Cinemark Holdings Inc.’s stock CNK, +4.88% fell 1.8% early Friday, after the cinema operator’s fourth-quarter loss was wider than expected. Plano, Texas-based Cinemark posted a net loss of $18 million, or 15 cents a share, for the quarter, narrower than the loss of $99.3 million, or 82 cents a share, posted in the year-earlier period. Revenue rose 6.5% to $638.9 million. The FactSet consensus was for a loss of 7 cents and revenue of $620.0 million. Cinemark ended the quarter with 5,719 screens across the U ...

Theatre Operations - As of December 31, 2023, the company operated 501 theatres and 5,719 screens across the U.S. and Latin America, with 309 theatres and 4,324 screens in the U.S. and 192 theatres and 1,395 screens in Latin America[22]. - The company operates 293 XD auditoriums, the largest exhibitor-branded premium large format footprint in the world, along with 15 IMAX and six ScreenX auditoriums[38]. - The company has a significant presence in major cities in Latin America, being the largest exhibitor in Brazil and Argentina, and has theatres in 15 of the 20 largest metropolitan areas in the region[39]. - As of December 31, 2023, the company operated 192 theatres with 1,395 screens across 13 countries in Latin America, with Brazil contributing approximately 7.6% of consolidated 2023 revenue[72]. - As of December 31, 2023, the company operates 461 theatres, with 269 in the U.S. and 192 internationally[112]. Financial Performance - Total revenue for 2023 reached $3,066.7 million, a 24.9% increase from $2,454.7 million in 2022[150]. - Admissions revenue increased by 24.8% to $1,555.6 million in 2023, compared to $1,246.9 million in 2022[153]. - Concession revenue rose by 27.0% to $1,192.0 million in 2023, up from $938.3 million in 2022[153]. - The company reported an operating income of $362.9 million in 2023, a significant recovery from an operating loss of $89.8 million in 2022[150]. - The company’s revenues are historically seasonal, with higher earnings typically during summer months (May to July) and the holiday season (November to year-end)[55]. Market Trends - North American box office revenues for 2023 were approximately $9.1 billion, representing an increase of over 21% compared to 2022, primarily due to a higher volume of new film releases[24]. - Latin American box office revenues were approximately $2.4 billion for 2023, up more than 33% compared to 2022[28]. - The average video and digital release window for major films has decreased to around 45 days, which may impact theatre attendance if guests opt for in-home releases[71]. - The company’s results of operations are influenced by the quantity and quality of films shown, with fluctuations based on film release schedules[67]. - The Writers Guild of America strike in May 2023 and the SAG-AFTRA strike in July 2023 resulted in a decrease in film content released in 2023, impacting future film availability[66]. Competition and Market Position - The company ranked either first or second in box office revenues in 21 of its top 25 U.S. markets for the year ended December 31, 2023[38]. - The company competes with major U.S. exhibitors like Regal and AMC, and international competitors vary by country, including Cinépolis and Cine Colombia[53]. - The company faces intense competition from various entertainment forms, including streaming services and alternative film distribution channels, which could adversely affect attendance and revenue growth[70]. Customer Experience and Innovations - The company has transitioned approximately 14% of its auditoriums to new laser projectors and features Luxury Lounger heated recliner seats in 68% of its domestic circuit[32]. - The company offers advanced mobile concession ordering at virtually all U.S. theatres and in all Latin American theatres, enhancing customer convenience[32]. - The company’s domestic subscription membership program, Movie Club, offers monthly ticket credits and discounts, enhancing customer loyalty[52]. - The company has invested in technological innovations such as laser projectors and motion seats to remain competitive in the industry[100]. Cost Management and Economic Factors - Food and beverage costs have been particularly affected by inflationary pressures, especially for core commodities, prompting the company to seek alternative products and implement strategic pricing actions[48]. - Inflationary pressures and supply chain interruptions have impacted concession supplies expenses, which fluctuate with concession revenue and product mix[131]. - Labor shortages may hinder the company's ability to hire and retain employees, potentially leading to extended wait times and reduced operating hours[73]. - Legislative initiatives related to climate change may lead to increased operating costs for the company[101]. - The company is subject to risks related to currency fluctuations and governmental regulations in foreign markets, which could adversely affect international operations[72]. Debt and Financial Obligations - The company has significant long-term debt obligations totaling $2,432.1 million, including $1,972.1 million of CUSA debt, and $87.8 million in finance lease obligations[75]. - The company’s debt currently has a non-investment grade rating, which could increase future borrowing costs and limit access to capital[76]. - Total contractual obligations amount to $4,429.0 million, with long-term debt at $2,432.1 million[176]. - The company issued $460.0 million of 4.50% convertible senior notes, maturing on August 15, 2025[178]. - CUSA's obligations under the Credit Agreement are guaranteed by Holdings and certain subsidiaries, secured by interests in substantially all personal property[184]. Shareholder and Investment Information - Holdings owns 4.4 million shares of National Cinemedia, Inc. (NCMI), representing approximately 4.5% ownership, with revenues from NCMI of $44.1 million, $52.2 million, and $53.3 million for the years ended December 31, 2021, 2022, and 2023 respectively[90]. - Holdings suspended its dividend in March 2020 due to COVID-19 impacts, and it is uncertain when dividends will resume[88]. - Future sales of substantial amounts of Holdings' common stock could result in a decrease in stock price and dilute existing stockholders[89]. - The conversion of the 4.50% Convertible Senior Notes may dilute existing stockholders' ownership interests and could depress the price of Holdings' common stock[85]. Risk Management and Internal Controls - The company maintains insurance for cyber risks, but future events could result in costs exceeding available coverage[98]. - The Chief Technology Officer oversees the information security program, which includes various security measures and controls[110]. - The company has adopted a risk-based approach to cybersecurity, utilizing third-party security firms for assessments and technology[106]. - The company maintained effective internal control over financial reporting as of December 31, 2023, according to an independent audit[216].

Analysts on Wall Street project that Cinemark Holdings (CNK) will announce quarterly loss of $0.17 per share in its forthcoming report, representing an increase of 79.3% year over year. Revenues are projected to reach $609.03 million, increasing 1.6% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 330.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during thi ...

PLANO, Texas--(BUSINESS WIRE)--Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today announced participation at the following institutional investor conferences: Tuesday, February 27: J.P. Morgan High Yield & Leveraged Finance Conference in Miami, FL Melissa Thomas, CFO, and Chanda Brashears, SVP Investor Relations 1:1 investor meetings Fireside chat at 10:15 am ET https://jpmorgan.metameetings.net/events/highyield24/sessions/50389-cinemark-holdings/w ...

The market expects Cinemark Holdings (CNK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 16, 2024, might help the stock move higher if these key nu ...

Movie-theater stocks may be facing a tough first-quarter domestic box office, but they could be set for upside later this year, according to Macquarie Equity Research. “Theatrical stocks underperformed in ’23 after a difficult ’22 and remain ~60% off of pre-pandemic levels, while questions remain for ’24,” Macquarie analyst Chad Beynon wrote in a note released Monday. “Unfortunately, the outlook for ’24 has questions again, following Hollywood strikes and slower post-pandemic core demand.”He added: “We’re t ...

PLANO, Texas--(BUSINESS WIRE)--Cinemark Holdings, Inc., one of the largest and most influential theatrical exhibition companies in the world, is bringing the most prestigious Hollywood films of 2023 to auditoriums across the nation with the return of its annual Oscar® Movie Week festival. In theaters from Monday, March 4 through Sunday, March 10, Oscar® Movie Week makes it easy for moviegoers to catch up on the celebrated Best Picture and Live Action and Animated Short Film nominees with a convenient, all-i ...

Start Time: 08:30 January 1, 0000 9:41 AM ET Cinemark Holdings, Inc. (NYSE:CNK) Q3 2023 Earnings Conference Call November 03, 2023, 08:30 AM ET Company Participants Sean Gamble - President and CEO Melissa Thomas - CFO Chanda Brashears - SVP of IR Conference Call Participants David Karnovsky - JPMorgan Eric Handler - ROTH MKM Eric Wold - B. Riley Securities Michael Nathanson - MoffettNathanson Ben Swinburne - Morgan Stanley Mike Hickey - Benchmark Jim Goss - Barrington Research Omar Mejias - Wells Fargo Step ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Cinemark Holdings, Inc. and Cinemark USA, Inc., covering balance sheets, income, and cash flows, along with accounting policy notes [Cinemark Holdings, Inc. Financial Statements](index=5&type=section&id=Cinemark%20Holdings%2C%20Inc.%20Financial%20Statements) Cinemark Holdings, Inc. reported a significant turnaround for the nine months ended September 30, 2023, with net income of **$209.1 million** and operating cash flow increasing to **$335.8 million** Cinemark Holdings, Inc. Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $1,011.0 | $863.6 | | **Total Assets** | $4,811.2 | $4,817.7 | | **Total Current Liabilities** | $651.9 | $708.5 | | **Long-term debt, less current portion** | $2,390.6 | $2,474.0 | | **Total Liabilities** | $4,476.1 | $4,698.2 | | **Total Equity** | $335.1 | $119.5 | Cinemark Holdings, Inc. Condensed Consolidated Statement of Income (Loss) Highlights (in millions) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $874.8 | $650.4 | $2,427.8 | $1,855.0 | | **Operating Income (Loss)** | $145.8 | $18.8 | $342.7 | $(32.8) | | **Net Income (Loss)** | $91.2 | $(23.9) | $209.1 | $(169.2) | | **Diluted EPS** | $0.61 | $(0.20) | $1.43 | $(1.43) | Cinemark Holdings, Inc. Condensed Consolidated Statement of Cash Flows Highlights (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $335.8 | $27.7 | | **Net cash used for investing activities** | $(74.9) | $(53.3) | | **Net cash used for financing activities** | $(118.0) | $(32.6) | | **Increase (decrease) in cash** | $131.4 | $(75.4) | | **Cash and cash equivalents, end of period** | $805.9 | $631.9 | [Cinemark USA, Inc. Financial Statements](index=12&type=section&id=Cinemark%20USA%2C%20Inc.%20Financial%20Statements) Cinemark USA, Inc. (CUSA) achieved strong performance for the nine months ended September 30, 2023, reporting **$226.6 million** net income and **$347.9 million** in operating cash flow Cinemark USA, Inc. Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $834.7 | $669.2 | | **Total Assets** | $4,634.9 | $4,623.3 | | **Long-term debt, less current portion** | $1,937.0 | $2,023.0 | | **Total Liabilities** | $4,018.3 | $4,241.4 | | **Total Equity** | $616.6 | $381.9 | Cinemark USA, Inc. Condensed Consolidated Statement of Income (Loss) Highlights (in millions) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $874.8 | $650.4 | $2,427.8 | $1,855.0 | | **Operating Income (Loss)** | $146.5 | $19.5 | $345.2 | $(30.6) | | **Net Income (Loss)** | $98.8 | $(14.6) | $226.6 | $(140.9) | Cinemark USA, Inc. Condensed Consolidated Statement of Cash Flows Highlights (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $347.9 | $47.0 | | **Net cash used for investing activities** | $(74.9) | $(53.3) | | **Net cash used for financing activities** | $(118.0) | $(32.6) | | **Increase (decrease) in cash** | $143.5 | $(56.1) | | **Cash and cash equivalents, end of period** | $570.8 | $386.6 | [Notes to Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, covering presentation basis, lease accounting, revenue recognition, debt, investments, share-based compensation, and impairment charges - The company's ongoing recovery from the COVID-19 pandemic is contingent on factors like the volume of new film content, box office performance, and the duration of exclusive theatrical release windows[70](index=70&type=chunk) - In September 2023, the company completed the sale of its Ecuador subsidiary, recognizing a gain of **$6.9 million**[95](index=95&type=chunk)[102](index=102&type=chunk) - On May 26, 2023, CUSA amended its senior secured credit facility, resulting in a **$650.0 million** term loan and a **$125.0 million** revolving credit facility, with net proceeds used to repay the previous term loan[13](index=13&type=chunk) - On May 1, 2023, CUSA redeemed **$100.0 million** in principal of its 8.75% Secured Notes, resulting in a loss on extinguishment of debt of **$3.4 million**[11](index=11&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial recovery, driven by strong film performance, detailing revenue, operating costs, segment performance, and liquidity, including recent debt activities [Results of Operations](index=45&type=section&id=Results%20of%20Operations) The company's results dramatically improved in 2023, with Q3 total revenue growing **34.5%** to **$874.8 million** and nine-month revenue increasing **30.9%** to **$2.43 billion**, driven by higher attendance and prices Q3 2023 vs Q3 2022 Performance Highlights (in millions) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $874.8 | $650.4 | +34.5% | | **Operating Income** | $145.8 | $18.8 | +675.5% | | **Attendance** | 61.9 | 48.4 | +27.9% | Nine Months 2023 vs 2022 Performance Highlights (in millions) | Metric | Nine Months 2023 | Nine Months 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $2,427.8 | $1,855.0 | +30.9% | | **Operating Income (Loss)** | $342.7 | $(32.8) | N/A | | **Attendance** | 169.2 | 133.5 | +26.7% | - The U.S. segment saw a **27.1%** increase in attendance and a **7.0%** increase in average ticket price in Q3 2023, while the International segment's attendance grew by **29.1%**[185](index=185&type=chunk) - Impairment charges for the nine months of 2023 were significantly lower at **$12.1 million** compared to **$107.5 million** in the same period of 2022, which included a large impairment on the NCM investment[191](index=191&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened, with operating cash flow for Holdings increasing to **$335.8 million** for the first nine months of 2023, supported by debt refinancing and **$89.7 million** in capital expenditures - Cash provided by operating activities for Holdings was **$335.8 million** for the nine months ended September 30, 2023, a substantial increase from **$27.7 million** in the prior-year period[193](index=193&type=chunk) Capital Expenditures (in millions) | Category | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **New theatres** | $5.4 | $24.8 | | **Existing theatres** | $84.3 | $40.5 | | **Total** | **$89.7** | **$65.3** | - In May 2023, CUSA amended its senior secured credit facility, establishing a **$650.0 million** term loan due 2030 and a **$125.0 million** revolving credit facility due 2028[244](index=244&type=chunk) - CUSA redeemed **$100.0 million** of its 8.75% Secured Notes on May 1, 2023, leaving **$150.0 million** outstanding[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate and foreign currency fluctuations, with a **100 basis point** interest rate increase potentially raising annual interest expense by **$2.0 million** on **$204.0 million** of unhedged variable debt - The company utilizes interest rate swap agreements to hedge a portion of the interest rate risk on its variable-rate term loan debt[253](index=253&type=chunk) - A **100 basis point** increase in interest rates would increase annual interest expense by **$2.0 million** on the **$204.0 million** of unhedged variable rate debt[253](index=253&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that as of September 30, 2023, disclosure controls and procedures were effective[126](index=126&type=chunk) - No material changes to internal control over financial reporting were identified during the third quarter of 2023[274](index=274&type=chunk) [PART II. OTHER INFORMATION](index=61&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, notably appealing a confirmation order in the National CineMedia LLC Bankruptcy regarding its Exhibitor Services Agreement, with an uncertain outcome - The company has appealed a confirmation order from the NCM bankruptcy proceedings concerning its Exhibitor Services Agreement and a 'most favored nations' clause, with an uncertain outcome[128](index=128&type=chunk)[142](index=142&type=chunk) - No other material changes in legal proceedings were reported since the last Annual Report on Form 10-K[257](index=257&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes in the company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes in risk factors from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022[275](index=275&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, Holdings repurchased **6,210** shares of common stock to satisfy employee tax-withholding obligations upon vesting of restricted and performance stock units Issuer Purchases of Equity Securities (in thousands, except per share data) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **July 2023** | 3.23 | $15.74 | | **August 2023** | 2.98 | $17.53 | | **September 2023** | 0 | N/A | | **Total Q3 2023** | **6.21** | **N/A** | [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) This section provides supplemental unaudited condensed consolidating financial statements for Cinemark USA, Inc., separating its financial information into 'Restricted Group' and 'Unrestricted Group' subsidiaries - Supplemental consolidating financial schedules are provided for CUSA as required by the indentures for its senior notes, separating subsidiaries into Restricted and Unrestricted groups[278](index=278&type=chunk) [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley and financial statements in iXBRL format - Exhibits include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906[283](index=283&type=chunk) - The financial statements and notes are provided in iXBRL format as Exhibit 101[267](index=267&type=chunk)

Cinemark Holdings, Inc. (NYSE:CNK) Q2 2023 Earnings Conference Call August 4, 2023 8:30 AM ET Company Participants Chanda Brashears - Senior Vice President of Investor Relations Sean Gamble - President & Chief Executive Officer Melissa Thomas - Chief Financial Officer Conference Call Participants Ben Swinburne - Morgan Stanley Robert Fishman - Moffat Nathanson Eric Handler - ROTH MKM Omar Mejias - Wells Fargo David Karnovsky - JPMorgan Jim Goss - Barrington Research Aaron Lee - Macquarie Operator Greetings. ...