Business Wire | Aug 6, 2021 06:31AM EDT

Cinemark Holdings, Inc. Reports Results for the Second Quarter Of 2021

Aug. 06, 2021

PLANO, Texas--(BUSINESS WIRE)--Aug. 06, 2021--Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and six months ended June 30, 2021. As of June 30, 2021, the Company had reopened all 323 of its domestic theatres and 152 of its 198 international theatres, showing primarily new releases during reduced operating hours.

Cinemark Holdings, Inc.'s total revenues for the three months ended June 30, 2021 were $294.7 million compared to $9.0 million for the three months ended June 30, 2020. As a reminder, the Company's theatres were closed for a majority of the three months ended June 30, 2020. For the three months ended June 30, 2021, admissions revenues were $153.5 million and concession revenues were $109.8 million. For the three months ended June 30, 2021, attendance was 19.1 million patrons, average ticket price was $8.04 and concession revenues per patron were $5.75.

Net loss attributable to Cinemark Holdings, Inc. for the three months ended June 30, 2021 was $142.5 million compared to $170.4 million for the three months ended June 30, 2020. Diluted loss per share for the three months ended June 30, 2021 was $1.19 compared to $1.45 for the three months ended June 30, 2020.

Adjusted EBITDA for the three months ended June 30, 2021 was $(11.8) million compared to $(117.6) million for the three months ended June 30, 2020. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

"I'm pleased to report that the second quarter recovery of our industry and business progressed at a faster rate than we expected with the North American industry box office more than tripling first quarter results," stated Mark Zoradi, Cinemark CEO. "For Cinemark, the second quarter improved so materially that we were able to substantially reduce our net loss during the quarter and our domestic operations delivered positive Adjusted EBITDA for the first time since our theaters were forced to temporarily shut down last year."

Mr. Zoradi continued, "While the recovery of Latin America continues to lag the U.S. by two to three months driven by the status of the virus, all data points and financial metrics are trending in the right direction. We remain confident in the global resurgence of theatrical exhibition as COVID-19 is contained. We have already witnessed this phenomenon in various parts of the world and we have now experienced it firsthand with North America's second quarter box office results."

Cinemark Holdings, Inc.'s total revenues for the six months ended June 30, 2021 were $409.0 million compared to $552.6 million for the six months ended June 30, 2020. For the six months ended June 30, 2021, admissions revenues were $209.6 million and concession revenues were $149.3 million. For the six months ended June 30, 2021, attendance was 26.8 million patrons, average ticket price was $7.81 and concession revenues per patron were $5.56. For the six months ended June 30, 2020, attendance was 45.8 million patrons, average ticket price was $6.39 and concession revenues per patron were $4.16.

Net loss attributable to Cinemark Holdings, Inc. for the six months ended June 30, 2021 was $350.7 million compared to $230.0 million for the six months ended June 30, 2020. Diluted loss per share for the six months ended June 30, 2021 was $2.94 compared to $1.96 for the six months ended June 30, 2020.

Adjusted EBITDA for the six months ended June 30, 2021 was $(103.8) million compared to $(51.4) million for the six months ended June 30, 2020. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of June 30, 2021, the Company's aggregate screen count was 5,864 and the Company had commitments to open five new theatres and 66 screens during the remainder of 2021 and twelve new theatres and 109 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 521 theatres with 5,864 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 Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Statement of income data:

Revenues

Admissions $ 153,479 $ 37 $ 209,600 $ 292,499

Concession 109,814 124 149,302 190,480

Other 31,359 8,813 50,111 69,611

Total revenues 294,652 8,974 409,013 552,590

Cost of operations

Film rentals and 76,587 388 99,792 157,005 advertising

Concession supplies 18,847 2,379 25,987 37,191

Salaries and wages 50,407 8,864 81,573 96,408

Facility lease 67,213 65,202 132,042 147,443 expense

Utilities and other 61,185 34,871 110,329 135,394

General andadministrative 37,332 28,001 73,190 69,019 expenses

Depreciation and 66,920 63,581 135,080 128,837 amortization

Impairment of - - - 16,619 long-lived assets

Restructuring costs (740 ) 19,538 (948 ) 19,538

Loss on disposal of 2,358 425 6,863 2,330 assets and other

Total cost of 380,109 223,249 663,908 809,784 operations

Operating loss (85,457 ) (214,275 ) (254,895 ) (257,194 )

Interest expense (37,034 ) (31,041 ) (73,587 ) (55,707 )

Interest income 3,828 803 4,474 2,887

Loss onextinguishment of (3,924 ) - (6,527 ) - debt

Foreign currencyexchange gain 2,327 916 (647 ) (3,932 )(loss)

Distributions from - 690 77 5,914 NCM

Interest expense - (5,962 ) (5,934 ) (11,797 ) (11,825 )NCM

Equity in loss of (8,109 ) (20,120 ) (14,915 ) (11,634 )affiliates

Loss before income (134,331 ) (268,961 ) (357,817 ) (331,491 )taxes

Income taxes 7,950 (98,145 ) (6,693 ) (101,253 )

Net loss $ (142,281 ) $ (170,816 ) $ (351,124 ) $ (230,238 )

Less: Net income(loss) attributable 186 (427 ) (416 ) (258 )to noncontrollinginterests

Net lossattributable to $ (142,467 ) $ (170,389 ) $ (350,708 ) $ (229,980 )Cinemark Holdings,Inc.

Loss per shareattributable toCinemark Holdings, Inc.'s commonstockholders

Basic $ (1.19 ) $ (1.45 ) $ (2.94 ) $ (1.96 )

Diluted $ (1.19 ) $ (1.45 ) $ (2.94 ) $ (1.96 )

Weighted averageshares outstanding 117,225 116,666 117,200 116,581 - Diluted

Other Operating Data

(unaudited, in thousands)

As of

As of

June 30,

December 31,

2021

2020

Balance sheet data:

Cash and cash equivalents

$

595,884

$

655,338

Theatre properties and equipment, net

$

1,492,564

$

1,615,062

Total assets

$

5,212,818

$

5,562,922

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

$

2,499,536

$

2,395,218

Equity

$

397,738

$

798,969

Other Operating Data

(unaudited, in thousands)

As of As of

June 30, December 31,

2021 2020

Balance sheet data:

Cash and cash equivalents $ 595,884 $ 655,338

Theatre properties and equipment, net $ 1,492,564 $ 1,615,062

Total assets $ 5,212,818 $ 5,562,922

Long-term debt, including current portion, net of $ 2,499,536 $ 2,395,218unamortized debt discounts and debt issue costs

Equity $ 397,738 $ 798,969

Segment Information

(unaudited, in millions, except per patron data)

U.S. Operating Segment

International Operating Segment

Consolidated

Three Months Ended June 30,

Three Months Ended June 30,

Three Months Ended June 30,

Revenues

2021

2021

2021

Admissions revenues

$

140.6

$

12.9

$

153.5

Concession revenues

$

99.4

$

10.4

$

109.8

Other revenues

$

29.3

$

2.0

$

31.3

Total revenues

$

269.3

$

25.3

$

294.6

Attendance

15.1

4.0

19.1

Average ticket price

$

9.33

$

3.21

$

8.04

Concession revenues per patron

$

6.59

$

2.60

$

5.75

Segment Information

(unaudited, in millions, except per patron data)

U.S. Operating International Consolidated Segment Operating Segment

Three Months Three Months Ended Three Months Ended June 30, Ended June 30, June 30,

Revenues 2021 2021 2021

Admissions revenues $ 140.6 $ 12.9 $ 153.5

Concession revenues $ 99.4 $ 10.4 $ 109.8

Other revenues $ 29.3 $ 2.0 $ 31.3

Total revenues $ 269.3 $ 25.3 $ 294.6

Attendance 15.1 4.0 19.1

Average ticket price $ 9.33 $ 3.21 $ 8.04

Concession revenues $ 6.59 $ 2.60 $ 5.75per patron

U.S. Operating Segment

International Operating Segment

Consolidated

Three Months Ended

Three Months Ended

Three Months Ended

June 30,

June 30,

June 30,

Cost of Operations

2021

2020

2021

2020

Constant Currency (1) 2021

2021

2020

Film rentals and advertising

$

70.3

$

0.2

$

6.3

$

0.2

$

6.6

$

76.6

$

0.4

Concession supplies

$

16.1

$

1.5

$

2.7

$

0.9

$

2.7

$

18.8

$

2.4

Salaries and wages

$

43.5

$

3.4

$

6.9

$

5.4

$

7.2

$

50.4

$

8.8

Facility lease expense

$

59.9

$

59.8

$

7.3

$

5.4

$

7.3

$

67.2

$

65.2

Utilities and other

$

52.9

$

28.8

$

8.3

$

6.1

$

8.5

$

61.2

$

34.9

U.S. Operating International Operating Consolidated Segment Segment

Three Months Three Months Ended Three Months Ended Ended

June 30, June 30, June 30,

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

Film rentals and $ 70.3 $ 0.2 $ 6.3 $ 0.2 $ 6.6 $ 76.6 $ 0.4advertising

Concession supplies $ 16.1 $ 1.5 $ 2.7 $ 0.9 $ 2.7 $ 18.8 $ 2.4

Salaries and wages $ 43.5 $ 3.4 $ 6.9 $ 5.4 $ 7.2 $ 50.4 $ 8.8

Facility lease $ 59.9 $ 59.8 $ 7.3 $ 5.4 $ 7.3 $ 67.2 $ 65.2expense

Utilities and other $ 52.9 $ 28.8 $ 8.3 $ 6.1 $ 8.5 $ 61.2 $ 34.9

U.S. Operating Segment

International Operating Segment

Consolidated

Six Months Ended June 30,

Six Months Ended June 30,

Constant Currency (1)

Six Months Ended June 30,

Revenues

2021

2020

2021

2020

2021

2021

2020

Admissions revenues

$

189.1

$

232.3

$

20.5

$

60.2

$

21.9

$

209.6

$

292.5

Concession revenues

$

132.4

$

152.8

$

16.9

$

37.7

$

17.8

$

149.3

$

190.5

Other revenues

$

44.9

$

50.4

$

5.2

$

19.2

$

6.0

$

50.1

$

69.6

Total revenues

$

366.4

$

435.5

$

42.6

$

117.1

$

45.7

$

409.0

$

552.6

Attendance

20.3

27.9

6.5

17.9

26.8

45.8

Average ticket price

$

9.31

$

8.33

$

3.15

$

3.36

$

3.36

$

7.81

$

6.39

Concession revenues per patron

$

6.52

$

5.48

$

2.59

$

2.11

$

2.73

$

5.56

$

4.16

U.S. Operating International Operating Consolidated Segment Segment

Six Months Ended Six Months Ended Constant Six Months Ended June 30, June 30, Currency June 30, ^(1)

Revenues 2021 2020 2021 2020 2021 2021 2020

Admissions $ 189.1 $ 232.3 $ 20.5 $ 60.2 $ 21.9 $ 209.6 $ 292.5revenues

Concession $ 132.4 $ 152.8 $ 16.9 $ 37.7 $ 17.8 $ 149.3 $ 190.5revenues

Other $ 44.9 $ 50.4 $ 5.2 $ 19.2 $ 6.0 $ 50.1 $ 69.6revenues

Total $ 366.4 $ 435.5 $ 42.6 $ 117.1 $ 45.7 $ 409.0 $ 552.6revenues

Attendance 20.3 27.9 6.5 17.9 26.8 45.8

Averageticket $ 9.31 $ 8.33 $ 3.15 $ 3.36 $ 3.36 $ 7.81 $ 6.39price

Concessionrevenues $ 6.52 $ 5.48 $ 2.59 $ 2.11 $ 2.73 $ 5.56 $ 4.16per patron

U.S. Operating Segment

International Operating Segment

Consolidated

Six Months Ended

Six Months Ended

Six Months Ended

June 30,

June 30,

June 30,

Cost of Operations

2021

2020

2021

2020

Constant Currency (1) 2021

2021

2020

Film rentals and advertising

$

89.6

$

128.2

$

10.2

$

28.8

$

11.0

$

99.8

$

157.0

Concession supplies

$

21.6

$

27.1

$

4.4

$

10.1

$

4.6

$

26.0

$

37.2

Salaries and wages

$

68.4

$

74.6

$

13.2

$

21.8

$

14.4

$

81.6

$

96.4

Facility lease expense

$

118.9

$

125.2

$

13.1

$

22.2

$

13.6

$

132.0

$

147.4

Utilities and other

$

92.9

$

103.8

$

17.4

$

31.6

$

19.0

$

110.3

$

135.4

U.S. Operating International Operating Consolidated Segment Segment

Six Months Ended Six Months Ended Six Months Ended

June 30, June 30, June 30,

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

Film rentalsand $ 89.6 $ 128.2 $ 10.2 $ 28.8 $ 11.0 $ 99.8 $ 157.0advertising

Concession $ 21.6 $ 27.1 $ 4.4 $ 10.1 $ 4.6 $ 26.0 $ 37.2supplies

Salaries and $ 68.4 $ 74.6 $ 13.2 $ 21.8 $ 14.4 $ 81.6 $ 96.4wages

Facilitylease $ 118.9 $ 125.2 $ 13.1 $ 22.2 $ 13.6 $ 132.0 $ 147.4expense

Utilities $ 92.9 $ 103.8 $ 17.4 $ 31.6 $ 19.0 $ 110.3 $ 135.4and 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(1) 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

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Adjusted EBITDA (1)

U.S.

$

519

$

(96,252

)

$

(76,478

)

$

(40,180

)

International

(12,340

)

(21,366

)

(27,293

)

(11,227

)

Total Adjusted EBITDA (1)

$

(11,821

)

$

(117,618

)

$

(103,771

)

$

(51,407

)

Capital expenditures

U.S.

$

11,483

$

11,028

$

25,124

$

36,701

International

3,656

1,788

7,695

10,258

Total capital expenditures

$

15,139

$

12,816

$

32,819

$

46,959

Other Segment Information

(unaudited, in thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Adjusted EBITDA^ (1)

U.S. $ 519 $ (96,252 ) $ (76,478 ) $ (40,180 )

International (12,340 ) (21,366 ) (27,293 ) (11,227 )

Total Adjusted EBITDA ^ $ (11,821 ) $ (117,618 ) $ (103,771 ) $ (51,407 )(1)

Capital expenditures

U.S. $ 11,483 $ 11,028 $ 25,124 $ 36,701

International 3,656 1,788 7,695 10,258

Total capital $ 15,139 $ 12,816 $ 32,819 $ 46,959 expenditures

(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(1) 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

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Net income (loss)

$

(142,281

)

$

(170,816

)

$

(351,124

)

$

(230,238

)

Add (deduct):

Income taxes

7,950

(98,145

)

(6,693

)

(101,253

)

Interest expense

37,034

31,041

73,587

55,707

Other expense, net (a)

7,914

24,335

22,885

24,504

Distributions from DCIP (b)

-

5,222

-

10,383

Cash distributions from other equity investees (c)

-

1,456

156

12,901

Depreciation and amortization

66,920

63,581

135,080

128,837

Impairment of long-lived assets

-

-

-

16,619

Restructuring costs

(740

)

19,538

(948

)

19,538

Loss on disposal of assets and other

2,358

425

6,863

2,330

Loss on extinguishment of debt

3,924

-

6,527

-

Non-cash rent

(807

)

1,424

(679

)

833

Share based awards compensation expense (d)

5,907

4,321

10,575

8,432

Adjusted EBITDA

$

(11,821

)

$

(117,618

)

$

(103,771

)

$

(51,407

)

Reconciliation of Adjusted EBITDA

(unaudited, in thousands)

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Net income (loss) $ (142,281 ) $ (170,816 ) $ (351,124 ) $ (230,238 )

Add (deduct):

Income taxes 7,950 (98,145 ) (6,693 ) (101,253 )

Interest expense 37,034 31,041 73,587 55,707

Other expense, net 7,914 24,335 22,885 24,504 ^(a)

Distributions from - 5,222 - 10,383 DCIP ^(b)

Cash distributionsfrom other equity - 1,456 156 12,901 investees ^(c)

Depreciation and 66,920 63,581 135,080 128,837 amortization

Impairment of - - - 16,619 long-lived assets

Restructuring costs (740 ) 19,538 (948 ) 19,538

Loss on disposal of 2,358 425 6,863 2,330 assets and other

Loss onextinguishment of 3,924 - 6,527 - debt

Non-cash rent (807 ) 1,424 (679 ) 833

Share based awardscompensation 5,907 4,321 10,575 8,432 expense ^(d)

Adjusted EBITDA $ (11,821 ) $ (117,618 ) $ (103,771 ) $ (51,407 )

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210806005108/en/

CONTACT: Financial Contact: Chanda Brashears - 972-665-1671 or cbrashears@cinemark.com

CONTACT: Media Contact: Julia McCartha - 972-665-1322 or pr@cinemark.com