Annual report pursuant to Section 13 and 15(d)

Segments

v2.4.0.6
Segments
12 Months Ended
Dec. 31, 2011
Segments [Abstract]  
SEGMENTS

23.    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, Mexico, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala. The U.S. segment includes U.S. and Canada operations. (Note that the Company’s only Canadian theatre was sold during November 2010). 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,  
    2009     2010     2011  

Revenues:

                       

U.S.

  $ 1,558,736     $ 1,584,281     $ 1,593,667  

International

    421,765       564,240       696,119  

Eliminations

    (4,001     (7,377     (10,173
   

 

 

   

 

 

   

 

 

 

Total revenues

  $ 1,976,500     $ 2,141,144     $ 2,279,613  
   

 

 

   

 

 

   

 

 

 

 

                         
    Year Ended December 31,  
    2009     2010     2011  

Adjusted EBITDA:

                       

U.S.

  $ 361,685     $ 363,345     $ 371,212  

International

    83,839       122,575       148,261  
   

 

 

   

 

 

   

 

 

 

Total Adjusted EBITDA

  $ 445,524     $ 485,920     $ 519,473  
   

 

 

   

 

 

   

 

 

 

 

                     
        Year Ended December 31,  
         2010     2011  

Capital Expenditures:

                   

U.S.

      $ 70,474     $ 79,510  

International

        85,628       105,309  
       

 

 

   

 

 

 

Total capital expenditures

      $ 156,102     $ 184,819  
       

 

 

   

 

 

 

 

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

 

                         
    Year Ended December 31,  
    2009     2010     2011  

Net income

  $ 100,756     $ 149,663     $ 132,582  

Add (deduct):

                       

Income taxes

    44,845       57,838       73,050  

Interest expense (1)

    102,505       112,444       123,102  

Loss on early retirement of debt

    27,878       3       4,945  

Loss on marketable securities — RealD

    —         —         12,610  

Other income (2)

    (4,688     (3,721     (13,594

Depreciation and amortization (3)

    149,515       143,508       154,449  

Impairment of long-lived assets

    11,858       12,538       7,033  

(Gain) loss on sale of assets and other

    3,202       (431     8,792  

Deferred lease expenses

    3,960       3,940       4,155  

Amortization of long-term prepaid rents

    1,389       1,786       2,657  

Share based awards compensation expense

    4,304       8,352       9,692  
   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 445,524     $ 485,920     $ 519,473  
   

 

 

   

 

 

   

 

 

 

 

(1) 

Includes amortization of debt issue costs.

(2) 

Includes interest income, foreign currency exchange gain (loss), and equity in income (loss) of affiliates and excludes distributions from NCM. Distributions from NCM are reported entirely within the U.S. operating segment.

(3) 

Includes amortization of favorable/unfavorable leases.

Financial Information About Geographic Areas

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

 

                         
    Year Ended December 31,  
    2009     2010     2011  

Revenues

                       

U.S.

  $ 1,558,736     $ 1,584,281     $ 1,593,667  

Brazil

    218,236       315,884       358,820  

Other foreign countries

    203,529       248,356       337,299  

Eliminations

    (4,001     (7,377     (10,173
   

 

 

   

 

 

   

 

 

 

Total

  $ 1,976,500     $ 2,141,144     $ 2,279,613  
   

 

 

   

 

 

   

 

 

 

 

                 
    December 31,  
     2010     2011  

Theatres properties and equipment, net

               

U.S.

  $ 972,358     $ 934,279  

Brazil

    129,361       149,294  

Other foreign countries

    113,727       155,277  
   

 

 

   

 

 

 

Total

  $ 1,215,446     $ 1,238,850