Segments - Holdings

3 Months Ended

Mar. 31, 2024

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. 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.

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

	Three Months Ended
	March 31,
	2024			2023
Revenue
U.S.	$	459.1		$	481.7
International		122.2			131.6
Eliminations		(2.1	)		(2.6	)
Total revenue	$	579.2		$	610.7
Adjusted EBITDA
U.S.	$	49.1		$	63.4
International		21.6			22.8
Total Adjusted EBITDA	$	70.7		$	86.2
Capital expenditures
U.S.	$	18.1		$	22.7
International		5.4			3.6
Total capital expenditures	$	23.5		$	26.3

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

	Three Months Ended
	March 31,
	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		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)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 Holdings by geographic area:

	Three Months Ended
	March 31,
Revenue	2024			2023
U.S.	$	459.1		$	481.7
Brazil		54.3			44.5
Other international countries		67.9			87.1
Eliminations		(2.1	)		(2.6	)
Total	$	579.2		$	610.7

	As of		As of
Theatre properties and equipment, net	March 31, 2024		December 31, 2023
U.S.	$	1,006.2	$	1,002.1
Brazil		51.9		54.7
Other international countries		101.6		104.9
Total	$	1,159.7	$	1,161.7