Cinemark Holdings, Inc. Reports Results for the Fourth Quarter of 2020
Cinemark Holdings, Inc. (NYSE: CNK) reported significant financial impacts due to the COVID-19 pandemic for Q4 and the full year 2020. The company had 217 domestic and 129 international theatres open with limited attendance, leading to Q4 revenues of $98.2 million and a net loss of $239.3 million. For the full year, total revenues dropped to $686.3 million from $3.3 billion in 2019, resulting in a net loss of $616.8 million. Despite these challenges, CEO Mark Zoradi expressed confidence in the industry's recovery, citing positive box office trends in select international markets.
- Cinemark plans to open six new theatres and 72 screens in 2021.
- The company maintained operational discipline, adapting successfully during the pandemic.
- Q4 net loss of $239.3 million, with diluted loss per share at $(2.03).
- Total revenues for 2020 were $686.3 million, down from $3.3 billion in 2019.
- Year-end net loss of $616.8 million compared to a net income of $191.4 million in 2019.
- Adjusted EBITDA for 2020 was $(276.9) million, significantly lower than $745.0 million in 2019.
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and twelve months ended December 31, 2020. The Company’s financial results continue to be significantly impacted by the COVID-19 pandemic, as the Company’s theatres were closed for an extended period of time beginning in March 2020. The Company began reopening domestic theatres in June 2020 and international theatres in August 2020, following enhanced health and safety protocols. As of December 31, 2020, the Company had 217 domestic and 129 international theatres open to limited hours, showing library content and some new releases with some limitations on capacities. During the three months ended December 31, 2020, attendance was 6.6 million patrons, average ticket price was
Net loss attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2020 was
“It is almost unfathomable that one year ago, we were reporting Cinemark’s fifth consecutive year of record results with the North American industry touting the second-highest grossing box office of all-time,” stated Mark Zoradi, Cinemark CEO. “While COVID-19 has caused significant distress to our industry and our company, Cinemark has maintained discipline and consistency, while demonstrating relentless perseverance and agility.”
Mr. Zoradi continued, “We remain highly confident in the rebound of our industry once the virus is more contained, as evidenced by recent box office results in China, Japan and Australia. Cinemark was well-positioned heading into the crisis, and we have adapted and evolved the way we operate to navigate the current environment, and to ensure we remain successful and further solidify our leadership position as theatrical moviegoing resurges.”
Cinemark Holdings, Inc.’s total revenues for the twelve months ended December 31, 2020 were
Net loss attributable to Cinemark Holdings, Inc. for the twelve months ended December 31, 2020 was
Adjusted EBITDA for the twelve months ended December 31, 2020 was
As of December 31, 2020, the Company’s aggregate screen count was 5,958 and the Company currently has commitments to open six new theatres and 72 screens during 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 531 theatres with 5,958 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 21, 2020, as updated by the information related to COVID-19 that was included in a Form 8-K filed on April 13, 2020, including the documents incorporated by reference therein, the Quarterly Report on Form 10-Q filed on August 4, 2020 and the Quarterly Report on Form 10-Q filed on November 5, 2020. 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 |
|
|
Twelve Months Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Statement of income data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions |
|
$ |
49,108 |
|
|
$ |
434,280 |
|
|
$ |
356,508 |
|
|
$ |
1,805,321 |
|
Concession |
|
|
31,450 |
|
|
|
275,000 |
|
|
|
231,046 |
|
|
|
1,161,083 |
|
Other |
|
|
17,684 |
|
|
|
79,523 |
|
|
|
98,756 |
|
|
|
316,695 |
|
Total revenues |
|
|
98,242 |
|
|
|
788,803 |
|
|
|
686,310 |
|
|
|
3,283,099 |
|
Cost of operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Film rentals and advertising |
|
|
21,548 |
|
|
|
244,139 |
|
|
|
186,810 |
|
|
|
1,003,832 |
|
Concession supplies |
|
|
8,768 |
|
|
|
49,080 |
|
|
|
48,647 |
|
|
|
206,441 |
|
Salaries and wages |
|
|
28,442 |
|
|
|
101,770 |
|
|
|
145,031 |
|
|
|
410,086 |
|
Facility lease expense |
|
|
65,274 |
|
|
|
83,565 |
|
|
|
279,764 |
|
|
|
346,094 |
|
Utilities and other |
|
|
50,699 |
|
|
|
117,501 |
|
|
|
229,505 |
|
|
|
474,711 |
|
General and administrative expenses |
|
|
28,238 |
|
|
|
46,382 |
|
|
|
127,599 |
|
|
|
173,384 |
|
Depreciation and amortization |
|
|
68,396 |
|
|
|
64,360 |
|
|
|
259,776 |
|
|
|
261,155 |
|
Impairment of long-lived and other assets |
|
|
111,492 |
|
|
|
11,619 |
|
|
|
152,706 |
|
|
|
57,001 |
|
Restructuring costs |
|
|
307 |
|
|
|
— |
|
|
|
20,369 |
|
|
|
— |
|
(Gain) loss on disposal of assets and other |
|
|
2,074 |
|
|
|
3,951 |
|
|
|
(8,923 |
) |
|
|
12,008 |
|
Total cost of operations |
|
|
385,238 |
|
|
|
722,367 |
|
|
|
1,441,284 |
|
|
|
2,944,712 |
|
Operating income (loss) |
|
|
(286,996 |
) |
|
|
66,436 |
|
|
|
(754,974 |
) |
|
|
338,387 |
|
Interest expense |
|
|
(37,587 |
) |
|
|
(24,904 |
) |
|
|
(129,871 |
) |
|
|
(99,941 |
) |
Interest income |
|
|
601 |
|
|
|
2,527 |
|
|
|
4,836 |
|
|
|
12,589 |
|
Foreign currency exchange gain (loss) |
|
|
1,318 |
|
|
|
1,391 |
|
|
|
(4,865 |
) |
|
|
(3,394 |
) |
Distributions from NCM |
|
|
— |
|
|
|
3,705 |
|
|
|
6,975 |
|
|
|
12,873 |
|
Non-cash distributions from other equity investee |
|
|
12,915 |
|
|
|
— |
|
|
|
12,915 |
|
|
|
- |
|
Interest expense - NCM |
|
|
(5,869 |
) |
|
|
(14,444 |
) |
|
|
(23,595 |
) |
|
|
(28,624 |
) |
Equity in income (loss) of affiliates |
|
|
(11,034 |
) |
|
|
7,888 |
|
|
|
(38,745 |
) |
|
|
41,870 |
|
Total other expense |
|
|
(39,656 |
) |
|
|
(23,837 |
) |
|
|
(172,350 |
) |
|
|
(64,627 |
) |
Income (loss) before income taxes |
|
|
(326,652 |
) |
|
|
42,599 |
|
|
|
(927,324 |
) |
|
|
273,760 |
|
Income taxes |
|
|
(86,978 |
) |
|
|
15,760 |
|
|
|
(309,376 |
) |
|
|
79,912 |
|
Net income (loss) |
|
$ |
(239,674 |
) |
|
$ |
26,839 |
|
|
$ |
(617,948 |
) |
|
$ |
193,848 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
(418 |
) |
|
|
505 |
|
|
|
(1,120 |
) |
|
|
2,462 |
|
Net income (loss) attributable to Cinemark Holdings, Inc. |
|
$ |
(239,256 |
) |
|
$ |
26,334 |
|
|
$ |
(616,828 |
) |
|
$ |
191,386 |
|
Earnings (loss) per share attributable to Cinemark Holdings, Inc.'s common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.03 |
) |
|
$ |
0.22 |
|
|
$ |
(5.25 |
) |
|
$ |
1.63 |
|
Diluted |
|
$ |
(2.03 |
) |
|
$ |
0.22 |
|
|
$ |
(5.25 |
) |
|
$ |
1.63 |
|
Diluted weighted average shares outstanding |
|
|
116,794 |
|
|
|
116,600 |
|
|
|
116,667 |
|
|
|
116,606 |
|
Other Financial Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
|
$ |
(97,474 |
) |
|
$ |
178,295 |
|
|
$ |
(276,880 |
) |
|
$ |
745,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Data (unaudited, in thousands) |
||||||||
|
|
As of |
|
|||||
|
|
December 31, |
|
|||||
|
|
2020 |
|
|
2019 |
|
||
Balance sheet data (unaudited, in thousands): |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
655,338 |
|
|
$ |
488,313 |
|
Theatre properties and equipment, net |
|
$ |
1,615,062 |
|
|
$ |
1,735,247 |
|
Total assets |
|
$ |
5,562,922 |
|
|
$ |
5,828,017 |
|
Long-term debt, including current portion, net of unamortized debt discount and debt issue costs |
|
$ |
2,395,218 |
|
|
$ |
1,777,937 |
|
Equity |
|
$ |
798,969 |
|
|
$ |
1,448,322 |
|
Segment Information (unaudited, in millions, except per patron data) |
||||||||||||||||||||||||||||||||||||||||||||
|
|
U.S. Operating Segment |
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||||||||||||||||||
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
Constant Currency (1) |
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
|
2020 |
|
|
% Change |
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
|||||||||||
Admissions revenues (2) |
|
$ |
291.6 |
|
|
$ |
1,431.8 |
|
|
|
(79.6 |
)% |
|
$ |
64.9 |
|
|
$ |
373.5 |
|
|
|
(82.6 |
)% |
|
$ |
76.5 |
|
|
|
(79.5 |
)% |
|
$ |
356.5 |
|
|
$ |
1,805.3 |
|
|
|
(80.3 |
)% |
Concession revenues (3) |
|
$ |
189.6 |
|
|
$ |
936.2 |
|
|
|
(79.7 |
)% |
|
$ |
41.5 |
|
|
$ |
224.9 |
|
|
|
(81.5 |
)% |
|
$ |
48.1 |
|
|
|
(78.6 |
)% |
|
$ |
231.1 |
|
|
$ |
1,161.1 |
|
|
|
(80.1 |
)% |
Other revenues |
|
$ |
75.7 |
|
|
$ |
212.9 |
|
|
|
(64.4 |
)% |
|
$ |
23.0 |
|
|
$ |
103.8 |
|
|
|
(77.8 |
)% |
|
$ |
28.4 |
|
|
|
(72.6 |
)% |
|
$ |
98.7 |
|
|
$ |
316.7 |
|
|
|
(68.8 |
)% |
Total revenues |
|
$ |
556.9 |
|
|
$ |
2,580.9 |
|
|
|
(78.4 |
)% |
|
$ |
129.4 |
|
|
$ |
702.2 |
|
|
|
(81.6 |
)% |
|
$ |
153.0 |
|
|
|
(78.2 |
)% |
|
$ |
686.3 |
|
|
$ |
3,283.1 |
|
|
|
(79.1 |
)% |
Attendance |
|
|
34.9 |
|
|
|
176.2 |
|
|
|
(80.2 |
)% |
|
|
19.4 |
|
|
|
103.4 |
|
|
|
(81.2 |
)% |
|
|
|
|
|
|
|
|
|
|
54.3 |
|
|
|
279.6 |
|
|
|
(80.6 |
)% |
Average ticket price |
|
$ |
8.36 |
|
|
$ |
8.13 |
|
|
|
2.8 |
% |
|
$ |
3.35 |
|
|
$ |
3.61 |
|
|
|
(7.2 |
)% |
|
$ |
3.94 |
|
|
|
9.1 |
% |
|
$ |
6.57 |
|
|
$ |
6.46 |
|
|
|
1.7 |
% |
Concession revenues per patron |
|
$ |
5.43 |
|
|
$ |
5.31 |
|
|
|
2.3 |
% |
|
$ |
2.14 |
|
|
$ |
2.18 |
|
|
|
(1.8 |
)% |
|
$ |
2.48 |
|
|
|
13.8 |
% |
|
$ |
4.26 |
|
|
$ |
4.15 |
|
|
|
2.7 |
% |
Average screen count |
|
|
4,571 |
|
|
|
4,615 |
|
|
|
|
|
|
|
1,474 |
|
|
|
1,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,045 |
|
|
|
6,072 |
|
|
|
|
|
|
|
U.S. Operating Segment |
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
|
Twelve Months Ended |
|
|
Twelve Months Ended |
|
|
Twelve Months Ended |
|
|||||||||||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Constant Currency (1) 2020 |
|
|
2020 |
|
|
2019 |
|
|||||||
Film rentals and advertising |
|
$ |
155.3 |
|
|
$ |
819.6 |
|
|
$ |
31.5 |
|
|
$ |
184.2 |
|
|
$ |
37.4 |
|
|
$ |
186.8 |
|
|
$ |
1,003.8 |
|
Concession supplies |
|
|
36.9 |
|
|
|
156.9 |
|
|
|
11.7 |
|
|
|
49.6 |
|
|
|
14.0 |
|
|
|
48.6 |
|
|
|
206.5 |
|
Salaries and wages |
|
|
113.8 |
|
|
|
331.2 |
|
|
|
31.2 |
|
|
|
78.9 |
|
|
|
38.0 |
|
|
|
145.0 |
|
|
|
410.1 |
|
Facility lease expense |
|
|
247.0 |
|
|
|
259.8 |
|
|
|
32.8 |
|
|
|
86.3 |
|
|
|
38.9 |
|
|
|
279.8 |
|
|
|
346.1 |
|
Utilities and other |
|
|
180.3 |
|
|
|
348.2 |
|
|
|
49.2 |
|
|
|
126.5 |
|
|
|
59.4 |
|
|
|
229.5 |
|
|
|
474.7 |
|
(1) |
Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2019. 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 |
|
|
Twelve Months Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
(81,034 |
) |
|
$ |
161,757 |
|
|
$ |
(226,981 |
) |
|
$ |
615,161 |
|
International |
|
|
(16,440 |
) |
|
|
16,538 |
|
|
|
(49,899 |
) |
|
|
129,884 |
|
Total Adjusted EBITDA |
|
$ |
(97,474 |
) |
|
$ |
178,295 |
|
|
$ |
(276,880 |
) |
|
$ |
745,045 |
|
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
9,422 |
|
|
$ |
81,952 |
|
|
$ |
64,026 |
|
|
$ |
230,561 |
|
International |
|
|
6,890 |
|
|
|
35,163 |
|
|
|
19,904 |
|
|
|
73,066 |
|
Total capital expenditures |
|
$ |
16,312 |
|
|
$ |
117,115 |
|
|
$ |
83,930 |
|
|
$ |
303,627 |
|
(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 |
|
|
Twelve Months Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income |
|
$ |
(239,674 |
) |
|
$ |
26,839 |
|
|
$ |
(617,948 |
) |
|
$ |
193,848 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
(86,978 |
) |
|
|
15,760 |
|
|
|
(309,376 |
) |
|
|
79,912 |
|
Interest expense (a) |
|
|
37,587 |
|
|
|
24,904 |
|
|
|
129,871 |
|
|
|
99,941 |
|
Other (income) expense, net (b) |
|
|
14,984 |
|
|
|
2,638 |
|
|
|
62,369 |
|
|
|
(22,441 |
) |
Distributions from DCIP (c) |
|
|
— |
|
|
|
15,784 |
|
|
|
10,383 |
|
|
|
23,696 |
|
Other cash distributions from equity investees (d) |
|
|
— |
|
|
|
9,419 |
|
|
|
15,047 |
|
|
|
29,670 |
|
Non-cash distributions from other equity investee (e) |
|
|
(12,915 |
) |
|
|
— |
|
|
|
(12,915 |
) |
|
|
— |
|
Depreciation and amortization |
|
|
68,396 |
|
|
|
64,360 |
|
|
|
259,776 |
|
|
|
261,155 |
|
Impairment of long-lived and other assets |
|
|
111,492 |
|
|
|
11,619 |
|
|
|
152,706 |
|
|
|
57,001 |
|
Restructuring costs |
|
|
307 |
|
|
|
— |
|
|
|
20,369 |
|
|
|
— |
|
(Gain) loss on disposal of assets and other |
|
|
2,074 |
|
|
|
3,951 |
|
|
|
(8,923 |
) |
|
|
12,008 |
|
Non-cash rent |
|
|
708 |
|
|
|
(1,108 |
) |
|
|
2,357 |
|
|
|
(4,360 |
) |
Share based awards compensation expense (f) |
|
|
6,545 |
|
|
|
4,129 |
|
|
|
19,404 |
|
|
|
14,615 |
|
Adjusted EBITDA |
|
$ |
(97,474 |
) |
|
$ |
178,295 |
|
|
$ |
(276,880 |
) |
|
$ |
745,045 |
|
(a) |
Includes non-cash amortization of debt issue costs and amortization of amended interest rate swaps. |
(b) |
Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income (loss) of affiliates. |
(c) |
Cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP. |
(d) |
Cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances. |
(e) |
Non-cash distribution of projector equipment from DCIP, which was recorded as a reduction of the Company’s investment in DCIP. |
(f) |
Non-cash expense included in general and administrative expenses. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210226005104/en/
FAQ
What were Cinemark's total revenues for 2020?
How much was Cinemark's net loss for Q4 2020?
What is Cinemark's diluted loss per share for 2020?
How many theatres did Cinemark have open as of December 31, 2020?
What are the recent box office trends for Cinemark?
