Cinemark Holdings, Inc. Reports Fourth Quarter and Full Year 2022 Results
Cinemark Holdings, Inc. (NYSE: CNK) reported a total revenue of $2.5 billion for 2022, marking a 63% increase from 2021. Despite a 10% decrease in Q4 revenue to $599.7 million, the company generated $136 million in cash flow from operations and $25 million in free cash flow. Admissions revenue was $304.6 million for Q4, with attendance of 39.2 million. The net loss for Q4 was $(99.3 million), compared to a profit of $5.7 million in the same period in 2021. For the full year, net loss was $(271.2 million), an improvement from $(422.8 million) in 2021. The company ended 2022 with a total of 5,847 screens.
- Total revenue increased by 63% to $2.5 billion in 2022.
- Generated $136 million of cash flow from operations and $25 million of free cash flow for the year.
- Net loss improved to $(271.2 million) from $(422.8 million) in 2021.
- Adjusted EBITDA for the year rose to $336.5 million from $80.0 million in 2021.
- Cinemark ended 2022 with 5,847 screens and plans for new theaters.
- Q4 revenue decreased by 10% to $599.7 million compared to Q4 2021.
- Net loss for Q4 was $(99.3 million), a significant decline from a net income of $5.7 million in Q4 2021.
- Diluted loss per share for the year was $(2.26), compared to $(3.55) in 2021.
Total revenue of
Full year box office results outpaced industry recovery by approximately 500 basis points versus 2019
Net loss attributable to
Adjusted EBITDA for the three months ended
“This past year represented another positive step forward for the theatrical exhibition industry’s recovery from the pandemic,” stated
“For Cinemark, 2022 marked a series of important results and milestones that exemplified our improved financial stability and outsized recovery relative to our industry and peers. Of particular significance, we ended the year with a sizable increase in worldwide revenue and Adjusted EBITDA, generating
“We remain highly optimistic about the many opportunities that lie ahead for our company, and as our industry continues to recover, Cinemark is poised to excel on account of our advantaged financial position, industry-leading operating capabilities, and sensational team.”
Net loss attributable to
Adjusted EBITDA for the twelve months ended
As of
Webcast – Today at
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. 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
Financial and Operating Summary (unaudited, in millions, except per share amounts) |
|||||||||||||||||
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Statement of income (loss) data: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Admissions |
|
$ |
304.6 |
|
|
$ |
344.9 |
|
|
$ |
1,246.9 |
|
|
$ |
780.0 |
|
|
Concession |
|
|
225.7 |
|
|
|
248.2 |
|
|
|
938.3 |
|
|
|
561.7 |
|
|
Other |
|
|
69.4 |
|
|
|
73.6 |
|
|
|
269.5 |
|
|
|
168.8 |
|
|
Total Revenue |
|
|
599.7 |
|
|
|
666.7 |
|
|
|
2,454.7 |
|
|
|
1,510.5 |
|
|
Cost of operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Film rentals and advertising |
|
|
173.3 |
|
|
|
198.2 |
|
|
|
704.4 |
|
|
|
415.0 |
|
|
Concession supplies |
|
|
40.5 |
|
|
|
43.7 |
|
|
|
169.3 |
|
|
|
97.9 |
|
|
Salaries and wages |
|
|
95.7 |
|
|
|
83.7 |
|
|
|
372.7 |
|
|
|
232.9 |
|
|
Facility lease expense |
|
|
77.1 |
|
|
|
79.2 |
|
|
|
308.3 |
|
|
|
280.0 |
|
|
Utilities and other |
|
|
103.4 |
|
|
|
90.8 |
|
|
|
407.2 |
|
|
|
282.9 |
|
|
General and administrative expenses |
|
|
43.6 |
|
|
|
49.3 |
|
|
|
177.6 |
|
|
|
161.1 |
|
|
Depreciation and amortization |
|
|
57.2 |
|
|
|
63.1 |
|
|
|
238.2 |
|
|
|
265.4 |
|
|
Impairment of long-lived assets |
|
|
66.6 |
|
|
|
13.3 |
|
|
|
174.1 |
|
|
|
20.8 |
|
|
Restructuring costs |
|
|
(0.3 |
) |
|
|
0.3 |
|
|
|
(0.5 |
) |
|
|
(1.0 |
) |
|
(Gain) loss on disposal of assets and other |
|
|
(0.4 |
) |
|
|
0.2 |
|
|
|
(6.8 |
) |
|
|
8.0 |
|
|
Total cost of operations |
|
|
656.7 |
|
|
|
621.8 |
|
|
|
2,544.5 |
|
|
|
1,763.0 |
|
|
Operating income (loss) |
|
|
(57.0 |
) |
|
|
44.9 |
|
|
|
(89.8 |
) |
|
|
(252.5 |
) |
|
Interest expense |
|
|
(40.7 |
) |
|
|
(38.1 |
) |
|
|
(155.3 |
) |
|
|
(149.7 |
) |
|
Interest income |
|
|
9.3 |
|
|
|
1.1 |
|
|
|
20.4 |
|
|
|
6.4 |
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6.5 |
) |
|
Foreign currency exchange loss |
|
|
(6.2 |
) |
|
|
(0.4 |
) |
|
|
(11.5 |
) |
|
|
(1.3 |
) |
|
Distributions from NCM |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Cash distributions from DCIP |
|
|
— |
|
|
|
6.6 |
|
|
|
3.7 |
|
|
|
13.1 |
|
|
Interest expense - NCM |
|
|
(5.7 |
) |
|
|
(5.9 |
) |
|
|
(23.2 |
) |
|
|
(23.6 |
) |
|
Equity in loss of affiliates |
|
|
(1.8 |
) |
|
|
(3.0 |
) |
|
|
(9.3 |
) |
|
|
(25.0 |
) |
|
Total other expense |
|
|
(45.1 |
) |
|
|
(39.7 |
) |
|
|
(175.2 |
) |
|
|
(186.5 |
) |
|
Income (loss) before income taxes |
|
|
(102.1 |
) |
|
|
5.2 |
|
|
|
(265.0 |
) |
|
|
(439.0 |
) |
|
Income tax (benefit) expense |
|
|
(3.3 |
) |
|
|
(1.2 |
) |
|
|
3.0 |
|
|
|
(16.8 |
) |
|
Net income (loss) |
|
|
(98.8 |
) |
|
$ |
6.4 |
|
|
$ |
(268.0 |
) |
|
$ |
(422.2 |
) |
|
Less: Net income attributable to noncontrolling interests |
|
|
0.5 |
|
|
|
0.7 |
|
|
|
3.2 |
|
|
|
0.6 |
|
|
Net income (loss) attributable to |
|
|
(99.3 |
) |
|
$ |
5.7 |
|
|
$ |
(271.2 |
) |
|
$ |
(422.8 |
) |
|
Earnings (loss) per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
(0.82 |
) |
|
$ |
0.05 |
|
|
$ |
(2.26 |
) |
|
$ |
(3.55 |
) |
|
Diluted |
|
$ |
(0.82 |
) |
|
$ |
0.05 |
|
|
$ |
(2.26 |
) |
|
$ |
(3.55 |
) |
|
Diluted weighted average shares outstanding |
|
|
118.5 |
|
|
|
117.6 |
|
|
|
118.2 |
|
|
|
117.3 |
|
Other Operating Data (unaudited, in millions) |
||||||||
|
|
As of |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Balance sheet data: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
674.5 |
|
|
$ |
707.3 |
|
Theatre properties and equipment, net |
|
$ |
1,232.1 |
|
|
$ |
1,382.9 |
|
Total assets |
|
$ |
4,817.7 |
|
|
$ |
5,230.6 |
|
Long-term debt, net of unamortized debt issuance costs |
|
$ |
2,484.7 |
|
|
$ |
2,500.6 |
|
Equity |
|
$ |
119.5 |
|
|
$ |
334.5 |
|
|
|
Year Ended |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Cash flows provided by (used for): |
|
|
|
|
|
|
||
Operating activities (1) |
|
$ |
136.0 |
|
|
$ |
166.2 |
|
Investing activities |
|
$ |
(96.3 |
) |
|
$ |
(89.3 |
) |
Financing activities |
|
$ |
(52.2 |
) |
|
$ |
(19.9 |
) |
(1) |
We define free cash flow as cash flow provided by operating activities less capital expenditures. A reconciliation of cash flow provided by operating activities to free cash flow is provided below: |
|
Year Ended |
|
||||||
|
|
2022 |
|
|
2021 |
|
||
Reconciliation of free cash flow: |
|
|
|
|
|
|
||
Cash flows provided by operating activities |
|
$ |
136.0 |
|
|
$ |
166.2 |
|
Less: Capital expenditures |
|
|
(110.7 |
) |
|
|
(95.5 |
) |
Free cash flow |
|
$ |
25.3 |
|
|
$ |
70.7 |
|
| Segment Information
(unaudited, in millions, except per patron data) |
||||||||||||||||||||||||||||
|
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
Constant
|
|
|
Three Months Ended
|
|
||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|||||||
Revenue and Attendance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Admissions revenue |
|
$ |
251.1 |
|
|
$ |
287.3 |
|
|
$ |
53.5 |
|
|
$ |
57.6 |
|
|
$ |
59.3 |
|
|
$ |
304.6 |
|
|
$ |
344.9 |
|
Concession revenue |
|
|
186.5 |
|
|
|
207.8 |
|
|
|
39.2 |
|
|
|
40.4 |
|
|
|
44.0 |
|
|
|
225.7 |
|
|
|
248.2 |
|
Other revenue |
|
|
48.1 |
|
|
|
56.6 |
|
|
|
21.3 |
|
|
|
17.0 |
|
|
|
23.4 |
|
|
|
69.4 |
|
|
|
73.6 |
|
Total revenue |
|
$ |
485.7 |
|
|
$ |
551.7 |
|
|
$ |
114.0 |
|
|
$ |
115.0 |
|
|
$ |
126.7 |
|
|
$ |
599.7 |
|
|
$ |
666.7 |
|
Attendance |
|
|
25.1 |
|
|
|
31.2 |
|
|
|
14.1 |
|
|
|
16.9 |
|
|
|
|
|
|
39.2 |
|
|
|
48.1 |
|
|
Average ticket price |
|
$ |
10.00 |
|
|
$ |
9.21 |
|
|
$ |
3.79 |
|
|
$ |
3.41 |
|
|
$ |
4.21 |
|
|
$ |
7.77 |
|
|
$ |
7.17 |
|
Concession revenue per patron |
|
$ |
7.43 |
|
|
$ |
6.66 |
|
|
$ |
2.78 |
|
|
$ |
2.39 |
|
|
$ |
3.12 |
|
|
$ |
5.76 |
|
|
$ |
5.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
|
$ |
145.4 |
|
|
$ |
168.5 |
|
|
$ |
27.9 |
|
|
$ |
29.7 |
|
|
$ |
31.1 |
|
|
$ |
173.3 |
|
|
$ |
198.2 |
|
Concession supplies |
|
|
31.6 |
|
|
|
34.9 |
|
|
|
8.9 |
|
|
|
8.8 |
|
|
|
10.0 |
|
|
|
40.5 |
|
|
|
43.7 |
|
Salaries and wages |
|
|
81.3 |
|
|
|
71.8 |
|
|
|
14.4 |
|
|
|
11.9 |
|
|
|
16.5 |
|
|
|
95.7 |
|
|
|
83.7 |
|
Facility lease expense |
|
|
62.5 |
|
|
|
64.5 |
|
|
|
14.6 |
|
|
|
14.7 |
|
|
|
16.0 |
|
|
|
77.1 |
|
|
|
79.2 |
|
Utilities and other |
|
|
78.9 |
|
|
|
71.1 |
|
|
|
24.5 |
|
|
|
19.7 |
|
|
|
27.2 |
|
|
|
103.4 |
|
|
|
90.8 |
|
` |
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
|
Twelve Months Ended
|
|
|
Twelve Months Ended
|
|
|
Constant
|
|
|
Twelve Months Ended
|
|
||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|||||||
Revenue and Attendance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Admissions revenue |
|
$ |
1,010.2 |
|
|
$ |
671.7 |
|
|
$ |
236.7 |
|
|
$ |
108.3 |
|
|
$ |
258.8 |
|
|
$ |
1,246.9 |
|
|
$ |
780.0 |
|
Concession revenue |
|
|
763.0 |
|
|
|
482.8 |
|
|
|
175.3 |
|
|
|
78.9 |
|
|
|
193.7 |
|
|
|
938.3 |
|
|
|
561.7 |
|
Other revenue |
|
|
197.0 |
|
|
|
139.1 |
|
|
|
72.5 |
|
|
|
29.7 |
|
|
|
78.7 |
|
|
|
269.5 |
|
|
|
168.8 |
|
Total revenue |
|
$ |
1,970.2 |
|
|
$ |
1,293.6 |
|
|
$ |
484.5 |
|
|
$ |
216.9 |
|
|
$ |
531.2 |
|
|
$ |
2,454.7 |
|
|
$ |
1,510.5 |
|
Attendance |
|
|
109.3 |
|
|
|
73.0 |
|
|
|
63.4 |
|
|
|
32.6 |
|
|
|
|
|
|
172.7 |
|
|
|
105.6 |
|
|
Average ticket price |
|
$ |
9.24 |
|
|
$ |
9.20 |
|
|
$ |
3.73 |
|
|
$ |
3.32 |
|
|
$ |
4.08 |
|
|
$ |
7.22 |
|
|
$ |
7.39 |
|
Concession revenue per patron |
|
$ |
6.98 |
|
|
$ |
6.61 |
|
|
$ |
2.76 |
|
|
$ |
2.42 |
|
|
$ |
3.06 |
|
|
$ |
5.43 |
|
|
$ |
5.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
|
$ |
584.4 |
|
|
$ |
360.0 |
|
|
$ |
120.0 |
|
|
$ |
55.0 |
|
|
$ |
131.7 |
|
|
$ |
704.4 |
|
|
$ |
415.0 |
|
Concession supplies |
|
|
130.5 |
|
|
|
79.5 |
|
|
|
38.8 |
|
|
|
18.4 |
|
|
|
42.9 |
|
|
|
169.3 |
|
|
|
97.9 |
|
Salaries and wages |
|
|
314.7 |
|
|
|
198.2 |
|
|
|
58.0 |
|
|
|
34.7 |
|
|
|
64.0 |
|
|
|
372.7 |
|
|
|
232.9 |
|
Facility lease expense |
|
|
250.1 |
|
|
|
242.2 |
|
|
|
58.2 |
|
|
|
37.8 |
|
|
|
62.8 |
|
|
|
308.3 |
|
|
|
280.0 |
|
Utilities and other |
|
|
313.7 |
|
|
|
232.1 |
|
|
|
93.5 |
|
|
|
50.8 |
|
|
|
101.2 |
|
|
|
407.2 |
|
|
|
282.9 |
|
(1) |
Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2021. We translate the results of our international operating segment from local currencies into |
||
Other Segment Information (unaudited, in millions) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
59.5 |
|
|
$ |
115.9 |
|
|
$ |
255.7 |
|
|
$ |
84.2 |
|
International |
|
|
14.0 |
|
|
|
23.5 |
|
|
|
80.8 |
|
|
|
(4.2 |
) |
Total Adjusted EBITDA |
|
$ |
73.5 |
|
|
$ |
139.4 |
|
|
$ |
336.5 |
|
|
$ |
80.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
36.5 |
|
|
$ |
30.8 |
|
|
$ |
87.2 |
|
|
$ |
78.3 |
|
International |
|
|
8.9 |
|
|
|
7.5 |
|
|
|
23.5 |
|
|
|
17.2 |
|
Total capital expenditures |
|
$ |
45.4 |
|
|
$ |
38.3 |
|
|
$ |
110.7 |
|
|
$ |
95.5 |
|
(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 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 income (loss) to Adjusted EBITDA is provided below. |
| Reconciliation of Adjusted EBITDA
(unaudited, in millions) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net income (loss) |
|
$ |
(98.8 |
) |
|
$ |
6.4 |
|
|
$ |
(268.0 |
) |
|
$ |
(422.2 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income taxes |
|
|
(3.3 |
) |
|
|
(1.2 |
) |
|
|
3.0 |
|
|
|
(16.8 |
) |
Interest expense (1) |
|
|
40.7 |
|
|
|
38.1 |
|
|
|
155.3 |
|
|
|
149.7 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.5 |
|
Other expense, net (2) |
|
|
4.4 |
|
|
|
8.2 |
|
|
|
23.6 |
|
|
|
43.5 |
|
Cash distributions from other equity investees (3) |
|
|
5.4 |
|
|
|
— |
|
|
|
6.9 |
|
|
|
0.2 |
|
Depreciation and amortization |
|
|
57.2 |
|
|
|
63.1 |
|
|
|
238.2 |
|
|
|
265.4 |
|
Impairment of long-lived assets |
|
|
66.6 |
|
|
|
13.3 |
|
|
|
174.1 |
|
|
|
20.8 |
|
(Gain) loss on disposal of assets and other |
|
|
(0.4 |
) |
|
|
0.2 |
|
|
|
(6.8 |
) |
|
|
8.0 |
|
Restructuring charges |
|
|
(0.3 |
) |
|
|
0.3 |
|
|
|
(0.5 |
) |
|
|
(1.0 |
) |
Non-cash rent |
|
|
(3.3 |
) |
|
|
(1.7 |
) |
|
|
(10.8 |
) |
|
|
(3.4 |
) |
Share based awards compensation expense (4) |
|
|
5.3 |
|
|
|
12.7 |
|
|
|
21.5 |
|
|
|
29.3 |
|
Adjusted EBITDA |
|
$ |
73.5 |
|
|
|
139.4 |
|
|
$ |
336.5 |
|
|
$ |
80.0 |
|
| (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 and DCIP. |
(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/20230224005087/en/
Financial Contact:
Media Contact:
Source:
FAQ
What was Cinemark's total revenue for the year 2022?
How much cash flow did Cinemark generate in 2022?
What was the net loss for Cinemark in Q4 2022?
How did Cinemark's Adjusted EBITDA change in 2022?
What is Cinemark's stock symbol?
