EX-99.1 2 d71242exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(CINEMARK LOGO)
CINEMARK HOLDINGS, INC. REPORTS RESULTS FOR FOURTH QUARTER 2009 AND
DECLARES QUARTERLY CASH DIVIDEND
Plano, TX, February 25, 2010 — Cinemark Holdings, Inc. (NYSE: CNK), the second largest motion picture exhibitor in the world in terms of both attendance and the number of screens in operation, today reported results for the three months and year ended December 31, 2009.
Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2009 increased 31.5% to $536.4 million from $407.8 million for the three months ended December 31, 2008. For the three months ended December 31, 2009, admissions revenues increased 34.3% to $351.5 million and concession revenues increased 28.7% to $161.0 million. The increases were primarily related to a 21.2% increase in attendance, a 10.8% increase in average ticket prices and a 6.5% increase in concession revenues per patron.
Adjusted EBITDA for the three months ended December 31, 2009 increased 44.9% to $121.9 million, from $84.2 million for the three months ended December 31, 2008. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2009 was $39.9 million, compared to a net loss of $89.5 million for the three months ended December 31, 2008. The net loss in 2008 was primarily due to $105.4 million of non-cash impairment charges.
“Cinemark concluded a successful year with a very strong fourth quarter as we again outperformed the overall domestic box office. Cinemark’s geographic diversity continues to be a key strategic advantage as we add additional new state-of-the-art theatres to our footprint both in the U.S. and internationally. Once DCIP funding occurs, we are set to accelerate the pace of Cinemark’s digital screen installations, which will allow us to benefit further from the expanding pipeline of 3D motion pictures. During 2010, we will also continue to expand our footprint of XD Extreme Digital auditoriums, adding approximately 30 new XD auditoriums to our existing 16,” stated Alan Stock, Cinemark’s Chief Executive Officer.
Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2009 increased 13.4% to $1,976.5 million from $1,742.3 million for the year ended December 31, 2008. For the year ended December 31, 2009, admissions revenues increased 14.8% to $1,293.4 million and concession revenues increased 12.7% to $602.9 million. The increases were primarily related to a 12.0% increase in attendance and a 2.4% increase in average ticket prices.
Adjusted EBITDA for the year ended December 31, 2009 increased 20.3% to $445.5 million from $370.3 million for the year ended December 31, 2008. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Net income attributable to Cinemark Holdings, Inc. for the year ended December 31, 2009 was $97.1 million compared to a net loss of $48.3 million for the year ended December 31, 2008.
On December 31, 2009, the Company’s aggregate screen count was 4,896. As of December 31, 2009, Cinemark had commitments to open nine new theatres with 77 screens during 2010 and four additional new theatres with 60 screens subsequent to 2010.
The Company’s board of directors declared a cash dividend for its 2009 fourth quarter of $0.18 per share of common stock. The dividend will be paid on March 19, 2010 to stockholders of record on March 5, 2010.

 


 

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 www.cinemark.com in the Investor Relations section and archived for a limited time immediately following the call.
Call Replay: until February 28, 2010 via 800/642-1687 or 706/645-9291, passcode: 56042300.
About Cinemark Holdings, Inc.
Cinemark is a leading domestic and international motion picture exhibitor, operating 424 theatres with 4,896 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of December 31, 2009. For more information go to www.cinemark.com.
Contacts:
Robert Copple — 972/665-1500
Robert Rinderman — Jaffoni & Collins — 212/835-8500 or CNK@jcir.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 and 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 March 13, 2009 and quarterly reports on Form 10-Q. 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.

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Cinemark Holdings, Inc.
Financial and Operating Summary

(unaudited, in thousands)
                                 
    Three months ended   Years ended
    December 31,   December 31,
    2009   2008   2009   2008
Statement of Operations Data:
                               
Revenues
                               
Admissions
  $ 351,492     $ 261,732     $ 1,293,378     $ 1,126,977  
Concession
    160,985       125,129       602,880       534,836  
Other
    23,890       20,953       80,242       80,474  
     
Total revenues
  $ 536,367     $ 407,814     $ 1,976,500     $ 1,742,287  
     
 
                               
Cost of operations
                               
Film rentals and advertising
    194,215       141,049       708,160       612,248  
Concession supplies
    24,689       20,175       91,918       86,618  
Facility lease expense
    62,301       54,213       238,779       225,595  
Other theatre operating expenses
    112,765       95,595       426,097       386,764  
General and administrative expenses
    27,517       22,980       96,497       90,788  
Depreciation and amortization
    36,670       42,567       149,515       158,034  
Impairment of long-lived assets
    3,743       105,387       11,858       113,532  
Loss on sale of assets and other
    800       5,277       3,202       8,488  
         
Total cost of operations
    462,700       487,243       1,726,026       1,682,067  
         
Operating income (loss)
    73,667       (79,429 )     250,474       60,220  
Interest expense (1)
    (25,499 )     (26,311 )     (102,505 )     (116,058 )
Gain (loss) on early retirement of debt
          1,738       (27,878 )     1,698  
Distributions from NCM
    5,054       6,661       20,822       18,838  
Other income
    1,017       3,121       4,688       11,927  
         
Income (loss) before income taxes
    54,239       (94,220 )     145,601       (23,375 )
Income taxes
    13,696       (4,793 )     44,845       21,055  
         
Net income (loss)
  $ 40,543     $ (89,427 )   $ 100,756     $ (44,430 )
 
                               
Less: Net income attributable to noncontrolling interests
    681       120       3,648       3,895  
         
 
                               
Net income (loss) attributable to Cinemark Holdings, Inc.
  $ 39,862     $ (89,547 )   $ 97,108     $ (48,325 )
     
Earnings (loss) per share attributable to Cinemark Holdings, Inc.’s common stockholders:
                               
Basic
  $ 0.36     $ (0.82 )   $ 0.89     $ (0.45 )
         
Diluted
  $ 0.36     $ (0.82 )   $ 0.87     $ (0.45 )
         
 
                               
Weighted average diluted shares outstanding
    110,758       108,291       110,255       107,341  
         
 
                               
Other Financial Data:
                               
Adjusted EBITDA (2)
  $ 121,905     $ 84,157     $ 445,524     $ 370,292  
         
 
(1)   Includes amortization of debt issue costs and excludes capitalized interest.
 
(2)   Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net income (loss) is provided in the financial schedules accompanying this press release.

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    As of
    December 31,
    2009   2008
Balance Sheet Data (unaudited, in thousands):
               
Cash and cash equivalents
  $ 437,936     $ 349,603  
Theatre properties and equipment, net
    1,219,588       1,208,283  
Total assets
    3,276,448       3,065,708  
Long-term debt, including current portion
    1,543,705       1,508,462  
Stockholders’ equity
    914,628       824,227  
Segment Information
(unaudited, in thousands)
                                 
    Three months ended   Years ended
    December 31,   December 31,
    2009   2008   2009   2008
Revenues
                               
U.S.
  $ 419,671     $ 332,194     $ 1,558,736     $ 1,360,176  
International
    117,741       76,360       421,765       385,817  
Eliminations
    (1,045 )     (740 )     (4,001 )     (3,706 )
           
Total revenues
  $ 536,367     $ 407,814     $ 1,976,500     $ 1,742,287  
           
Adjusted EBITDA
                               
U.S.
  $ 101,483     $ 72,633     $ 361,685     $ 291,487  
International
    20,422       11,524       83,839       78,805  
           
Total Adjusted EBITDA
  $ 121,905     $ 84,157     $ 445,524     $ 370,292  
           
Capital Expenditures
                               
U.S.
  $ 22,844     $ 26,512     $ 81,695     $ 77,193  
International
    16,350       8,262       43,102       28,916  
           
Total capital expenditures
  $ 39,194     $ 34,774     $ 124,797     $ 106,109  
           

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Additional Segment Information (1)
(unaudited)
                                                                         
    U.S. Operating Segment   International Operating Segment   Consolidated
    Three Months           Three Months           Three Months    
    Ended           Ended           Ended    
    December 31,           December 31,           December 31,    
                    %                   %                   %
    2009   2008   Change   2009   2008   Change   2009   2008   Change
Admissions revenues
  $ 277.3     $ 216.6       28.0 %   $ 74.2     $ 45.1       64.5 %   $ 351.5     $ 261.7       34.3 %
Concession revenues
  $ 128.2     $ 103.0       24.5 %   $ 32.8     $ 22.1       48.4 %   $ 161.0     $ 125.1       28.7 %
Other revenues(2)
  $ 13.1     $ 11.9       10.1 %   $ 10.8     $ 9.1       18.7 %   $ 23.9     $ 21.0       13.8 %
Total revenues(2)
  $ 418.6     $ 331.5       26.3 %   $ 117.8     $ 76.3       54.4 %   $ 536.4     $ 407.8       31.5 %
Attendance
    42.9       35.7       20.2 %     18.2       14.7       23.8 %     61.1       50.4       21.2 %
Average ticket price
  $ 6.46     $ 6.07       6.4 %   $ 4.08     $ 3.07       32.9 %   $ 5.75     $ 5.19       10.8 %
Concession revenues per patron
  $ 2.99     $ 2.89       3.5 %   $ 1.80     $ 1.50       20.0 %   $ 2.64     $ 2.48       6.5 %
Revenues per average screen(2)
  $ 109,216     $ 89,124       22.5 %   $ 110,451     $ 73,671       49.9 %   $ 109,485     $ 85,756       27.7 %
                                                 
                    International Operating    
    U.S. Operating Segment   Segment   Consolidated
    Three Months Ended   Three Months Ended   Three Months Ended
    December 31,   December 31,   December 31,
    2009   2008   2009   2008   2009   2008
Film rentals and advertising
  $ 156.1     $ 118.9     $ 38.2     $ 22.1     $ 194.3     $ 141.0  
Concession supplies
    16.5       14.1       8.2       6.1       24.7       20.2  
Salaries and wages
    44.4       38.5       9.9       7.2       54.3       45.7  
Facility lease expense
    45.9       41.9       16.4       12.3       62.3       54.2  
Utilities and other
    40.8       38.3       17.6       11.6       58.4       49.9  
                                                                         
                            International Operating    
    U.S. Operating Segment   Segment   Consolidated
    Year Ended           Year Ended           Year Ended    
    December 31,           December 31,           December 31,    
                    %                   %                   %
    2009   2008   Change   2009   2008   Change   2009   2008   Change
Admissions revenues
  $ 1,025.9     $ 889.1       15.4 %   $ 267.5     $ 237.9       12.4 %   $ 1,293.4     $ 1,127.0       14.8 %
Concession revenues
  $ 485.2     $ 426.5       13.8 %   $ 117.7     $ 108.3       8.7 %   $ 602.9     $ 534.8       12.7 %
Other revenues(2)
  $ 43.6     $ 40.9       6.6 %   $ 36.6     $ 39.6       (7.6 )%   $ 80.2     $ 80.5       (0.4 )%
Total revenues(2)
  $ 1,554.7     $ 1,356.5       14.6 %   $ 421.8     $ 385.8       9.3 %   $ 1,976.5     $ 1,742.3       13.4 %
Attendance
    165.1       147.9       11.6 %     71.6       63.4       12.9 %     236.7       211.3       12.0 %
Average ticket price
  $ 6.21     $ 6.01       3.3 %   $ 3.74     $ 3.75       (0.3 )%   $ 5.46     $ 5.33       2.4 %
Concession revenues per patron
  $ 2.94     $ 2.88       2.1 %   $ 1.64     $ 1.71       (4.1 )%   $ 2.55     $ 2.53       0.8 %
Revenues per average screen(2)
  $ 408,017     $ 368,313       10.8 %   $ 401,828     $ 378,252       6.2 %   $ 406,681     $ 370,469       9.8 %

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    U.S. Operating   International    
    Segment   Operating Segment   Consolidated
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2009   2008   2009   2008   2009   2008
Film rentals and advertising
  $ 572.3     $ 494.6     $ 135.9     $ 117.6     $ 708.2     $ 612.2  
Concession supplies
    61.9       58.5       30.0       28.1       91.9       86.6  
Salaries and wages
    168.8       149.5       34.6       31.5       203.4       181.0  
Facility lease expense
    178.8       166.8       60.0       58.8       238.8       225.6  
Utilities and other
    163.5       151.8       59.2       54.0       222.7       205.8  
 
(1)   Revenues and attendance are in millions. Average ticket price, concession revenues per patron and revenues per average screen are in dollars. Theatre operating costs are in millions.
 
(2)   U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.
Reconciliation of Adjusted EBITDA
(unaudited, in thousands)
                                 
    Three months ended   Years ended
    December 31,   December 31,
    2009   2008   2009   2008
Net income (loss)
  $ 40,543     $ (89,427 )   $ 100,756     $ (44,430 )
Income taxes
    13,696       (4,793 )     44,845       21,055  
Interest expense
    25,499       26,311       102,505       116,058  
(Gain) loss on early retirement of debt
          (1,738 )     27,878       (1,698 )
Other income
    (1,017 )     (3,121 )     (4,688 )     (11,927 )
Depreciation and amortization
    36,670       42,567       149,515       158,034  
Impairment of long-lived assets
    3,743       105,387       11,858       113,532  
Loss on sale of assets and other
    800       5,277       3,202       8,488  
Deferred lease expenses (2)
    771       1,494       3,960       4,350  
Amortization of long-term prepaid rents (2)
    315       425       1,389       1,717  
Share based awards compensation expense (3)
    885       1,775       4,304       5,113  
           
Adjusted EBITDA (1)
  $ 121,905     $ 84,157     $ 445,524     $ 370,292  
           
 
(1)   Adjusted EBITDA as calculated in the chart above represents net income (loss) before income taxes, interest expense, (gain) loss on early retirement of debt, other income, depreciation and amortization, impairment of long-lived assets, loss on sale of assets and other, changes in deferred lease expense, amortization of long-term prepaid rents and share based awards compensation expense. 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 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.
 
(2)   Non-cash expense included in facility lease expense.
 
(3)   Non-cash expense included in general and administrative expenses.

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