Cinemark Holdings, Inc. Reports a 14.1% Increase in Revenues to $611.5 Million for Q4 2012

Cinemark Holdings, Inc. Reports a 14.1% Increase in Revenues to $611.5 Million for Q4 2012

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 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

%