Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion
picture exhibitors in the world, today reported results for the
three months ended March 31, 2021. The Company’s financial results
continue to be impacted by the COVID-19 pandemic, as the Company
continues to reopen its theatres based on local mandates. As of
March 31, 2021, the Company had 301 domestic and 78 international
theatres open, showing a limited volume of new releases along with
library content during reduced operating hours.
Cinemark Holdings, Inc.’s total revenues for the three months
ended March 31, 2021 were $114.4 million compared to $543.6 million
for the three months ended March 31, 2020 For the three months
ended March 31, 2021, admissions revenues were $56.1 million and
concession revenues were $39.5 million. For the three months ended
March 31, 2021, attendance was 7.7 million patrons, average ticket
price was $7.25 and concession revenues per patron were $5.10.
Net loss attributable to Cinemark Holdings, Inc. for the three
months ended March 31, 2021 was $208.2 million compared to $59.6
million for the three months ended March 31, 2020. Diluted loss per
share for the three months ended March 31, 2021 was $1.75 compared
to $0.51 for the three months ended March 31, 2020.
Adjusted EBITDA for the three months ended March 31, 2021 was
$(92.0) million compared to $66.2 million for the three months
ended March 31, 2020. Reconciliations of non-GAAP financial
measures are provided in the financial schedules accompanying this
press release and at investors.cinemark.com.
“Over a year has passed since COVID-19 prompted the shutdown of
our global circuit, and today I am pleased to report that we are
now actively on the road to recovery,” stated Mark Zoradi, Cinemark
CEO. “We are highly optimistic about theatrical exhibition’s
resurgence in the U.S. over the coming months on account of a range
of factors, including the rapid pace of the vaccine rollout,
improving consumer sentiment about returning to movie theaters,
recent box office successes and confirmation of consistent product
supply. On a global basis, we remain confident that, like the U.S.,
other countries will quickly recover as lockdowns reign in the
virus and vaccines are more widely disseminated.”
As of March 31, 2021, the Company’s aggregate screen count was
5,872 and the Company had commitments to open six new theatres and
72 screens during the remainder of 2021 and 13 new theatres and 123
screens subsequent to 2021.
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 523 theatres with 5,872
screens in 42 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
26, 2021 and the Current Report on Form 8-K filed March 4, 2021.
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
March 31,
2021
2020
Statement of income data:
Revenues
Admissions
$
56,121
$
292,462
Concession
39,488
190,356
Other
18,752
60,798
Total revenues
114,361
543,616
Cost of operations
Film rentals and advertising
23,205
156,617
Concession supplies
7,140
34,812
Salaries and wages
31,166
87,544
Facility lease expense
64,829
82,241
Utilities and other
49,144
100,523
General and administrative expenses
35,858
41,018
Depreciation and amortization
68,160
65,256
Impairment of long-lived assets
—
16,619
Restructuring costs
(208
)
—
Loss on disposal of assets and other
4,505
1,905
Total cost of operations
283,799
586,535
Operating loss
(169,438
)
(42,919
)
Interest expense
(36,553
)
(24,666
)
Interest income
646
2,084
Loss on extinguishment of debt
(2,603
)
-
Foreign currency exchange loss
(2,974
)
(4,848
)
Distributions from NCM
77
5,224
Interest expense - NCM
(5,835
)
(5,891
)
Equity in income (loss) of affiliates
(6,806
)
8,486
Loss before income taxes
(223,486
)
(62,530
)
Income taxes
(14,643
)
(3,108
)
Net loss
$
(208,843
)
$
(59,422
)
Less: Net income (loss) attributable to
noncontrolling interests
(602
)
169
Net loss attributable to Cinemark
Holdings, Inc.
$
(208,241
)
$
(59,591
)
Loss per share attributable to Cinemark
Holdings, Inc.'s common stockholders
Basic
$
(1.75
)
$
(0.51
)
Diluted
$
(1.75
)
$
(0.51
)
Weighted average shares outstanding -
Diluted
117,177
116,496
Other Operating Data
(unaudited, in thousands)
As of
As of
March 31,
December 31,
2021
2020
Balance sheet data:
Cash and cash equivalents
$
512,828
$
655,338
Theatre properties and equipment, net
$
1,533,298
$
1,615,062
Total assets
$
5,296,954
$
5,562,922
Long-term debt, including current portion,
net of unamortized debt discounts and debt issue costs
$
2,495,148
$
2,395,218
Equity
$
523,983
$
798,969
Segment Information
(unaudited, in millions, except
per patron data)
U.S. Operating Segment
International Operating
Segment
Consolidated
Three Months Ended March
31,
Three Months Ended March
31,
Constant Currency (1)
Three Months Ended March
31,
Revenues
2021
2020
%
Change
2021
2020
%
Change
2021
%
Change
2021
2020
%
Change
Admissions revenues
$
48.5
$
232.3
$
7.6
$
60.2
$
8.6
$
56.1
$
292.5
Concession revenues
$
33.0
$
152.8
$
6.5
$
37.6
$
7.1
$
39.5
$
190.4
Other revenues
$
15.6
$
42.3
$
3.2
$
18.4
$
3.7
$
18.8
$
60.7
Total revenues
$
97.1
$
427.4
$
17.3
$
116.2
$
19.4
$
114.4
$
543.6
Attendance
5.2
27.9
2.5
17.9
7.7
45.8
Average ticket price
$
9.25
$
8.33
11.0
%
$
3.05
$
3.36
(9.2
)%
$
3.45
2.7
%
$
7.25
$
6.39
13.5
%
Concession revenues per patron
$
6.30
$
5.48
15.0
%
$
2.58
$
2.10
22.9
%
$
2.82
34.3
%
$
5.10
$
4.16
22.6
%
U.S. Operating Segment
International Operating
Segment
Consolidated
Three Months Ended
Three Months Ended
Three Months Ended
March 31,
March 31,
March 31,
Cost of Operations
2021
2020
2021
2020
Constant Currency (1)
2021
2021
2020
Film rentals and advertising
$
19.3
$
128.0
$
3.9
$
28.6
$
4.4
$
23.2
$
156.6
Concession supplies
$
5.5
$
25.6
$
1.7
$
9.2
$
1.9
$
7.2
$
34.8
Salaries and wages
$
24.9
$
71.2
$
6.3
$
16.4
$
7.2
$
31.2
$
87.6
Facility lease expense
$
59.0
$
65.4
$
5.8
$
16.8
$
6.3
$
64.8
$
82.2
Utilities and other
$
40.0
$
75.0
$
9.1
$
25.5
$
10.5
$
49.1
$
100.5
(1)
Constant currency amounts, which are
non-GAAP measurements, were calculated using the average exchange
rate for the corresponding month for 2020. 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
March 31,
2021
2020
Adjusted EBITDA (1)
U.S.
$
(76,997
)
$
56,072
International
(14,953
)
10,139
Total Adjusted EBITDA (1)
$
(91,950
)
$
66,211
Capital expenditures
U.S.
$
13,641
$
25,673
International
4,039
8,470
Total capital expenditures
$
17,680
$
34,143
(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
March 31,
2021
2020
Net income (loss)
$
(208,843
)
$
(59,422
)
Add (deduct):
Income taxes
(14,643
)
(3,108
)
Interest expense
36,553
24,666
Other expense, net (a)
14,971
169
Distributions from DCIP (b)
—
5,161
Cash distributions from other equity
investees (c)
156
11,445
Depreciation and amortization
68,160
65,256
Impairment of long-lived assets
—
16,619
Restructuring costs
(208
)
—
Loss on disposal of assets and other
4,505
1,905
Loss on extinguishment of debt
2,603
—
Non-cash rent
128
(591
)
Share based awards compensation expense
(d)
4,668
4,111
Adjusted EBITDA
$
(91,950
)
$
66,211
(a)
Includes interest income, foreign currency
exchange loss, interest expense – NCM and equity in income (loss)
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/20210507005037/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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