Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.8.0.1
Segments
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segments

14.

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,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

514,376

 

 

$

572,916

 

 

$

1,650,514

 

 

$

1,677,365

 

International

 

 

200,122

 

 

 

199,476

 

 

 

602,116

 

 

 

551,212

 

Eliminations

 

 

(3,750

)

 

 

(3,818

)

 

 

(11,077

)

 

 

(10,730

)

Total revenues

 

$

710,748

 

 

$

768,574

 

 

$

2,241,553

 

 

$

2,217,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

108,854

 

 

$

137,540

 

 

$

402,902

 

 

$

409,018

 

International

 

 

44,818

 

 

 

47,351

 

 

 

133,329

 

 

 

128,915

 

Total Adjusted EBITDA

 

$

153,672

 

 

$

184,891

 

 

$

536,231

 

 

$

537,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

65,612

 

 

$

75,839

 

 

$

221,604

 

 

$

175,218

 

International

 

 

14,318

 

 

 

22,984

 

 

 

41,126

 

 

 

55,128

 

Total capital expenditures

 

$

79,930

 

 

$

98,823

 

 

$

262,730

 

 

$

230,346

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income

 

$

38,540

 

 

$

66,126

 

 

$

170,544

 

 

$

179,540

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

24,630

 

 

 

40,926

 

 

 

98,475

 

 

 

106,002

 

Interest expense (1)

 

 

26,317

 

 

 

26,659

 

 

 

79,208

 

 

 

81,980

 

Other income (2)

 

 

(13,168

)

 

 

(14,540

)

 

 

(33,180

)

 

 

(32,510

)

Loss on debt amendments and refinancing

 

 

 

 

 

 

 

 

246

 

 

 

13,284

 

Other cash distributions from equity investees (3)

 

 

2,402

 

 

 

1,391

 

 

 

17,321

 

 

 

9,660

 

Depreciation and amortization

 

 

58,052

 

 

 

54,187

 

 

 

174,545

 

 

 

155,874

 

Impairment of long-lived assets

 

 

5,026

 

 

 

406

 

 

 

9,600

 

 

 

2,323

 

Loss on sale of assets and other

 

 

8,576

 

 

 

6,940

 

 

 

9,464

 

 

 

10,985

 

Deferred lease expenses

 

 

(297

)

 

 

(162

)

 

 

(1,019

)

 

 

(809

)

Amortization of long-term prepaid rents

 

 

551

 

 

 

371

 

 

 

1,540

 

 

 

1,357

 

Share based awards compensation expense

 

 

3,043

 

 

 

2,587

 

 

 

9,487

 

 

 

10,247

 

Adjusted EBITDA

 

$

153,672

 

 

$

184,891

 

 

$

536,231

 

 

$

537,933

 

 

 

(1)

Includes amortization of debt issue costs.

 

(2)

Includes interest income, foreign currency exchange gain and equity in income of affiliates 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 6 and 7).  These distributions are reported entirely within the U.S. operating segment.

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

 

2017

 

 

2016

 

 

2017

 

 

2016

 

U.S.

 

$

514,376

 

 

$

572,916

 

 

$

1,650,514

 

 

$

1,677,365

 

Brazil

 

 

81,545

 

 

 

85,051

 

 

 

264,085

 

 

 

231,556

 

Other international countries

 

 

118,577

 

 

 

114,425

 

 

 

338,031

 

 

 

319,656

 

Eliminations

 

 

(3,750

)

 

 

(3,818

)

 

 

(11,077

)

 

 

(10,730

)

Total

 

$

710,748

 

 

$

768,574

 

 

$

2,241,553

 

 

$

2,217,847

 

 

Theatre Properties and Equipment-net

 

September 30, 2017

 

 

December 31, 2016

 

U.S.

 

$

1,392,429

 

 

$

1,306,643

 

Brazil

 

 

194,171

 

 

 

197,896

 

Other international countries

 

 

205,006

 

 

 

199,997

 

Total

 

$

1,791,606

 

 

$

1,704,536