Cinemark Holdings, Inc. Reports Adjusted EBITDA of $148.4 Million on Revenues of $633.6 Million

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Cinemark Holdings, Inc. Reports Adjusted EBITDA of $148.4 Million on Revenues of $633.6 Million

PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYS: CNK) , one of the largest motion picture exhibitors in the world, today reported results for the three and nine months ended September 30, 2012. Cinemark Holdings, Inc.'s revenues for the three months ended September 30, 2012 were $633.6 million compared to $640.0 million for the three months ended September 30, 2011. For the three months ended September 30, 2012, admissions revenues were $402.4 million and concession revenues were $200.1 million. Attendance was 69.7 million patrons for the three months ended September 30, 2012, a slight increase over the three months ended September 30, 2011.

Adjusted EBITDA for the three months ended September 30, 2012 was $148.4 million compared to $154.3 million for the three months ended September 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 September 30, 2012 was $47.4 million compared to $46.9 million for the three months ended September 30, 2011.

"The geographic diversity of our U.S. and Latin American footprint with 5,207 screens in 39 U.S. states and 13 Latin American countries led to an all-time Cinemark record for worldwide attendance, entertaining 69.7 million patrons during the quarter," stated Tim Warner, Cinemark's Chief Executive Officer. "As our results consistently demonstrate, Cinemark has designed a company with a strong and stable domestic base, which supports our substantial quarterly dividend, accompanied by our international circuit, which represents a long-running growth engine and differentiates us from all of our industry peers worldwide."

Cinemark Holdings, Inc.'s revenues for the nine months ended September 30, 2012 increased 6.8% to $1,862.0 million from $1,743.7 million for the nine months ended September 30, 2011. During the nine months ended September 30, 2012, admissions revenues increased 5.3% to $1,194.3 million and concession revenues increased 9.5% to $581.3 million. The increases were primarily related to a 5.7% increase in attendance and a 3.9% increase in concession revenues per patron.

Adjusted EBITDA for the nine months ended September 30, 2012 increased 9.6% to $445.7 million from $406.8 million for the nine months ended September 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 nine months ended September 30, 2012 was $141.1 million compared to $112.3 million for the nine months ended September 30, 2011. Net income for the nine months ended September 30, 2011 included a loss on early retirement of debt of approximately $4.9 million, before income taxes.

On September 30, 2012, the Company's aggregate screen count was 5,207. As of September 30, 2012, the Company had signed commitments to open eight new theatres with 72 screens by the end of 2012 and open 28 new theatres and 284 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 section 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, Argentina and 10 other Latin American countries as of September 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, except per share amounts)
     

Three months ended
September 30,

  

Nine months ended
September 30,

2012

  

2011

  

2012

  

2011

Statement of income data:
Revenues
Admissions$402,440$417,088$1,194,306$1,134,697
Concession200,112194,794581,346530,828
Other 31,021    28,131    86,345    78,217 
Total revenues633,573640,0131,861,9971,743,742
 
Cost of operations
Film rentals and advertising214,002225,431636,718613,204
Concession supplies32,92432,16693,16285,076
Facility lease expense72,88372,318213,059208,111
Other theatre operating expenses138,043132,793394,967366,304
General and administrative expenses36,99632,652107,01192,825
Depreciation and amortization36,89740,542110,054119,579
Impairment of long-lived assets9769921,4723,601
Loss on sale of assets and other 6,699    1,809    8,004    7,975 
Total cost of operations 539,420    538,703    1,564,447    1,496,675 
Operating income94,153101,310297,550247,067
 
Interest expense (1)(30,861)(32,249)(94,369)(91,316)
Distributions from NCM4,6735,10813,09016,530
Loss on early retirement of debt(4,945)
Other income 9,455    2,816    14,940    8,289 
Income before income taxes77,42076,985231,211175,625
Income taxes 29,453    29,337    88,229    61,646 
Net income$47,967$47,648$142,982$113,979
Less: Net income attributable to noncontrolling interests 582    728    1,855    1,685 
Net income attributable to Cinemark Holdings, Inc.$47,385   $46,920   $141,127   $112,294 
 

Earnings per share attributable to Cinemark Holdings, Inc.'s
common stockholders:

Basic$0.41   $0.41   $1.23   $0.98 
Diluted$0.41   $0.41   $1.23   $0.98 
 
Weighted average diluted shares outstanding 113,814    113,298    113,664    113,170 
 
Other financial data:
Adjusted EBITDA (2)$148,370   $154,273   $445,650   $406,770 
(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 ofAs of
September 30,December 31,

2012

2011

Balance sheet data (in thousands):
Cash and cash equivalents$540,759$521,408
Theatre properties and equipment, net$1,262,919$1,238,850
Total assets$3,581,318$3,522,408
Long-term debt, including current portion$1,563,470$1,572,221
Equity$1,088,098$1,023,639
 
      
Three months ended

September 30,

   Nine months ended

September 30,

2012

   

2011

2012

   

2011

Other operating data:
Attendance (patrons, in thousands):
Domestic41,14144,424122,984121,728
International 28,508    25,009    77,008    67,636
Worldwide 69,649    69,433    199,992    189,364
 
Average ticket price (in dollars):
Domestic$6.44$6.47$6.66$6.51
International$4.81$5.20$4.87$5.07
Worldwide$5.77$6.01$5.97$5.99
 
Concession revenues per patron (in dollars):
Domestic$3.29$3.13$3.32$3.15
International$2.26$2.23$2.24$2.18
Worldwide$2.87$2.81$2.91$2.80
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