Cinemark Holdings, Inc. Reports First Quarter 2024 Results
Cinemark Holdings, Inc. reported first-quarter 2024 results, including total revenue of $579 million, net income of $25 million, and Adjusted EBITDA of $71 million with a 12.2% margin. The company strengthened its balance sheet by redeeming $150 million of senior secured notes. Despite strike-induced headwinds, the North American industry box office performed well, demonstrating consumer enthusiasm for cinematic experiences. Cinemark entertained 40 million moviegoers globally, surpassed industry recovery benchmarks, and maintained market share growth. Financially, revenue decreased by 5.2% due to lower attendance, but net income improved from a loss to $24.8 million. Adjusted EBITDA decreased to $70.7 million. The company remains optimistic about the industry outlook and its competitive position.
The company entertained 40 million moviegoers globally, surpassing industry recovery benchmarks, and maintained market share growth.
Cinemark has a positive long-term outlook for the industry and believes it is uniquely positioned to drive value creation.
The company strengthened its balance sheet by redeeming $150 million of senior secured notes, demonstrating a positive financial move.
Total revenue decreased by 5.2% to $579.2 million, driven by a 7.5% decrease in attendance to 39.7 million patrons.
Adjusted EBITDA decreased to $70.7 million for the quarter, indicating challenges in a dynamic operating environment.
Insights
The earnings report from Cinemark Holdings is a solid demonstration of the company's resilience in a challenging market. The 12.2% Adjusted EBITDA margin indicates a robust cost structure and effective management during a period where industry headwinds were prominent. Cinemark's strategy to redeem the high-interest senior secured notes ahead of maturity not only reduces future interest expenses but also showcases the management's confidence in the company's financial health and long-term prospects.
However, the slight decline in revenue and attendance signifies the ongoing transition of the movie theater industry in the face of digital streaming competition. While the company outperformed industry recovery metrics, these gains may be reflective of market share shifts rather than a rapidly growing market. Investors should monitor consumer moviegoing patterns closely as they can be indicative of the industry's long-term trajectory.
With Cinemark's reported outperformance in both domestic box office results and international admissions, particularly in Latin America, the company is leveraging its geographical diversity effectively. This suggests a competitive edge in international markets which can be pivotal for growth, especially when North American markets are showing signs of stagnation.
Attention should be given to the broader industry context, including the recovery of film volume and strength of content appeal, as these factors directly influence theater attendance. While the report is optimistic, investors should remain cautious and balance this with a clear view of the potential challenges posed by alternative entertainment platforms, changing consumer habits and the economic landscape influencing discretionary spending.
Delivered Total Revenue of
Further strengthened balance sheet by redeeming the remaining
“2024 North American industry box office has kicked off better than expected, declining only modestly versus 2023 despite last year’s strike-induced headwinds. Outsized results across a wide array of diverse films provide further validation that consumer enthusiasm for experiencing compelling content in an elevated, cinematic, theatrical setting remains robust,” stated Sean Gamble, Cinemark’s President and CEO.
“During the quarter, our sensational team once again demonstrated their skillful ability to navigate a dynamic operating environment, delivering results that outpaced the market. As we look ahead, encouraging indicators pertaining to consumer moviegoing patterns, film volume recovery, and strength of content appeal continue to provide a positive long-term outlook for our industry. Moreover, we believe Cinemark is uniquely positioned to thrive on account of our advantaged competitive strengths and numerous levers to drive value creation.”
Q1 2024 Earnings Highlights
- Entertained 40 million moviegoers across our global footprint.
- Delivered domestic box office results that surpassed North American industry recovery relative to Q1 2019 by more than 700 basis points; international admissions outpaced our corresponding Latin American industry recovery by approximately 600 basis points.
-
Sustained market share growth versus FY 2019 of more than 100 basis points in the
U.S. andLatin America ; continued to maintain the most significant market share gains compared to pre-pandemic results of all major exhibitors. -
Reported
$579 million $25 million $0.19 -
Generated Adjusted EBITDA of
$71 million 12.2% Adjusted EBITDA margin, demonstrating skillful navigation in a dynamic operating environment impacted by strike-induced headwinds. -
Maintained a healthy balance sheet with cash balance of
$789 million $150 million 8.75% senior secured notes on May 1, 2024, in advance of their maturity in May 2025, underscoring our positive long-term outlook for our company and our industry.
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months ended March 31, 2024 decreased
Net income attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2024 was
Adjusted EBITDA for the three months ended March 31, 2024 was
As of March 31, 2024, the Company’s aggregate screen count was 5,708, and the Company had commitments to open 3 new theatres and 33 screens over the next two years.
Webcast – Today at 8:30 AM ET
Live Webcast/Replay: Available at https://ir.cinemark.com. A replay will be available following the call and archived for a limited time.
About Cinemark Holdings, Inc.
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 revenue, 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 ongoing recovery of our business and the motion picture exhibition industry from the effects of the COVID-19 pandemic and the 2023 writers' and actors' guilds strikes.
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. 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 16, 2024. 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 millions, except per share amounts) |
||||||||
|
|
Three Months Ended |
||||||
|
|
March 31, |
||||||
|
|
2024 |
|
2023 |
||||
Statement of income (loss) data: |
|
|
|
|
||||
Revenue |
|
|
|
|
||||
Admissions |
|
$ |
289.8 |
|
|
$ |
311.0 |
|
Concession |
|
|
224.2 |
|
|
|
235.8 |
|
Other |
|
|
65.2 |
|
|
|
63.9 |
|
Total revenue |
|
$ |
579.2 |
|
|
$ |
610.7 |
|
Cost of operations |
|
|
|
|
||||
Film rentals and advertising |
|
|
154.3 |
|
|
|
166.7 |
|
Concession supplies |
|
|
44.0 |
|
|
|
43.6 |
|
Salaries and wages |
|
|
86.9 |
|
|
|
86.2 |
|
Facility lease expense |
|
|
77.3 |
|
|
|
79.5 |
|
Utilities and other |
|
|
100.4 |
|
|
|
103.8 |
|
General and administrative expenses |
|
|
48.9 |
|
|
|
46.5 |
|
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 |
|
Total cost of operations |
|
|
561.6 |
|
|
|
582.2 |
|
Operating income |
|
|
17.6 |
|
|
|
28.5 |
|
Other income (expense) |
|
|
|
|
||||
Interest expense |
|
|
(37.7 |
) |
|
|
(36.8 |
) |
Interest income |
|
|
13.6 |
|
|
|
11.9 |
|
Foreign currency exchange gain (loss) |
|
|
1.4 |
|
|
|
(2.2 |
) |
Interest expense - NCM |
|
|
(5.5 |
) |
|
|
(5.7 |
) |
Equity in income (loss) of affiliates |
|
|
3.8 |
|
|
|
(2.1 |
) |
Unrealized gain on investment in NCMI |
|
|
4.4 |
|
|
|
— |
|
Loss before income taxes |
|
|
(2.4 |
) |
|
|
(6.4 |
) |
Income tax benefit |
|
|
(27.7 |
) |
|
|
(3.9 |
) |
Net income (loss) |
|
$ |
25.3 |
|
|
$ |
(2.5 |
) |
Less: Net income attributable to noncontrolling interests |
|
|
0.5 |
|
|
|
0.6 |
|
Net income (loss) attributable to Cinemark Holdings, Inc. |
|
$ |
24.8 |
|
|
$ |
(3.1 |
) |
Net income (loss) per share attributable to Cinemark Holdings, Inc.'s common stockholders |
|
|
|
|
||||
Basic |
|
$ |
0.20 |
|
|
$ |
(0.03 |
) |
Diluted |
|
$ |
0.19 |
|
|
$ |
(0.03 |
) |
Weighted average shares outstanding |
|
|
|
|
||||
Basic |
|
|
119.5 |
|
|
|
118.8 |
|
Diluted |
|
|
152.4 |
|
|
|
118.8 |
|
Other Operating Data (unaudited, in millions) |
||||||||
|
|
As of |
|
|||||
|
|
March 31, 2024 |
|
|
December 31, 2023 |
|
||
Balance sheet data: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
788.6 |
|
|
$ |
849.1 |
|
Theatre properties and equipment, net |
|
$ |
1,159.7 |
|
|
$ |
1,161.7 |
|
Total assets |
|
$ |
4,780.1 |
|
|
$ |
4,836.8 |
|
Total long-term debt, net of unamortized debt issuance costs and original issue discount |
|
$ |
2,399.4 |
|
|
$ |
2,399.1 |
|
Total equity |
|
$ |
335.4 |
|
|
$ |
318.8 |
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows (used for) provided by: |
|
|
|
|
|
|
||
Operating activities (1) |
|
$ |
(22.7 |
) |
|
$ |
7.9 |
|
Investing activities |
|
$ |
(23.3 |
) |
|
$ |
(26.3 |
) |
Financing activities |
|
$ |
(10.4 |
) |
|
$ |
(4.9 |
) |
(1) |
We define free cash flow as cash flow provided by (used for) operating activities less capital expenditures. A reconciliation of cash flow provided by (used for) operating activities to free cash flow is provided below: |
|
|
Three Months Ended March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Reconciliation of free cash flow: |
|
|
|
|
|
|
||
Cash flows (used for) provided by operating activities |
|
$ |
(22.7 |
) |
|
$ |
7.9 |
|
Less: capital expenditures |
|
|
23.5 |
|
|
|
26.3 |
|
Free cash flow |
|
$ |
(46.2 |
) |
|
$ |
(18.4 |
) |
Segment Information (unaudited, in millions, except per patron data) |
|||||||||||||||||||||||||||
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
Three Months Ended
|
|
|
Three Months Ended March 31, |
|
|
Three Months Ended
|
|
|||||||||||||||||||
Revenue and Attendance |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Constant
|
|
|
2024 |
|
|
2023 |
|
|||||||
Admissions revenue |
$ |
231.8 |
|
|
$ |
244.7 |
|
|
$ |
58.0 |
|
|
$ |
66.3 |
|
|
$ |
85.3 |
|
|
$ |
289.8 |
|
|
$ |
311.0 |
|
Concession revenue |
|
178.6 |
|
|
|
186.8 |
|
|
|
45.6 |
|
|
|
49.0 |
|
|
|
67.0 |
|
|
|
224.2 |
|
|
|
235.8 |
|
Other revenue |
|
46.6 |
|
|
|
47.6 |
|
|
|
18.6 |
|
|
|
16.3 |
|
|
|
27.3 |
|
|
|
65.2 |
|
|
|
63.9 |
|
Total revenue |
$ |
457.0 |
|
|
$ |
479.1 |
|
|
$ |
122.2 |
|
|
$ |
131.6 |
|
|
$ |
179.6 |
|
|
$ |
579.2 |
|
|
$ |
610.7 |
|
Attendance |
|
23.6 |
|
|
|
25.2 |
|
|
|
16.1 |
|
|
|
17.7 |
|
|
|
|
|
|
39.7 |
|
|
|
42.9 |
|
|
Average ticket price |
$ |
9.82 |
|
|
$ |
9.71 |
|
|
$ |
3.60 |
|
|
$ |
3.75 |
|
|
$ |
5.30 |
|
|
$ |
7.30 |
|
|
$ |
7.25 |
|
Concession revenue per patron |
$ |
7.57 |
|
|
$ |
7.41 |
|
|
$ |
2.83 |
|
|
$ |
2.77 |
|
|
$ |
4.16 |
|
|
$ |
5.65 |
|
|
$ |
5.50 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
126.3 |
|
|
$ |
133.5 |
|
|
$ |
28.0 |
|
|
$ |
33.2 |
|
|
$ |
42.1 |
|
|
$ |
154.3 |
|
|
$ |
166.7 |
|
Concession supplies |
$ |
34.3 |
|
|
$ |
32.9 |
|
|
$ |
9.7 |
|
|
$ |
10.7 |
|
|
$ |
14.1 |
|
|
$ |
44.0 |
|
|
$ |
43.6 |
|
Salaries and wages |
$ |
72.5 |
|
|
$ |
71.5 |
|
|
$ |
14.4 |
|
|
$ |
14.7 |
|
|
$ |
23.1 |
|
|
$ |
86.9 |
|
|
$ |
86.2 |
|
Facility lease expense |
$ |
60.5 |
|
|
$ |
62.0 |
|
|
$ |
16.8 |
|
|
$ |
17.5 |
|
|
$ |
21.2 |
|
|
$ |
77.3 |
|
|
$ |
79.5 |
|
Utilities and other |
$ |
78.3 |
|
|
$ |
80.5 |
|
|
$ |
22.1 |
|
|
$ |
23.3 |
|
|
$ |
33.8 |
|
|
$ |
100.4 |
|
|
$ |
103.8 |
|
(1) |
Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2023. We translate the results of our international operating segment from local currencies into |
Other Segment Information (unaudited, in millions) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Adjusted EBITDA (1) |
|
|
|
|
|
|
||
|
|
$ |
49.1 |
|
|
$ |
63.4 |
|
International |
|
|
21.6 |
|
|
|
22.8 |
|
Total Adjusted EBITDA (1) |
|
$ |
70.7 |
|
|
$ |
86.2 |
|
|
|
|
|
|
|
|
||
Capital expenditures |
|
|
|
|
|
|
||
|
|
$ |
18.1 |
|
|
$ |
22.7 |
|
International |
|
|
5.4 |
|
|
|
3.6 |
|
Total capital expenditures |
|
$ |
23.5 |
|
|
$ |
26.3 |
|
(1) |
Adjusted EBITDA represents net income (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 (loss) as an indicator of operating performance or as an alternative to cash flow provided by (used for) 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 income (loss) to Adjusted EBITDA is provided below. |
Reconciliation of Adjusted EBITDA (unaudited, in millions) |
||||||||
|
|
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 (4) |
|
|
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) |
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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502536095/en/
Investor Relations Contact:
Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com
Media Contact:
Julia McCartha – 972-665-1322 or pr@cinemark.com
Source: Cinemark Holdings, Inc.
FAQ
How did Cinemark Holdings, Inc. perform in the first quarter of 2024?
What was Cinemark's total revenue for the three months ended March 31, 2024?
How many moviegoers did Cinemark entertain across its global footprint?
What was Cinemark's net income for the three months ended March 31, 2024?
What was Cinemark's Adjusted EBITDA for the three months ended March 31, 2024?
