Total revenue increased 33% year-over-year
to $611M on stronger than expected box office performance,
resulting in positive operating cash flow
Redeemed $100M of 8.75% Senior Secured Notes
due May 2025, reflecting our improved financial stability
and positive outlook
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion
picture exhibitors in the world, today reported results for the
three months ended March 31, 2023.
“We remain highly encouraged about our industry’s ongoing
recovery based on positive sustained momentum in movie-going
trends, an accelerating improvement in film volume, and better than
expected box office performance year-to-date,” stated Sean Gamble,
President & CEO. “Consumers continue to demonstrate their avid
desire to experience movies, and all forms of content, in a shared,
larger-than-life, cinematic setting, and our studio partners are
collectively reinforcing that there is simply no better way to
amplify excitement, interest, cultural relevance, and financial
value for their films than with a full-blown exclusive theatrical
release.”
Mr. Gamble continued, “Our positive outlook for our industry
also holds true for Cinemark, and our strong first quarter results
reflect the significant impact we are deriving from our industry’s
rebound, combined with our varied strategic actions to maximize
attendance and box office, drive overall top-line growth, and
improve our productivity, while delivering a top-notch experience
for our guests.”
Earnings Highlights
- We entertained 43 million movie-goers across our global circuit
during the first quarter, which was up 30% year-over-year.
- Our first quarter box office results outpaced industry recovery
by more than 700 basis points compared to the first quarter
2019.
- Cinemark continues to be the only major U.S. exhibitor to have
achieved and maintained a meaningful increase in market share since
reopening, which remains up approximately 100 basis points compared
to our pre-pandemic average.
- The volume of wide-release theatrical films in the first
quarter increased more than 25% year-over-year, and 2023 full year
volume is tracking better than expected with 110 wide-release
theatrical films now dated.
- We redeemed $100M of our 8.75% Senior Secured Notes on May 1,
2023 using cash on-hand, underscoring the health of our company, as
well as our positive outlook regarding the future of theatrical
exhibition.
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months
ended March 31, 2023 increased 32.6% to $610.7 million compared
with $460.5 million for the three months ended March 31, 2022. For
the three months ended March 31, 2023, admissions revenue increased
31.9% to $311.0 million and concession revenue increased 36.3% to
$235.8 million, driven by a 29.6% increase in attendance to 42.9
million patrons. Worldwide average ticket price was $7.25 and
concession revenue per patron was $5.50.
Net loss attributable to Cinemark Holdings, Inc. for the three
months ended March 31, 2023 was $(3.1) million compared with a loss
of $(74.0) million for the three months ended March 31, 2022.
Diluted loss per share for the three months ended March 31, 2023
was $(0.03) compared with a diluted loss per share of $(0.62) for
the three months ended March 31, 2022.
Adjusted EBITDA for the three months ended March 31, 2023 was
$86.2 million compared with $25.2 million for the three months
ended March 31, 2022. Reconciliations of non-GAAP financial
measures are provided in the financial schedules accompanying this
press release and at https://ir.cinemark.com.
As of March 31, 2023, the Company’s aggregate screen count was
5,833, and the Company had commitments to open 7 new theatres and
59 screens over the next two years.
Webcast – Today at 8:30 AM
ET
Live Webcast/Replay: Available at
https://ir.cinemark.com. A replay will be available following the
call and archived for a limited time.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the
largest and most influential movie theatre companies in the world.
Cinemark’s circuit, comprised of various brands that also include
Century, Tinseltown and Rave, as of March 31, 2023 operated 516
theatres with 5,833 screens in 42 states domestically and 14
countries throughout South and Central America. Cinemark
consistently provides an extraordinary guest experience from the
initial ticket purchase to the closing credits, including Movie
Club, the first U.S. exhibitor-launched subscription program; the
highest Luxury Lounger recliner seat penetration among the major
players; XD - the No. 1 exhibitor-brand premium large format; and
expansive food and beverage options to further enhance the
moviegoing experience. For more information go to
https://ir.cinemark.com.
Forward-looking Statements
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are based on information
currently available as well as management’s assumptions and beliefs
today. These statements are subject to numerous risks and
uncertainties that could cause actual results to differ materially
from the results expressed or implied by the statements, and
investors should not place undue reliance on them. Risks and
uncertainties that could cause actual results to differ materially
from such statements include:
- future revenues, expenses and profitability;
- currency exchange rate and inflationary impacts;
- the future development and expected growth of our
business;
- projected capital expenditures;
- access to capital resources;
- attendance at movies generally or in any of the markets in
which we operate;
- the number and diversity of popular movies released, the length
of exclusive theatrical release windows, and our ability to
successfully license and exhibit popular films;
- national and international growth in our industry;
- competition from other exhibitors, alternative forms of
entertainment and content delivery via streaming and other
formats;
- determinations in lawsuits in which we are a party; and
- the impact of the COVID-19 pandemic on us and the motion
picture exhibition industry.
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. Such risks and uncertainties
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 24, 2023. 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 millions, except
per share amounts)
Three Months Ended
March 31,
2023
2022
Statement of loss data:
Revenue
Admissions
$
311.0
$
235.8
Concession
235.8
173.0
Other
63.9
51.7
Total revenue
610.7
460.5
Cost of operations
Film rentals and advertising
166.7
127.6
Concession supplies
43.6
30.0
Salaries and wages
86.2
79.8
Facility lease expense
79.5
73.7
Utilities and other
103.8
86.9
General and administrative expense
46.5
40.7
Depreciation and amortization
54.9
61.7
Impairment of other assets
0.7
—
(Gain) loss on disposal of assets and
other
0.3
(6.9
)
Total cost of operations
582.2
493.5
Operating income (loss)
28.5
(33.0
)
Other income (expense)
Interest expense
(36.8
)
(38.1
)
Interest income
11.9
1.6
Foreign currency exchange gain (loss)
(2.2
)
3.2
Interest expense - NCM
(5.7
)
(5.8
)
Equity in loss of affiliates
(2.1
)
(2.2
)
Loss before income taxes
(6.4
)
(74.3
)
Income tax benefit
(3.9
)
(1.8
)
Net loss
$
(2.5
)
$
(72.5
)
Less: Net income attributable to
noncontrolling interests
0.6
1.5
Net loss attributable to Cinemark
Holdings, Inc.
$
(3.1
)
$
(74.0
)
Loss per share attributable to Cinemark
Holdings, Inc.'s common stockholders
Basic
$
(0.03
)
$
(0.62
)
Diluted
$
(0.03
)
$
(0.62
)
Weighted average shares outstanding -
Diluted
118.8
117.9
Other Operating Data
(unaudited, in millions)
As of
March 31, 2023
December 31, 2022
Balance sheet data:
Cash and cash equivalents
$
650.1
$
674.5
Theatre properties and equipment, net
$
1,204.1
$
1,232.1
Total assets
$
4,712.1
$
4,817.7
Total long-term debt, net of unamortized
debt issuance costs
$
2,485.4
$
2,484.7
Equity
$
123.8
$
119.5
Three Months Ended March
31,
2023
2022
Cash flows provided by (used
for):
Operating activities (1)
$
7.9
$
(118.8
)
Investing activities
$
(26.3
)
$
(8.1
)
Financing activities
$
(4.9
)
$
(8.6
)
(1)
We define free cash flow as cash flow provided by (used for)
operating activities less capital expenditures. A reconciliation of
cash flow provided by (used for) operating activities to free cash
flow is provided below:
Three Months Ended March
31,
2023
2022
Reconciliation of free cash
flow:
Cash flows provided by (used for)
operating activities
$
7.9
$
(118.8
)
Less: Capital expenditures
26.3
18.7
Free cash flow
$
(18.4
)
$
(137.5
)
Segment Information
(unaudited, in millions, except
per patron data)
U.S. Operating Segment
International Operating
Segment
Consolidated
Three Months Ended March
31,
Three Months Ended March
31,
Three Months Ended March
31,
Revenue and Attendance
2023
2022
2023
2022
Constant Currency (1)
2023
2023
2022
Admissions revenue
$
244.7
$
191.8
$
66.3
$
44.0
$
78.6
$
311.0
$
235.8
Concession revenue
186.8
141.1
49.0
31.9
58.6
235.8
173.0
Other revenue
47.6
39.1
16.3
12.6
19.7
63.9
51.7
Total revenue
$
479.1
$
372.0
$
131.6
$
88.5
$
156.9
$
610.7
$
460.5
Attendance
25.2
20.7
17.7
12.4
42.9
33.1
Average ticket price
$
9.71
$
9.27
$
3.75
$
3.55
$
4.44
$
7.25
$
7.12
Concession revenue per patron
$
7.41
$
6.82
$
2.77
$
2.57
$
3.31
$
5.50
$
5.23
Cost of Operations
Film rentals and advertising
133.5
106.2
33.2
21.4
39.8
166.7
127.6
Concession supplies
32.9
22.9
10.7
7.1
12.9
43.6
30.0
Salaries and wages
71.5
67.1
14.7
12.7
17.6
86.2
79.8
Facility lease expense
62.0
62.5
17.5
11.2
19.9
79.5
73.7
Utilities and other
80.5
68.1
23.3
18.8
27.6
103.8
86.9
(1)
Constant currency amounts, which are non-GAAP measurements, were
calculated using the average exchange rate for the corresponding
month for 2022. We translate the results of our international
operating segment from local currencies into U.S. dollars using
currency rates in effect at different points in time in accordance
with U.S. GAAP. Significant changes in foreign currency exchange
rates from one period to the next can result in meaningful
variations in reported results. We are providing constant currency
amounts for our international operating segment to present a
period-to-period comparison of business performance that excludes
the impact of foreign currency fluctuations.
Other Segment
Information
(unaudited, in millions)
Three Months Ended
March 31,
2023
2022
Adjusted EBITDA (1)
U.S.
$
63.4
$
14.4
International
22.8
10.8
Total Adjusted EBITDA (1)
$
86.2
$
25.2
Capital expenditures
U.S.
$
22.7
$
14.0
International
3.6
4.7
Total Capital expenditures
$
26.3
$
18.7
(1)
Adjusted EBITDA represents net loss before
income taxes, depreciation and amortization expense and other
items, as calculated below. 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. A reconciliation of net loss
to Adjusted EBITDA is provided below.
Reconciliation of Adjusted
EBITDA
(unaudited, in millions)
Three Months Ended
March 31,
2023
2022
Net loss
$
(2.5
)
$
(72.5
)
Add (deduct):
Income tax benefit
(3.9
)
(1.8
)
Interest expense (1)
36.8
38.1
Other (income) expense, net (2)
(1.9
)
3.2
Cash distributions from equity investees
(3)
—
0.6
Depreciation and amortization
54.9
61.7
Impairment of other assets
0.7
—
(Gain) loss on disposal of assets and
other
0.3
(6.9
)
Non-cash rent
(3.9
)
(2.3
)
Share based awards compensation expense
(4)
5.7
5.1
Adjusted EBITDA
$
86.2
$
25.2
(1)
Includes amortization of debt issuance
costs and amortization of accumulated gains (losses) for amended
swap agreements.
(2)
Includes interest income, foreign currency
exchange (gain) loss, interest expense - NCM and equity in loss of
affiliates.
(3)
Includes cash distributions received from
equity investees that were recorded as a reduction of the
respective investment balances. These distributions are
reported entirely within the U.S. operating segment.
(4)
Non-cash expense included in general and
administrative expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230505005058/en/
Investor Relations Contact:
Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com
Media Contact: Julia McCartha –
972-665-1322 or pr@cinemark.com
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