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, 2011.
Cinemark Holdings, Inc.’s revenues for the three months ended
December 31, 2011 increased 2.1% to $535.9 million compared to
$524.9 million for the three months ended December 31, 2010. For
the three months ended December 31, 2011, admissions revenues
decreased 1.4% to $336.9 million and concession revenues increased
7.9% to $166.0 million.
Adjusted EBITDA for the three months ended December 31, 2011 was
$112.7 million compared to $113.9 million for the three months
ended December 31, 2010. 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, 2011 was $18.3 million
compared to $38.0 million for the three months ended December 31,
2010. Net income for the three months ended December 31, 2011
included an after-tax noncash loss on marketable securities of $7.9
million, which lowered diluted earnings per share by approximately
$0.07. Reported diluted earnings per share for the three months
ended December 31, 2011 was $0.16 compared to $0.33 for the three
months ended December 31, 2010.
“Cinemark’s increase in attendance this quarter of 2.3% drove an
admissions revenue performance that again exceeded the North
American industry’s box office results. Our Latin American assets
led us with admissions revenue growth of 8.4%,” stated Tim Warner,
Cinemark’s Chief Executive Officer. “During Q4, we completed our
goal of being 100% digital in all of the Company’s U.S. first-run
theatres and we continue to focus on further expanding our
international digital footprint.”
Cinemark Holdings, Inc.’s revenues for the year ended December
31, 2011 increased 6.5% to $2,279.6 million from $2,141.1 million
for the year ended December 31, 2010. For the year ended December
31, 2011, admissions revenues increased 4.7% to $1,471.6 million
and concession revenues increased 8.5% to $696.8 million.
Adjusted EBITDA for the year ended December 31, 2011 increased
6.9% to $519.5 million from $485.9 million for the year ended
December 31, 2010. 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, 2011 decreased to $130.6 million from
$146.1 million for the year ended December 31, 2010. The full-year
net income figure was impacted by the aforementioned $7.9 million
after-tax noncash loss on marketable securities and an after-tax
loss on early retirement of debt of $3.1 million, which together
lowered diluted earnings per share by approximately $0.10. Reported
diluted earnings per share for the year ended December 31, 2011 was
$1.14 compared to $1.29 for the year ended December 31, 2010.
As of December 31, 2011, the Company’s aggregate screen count
was 5,152 and the Company had commitments to open 11 new theatres
and 117 screens during 2012 and 11 additional new theatres with 129
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/Replay: available live at www.cinemark.com
in the Investor Relations 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 456 theatres with 5,152 screens in 39 U.S.
states, Brazil, Mexico and 11 other Latin American countries as of
December 31, 2011. For more information go to www.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 March 1,
2011 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)
Three Months Ended
Year Ended December 31, December 31,
2011
2010
2011
2010
Statement of Income Data: Revenues Admissions $ 336,930 $ 341,652 $
1,471,627 $ 1,405,389 Concession 165,926 153,862 696,754 642,326
Other 33,015 29,395
111,232 93,429 Total
revenues $ 535,871 $ 524,909 $
2,279,613 $ 2,141,144 Cost of
operations Film rentals and advertising 185,402 186,834 798,606
769,698 Concession supplies 27,046 24,019 112,122 97,484 Facility
lease expense 68,167 64,425 276,278 255,717 Other theatre operating
expenses 119,874 117,922 486,178 460,716 General and administrative
expenses 34,796 30,456 127,621 109,045 Depreciation and
amortization 34,870 39,518 154,449 143,508 Impairment of long-lived
assets 3,432 6,481 7,033 12,538 (Gain) loss on sale of assets and
other 817 (12,337 ) 8,792
(431 ) Total cost of operations
474,404 457,318 1,971,079
1,848,275 Operating income
61,467 67,591 308,534 292,869 Interest expense (1) (31,786 )
(28,891 ) (123,102 ) (112,444 ) Loss on early retirement of debt
– (3 ) (4,945 ) (3 ) Distributions from NCM 7,631 7,817
24,161 23,358 Loss on marketable securities - RealD (12,610 )
– (12,610 )
– Other income 5,305
3,716 13,594
3,721 Income before income taxes 30,007 50,230
205,632 207,501 Income taxes 11,404
11,920 73,050
57,838 Net income $ 18,603 $ 38,310 $ 132,582 $ 149,663
Less: Net income attributable to noncontrolling interests
340 297 2,025
3,543 Net income attributable to
Cinemark Holdings, Inc. $ 18,263 $ 38,013
$ 130,557 $ 146,120 Earnings per
share attributable to Cinemark Holdings, Inc.’s common
stockholders: Basic $ 0.16 $ 0.33 $
1.15 $ 1.30 Diluted $ 0.16
$ 0.33 $ 1.14 $ 1.29
Weighted average diluted shares outstanding
113,339 112,783 113,224
112,151 Other Financial
Data: Adjusted EBITDA (2) $ 112,703 $ 113,946
$ 519,473 $ 485,920
(1)
Includes amortization of debt issue costs and
excludes capitalized interest.
(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,
2011
2010
Balance Sheet Data (unaudited, in thousands): Cash and cash
equivalents $ 521,408 $ 464,997 Theatre properties and equipment,
net 1,238,850 1,215,446 Total assets 3,507,076 3,421,478 Long-term
debt, including current portion 1,572,221 1,532,441 Equity
1,023,639 1,033,152
Segment Information
(unaudited, in thousands)
Three Months Ended
Year Ended December 31,
December 31,
2011
2010
2011
2010
Revenues U.S. $ 376,988 $ 384,425 $ 1,593,667 $ 1,584,281
International 161,291 143,836 696,119 564,240 Eliminations
(2,408 ) (3,352 )
(10,173 ) (7,377 ) Total revenues $ 535,871
$ 524,909 $
2,279,613 $ 2,141,144 Adjusted EBITDA
U.S. $ 82,121 $ 89,614 $ 371,212 $ 363,345 International
30,582 24,332
148,261 122,575
Total Adjusted EBITDA $ 112,703 $ 113,946
$ 519,473 $
485,920 Capital Expenditures U.S. $ 22,194 $ 22,903 $ 79,510
$ 70,474 International 36,442
44,943 105,309
85,628 Total capital expenditures $ 58,636
$ 67,846 $ 184,819
$ 156,102
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,
% % %
2011
2010
Change
2011
2010
Change
2011
2010
Change
Admissions revenues $ 241.5 $ 253.7 (4.8)% $ 95.4 $ 88.0 8.4% $
336.9 $ 341.7 (1.4)% Concession revenues $ 119.7 $ 114.8 4.3% $
46.3 $ 39.0 18.7% $ 166.0 $ 153.8 7.9% Other revenues(2) $ 13.3 $
12.6 5.6% $ 19.7 $ 16.8 17.3% $ 33.0 $ 29.4 12.2% Total revenues(2)
$ 374.5 $ 381.1 (1.7)% $ 161.4 $ 143.8 12.2% $ 535.9 $ 524.9 2.1%
Attendance 36.8 37.8 (2.6)% 21.3 19.0 12.1% 58.1 56.8 2.3% Average
ticket price $ 6.57 $ 6.71 (2.1)% $ 4.48 $ 4.63 (3.2)% $ 5.80 $
6.02 (3.7)% Concession revenues per patron $ 3.26 $ 3.04 7.2% $
2.17 $ 2.05 5.9% $ 2.86 $ 2.71 5.5% Average screen count 3,870
3,829 1,251 1,098 5,121 4,927 Revenues per average screen(2) $
96,803 $ 99,536 (2.7)% $ 128,904 $ 130,998 (1.6)% $ 104,647 $
106,548 (1.8)%
U.S. Operating
Segment
International Operating
Segment
Consolidated
Three Months Ended
Three Months Ended
Three Months Ended December 31, December 31,
December 31,
2011
2010
2011
2010
2011
2010
Film rentals and advertising $ 135.7 $ 140.9 $ 49.7 $ 46.0 $ 185.4
$ 186.9 Concession supplies 15.7 14.1 11.3 9.9 27.0 24.0 Salaries
and wages 41.8 42.6 16.5 13.0 58.3 55.6 Facility lease expense 46.8
45.3 21.4 19.1 68.2 64.4 Utilities and other 42.0 36.9 19.6 25.4
61.6 62.3
U.S. Operating Segment
International Operating
Segment
Consolidated Year Ended Year Ended
Year Ended December 31, December
31, December 31, % %
%
2011
2010
Change
2011
2010
Change
2011
2010
Change
Admissions revenues $ 1,033.6 $ 1,044.7 (1.1)% $ 438.0 $ 360.7
21.4% $ 1,471.6 $ 1,405.4 4.7% Concession revenues $ 503.4 $ 487.9
3.2% $ 193.4 $ 154.4 25.3% $ 696.8 $ 642.3 8.5% Other revenues(2) $
46.5 $ 44.3 5.0% $ 64.7 $ 49.1 31.8% $ 111.2 $ 93.4 19.1% Total
revenues(2) $ 1,583.5 $ 1,576.9 0.4% $ 696.1 $ 564.2 23.4% $
2,279.6 $ 2,141.1 6.5% Attendance 158.5 161.2 (1.7)% 88.9 80.0
11.1% 247.4 241.2 2.6% Average ticket price $ 6.52 $ 6.48 0.6% $
4.93 $ 4.51 9.3% $ 5.95 $ 5.83 2.1% Concession revenues per patron
$ 3.18 $ 3.03 5.0% $ 2.18 $ 1.93 13.0% $ 2.82 $ 2.66 6.0% Average
screen count 3,847 3,830 1,174 1,079 5,021 4,909 Revenues per
average screen(2) $ 411,618 $ 411,708 0.0% $ 593,142 $ 523,078
13.4% $ 454,051 $ 436,181 4.1%
U.S.
Operating Segment
International Operating
Segment
Consolidated Year Ended Year Ended Year
Ended December 31, December 31, December
31,
2011
2010
2011
2010
2011
2010
Film rentals and advertising $ 574.2 $ 586.6 $ 224.4 $ 183.1 $
798.6 $ 769.7 Concession supplies 64.0 59.1 48.1 38.4 112.1 97.5
Salaries and wages 167.5 174.1 59.0 47.1 226.5 221.2 Facility lease
expense 185.8 181.9 90.5 73.8 276.3 255.7 Utilities and other 174.5
161.5 85.2 78.0 259.7 239.5
(1)
Revenues and attendance are in millions. Average ticket price,
concession revenues per patron and revenues per average screen are
in dollars. Theatre operating costs are in millions.
(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,
2011
2010
2011
2010
Net income $ 18,603 $ 38,310 $ 132,582 $ 149,663 Income taxes
11,404 11,920 73,050 57,838 Interest expense 31,786 28,891 123,102
112,444 Loss on early retirement of debt
– 3 4,945 3 Loss on
marketable securities - RealD 12,610
– 12,610
– Other
income (5,305 ) (3,716 ) (13,594 ) (3,721 ) Depreciation and
amortization 34,870 39,518 154,449 143,508 Impairment of long-lived
assets 3,432 6,481 7,033 12,538 (Gain) loss on sale of assets and
other 817 (12,337 ) 8,792 (431 ) Deferred lease expenses – theatres
(2) 252 823 1,218 3,221 Deferred lease expenses – DCIP (3) 993 341
2,937 719 Amortization of long-term prepaid rents (2) 681 539 2,657
1,786 Share based awards compensation expense (4) 2,560
3,173
9,692 8,352 Adjusted
EBITDA (1) $ 112,703 $ 113,946
$ 519,473 $ 485,920
(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, (gain) 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.
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