Cinemark Holdings, Inc. Reports Second Quarter 2023 Results
- None.
- None.
Reported
Further strengthened the balance sheet by generating
“The strength of the second quarter’s film lineup, supplemented with the ongoing benefits we are achieving from our strategic initiatives, translated into exceptional second quarter results across our entire global footprint,” stated Sean Gamble, Cinemark President and CEO. “We believe box office performance witnessed year-to-date, and over the past two years, provides conclusive evidence that consumer enthusiasm to view compelling films in a shared, larger-than-life, cinematic environment is as strong as ever. We remain confident in the long-term fundamentals of theatrical exhibition, and Cinemark is well-positioned to capture an outsized portion of our industry’s ongoing recovery.”
Earnings Highlights
- Entertained more than 64 million moviegoers and delivered box office recovery that once again outpaced industry results.
-
Continued to be the only major
U.S. exhibitor to have achieved and maintained a meaningful increase in market share since reopening, which remains up more than 100 basis points compared to our pre-pandemic average. -
Reported
$120 million -
Delivered
$232 million 24.6% Adjusted EBITDA margin that was amongst the Company's highest of all time. -
Further strengthened the balance sheet by generating
$215 million $108 million $758 million -
Maintained proactive history of managing debt by redeeming
$100 million 8.75% senior secured notes in May 2023 and successfully refinancing credit facility that secured$650 million $125 million
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months ended June 30, 2023 increased
Net income attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2023 was
Adjusted EBITDA for the three months ended June 30, 2023 was
Cinemark Holdings, Inc.’s total revenue for the six months ended June 30, 2023 increased
Net income attributable to Cinemark Holdings, Inc. for the six months ended June 30, 2023 was
Adjusted EBITDA for the six months ended June 30, 2023 was
As of June 30, 2023, the Company’s aggregate screen count was 5,812, and the Company had commitments to open 5 new theatres and 46 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 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 the Company's Annual Report on Form 10-K filed February 24, 2023. 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 |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Statement of income (loss) data: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Admissions |
|
$ |
478.4 |
|
|
$ |
381.9 |
|
|
$ |
789.4 |
|
|
$ |
617.7 |
|
Concession |
|
|
373.4 |
|
|
|
286.0 |
|
|
|
609.2 |
|
|
|
459.0 |
|
Other |
|
|
90.5 |
|
|
|
76.2 |
|
|
|
154.4 |
|
|
|
127.9 |
|
Total revenue |
|
$ |
942.3 |
|
|
$ |
744.1 |
|
|
$ |
1,553.0 |
|
|
$ |
1,204.6 |
|
Cost of operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Film rentals and advertising |
|
|
278.0 |
|
|
|
222.6 |
|
|
|
444.7 |
|
|
|
350.2 |
|
Concession supplies |
|
|
67.4 |
|
|
|
52.5 |
|
|
|
111.0 |
|
|
|
82.5 |
|
Salaries and wages |
|
|
112.1 |
|
|
|
100.2 |
|
|
|
198.3 |
|
|
|
180.0 |
|
Facility lease expense |
|
|
87.0 |
|
|
|
80.3 |
|
|
|
166.5 |
|
|
|
154.0 |
|
Utilities and other |
|
|
120.2 |
|
|
|
106.5 |
|
|
|
224.0 |
|
|
|
193.4 |
|
General and administrative expenses |
|
|
50.0 |
|
|
|
48.2 |
|
|
|
96.5 |
|
|
|
88.9 |
|
Depreciation and amortization |
|
|
52.8 |
|
|
|
61.0 |
|
|
|
107.7 |
|
|
|
122.7 |
|
Impairment of long-lived and other assets |
|
|
9.4 |
|
|
|
92.3 |
|
|
|
10.1 |
|
|
|
92.3 |
|
Restructuring costs |
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.2 |
) |
Gain on disposal of assets and other |
|
|
(3.0 |
) |
|
|
(0.7 |
) |
|
|
(2.7 |
) |
|
|
(7.6 |
) |
Total cost of operations |
|
|
773.9 |
|
|
|
762.7 |
|
|
|
1,356.1 |
|
|
|
1,256.2 |
|
Operating income (loss) |
|
|
168.4 |
|
|
|
(18.6 |
) |
|
|
196.9 |
|
|
|
(51.6 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(37.1 |
) |
|
|
(38.1 |
) |
|
|
(73.9 |
) |
|
|
(76.2 |
) |
Interest income |
|
|
13.0 |
|
|
|
3.1 |
|
|
|
24.9 |
|
|
|
4.7 |
|
Loss on debt extinguishment and refinancing |
|
|
(10.7 |
) |
|
|
— |
|
|
|
(10.7 |
) |
|
|
— |
|
Foreign currency and other related gain (loss) |
|
|
(6.2 |
) |
|
|
(3.1 |
) |
|
|
(8.4 |
) |
|
|
0.1 |
|
Interest expense - NCM |
|
|
(5.7 |
) |
|
|
(5.9 |
) |
|
|
(11.4 |
) |
|
|
(11.7 |
) |
Equity in income (loss) of affiliates |
|
|
1.8 |
|
|
|
(5.5 |
) |
|
|
(0.3 |
) |
|
|
(7.7 |
) |
Unrealized gain on investment in NCMI |
|
|
9.2 |
|
|
|
— |
|
|
|
9.2 |
|
|
|
— |
|
Income (loss) before income taxes |
|
|
132.7 |
|
|
|
(68.1 |
) |
|
|
126.3 |
|
|
|
(142.4 |
) |
Income tax expense |
|
|
12.3 |
|
|
|
4.7 |
|
|
|
8.4 |
|
|
|
2.9 |
|
Net income (loss) |
|
$ |
120.4 |
|
|
$ |
(72.8 |
) |
|
$ |
117.9 |
|
|
$ |
(145.3 |
) |
Less: Net income attributable to noncontrolling interests |
|
|
1.3 |
|
|
|
0.6 |
|
|
|
1.9 |
|
|
|
2.1 |
|
Net income (loss) attributable to Cinemark Holdings, Inc. |
|
$ |
119.1 |
|
|
$ |
(73.4 |
) |
|
$ |
116.0 |
|
|
$ |
(147.4 |
) |
Net income (loss) per share attributable to Cinemark Holdings, Inc.'s common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.98 |
|
|
$ |
(0.61 |
) |
|
$ |
0.96 |
|
|
$ |
(1.23 |
) |
Diluted |
|
$ |
0.80 |
|
|
$ |
(0.61 |
) |
|
$ |
0.82 |
|
|
$ |
(1.23 |
) |
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
119.1 |
|
|
|
118.2 |
|
|
|
118.9 |
|
|
|
118.0 |
|
Diluted |
|
|
151.7 |
|
|
|
118.2 |
|
|
|
151.5 |
|
|
|
118.0 |
|
Other Operating Data (unaudited, in millions) |
||||||||
|
|
As of |
|
|||||
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Balance sheet data: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
758.0 |
|
|
$ |
674.5 |
|
Theatre properties and equipment, net |
|
$ |
1,187.9 |
|
|
$ |
1,232.1 |
|
Total assets |
|
$ |
4,846.8 |
|
|
$ |
4,817.7 |
|
Total long-term debt, net of unamortized debt issuance costs and original issue discount |
|
$ |
2,398.4 |
|
|
$ |
2,484.7 |
|
Total equity |
|
$ |
254.8 |
|
|
$ |
119.5 |
|
|
|
Six Months Ended June 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Cash flows provided by (used for): |
|
|
|
|
|
|
||
Operating activities (1) |
|
$ |
251.1 |
|
|
$ |
46.1 |
|
Investing activities |
|
$ |
(54.6 |
) |
|
$ |
(28.8 |
) |
Financing activities |
|
$ |
(110.8 |
) |
|
$ |
(19.2 |
) |
(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: |
|
|
Six Months Ended June 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Reconciliation of free cash flow: |
|
|
|
|
|
|
||
Cash flows provided by operating activities |
|
$ |
251.1 |
|
|
$ |
46.1 |
|
Less: Capital expenditures |
|
|
54.6 |
|
|
|
40.6 |
|
Free cash flow |
|
$ |
196.5 |
|
|
$ |
5.5 |
|
Segment Information (unaudited, in millions, except per patron data) |
|||||||||||||||||||||||||||
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
Three Months Ended June 30, |
|
|
Three Months Ended June 30, |
|
|
Three Months Ended June 30, |
|
|||||||||||||||||||
Revenue and Attendance |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Constant
|
|
|
2023 |
|
|
2022 |
|
|||||||
Admissions revenue |
$ |
373.4 |
|
|
$ |
309.7 |
|
|
$ |
105.0 |
|
|
$ |
72.2 |
|
|
$ |
126.1 |
|
|
$ |
478.4 |
|
|
$ |
381.9 |
|
Concession revenue |
|
296.3 |
|
|
|
234.6 |
|
|
|
77.1 |
|
|
|
51.4 |
|
|
|
92.8 |
|
|
|
373.4 |
|
|
|
286.0 |
|
Other revenue |
|
65.2 |
|
|
|
56.5 |
|
|
|
25.3 |
|
|
|
19.7 |
|
|
|
30.8 |
|
|
|
90.5 |
|
|
|
76.2 |
|
Total revenue |
$ |
734.9 |
|
|
$ |
600.8 |
|
|
$ |
207.4 |
|
|
$ |
143.3 |
|
|
$ |
249.7 |
|
|
$ |
942.3 |
|
|
$ |
744.1 |
|
Attendance |
|
38.8 |
|
|
|
34.0 |
|
|
|
25.6 |
|
|
|
18.0 |
|
|
|
|
|
|
64.4 |
|
|
|
52.0 |
|
|
Average ticket price |
$ |
9.62 |
|
|
$ |
9.11 |
|
|
$ |
4.10 |
|
|
$ |
4.01 |
|
|
$ |
4.93 |
|
|
$ |
7.43 |
|
|
$ |
7.34 |
|
Concession revenue per patron |
$ |
7.64 |
|
|
$ |
6.90 |
|
|
$ |
3.01 |
|
|
$ |
2.86 |
|
|
$ |
3.63 |
|
|
$ |
5.80 |
|
|
$ |
5.50 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
224.0 |
|
|
$ |
185.7 |
|
|
$ |
54.0 |
|
|
$ |
36.9 |
|
|
$ |
65.6 |
|
|
$ |
278.0 |
|
|
$ |
222.6 |
|
Concession supplies |
$ |
50.4 |
|
|
$ |
41.2 |
|
|
$ |
17.0 |
|
|
$ |
11.3 |
|
|
$ |
20.7 |
|
|
$ |
67.4 |
|
|
$ |
52.5 |
|
Salaries and wages |
$ |
92.5 |
|
|
$ |
84.4 |
|
|
$ |
19.6 |
|
|
$ |
15.8 |
|
|
$ |
24.5 |
|
|
$ |
112.1 |
|
|
$ |
100.2 |
|
Facility lease expense |
$ |
61.9 |
|
|
$ |
63.2 |
|
|
$ |
25.1 |
|
|
$ |
17.1 |
|
|
$ |
29.1 |
|
|
$ |
87.0 |
|
|
$ |
80.3 |
|
Utilities and other |
$ |
90.3 |
|
|
$ |
81.3 |
|
|
$ |
29.9 |
|
|
$ |
25.2 |
|
|
$ |
36.4 |
|
|
$ |
120.2 |
|
|
$ |
106.5 |
|
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
Six Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|||||||||||||||||||
Revenue and Attendance |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Constant
|
|
|
2023 |
|
|
2022 |
|
|||||||
Admissions revenue |
$ |
618.1 |
|
|
$ |
501.5 |
|
|
$ |
171.3 |
|
|
$ |
116.2 |
|
|
$ |
204.7 |
|
|
$ |
789.4 |
|
|
$ |
617.7 |
|
Concession revenue |
|
483.1 |
|
|
|
375.7 |
|
|
|
126.1 |
|
|
|
83.3 |
|
|
|
151.5 |
|
|
|
609.2 |
|
|
|
459.0 |
|
Other revenue |
|
112.8 |
|
|
|
95.6 |
|
|
|
41.6 |
|
|
|
32.3 |
|
|
|
50.5 |
|
|
|
154.4 |
|
|
|
127.9 |
|
Total revenue |
$ |
1,214.0 |
|
|
$ |
972.8 |
|
|
$ |
339.0 |
|
|
$ |
231.8 |
|
|
$ |
406.7 |
|
|
$ |
1,553.0 |
|
|
$ |
1,204.6 |
|
Attendance |
|
64.0 |
|
|
|
54.7 |
|
|
|
43.3 |
|
|
|
30.4 |
|
|
|
|
|
|
107.3 |
|
|
|
85.1 |
|
|
Average ticket price |
$ |
9.66 |
|
|
$ |
9.17 |
|
|
$ |
3.96 |
|
|
$ |
3.82 |
|
|
$ |
4.73 |
|
|
$ |
7.36 |
|
|
$ |
7.26 |
|
Concession revenue per patron |
$ |
7.55 |
|
|
$ |
6.87 |
|
|
$ |
2.91 |
|
|
$ |
2.74 |
|
|
$ |
3.50 |
|
|
$ |
5.68 |
|
|
$ |
5.39 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
357.5 |
|
|
$ |
291.9 |
|
|
$ |
87.2 |
|
|
$ |
58.3 |
|
|
$ |
105.4 |
|
|
$ |
444.7 |
|
|
$ |
350.2 |
|
Concession supplies |
$ |
83.3 |
|
|
$ |
64.1 |
|
|
$ |
27.7 |
|
|
$ |
18.4 |
|
|
$ |
33.6 |
|
|
$ |
111.0 |
|
|
$ |
82.5 |
|
Salaries and wages |
$ |
164.0 |
|
|
$ |
151.5 |
|
|
$ |
34.3 |
|
|
$ |
28.5 |
|
|
$ |
42.1 |
|
|
$ |
198.3 |
|
|
$ |
180.0 |
|
Facility lease expense |
$ |
123.9 |
|
|
$ |
125.7 |
|
|
$ |
42.6 |
|
|
$ |
28.3 |
|
|
$ |
48.9 |
|
|
$ |
166.5 |
|
|
$ |
154.0 |
|
Utilities and other |
$ |
170.8 |
|
|
$ |
149.4 |
|
|
$ |
53.2 |
|
|
$ |
44.0 |
|
|
$ |
64.1 |
|
|
$ |
224.0 |
|
|
$ |
193.4 |
|
(1) |
Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2022. We translate the results of our international operating segment from local currencies into |
Other Segment Information (unaudited, in millions) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
180.8 |
|
|
$ |
111.1 |
|
|
$ |
244.2 |
|
|
$ |
125.5 |
|
International |
|
|
50.7 |
|
|
|
27.2 |
|
|
|
73.5 |
|
|
|
38.0 |
|
Total Adjusted EBITDA (1) |
|
$ |
231.5 |
|
|
$ |
138.3 |
|
|
$ |
317.7 |
|
|
$ |
163.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
21.1 |
|
|
$ |
16.5 |
|
|
$ |
43.8 |
|
|
$ |
30.5 |
|
International |
|
|
7.2 |
|
|
|
5.4 |
|
|
|
10.8 |
|
|
|
10.1 |
|
Total Capital expenditures |
|
$ |
28.3 |
|
|
$ |
21.9 |
|
|
$ |
54.6 |
|
|
$ |
40.6 |
|
(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 |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income (loss) |
|
$ |
120.4 |
|
|
$ |
(72.8 |
) |
|
$ |
117.9 |
|
|
$ |
(145.3 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
12.3 |
|
|
|
4.7 |
|
|
|
8.4 |
|
|
|
2.9 |
|
Interest expense (1) |
|
|
37.1 |
|
|
|
38.1 |
|
|
|
73.9 |
|
|
|
76.2 |
|
Other (income) expense, net (2) |
|
|
(12.1 |
) |
|
|
11.4 |
|
|
|
(14.0 |
) |
|
|
14.6 |
|
Cash distributions from equity investees (3) |
|
|
1.6 |
|
|
|
0.9 |
|
|
|
1.6 |
|
|
|
1.5 |
|
Depreciation and amortization |
|
|
52.8 |
|
|
|
61.0 |
|
|
|
107.7 |
|
|
|
122.7 |
|
Impairment of long-lived and other assets |
|
|
9.4 |
|
|
|
92.3 |
|
|
|
10.1 |
|
|
|
92.3 |
|
Restructuring costs |
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.2 |
) |
Gain on disposal of assets and other |
|
|
(3.0 |
) |
|
|
(0.7 |
) |
|
|
(2.7 |
) |
|
|
(7.6 |
) |
Loss on debt extinguishment and refinancing |
|
|
10.7 |
|
|
|
— |
|
|
|
10.7 |
|
|
|
— |
|
Non-cash rent expense |
|
|
(4.5 |
) |
|
|
(2.4 |
) |
|
|
(8.4 |
) |
|
|
(4.7 |
) |
Share-based awards compensation expense (4) |
|
|
6.8 |
|
|
|
6.0 |
|
|
|
12.5 |
|
|
|
11.1 |
|
Adjusted EBITDA |
|
$ |
231.5 |
|
|
$ |
138.3 |
|
|
$ |
317.7 |
|
|
$ |
163.5 |
|
(1) |
Includes amortization of debt issuance costs, amortization of original issue discount and amortization of accumulated gains (losses) for amended swap agreements. |
(2) |
Includes interest income, foreign currency exchange and other related (gains) losses, 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/20230804809256/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
What were Cinemark's net income and Adjusted EBITDA for the quarter?
How much debt did Cinemark pay down in the quarter?
What is Cinemark's cash balance at the end of the quarter?
What is the company's plan for debt management?
What were Cinemark's total revenue and attendance for the quarter?
