Business Wire | May 7, 2021 06:30AM EDT

Cinemark Holdings, Inc. Reports Results for the First Quarter of 2021

May 07, 2021

PLANO, Texas--(BUSINESS WIRE)--May 07, 2021--Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three months ended March 31, 2021. The Company's financial results continue to be impacted by the COVID-19 pandemic, as the Company continues to reopen its theatres based on local mandates. As of March 31, 2021, the Company had 301 domestic and 78 international theatres open, showing a limited volume of new releases along with library content during reduced operating hours.

Cinemark Holdings, Inc.'s total revenues for the three months ended March 31, 2021 were $114.4 million compared to $543.6 million for the three months ended March 31, 2020 For the three months ended March 31, 2021, admissions revenues were $56.1 million and concession revenues were $39.5 million. For the three months ended March 31, 2021, attendance was 7.7 million patrons, average ticket price was $7.25 and concession revenues per patron were $5.10.

Net loss attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2021 was $208.2 million compared to $59.6 million for the three months ended March 31, 2020. Diluted loss per share for the three months ended March 31, 2021 was $1.75 compared to $0.51 for the three months ended March 31, 2020.

Adjusted EBITDA for the three months ended March 31, 2021 was $(92.0) million compared to $66.2 million for the three months ended March 31, 2020. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

"Over a year has passed since COVID-19 prompted the shutdown of our global circuit, and today I am pleased to report that we are now actively on the road to recovery," stated Mark Zoradi, Cinemark CEO. "We are highly optimistic about theatrical exhibition's resurgence in the U.S. over the coming months on account of a range of factors, including the rapid pace of the vaccine rollout, improving consumer sentiment about returning to movie theaters, recent box office successes and confirmation of consistent product supply. On a global basis, we remain confident that, like the U.S., other countries will quickly recover as lockdowns reign in the virus and vaccines are more widely disseminated."

As of March 31, 2021, the Company's aggregate screen count was 5,872 and the Company had commitments to open six new theatres and 72 screens during the remainder of 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 523 theatres with 5,872 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 26, 2021 and the Current Report on Form 8-K filed March 4, 2021. 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

March 31,

2021 2020

Statement of income data:

Revenues

Admissions $ 56,121 $ 292,462

Concession 39,488 190,356

Other 18,752 60,798

Total revenues 114,361 543,616

Cost of operations

Film rentals and advertising 23,205 156,617

Concession supplies 7,140 34,812

Salaries and wages 31,166 87,544

Facility lease expense 64,829 82,241

Utilities and other 49,144 100,523

General and administrative expenses 35,858 41,018

Depreciation and amortization 68,160 65,256

Impairment of long-lived assets - 16,619

Restructuring costs (208 ) -

Loss on disposal of assets and other 4,505 1,905

Total cost of operations 283,799 586,535

Operating loss (169,438 ) (42,919 )

Interest expense (36,553 ) (24,666 )

Interest income 646 2,084

Loss on extinguishment of debt (2,603 ) -

Foreign currency exchange loss (2,974 ) (4,848 )

Distributions from NCM 77 5,224

Interest expense - NCM (5,835 ) (5,891 )

Equity in income (loss) of affiliates (6,806 ) 8,486

Loss before income taxes (223,486 ) (62,530 )

Income taxes (14,643 ) (3,108 )

Net loss $ (208,843 ) $ (59,422 )

Less: Net income (loss) attributable to (602 ) 169 noncontrolling interests

Net loss attributable to Cinemark Holdings, Inc. $ (208,241 ) $ (59,591 )

Loss per share attributable to Cinemark Holdings, Inc.'s common stockholders

Basic $ (1.75 ) $ (0.51 )

Diluted $ (1.75 ) $ (0.51 )

Weighted average shares outstanding - Diluted 117,177 116,496

Other Operating Data

(unaudited, in thousands)

As of

As of

March 31,

December 31,

2021

2020

Balance sheet data:

Cash and cash equivalents

$

512,828

$

655,338

Theatre properties and equipment, net

$

1,533,298

$

1,615,062

Total assets

$

5,296,954

$

5,562,922

Long-term debt, including current portion, net of unamortized debt discounts and debt issue costs

$

2,495,148

$

2,395,218

Equity

$

523,983

$

798,969

Other Operating Data

(unaudited, in thousands)

As of As of

March 31, December 31,

2021 2020

Balance sheet data:

Cash and cash equivalents $ 512,828 $ 655,338

Theatre properties and equipment, net $ 1,533,298 $ 1,615,062

Total assets $ 5,296,954 $ 5,562,922

Long-term debt, including current portion, netof unamortized debt discounts and debt issue $ 2,495,148 $ 2,395,218 costs

Equity $ 523,983 $ 798,969

Segment Information

(unaudited, in millions, except per patron data)

U.S. Operating Segment

International Operating Segment

Consolidated

Three Months Ended March 31,

Three Months Ended March 31,

Constant Currency (1)

Three Months Ended March 31,

Revenues

2021

2020

%

Change

2021

2020

%

Change

2021

%

Change

2021

2020

%

Change

Admissions revenues

$

48.5

$

232.3

$

7.6

$

60.2

$

8.6

$

56.1

$

292.5

Concession revenues

$

33.0

$

152.8

$

6.5

$

37.6

$

7.1

$

39.5

$

190.4

Other revenues

$

15.6

$

42.3

$

3.2

$

18.4

$

3.7

$

18.8

$

60.7

Total revenues

$

97.1

$

427.4

$

17.3

$

116.2

$

19.4

$

114.4

$

543.6

Attendance

5.2

27.9

2.5

17.9

7.7

45.8

Average ticket price

$

9.25

$

8.33

11.0

%

$

3.05

$

3.36

(9.2

)%

$

3.45

2.7

%

$

7.25

$

6.39

13.5

%

Concession revenues per patron

$

6.30

$

5.48

15.0

%

$

2.58

$

2.10

22.9

%

$

2.82

34.3

%

$

5.10

$

4.16

22.6

%

Segment Information

(unaudited, in millions, except per patron data)

U.S. Operating Segment International Operating Segment Consolidated

Three Months Three Months Constant Three Months Ended March 31, Ended March 31, Currency ^(1) Ended March 31,

% % % %Revenues 2021 2020 2021 2020 2021 2021 2020 Change Change Change Change

Admissions revenues $ 48.5 $ 232.3 $ 7.6 $ 60.2 $ 8.6 $ 56.1 $ 292.5

Concession revenues $ 33.0 $ 152.8 $ 6.5 $ 37.6 $ 7.1 $ 39.5 $ 190.4

Other revenues $ 15.6 $ 42.3 $ 3.2 $ 18.4 $ 3.7 $ 18.8 $ 60.7

Total revenues $ 97.1 $ 427.4 $ 17.3 $ 116.2 $ 19.4 $ 114.4 $ 543.6

Attendance 5.2 27.9 2.5 17.9 7.7 45.8

Average ticket price $ 9.25 $ 8.33 11.0 % $ 3.05 $ 3.36 (9.2 ) $ 3.45 2.7 % $ 7.25 $ 6.39 13.5 % %

Concession revenues per $ 6.30 $ 5.48 15.0 % $ 2.58 $ 2.10 22.9 % $ 2.82 34.3 % $ 5.10 $ 4.16 22.6 %patron

U.S. Operating Segment

International Operating Segment

Consolidated

Three Months Ended

Three Months Ended

Three Months Ended

March 31,

March 31,

March 31,

Cost of Operations

2021

2020

2021

2020

Constant Currency (1) 2021

2021

2020

Film rentals and advertising

$

19.3

$

128.0

$

3.9

$

28.6

$

4.4

$

23.2

$

156.6

Concession supplies

$

5.5

$

25.6

$

1.7

$

9.2

$

1.9

$

7.2

$

34.8

Salaries and wages

$

24.9

$

71.2

$

6.3

$

16.4

$

7.2

$

31.2

$

87.6

Facility lease expense

$

59.0

$

65.4

$

5.8

$

16.8

$

6.3

$

64.8

$

82.2

Utilities and other

$

40.0

$

75.0

$

9.1

$

25.5

$

10.5

$

49.1

$

100.5

U.S. Operating International Operating Consolidated Segment Segment

Three Months Ended Three Months Ended Three Months Ended

March 31, March 31, March 31,

ConstantCost of 2021 2020 2021 2020 Currency 2021 2020 Operations ^(1) 2021

Filmrentals and $ 19.3 $ 128.0 $ 3.9 $ 28.6 $ 4.4 $ 23.2 $ 156.6 advertising

Concession $ 5.5 $ 25.6 $ 1.7 $ 9.2 $ 1.9 $ 7.2 $ 34.8 supplies

Salaries $ 24.9 $ 71.2 $ 6.3 $ 16.4 $ 7.2 $ 31.2 $ 87.6 and wages

Facilitylease $ 59.0 $ 65.4 $ 5.8 $ 16.8 $ 6.3 $ 64.8 $ 82.2 expense

Utilities $ 40.0 $ 75.0 $ 9.1 $ 25.5 $ 10.5 $ 49.1 $ 100.5 and other

(1)Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2020. 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

Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2020. 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 (1) 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

March 31,

2021

2020

Adjusted EBITDA (1)

U.S.

$

(76,997

)

$

56,072

International

(14,953

)

10,139

Total Adjusted EBITDA (1)

$

(91,950

)

$

66,211

Capital expenditures

U.S.

$

13,641

$

25,673

International

4,039

8,470

Total capital expenditures

$

17,680

$

34,143

Other Segment Information

(unaudited, in thousands)

Three Months Ended

March 31,

2021 2020

Adjusted EBITDA^ (1)

U.S. $ (76,997 ) $ 56,072

International (14,953 ) 10,139

Total Adjusted EBITDA ^(1) $ (91,950 ) $ 66,211

Capital expenditures

U.S. $ 13,641 $ 25,673

International 4,039 8,470

Total capital expenditures $ 17,680 $ 34,143

(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

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 (1) 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

March 31,

2021

2020

Net income (loss)

$

(208,843

)

$

(59,422

)

Add (deduct):

Income taxes

(14,643

)

(3,108

)

Interest expense

36,553

24,666

Other expense, net (a)

14,971

169

Distributions from DCIP (b)

-

5,161

Cash distributions from other equity investees (c)

156

11,445

Depreciation and amortization

68,160

65,256

Impairment of long-lived assets

-

16,619

Restructuring costs

(208

)

-

Loss on disposal of assets and other

4,505

1,905

Loss on extinguishment of debt

2,603

-

Non-cash rent

128

(591

)

Share based awards compensation expense (d)

4,668

4,111

Adjusted EBITDA

$

(91,950

)

$

66,211

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

Three Months Ended

March 31,

2021 2020

Net income (loss) $ (208,843 ) $ (59,422 )

Add (deduct):

Income taxes (14,643 ) (3,108 )

Interest expense 36,553 24,666

Other expense, net ^(a) 14,971 169

Distributions from DCIP ^(b) - 5,161

Cash distributions from other equity investees ^ 156 11,445 (c)

Depreciation and amortization 68,160 65,256

Impairment of long-lived assets - 16,619

Restructuring costs (208 ) -

Loss on disposal of assets and other 4,505 1,905

Loss on extinguishment of debt 2,603 -

Non-cash rent 128 (591 )

Share based awards compensation expense ^(d) 4,668 4,111

Adjusted EBITDA $ (91,950 ) $ 66,211

(a)

Includes interest income, foreign currency exchange loss, interest expense - NCM and equity in income (loss) of affiliates.

(b)

Cash distributions from DCIP, which were recorded as a reduction of the Company's investment in DCIP.

(c)

Cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances.

(d)

Non-cash expense included in general and administrative expenses.

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CONTACT: Financial Contact : Chanda Brashears - 972-665-1671 or cbrashears@cinemark.com Media Contact: Caitlin Piper - 972-665-1418 or pr@cinemark.com