Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion
picture exhibitors in the world, today reported results for the
three and nine months ended September 30, 2020. The Company’s
financial results continue to be impacted by the COVID-19 pandemic,
as the Company’s theatres were temporarily closed beginning in
March 2020. The Company began reopening domestic theatres in June
2020 and international theatres in August 2020, following new
health and safety protocols. As of September 30, 2020, the Company
had 252 domestic and 15 international theatres open to limited
hours, showing library content and some new releases. During the
three months ended September 30, 2020, attendance was 1.9 million
patrons, admissions revenues were $14.9 million and concession
revenues were $9.1 million. Total revenues were $35.5 million for
the three months ended September 30, 2020.
Net loss attributable to Cinemark Holdings, Inc. for the three
months ended September 30, 2020 was $(147.6) million. Diluted loss
per share for the three months ended September 30, 2020 was $(1.25)
and Adjusted EBITDA for the three months ended September 30, 2020
was $(128.0) million. Reconciliations of non-GAAP financial
measures are provided in the financial schedules accompanying this
press release and at investors.cinemark.com.
“As the COVID-19 pandemic continues to have an unprecedented
impact on the theatrical exhibition industry, our top near-term
priorities remain stringently managing liquidity, driving
productivity and reigniting moviegoing,” stated Mark Zoradi,
Cinemark’s Chief Executive Officer. “With nearly 90% of our
domestic theatres now operating, we have been encouraged by our
results to-date, wherein we have been burning less cash open than
when we were shut down. Significant drivers of this success have
been our extensive health and safety protocols that are part of The
Cinemark Standard, and innovative new ways of operating our
theaters and maximizing revenues, such as the Private Watch Party
concept we launched in July. We look forward to a more normalized
pipeline of new film content and continuing to welcome back
Cinemark moviegoers to enjoy the immersive cinematic experience
they have been craving.”
Cinemark Holdings, Inc.’s total revenues for the nine months
ended September 30, 2020 were $588.1 million compared to $2,494.3
million for the nine months ended September 30, 2019. For the nine
months ended September 30, 2020, admissions revenues were $307.4
million and concession revenues were $199.6 million. For the nine
months ended September 30, 2020, attendance was 47.7 million
patrons, average ticket price was $6.44 and concession revenues per
patron were $4.18.
Net loss attributable to Cinemark Holdings, Inc. for the nine
months ended September 30, 2020 was $(377.6) million compared to
net income attributable to Cinemark Holdings, Inc. of $165.1
million for the nine months ended September 30, 2019. Diluted loss
per share for the nine months ended September 30, 2020 was $(3.22)
compared to diluted earnings per share of $1.41 for the nine months
ended September 30, 2019.
Adjusted EBITDA for the nine months ended September 30, 2020 was
$(179.4) million compared to $566.8 million for the nine months
ended September 30, 2019. Reconciliations of non-GAAP financial
measures are provided in the financial schedules accompanying this
press release and at investors.cinemark.com.
As of September 30, 2020, the Company’s aggregate screen count
was 5,974 and the Company had commitments to open two new theatres
and 16 screens during the remainder of 2020 and 20 new theatres and
205 screens subsequent to 2020.
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
https://investors.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, operates 533 theatres with 5,974
screens in 41 states domestically and 15 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://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, including, among others, the
impacts of COVID-19. 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
21, 2020, as updated by the information related to COVID-19 that
was included in a Form 8-K filed on April 13, 2020, including the
documents incorporated by reference therein, the Quarterly Report
on Form 10-Q filed on August 4, 2020 and the Quarterly Report on
Form 10-Q filed on November 5, 2020. 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
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Statement of income data:
Revenues
Admissions
$
14,901
$
454,429
$
307,400
$
1,371,041
Concession
9,116
289,477
199,596
886,083
Other
11,461
77,911
81,072
237,172
Total revenues
35,478
821,817
588,068
2,494,296
Cost of operations
Film rentals and advertising
8,257
254,911
165,262
759,693
Concession supplies
2,688
51,573
39,879
157,361
Salaries and wages
20,181
103,270
116,589
308,316
Facility lease expense
67,047
87,436
214,490
262,529
Utilities and other
43,412
123,877
178,806
357,210
General and administrative expenses
30,342
44,702
99,361
127,002
Depreciation and amortization
62,543
67,760
191,380
196,795
Impairment of long-lived assets
24,595
27,304
41,214
45,382
Restructuring costs
524
—
20,062
—
(Gain) loss on disposal of assets and
other
(13,327
)
2,453
(10,997
)
8,057
Total cost of operations
246,262
763,286
1,056,046
2,222,345
Operating income (loss)
(210,784
)
58,531
(467,978
)
271,951
Interest expense
(36,577
)
(24,967
)
(92,284
)
(75,037
)
Interest income
1,348
3,903
4,235
10,062
Foreign currency exchange loss
(2,251
)
(4,406
)
(6,183
)
(4,785
)
Distributions from NCM
1,061
2,474
6,975
9,168
Interest expense - NCM
(5,901
)
(4,666
)
(17,726
)
(14,180
)
Equity in income (loss) of affiliates
(16,077
)
15,139
(27,711
)
33,982
Income (loss) before income taxes
(269,181
)
46,008
(600,672
)
231,161
Income taxes
(121,145
)
14,053
(222,398
)
64,152
Net income (loss)
$
(148,036
)
$
31,955
$
(378,274
)
$
167,009
Less: Net income (loss) attributable to
noncontrolling interests
(444
)
602
(702
)
1,957
Net income (loss) attributable to Cinemark
Holdings, Inc.
$
(147,592
)
$
31,353
$
(377,572
)
$
165,052
Earnings (loss) per share attributable to
Cinemark Holdings, Inc.'s common stockholders
Basic
$
(1.25
)
$
0.27
$
(3.22
)
$
1.41
Diluted
$
(1.25
)
$
0.27
$
(3.22
)
$
1.41
Weighted average shares outstanding -
Diluted
116,707
116,600
116,552
116,577
Other Operating Data
(unaudited, in thousands)
As of
As of
September 30,
December 31,
2020
2019
Balance sheet data:
Cash and cash equivalents
$
825,706
$
488,313
Theatre properties and equipment, net
$
1,545,823
$
1,735,247
Total assets
$
5,802,613
$
5,828,017
Long-term debt, including current portion,
net of unamortized debt discounts and debt issue costs
$
2,374,345
$
1,777,937
Equity
$
1,018,448
$
1,448,322
Segment Information
(unaudited, in millions, except
per patron data)
U.S. Operating Segment
International Operating
Segment
Consolidated
Nine Months Ended September
30,
Nine Months Ended September
30,
Constant Currency (1)
Nine Months Ended September
30,
Revenues
2020
2019
2020
2019
2020
2020
2019
Admissions revenues
$
247.2
$
1,066.9
$
60.2
$
304.2
$
71.2
$
307.4
$
1,371.1
Concession revenues
$
161.7
$
704.7
$
37.9
$
181.4
$
44.2
$
199.6
$
886.1
Other revenues
$
61.2
$
159.2
$
19.9
$
77.9
$
24.4
$
81.1
$
237.1
Total revenues
$
470.1
$
1,930.8
$
118.0
$
563.5
$
139.8
$
588.1
$
2,494.3
Attendance
29.8
132.9
17.9
82.9
47.7
215.8
Average ticket price
$
8.30
$
8.03
$
3.36
$
3.67
$
3.98
$
6.44
$
6.35
Concession revenues per patron
$
5.43
$
5.30
$
2.12
$
2.19
$
2.47
$
4.18
$
4.11
U.S. Operating Segment
International Operating
Segment
Consolidated
Nine Months Ended
Nine Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
Cost of Operations
2020
2019
2020
2019
Constant Currency (1)
2019
2020
2019
Film rentals and advertising
$
136.3
$
610.3
$
28.9
$
149.4
$
34.4
$
165.2
$
759.7
Concession supplies
$
29.4
$
117.6
$
10.5
$
39.7
$
12.5
$
39.9
$
157.3
Salaries and wages
$
90.5
$
247.4
$
26.1
$
60.9
$
31.8
$
116.6
$
308.3
Facility lease expense
$
186.0
$
194.1
$
28.5
$
68.4
$
34.2
$
214.5
$
262.5
Utilities and other
$
140.3
$
260.8
$
38.4
$
96.4
$
46.5
$
178.7
$
357.2
(1)
Constant currency amounts, which are
non-GAAP measurements, were calculated using the average exchange
rate for the corresponding month for 2019. 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 thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Adjusted EBITDA (1)
U.S.
$
(105,767
)
$
132,347
$
(145,947
)
$
453,404
International
(22,232
)
37,411
(33,459
)
113,346
Total Adjusted EBITDA (1)
$
(127,999
)
$
169,758
$
(179,406
)
$
566,750
Capital expenditures
U.S.
$
17,903
$
50,679
$
54,604
$
148,609
International
2,756
20,664
13,014
37,903
Total capital expenditures
$
20,659
$
71,343
$
67,618
$
186,512
(1)
Adjusted EBITDA represents net income
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.
Reconciliation of Adjusted
EBITDA
(unaudited, in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net income (loss)
$
(148,036
)
$
31,955
$
(378,274
)
$
167,009
Add (deduct):
Income taxes
(121,145
)
14,053
(222,398
)
64,152
Interest expense
36,577
24,967
92,284
75,037
Other expense (income), net (a)
22,881
(9,970
)
47,385
(25,079
)
Distributions from DCIP (b)
—
2,694
10,383
7,912
Cash distributions from other equity
investees (c)
2,146
5,804
15,047
20,251
Depreciation and amortization
62,543
67,760
191,380
196,795
Impairment of long-lived assets
24,595
27,304
41,214
45,382
Restructuring costs
524
—
20,062
—
(Gain) loss on disposal of assets and
other
(13,327
)
2,453
(10,997
)
8,057
Non-cash rent
816
(1,102
)
1,649
(3,252
)
Share based awards compensation expense
(d)
4,427
3,840
12,859
10,486
Adjusted EBITDA
$
(127,999
)
$
169,758
$
(179,406
)
$
566,750
(a)
Includes interest income, foreign currency
exchange gain (loss), interest expense – NCM and equity in income
of affiliates.
(b)
Cash distributions from DCIP, which were
recorded as a reduction of the Company’s investment in DCIP.
(c)
Cash distributions received from equity
investees, other than those from DCIP noted above, that were
recorded as a reduction of the respective investment balances.
(d)
Non-cash expense included in general and
administrative expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105005353/en/
Financial Contact : Chanda
Brashears – 972-665-1671 or cbrashears@cinemark.com Media Contact: Caitlin Piper – 972-665-1418 or
pr@cinemark.com
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