Annual report pursuant to Section 13 and 15(d)

SEGMENTS

v3.19.3.a.u2
SEGMENTS
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
SEGMENTS

20.

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 asset information by segment because that information is not used to evaluate Company performance or allocate resources between segments.

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

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,236,237

 

 

$

2,551,719

 

 

$

2,594,246

 

International

 

 

769,436

 

 

 

682,778

 

 

 

702,196

 

Eliminations

 

 

(14,126

)

 

 

(12,762

)

 

 

(13,343

)

Total revenues

 

$

2,991,547

 

 

$

3,221,735

 

 

$

3,283,099

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

558,182

 

 

$

648,576

 

 

$

615,161

 

International

 

 

165,576

 

 

 

132,941

 

 

 

129,884

 

Total Adjusted EBITDA

 

$

723,758

 

 

$

781,517

 

 

$

745,045

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

321,040

 

 

$

270,870

 

 

$

230,561

 

International

 

 

59,822

 

 

 

75,203

 

 

 

73,066

 

Total capital expenditures

 

$

380,862

 

 

$

346,073

 

 

$

303,627

 

 

 

(1)

Distributions from equity investees are reported entirely within the U.S. operating segment.

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

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

Net income

 

$

266,019

 

 

$

215,305

 

 

$

193,848

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

79,358

 

 

 

95,429

 

 

 

79,912

 

Interest expense (1)(2)

 

 

105,918

 

 

 

109,994

 

 

 

99,941

 

Loss on debt amendments and refinancing

 

 

521

 

 

 

1,484

 

 

 

 

Other income (3)

 

 

(43,127

)

 

 

(18,472

)

 

 

(22,441

)

Distributions from DCIP (4)

 

 

5,864

 

 

 

5,799

 

 

 

23,696

 

Other cash distributions from equity investees (5)

 

 

20,109

 

 

 

24,344

 

 

 

29,670

 

Depreciation and amortization (2)

 

 

237,513

 

 

 

261,162

 

 

 

261,155

 

Impairment of long-lived assets

 

 

15,084

 

 

 

32,372

 

 

 

57,001

 

Loss on disposal of assets and other

 

 

22,812

 

 

 

38,702

 

 

 

12,008

 

Non-cash rent expense (6)

 

 

 

 

 

 

 

 

(4,360

)

Deferred lease expenses (2)

 

 

(1,268

)

 

 

(1,320

)

 

 

 

Amortization of long-term prepaid rents (2)

 

 

2,274

 

 

 

2,382

 

 

 

 

Share based awards compensation expense

 

 

12,681

 

 

 

14,336

 

 

 

14,615

 

Adjusted EBITDA (2)

 

$

723,758

 

 

$

781,517

 

 

$

745,045

 

 

 

(1)

Includes amortization of debt issue costs.

 

(2)

Amounts for the year ended December 31, 2019 were impacted by the adoption of ASC Topic 842 and the resulting change in the classification of certain of the Company’s leases.  See Note 3 for further discussion.

 

(3)

Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM.

 

(4)

See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 8.  These distributions are reported entirely within the U.S. operating segment.

 

(5)

Includes cash distributions received from equity investees, other than those from DCIP noted above, 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.

 

(6)

The adoption of ASC Topic 842 impacted how the Company amortizes lease related assets and liabilities such as deferred lease expenses, favorable and unfavorable lease intangible assets, long-term prepaid rents and deferred lease incentives.  Beginning January 1, 2019, these items are amortized to facility lease expense for theatre operating leases and utilities and other for equipment operating leases.  See Note 3 for discussion of the impact of ASC Topic 842.

 

Financial Information About Geographic Area

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

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2018

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,236,237

 

 

$

2,551,719

 

 

$

2,594,246

 

Brazil

 

 

341,485

 

 

 

283,009

 

 

 

302,074

 

Other international countries

 

 

427,951

 

 

 

399,769

 

 

 

400,122

 

Eliminations

 

 

(14,126

)

 

 

(12,762

)

 

 

(13,343

)

Total

 

$

2,991,547

 

 

$

3,221,735

 

 

$

3,283,099

 

 

 

 

December 31, 2018

 

 

December 31, 2019

 

Theatre Properties and Equipment-net

 

 

 

 

 

 

 

 

U.S.

 

$

1,479,603

 

 

$

1,436,275

 

Brazil

 

 

140,570

 

 

 

118,367

 

Other international countries

 

 

212,960

 

 

 

180,605

 

Total

 

$

1,833,133

 

 

$

1,735,247