Cinemark Holdings, Inc. Reports First Quarter 2024 Results
Delivered Total Revenue of
Further strengthened balance sheet by redeeming the remaining
“2024 North American industry box office has kicked off better than expected, declining only modestly versus 2023 despite last year’s strike-induced headwinds. Outsized results across a wide array of diverse films provide further validation that consumer enthusiasm for experiencing compelling content in an elevated, cinematic, theatrical setting remains robust,” stated
“During the quarter, our sensational team once again demonstrated their skillful ability to navigate a dynamic operating environment, delivering results that outpaced the market. As we look ahead, encouraging indicators pertaining to consumer moviegoing patterns, film volume recovery, and strength of content appeal continue to provide a positive long-term outlook for our industry. Moreover, we believe Cinemark is uniquely positioned to thrive on account of our advantaged competitive strengths and numerous levers to drive value creation.”
Q1 2024 Earnings Highlights
- Entertained 40 million moviegoers across our global footprint.
- Delivered domestic box office results that surpassed North American industry recovery relative to Q1 2019 by more than 700 basis points; international admissions outpaced our corresponding Latin American industry recovery by approximately 600 basis points.
-
Sustained market share growth versus FY 2019 of more than 100 basis points in the
U.S. andLatin America ; continued to maintain the most significant market share gains compared to pre-pandemic results of all major exhibitors. -
Reported
$579 million of total revenue and$25 million of net income with diluted earnings per share of$0.19 . -
Generated Adjusted EBITDA of
$71 million with a healthy 12.2% Adjusted EBITDA margin, demonstrating skillful navigation in a dynamic operating environment impacted by strike-induced headwinds. -
Maintained a healthy balance sheet with cash balance of
$789 million at quarter-end; executed on capital allocation strategy to refortify the balance sheet by successfully redeeming the remaining$150 million of our COVID-related 8.75% senior secured notes onMay 1, 2024 , in advance of their maturity inMay 2025 , underscoring our positive long-term outlook for our company and our industry.
Financial Results
Net income attributable to
Adjusted EBITDA for the three months ended
As of
Webcast – Today at
Live Webcast/Replay: Available at https://ir.cinemark.com. A replay will be available following the call and archived for a limited time.
About
Headquartered in
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
Financial and Operating Summary (unaudited, in millions, except per share amounts) |
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|
Three Months Ended |
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|
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|
||||||
|
|
2024 |
|
2023 |
||||
Statement of income (loss) data: |
|
|
|
|
||||
Revenue |
|
|
|
|
||||
Admissions |
|
$ |
289.8 |
|
|
$ |
311.0 |
|
Concession |
|
|
224.2 |
|
|
|
235.8 |
|
Other |
|
|
65.2 |
|
|
|
63.9 |
|
Total revenue |
|
$ |
579.2 |
|
|
$ |
610.7 |
|
Cost of operations |
|
|
|
|
||||
Film rentals and advertising |
|
|
154.3 |
|
|
|
166.7 |
|
Concession supplies |
|
|
44.0 |
|
|
|
43.6 |
|
Salaries and wages |
|
|
86.9 |
|
|
|
86.2 |
|
Facility lease expense |
|
|
77.3 |
|
|
|
79.5 |
|
Utilities and other |
|
|
100.4 |
|
|
|
103.8 |
|
General and administrative expenses |
|
|
48.9 |
|
|
|
46.5 |
|
Depreciation and amortization |
|
|
49.4 |
|
|
|
54.9 |
|
Impairment of long-lived and other assets |
|
|
— |
|
|
|
0.7 |
|
Loss on disposal of assets and other |
|
|
0.4 |
|
|
|
0.3 |
|
Total cost of operations |
|
|
561.6 |
|
|
|
582.2 |
|
Operating income |
|
|
17.6 |
|
|
|
28.5 |
|
Other income (expense) |
|
|
|
|
||||
Interest expense |
|
|
(37.7 |
) |
|
|
(36.8 |
) |
Interest income |
|
|
13.6 |
|
|
|
11.9 |
|
Foreign currency exchange gain (loss) |
|
|
1.4 |
|
|
|
(2.2 |
) |
Interest expense - NCM |
|
|
(5.5 |
) |
|
|
(5.7 |
) |
Equity in income (loss) of affiliates |
|
|
3.8 |
|
|
|
(2.1 |
) |
Unrealized gain on investment in NCMI |
|
|
4.4 |
|
|
|
— |
|
Loss before income taxes |
|
|
(2.4 |
) |
|
|
(6.4 |
) |
Income tax benefit |
|
|
(27.7 |
) |
|
|
(3.9 |
) |
Net income (loss) |
|
$ |
25.3 |
|
|
$ |
(2.5 |
) |
Less: Net income attributable to noncontrolling interests |
|
|
0.5 |
|
|
|
0.6 |
|
Net income (loss) attributable to |
|
$ |
24.8 |
|
|
$ |
(3.1 |
) |
Net income (loss) per share attributable to |
|
|
|
|
||||
Basic |
|
$ |
0.20 |
|
|
$ |
(0.03 |
) |
Diluted |
|
$ |
0.19 |
|
|
$ |
(0.03 |
) |
Weighted average shares outstanding |
|
|
|
|
||||
Basic |
|
|
119.5 |
|
|
|
118.8 |
|
Diluted |
|
|
152.4 |
|
|
|
118.8 |
|
Other Operating Data (unaudited, in millions) |
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|
As of |
|
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|
|
|
|
|
|
|
||
Balance sheet data: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
788.6 |
|
|
$ |
849.1 |
|
Theatre properties and equipment, net |
|
$ |
1,159.7 |
|
|
$ |
1,161.7 |
|
Total assets |
|
$ |
4,780.1 |
|
|
$ |
4,836.8 |
|
Total long-term debt, net of unamortized debt issuance costs and original issue discount |
|
$ |
2,399.4 |
|
|
$ |
2,399.1 |
|
Total equity |
|
$ |
335.4 |
|
|
$ |
318.8 |
|
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows (used for) provided by: |
|
|
|
|
|
|
||
Operating activities (1) |
|
$ |
(22.7 |
) |
|
$ |
7.9 |
|
Investing activities |
|
$ |
(23.3 |
) |
|
$ |
(26.3 |
) |
Financing activities |
|
$ |
(10.4 |
) |
|
$ |
(4.9 |
) |
(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 |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Reconciliation of free cash flow: |
|
|
|
|
|
|
||
Cash flows (used for) provided by operating activities |
|
$ |
(22.7 |
) |
|
$ |
7.9 |
|
Less: capital expenditures |
|
|
23.5 |
|
|
|
26.3 |
|
Free cash flow |
|
$ |
(46.2 |
) |
|
$ |
(18.4 |
) |
Segment Information (unaudited, in millions, except per patron data) |
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|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
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|
Three Months Ended
|
|
|
Three Months Ended |
|
|
Three Months Ended
|
|
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Revenue and Attendance |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Constant
|
|
|
2024 |
|
|
2023 |
|
|||||||
Admissions revenue |
$ |
231.8 |
|
|
$ |
244.7 |
|
|
$ |
58.0 |
|
|
$ |
66.3 |
|
|
$ |
85.3 |
|
|
$ |
289.8 |
|
|
$ |
311.0 |
|
Concession revenue |
|
178.6 |
|
|
|
186.8 |
|
|
|
45.6 |
|
|
|
49.0 |
|
|
|
67.0 |
|
|
|
224.2 |
|
|
|
235.8 |
|
Other revenue |
|
46.6 |
|
|
|
47.6 |
|
|
|
18.6 |
|
|
|
16.3 |
|
|
|
27.3 |
|
|
|
65.2 |
|
|
|
63.9 |
|
Total revenue |
$ |
457.0 |
|
|
$ |
479.1 |
|
|
$ |
122.2 |
|
|
$ |
131.6 |
|
|
$ |
179.6 |
|
|
$ |
579.2 |
|
|
$ |
610.7 |
|
Attendance |
|
23.6 |
|
|
|
25.2 |
|
|
|
16.1 |
|
|
|
17.7 |
|
|
|
|
|
|
39.7 |
|
|
|
42.9 |
|
|
Average ticket price |
$ |
9.82 |
|
|
$ |
9.71 |
|
|
$ |
3.60 |
|
|
$ |
3.75 |
|
|
$ |
5.30 |
|
|
$ |
7.30 |
|
|
$ |
7.25 |
|
Concession revenue per patron |
$ |
7.57 |
|
|
$ |
7.41 |
|
|
$ |
2.83 |
|
|
$ |
2.77 |
|
|
$ |
4.16 |
|
|
$ |
5.65 |
|
|
$ |
5.50 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
126.3 |
|
|
$ |
133.5 |
|
|
$ |
28.0 |
|
|
$ |
33.2 |
|
|
$ |
42.1 |
|
|
$ |
154.3 |
|
|
$ |
166.7 |
|
Concession supplies |
$ |
34.3 |
|
|
$ |
32.9 |
|
|
$ |
9.7 |
|
|
$ |
10.7 |
|
|
$ |
14.1 |
|
|
$ |
44.0 |
|
|
$ |
43.6 |
|
Salaries and wages |
$ |
72.5 |
|
|
$ |
71.5 |
|
|
$ |
14.4 |
|
|
$ |
14.7 |
|
|
$ |
23.1 |
|
|
$ |
86.9 |
|
|
$ |
86.2 |
|
Facility lease expense |
$ |
60.5 |
|
|
$ |
62.0 |
|
|
$ |
16.8 |
|
|
$ |
17.5 |
|
|
$ |
21.2 |
|
|
$ |
77.3 |
|
|
$ |
79.5 |
|
Utilities and other |
$ |
78.3 |
|
|
$ |
80.5 |
|
|
$ |
22.1 |
|
|
$ |
23.3 |
|
|
$ |
33.8 |
|
|
$ |
100.4 |
|
|
$ |
103.8 |
|
(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 |
Other Segment Information (unaudited, in millions) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Adjusted EBITDA (1) |
|
|
|
|
|
|
||
|
|
$ |
49.1 |
|
|
$ |
63.4 |
|
International |
|
|
21.6 |
|
|
|
22.8 |
|
Total Adjusted EBITDA (1) |
|
$ |
70.7 |
|
|
$ |
86.2 |
|
|
|
|
|
|
|
|
||
Capital expenditures |
|
|
|
|
|
|
||
|
|
$ |
18.1 |
|
|
$ |
22.7 |
|
International |
|
|
5.4 |
|
|
|
3.6 |
|
Total capital expenditures |
|
$ |
23.5 |
|
|
$ |
26.3 |
|
(1) |
Adjusted EBITDA represents net income (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 (loss) as an indicator of operating performance or as an alternative to cash flow provided by (used for) 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 (loss) to Adjusted EBITDA is provided below. |
Reconciliation of Adjusted EBITDA (unaudited, in millions) |
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|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2024 |
|
2023 |
||||
Net income (loss) |
|
$ |
25.3 |
|
|
$ |
(2.5 |
) |
Add (deduct): |
|
|
|
|
|
|
||
Income tax benefit |
|
|
(27.7 |
) |
|
|
(3.9 |
) |
Interest expense (1) |
|
|
37.7 |
|
|
|
36.8 |
|
Other income, net (2) |
|
|
(17.7 |
) |
|
|
(1.9 |
) |
Cash distributions from equity investees (3) |
|
|
1.3 |
|
|
|
— |
|
Depreciation and amortization |
|
|
49.4 |
|
|
|
54.9 |
|
Impairment of long-lived and other assets |
|
|
— |
|
|
|
0.7 |
|
Loss on disposal of assets and other |
|
|
0.4 |
|
|
|
0.3 |
|
Non-cash rent expense |
|
|
(4.4 |
) |
|
|
(3.9 |
) |
Share-based awards compensation expense (4) |
|
|
6.4 |
|
|
|
5.7 |
|
Adjusted EBITDA |
|
$ |
70.7 |
|
|
$ |
86.2 |
|
(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 gain (loss), interest expense - NCM, equity in income (loss) of affiliates and unrealized gain on investment in NCMI. |
(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 |
(4) |
Non-cash expense included in general and administrative expenses. |
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