest expense - NCM			(4,849	)			—				(19,724	)			—
Equity in income of affiliates			10,034				9,218				39,242				35,985
Income before income taxes			55,880				76,358				310,734				345,377
Income taxes			35,837				(19,117	)			95,429				79,358
Net income		$	20,043			$	95,475			$	215,305			$	266,019
Less: Net income attributable to noncontrolling interests			600				401				1,478				1,839
Net income attributable to Cinemark Holdings, Inc.		$	19,443			$	95,074			$	213,827			$	264,180
Earnings per share attributable to Cinemark Holdings, Inc.‘s common stockholders
Basic		$	0.17			$	0.82			$	1.83			$	2.26
Diluted		$	0.17			$	0.82			$	1.83			$	2.26
Diluted weighted average shares outstanding			116,383				116,076				116,342				116,059
Other Financial Data:
Adjusted EBITDA (a)		$	198,092			$	187,527			$	781,517			$	723,758

 

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Other Operating Data

(unaudited, in thousands)

 

		As of
		December 31,
		2018				2017
Balance sheet data (unaudited, in thousands):
Cash and cash equivalents		$	426,222			$	522,547
Theatre properties and equipment, net		$	1,833,133			$	1,828,054
Total assets		$	4,481,838			$	4,470,893
Long-term debt, including current portion, net of unamortized debt issue costs		$	1,780,611			$	1,787,480
Equity		$	1,456,117			$	1,405,688

Segment Information

(unaudited, in millions, except per patron data)

 

		U.S. Operating Segment												International Operating Segment																				Consolidated
		Three Months Ended December 31,												Three Months Ended December 31,												Constant Currency (1)								Three Months Ended December 31,
		2018				2017				% Change				2018				2017				% Change				2018				% Change				2018				2017				% Change
Admissions revenues		$	369.7			$	353.4				4.6	%		$	75.4			$	90.1				(16.3	)%		$	91.0				1.0	%		$	445.1			$	443.5				0.4	%
Concession revenues		$	231.1			$	207.9				11.2	%		$	46.5			$	53.3				(12.8	)%		$	55.1				3.4	%		$	277.6			$	261.2				6.3	%
Other revenues		$	50.5			$	21.3				137.1	%		$	25.4			$	24.0				5.8	%		$	32.6				35.8	%		$	75.9			$	45.3				67.5	%
Total revenues		$	651.3			$	582.6				11.8	%		$	147.3			$	167.4				(12.0	)%		$	178.7				6.8	%		$	798.6			$	750.0				6.5	%
Attendance			46.4				44.3				4.7	%			21.0				21.7				(3.2	)%											67.4				66.0				2.1	%
Average ticket price (2)		$	7.97			$	7.98				(0.1	)%		$	3.59			$	4.15				(13.5	)%		$	4.33				4.3	%		$	6.60			$	6.72				(1.8	)%
Concession revenues per patron (3)		$	4.98			$	4.69				6.2	%		$	2.21			$	2.46				(10.2	)%		$	2.62				6.5	%		$	4.12			$	3.96				4.0	%
Average screen count			4,581				4,562								1,450				1,397																6,031				5,959

 

		U.S. Operating Segment								International Operating Segment												Consolidated
		Three Months Ended								Three Months Ended												Three Months Ended
		December 31,								December 31,												December 31,
		2018				2017				2018				2017				Constant Currency (1) 2018				2018				2017
Film rentals and advertising		$	205.9			$	198.1			$	35.7			$	42.8			$	42.6			$	241.6			$	240.9
Concession supplies			36.5				30.7				9.9				11.5				11.7				46.4				42.2
Salaries and wages			79.4				71.3				18.5				21.9				23.4				97.9				93.2
Facility lease expense			62.0				59.9				17.4				19.7				20.4				79.4				79.6
Utilities and other			81.3				56.5				28.8				26.7				35.7				110.1				83.2

 

		U.S. Operating Segment												International Operating Segment																				Consolidated
		Twelve Months Ended December 31,												Twelve Months Ended December 31,												Constant Currency (1)								Twelve Months Ended December 31,
		2018				2017				% Change				2018				2017				% Change				2018				% Change				2018				2017				% Change
Admissions revenues		$	1,461.2			$	1,356.9				7.7	%		$	373.0			$	438.1				(14.9	)%		$	426.7				(2.6	)%		$	1,834.2			$	1,795.0				2.2	%
Concession revenues		$	892.4			$	790.1				12.9	%		$	216.4			$	248.7				(13.0	)%		$	243.8				(2.0	)%		$	1,108.8			$	1,038.8				6.7	%
Other revenues		$	185.4			$	75.1				146.9	%		$	93.4			$	82.7				12.9	%		$	111.7				35.1	%		$	278.8			$	157.8				76.7	%
Total revenues		$	2,539.0			$	2,222.1				14.3	%		$	682.8			$	769.5				(11.3	)%		$	782.2				1.7	%		$	3,221.8			$	2,991.6				7.7	%
Attendance			185.3				174.4				6.3	%			96.8				102.6				(5.7	)%											282.1				277.0				1.8	%
Average ticket price (2)		$	7.89			$	7.78				1.4	%		$	3.85			$	4.27				(9.8	)%		$	4.41				3.3	%		$	6.50			$	6.48				0.3	%
Concession revenues per patron (3)		$	4.82			$	4.53				6.4	%		$	2.24			$	2.42				(7.4	)%		$	2.52				4.1	%		$	3.93			$	3.75				4.8	%
Average screen count			4,570				4,551								1,427				1,374																5,997				5,925

 

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		U.S. Operating Segment Twelve Months Ended December 31,								International Operating Segment Twelve Months Ended December 31,												Consolidated Twelve Months Ended December 31,
		2018				2017				2018				2017				Constant Currency (1) 2018				2018				2017
Film rentals and advertising		$	822.6			$	756.4			$	177.2			$	210.1			$	202.6			$	999.8			$	966.5
Concession supplies			134.6				112.8				46.4				53.5				52.2				181.0				166.3
Salaries and wages			303.7				265.8				80.2				88.7				94.1				383.9				354.5
Facility lease expense			245.1				241.0				78.2				87.2				87.3				323.3				328.2
Utilities and other			327.0				241.6				121.0				113.4				140.6				448.0				355.0

 

(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.

(2)	Average ticket price is calculated as admissions revenues divided by attendance.

(3)	Concession revenues per patron is calculated as concession revenues divided by attendance.

Other Segment Information

(unaudited, in thousands)

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2018				2017				2018				2017
Revenues
U.S.		$	654,055			$	585,723			$	2,551,719			$	2,236,237
International			147,211				167,320				682,778				769,436
Eliminations			(2,790	)			(3,049	)			(12,762	)			(14,126	)
Total revenues		$	798,476			$	749,994			$	3,221,735			$	2,991,547
Adjusted EBITDA (a)
U.S.		$	171,669			$	155,280			$	648,576			$	558,182
International			26,423				32,247				132,941				165,576
Total Adjusted EBITDA		$	198,092			$	187,527			$	781,517			$	723,758
Capital expenditures
U.S.		$	75,766			$	99,436			$	270,870			$	321,040
International			24,345				18,696				75,203				59,822
Total capital expenditures		$	100,111			$	118,132			$	346,073			$	380,862

 

(a)

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.

 

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Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

 

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2018				2017				2018				2017
Net income		$	20,043			$	95,475			$	215,305			$	266,019
Add (deduct):
Income taxes			35,837				(19,117	)			95,429				79,358
Interest expense			27,269				26,710				109,994				105,918
Loss on debt amendments and refinancing			—				275				1,484				521
Other income			(3,225	)			(9,947	)			(18,472	)			(43,127	)
Other cash distributions from equity investees (1)			9,102				8,652				30,143				25,973
Depreciation and amortization			67,506				62,968				261,162				237,513
Impairment of long-lived assets			27,352				5,484				32,372				15,084
Loss on disposal of assets and other			10,036				13,348				38,702				22,812
Deferred lease expenses - theatres (2)			(135	)			(51	)			(387	)			(329	)
Deferred lease expenses - projectors (3)			(233	)			(198	)			(933	)			(939	)
Amortization of long-term prepaid rents (2)			568				734				2,382				2,274
Share based awards compensation expense (4)			3,972				3,194				14,336				12,681
Adjusted EBITDA		$	198,092			$	187,527			$	781,517			$	723,758

 

(1)	Represents cash distributions received from equity investees that were recorded as a reduction of the respective investment balances.

(2)	Non-cash expense included in facility lease expense.

(3)	Non-cash expense included in utilities and other.

(4)	Non-cash expense included in general and administrative expenses.

 

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