Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.10.0.1
Segments
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segments

15.

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, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments.

Below is a breakdown of selected financial information by reportable operating segment:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

585,536

 

 

$

514,376

 

 

$

1,897,664

 

 

$

1,650,514

 

International

 

 

171,960

 

 

 

200,122

 

 

 

535,567

 

 

 

602,116

 

Eliminations

 

 

(3,261

)

 

 

(3,750

)

 

 

(9,972

)

 

 

(11,077

)

Total revenues

 

$

754,235

 

 

$

710,748

 

 

$

2,423,259

 

 

$

2,241,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

132,652

 

 

$

108,854

 

 

$

476,907

 

 

$

402,902

 

International

 

 

35,740

 

 

 

44,818

 

 

 

106,518

 

 

 

133,329

 

Total Adjusted EBITDA

 

$

168,392

 

 

$

153,672

 

 

$

583,425

 

 

$

536,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

65,458

 

 

$

65,612

 

 

$

195,104

 

 

$

221,604

 

International

 

 

17,915

 

 

 

14,318

 

 

 

50,858

 

 

 

41,126

 

Total capital expenditures

 

$

83,373

 

 

$

79,930

 

 

$

245,962

 

 

$

262,730

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income

 

$

50,621

 

 

$

38,540

 

 

$

195,262

 

 

$

170,544

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

16,169

 

 

 

24,630

 

 

 

59,592

 

 

 

98,475

 

Interest expense (1)

 

 

27,144

 

 

 

26,317

 

 

 

82,725

 

 

 

79,208

 

Other income (2)

 

 

(8,810

)

 

 

(13,168

)

 

 

(15,247

)

 

 

(33,180

)

Loss on debt amendments and refinancing

 

 

 

 

 

 

 

 

1,484

 

 

 

246

 

Other cash distributions from equity investees (3)

 

 

4,786

 

 

 

2,402

 

 

 

21,041

 

 

 

17,321

 

Depreciation and amortization

 

 

64,971

 

 

 

58,052

 

 

 

193,656

 

 

 

174,545

 

Impairment of long-lived assets

 

 

1,641

 

 

 

5,026

 

 

 

5,020

 

 

 

9,600

 

Loss on disposal of assets and other

 

 

7,826

 

 

 

8,576

 

 

 

28,666

 

 

 

9,464

 

Deferred lease expenses

 

 

(20

)

 

 

(297

)

 

 

(952

)

 

 

(1,019

)

Amortization of long-term prepaid rents

 

 

578

 

 

 

551

 

 

 

1,814

 

 

 

1,540

 

Share based awards compensation expense

 

 

3,486

 

 

 

3,043

 

 

 

10,364

 

 

 

9,487

 

Adjusted EBITDA (4)

 

$

168,392

 

 

$

153,672

 

 

$

583,425

 

 

$

536,231

 

 

 

(1)

Includes amortization of debt issue costs.

 

(2)

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

 

(3)

Includes cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Notes 7 and 8).  These distributions are reported entirely within the U.S. operating segment.

 

(4)

The adoption of ASC Topic 606 impacted how the Company records certain revenues.  See Note 3 for discussion of the impact of ASC Topic 606.  

Financial Information About Geographic Areas

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

Revenues

 

2018

 

 

2017

 

 

2018

 

 

2017

 

U.S.

 

$

585,536

 

 

$

514,376

 

 

$

1,897,664

 

 

$

1,650,514

 

Brazil

 

 

65,152

 

 

 

81,545

 

 

 

218,265

 

 

 

264,085

 

Other international countries

 

 

106,808

 

 

 

118,577

 

 

 

317,302

 

 

 

338,031

 

Eliminations

 

 

(3,261

)

 

 

(3,750

)

 

 

(9,972

)

 

 

(11,077

)

Total

 

$

754,235

 

 

$

710,748

 

 

$

2,423,259

 

 

$

2,241,553

 

 

 

 

As of

 

 

As of

 

Theatre Properties and Equipment-net

 

September 30, 2018

 

 

December 31, 2017

 

U.S.

 

$

1,474,184

 

 

$

1,439,168

 

Brazil

 

 

139,927

 

 

 

179,669

 

Other international countries

 

 

206,376

 

 

 

209,217

 

Total

 

$

1,820,487

 

 

$

1,828,054