Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.8.0.1
Segments
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segments

15.

Segments

The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments.

Below is a breakdown of selected financial information by reportable operating segment:

 

 

 

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

 

 

 

 

 

 

 

 

U.S.

 

$

155,844

 

 

$

164,654

 

International

 

 

37,586

 

 

 

47,226

 

Total Adjusted EBITDA

 

$

193,430

 

 

$

211,880

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

U.S.

 

$

69,971

 

 

$

78,817

 

International

 

 

10,192

 

 

 

12,370

 

Total capital expenditures

 

$

80,163

 

 

$

91,187

 

The following table sets forth a reconciliation of net income to Adjusted EBITDA:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

 

2017

 

Net income

 

$

62,177

 

 

$

80,194

 

Add (deduct):

 

 

 

 

 

 

 

 

Income taxes

 

 

25,097

 

 

 

44,400

 

Interest expense (1)

 

 

27,115

 

 

 

26,369

 

Other income (2)

 

 

(7,273

)

 

 

(12,982

)

Loss on debt amendments

 

 

1,484

 

 

 

-

 

Other cash distributions from equity investees (3)

 

 

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

 

 

(483

)

 

 

(347

)

Amortization of long-term prepaid rents

 

 

639

 

 

 

493

 

Share based awards compensation expense

 

 

3,426

 

 

 

3,241

 

Adjusted EBITDA (4)

 

$

193,430

 

 

$

211,880

 

 

 

(1)

Includes amortization of debt issue costs.

 

(2)

Includes interest income, foreign currency exchange gain, equity in income of affiliates and interest expense - NCM and excludes distributions from NCM.

 

(3)

Includes cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Notes 7 and 8).  These distributions are reported entirely within the U.S. operating segment.

 

(4)

The adoption of ASC Topic 606 impacted how the Company records certain revenues.  See Note 3 for discussion of the impact of ASC Topic 606.  

Financial Information About Geographic Areas

Below is a breakdown of selected financial information by geographic area:

 

 

 

Three Months Ended

 

 

 

March 31,

 

Revenues

 

2018

 

 

2017

 

U.S.

 

$

599,645

 

 

$

581,209

 

Brazil

 

 

80,136

 

 

 

94,699

 

Other international countries

 

 

103,492

 

 

 

107,369

 

Eliminations

 

 

(3,302

)

 

 

(3,667

)

Total

 

$

779,971

 

 

$

779,610

 

 

 

 

As of

 

 

As of

 

Theatre Properties and Equipment-net

 

March 31, 2018

 

 

December 31, 2017

 

U.S.

 

$

1,450,758

 

 

$

1,439,168

 

Brazil

 

 

174,341

 

 

 

179,669

 

Other international countries

 

 

210,553

 

 

 

209,217

 

Total

 

$

1,835,652

 

 

$

1,828,054