Cinemark Holdings, Inc. Reports a 14.1% Increase in Revenues to $611.5 Million for Q4 2012
PLANO, Texas--(BUSINESS WIRE)--
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture
exhibitors in the world, today reported results for the three months and
year ended December 31, 2012.
Cinemark Holdings, Inc.’s revenues for the three months ended December
31, 2012 increased 14.1% to $611.5 million compared to $535.9 million
for the three months ended December 31, 2011. For the three months ended
December 31, 2012, admissions revenues increased 14.6% and concession
revenues increased 14.5% due to a 9.6% increase in attendance, a 4.5%
increase in average ticket price, and a 4.2% increase in concession
revenues per patron.
Adjusted EBITDA for the three months ended December 31, 2012 increased
27.4% to $143.6 million from $112.7 million for the three months ended
December 31, 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 December 31, 2012 was $27.8 million compared to $18.3 million for
the three months ended December 31, 2011. Diluted earnings per share for
the three months ended December 31, 2012 was $0.24 compared to $0.16 for
the three months ended December 31, 2011. Net income attributable to
Cinemark Holdings, Inc. for the three months ended December 31, 2012
included a pre-tax loss on early retirement of debt of $5.6 million.
“It was an incredible year for the industry, as 2012 set a new record
with an estimated $10.8 billion in domestic box office revenues,
representing an increase of approximately 6.1% compared to 2011,” stated
Tim Warner, Cinemark’s Chief Executive Officer. “Cinemark’s worldwide
attendance set a company record of 263.7 million patrons. We also
reached a milestone in Latin America, surpassing 100 million patrons.
Cinemark continues to be the number one attended worldwide exhibitor.”
Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2012
increased 8.5% to $2,473.5 million from $2,279.6 million for the year
ended December 31, 2011. For the year ended December 31, 2012,
admissions revenues increased 7.4% and concession revenues increased
10.7%, primarily due to a 6.6% increase in attendance and a 3.9%
increase in concession revenues per patron.
Adjusted EBITDA for the year ended December 31, 2012 increased 13.4% to
$589.2 million from $519.5 million for the year ended December 31, 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 year ended December 31,
2012 increased to $168.9 million from $130.6 million for the year ended
December 31, 2011. Diluted earnings per share for the year ended
December 31, 2012 was $1.47 compared to $1.14 for the year ended
December 31, 2011. Net income attributable to Cinemark Holdings, Inc.
for the year ended December 31, 2012 included a pre-tax loss on early
retirement of debt of $5.6 million.
As of December 31, 2012, the Company’s aggregate screen count was 5,240
and the Company had commitments to open 22 new theatres and 199 screens
during 2013 and 8 additional new theatres with 88 screens subsequent to
2013.
Conference Call/Webcast – Today at 4:30 PM ET
Telephone: via 800-374-1346 or 706-679-3149 (for international
callers).
Live Webcast/Replay: Available live at investors.cinemark.com.
A replay will be available following the call and archived for a limited
time.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture
exhibitor, operating 465 theatres with 5,240 screens in 39 U.S. states,
Brazil, Mexico, Argentina and 10 other Latin American countries as of
December 31, 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 28, 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, except per share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2012
2011
2012
2011
Statement of Income Data:
Revenues
Admissions
$
386,095
$
336,930
$
1,580,401
$
1,471,627
Concession
190,059
165,926
771,405
696,754
Other
35,380
33,015
121,725
111,232
Total revenues
$
611,534
$
535,871
$
2,473,531
$
2,279,613
Cost of operations
Film rentals and advertising
208,389
185,402
845,107
798,606
Concession supplies
30,309
27,046
123,471
112,122
Facility lease expense
68,556
68,167
281,615
276,278
Other theatre operating expenses
133,171
119,874
528,138
486,178
General and administrative expenses
41,613
34,796
148,624
127,621
Depreciation and amortization
37,621
34,870
147,675
154,449
Impairment of long-lived assets
1,559
3,432
3,031
7,033
Loss on sale of assets and other
4,164
817
12,168
8,792
Total cost of operations
525,382
474,404
2,089,829
1,971,079
Operating income
86,152
61,467
383,702
308,534
Interest expense (1)
(29,296
)
(31,786
)
(123,665
)
(123,102
)
Loss on early retirement of debt
(5,599
)
–
(5,599
)
(4,945
)
Distributions from NCM
7,722
7,631
20,812
24,161
Loss on marketable securities - RealD
–
(12,610
)
–
(12,610
)
Other income
6,628
5,305
21,568
13,594
Income before income taxes
65,607
30,007
296,818
205,632
Income taxes
37,169
11,404
125,398
73,050
Net income
$
28,438
$
18,603
$
171,420
$
132,582
Less: Net income attributable to noncontrolling interests
616
340
2,471
2,025
Net income attributable to Cinemark Holdings, Inc.
$
27,822
$
18,263
$
168,949
$
130,557
Earnings per share attributable to Cinemark Holdings, Inc.’s common
stockholders:
Basic
$
0.24
$
0.16
$
1.47
$
1.15
Diluted
$
0.24
$
0.16
$
1.47
$
1.14
Weighted average diluted shares outstanding
113,958
113,339
113,824
113,224
Other Financial Data:
Adjusted EBITDA (2)
$
143,585
$
112,703
$
589,235
$
519,473
(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
December 31,
2012
2011
Balance Sheet Data (unaudited, in thousands):
Cash and cash equivalents
$
742,664
$
521,408
Theatre properties and equipment, net
1,304,958
1,238,850
Total assets
3,863,226
3,522,408
Long-term debt, including current portion
1,764,010
1,572,221
Equity
1,094,984
1,023,639
Segment Information
(unaudited, in thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2012
2011
2012
2011
Revenues
U.S.
$
435,356
$
376,988
$
1,706,511
$
1,593,667
International
178,783
161,291
777,663
696,119
Eliminations
(2,605
)
(2,408
)
(10,643
)
(10,173
)
Total revenues
$
611,534
$
535,871
$
2,473,531
$
2,279,613
Adjusted EBITDA
U.S.
$
107,638
$
82,121
$
409,860
$
371,212
International
35,947
30,582
179,375
148,261
Total Adjusted EBITDA
$
143,585
$
112,703
$
589,235
$
519,473
Capital Expenditures
U.S.
$
33,163
$
22,194
$
107,323
$
79,510
International
41,037
36,442
113,404
105,309
Total capital expenditures
$
74,200
$
58,636
$
220,727
$
184,819
Additional Segment Information (1)
(unaudited)
U.S. Operating Segment
International Operating Segment
Consolidated
Three Months Ended
Three Months Ended
Three Months Ended
December 31,
December 31,
December 31,
%
%
%
2012
2011
Change
2012
2011
Change
2012
2011
Change
Admissions revenues
$
280.5
$
241.5
16.1
%
$
105.6
$
95.4
10.7
%
$
386.1
$
336.9
14.6
%
Concession revenues
$
137.5
$
119.7
14.9
%
$
52.6
$
46.3
13.6
%
$
190.1
$
166.0
14.5
%
Other revenues(2)
$
14.7
$
13.3
10.5
%
$
20.6
$
19.7
4.6
%
$
35.3
$
33.0
7.0
%
Total revenues(2)
$
432.7
$
374.5
15.5
%
$
178.8
$
161.4
10.8
%
$
611.5
$
535.9
14.1
%
Attendance
40.6
36.8
10.3
%
23.1
21.3
8.5
%
63.7
58.1
9.6
%
Average ticket price
$
6.91
$
6.57
5.2
%
$
4.57
$
4.48
2.0
%
$
6.06
$
5.80
4.5
%
Concession revenues per patron
$
3.39
$
3.26
4.0
%
$
2.28
$
2.17
5.1
%
$
2.98
$
2.86
4.2
%
Average screen count
3,916
3,870
1,307
1,251
5,223
5,121
U.S. Operating Segment
International Operating Segment
Consolidated
Three Months Ended
Three Months Ended
Three Months Ended
December 31,
December 31,
December 31,
2012
2011
2012
2011
2012
2011
Film rentals and advertising
$
156.8
$
135.7
$
51.6
$
49.7
$
208.4
$
185.4
Concession supplies
18.3
15.7
12.0
11.3
30.3
27.0
Salaries and wages
44.2
41.8
18.7
16.5
62.9
58.3
Facility lease expense
48.0
46.8
20.5
21.4
68.5
68.2
Utilities and other
43.9
42.0
26.4
19.6
70.3
61.6
U.S. Operating Segment
International Operating Segment
Consolidated
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
%
%
%
2012
2011
Change
2012
2011
Change
2012
2011
Change
Admissions revenues
$
1,099.6
$
1,033.6
6.4
%
$
480.8
$
438.0
9.8
%
$
1,580.4
$
1,471.6
7.4
%
Concession revenues
$
546.2
$
503.4
8.5
%
$
225.2
$
193.4
16.4
%
$
771.4
$
696.8
10.7
%
Other revenues(2)
$
50.1
$
46.5
7.7
%
$
71.6
$
64.7
10.7
%
$
121.7
$
111.2
9.4
%
Total revenues(2)
$
1,695.9
$
1,583.5
7.1
%
$
777.6
$
696.1
11.7
%
$
2,473.5
$
2,279.6
8.5
%
Attendance
163.6
158.5
3.2
%
100.1
88.9
12.6
%
263.7
247.4
6.6
%
Average ticket price
$
6.72
$
6.52
3.1
%
$
4.80
$
4.93
(2.6
)%
$
5.99
$
5.95
0.7
%
Concession revenues per patron
$
3.34
$
3.18
5.0
%
$
2.25
$
2.18
3.2
%
$
2.93
$
2.82
3.9
%
Average screen count
3,909
3,847
1,289
1,174
5,198
5,021
U.S. Operating Segment
International Operating Segment
Consolidated
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
2012
2011
2012
2011
2012
2011
Film rentals and advertising
$
610.5
$
574.2
$
234.6
$
224.4
$
845.1
$
798.6
Concession supplies
71.1
64.0
52.4
48.1
123.5
112.1
Salaries and wages
174.2
167.5
73.2
59.0
247.4
226.5
Facility lease expense
191.1
185.8
90.5
90.5
281.6
276.3
Utilities and other
182.9
174.5
97.8
85.2
280.7
259.7
(1) Revenues, attendance and theatre operating costs are in
millions. Average ticket price and concession revenues per patron are in
dollars.
(2) U.S. operating segment revenues include eliminations of
intercompany transactions with the international operating segment.
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
Three months ended
Year ended
December 31,
December 31,
2012
2011
2012
2011
Net income
$
28,438
$
18,603
$
171,420
$
132,582
Income taxes
37,169
11,404
125,398
73,050
Interest expense
29,296
31,786
123,665
123,102
Loss on early retirement of debt
5,599
―
5,599
4,945
Loss on marketable securities - RealD
―
12,610
―
12,610
Other income
(6,628
)
(5,305
)
(21,568
)
(13,594
)
Depreciation and amortization
37,621
34,870
147,675
154,449
Impairment of long-lived assets
1,559
3,432
3,031
7,033
Loss on sale of assets and other
4,164
817
12,168
8,792
Deferred lease expenses – theatres (2)
(243
)
252
58
1,218
Deferred lease expenses – DCIP (3)
1,020
993
4,046
2,937
Amortization of long-term prepaid rents (2)
685
681
2,673
2,657
Share based awards compensation expense (4)
4,905
2,560
15,070
9,692
Adjusted EBITDA (1)
$
143,585
$
112,703
$
589,235
$
519,473
(1) Adjusted EBITDA as calculated in the chart above
represents net income before income taxes, interest expense, loss on
early retirement of debt, loss on marketable securities – RealD, 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.
Press Release $CNK Cinemark Holdings Inc.
PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three months and year ended December 31, 2012.
Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2012 increased 14.1% to $611.5 million compared to $535.9 million for the three months ended December 31, 2011. For the three months ended December 31, 2012, admissions revenues increased 14.6% and concession revenues increased 14.5% due to a 9.6% increase in attendance, a 4.5% increase in average ticket price, and a 4.2% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended December 31, 2012 increased 27.4% to $143.6 million from $112.7 million for the three months ended December 31, 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 December 31, 2012 was $27.8 million compared to $18.3 million for the three months ended December 31, 2011. Diluted earnings per share for the three months ended December 31, 2012 was $0.24 compared to $0.16 for the three months ended December 31, 2011. Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2012 included a pre-tax loss on early retirement of debt of $5.6 million.
“It was an incredible year for the industry, as 2012 set a new record with an estimated $10.8 billion in domestic box office revenues, representing an increase of approximately 6.1% compared to 2011,” stated Tim Warner, Cinemark’s Chief Executive Officer. “Cinemark’s worldwide attendance set a company record of 263.7 million patrons. We also reached a milestone in Latin America, surpassing 100 million patrons. Cinemark continues to be the number one attended worldwide exhibitor.”
Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2012 increased 8.5% to $2,473.5 million from $2,279.6 million for the year ended December 31, 2011. For the year ended December 31, 2012, admissions revenues increased 7.4% and concession revenues increased 10.7%, primarily due to a 6.6% increase in attendance and a 3.9% increase in concession revenues per patron.
Adjusted EBITDA for the year ended December 31, 2012 increased 13.4% to $589.2 million from $519.5 million for the year ended December 31, 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 year ended December 31, 2012 increased to $168.9 million from $130.6 million for the year ended December 31, 2011. Diluted earnings per share for the year ended December 31, 2012 was $1.47 compared to $1.14 for the year ended December 31, 2011. Net income attributable to Cinemark Holdings, Inc. for the year ended December 31, 2012 included a pre-tax loss on early retirement of debt of $5.6 million.
As of December 31, 2012, the Company’s aggregate screen count was 5,240 and the Company had commitments to open 22 new theatres and 199 screens during 2013 and 8 additional new theatres with 88 screens subsequent to 2013.
Conference Call/Webcast – Today at 4:30 PM ET
Telephone: via 800-374-1346 or 706-679-3149 (for international callers).
Live Webcast/Replay: Available live at investors.cinemark.com. A replay will be available following the call and archived for a limited time.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 465 theatres with 5,240 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of December 31, 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 28, 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.
(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.
Segment Information
(unaudited, in thousands)
Additional Segment Information (1)
(unaudited)
U.S. Operating
Segment
International
Operating Segment
U.S. Operating
Segment
International
Operating Segment
U.S. Operating Segment
International
Operating Segment
U.S. Operating
Segment
International
Operating Segment
(1) Revenues, attendance and theatre operating costs are in millions. Average ticket price and concession revenues per patron are in dollars.
(2) U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.
(1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, loss on marketable securities – RealD, 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.
Cinemark Holdings, Inc.
Chanda Brashears, 972-665-1671
cbrashears@cinemark.com
Source: Cinemark Holdings, Inc.