National CineMedia, Inc. Announces New $100 Million Share Repurchase Program
March 18 2024 - 4:01PM
Business Wire
National CineMedia, Inc. (NASDAQ: NCMI) (“the Company” or
“NCM”), the managing member of National CineMedia, LLC (“NCM LLC”),
the operator of the largest cinema advertising platform in the
U.S., today announced that its Board of Directors has approved a
new share repurchase program authorizing the purchase of up to $100
million of the Company’s common stock through April 1, 2027. During
the course of the program, NCM plans to use operating cash flow
distributions from NCM LLC to opportunistically repurchase shares
at prevailing market prices, while continuing to invest capital in
growing its advertising network through strategic initiatives.
“Our new share repurchase program demonstrates the Board and
Management’s confidence in the strength of our business and
long-term prospects of our cinema advertising network,” said NCM
Chief Executive Officer Tom Lesinski. “As we execute our share
buyback program, we will continue to strategically look for ways to
deploy capital to drive long-term shareholder value.”
Additional Information on Share Repurchase Program
In determining the amount of capital to allocate to share
repurchases, the Company will take into account, among other
things, its historical and expected business performance, cash and
liquidity position, economic and market conditions, ongoing
strategic initiatives, and the market price of the Company’s common
stock. The timing, manner, price, and amount of any repurchases
under the share repurchase program will be determined by the
Company in its discretion. Repurchases under the Company's share
repurchase program may be made through open market transactions
(including the use of SEC Rule 10b5-1 trading plans), privately
negotiated transactions, accelerated share repurchases or other
structured transactions, subject to market conditions and
applicable legal requirements. The Company has no obligation to
repurchase shares, and the share repurchase program may be
modified, suspended, or discontinued at any time.
About NCM
National CineMedia (NCM) is the largest cinema advertising
platform in the US. With unparalleled reach and scale, NCM connects
brands to sought-after young, diverse audiences through the power
of movies and pop culture. A premium video, full-funnel marketing
solution for advertisers, NCM enhances marketers' ability to
measure and drive results. NCM’s Noovie® Show is presented
exclusively in 45 leading national and regional theater circuits
including the only three national chains, AMC Entertainment Inc.
(NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK) and Regal
Entertainment Group (a subsidiary of Cineworld Group PLC). NCM’s
cinema advertising platform consists of more than 18,400 screens in
over 1,400 theaters in 190 Designated Market Areas® (all of the top
50). National CineMedia, Inc. (NASDAQ:NCMI) owns and is the
managing member of National CineMedia, LLC. For more information,
visit www.ncm.com and www.noovie.com.
Forward-Looking Statements
This press release contains various forward-looking statements
that reflect management’s current expectations or beliefs regarding
future events, including statements regarding the Company's
intentions with respect to its stock repurchase program. Investors
are cautioned that reliance on these forward-looking statements
involves risks and uncertainties. Although the Company believes
that the assumptions used in the forward-looking statements are
reasonable, any of these assumptions could prove to be inaccurate
and, as a result, actual results could differ materially from those
expressed or implied in the forward-looking statements. The factors
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements are, among
others, 1) level of theater attendance or viewership of the Noovie®
show; 2) the availability and predictability of major motion
pictures displayed in theaters, including as a result of strikes or
other production delays in the entertainment industry; 3) increased
competition for advertising expenditures; 4) inability to implement
or achieve new revenue opportunities; 5) changes to the ESAs or
network affiliate agreements and the relationships with NCM LLC’s
ESA Parties and network affiliates, 6) failure to realize the
anticipated benefits of the post-showtime inventory in our network;
7) technological changes and innovations; 8) economic conditions,
including the level of expenditures on and perception of cinema
advertising; 9) our ability to renew or replace expiring
advertising and content contracts; 10) the ongoing effects of NCM
LLC’s recent emergence from bankruptcy; 11) reinvestment in our
network and product offerings may require significant funding and
resulting reallocation of resources; and 12) fluctuations in and
timing of operating costs. In addition, the outlook provided does
not include the impact of any future unusual or infrequent
transactions; sales and acquisitions of operating assets and
investments; any future non-cash impairments of intangible and
fixed assets; amounts related to litigation or the related impact
of taxes that may occur from time to time due to management
decisions and changing business circumstances. The Company is
currently unable to forecast precisely the timing and/or magnitude
of any such amounts or events. Please refer to the Company’s
Securities and Exchange Commission filings, including the “Risk
Factor” section of the Company’s Annual Report on Form 10-K for the
year ended December 28, 2023, and subsequent Quarterly Reports on
Form 10-Q, for further information about these and other risks.
Investors are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they
are made. The Company undertakes no obligation to update any
forward-looking statement, whether as a result, of new information,
future events or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240318005251/en/
Investor Contact: Chan Park investors@ncm.com Media Contact: Pam
Workman press@ncm.com
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