Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.22.2.2
Segments
9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segments
16.
Segments - Holdings

The international market and U.S. market are managed 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 revenue. Holdings 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.

Holdings revenue, Adjusted EBITDA and capital expenditures by reportable operating segment

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

514.4

 

 

$

376.3

 

 

$

1,491.6

 

 

$

743.0

 

International

 

 

138.7

 

 

 

59.3

 

 

 

370.5

 

 

 

101.9

 

Eliminations

 

 

(2.7

)

 

 

(0.8

)

 

 

(7.1

)

 

 

(1.1

)

Total revenue

 

$

650.4

 

 

$

434.8

 

 

$

1,855.0

 

 

$

843.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

70.7

 

 

$

44.8

 

 

$

196.2

 

 

$

(31.7

)

International

 

 

28.8

 

 

 

(0.5

)

 

 

66.8

 

 

 

(27.8

)

Total Adjusted EBITDA

 

$

99.5

 

 

$

44.3

 

 

$

263.0

 

 

$

(59.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

20.2

 

 

$

22.4

 

 

$

50.7

 

 

$

47.5

 

International

 

 

4.5

 

 

 

2.0

 

 

 

14.6

 

 

 

9.7

 

Total capital expenditures

 

$

24.7

 

 

$

24.4

 

 

$

65.3

 

 

$

57.2

 

 

The following table sets forth a reconciliation of net loss to Adjusted EBITDA for Holdings:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

 

$

(23.9

)

 

$

(77.6

)

 

$

(169.2

)

 

$

(428.7

)

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

3.4

 

 

 

(8.9

)

 

 

6.3

 

 

 

(15.6

)

Interest expense (1)

 

 

38.4

 

 

 

38.0

 

 

 

114.6

 

 

 

111.6

 

Other expense, net (2)

 

 

4.5

 

 

 

12.5

 

 

 

19.2

 

 

 

35.3

 

Cash distributions from other equity investees (3)

 

 

 

 

 

 

 

 

1.5

 

 

 

0.2

 

Depreciation and amortization

 

 

58.3

 

 

 

67.2

 

 

 

181.0

 

 

 

202.3

 

Impairment of long-lived and other assets

 

 

15.2

 

 

 

7.5

 

 

 

107.5

 

 

 

7.5

 

Restructuring costs

 

 

 

 

 

(0.4

)

 

 

(0.2

)

 

 

(1.3

)

(Gain) loss on disposal of assets and other

 

 

1.2

 

 

 

1.1

 

 

 

(6.4

)

 

 

7.9

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

6.5

 

Non-cash rent expense

 

 

(2.8

)

 

 

(1.1

)

 

 

(7.5

)

 

 

(1.8

)

Share based awards compensation expense

 

 

5.2

 

 

 

6.0

 

 

 

16.2

 

 

 

16.6

 

Adjusted EBITDA

 

$

99.5

 

 

$

44.3

 

 

$

263.0

 

 

$

(59.5

)

(1)
Includes amortization of debt issuance costs and amortization of accumulated losses for amended swap agreements.
(2)
Includes interest income, foreign currency exchange (gain) loss and equity in loss of affiliates.
(3)
Reflects cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Note 9). These distributions are reported entirely within the U.S. operating segment.

Financial Information About Geographic Areas

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

Revenue

 

2022

 

 

2021

 

 

2022

 

 

2021

 

U.S.

 

$

514.4

 

 

$

376.3

 

 

$

1,491.6

 

 

$

743.0

 

Brazil

 

 

45.2

 

 

 

20.6

 

 

 

133.1

 

 

 

30.5

 

Other international countries

 

 

93.5

 

 

 

38.6

 

 

 

237.4

 

 

 

71.4

 

Eliminations

 

 

(2.7

)

 

 

(0.7

)

 

 

(7.1

)

 

 

(1.1

)

Total

 

$

650.4

 

 

$

434.8

 

 

$

1,855.0

 

 

$

843.8

 

 

 

 

As of

 

 

As of

 

Theatre Properties and Equipment, net

 

September 30, 2022

 

 

December 31, 2021

 

U.S.

 

$

1,105.4

 

 

$

1,208.7

 

Brazil

 

 

49.6

 

 

 

56.8

 

Other international countries

 

 

105.0

 

 

 

117.4

 

Total

 

$

1,260.0

 

 

$

1,382.9