Segments - Holdings

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segments - Holdings

16.Segments - Holdings

The international market and U.S. market are managed as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, and Paraguay. The Company closed its one theatre in Curacao in January 2023 and sold the shares of its Ecuador subsidiary in September 2023. See Note 6 for a discussion of the sale of our Ecuador subsidiary. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenue. Holdings uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of, or allocate resources between, segments.

Holdings revenue, Adjusted EBITDA and capital expenditures by reportable operating segment

Below is a breakdown of selected financial information by reportable operating segment for Holdings:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Revenue
U.S.	$	686.2		$	514.4		$	1,907.2		$	1,491.6
International		192.3			138.7			531.3			370.5
Eliminations		(3.7	)		(2.7	)		(10.7	)		(7.1	)
Total revenue	$	874.8		$	650.4		$	2,427.8		$	1,855.0
Adjusted EBITDA
U.S.	$	151.2		$	70.7		$	395.4		$	196.2
International		45.6			28.8			119.1			66.8
Total Adjusted EBITDA	$	196.8		$	99.5		$	514.5		$	263.0
Capital expenditures
U.S.	$	26.9		$	20.2		$	70.7		$	50.7
International		8.2			4.5			19.0			14.6
Total capital expenditures	$	35.1		$	24.7		$	89.7		$	65.3

The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA for Holdings:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Net income (loss)	$	91.2		$	(23.9	)	$	209.1		$	(169.2	)
Add (deduct):
Income tax expense		21.4			3.4			29.8			6.3
Interest expense (1)		38.1			38.4			112.0			114.6
Other (income) expense, net (2)		(4.9	)		4.5			(18.9	)		19.2
Cash distributions from equity investees (3)		1.6			—			3.2			1.5
Depreciation and amortization		51.9			58.3			159.6			181.0
Impairment of long-lived and other assets		2.0			15.2			12.1			107.5
Restructuring costs		—			—			—			(0.2	)
(Gain) loss on disposal of assets and other		(6.1	)		1.2			(8.8	)		(6.4	)
Loss on debt extinguishment and refinancing		—			—			10.7			—
Non-cash rent expense		(4.8	)		(2.8	)		(13.2	)		(7.5	)
Share-based awards compensation expense		6.4			5.2			18.9			16.2
Adjusted EBITDA	$	196.8		$	99.5		$	514.5		$	263.0

(1)Includes amortization of debt issuance costs, amortization of original issue discount, and amortization of accumulated (gains) losses for amended swap agreements.

(2)Includes interest income, foreign currency exchange and other related losses, interest expense - NCM, equity in income (loss) of affiliates and unrealized gain 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.

Financial Information About Geographic Areas

Below is a breakdown of selected financial information for the Company by geographic area:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Revenue	2023			2022			2023			2022
U.S.	$	686.2		$	514.4		$	1,907.2		$	1,491.6
Brazil		70.3			45.2			183.5			133.1
Other international countries		122.0			93.5			347.8			237.4
Eliminations		(3.7	)		(2.7	)		(10.7	)		(7.1	)
Total	$	874.8		$	650.4		$	2,427.8		$	1,855.0

	As of		As of
Theatre properties and equipment, net	September 30, 2023		December 31, 2022
U.S.	$	1,008.5	$	1,075.3
Brazil		51.7		49.5
Other international countries		94.2		107.3
Total	$	1,154.4	$	1,232.1