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Cinemark Holdings, Inc. Reports Results for the First Quarter of 2021

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.

 

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