Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.20.2
Segments
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segments

17.

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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

34,639

 

 

$

636,628

 

 

$

472,096

 

 

$

1,941,545

 

International

 

 

1,069

 

 

 

188,772

 

 

 

118,061

 

 

 

563,509

 

Eliminations

 

 

(230

)

 

 

(3,583

)

 

 

(2,089

)

 

 

(10,758

)

Total revenues

 

$

35,478

 

 

$

821,817

 

 

$

588,068

 

 

$

2,494,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

(105,767

)

 

$

132,347

 

 

$

(145,947

)

 

$

453,404

 

International

 

 

(22,232

)

 

 

37,411

 

 

 

(33,459

)

 

 

113,346

 

Total Adjusted EBITDA

 

$

(127,999

)

 

$

169,758

 

 

$

(179,406

)

 

$

566,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

17,903

 

 

$

50,679

 

 

$

54,604

 

 

$

148,609

 

International

 

 

2,756

 

 

 

20,664

 

 

 

13,014

 

 

 

37,903

 

Total capital expenditures

 

$

20,659

 

 

$

71,343

 

 

$

67,618

 

 

$

186,512

 

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income (loss)

 

$

(148,036

)

 

$

31,955

 

 

$

(378,274

)

 

$

167,009

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

(121,145

)

 

 

14,053

 

 

 

(222,398

)

 

 

64,152

 

Interest expense (1)

 

 

36,577

 

 

 

24,967

 

 

 

92,284

 

 

 

75,037

 

Other (income) expense, net (2)

 

 

22,881

 

 

 

(9,970

)

 

 

47,385

 

 

 

(25,079

)

Cash distributions from DCIP (3)

 

 

 

 

 

2,694

 

 

 

10,383

 

 

 

7,912

 

Cash distributions from other equity investees (4)

 

 

2,146

 

 

 

5,804

 

 

 

15,047

 

 

 

20,251

 

Depreciation and amortization

 

 

62,543

 

 

 

67,760

 

 

 

191,380

 

 

 

196,795

 

Impairment of long-lived assets

 

 

24,595

 

 

 

27,304

 

 

 

41,214

 

 

 

45,382

 

Restructuring costs

 

 

524

 

 

 

 

 

 

20,062

 

 

 

 

(Gain) loss on disposal of assets and other

 

 

(13,327

)

 

 

2,453

 

 

 

(10,997

)

 

 

8,057

 

Non-cash rent expense

 

 

816

 

 

 

(1,102

)

 

 

1,649

 

 

 

(3,252

)

Share based awards compensation expense

 

 

4,427

 

 

 

3,840

 

 

 

12,859

 

 

 

10,486

 

Adjusted EBITDA

 

$

(127,999

)

 

$

169,758

 

 

$

(179,406

)

 

$

566,750

 

 

 

(1)

Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements.

 

(2)

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

 

(3)

See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 10. These distributions are reported entirely within the U.S. operating segment.

 

(4)

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 9 and 10).  These distributions are reported entirely within the U.S. operating segment.

Financial Information About Geographic Areas

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

Revenues

 

2020

 

 

2019

 

 

2020

 

 

2019

 

U.S.

 

$

34,639

 

 

$

636,628

 

 

$

472,096

 

 

$

1,941,545

 

Brazil

 

 

513

 

 

 

79,776

 

 

 

53,829

 

 

 

240,263

 

Other international countries

 

 

556

 

 

 

108,996

 

 

 

64,232

 

 

 

323,246

 

Eliminations

 

 

(230

)

 

 

(3,583

)

 

 

(2,089

)

 

 

(10,758

)

Total

 

$

35,478

 

 

$

821,817

 

 

$

588,068

 

 

$

2,494,296

 

 

 

 

As of

 

 

As of

 

Theatre Properties and Equipment-net

 

September 30, 2020

 

 

December 31, 2019

 

U.S.

 

$

1,324,924

 

 

$

1,436,275

 

Brazil

 

 

71,338

 

 

 

118,367

 

Other international countries

 

 

149,561

 

 

 

180,605

 

Total

 

$

1,545,823

 

 

$

1,735,247