Delivered record-high third quarter revenue
of $922 million that grew 5% year-over-year
Reported $189 million of net income and
record-high third quarter
Adjusted EBITDA of $221 million with a
robust 23.9% Adjusted EBITDA margin
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest and most
influential theatrical exhibition companies in the world, today
reported results for the three and nine months ended September 30,
2024.
“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 Sean Gamble,
Cinemark’s President and CEO. “Propelled by one break-out hit after
the next as a steadier cadence of compelling titles were released
into theaters, the third quarter’s results clearly underscore that
movie-going begets movie-going and further illustrate the
heightened level of impact a theatrical release provides all
categories of content. We commend our studio partners for their
outstanding work producing and releasing such captivating films
that will clearly leave a meaningful imprint on movie-goers for
many years to come.”
Mr. Gamble continued, “I’d also like to commend our sensational
Cinemark team for capitalizing on the quarter’s box office strength
and once again delivering exceptional results that surpassed
industry benchmarks and generated record-high third quarter revenue
and Adjusted EBITDA. These solid results are a direct reflection of
our highly skilled and resourceful global team, the continued
benefits we are deriving from our ongoing strategic initiatives,
and Cinemark's many distinctive advantages that we believe will
continue to position us for future growth and success.”
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. and Latin 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
the U.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 to Cinemark 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 in Latin America.
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months
ended September 30, 2024 increased 5.4% to $921.8 million compared
with $874.8 million for the three months ended September 30, 2023.
For the three months ended September 30, 2024, admissions revenue
increased 3.7% to $460.4 million and concession revenue increased
8.1% to $367.3 million. Worldwide average ticket price was $7.62
and concession revenue per patron was $6.08.
Net income attributable to Cinemark Holdings, Inc. for the three
months ended September 30, 2024 was $187.8 million compared with
net income of $90.2 million for the three months ended September
30, 2023. Diluted earnings per share for the three months ended
September 30, 2024 was $1.19 compared with diluted earnings per
share of $0.61 for the three months ended September 30, 2023. Net
income for the three months ended September 30, 2024 included a
$42.7 million tax benefit primarily related to the partial release
of valuation allowances previously recorded in the U.S.
Adjusted EBITDA for the three months ended September 30, 2024
was $220.5 million compared with $196.8 million for the three
months ended September 30, 2023. Reconciliations of non-GAAP
financial measures are provided in the financial schedules
accompanying this press release and at https://ir.cinemark.com.
Cinemark Holdings, Inc.’s total revenue for the nine months
ended September 30, 2024 decreased 7.9% to $2,235.2 million
compared with $2,427.8 million for the nine months ended September
30, 2023. For the nine months ended September 30, 2024, admissions
revenue decreased 9.5% to $1,116.0 million and concession revenue
decreased 6.8% to $884.4 million, driven by an 11.3% decrease in
attendance to 150.1 million patrons. Worldwide average ticket price
was $7.44 and concession revenue per patron was $5.89.
Net income attributable to Cinemark Holdings, Inc. for the nine
months ended September 30, 2024 was $258.4 million compared with
net income of $206.2 million for the nine months ended September
30, 2023. Diluted earnings per share for the nine months ended
September 30, 2024 was $1.73 compared with diluted earnings per
share of $1.43 for the nine months ended September 30, 2023. Net
income for the nine months ended September 30, 2024 included a
$71.3 million tax benefit primarily related to the release of
certain valuation allowances.
Adjusted EBITDA for the nine months ended September 30, 2024 was
$433.3 million compared with $514.5 million for the nine months
ended September 30, 2023. Reconciliations of non-GAAP financial
measures are provided in the financial schedules accompanying this
press release and at https://ir.cinemark.com.
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 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, as of September 30, 2024 operated 499
theaters with 5,680 screens in 42 states domestically and 13
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://ir.cinemark.com.
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 February 16, 2024. 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
Nine Months Ended
September 30,
September 30,
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 Cinemark
Holdings, Inc.
$
187.8
$
90.2
$
258.4
$
206.2
Net income per share attributable to
Cinemark Holdings, Inc.'s common stockholders
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
September 30, 2024
December 31, 2023
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 September
30,
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 September
30,
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)
U.S. Operating Segment
International Operating
Segment
Consolidated
Three Months Ended September
30,
Three Months Ended September
30,
Three Months Ended September
30,
Revenue and Attendance
2024
2023
2024
2023
Constant Currency (1)
2024
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
U.S. Operating Segment
International Operating
Segment
Consolidated
Nine Months Ended September
30,
Nine Months Ended September
30,
Nine Months Ended September
30,
Revenue and Attendance
2024
2023
2024
2023
Constant Currency (1)
2024
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
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 millions)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Adjusted EBITDA (1)
U.S.
$
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
U.S.
$
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
September 30,
September 30,
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 U.S. operating segment.
(4)
Non-cash expense included in general and
administrative expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031357661/en/
Investor Relations Contact:
Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com
Media Contact: Julia
McCartha – 972-665-1322 or pr@cinemark.com
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