Aug. 5, 2010 (Business Wire) -- Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and six months ended June 30, 2010.
Cinemark Holdings, Inc.’s revenues for the three months ended June 30, 2010 increased 4.2% to $539.4 million from $517.5 million for the three months ended June 30, 2009. For the three months ended June 30, 2010, admissions revenues increased 4.1% to $353.1 million and concession revenues increased 4.0% to $165.2 million. The increases were primarily related to a 5.8% increase in average ticket price and a 5.4% increase in concession revenues per patron, partially offset by a 1.5% decline in attendance.
Adjusted EBITDA for the three months ended June 30, 2010 increased 3.6% to $125.1 million from $120.8 million for the three months ended June 30, 2009. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Net income attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2010 increased 112.3% to $39.7 million compared to $18.7 million for the three months ended June 30, 2009. Net income for the three months ended June 30, 2009 included a loss on early retirement of debt of approximately $26.8 million, before income taxes.
“We again achieved strong, industry-leading results. This is the seventh straight quarter that our domestic box office performance has exceeded industry performance. In addition, our international circuit continued to be an important factor in driving our worldwide revenue and Adjusted EBITDA growth," stated Cinemark Chief Executive Officer Alan Stock. "The Company's digital cinema rollout is well underway with Barco projectors and RealD 3D systems being installed to expand our 3D footprint. In response to increasing customer demand and an expanding 3D slate, we now expect to install 3D systems in approximately 40-50% of our worldwide screens. Once this installation process is completed we will begin converting all of our remaining screens to digital. We are excited by the performance of Cinemark's XD Extreme Digital Cinema auditoriums, and are actively expanding that footprint both domestically and internationally.”
Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2010 increased 11.9% to $1,056.0 million from $943.3 million for the six months ended June 30, 2009. During the six months ended June 30, 2010, admissions revenues increased 12.5% to $696.1 million and concession revenues increased 10.2% to $318.3 million. The increases were primarily related to a 3.0% increase in attendance, a 9.1% increase in average ticket price and a 6.8% increase in concession revenues per patron.
Adjusted EBITDA for the six months ended June 30, 2010 increased 12.8% to $246.9 million from $218.8 million for the six months ended June 30, 2009. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Net income attributable to Cinemark Holdings, Inc. for the six months ended June 30, 2010 increased 106.6% to $74.8 million compared to $36.2 million for the six months ended June 30, 2009. Net income for the six months ended June 30, 2009 included a loss on early retirement of debt of approximately $26.8 million, before income taxes.
On June 30, 2010, the Company’s aggregate screen count was 4,907. As of June 30, 2010, the Company had signed commitments to open 10 new theatres with 97 screens by the end of 2010 and open 12 new theatres with 126 screens subsequent to 2010.
| Conference Call/Webcast – Today at 8:30 AM ET |
| Telephone: via 800/374-1346 or 706/679-3149 (for international callers). |
Live Webcast/Replay: available live at www.cinemark.com in the Investor Relations section and archived for a limited time immediately following the call.
Call Replay: until August 8, 2010 via 800/642-1687 or 706/645-9291, passcode: 91767430.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 425 theatres with 4,907 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of June 30, 2010. For more information go to www.cinemark.com.
Forward-looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to future revenues, expenses and profitability, the future development and expected growth of our business, projected capital expenditures, attendance at movies generally or in any of the markets in which we operate, the number or diversity of popular movies released and our ability to successfully license and exhibit popular films, national and international growth in our industry, competition from other exhibitors and alternative forms of entertainment and determinations in lawsuits in which we are defendants. You can identify forward-looking statements by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In evaluating forward-looking statements, you should carefully consider the risks and uncertainties described in the “Risk Factors” section or other sections in the Company’s Annual Report on Form 10-K filed March 10, 2010 and quarterly reports on Form 10-Q. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| Cinemark Holdings, Inc. | ||||||||||
| Financial and Operating Summary | ||||||||||
| (unaudited, in thousands) | ||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Statement of income data: | ||||||||||
| Revenues | ||||||||||
| Admissions | $ 353,085 | $ 339,088 | $ 696,075 | $ 618,971 | ||||||
| Concession | 165,230 | 158,926 | 318,334 | 288,957 | ||||||
| Other | 21,054 | 19,494 | 41,591 | 35,380 | ||||||
| Total revenues | 539,369 | 517,508 | 1,056,000 | 943,308 | ||||||
| Cost of operations | ||||||||||
| Film rentals and advertising | 193,550 | 190,826 | 382,369 | 337,952 | ||||||
| Concession supplies | 24,494 | 24,027 | 46,900 | 43,744 | ||||||
| Facility lease expense | 61,990 | 59,195 | 124,705 | 114,933 | ||||||
| Other theatre operating expenses | 113,898 | 106,238 | 221,661 | 199,316 | ||||||
| General and administrative expenses | 24,946 | 23,675 | 50,476 | 45,463 | ||||||
| Depreciation and amortization | 34,915 | 37,881 | 69,006 | 74,337 | ||||||
| Impairment of long-lived assets | 4,688 | 3,930 | 5,035 | 4,969 | ||||||
| Loss on sale of assets and other | 1,191 | 1,186 | 4,358 | 1,458 | ||||||
| Total cost of operations | 459,672 | 446,958 | 904,510 | 822,172 | ||||||
| Operating income | 79,697 | 70,550 | 151,490 | 121,136 | ||||||
| Interest expense (1) | (28,605) | (25,649) | (54,615) | (51,113) | ||||||
| Distributions from NCM | 1,332 | 5,027 | 11,278 | 11,606 | ||||||
| Loss on early retirement of debt | - | (26,795) | - | (26,795) | ||||||
| Other income (expense) | (1,454) | 994 | (642) | 2,287 | ||||||
| Income before income taxes | 50,970 | 24,127 | 107,511 | 57,121 | ||||||
| Income taxes | 10,211 | 4,320 | 30,041 | 18,963 | ||||||
| Net income | $ 40,759 | $ 19,807 | $ 77,470 | $ 38,158 | ||||||
| Less: Net income attributable to noncontrolling interests | 1,077 | 1,137 | 2,695 | 1,923 | ||||||
| Net income attributable to Cinemark Holdings, Inc. | $ 39,682 | $ 18,670 | $ 74,775 | $ 36,235 | ||||||
| Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders: | ||||||||||
| Basic | $ 0.35 | $ 0.17 | $ 0.67 | $ 0.33 | ||||||
| Diluted | $ 0.35 | $ 0.17 | $ 0.67 | $ 0.33 | ||||||
| Weighted average diluted shares outstanding | 111,552 | 110,266 | 111,299 | 109,922 | ||||||
| Other financial data: | ||||||||||
| Adjusted EBITDA (2) | $ 125,116 | $ 120,792 | $ 246,897 | $ 218,780 | ||||||
| (1) Includes amortization of debt issue costs and excludes capitalized interest. (2) Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net income is provided in the financial schedules accompanying this press release. | ||||||||||
| As of | As of | |||||||||
| June 30, | December 31, | |||||||||
| 2010 | 2009 | |||||||||
| Balance sheet data: | ||||||||||
| Cash and cash equivalents | $ 435,770 | $ 437,936 | ||||||||
| Theatre properties and equipment, net | 1,184,254 | 1,219,588 | ||||||||
| Total assets | 3,305,151 | 3,276,448 | ||||||||
| Long-term debt, including current portion | 1,537,917 | 1,543,705 | ||||||||
| Equity | 959,934 | 914,628 | ||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Other operating data: | ||||||||||
| Attendance (patrons): | ||||||||||
| Domestic | 41,658 | 43,922 | 81,231 | 81,190 | ||||||
| International | 18,526 | 17,198 | 37,460 | 34,053 | ||||||
| Worldwide | 60,184 | 61,120 | 118,691 | 115,243 | ||||||
| Average ticket price (in dollars): | ||||||||||
| Domestic | $ 6.47 | $ 6.29 | $ 6.51 | $ 6.18 | ||||||
| International | $ 4.51 | $ 3.66 | $ 4.47 | $ 3.45 | ||||||
| Worldwide | $ 5.87 | $ 5.55 | $ 5.86 | $ 5.37 | ||||||
| Concession revenues per patron (in dollars): | ||||||||||
| Domestic | $ 3.12 | $ 2.99 | $ 3.06 | $ 2.92 | ||||||
| International | $ 1.91 | $ 1.61 | $ 1.87 | $ 1.52 | ||||||
| Worldwide | $ 2.74 | $ 2.60 | $ 2.68 | $ 2.51 | ||||||
| Average screen count (month end average): | ||||||||||
| Domestic | 3,827 | 3,825 | 3,827 | 3,789 | ||||||
| International | 1,070 | 1,037 | 1,068 | 1,037 | ||||||
| Worldwide | 4,897 | 4,862 | 4,895 | 4,826 | ||||||
| Segment Information | ||||||||||
| (unaudited, in thousands) | ||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Revenues | ||||||||||
| U.S. | $ 410,964 | $ 419,575 | $ 799,579 | $ 761,019 | ||||||
| International | 129,641 | 98,962 | 258,912 | 184,158 | ||||||
| Eliminations | (1,236) | (1,029) | (2,491) | (1,869) | ||||||
| Total revenues | $ 539,369 | $ 517,508 | $ 1,056,000 | $ 943,308 | ||||||
| Adjusted EBITDA (1) | ||||||||||
| U.S. | $ 96,548 | $ 100,576 | $ 185,953 | $ 182,295 | ||||||
| International | 28,568 | 20,216 | 60,944 | 36,485 | ||||||
| Total adjusted EBITDA | $ 125,116 | $ 120,792 | $ 246,897 | $ 218,780 | ||||||
| Capital expenditures | ||||||||||
| U.S. | $ 23,508 | $ 27,171 | $ 36,008 | $ 43,422 | ||||||
| International | 13,935 | 10,875 | 20,952 | 17,496 | ||||||
| Total capital expenditures | $ 37,443 | $ 38,046 | $ 56,960 | $ 60,918 | ||||||
| Reconciliation of Adjusted EBITDA | ||||||||||
| (unaudited, in thousands) | ||||||||||
| Three months ended | Six months ended | |||||||||
| June 30, | June 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Net income | $ 40,759 | $ 19,807 | $ 77,470 | $ 38,158 | ||||||
| Income taxes | 10,211 | 4,320 | 30,041 | 18,963 | ||||||
| Interest expense | 28,605 | 25,649 | 54,615 | 51,113 | ||||||
| Loss on early retirement of debt | ─ | 26,795 | ─ | 26,795 | ||||||
| Other (income) expense | 1,454 | (994) | 642 | (2,287) | ||||||
| Depreciation and amortization | 34,915 | 37,881 | 69,006 | 74,337 | ||||||
| Impairment of long-lived assets | 4,688 | 3,930 | 5,035 | 4,969 | ||||||
| Loss on sale of assets and other | 1,191 | 1,186 | 4,358 | 1,458 | ||||||
| Deferred lease expenses - theatres (2) | 801 | 1,034 | 1,551 | 2,121 | ||||||
| Deferred lease expenses – DCIP equipment (3) | 113 | ─ | 146 | ─ | ||||||
| Amortization of long-term prepaid rents (2) | 438 | 360 | 779 | 750 | ||||||
| Share based awards compensation expense (4) | 1,941 | 824 | 3,254 | 2,403 | ||||||
| Adjusted EBITDA (1) | $ 125,116 | $ 120,792 | $ 246,897 | $ 218,780 | ||||||
| (1) | Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, other (income) expense, depreciation and amortization, impairment of long-lived assets, loss on sale of assets and other, changes in deferred lease expense, amortization of long-term prepaid rents and share based awards compensation expense. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. In addition, we use Adjusted EBITDA for incentive compensation purposes. | |
| (2) | Non-cash expense included in facility lease expense. | |
| (3) | Non-cash expense included in other theatre operating expenses. | |
| (4) | Non-cash expense included in general and administrative expenses. |
