Annual report pursuant to Section 13 and 15(d)

SEGMENTS

v2.4.0.6
SEGMENTS
12 Months Ended
Dec. 31, 2012
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,  
     2010     2011     2012  

Revenues:

      

U.S.

   $ 1,584,281      $ 1,593,667      $ 1,706,511   

International

     564,240        696,119        777,663   

Eliminations

     (7,377     (10,173     (10,643
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 2,141,144      $ 2,279,613      $ 2,473,531   
  

 

 

   

 

 

   

 

 

 

 

     Year Ended December 31,  
     2010      2011      2012  

Adjusted EBITDA:

        

U.S.

   $ 363,345       $ 371,212       $ 409,860   

International

     122,575         148,261         179,375   
  

 

 

    

 

 

    

 

 

 

Total Adjusted EBITDA

   $ 485,920       $ 519,473       $ 589,235   
  

 

 

    

 

 

    

 

 

 

 

     Year Ended December 31,  
     2011      2012  

Capital Expenditures:

     

U.S.

   $ 79,510       $ 107,323   

International

     105,309         113,404   
  

 

 

    

 

 

 

Total capital expenditures

   $ 184,819       $ 220,727   
  

 

 

    

 

 

 

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

 

     Year Ended December 31,  
     2010     2011     2012  

Net income

   $ 149,663      $ 132,582      $ 171,420   

Add (deduct):

      

Income taxes

     57,838        73,050        125,398   

Interest expense (1)

     112,444        123,102        123,665   

Loss on early retirement of debt

     3        4,945        5,599   

Loss on marketable securities — RealD

     —          12,610        —     

Other income (2)

     (3,721     (13,594     (21,568

Depreciation and amortization (3)

     143,508        154,449        147,675   

Impairment of long-lived assets

     12,538        7,033        3,031   

(Gain) loss on sale of assets and other

     (431     8,792        12,168   

Deferred lease expenses

     3,940        4,155        4,104   

Amortization of long-term prepaid rents

     1,786        2,657        2,673   

Share based awards compensation expense

     8,352        9,692        15,070   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 485,920      $ 519,473      $ 589,235   
  

 

 

   

 

 

   

 

 

 

 

(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,  
     2010     2011     2012  

Revenues

      

U.S.

   $ 1,584,281      $ 1,593,667      $ 1,706,511   

Brazil

     315,884        358,820        328,136   

Other foreign countries

     248,356        337,299        449,527   

Eliminations

     (7,377     (10,173     (10,643
  

 

 

   

 

 

   

 

 

 

Total

   $ 2,141,144      $ 2,279,613      $ 2,473,531   
  

 

 

   

 

 

   

 

 

 

 

     December 31,  
     2011      2012  

Theatres properties and equipment, net

     

U.S.

   $ 934,279       $ 940,922   

Brazil

     149,294         190,990   

Other foreign countries

     155,277         173,046   
  

 

 

    

 

 

 

Total

   $ 1,238,850       $ 1,304,958