| 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 and Guatemala.
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, |
|
| |
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
1,593,667 |
|
|
$ |
1,706,511 |
|
|
$ |
1,912,674 |
|
|
International
|
|
|
696,119 |
|
|
|
777,663 |
|
|
|
783,053 |
|
|
Eliminations
|
|
|
(10,173 |
) |
|
|
(10,643 |
) |
|
|
(12,833 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
$ |
2,279,613 |
|
|
$ |
2,473,531 |
|
|
$ |
2,682,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December
31, |
|
| |
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
371,212 |
|
|
$ |
409,860 |
|
|
$ |
455,489 |
|
|
International
|
|
|
148,261 |
|
|
|
179,375 |
|
|
|
169,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA
|
|
$ |
519,473 |
|
|
$ |
589,235 |
|
|
$ |
625,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December
31, |
|
| |
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
79,510 |
|
|
$ |
107,323 |
|
|
$ |
117,488 |
|
|
International
|
|
|
105,309 |
|
|
|
113,404 |
|
|
|
142,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures
|
|
$ |
184,819 |
|
|
$ |
220,727 |
|
|
$ |
259,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
table sets forth a reconciliation of net income to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended
December 31, |
|
| |
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Net income
|
|
$ |
132,582 |
|
|
$ |
171,420 |
|
|
$ |
150,548 |
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
73,050 |
|
|
|
125,398 |
|
|
|
113,316 |
|
|
Interest expense
(1)
|
|
|
123,102 |
|
|
|
123,665 |
|
|
|
124,714 |
|
|
Loss on early retirement of
debt
|
|
|
4,945 |
|
|
|
5,599 |
|
|
|
72,302 |
|
|
Loss on marketable
securities — RealD
|
|
|
12,610 |
|
|
|
— |
|
|
|
— |
|
|
Other income
(2)
|
|
|
(13,594 |
) |
|
|
(21,568 |
) |
|
|
(24,688 |
) |
|
Depreciation and
amortization
|
|
|
154,449 |
|
|
|
147,675 |
|
|
|
163,970 |
|
|
Impairment of long-lived
assets
|
|
|
7,033 |
|
|
|
3,031 |
|
|
|
3,794 |
|
|
(Gain) loss on sale of
assets and other
|
|
|
8,792 |
|
|
|
12,168 |
|
|
|
(3,845 |
) |
|
Deferred lease
expenses
|
|
|
4,155 |
|
|
|
4,104 |
|
|
|
5,701 |
|
|
Amortization of long-term
prepaid rents
|
|
|
2,657 |
|
|
|
2,673 |
|
|
|
2,625 |
|
|
Share based awards
compensation expense
|
|
|
9,692 |
|
|
|
15,070 |
|
|
|
16,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$ |
519,473 |
|
|
$ |
589,235 |
|
|
$ |
625,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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. Distributions from NCM are reported
entirely within the U.S. operating segment.
|
Financial Information
About Geographic Areas
Below is a
breakdown of select financial information by geographic
area:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended
December 31, |
|
| |
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
1,593,667 |
|
|
$ |
1,706,511 |
|
|
$ |
1,912,674 |
|
|
Brazil
|
|
|
358,820 |
|
|
|
328,136 |
|
|
|
325,762 |
|
|
Other foreign
countries
|
|
|
337,299 |
|
|
|
449,527 |
|
|
|
457,291 |
|
|
Eliminations
|
|
|
(10,173 |
) |
|
|
(10,643 |
) |
|
|
(12,833 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
2,279,613 |
|
|
$ |
2,473,531 |
|
|
$ |
2,682,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December
31, |
|
| |
|
2012 |
|
|
2013 |
|
|
Theatres properties and
equipment, net
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ |
940,922 |
|
|
$ |
1,062,471 |
|
|
Brazil
|
|
|
190,990 |
|
|
|
201,492 |
|
|
Other foreign
countries
|
|
|
173,046 |
|
|
|
163,227 |
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
1,304,958 |
|
|
$ |
1,427,190 |
|
|
|
|
|
|
|
|
|
|
|