Cinemark Holdings, Inc. Reports Third Quarter 2024 Results
Delivered record-high third quarter revenue of
Reported
Adjusted EBITDA of
“Strong, sustained consumer enthusiasm for shared, larger-than-life, theatrical experiences was once again on full display in the third quarter as film results far outpaced expectations, delivering the highest quarterly box office since the pandemic, which climbed to within 4% of 3Q19,” stated
Q3 2024 Earnings Highlights
- Entertained 60 million moviegoers across global footprint.
- Delivered domestic box office results that surpassed North American industry recovery by over 600 basis points year-over-year and 1,100 basis points versus Q3 2019; furthermore, international admissions outpaced Latin American industry recovery by 100 basis points year-over-year and 800 basis points compared to Q3 2019.
-
Sustained market share growth versus FY 2019 in excess of 100 basis points in the
U.S. andLatin America ; continued to maintain the most significant market share gains compared with pre-pandemic results of all major exhibitors. - Continued to meaningfully advance and benefit from strategic initiatives to build audiences, grow new sources of revenue and further enhance our industry-leading operating capabilities.
-
Achieved all-time-high food and beverage per caps of
$7.97 in theU.S. and$6.08 worldwide. -
Reported record-high third quarter total revenue of
$922 million representing a 5% increase year-over-year and a 12% increase versus Q3 2019. -
Net income was
$189 million for the third quarter, with diluted earnings per share attributable toCinemark Holdings, Inc.
of$1.19 . -
Delivered record-high third quarter Adjusted EBITDA of
$221 million with a robust 23.9% Adjusted EBITDA margin, which expanded 140 basis points year-over-year. -
Generated
$107 million in Cash from Operating Activities and$64 million of Free Cash Flow; ended the third quarter with a strong cash balance of$928 million . -
Successfully refinanced unsecured notes due 2026 with the issuance of
$500 million 7.00% unsecured notes due 2032 and repaid$6 million of COVID-related debt inLatin America .
Financial Results
Net income attributable to
Adjusted EBITDA for the three months ended
Net income attributable to
Adjusted EBITDA for the nine months ended
Webcast – Today at
Live Webcast/Replay: Available 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 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
|
||||||||||||||||
Financial and Operating Summary |
||||||||||||||||
(unaudited, in millions, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Statement of income data: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Admissions |
|
$ |
460.4 |
|
|
$ |
443.8 |
|
|
$ |
1,116.0 |
|
|
$ |
1,233.2 |
|
Concession |
|
|
367.3 |
|
|
|
339.8 |
|
|
|
884.4 |
|
|
|
949.0 |
|
Other |
|
|
94.1 |
|
|
|
91.2 |
|
|
|
234.8 |
|
|
|
245.6 |
|
Total revenue |
|
$ |
921.8 |
|
|
$ |
874.8 |
|
|
$ |
2,235.2 |
|
|
$ |
2,427.8 |
|
Cost of operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Film rentals and advertising |
|
|
265.6 |
|
|
|
248.2 |
|
|
|
623.9 |
|
|
|
692.9 |
|
Concession supplies |
|
|
64.5 |
|
|
|
63.0 |
|
|
|
165.1 |
|
|
|
174.0 |
|
Salaries and wages |
|
|
109.9 |
|
|
|
107.9 |
|
|
|
294.1 |
|
|
|
306.2 |
|
Facility lease expense |
|
|
85.9 |
|
|
|
84.4 |
|
|
|
244.7 |
|
|
|
250.9 |
|
Utilities and other |
|
|
127.0 |
|
|
|
129.5 |
|
|
|
332.1 |
|
|
|
353.5 |
|
General and administrative expenses |
|
|
56.4 |
|
|
|
48.2 |
|
|
|
161.0 |
|
|
|
144.7 |
|
Depreciation and amortization |
|
|
49.1 |
|
|
|
51.9 |
|
|
|
148.3 |
|
|
|
159.6 |
|
Impairment of long-lived and other assets |
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
|
|
12.1 |
|
(Gain) loss on disposal of assets and other |
|
|
(0.1 |
) |
|
|
(6.1 |
) |
|
|
2.0 |
|
|
|
(8.8 |
) |
Total cost of operations |
|
|
758.3 |
|
|
|
729.0 |
|
|
|
1,971.2 |
|
|
|
2,085.1 |
|
Operating income |
|
|
163.5 |
|
|
|
145.8 |
|
|
|
264.0 |
|
|
|
342.7 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(36.7 |
) |
|
|
(38.1 |
) |
|
|
(109.0 |
) |
|
|
(112.0 |
) |
Interest income |
|
|
14.2 |
|
|
|
15.3 |
|
|
|
40.3 |
|
|
|
40.2 |
|
Loss on debt amendments and extinguishments |
|
|
(3.0 |
) |
|
|
— |
|
|
|
(5.5 |
) |
|
|
(10.7 |
) |
Foreign currency exchange and other related loss |
|
|
(3.0 |
) |
|
|
(11.0 |
) |
|
|
(7.9 |
) |
|
|
(19.4 |
) |
Interest expense - NCM |
|
|
(5.4 |
) |
|
|
(5.6 |
) |
|
|
(16.5 |
) |
|
|
(17.0 |
) |
Equity in income of affiliates |
|
|
5.0 |
|
|
|
1.5 |
|
|
|
11.3 |
|
|
|
1.2 |
|
Net gain on investment in NCMI |
|
|
11.6 |
|
|
|
4.7 |
|
|
|
12.8 |
|
|
|
13.9 |
|
Income before income taxes |
|
|
146.2 |
|
|
|
112.6 |
|
|
|
189.5 |
|
|
|
238.9 |
|
Income tax (benefit) expense |
|
|
(42.7 |
) |
|
|
21.4 |
|
|
|
(71.3 |
) |
|
|
29.8 |
|
Net income |
|
$ |
188.9 |
|
|
$ |
91.2 |
|
|
$ |
260.8 |
|
|
$ |
209.1 |
|
Less: Net income attributable to noncontrolling interests |
|
|
1.1 |
|
|
|
1.0 |
|
|
|
2.4 |
|
|
|
2.9 |
|
Net income attributable to |
|
$ |
187.8 |
|
|
$ |
90.2 |
|
|
$ |
258.4 |
|
|
$ |
206.2 |
|
Net income per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.54 |
|
|
$ |
0.74 |
|
|
$ |
2.11 |
|
|
$ |
1.70 |
|
Diluted |
|
$ |
1.19 |
|
|
$ |
0.61 |
|
|
$ |
1.73 |
|
|
$ |
1.43 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
120.0 |
|
|
|
119.2 |
|
|
|
119.8 |
|
|
|
119.0 |
|
Diluted |
|
|
158.2 |
|
|
|
152.0 |
|
|
|
153.7 |
|
|
|
151.8 |
|
Other Operating Data |
||||||||
(unaudited, in millions) |
||||||||
|
|
As of |
|
|||||
|
|
|
|
|
|
|
||
Balance sheet data: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
928.3 |
|
|
$ |
849.1 |
|
Theatre properties and equipment, net |
|
$ |
1,121.2 |
|
|
$ |
1,161.7 |
|
Total assets |
|
$ |
4,934.9 |
|
|
$ |
4,836.8 |
|
Total long-term debt, net of unamortized debt issuance costs and original issue discount |
|
$ |
2,333.8 |
|
|
$ |
2,399.1 |
|
Total equity |
|
$ |
567.9 |
|
|
$ |
318.8 |
|
|
|
Nine Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows provided by (used for): |
|
|
|
|
|
|
||
Operating activities (1) |
|
$ |
269.6 |
|
|
$ |
335.8 |
|
Investing activities |
|
$ |
(89.1 |
) |
|
$ |
(74.9 |
) |
Financing activities |
|
$ |
(94.7 |
) |
|
$ |
(118.0 |
) |
(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: |
|
|
Nine Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Reconciliation of free cash flow: |
|
|
|
|
|
|
||
Cash flows provided by operating activities |
|
$ |
269.6 |
|
|
$ |
335.8 |
|
Less: capital expenditures |
|
|
90.2 |
|
|
|
89.7 |
|
Free cash flow |
|
$ |
179.4 |
|
|
$ |
246.1 |
|
Segment Information |
|||||||||||||||||||||||||||
(unaudited, in millions, except per patron data) |
|||||||||||||||||||||||||||
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
Three Months Ended
|
|
|
Three Months Ended |
|
|
Three Months Ended
|
|
|||||||||||||||||||
Revenue and Attendance |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Constant
|
|
|
2024 |
|
|
2023 |
|
|||||||
Admissions revenue |
$ |
375.2 |
|
|
$ |
350.4 |
|
|
$ |
85.2 |
|
|
$ |
93.4 |
|
|
$ |
131.8 |
|
|
$ |
460.4 |
|
|
$ |
443.8 |
|
Concession revenue |
|
299.6 |
|
|
|
268.0 |
|
|
|
67.7 |
|
|
|
71.8 |
|
|
|
103.0 |
|
|
|
367.3 |
|
|
|
339.8 |
|
Other revenue |
|
66.6 |
|
|
|
64.1 |
|
|
|
27.5 |
|
|
|
27.1 |
|
|
|
42.3 |
|
|
|
94.1 |
|
|
|
91.2 |
|
Total revenue |
$ |
741.4 |
|
|
$ |
682.5 |
|
|
$ |
180.4 |
|
|
$ |
192.3 |
|
|
$ |
277.1 |
|
|
$ |
921.8 |
|
|
$ |
874.8 |
|
Attendance |
|
37.6 |
|
|
|
37.5 |
|
|
|
22.8 |
|
|
|
24.4 |
|
|
|
|
|
|
60.4 |
|
|
|
61.9 |
|
|
Average ticket price |
$ |
9.98 |
|
|
$ |
9.34 |
|
|
$ |
3.74 |
|
|
$ |
3.83 |
|
|
$ |
5.78 |
|
|
$ |
7.62 |
|
|
$ |
7.17 |
|
Concession revenue per patron |
$ |
7.97 |
|
|
$ |
7.15 |
|
|
$ |
2.97 |
|
|
$ |
2.94 |
|
|
$ |
4.52 |
|
|
$ |
6.08 |
|
|
$ |
5.49 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
222.3 |
|
|
$ |
201.1 |
|
|
$ |
43.3 |
|
|
$ |
47.1 |
|
|
$ |
67.7 |
|
|
$ |
265.6 |
|
|
$ |
248.2 |
|
Concession supplies |
$ |
49.3 |
|
|
$ |
47.7 |
|
|
$ |
15.2 |
|
|
$ |
15.3 |
|
|
$ |
23.0 |
|
|
$ |
64.5 |
|
|
$ |
63.0 |
|
Salaries and wages |
$ |
91.1 |
|
|
$ |
89.0 |
|
|
$ |
18.8 |
|
|
$ |
18.9 |
|
|
$ |
29.4 |
|
|
$ |
109.9 |
|
|
$ |
107.9 |
|
Facility lease expense |
$ |
63.5 |
|
|
$ |
61.0 |
|
|
$ |
22.4 |
|
|
$ |
23.4 |
|
|
$ |
31.0 |
|
|
$ |
85.9 |
|
|
$ |
84.4 |
|
Utilities and other |
$ |
97.3 |
|
|
$ |
98.9 |
|
|
$ |
29.7 |
|
|
$ |
30.6 |
|
|
$ |
46.3 |
|
|
$ |
127.0 |
|
|
$ |
129.5 |
|
|
|
|
|
International Operating Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
Nine Months Ended
|
|
|
Nine Months Ended |
|
|
Nine Months Ended
|
|
|||||||||||||||||||
Revenue and Attendance |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Constant
|
|
|
2024 |
|
|
2023 |
|
|||||||
Admissions revenue |
$ |
894.4 |
|
|
$ |
968.5 |
|
|
$ |
221.6 |
|
|
$ |
264.7 |
|
|
$ |
340.9 |
|
|
$ |
1,116.0 |
|
|
$ |
1,233.2 |
|
Concession revenue |
|
709.6 |
|
|
|
751.1 |
|
|
|
174.8 |
|
|
|
197.9 |
|
|
|
265.2 |
|
|
|
884.4 |
|
|
|
949.0 |
|
Other revenue |
|
166.4 |
|
|
|
176.9 |
|
|
|
68.4 |
|
|
|
68.7 |
|
|
|
104.0 |
|
|
|
234.8 |
|
|
|
245.6 |
|
Total revenue |
$ |
1,770.4 |
|
|
$ |
1,896.5 |
|
|
$ |
464.8 |
|
|
$ |
531.3 |
|
|
$ |
710.1 |
|
|
$ |
2,235.2 |
|
|
$ |
2,427.8 |
|
Attendance |
|
90.3 |
|
|
|
101.5 |
|
|
|
59.8 |
|
|
|
67.7 |
|
|
|
|
|
|
150.1 |
|
|
|
169.2 |
|
|
Average ticket price |
$ |
9.90 |
|
|
$ |
9.54 |
|
|
$ |
3.71 |
|
|
$ |
3.91 |
|
|
$ |
5.70 |
|
|
$ |
7.44 |
|
|
$ |
7.29 |
|
Concession revenue per patron |
$ |
7.86 |
|
|
$ |
7.40 |
|
|
$ |
2.92 |
|
|
$ |
2.92 |
|
|
$ |
4.43 |
|
|
$ |
5.89 |
|
|
$ |
5.61 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
513.2 |
|
|
$ |
558.6 |
|
|
$ |
110.7 |
|
|
$ |
134.3 |
|
|
$ |
173.0 |
|
|
$ |
623.9 |
|
|
$ |
692.9 |
|
Concession supplies |
$ |
126.8 |
|
|
$ |
131.0 |
|
|
$ |
38.3 |
|
|
$ |
43.0 |
|
|
$ |
57.8 |
|
|
$ |
165.1 |
|
|
$ |
174.0 |
|
Salaries and wages |
$ |
244.4 |
|
|
$ |
253.0 |
|
|
$ |
49.7 |
|
|
$ |
53.2 |
|
|
$ |
80.4 |
|
|
$ |
294.1 |
|
|
$ |
306.2 |
|
Facility lease expense |
$ |
184.0 |
|
|
$ |
184.9 |
|
|
$ |
60.7 |
|
|
$ |
66.0 |
|
|
$ |
81.4 |
|
|
$ |
244.7 |
|
|
$ |
250.9 |
|
Utilities and other |
$ |
255.7 |
|
|
$ |
269.7 |
|
|
$ |
76.4 |
|
|
$ |
83.8 |
|
|
$ |
120.6 |
|
|
$ |
332.1 |
|
|
$ |
353.5 |
|
(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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
180.7 |
|
|
$ |
151.2 |
|
|
$ |
338.6 |
|
|
$ |
395.4 |
|
International |
|
|
39.8 |
|
|
|
45.6 |
|
|
|
94.7 |
|
|
|
119.1 |
|
Total Adjusted EBITDA (1) |
|
$ |
220.5 |
|
|
$ |
196.8 |
|
|
$ |
433.3 |
|
|
$ |
514.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
33.5 |
|
|
$ |
26.9 |
|
|
$ |
67.7 |
|
|
$ |
70.7 |
|
International |
|
|
9.5 |
|
|
|
8.2 |
|
|
|
22.5 |
|
|
|
19.0 |
|
Total capital expenditures |
|
$ |
43.0 |
|
|
$ |
35.1 |
|
|
$ |
90.2 |
|
|
$ |
89.7 |
|
(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. A reconciliation of net income to Adjusted EBITDA is provided below. |
Reconciliation of Adjusted EBITDA |
||||||||||||||||
(unaudited, in millions) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income |
|
$ |
188.9 |
|
|
$ |
91.2 |
|
|
$ |
260.8 |
|
|
$ |
209.1 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax (benefit) expense |
|
|
(42.7 |
) |
|
|
21.4 |
|
|
|
(71.3 |
) |
|
|
29.8 |
|
Interest expense (1) |
|
|
36.7 |
|
|
|
38.1 |
|
|
|
109.0 |
|
|
|
112.0 |
|
Other income, net (2) |
|
|
(22.4 |
) |
|
|
(4.9 |
) |
|
|
(40.0 |
) |
|
|
(18.9 |
) |
Cash distributions from equity investees (3) |
|
|
2.2 |
|
|
|
1.6 |
|
|
|
5.1 |
|
|
|
3.2 |
|
Depreciation and amortization |
|
|
49.1 |
|
|
|
51.9 |
|
|
|
148.3 |
|
|
|
159.6 |
|
Impairment of long-lived and other assets |
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
|
|
12.1 |
|
(Gain) loss on disposal of assets and other |
|
|
(0.1 |
) |
|
|
(6.1 |
) |
|
|
2.0 |
|
|
|
(8.8 |
) |
Loss on debt amendments and extinguishments |
|
|
3.0 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
10.7 |
|
Non-cash rent expense |
|
|
(2.6 |
) |
|
|
(4.8 |
) |
|
|
(10.2 |
) |
|
|
(13.2 |
) |
Share-based awards compensation expense (4) |
|
|
8.4 |
|
|
|
6.4 |
|
|
|
24.1 |
|
|
|
18.9 |
|
Adjusted EBITDA |
|
$ |
220.5 |
|
|
$ |
196.8 |
|
|
$ |
433.3 |
|
|
$ |
514.5 |
|
(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 and other related loss, interest expense - NCM, equity in income of affiliates and net gain on investment in NCMI. |
(3) |
Reflects 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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