| SEGMENTS |
The Company
manages its international market and its U.S. market as separate
reportable operating segments. The international segment consists
of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador,
Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala and
Bolivia. The Company sold its theatres in Mexico on
November 15, 2013. Each segment’s revenue is derived
from admissions and concession sales and other ancillary revenues,
primarily screen advertising. The measure of segment profit and
loss the Company uses to evaluate performance and allocate its
resources is Adjusted EBITDA, as defined in the reconciliation
table below. The Company does not report asset information by
segment because that information is not used to evaluate the
performance or allocate resources between segments.
Below is a
breakdown of select financial information by reportable operating
segment:
|
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|
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|
|
|
|
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| |
|
Year Ended
December 31, |
|
| |
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
1,706,511 |
|
|
$ |
1,912,674 |
|
|
$ |
1,934,990 |
|
|
International
|
|
|
777,663 |
|
|
|
783,053 |
|
|
|
704,623 |
|
|
Eliminations
|
|
|
(10,643 |
) |
|
|
(12,833 |
) |
|
|
(12,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
$ |
2,473,531 |
|
|
$ |
2,682,894 |
|
|
$ |
2,626,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December
31, |
|
| |
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
Adjusted EBITDA
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
409,860 |
|
|
$ |
455,489 |
|
|
$ |
436,863 |
|
|
International
|
|
|
179,375 |
|
|
|
169,834 |
|
|
|
159,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA
|
|
$ |
589,235 |
|
|
$ |
625,323 |
|
|
$ |
596,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December
31, |
|
| |
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
107,323 |
|
|
$ |
117,488 |
|
|
$ |
148,532 |
|
|
International
|
|
|
113,404 |
|
|
|
142,182 |
|
|
|
96,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures
|
|
$ |
220,727 |
|
|
$ |
259,670 |
|
|
$ |
244,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Distributions from NCM are reported entirely within the U.S.
operating segment
|
The following
table sets forth a reconciliation of net income to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
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| |
|
Year Ended
December 31, |
|
| |
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
Net income
|
|
$ |
171,420 |
|
|
$ |
150,548 |
|
|
$ |
193,999 |
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
125,398 |
|
|
|
113,316 |
|
|
|
96,064 |
|
|
Interest expense
(1)
|
|
|
123,665 |
|
|
|
124,714 |
|
|
|
113,698 |
|
|
Loss on early retirement of
debt
|
|
|
5,599 |
|
|
|
72,302 |
|
|
|
— |
|
|
Other income
(2)
|
|
|
(21,568 |
) |
|
|
(24,688 |
) |
|
|
(22,150 |
) |
|
Depreciation and
amortization
|
|
|
147,675 |
|
|
|
163,970 |
|
|
|
175,656 |
|
|
Impairment of long-lived
assets
|
|
|
3,031 |
|
|
|
3,794 |
|
|
|
6,647 |
|
|
(Gain) loss on sale of
assets and other
|
|
|
12,168 |
|
|
|
(3,845 |
) |
|
|
15,715 |
|
|
Deferred lease
expenses
|
|
|
4,104 |
|
|
|
5,701 |
|
|
|
2,536 |
|
|
Amortization of long-term
prepaid rents
|
|
|
2,673 |
|
|
|
2,625 |
|
|
|
1,542 |
|
|
Share based awards
compensation expense
|
|
|
15,070 |
|
|
|
16,886 |
|
|
|
12,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$ |
589,235 |
|
|
$ |
625,323 |
|
|
$ |
596,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes amortization of debt issue costs.
|
| (2) |
Includes interest income, foreign currency exchange gain
(loss), and equity in income of affiliates and excludes
distributions from NCM.
|
Financial Information
About Geographic Area
Below is a
breakdown of select financial information by geographic
area:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended
December 31, |
|
| |
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
1,706,511 |
|
|
$ |
1,912,674 |
|
|
$ |
1,934,990 |
|
|
Brazil
|
|
|
328,136 |
|
|
|
325,762 |
|
|
|
333,919 |
|
|
Other foreign
countries
|
|
|
449,527 |
|
|
|
457,291 |
|
|
|
370,704 |
|
|
Eliminations
|
|
|
(10,643 |
) |
|
|
(12,833 |
) |
|
|
(12,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
2,473,531 |
|
|
$ |
2,682,894 |
|
|
$ |
2,626,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
December
31, |
|
| |
|
|
|
|
2013 |
|
|
2014 |
|
|
Theatres properties and
equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
$ |
1,062,471 |
|
|
$ |
1,094,076 |
|
|
Brazil
|
|
|
|
|
|
|
201,492 |
|
|
|
204,107 |
|
|
Other foreign
countries
|
|
|
|
|
|
|
163,227 |
|
|
|
152,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$ |
1,427,190 |
|
|
$ |
1,450,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|