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

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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
Concession190,059165,926771,405696,754
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 advertising208,389185,402845,107798,606
Concession supplies30,30927,046123,471112,122
Facility lease expense68,55668,167281,615276,278
Other theatre operating expenses133,171119,874528,138486,178
General and administrative expenses41,61334,796148,624127,621
Depreciation and amortization37,62134,870147,675154,449
Impairment of long-lived assets1,5593,4323,0317,033
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 income86,15261,467383,702308,534
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 NCM7,7227,63120,81224,161
Loss on marketable securities - RealD-(12,610)-(12,610)
Other income 6,628   5,305  21,568   13,594 
Income before income taxes65,60730,007296,818205,632
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, net1,304,9581,238,850
Total assets3,863,2263,522,408
Long-term debt, including current portion1,764,0101,572,221
Equity1,094,9841,023,639
 

   

Segment Information

(unaudited, in thousands)

 
Three Months EndedYear Ended
December 31, December 31,
 2012   2011  2012   2011 
Revenues
U.S.$435,356$376,988$1,706,511$1,593,667
International178,783161,291777,663696,119
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 EndedThree Months EndedThree Months Ended
December 31,December 31,December 31,
  %  %  %
20122011Change20122011Change20122011Change
Admissions revenues$280.5$241.516.1%$105.6$95.410.7%
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