Cinemark Holdings, Inc. Reports Q2 2012 Adjusted EBITDA of $157.0 Million on Revenues of $649.6 Million

PLANO, Texas--()--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, 2012.

Cinemark Holdings, Inc.’s revenues for the three months ended June 30, 2012 were $649.6 million compared to $620.6 million for the three months ended June 30, 2011. For the three months ended June 30, 2012, admissions revenues were $418.1 million and concession revenues were $201.4 million.

Adjusted EBITDA for the three months ended June 30, 2012 was $157.0 million compared to $149.8 million for the three months ended June 30, 2011. 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, 2012 was approximately $51.6 million compared to $40.4 million for the three months ended June 30, 2011. Net income for the three months ended June 30, 2011 included a loss on early retirement of debt of approximately $4.9 million, before income taxes.

Cinemark Holdings, Inc.’s revenues for the six months ended June 30, 2012 increased to $1,228.4 million from $1,103.7 million for the six months ended June 30, 2011. During the six months ended June 30, 2012, admissions revenues were $791.9 million and concession revenues were $381.2 million.

Adjusted EBITDA for the six months ended June 30, 2012 was $297.3 million compared to $252.5 million for the six months ended June 30, 2011. 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, 2012 was $93.7 million compared to $65.4 million for the six months ended June 30, 2011. Net income for the six months ended June 30, 2011 included a loss on early retirement of debt of approximately $4.9 million, before income taxes.

On June 30, 2012, the Company’s aggregate screen count was 5,207. As of June 30, 2012, the Company had signed commitments to open 11 new theatres and 91 screens by the end of 2012 and open 16 new theatres with 167 screens subsequent to 2012.

Conference Call/Webcast – Today at 8:30 AM ET

Telephone: via (800) 374-1346 or (706) 679-3149 (for international callers).

Live Webcast: available live at investors.cinemark.com and archived for a limited time immediately following the call.

About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 461 theatres with 5,207 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of June 30, 2012. For more information go to investors.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 February 29, 2012 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,
  2012         2011         2012         2011  
Statement of income data:
Revenues
Admissions $ 418,073 $ 405,917 $ 791,866 $ 717,609
Concession 201,414 189,353 381,234 336,034
Other   30,119         25,323         55,324         50,086  
Total revenues 649,606 620,593 1,228,424 1,103,729
Cost of operations
Film rentals and advertising 227,301 222,620 422,716 387,773
Concession supplies 31,787 29,628 60,238 52,910
Facility lease expense 71,614 69,367 140,176 135,793
Other theatre operating expenses 131,923 123,605 256,924 233,511
General and administrative expenses 35,951 31,187 70,015 60,173
Depreciation and amortization 36,341 39,897 73,157 79,037
Impairment of long-lived assets 311 1,594 496 2,609
Loss on sale of assets and other   469         5,694         1,305         6,166  
Total cost of operations   535,697         523,592         1,025,027         957,972  
Operating income 113,909 97,001 203,397 145,757
Interest expense (1) (31,375 ) (29,777 ) (63,508 ) (59,067 )
Distributions from NCM 386 1,559 8,417 11,422
Loss on early retirement of debt

(4,945 )

(4,945 )
Other income   63         443         5,485         5,473  
Income before income taxes 82,983 64,281 153,791 98,640
Income taxes   30,844         23,272         58,776         32,309  
Net income $ 52,139 $ 41,009 $ 95,015 $ 66,331
Less: Net income attributable to noncontrolling interests   501         598         1,273         957  
Net income attributable to Cinemark Holdings, Inc. $ 51,638       $ 40,411       $ 93,742       $ 65,374  
Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
Basic $ 0.45       $ 0.35       $ 0.82       $ 0.57  
Diluted $ 0.45       $ 0.35       $ 0.82       $ 0.57  
 
Weighted average diluted shares outstanding   113,737         113,209         113,568         113,080  
 
Other financial data:
Adjusted EBITDA (2) $ 156,952       $ 149,791       $ 297,280       $ 252,497  

(1)

 

Includes amortization of debt issue costs.

(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,
2012 2011
Balance sheet data:
Cash and cash equivalents $ 524,282 $ 521,408
Theatre properties and equipment, net $ 1,242,695 $ 1,238,850
Total assets $ 3,542,360 $ 3,522,408
Long-term debt, including current portion $ 1,566,396 $ 1,572,221
Equity $ 1,058,136 $ 1,023,639
       
 
Three months ended Six months ended
June 30,     June 30,
2012     2011 2012     2011
Other operating data:
Attendance (patrons):
Domestic 42,013 43,915 81,843 77,304
International   26,782       22,245       48,500       42,627
Worldwide   68,795       66,160       130,343       119,931
 
Average ticket price (in dollars):
Domestic $ 6.84 $ 6.64 $ 6.77 $ 6.53
International $ 4.88 $ 5.16 $ 4.91 $ 4.99
Worldwide $ 6.08 $ 6.14 $ 6.08 $ 5.98
 
Concession revenues per patron (in dollars):
Domestic $ 3.38 $ 3.19 $ 3.34 $ 3.17
International $ 2.23 $ 2.23 $ 2.23 $ 2.14
Worldwide $ 2.93 $ 2.86 $ 2.93 $ 2.80
 
Average screen count (month end average):
Domestic 3,911 3,835 3,901 3,829
International   1,284       1,132       1,280       1,126
Worldwide   5,195       4,967       5,181       4,955
 
 
Segment Information

(unaudited, in thousands)

 
    Three months ended     Six months ended
June 30,     June 30,
  2012         2011     2012         2011  
Revenues
U.S. $ 443,765 $ 444,479 $ 854,990 $ 775,345
International 208,372 178,720 378,247 333,191
Eliminations   (2,531 )       (2,606 )       (4,813 )       (4,807 )
Total revenues $ 649,606       $ 620,593       $ 1,228,424       $ 1,103,729  
Adjusted EBITDA (1)
U.S. $ 103,391 $ 110,015 $ 207,684 $ 178,806
International   53,561         39,776         89,596         73,691  
Total Adjusted EBITDA $ 156,952       $ 149,791       $ 297,280       $ 252,497  
Capital expenditures
U.S. $ 27,109 $ 27,977 $ 46,803 $ 39,445
International   19,494         21,556         46,784         45,857  
Total capital expenditures $ 46,603       $ 49,533       $ 93,587       $ 85,302  
 
 
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
   
Three months ended     Six months ended
June 30,     June 30,
  2012         2011     2012         2011  
Net income $ 52,139 $ 41,009 $ 95,015 $ 66,331
Income taxes 30,844 23,272 58,776 32,309
Interest expense 31,375 29,777 63,508 59,067
Loss on early retirement of debt

4,945

4,945
Other income (63 ) (443 ) (5,485 ) (5,473 )
Depreciation and amortization 36,341 39,897 73,157 79,037
Impairment of long-lived assets 311 1,594 496 2,609
Loss on sale of assets and other 469 5,694 1,305 6,166

Deferred lease expenses – theatres (2)

197 243 317 539

Deferred lease expenses – DCIP equipment (3)

1,010 627 2,013 1,111
Amortization of long-term prepaid rents (2) 776 617 1,310 1,284
Share based awards compensation expense (4)   3,553         2,559         6,868         4,572  
Adjusted EBITDA (1) $ 156,952       $ 149,791       $ 297,280       $ 252,497  

(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, 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.

Contacts

Cinemark Holdings, Inc.
Robert Copple, 972-665-1500
investors@cinemark.com
or
Chanda Brashears, 972-665-1671
cbrashears@cinemark.com

Contacts

Cinemark Holdings, Inc.
Robert Copple, 972-665-1500
investors@cinemark.com
or
Chanda Brashears, 972-665-1671
cbrashears@cinemark.com