Cinemark Holdings, Inc. Reports First Quarter 2022 Results
Cinemark Holdings, Inc. (NYSE: CNK) reported substantial recovery in the first quarter of 2022, with total revenues of $460.5 million, up 303% from $114.4 million in Q1 2021. Admissions and concessions revenues reached $235.8 million and $173.0 million, respectively, driven by 33.1 million patrons. Although the company faced a net loss of $(74.0) million, it represented an improvement from a loss of $(208.3) million in the same quarter the previous year. Adjusted EBITDA was $25.2 million, a significant turnaround from $(92.0) million in 2021, highlighting strong box office performance and effective cost management.
- Revenue increased 303% to $460.5 million from $114.4 million year-over-year.
- Admissions revenue of $235.8 million and concession revenue of $173.0 million.
- Adjusted EBITDA improved to $25.2 million from $(92.0) million year-over-year.
- Cinemark outperformed North American industry box office recovery by 650 basis points.
- Net loss of $(74.0) million compared to $(208.3) million in the previous year.
- Continued losses with a diluted loss per share of $(0.62).
Cinemark far outpaced industry recovery relative to pre-pandemic box office performance by 650 basis points domestically and 500 basis points internationally
Substantial progress in year-over-year recovery with over
Box office momentum accelerated in the second half of the first quarter and continues to build
Net loss attributable to
Adjusted EBITDA for the three months ended
“Cinemark once again outpaced North American industry box office recovery by a significant 650 basis points when comparing first quarter 2022 against first quarter 2019. Similarly, our international admissions surpassed their corresponding industry results by 500 basis points,” stated
Gamble continued, “We are extremely pleased with the improving rate of box office recovery, and we are highly optimistic about its continued momentum based on the compelling slate of films ahead. Given our consistent focus on providing our guests an exceptional, cinematic experience, and our concentrated efforts to reignite theatrical moviegoing, Cinemark is well-positioned to fully capitalize on surging demand as we head into the exciting summer movie season and beyond.”
As of
Conference Call/Webcast – Today at
Telephone: via 800-374-1346 or 706-679-3149 (for international callers).
Live Webcast/Replay: Available live at https://ir.cinemark.com. A replay will be available following the call and archived for a limited time.
About
Headquartered in
Forward-looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management’s assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include:
- future revenues, expenses and profitability;
- currency exchange rate and inflationary impacts;
- the future development and expected growth of our business;
- projected capital expenditures;
- access to capital resources;
- attendance at movies generally or in any of the markets in which we operate;
- the number and diversity of popular movies released, the length of exclusive theatrical release windows, and our ability to successfully license and exhibit popular films;
- national and international growth in our industry;
- competition from other exhibitors, alternative forms of entertainment and content delivery via streaming and other formats;
- determinations in lawsuits in which we are a party; and
- the impact of the COVID-19 pandemic on us and the motion picture exhibition industry.
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
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Financial and Operating Summary |
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(unaudited, in millions, except per share amounts) |
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Three Months Ended |
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2022 |
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2021 |
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Statement of loss data: |
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Revenues |
|
|
|
|
|
|
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Admissions |
|
$ |
235.8 |
|
|
$ |
56.1 |
|
Concession |
|
|
173.0 |
|
|
|
39.5 |
|
Other |
|
|
51.7 |
|
|
|
18.8 |
|
Total revenues |
|
|
460.5 |
|
|
|
114.4 |
|
Cost of operations |
|
|
|
|
|
|
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Film rentals and advertising |
|
|
127.6 |
|
|
|
23.2 |
|
Concession supplies |
|
|
30.0 |
|
|
|
7.2 |
|
Salaries and wages |
|
|
79.8 |
|
|
|
31.2 |
|
Facility lease expense |
|
|
73.7 |
|
|
|
64.8 |
|
Utilities and other |
|
|
86.9 |
|
|
|
49.1 |
|
General and administrative expenses |
|
|
40.7 |
|
|
|
35.9 |
|
Depreciation and amortization |
|
|
61.7 |
|
|
|
68.2 |
|
Restructuring costs |
|
|
— |
|
|
|
(0.2 |
) |
(Gain) loss on disposal of assets and other |
|
|
(6.9 |
) |
|
|
4.5 |
|
Total cost of operations |
|
|
493.5 |
|
|
|
283.9 |
|
Operating loss |
|
|
(33.0 |
) |
|
|
(169.5 |
) |
Other income (expense) |
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|
|
|
|
|
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Interest expense |
|
|
(38.1 |
) |
|
|
(36.6 |
) |
Interest income |
|
|
1.6 |
|
|
|
0.6 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
(2.6 |
) |
Foreign currency exchange gain (loss) |
|
|
3.2 |
|
|
|
(3.0 |
) |
Distributions from NCM |
|
|
— |
|
|
|
0.1 |
|
Interest expense - NCM |
|
|
(5.8 |
) |
|
|
(5.8 |
) |
Equity in loss of affiliates |
|
|
(2.2 |
) |
|
|
(6.8 |
) |
Loss before income taxes |
|
|
(74.3 |
) |
|
|
(223.6 |
) |
Income tax benefit |
|
|
(1.8 |
) |
|
|
(14.7 |
) |
Net loss |
|
$ |
(72.5 |
) |
|
$ |
(208.9 |
) |
Less: Net income (loss) attributable to noncontrolling interests |
|
|
1.5 |
|
|
|
(0.6 |
) |
Net loss attributable to |
|
$ |
(74.0 |
) |
|
$ |
(208.3 |
) |
Loss per share attributable to |
|
|
|
|
|
|
||
Basic |
|
$ |
(0.62 |
) |
|
$ |
(1.75 |
) |
Diluted |
|
$ |
(0.62 |
) |
|
$ |
(1.75 |
) |
Weighted average shares outstanding - Diluted |
|
|
117.9 |
|
|
|
117.2 |
|
Other Operating Data |
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(unaudited, in millions) |
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As of |
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As of |
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2022 |
|
2021 |
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Balance sheet data: |
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|
|
|
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Cash and cash equivalents |
|
$ |
568.6 |
|
$ |
707.3 |
|
|
Theatre properties and equipment, net |
|
$ |
1,349.0 |
|
$ |
1,382.9 |
|
|
Total assets |
|
$ |
5,024.3 |
|
$ |
5,230.6 |
|
|
Long-term debt, including current portion, net of unamortized debt issue costs |
|
$ |
2,503.8 |
|
$ |
2,500.6 |
|
|
Equity |
|
$ |
299.4 |
|
$ |
334.5 |
|
|
Segment Information |
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(unaudited, in millions, except per patron data) |
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International Operating Segment |
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Consolidated |
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Three Months Ended
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Three Months Ended
|
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Constant
|
|
Three Months Ended
|
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Revenues and KPIs |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
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Admissions revenues |
|
$ |
191.8 |
|
|
$ |
48.5 |
|
|
$ |
44.0 |
|
|
$ |
7.6 |
|
|
$ |
46.4 |
|
|
$ |
235.8 |
|
|
$ |
56.1 |
|
Concession revenues |
|
|
141.1 |
|
|
|
33.0 |
|
|
|
31.9 |
|
|
|
6.5 |
|
|
|
33.9 |
|
|
|
173.0 |
|
|
|
39.5 |
|
Other revenues |
|
|
39.1 |
|
|
|
15.6 |
|
|
|
12.6 |
|
|
|
3.2 |
|
|
13.1 |
|
|
|
51.7 |
|
|
|
18.8 |
|
|
Total revenues |
|
$ |
372.0 |
|
|
$ |
97.1 |
|
|
$ |
88.5 |
|
|
$ |
17.3 |
|
|
$ |
93.4 |
|
|
$ |
460.5 |
|
|
$ |
114.4 |
|
Attendance |
|
|
20.7 |
|
|
|
5.2 |
|
|
|
12.4 |
|
|
|
2.5 |
|
|
|
|
|
|
33.1 |
|
|
|
7.7 |
|
|
Average ticket price |
|
$ |
9.27 |
|
|
$ |
9.25 |
|
|
$ |
3.55 |
|
|
$ |
3.05 |
|
|
$ |
3.74 |
|
|
$ |
7.12 |
|
|
$ |
7.25 |
|
Concession revenues per patron |
|
$ |
6.82 |
|
|
$ |
6.30 |
|
|
$ |
2.57 |
|
|
$ |
2.58 |
|
|
$ |
2.73 |
|
|
$ |
5.23 |
|
|
$ |
5.10 |
|
|
|
|
|
International Operating Segment |
|
Consolidated |
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Three Months Ended |
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Three Months Ended |
|
Three Months Ended |
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Cost of Operations |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Constant
|
|
2022 |
|
2021 |
||||||||||||||
Film rentals and advertising |
|
$ |
106.2 |
|
|
$ |
19.3 |
|
|
$ |
21.4 |
|
|
$ |
3.9 |
|
|
$ |
22.6 |
|
|
$ |
127.6 |
|
|
$ |
23.2 |
|
Concession supplies |
|
$ |
22.9 |
|
|
$ |
5.5 |
|
|
$ |
7.1 |
|
|
$ |
1.7 |
|
|
$ |
7.6 |
|
|
$ |
30.0 |
|
|
$ |
7.2 |
|
Salaries and wages |
|
$ |
67.1 |
|
|
$ |
24.9 |
|
|
$ |
12.7 |
|
|
$ |
6.3 |
|
|
$ |
13.4 |
|
|
$ |
79.8 |
|
|
$ |
31.2 |
|
Facility lease expense |
|
$ |
62.5 |
|
|
$ |
59.0 |
|
|
$ |
11.2 |
|
|
$ |
5.8 |
|
|
$ |
11.7 |
|
|
$ |
73.7 |
|
|
$ |
64.8 |
|
Utilities and other |
|
$ |
68.1 |
|
|
$ |
40.0 |
|
|
$ |
18.8 |
|
|
$ |
9.1 |
|
|
$ |
19.7 |
|
|
$ |
86.9 |
|
|
$ |
49.1 |
|
| (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 |
Other Segment Information |
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(unaudited, in millions) |
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|
|
Three Months Ended |
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|
|
|
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|
|
2022 |
|
2021 |
||||
Adjusted EBITDA (1) |
|
|
|
|
|
|
||
|
|
$ |
14.4 |
|
|
$ |
(77.0 |
) |
International |
|
|
10.8 |
|
|
|
(15.0 |
) |
Total Adjusted EBITDA (1) |
|
$ |
25.2 |
|
|
$ |
(92.0 |
) |
|
|
|
|
|
|
|
||
Capital expenditures |
|
|
|
|
|
|
||
|
|
$ |
14.0 |
|
|
$ |
13.7 |
|
International |
|
|
4.7 |
|
|
|
4.0 |
|
Total capital expenditures |
|
$ |
18.7 |
|
|
$ |
17.7 |
|
| (1) | Adjusted EBITDA represents net loss 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. A reconciliation of net loss to Adjusted EBITDA is provided below. |
Reconciliation of Adjusted EBITDA |
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(unaudited, in millions) |
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|
|
Three Months Ended |
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|
|
|
||||||
|
|
2022 |
|
2021 |
||||
Net loss |
|
$ |
(72.5 |
) |
|
$ |
(208.9 |
) |
Add (deduct): |
|
|
|
|
|
|
||
Income taxes |
|
|
(1.8 |
) |
|
|
(14.7 |
) |
Interest expense (1) |
|
|
38.1 |
|
|
|
36.6 |
|
Other expense, net (2) |
|
|
3.2 |
|
|
|
15.0 |
|
Cash distributions from other equity investees (3) |
|
|
0.6 |
|
|
|
0.1 |
|
Depreciation and amortization |
|
|
61.7 |
|
|
|
68.2 |
|
Restructuring costs |
|
|
— |
|
|
|
(0.2 |
) |
(Gain) loss on disposal of assets and other |
|
|
(6.9 |
) |
|
|
4.5 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2.6 |
|
Non-cash rent |
|
|
(2.3 |
) |
|
|
0.1 |
|
Share based awards compensation expense (4) |
|
|
5.1 |
|
|
|
4.7 |
|
Adjusted EBITDA |
|
$ |
25.2 |
|
|
$ |
(92.0 |
) |
(1) |
Includes amortization of debt issuance costs and amortization of accumulated losses for amended swap agreements. |
(2) |
Includes interest income, foreign currency exchange gain (loss), equity in loss of affiliates and interest expense - NCM and excludes distributions from NCM. |
(3) |
Includes cash distributions received from equity investees that were recorded as a reduction of the respective investment balances. These distributions are reported entirely within the |
(4) |
Non-cash expense included in general and administrative expenses. |
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FAQ
What were Cinemark's total revenues for Q1 2022?
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How many patrons attended Cinemark theatres in Q1 2022?
