Annual report pursuant to Section 13 and 15(d)

SEGMENTS

v3.10.0.1
SEGMENTS
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
SEGMENTS

19.

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, because we believe it provides management and investors with additional information to measure the Company’s performance and liquidity, estimate the Company’s value and evaluate the Company’s ability to service debt. In addition, the Company uses Adjusted EBITDA for incentive compensation purposes.  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,

 

 

 

2016

 

 

2017

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,230,693

 

 

$

2,236,237

 

 

$

2,551,719

 

International

 

 

701,573

 

 

 

769,436

 

 

 

682,778

 

Eliminations

 

 

(13,501

)

 

 

(14,126

)

 

 

(12,762

)

Total revenues

 

$

2,918,765

 

 

$

2,991,547

 

 

$

3,221,735

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

548,413

 

 

$

558,182

 

 

$

648,576

 

International

 

 

157,690

 

 

 

165,576

 

 

 

132,941

 

Total Adjusted EBITDA

 

$

706,103

 

 

$

723,758

 

 

$

781,517

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

242,271

 

 

$

321,040

 

 

$

270,870

 

International

 

 

84,637

 

 

 

59,822

 

 

 

75,203

 

Total capital expenditures

 

$

326,908

 

 

$

380,862

 

 

$

346,073

 

 

 

(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,

 

 

 

2016

 

 

2017

 

 

2018

 

Net income

 

$

256,827

 

 

$

266,019

 

 

$

215,305

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

103,819

 

 

 

79,358

 

 

 

95,429

 

Interest expense (1)

 

 

108,313

 

 

 

105,918

 

 

 

109,994

 

Loss on debt amendments and refinancing

 

 

13,445

 

 

 

521

 

 

 

1,484

 

Other income (2)

 

 

(44,813

)

 

 

(43,127

)

 

 

(18,472

)

Other cash distributions from equity investees (3)

 

 

21,916

 

 

 

25,973

 

 

 

30,143

 

Depreciation and amortization

 

 

209,071

 

 

 

237,513

 

 

 

261,162

 

Impairment of long-lived assets

 

 

2,836

 

 

 

15,084

 

 

 

32,372

 

Loss on disposal of assets and other

 

 

20,459

 

 

 

22,812

 

 

 

38,702

 

Deferred lease expenses

 

 

(990

)

 

 

(1,268

)

 

 

(1,320

)

Amortization of long-term prepaid rents

 

 

1,826

 

 

 

2,274

 

 

 

2,382

 

Share based awards compensation expense

 

 

13,394

 

 

 

12,681

 

 

 

14,336

 

Adjusted EBITDA

 

$

706,103

 

 

$

723,758

 

 

$

781,517

 

 

 

(1)

Includes amortization of debt issue costs.

 

(2)

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

 

(3)

Includes distributions received from equity investees that were recorded as a reduction of the respective investment balances.  

 

Financial Information About Geographic Area

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

 

 

 

Year Ended December 31,

 

 

 

2016

 

 

2017

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,230,693

 

 

$

2,236,237

 

 

$

2,551,719

 

Brazil

 

 

304,407

 

 

 

341,485

 

 

 

283,009

 

Other international countries

 

 

397,166

 

 

 

427,951

 

 

 

399,769

 

Eliminations

 

 

(13,501

)

 

 

(14,126

)

 

 

(12,762

)

Total

 

$

2,918,765

 

 

$

2,991,547

 

 

$

3,221,735

 

 

 

 

December 31, 2017

 

 

December 31, 2018

 

Theatre Properties and Equipment-net

 

 

 

 

 

 

 

 

U.S.

 

$

1,439,168

 

 

$

1,479,603

 

Brazil

 

 

179,669

 

 

 

140,570

 

Other international countries

 

 

209,217

 

 

 

212,960

 

Total

 

$

1,828,054

 

 

$

1,833,133