Delivered Total Revenue of $3.1 billion for
FY 2023, an increase of 25% year-over-year
Reported $191 million of FY 2023 Net Income
and $594 million of Adjusted EBITDA with a 19.4% Adjusted
EBITDA margin
Generated $444 million in FY 2023 Cash from
Operating Activities and $295 million of Free Cash
Flow
Cinemark Holdings, Inc. (NYSE: CNK), one of the largest and most
influential theatrical exhibition companies in the world, today
reported results for the three months and full year ended December
31, 2023.
“2023 represented another year of meaningful progress for our
industry and our company,” stated Sean Gamble, Cinemark’s President
and CEO. “Key indicators pertaining to the fundamental drivers of
our industry – specifically consumer behavior and product flow –
were further reinforced, and our team’s outstanding operational
execution and financial discipline delivered outsized results
across all of our key metrics, including Revenue, Adjusted EBITDA,
and Free Cash Flow.”
“We believe our strong 2023 results provide a clear sign that
our many ongoing strategic growth and productivity initiatives are
driving significant impact. As we look ahead, we remain highly
optimistic about the future of our company and our ability to fully
capitalize on our industry’s continued recovery given our solid
foundation, advantage market position, and the many opportunities
that lie before us.”
Earnings Highlights
- Entertained more than 40 million moviegoers during 4Q 2023 and
210 million for FY 2023.
- Delivered domestic box office results that surpassed North
American industry recovery relative to FY 2019 by approximately 700
basis points; international admissions outpaced the broader Latin
American industry recovery by approximately 600 basis points.
- Sustained market share growth versus FY 2019 of more than 100
basis points in the U.S. and Latin America; remained the only major
U.S. exhibitor to have achieved a meaningful increase in market
share since the pandemic.
- Delivered $3.1 billion of total revenue for FY 2023, an
increase of 25% year-over-year and within 7% of FY 2019.
- Achieved all-time high food & beverage per cap of $5.68 for
FY 2023 with concession revenue that exceeded FY 2019 by 3% on 25%
less attendance.
- Reported $191 million of net income for FY 2023 with diluted
earnings per share of $1.34.
- Grew Adjusted EBITDA 77% to $594 million for FY 2023 and
yielded a strong 19.4% Adjusted EBITDA margin by maximizing box
office opportunities and successfully executing strategic
initiatives.
- Further strengthened the balance sheet with $295 million of
Free Cash Flow generated for the year and increased the cash
balance to $849 million at year-end; reduced pandemic-related debt
by over $100 million during the year.
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months
ended December 31, 2023 increased 6.5% to $638.9 million compared
with $599.7 million for the three months ended December 31, 2022.
For the three months ended December 31, 2023, admissions revenue
increased 5.8% to $322.4 million and concession revenue increased
7.7% to $243.0 million, driven by a 3.6% increase in attendance to
40.6 million patrons. Worldwide average ticket price was $7.94 and
concession revenue per patron was $5.99.
Net loss attributable to Cinemark Holdings, Inc. for the three
months ended December 31, 2023 was $(18.0) million compared with
$(99.3) million for the three months ended December 31, 2022.
Diluted loss per share for the three months ended December 31, 2023
was $(0.15) compared with a diluted loss per share of $(0.82) for
the three months ended December 31, 2022.
Adjusted EBITDA for the three months ended December 31, 2023 was
$79.6 million compared with $73.5 million for the three months
ended December 31, 2022. 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 twelve months
ended December 31, 2023 increased 24.9% to $3,066.7 million
compared with $2,454.7 million for the twelve months ended December
31, 2022. For the twelve months ended December 31, 2023, admissions
revenue increased 24.8% to $1,555.6 million and concession revenue
increased 27.0% to $1,192.0 million, driven by a 21.5% increase in
attendance to 209.8 million patrons. Worldwide average ticket price
was $7.41 and concession revenue per patron was $5.68.
Net income attributable to Cinemark Holdings, Inc. for the
twelve months ended December 31, 2023 was $188.2 million compared
with a loss of $(271.2) million for the twelve months ended
December 31, 2022. Diluted earnings per share for the twelve months
ended December 31, 2023 was $1.34 compared with a diluted loss per
share of $(2.26) for the twelve months ended December 31, 2022.
Adjusted EBITDA for the twelve months ended December 31, 2023
was $594.1 million compared with $336.5 million for the twelve
months ended December 31, 2022. Reconciliations of non-GAAP
financial measures are provided in the financial schedules
accompanying this press release and at https://ir.cinemark.com.
As of December 31, 2023, the Company’s aggregate screen count
was 5,719, and the Company had commitments to open 5 new theatres
and 43 screens over the next two years.
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 December 31, 2023 operated 501
theatres with 5,719 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 revenues, 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 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
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Statement of income (loss)
data:
Revenue
Admissions
$
322.4
$
304.6
$
1,555.6
$
1,246.9
Concession
243.0
225.7
1,192.0
938.3
Other
73.5
69.4
319.1
269.5
Total revenue
638.9
599.7
3,066.7
2,454.7
Cost of operations
Film rentals and advertising
172.8
173.3
865.7
704.4
Concession supplies
47.3
40.5
221.3
169.3
Salaries and wages
96.9
95.7
403.1
372.7
Facility lease expense
78.8
77.1
329.7
308.3
Utilities and other
113.3
103.4
466.8
407.2
General and administrative expenses
54.1
43.6
198.8
177.6
Depreciation and amortization
49.9
57.2
209.5
238.2
Impairment of long-lived assets
4.5
66.6
16.6
174.1
Restructuring costs
—
(0.3
)
—
(0.5
)
Loss (gain) on disposal of assets and
other
1.1
(0.4
)
(7.7
)
(6.8
)
Total cost of operations
618.7
656.7
2,703.8
2,544.5
Operating income (loss)
20.2
(57.0
)
362.9
(89.8
)
Other income (expense)
Interest expense
(38.4
)
(40.7
)
(150.4
)
(155.3
)
Interest income
14.8
9.3
55.0
20.4
Loss on extinguishment of debt
—
—
(10.7
)
—
Foreign currency exchange and other
related loss
(9.4
)
(6.2
)
(28.8
)
(11.5
)
Distributions from DCIP
—
—
—
3.7
Interest expense - NCM
(5.6
)
(5.7
)
(22.6
)
(23.2
)
Equity in income (loss) of affiliates
2.4
(1.8
)
3.6
(9.3
)
Unrealized (loss) gain on investment in
NCMI
(1.5
)
—
12.4
—
(Loss) income before income taxes
(17.5
)
(102.1
)
221.4
(265.0
)
Income tax expense (benefit)
0.1
(3.3
)
29.9
3.0
Net (loss) income
$
(17.6
)
$
(98.8
)
$
191.5
$
(268.0
)
Less: Net income attributable to
noncontrolling interests
0.4
0.5
3.3
3.2
Net (loss) income attributable to Cinemark
Holdings, Inc.
$
(18.0
)
$
(99.3
)
$
188.2
$
(271.2
)
(Loss) earnings per share attributable to
Cinemark Holdings, Inc.'s common stockholders
Basic
$
(0.15
)
$
(0.82
)
$
1.55
$
(2.26
)
Diluted
$
(0.15
)
$
(0.82
)
$
1.34
$
(2.26
)
Weighted average shares outstanding
Basic
119.2
118.5
119.1
118.2
Diluted
119.2
118.5
152.0
118.2
Other Operating Data
(unaudited, in millions)
As of December 31,
2023
2022
Balance sheet data:
Cash and cash equivalents
$
849.1
$
674.5
Theatre properties and equipment, net
$
1,161.7
$
1,232.1
Total assets
$
4,836.8
$
4,817.7
Long-term debt, net of unamortized debt
issuance costs and original issue discount
$
2,399.1
$
2,484.7
Total equity
$
318.8
$
119.5
Twelve Months Ended December
31,
2023
2022
Cash flows provided by (used
for):
Operating activities (1)
$
444.3
$
136.0
Investing activities
$
(131.8
)
$
(96.3
)
Financing activities
$
(125.4
)
$
(52.2
)
(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:
Twelve Months Ended December
31,
2023
2022
Reconciliation of free cash
flow:
Cash flows provided by operating
activities
$
444.3
$
136.0
Less: Capital expenditures
(149.5
)
(110.7
)
Free cash flow
$
294.8
$
25.3
Segment Information
(unaudited, in millions, except
per patron data)
U.S. Operating Segment
International Operating
Segment
Consolidated
Three Months Ended December
31,
Three Months Ended December
31,
Constant Currency ¹
Three Months Ended December
31,
2023
2022
2023
2022
2023
2023
2022
Revenue and Attendance
Admissions revenue
$
267.5
$
251.1
$
54.9
$
53.5
$
72.1
$
322.4
$
304.6
Concession revenue
200.9
186.5
42.1
39.2
54.9
243.0
225.7
Other revenue
50.4
48.1
23.1
21.3
29.8
73.5
69.4
Total revenue
$
518.8
$
485.7
$
120.1
$
114.0
$
156.8
$
638.9
$
599.7
Attendance
26.2
25.1
14.4
14.1
40.6
39.2
Average ticket price
$
10.21
$
10.00
$
3.81
$
3.79
$
5.01
$
7.94
$
7.77
Concession revenue per patron
$
7.67
$
7.43
$
2.92
$
2.78
$
3.81
$
5.99
$
5.76
Cost of Operations
Film rentals and advertising
$
145.0
$
145.4
$
27.8
$
27.9
$
37.2
$
172.8
$
173.3
Concession supplies
38.1
31.6
9.2
8.9
11.8
47.3
40.5
Salaries and wages
80.8
81.3
16.1
14.4
21.4
96.9
95.7
Facility lease expense
61.7
62.5
17.1
14.6
19.7
78.8
77.1
Utilities and other
85.7
78.9
27.6
24.5
34.6
113.3
103.4
U.S. Operating Segment
International Operating
Segment
Consolidated
Twelve Months Ended December
31,
Twelve Months Ended December
31,
Constant Currency ¹
Twelve Months Ended December
31,
2023
2022
2023
2022
2023
2023
2022
Revenue and Attendance
Admissions revenue
$
1,236.0
$
1,010.2
$
319.6
$
236.7
$
393.1
$
1,555.6
$
1,246.9
Concession revenue
952.0
763.0
240.0
175.3
296.5
1,192.0
938.3
Other revenue
227.3
197.0
91.8
72.5
113.9
319.1
269.5
Total revenue
$
2,415.3
$
1,970.2
$
651.4
$
484.5
$
803.5
$
3,066.7
$
2,454.7
Attendance
127.7
109.3
82.1
63.4
209.8
172.7
Average ticket price
$
9.68
$
9.24
$
3.89
$
3.73
$
4.79
$
7.41
$
7.22
Concession revenue per patron
$
7.45
$
6.98
$
2.92
$
2.76
$
3.61
$
5.68
$
5.43
Cost of Operations
Film rentals and advertising
$
703.6
$
584.4
$
162.1
$
120.0
$
202.4
$
865.7
$
704.4
Concession supplies
169.1
130.5
52.2
38.8
64.4
221.3
169.3
Salaries and wages
333.8
314.7
69.3
58.0
88.3
403.1
372.7
Facility lease expense
246.6
250.1
83.1
58.2
95.7
329.7
308.3
Utilities and other
355.4
313.7
111.4
93.5
136.7
466.8
407.2
(1)
Constant currency amounts, which are
non-GAAP measurements, were calculated using the average exchange
rate for the corresponding month for 2022. 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 December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Adjusted EBITDA (1)
U.S.
$
68.5
$
59.5
$
463.9
$
255.7
International
11.1
14.0
130.2
80.8
Total Adjusted EBITDA
$
79.6
$
73.5
$
594.1
$
336.5
Capital expenditures
U.S.
$
40.8
$
36.5
$
111.5
$
87.2
International
19.0
8.9
38.0
23.5
Total capital expenditures
$
59.8
$
45.4
$
149.5
$
110.7
(1)
Adjusted EBITDA represents net income
(loss) 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
(loss) to Adjusted EBITDA is provided below.
Reconciliation of Adjusted
EBITDA
(unaudited, in millions)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net (loss) income
$
(17.6
)
$
(98.8
)
$
191.5
$
(268.0
)
Add (deduct):
Income tax expense (benefit)
0.1
(3.3
)
29.9
3.0
Interest expense (1)
38.4
40.7
150.4
155.3
Other (income) expense, net (2)
(0.7
)
4.4
(19.6
)
23.6
Cash distributions from other equity
investees (3)
2.5
5.4
5.7
6.9
Depreciation and amortization
49.9
57.2
209.5
238.2
Impairment of long-lived assets
4.5
66.6
16.6
174.1
Restructuring costs
—
(0.3
)
—
(0.5
)
Loss (gain) on disposal of assets and
other
1.1
(0.4
)
(7.7
)
(6.8
)
Loss on debt extinguishment and
refinancing
—
—
10.7
—
Non-cash rent
(4.7
)
(3.3
)
(17.9
)
(10.8
)
Share-based awards compensation expense
(4)
6.1
5.3
25.0
21.5
Adjusted EBITDA
$
79.6
$
73.5
$
594.1
$
336.5
(1)
Includes amortization of debt
issuance costs, amortization of original issue discount and
amortization of accumulated gains (losses) for amended swap
agreements.
(2)
Includes interest income, foreign
currency exchange and other related loss, interest expense - NCM,
equity in income (loss) of affiliates and unrealized gain on
investment in NCMI.
(3)
Includes 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/20240216560843/en/
Investor Relations Contact:
Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com
Media Contact: Julia
McCartha – 972-665-1322 or pr@cinemark.com
Grafico Azioni Cinemark (NYSE:CNK)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Cinemark (NYSE:CNK)
Storico
Da Mag 2023 a Mag 2024