Cinemark Holdings, Inc. - FORM 8-K - EX-99.1

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8-K - FORM 8-K - Cinemark Holdings, Inc.	d79990e8vk.htm

Exhibit 99.1

CINEMARK HOLDINGS, INC. REPORTS Q4 2010 ADJUSTED EBITDA OF $113.9 MILLION ON
REVENUES OF $524.9 MILLION

Plano, TX, February 24, 2011 — Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three months and year ended December 31, 2010.

Cinemark Holdings, Inc.’s revenues for the three months ended December 31, 2010 were $524.9 million compared to $536.4 million for the three months ended December 31, 2009. For the three months ended December 31, 2010, admissions revenues decreased 2.8% to $341.7 million and concession revenues decreased 4.5% to $153.8 million. The decreases were primarily related to a 7.0% decrease in attendance, partially offset by a 4.7% increase in average ticket price and a 2.7% increase in concession revenues per patron.

Adjusted EBITDA for the three months ended December 31, 2010 was $113.9 million compared to $121.9 million for the three months ended December 31, 2009. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2010 was $38.0 million compared to $39.9 million for the three months ended December 31, 2009.

“Cinemark continued its domestic out-performance streak during the fourth quarter of 2010 and posted another strong period, finishing the year with more than $2 billion in worldwide revenues for the first time in its history, ” stated Alan Stock, Cinemark’s Chief Executive Officer. “We achieved an approximate 9% increase in Adjusted EBITDA for the full year as a result of a very strong performance in Latin America and our operating discipline.”

Cinemark Holdings, Inc.’s revenues for the year ended December 31, 2010 increased 8.3% to $2,141.1 million from $1,976.5 million for the year ended December 31, 2009. For the year ended December 31, 2010, admissions revenues increased 8.7% to $1,405.4 million and concession revenues increased 6.5% to $642.3 million. The increases were primarily related to a 1.9% increase in attendance, a 6.8% increase in average ticket prices and a 4.3% increase in concession revenues per patron.

Adjusted EBITDA for the year ended December 31, 2010 increased 9.1% to $485.9 million from $445.5 million for the year ended December 31, 2009. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release.

Net income attributable to Cinemark Holdings, Inc. for the year ended December 31, 2010 increased to $146.1 million from $97.1 million for the year ended December 31, 2009.

On December 31, 2010, the Company’s aggregate screen count was 4,945. As of December 31, 2010, Cinemark had commitments to open 12 new theatres and 102 screens during 2011 and nine additional new theatres with 94 screens subsequent to 2011.

The Company’s board of directors declared a cash dividend for its 2010 fourth quarter of $0.21 per share of common stock. The dividend will be paid on March 16, 2011 to stockholders of record on March 4, 2011.

Conference Call/Webcast — Today at 10 AM ET

Telephone: via 800/374-1346 or 706/679-3149 (for international callers).

Live Webcast/Replay: available live at www.cinemark.com in the Investor Relations section and archived for a limited time immediately following the call.

Call Replay: until February 28, 2011 via 800/642-1687 or 706/645-9291, passcode: 45716646.

About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 430 theatres with 4,945 screens in 39 U.S. states, Brazil, Mexico and 11 other Latin American countries as of December 31, 2010. For more information go to www.cinemark.com.

Contacts:

Robert Copple — 972/665-1500

Robert Rinderman — Jaffoni & Collins — 212/835-8500 or CNK@jcir.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 and 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 March 10, 2010 and quarterly reports on Form 10-Q. 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)


	Three months ended						Years ended
	December 31,						December 31,
	2010			2009			2010			2009
Statement of Operations Data:
Revenues
Admissions	$	341,652		$	351,492		$	1,405,389		$	1,293,378
Concession		153,862			160,985			642,326			602,880
Other		29,395			23,890			93,429			80,242

Total revenues	$	524,909		$	536,367		$	2,141,144		$	1,976,500


Cost of operations
Film rentals and advertising		186,834			194,215			769,698			708,160
Concession supplies		24,019			24,689			97,484			91,918
Facility lease expense		64,425			62,301			255,717			238,779
Other theatre operating expenses		117,922			112,765			460,716			426,097
General and administrative expenses		30,456			27,517			109,045			96,497
Depreciation and amortization		39,518			36,670			143,508			149,515
Impairment of long-lived assets		6,481			3,743			12,538			11,858
(Gain) loss on sale of assets and other		(12,337	)		800			(431	)		3,202

Total cost of operations		457,318			462,700			1,848,275			1,726,026

Operating income		67,591			73,667			292,869			250,474
Interest expense ⁽¹⁾		(28,891	)		(25,499	)		(112,444	)		(102,505	)
Loss on early retirement of debt		(3	)		—			(3	)		(27,878	)
Distributions from NCM		7,817			5,054			23,358			20,822
Other income		3,716			1,017			3,721			4,688

Income before income taxes		50,230			54,239			207,501			145,601
Income taxes		11,920			13,696			57,838			44,845

Net income	$	38,310		$	40,543		$	149,663		$	100,756

Less: Net income attributable to noncontrolling interests		297			681			3,543			3,648


Net income attributable to Cinemark Holdings, Inc.	$	38,013		$	39,862		$	146,120		$	97,108

Earnings per share attributable to Cinemark Holdings, Inc.’s common stockholders:
Basic	$	0.33		$	0.36		$	1.30		$	0.89

Diluted	$	0.33		$	0.36		$	1.29		$	0.87


Weighted average diluted shares outstanding		112,783			110,758			112,151			110,255


Other Financial Data:
Adjusted EBITDA ⁽²⁾	$	113,946		$	121,905		$	485,920		$	445,524


(1)		Includes amortization of debt issue costs and excludes capitalized interest.

(2)		Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net income is provided in the financial schedules accompanying this press release.


	As of
	December 31,
	2010		2009
Balance Sheet Data (unaudited, in thousands):
Cash and cash equivalents	$	464,997	$	437,936
Theatre properties and equipment, net		1,215,446		1,219,588
Total assets		3,421,478		3,276,448
Long-term debt, including current portion		1,532,441		1,543,705
Equity		1,033,152		914,628

Segment Information
(unaudited, in thousands)


	Three months ended						Years ended
	December 31,						December 31,
	2010			2009			2010			2009
Revenues
U.S.	$	384,425		$	419,671		$	1,584,281		$	1,558,736
International		143,836			117,741			564,240			421,765
Eliminations		(3,352	)		(1,045	)		(7,377	)		(4,001	)

Total revenues	$	524,909		$	536,367		$	2,141,144		$	1,976,500

Adjusted EBITDA
U.S.	$	89,614		$	101,483		$	363,345		$	361,685
International		24,332			20,422			122,575			83,839

Total Adjusted EBITDA	$	113,946		$	121,905		$	485,920		$	445,524

Capital Expenditures
U.S.	$	22,903		$	22,844		$	70,474		$	81,695
International		44,943			16,350			85,628			43,102

Total capital expenditures	$	67,846		$	39,194		$	156,102		$	124,797

Additional Segment Information ⁽¹⁾
(unaudited)


	U.S. Operating Segment							International Operating Segment							Consolidated
	Three Months Ended							Three Months Ended							Three Months Ended
	December 31,							December 31,							December 31,
					%							%							%
	2010		2009		Change			2010		2009		Change			2010		2009		Change
Admissions revenues	$	253.7	$	277.3		(8.5	)%	$	88.0	$	74.2		18.6	%	$	341.7	$	351.5		(2.8	)%
Concession revenues	$	114.8	$	128.2		(10.5	)%	$	39.0	$	32.8		18.9	%	$	153.8	$	161.0		(4.5	)%
Other revenues⁽²⁾	$	12.6	$	13.1		(3.8	)%	$	16.8	$	10.8		55.6	%	$	29.4	$	23.9		23.0	%
Total revenues⁽²⁾	$	381.1	$	418.6		(9.0	)%	$	143.8	$	117.8		22.1	%	$	524.9	$	536.4		(2.1	)%
Attendance		37.8		42.9		(11.9	)%		19.0		18.2		4.4	%		56.8		61.1		(7.0	)%
Average ticket price	$	6.71	$	6.46		3.9	%	$	4.63	$	4.08		13.5	%	$	6.02	$	5.75		4.7	%
Concession revenues per patron	$	3.04	$	2.99		1.7	%	$	2.05	$	1.80		13.9	%	$	2.71	$	2.64		2.7	%
Average screen count		3,829		3,833					1,098		1,066					4,927		4,899
Revenues per average screen⁽²⁾	$	99,536	$	109,216		(8.9	)%	$	130,998	$	110,451		18.6	%	$	106,548	$	109,485		(2.7	)%


					International Operating
	U.S. Operating Segment				Segment				Consolidated
	Three Months Ended				Three Months Ended				Three Months Ended
	December 31,				December 31,				December 31,
	2010		2009		2010		2009		2010		2009
Film rentals and advertising	$	140.9	$	156.1	$	46.0	$	38.2	$	186.9	$	194.3
Concession supplies		14.1		16.5		9.9		8.2		24.0		24.7
Salaries and wages		42.6		44.4		13.0		9.9		55.6		54.3
Facility lease expense		45.3		45.9		19.1		16.4		64.4		62.3
Utilities and other		36.9		40.8		25.4		17.6		62.3		58.4


	U.S. Operating Segment							International Operating Segment							Consolidated
	Year Ended							Year Ended							Year Ended
	December 31,							December 31,							December 31,
					%							%							%
	2010		2009		Change			2010		2009		Change			2010		2009		Change
Admissions revenues	$	1,044.7	$	1,025.9		1.8	%	$	360.7	$	267.5		34.8	%	$	1,405.4	$	1,293.4		8.7	%
Concession revenues	$	487.9	$	485.2		0.6	%	$	154.4	$	117.7		31.2	%	$	642.3	$	602.9		6.5	%
Other revenues⁽²⁾	$	44.3	$	43.6		1.6	%	$	49.1	$	36.6		34.2	%	$	93.4	$	80.2		16.5	%
Total revenues⁽²⁾	$	1,576.9	$	1,554.7		1.4	%	$	564.2	$	421.8		33.8	%	$	2,141.1	$	1,976.5		8.3	%
Attendance		161.2		165.1		(2.4	)%		80.0		71.6		11.7	%		241.2		236.7		1.9	%
Average ticket price	$	6.48	$	6.21		4.3	%	$	4.51	$	3.74		20.6	%	$	5.83	$	5.46		6.8	%
Concession revenues per patron	$	3.03	$	2.94		3.1	%	$	1.93	$	1.64		17.7	%	$	2.66	$	2.55		4.3	%
Average screen count		3,830		3,810					1,079		1,050					4,909		4,860
Revenues per average screen⁽²⁾	$	411,708	$	408,017		0.9	%	$	523,078	$	401,828		30.2	%	$	436,181	$	406,681		7.3	%


					International Operating
	U.S. Operating Segment				Segment				Consolidated
	Year Ended				Year Ended				Year Ended
	December 31,				December 31,				December 31,
	2010		2009		2010		2009		2010		2009
Film rentals and advertising	$	586.6	$	572.3	$	183.1	$	135.9	$	769.7	$	708.2
Concession supplies		59.1		61.9		38.4		30.0		97.5		91.9
Salaries and wages		174.1		168.8		47.1		34.6		221.2		203.4
Facility lease expense		181.9		178.8		73.8		60.0		255.7		238.8
Utilities and other		161.5		163.5		78.0		59.2		239.5		222.7


⁽¹⁾		Revenues and attendance are in millions. Average ticket price, concession revenues per patron and revenues per average screen are in dollars. Theatre operating costs are in millions.

⁽²⁾		U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment.

Reconciliation of Adjusted EBITDA
(unaudited, in thousands)


	Three months ended						Years ended
	December 31,						December 31,
	2010			2009			2010			2009
Net income	$	38,310		$	40,543		$	149,663		$	100,756
Income taxes		11,920			13,696			57,838			44,845
Interest expense		28,891			25,499			112,444			102,505
Loss on early retirement of debt		3			—			3			27,878
Other income		(3,716	)		(1,017	)		(3,721	)		(4,688	)
Depreciation and amortization		39,518			36,670			143,508			149,515
Impairment of long-lived assets		6,481			3,743			12,538			11,858
(Gain) loss on sale of assets and other		(12,337	)		800			(431	)		3,202
Deferred lease expenses — theatres ⁽²⁾		823			771			3,221			3,960
Deferred lease expenses — DCIP ⁽³⁾		341			—			719			—
Amortization of long-term prepaid rents ⁽²⁾		539			315			1,786			1,389
Share based awards compensation expense ⁽⁴⁾		3,173			885			8,352			4,304

Adjusted EBITDA ⁽¹⁾	$	113,946		$	121,905		$	485,920		$	445,524


⁽¹⁾		Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, loss on early retirement of debt, other income, depreciation and amortization, impairment of long-lived assets, (gain) loss on sale of assets and other, changes in deferred lease expense, amortization of long-term prepaid rents and share based awards compensation expense. 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.

⁽²⁾		Non-cash expense included in facility lease expense.

⁽³⁾		Non-cash expense included in other theatre operating expenses.

⁽⁴⁾		Non-cash expense included in general and administrative expenses.

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