Annual report pursuant to Section 13 and 15(d)

SEGMENTS

v3.3.1.900
SEGMENTS
12 Months Ended
Dec. 31, 2015
SEGMENTS
20. 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, Bolivia and Curacao. 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:

 

     Year Ended December 31,  
     2013      2014      2015  

Revenues:

        

U.S.

   $ 1,912,674       $ 1,934,990       $ 2,137,733   

International

     783,053         704,623         728,735   

Eliminations

     (12,833      (12,623      (13,859
  

 

 

    

 

 

    

 

 

 

Total revenues

   $ 2,682,894       $ 2,626,990       $ 2,852,609   
  

 

 

    

 

 

    

 

 

 
     Year Ended December 31,  
     2013      2014      2015  

Adjusted EBITDA (1):

        

U.S.

   $ 455,489       $ 436,863       $ 497,339   

International

     169,834         159,662         166,416   
  

 

 

    

 

 

    

 

 

 

Total Adjusted EBITDA

   $ 625,323       $ 596,525       $ 663,755   
  

 

 

    

 

 

    

 

 

 
     Year Ended December 31,  
     2013      2014      2015  

Capital expenditures:

        

U.S.

   $ 117,488       $ 148,532       $ 223,213   

International

     142,182         96,173         108,513   
  

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 259,670       $ 244,705       $ 331,726   
  

 

 

    

 

 

    

 

 

 

 

(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:

 

     Year Ended December 31,  
     2013     2014     2015  

Net income

   $ 150,548      $ 193,999      $ 218,728   

Add (deduct):

      

Income taxes

     113,316        96,064        128,939   

Interest expense (1)

     124,714        113,698        112,741   

Loss on early retirement of debt

     72,302        —          —     

Loss on amendment to debt agreement

     —          —          925   

Other income (2)

     (24,688     (22,150     (20,041

Depreciation and amortization

     163,970        175,656        189,206   

Impairment of long-lived assets

     3,794        6,647        8,801   

(Gain) loss on sale of assets and other

     (3,845     15,715        8,143   

Deferred lease expenses

     5,701        2,536        (1,806

Amortization of long-term prepaid rents

     2,625        1,542        2,361   

Share based awards compensation expense

     16,886        12,818        15,758   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 625,323      $ 596,525      $ 663,755   
  

 

 

   

 

 

   

 

 

 

 

(1) 

Includes amortization of debt issue costs.

(2) 

Includes interest income, foreign currency exchange 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,  
     2013      2014      2015  

Revenues

        

U.S.

   $ 1,912,674       $ 1,934,990       $ 2,137,733   

Brazil

     325,762         333,919         291,959   

Other foreign countries

     457,291         370,704         436,776   

Eliminations

     (12,833      (12,623      (13,859
  

 

 

    

 

 

    

 

 

 

Total

   $ 2,682,894       $ 2,626,990       $ 2,852,609   
  

 

 

    

 

 

    

 

 

 
            December 31,  
            2014      2015  

Theatres properties and equipment, net

        

U.S.

      $ 1,094,076       $ 1,175,535   

Brazil

        204,107         163,505   

Other foreign countries

        152,629         166,029   
     

 

 

    

 

 

 

Total

      $ 1,450,812       $ 1,505,069