Delivered Total Revenue of $734 million, Net
Income of $47 million, and Adjusted EBITDA of $142 million with a
strong 19.4% Adjusted EBITDA margin
Continued to significantly strengthen the
balance sheet while pursuing strategic and financially accretive
investments
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest and most
influential theatrical exhibition companies in the world, today
reported results for the three and six months ended June 30,
2024.
“Robust consumer enthusiasm to experience compelling content in
a larger-than-life, theatrical setting was evident once again in
the second quarter. Numerous films across varied genres delivered
solid results, including June’s record-breaking release of Inside
Out 2 – now the biggest animated title of all time – which drove
cumulative Q2 box office performance beyond our expectations
despite headwinds caused by last year’s strikes in Hollywood,”
stated Sean Gamble, Cinemark President and CEO. “As strong consumer
demand yielded better than expected industry performance, Cinemark
delivered outsized results, extending our lengthy track record of
outperformance through strong execution by our exceptional team,
coupled with the ongoing benefits we are deriving from our
strategic actions to build audiences, grow new sources of revenue
and further hone our industry-leading operating capabilities.”
Melissa Thomas, Cinemark CFO, further added, “Our ability to
deliver consistent operational performance has provided us
financial flexibility and opportunities to de-lever. We are pleased
with the significant progress we have made advancing our near-term
capital allocation priorities to strengthen our balance sheet while
strategically investing to position our company for sustainable
growth. We continue to take a holistic approach in evaluating our
capital structure with an ongoing focus on driving long-term
shareholder value.”
Q2 2024 Earnings Highlights
- Entertained 50 million moviegoers across our global
footprint.
- Delivered domestic box office results that surpassed North
American industry recovery by 400 basis points and 960 basis points
relative to Q2 2024 and Q2 2019, respectively; international
admissions outpaced our corresponding Latin American industry
recovery by 300 basis points and 500 basis points compared with Q2
2024 and Q2 2019, respectively.
- Sustained market share growth versus FY 2019 in excess of 100
basis points in the U.S. and Latin America; continued to maintain
the most significant market share gains compared to pre-pandemic
results of all major exhibitors.
- Reported $734 million of total revenue and $47 million of net
income with diluted earnings per share attributable to Cinemark
Holdings, Inc. of $0.32.
- Generated Adjusted EBITDA of $142 million with a strong 19.4%
Adjusted EBITDA margin, demonstrating disciplined operational
execution and the ongoing impact of our strategic initiatives.
- Maintained a healthy cash balance of $789 million at
quarter-end.
- Advanced objective to strengthen balance sheet post-pandemic,
as demonstrated by the following actions over the past few months:
- Redeemed remaining $150 million 8.75% senior secured notes due
2025 in May 2024 at par.
- Repriced term loan, reducing interest rate by 50 basis points
and saving $3.2 million of cash interest annually.
- Issued $500 million 7.00% unsecured notes due 2032 and executed
a cash tender for a vast majority of our unsecured notes due
2026.
- Continued to pursue balanced and disciplined investments to
position Cinemark for the long-term with approximately $150 million
expected to be deployed toward global growth and maintenance in
2024.
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months
ended June 30, 2024 decreased 22.1% to $734.2 million compared with
$942.3 million for the three months ended June 30, 2023. For the
three months ended June 30, 2024, admissions revenue decreased
23.5% to $365.8 million and concession revenue decreased 21.6% to
$292.9 million, driven by a 22.4% decrease in attendance to 50.0
million patrons. Worldwide average ticket price was $7.32 and
concession revenue per patron was $5.86.
Net income attributable to Cinemark Holdings, Inc. for the three
months ended June 30, 2024 was $45.8 million compared with net
income of $119.1 million for the three months ended June 30, 2023.
Diluted earnings per share for the three months ended June 30, 2024
was $0.32 compared with diluted earnings per share of $0.80 for the
three months ended June 30, 2023.
Adjusted EBITDA for the three months ended June 30, 2024 was
$142.1 million compared with $231.5 million for the three months
ended June 30, 2023. Reconciliations of non-GAAP financial measures
are provided in the financial schedules accompanying this press
release and at https://ir.cinemark.com.
Cinemark Holdings, Inc.’s total revenue for the six months ended
June 30, 2024 decreased 15.4% to $1,313.4 million compared with
$1,553.0 million for the six months ended June 30, 2023. For the
six months ended June 30, 2024, admissions revenue decreased 16.9%
to $655.6 million and concession revenue decreased 15.1% to $517.1
million, driven by a 16.4% decrease in attendance to 89.7 million
patrons. Worldwide average ticket price was $7.31 and concession
revenue per patron was $5.76.
Net income attributable to Cinemark Holdings, Inc. for the six
months ended June 30, 2024 was $70.6 million compared with net
income of $116.0 million for the six months ended June 30, 2023.
Diluted earnings per share for the six months ended June 30, 2024
was $0.51 compared with diluted earnings per share of $0.82 for the
six months ended June 30, 2023. Net income for the six months ended
June 30, 2024 included a $28.6 million tax benefit primarily
related to the release of certain valuation allowances.
Adjusted EBITDA for the six months ended June 30, 2024 was
$212.8 million compared with $317.7 million for the six months
ended June 30, 2023. Reconciliations of non-GAAP financial measures
are provided in the financial schedules accompanying this press
release and at https://ir.cinemark.com.
As of June 30, 2024, the Company’s aggregate screen count was
5,708, and the Company had commitments to open 3 new theatres and
33 screens over the next three 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 June 30, 2024 operated 502
theatres with 5,708 screens in 42 states domestically and 13
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 revenue, 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 ongoing recovery of our business and the motion picture
exhibition industry from the effects of the COVID-19 pandemic and
the 2023 writers' and actors' guilds strikes.
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 16, 2024. 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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Statement of income data:
Revenue
Admissions
$
365.8
$
478.4
$
655.6
$
789.4
Concession
292.9
373.4
517.1
609.2
Other
75.5
90.5
140.7
154.4
Total revenue
$
734.2
$
942.3
$
1,313.4
$
1,553.0
Cost of operations
Film rentals and advertising
204.0
278.0
358.3
444.7
Concession supplies
56.6
67.4
100.6
111.0
Salaries and wages
97.3
112.1
184.2
198.3
Facility lease expense
81.5
87.0
158.8
166.5
Utilities and other
104.7
120.2
205.1
224.0
General and administrative expenses
55.7
50.0
104.6
96.5
Depreciation and amortization
49.8
52.8
99.2
107.7
Impairment of long-lived and other
assets
—
9.4
—
10.1
Loss (gain) on disposal of assets and
other
1.7
(3.0
)
2.1
(2.7
)
Total cost of operations
651.3
773.9
1,212.9
1,356.1
Operating income
82.9
168.4
100.5
196.9
Other income (expense)
Interest expense
(34.6
)
(37.1
)
(72.3
)
(73.9
)
Interest income
12.5
13.0
26.1
24.9
Loss on debt amendments and
extinguishments
(2.5
)
(10.7
)
(2.5
)
(10.7
)
Foreign currency exchange and other
related loss
(6.3
)
(6.2
)
(4.9
)
(8.4
)
Interest expense - NCM
(5.6
)
(5.7
)
(11.1
)
(11.4
)
Equity in income (loss) of affiliates
2.5
1.8
6.3
(0.3
)
Net (loss) gain on investment in NCMI
(3.2
)
9.2
1.2
9.2
Income before income taxes
45.7
132.7
43.3
126.3
Income tax (benefit) expense
(0.9
)
12.3
(28.6
)
8.4
Net income
$
46.6
$
120.4
$
71.9
$
117.9
Less: Net income attributable to
noncontrolling interests
0.8
1.3
1.3
1.9
Net income attributable to Cinemark
Holdings, Inc.
$
45.8
$
119.1
$
70.6
$
116.0
Net income per share attributable to
Cinemark Holdings, Inc.'s common stockholders
Basic
$
0.37
$
0.98
$
0.58
$
0.96
Diluted
$
0.32
$
0.80
$
0.51
$
0.82
Weighted average shares outstanding
Basic
119.9
119.1
119.7
118.9
Diluted
153.4
151.7
153.3
151.5
Other Operating Data
(unaudited, in millions)
As of
June 30, 2024
December 31, 2023
Balance sheet data:
Cash and cash equivalents
$
788.8
$
849.1
Theatre properties and equipment, net
$
1,125.8
$
1,161.7
Total assets
$
4,786.2
$
4,836.8
Total long-term debt, net of unamortized
debt issuance costs and original issue discount
$
2,250.4
$
2,399.1
Total equity
$
375.0
$
318.8
Six Months Ended June
30,
2024
2023
Cash flows provided by (used
for):
Operating activities (1)
$
162.2
$
251.1
Investing activities
$
(46.4
)
$
(54.6
)
Financing activities
$
(168.1
)
$
(110.8
)
(1)
We define free cash flow as cash flow
provided by operating activities less capital expenditures. A
reconciliation of cash flow provided by operating activities to
free cash flow is provided below:
Six Months Ended June
30,
2024
2023
Reconciliation of free cash
flow:
Cash flows provided by operating
activities
$
162.2
$
251.1
Less: capital expenditures
47.2
54.6
Free cash flow
$
115.0
$
196.5
Segment Information
(unaudited, in millions, except
per patron data)
U.S. Operating Segment
International Operating
Segment
Consolidated
Three Months Ended June
30,
Three Months Ended June
30,
Three Months Ended June
30,
Revenue and Attendance
2024
2023
2024
2023
Constant Currency (1)
2024
2024
2023
Admissions revenue
$
287.4
$
373.4
$
78.4
$
105.0
$
123.8
$
365.8
$
478.4
Concession revenue
231.4
296.3
61.5
77.1
95.2
292.9
373.4
Other revenue
53.2
65.2
22.3
25.3
34.4
75.5
90.5
Total revenue
$
572.0
$
734.9
$
162.2
$
207.4
$
253.4
$
734.2
$
942.3
Attendance
29.1
38.8
20.9
25.6
50.0
64.4
Average ticket price
$
9.88
$
9.62
$
3.75
$
4.10
$
5.92
$
7.32
$
7.43
Concession revenue per patron
$
7.95
$
7.64
$
2.94
$
3.01
$
4.56
$
5.86
$
5.80
Cost of Operations
Film rentals and advertising
$
164.6
$
224.0
$
39.4
$
54.0
$
63.2
$
204.0
$
278.0
Concession supplies
$
43.2
$
50.4
$
13.4
$
17.0
$
20.7
$
56.6
$
67.4
Salaries and wages
$
80.8
$
92.5
$
16.5
$
19.6
$
27.9
$
97.3
$
112.1
Facility lease expense
$
60.0
$
61.9
$
21.5
$
25.1
$
29.2
$
81.5
$
87.0
Utilities and other
$
80.1
$
90.3
$
24.6
$
29.9
$
40.5
$
104.7
$
120.2
U.S. Operating Segment
International Operating
Segment
Consolidated
Six Months Ended June
30,
Six Months Ended June
30,
Six Months Ended June
30,
Revenue and Attendance
2024
2023
2024
2023
Constant Currency (1)
2024
2024
2023
Admissions revenue
$
519.2
$
618.1
$
136.4
$
171.3
$
209.1
$
655.6
$
789.4
Concession revenue
410.0
483.1
107.1
126.1
162.2
517.1
609.2
Other revenue
99.8
112.8
40.9
41.6
61.7
140.7
154.4
Total revenue
$
1,029.0
$
1,214.0
$
284.4
$
339.0
$
433.0
$
1,313.4
$
1,553.0
Attendance
52.7
64.0
37.0
43.3
89.7
107.3
Average ticket price
$
9.85
$
9.66
$
3.69
$
3.96
$
5.65
$
7.31
$
7.36
Concession revenue per patron
$
7.78
$
7.55
$
2.89
$
2.91
$
4.38
$
5.76
$
5.68
Cost of Operations
Film rentals and advertising
$
290.9
$
357.5
$
67.4
$
87.2
$
105.3
$
358.3
$
444.7
Concession supplies
$
77.5
$
83.3
$
23.1
$
27.7
$
34.8
$
100.6
$
111.0
Salaries and wages
$
153.3
$
164.0
$
30.9
$
34.3
$
51.0
$
184.2
$
198.3
Facility lease expense
$
120.5
$
123.9
$
38.3
$
42.6
$
50.4
$
158.8
$
166.5
Utilities and other
$
158.4
$
170.8
$
46.7
$
53.2
$
74.3
$
205.1
$
224.0
(1)
Constant currency amounts, which are
non-GAAP measurements, were calculated using the average exchange
rate for the corresponding month for 2023. 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
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Adjusted EBITDA (1)
U.S.
$
108.8
$
180.8
$
157.9
$
244.2
International
33.3
50.7
54.9
73.5
Total Adjusted EBITDA (1)
$
142.1
$
231.5
$
212.8
$
317.7
Capital expenditures
U.S.
$
16.1
$
21.1
$
34.2
$
43.8
International
7.6
7.2
13.0
10.8
Total capital expenditures
$
23.7
$
28.3
$
47.2
$
54.6
(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. A reconciliation of net income to
Adjusted EBITDA is provided below.
Reconciliation of Adjusted
EBITDA
(unaudited, in millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net income
$
46.6
$
120.4
$
71.9
$
117.9
Add (deduct):
Income tax (benefit) expense
(0.9
)
12.3
(28.6
)
8.4
Interest expense (1)
34.6
37.1
72.3
73.9
Other loss (income), net (2)
0.1
(12.1
)
(17.6
)
(14.0
)
Cash distributions from equity investees
(3)
1.6
1.6
2.9
1.6
Depreciation and amortization
49.8
52.8
99.2
107.7
Impairment of long-lived and other
assets
—
9.4
—
10.1
Loss (gain) on disposal of assets and
other
1.7
(3.0
)
2.1
(2.7
)
Loss on debt amendments and
extinguishments
2.5
10.7
2.5
10.7
Non-cash rent expense
(3.2
)
(4.5
)
(7.6
)
(8.4
)
Share-based awards compensation expense
(4)
9.3
6.8
15.7
12.5
Adjusted EBITDA
$
142.1
$
231.5
$
212.8
$
317.7
(1)
Includes amortization of debt issuance
costs, amortization of original issue discount and amortization of
accumulated gains for amended swap agreements.
(2)
Includes interest income, foreign currency
exchange and other related loss, interest expense - NCM, equity in
income (loss) of affiliates and net gain (loss) on investment in
NCMI.
(3)
Reflects 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/20240802805897/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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