Core Viewpoint - The company demonstrates growth through effective operational management, despite having lower revenue compared to competitors, and possesses a business model that ensures financial sustainability [1]. Investment Approach - The analysis follows a triangulation approach involving valuation by multiples, discounted cash flow (DCF), and dividend yield, focusing on Consumer Discretionary and Consumer Staples sectors [1]. - Emphasis is placed on companies with smaller capitalization and low institutional coverage, which present greater potential for asymmetries and alpha generation [1]. - The investment philosophy integrates income and value investing strategies, requiring a sufficient margin of safety in multiples and projected cash flow [1]. Dividend Yield - Dividend yield is considered a crucial element for generating returns and serves as a risk mitigation criterion, particularly for low coverage stocks [1]. Analytical Methodology - The analysis is grounded in a bottom-up approach, concentrating on operational fundamentals, execution history, and sustainable growth drivers [1]. - In-depth, rational, data-driven analyses are produced to support informed and independent investment decisions [1].

Core Viewpoint - President Trump's threats of tariffs on foreign-produced movies could significantly impact the American movie industry, which he claims is "dying" due to incentives offered by other countries to filmmakers [2][4]. Industry Impact - Trump's comments have created uncertainty in the movie industry, particularly for major companies like Walt Disney Co, which generates billions at the box office annually [1][4]. - The movie sector's performance may contradict Trump's claims, as the box office is projected to increase by 15.8% year-over-year in 2025, potentially benefiting companies like AMC Entertainment and Cinemark Holdings [3]. - Tariffs could slow down the movie theater sector and affect stock prices of major studios such as Disney, Paramount Global, and Warner Bros. Discovery, as well as streaming services like Netflix, which produces many series outside the U.S. [4][5]. Tariff Details - Trump has authorized the Department of Commerce to begin the process of instituting a 100% tariff on movies produced in foreign lands, labeling it a "national security threat" [2][6]. - The vagueness of Trump's comments raises questions about how tariffs would apply to films with foreign filming locations but American production credits [7][9]. Examples and Concerns - The upcoming Paramount film "Mission: Impossible – The Final Reckoning," filmed primarily in the U.K., may serve as an early example of how tariffs could affect the industry [7][8]. - Industry veterans express concerns that such tariffs could harm the sector significantly, with some suggesting that it could lead to the collapse of independent distributors [10][11]. State Incentives - In contrast to Trump's tariff threats, California Governor Gavin Newsom is advocating for $750 million in annual incentives for content filmed in the state, aiming to support the local industry [10].

Core Insights - The CEO of Cinemark, Sean Gamble, expressed optimism about a box office recovery that began in April, highlighting Amazon MGM's commitment to theatrical releases [1][3] - The ongoing debate regarding theatrical windows was addressed, with Gamble supporting a 45-day window for most films [2][5] - Despite a widening loss of $39 million in Q1, revenue increased by 7% to $541 million, indicating a potential recovery in the industry [2][3] Industry Performance - The industry has historically performed well during economic uncertainty, with the North American box office growing in six of the last eight recessions [7] - The current box office recovery is attributed to strong content and a positive outlook from studios, including plans from Amazon MGM to release 14 to 16 films by 2027 [3][4] - The debate on theatrical windows is ongoing, with a consensus that a 45-day window may be beneficial for most films to build cultural relevance [5][6] Market Dynamics - M&A activity in the exhibition sector may increase as surviving theaters look for buyers, with the box office showing signs of recovery [3] - The industry remains resilient in the face of economic challenges, as consumers continue to seek affordable out-of-home entertainment options [8] - The impact of external factors, such as trade tariffs and economic growth, is acknowledged, but the industry is optimistic about navigating these challenges [6]

Core Insights - Cinemark Holdings reported $540.7 million in revenue for Q1 2025, a year-over-year decline of 6.7% and an EPS of -$0.32 compared to $0.19 a year ago, with revenue exceeding the Zacks Consensus Estimate of $519.59 million by 4.06% [1] Financial Performance - The average ticket price in the U.S. Operating Segment was $10.08, exceeding the estimated $9.87, while the International Operating Segment's average ticket price was $3.53, slightly below the estimated $3.62 [4] - Concession revenues per patron in the U.S. Operating Segment were $7.98, above the estimated $7.78, and in the International Operating Segment, it was $2.88, slightly above the estimated $2.87 [4] - U.S. Operating Segment admissions revenue was $207.60 million, compared to the average estimate of $205 million, reflecting a year-over-year decline of 10.4% [4] - International Operating Segment admissions revenue was $56.50 million, surpassing the average estimate of $51.54 million, with a year-over-year decline of 2.6% [4] - U.S. Operating Segment concession revenue was $164.40 million, exceeding the estimated $161.53 million, but down 8% year-over-year [4] - International Operating Segment concession revenue was $46 million, above the average estimate of $40.83 million, showing a year-over-year increase of 0.9% [4] - Total admissions revenue was $264.10 million, compared to the average estimate of $259.33 million, representing a year-over-year decline of 8.9% [4] - Other revenue was reported at $66.20 million, exceeding the estimated $61.03 million, with a year-over-year increase of 1.5% [4] - Total concession revenue was $210.40 million, above the estimated $205.44 million, reflecting a year-over-year decline of 6.2% [4] Stock Performance - Cinemark shares have returned +19.6% over the past month, while the Zacks S&P 500 composite has seen a -0.5% change, indicating a stronger performance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Cinemark's worldwide first quarter revenue was $541 million, with adjusted EBITDA of $36 million and an adjusted EBITDA margin of 6.7% [7][17] - Compared to the first quarter of 2022, adjusted EBITDA grew almost 45% despite inflationary cost pressures [7][17] - The company reported a net loss of $38.9 million, resulting in a loss per share of $0.32 [23] Business Line Data and Key Metrics Changes - U.S. operations hosted 20.6 million guests, generating $207.6 million in domestic admissions revenue [18] - Average ticket price increased by 3% year over year to $10.8, while domestic concession revenue was $164.4 million, achieving a new all-time high per cap of $7.98, up 5% year over year [19][19] - International operations welcomed 16 million guests, with revenue growing 1% year over year to $123.6 million [20] Market Data and Key Metrics Changes - North American industry box office totaled approximately $1.5 billion, declining 12% compared to the same period in 2024 [5] - Cinemark exceeded year-over-year North American box office performance by 160 basis points and surpassed Latin American benchmarks by nearly 60 basis points [6] Company Strategy and Development Direction - The company aims to capitalize on the ongoing resurgence of content in the theatrical market while maintaining operational discipline [16] - Investments are focused on enhancing the entertainment experience, strengthening theaters, and developing operating capabilities [15][16] - The company plans to repay $460 million of convertible notes using cash on hand upon maturity in August [24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry's recovery trajectory, despite lingering headwinds from Hollywood strikes [5] - The second quarter has shown record-breaking results with the release of the Minecraft movie, indicating strong consumer enthusiasm for theatrical experiences [8][9] - The company has not seen any adverse effects from the macroeconomic environment on moviegoing, with continued strong performance in attendance and concession sales [78] Other Important Information - The company executed a $200 million share repurchase program, representing the first stock buyback in its history [16][26] - The company paid its first quarterly dividend since the pandemic, reflecting confidence in its financial position [15][28] Q&A Session Summary Question: Share buyback program and future plans - Management expressed satisfaction with the execution of the $200 million share buyback and indicated that future repurchase decisions will depend on various factors, including cash liquidity and market conditions [31][33][34] Question: Insights on Amazon and Apple Studios - Management is encouraged by Amazon's commitment to theatrical releases and is optimistic about Apple's upcoming projects, although Apple is still in the early phases of its long-term plans [42][45] Question: Market share and operating hours - Management discussed the potential to adjust operating hours to capture more attendance during high-demand periods, while also noting that capacity constraints could impact market share [68][70] Question: Consumer behavior and macroeconomic impact - Management has not observed any negative impact on moviegoing due to the macroeconomic environment, with strong attendance and concession sales continuing [78][80] Question: Concession costs and future expectations - Management indicated that higher concession costs were driven by a mix of merchandise and inflationary pressures, but does not expect this to be the new run rate going forward [82][84]

Group 1 - Cinemark Holdings reported a quarterly loss of $0.32 per share, aligning with the Zacks Consensus Estimate, compared to earnings of $0.19 per share a year ago [1] - The company posted revenues of $540.7 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.06%, but down from $579.2 million year-over-year [2] - Cinemark has surpassed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock has lost approximately 3.5% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.80 on revenues of $958.46 million, and for the current fiscal year, it is $1.65 on revenues of $3.3 billion [7] Group 3 - The Zacks Industry Rank for Film and Television Production and Distribution is in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Cinemark is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6]

Financial Data and Key Metrics Changes - Cinemark's worldwide first quarter revenue was $541 million with adjusted EBITDA of $36 million and an adjusted EBITDA margin of 6.7% [6][16] - Compared to the first quarter of 2022, adjusted EBITDA grew almost 45% despite inflationary cost pressures [6][16] - The company reported a net loss of $38.9 million, resulting in a loss per share of $0.32 [23] Business Line Data and Key Metrics Changes - U.S. operations generated $417.1 million in revenue with adjusted EBITDA of $20 million, yielding a 4.8% adjusted EBITDA margin [18] - International operations grew revenue by 1% year over year to $123.6 million, with adjusted EBITDA of $16.4 million and an adjusted EBITDA margin of 13.3% [20][21] - Domestic average ticket price increased by 3% year over year to $10.8, while domestic concession revenue was $164.4 million, achieving a new all-time high per cap of $7.98, up 5% year over year [18][19] Market Data and Key Metrics Changes - North American industry box office totaled approximately $1.5 billion, declining 12% compared to the same period in 2024 [4] - Cinemark's market share in the U.S. grew by 30 basis points year over year, maintaining gains in excess of 100 basis points compared to pre-pandemic levels [17] - International market share also saw strong gains, delivering over 200 basis points of growth versus Q1 of 2019 [19] Company Strategy and Development Direction - Cinemark aims to capitalize on the ongoing resurgence of content in the theatrical market while maintaining operational discipline [15] - The company plans to invest in enhancing the entertainment experience, strengthening theater quality, and developing loyalty programs [14] - A $200 million share buyback program was executed to manage potential dilution related to convertible note settlements [15][25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry's recovery trajectory, citing strong upcoming film releases and sustained consumer enthusiasm for theatrical experiences [4][8] - The company has not seen any adverse effects from the macroeconomic environment on moviegoing, with continued strong performance in attendance and concession sales [77][78] - Management expects to maintain a balanced approach to capital allocation while focusing on long-term growth opportunities [27] Other Important Information - The company paid its first quarterly dividend since the pandemic, reflecting confidence in its financial position [14] - Capital expenditures for 2025 are anticipated to be $225 million, focusing on maintaining and enhancing the global circuit [26] Q&A Session Summary Question: Share buyback program and future plans - Management expressed satisfaction with the execution of the $200 million share buyback and indicated that future repurchase decisions will depend on various factors including cash liquidity and market conditions [30][32] Question: Expectations from Amazon and Apple studios - Management is encouraged by Amazon's commitment to theatrical releases and optimistic about Apple's upcoming projects, noting that both studios are investing in their theatrical strategies [42][46] Question: Impact of flexible windows on box office - Management acknowledged ongoing discussions about theatrical windows and their impact on consumer behavior, emphasizing the need for a balance that maximizes revenue without harming attendance [58][60] Question: Concession costs and future expectations - Management noted that higher concession costs were driven by a mix of merchandise and inflationary pressures but do not expect this to be the new run rate going forward [81][82] Question: Market share and operating hours - Management discussed the potential to adjust operating hours to capture more attendance during peak demand periods, while also noting the challenges posed by capacity constraints [68][70]

PART I. FINANCIAL INFORMATION [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. for Q1 2025, detailing balance sheets, income, equity, and cash flows, which reflect a net loss, revenue decline, and significant share repurchases [Cinemark Holdings, Inc. and Subsidiaries Financial Statements (unaudited)](index=5&type=section&id=Cinemark%20Holdings%2C%20Inc.%20and%20Subsidiaries%20Financial%20Statements%20%28unaudited%29) Cinemark Holdings, Inc. reported Q1 2025 total revenues of **$540.7 million**, a net loss of **$38.6 million**, and a decrease in cash to **$699.4 million** primarily due to share repurchases and dividends Condensed Consolidated Statements of Income (Loss) - Holdings | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$540.7M** | **$579.2M** | | Admissions | $264.1M | $289.8M | | Concession | $210.4M | $224.2M | | Operating (Loss) Income | ($19.2M) | $17.6M | | **Net (Loss) Income** | **($38.6M)** | **$25.3M** | | Diluted (Loss) Income Per Share | ($0.32) | $0.19 | Condensed Consolidated Balance Sheet Highlights - Holdings | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $699.4M | $1,057.3M | | Total Assets | $4,682.2M | $5,067.0M | | Total Long-Term Debt (Carrying Value) | $2,335.2M | $2,334.7M | | Total Equity | $357.6M | $603.4M | Condensed Consolidated Statements of Cash Flows - Holdings | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used for operating activities | ($119.1M) | ($22.7M) | | Net cash used for investing activities | ($15.3M) | ($23.3M) | | Net cash used for financing activities | ($230.1M) | ($10.4M) | | **Decrease in cash and cash equivalents** | **($357.9M)** | **($60.5M)** | [Cinemark USA, Inc. and Subsidiaries Financial Statements (unaudited)](index=12&type=section&id=Cinemark%20USA%2C%20Inc.%20and%20Subsidiaries%20Financial%20Statements%20%28unaudited%29) Cinemark USA, Inc. reported Q1 2025 total revenues of **$540.7 million** and a net loss of **$34.3 million**, with key differences from the parent company primarily in debt structure Condensed Consolidated Statements of Income (Loss) - CUSA | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$540.7M** | **$579.2M** | | Operating (Loss) Income | ($18.2M) | $18.5M | | **Net (Loss) Income** | **($34.3M)** | **$27.9M** | Condensed Consolidated Statements of Cash Flows - CUSA | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used for operating activities | ($111.1M) | ($16.4M) | | Net cash used for investing activities | ($15.3M) | ($23.3M) | | Net cash used for financing activities | ($20.4M) | ($10.4M) | | **Decrease in cash and cash equivalents** | **($140.2M)** | **($54.2M)** | [Notes to Condensed Consolidated Financial Statements](index=18&type=section&id=Cinemark%20Holdings%2C%20Inc.%20and%20Cinemark%20USA%2C%20Inc.%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation showing U.S. decline and international growth, dividend reinstatement, a **$200 million** share repurchase program, long-term debt terms, and no impairment charges - The company reinstated its quarterly dividend at **$0.32** per common share per annum, paying **$0.08** per share on March 19, 2025, for a total of **$10.1 million**[85](index=85&type=chunk) - On March 6, 2025, the Board approved a **$200.0 million** share repurchase program, which was completed between March 11 and March 27, 2025, funded by cash on hand[113](index=113&type=chunk) - The **4.50%** Convertible Senior Notes became convertible during the second quarter of 2025 because the closing price of Holdings' common stock exceeded the trigger price of **$18.60** per share for the required duration[89](index=89&type=chunk) - No impairment charges were recorded for long-lived assets, goodwill, or intangible assets for the three months ended March 31, 2025, following a qualitative impairment analysis[129](index=129&type=chunk)[130](index=130&type=chunk) Revenue by Segment (Three Months Ended March 31) | Segment | 2025 Revenue | 2024 Revenue | | :--- | :--- | :--- | | U.S. Operating Segment | $417.1M | $457.0M | | International Operating Segment | $123.6M | $122.2M | | **Consolidated Total** | **$540.7M** | **$579.2M** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **6.6%** revenue decline to a weaker film slate, impacting U.S. attendance, while international revenue grew, and the company plans to repay maturing convertible notes using cash and shares - The success of the industry is contingent on the volume of new film content, which is still recovering from the COVID-19 pandemic and the recent Hollywood strikes[167](index=167&type=chunk) Consolidated Revenue and Key Metrics Comparison | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $540.7M | $579.2M | (6.6)% | | Attendance (millions) | 36.6 | 39.7 | (7.8)% | | Average Ticket Price | $7.22 | $7.30 | (1.1)% | | Concession Revenue per Patron | $5.75 | $5.65 | 1.8% | - U.S. attendance decreased **12.7%** due to fewer tentpole releases, but average ticket price rose **2.6%** and concession spending per patron increased **5.4%** due to strategic pricing[185](index=185&type=chunk) - International revenue grew **1.1%** as reported, but **16.0%** in constant currency, driven by inflationary pricing actions and strong local film content[181](index=181&type=chunk)[185](index=185&type=chunk) - The company expects to repay the principal of its **4.50%** Convertible Senior Notes maturing in August 2025 with cash on hand, and intends to settle the remainder with shares[210](index=210&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&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 **$1.9 million**, partially hedged by interest rate swaps - The company has exposure to financial market risks, primarily changes in interest rates and foreign currency exchange rates[241](index=241&type=chunk) - A **100 basis point** increase in market interest rates would increase annual interest expense by **$1.9 million**, based on variable rate debt outstanding at March 31, 2025[242](index=242&type=chunk) - The company utilizes three interest rate swap agreements to hedge a portion of the interest rate risk associated with its variable-rate term loan[243](index=243&type=chunk)[246](index=246&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[248](index=248&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[250](index=250&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including class action lawsuits and an appeal related to its Exhibitor Services Agreement with National CineMedia, which management deems not material to its financial position - The company is appealing a bankruptcy court's confirmation order regarding National CineMedia (NCM) that did not preserve Cinemark's rights under the 'most favored nations' clause of its Exhibitor Services Agreement[161](index=161&type=chunk) - The company faces several class action lawsuits, including allegations of violating the Fair and Accurate Credit Transactions Act, California labor laws, and deceptive trade practices. The company maintains the allegations are without merit and will defend itself vigorously[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported for the quarter[254](index=254&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, Cinemark Holdings repurchased **8.53 million** shares, including **7.93 million** under a **$200 million** program completed by March 27, 2025 Share Repurchases - Q1 2025 | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Shares Purchased Under Plan (thousands) | | :--- | :--- | :--- | :--- | | Jan 2025 | 0.53 | $29.31 | — | | Feb 2025 | 594.77 | $28.94 | — | | Mar 2025 | 7,931.11 | $25.22 | 7,930.94 | | **Total** | **8,526.41** | **N/A** | **7,930.94** | - A share repurchase program for up to **$200 million** was approved on March 6, 2025, and was completed by March 27, 2025[256](index=256&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) This section discloses executive officers' adoption of Rule 10b5-1 trading plans and provides supplemental consolidating financial statements for Cinemark USA, Inc. as required by senior notes indentures - Several executive officers adopted Rule 10b5-1 trading plans for the orderly sale of company stock for personal financial planning. Executives include: - Melissa Thomas (CFO) - Sean Gamble (CEO) - Valmir Fernandes (President, International) - Michael Cavalier (General Counsel) - Wanda Gierhart (CMO)[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - Supplemental consolidating financial schedules for Cinemark USA, Inc. are provided as required by its senior notes indentures, separating restricted and unrestricted subsidiary groups[263](index=263&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including executive certifications under Sarbanes-Oxley Sections 302 and 906, and financial statements in iXBRL format - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and financial data in iXBRL format[279](index=279&type=chunk)

[Q1 2025 Performance Overview & Management Commentary](index=1&type=section&id=Cinemark%20Holdings%2C%20Inc.%20Reports%20First%20Quarter%202025%20Results) Overview of Cinemark's Q1 2025 performance, including key highlights and management's strategic commentary [Q1 2025 Performance Highlights](index=1&type=section&id=Q1%202025%20Earnings%20Highlights) Cinemark outperformed Q1 2025 industry benchmarks, achieving record domestic food and beverage per capita and initiating significant capital returns Q1 2025 Performance Metrics | Metric | Q1 2025 | | :--- | :--- | | Total Revenue | $541 million | | Net Loss | $(39) million | | Adjusted EBITDA | $36 million | | Adjusted EBITDA Margin | 6.7% | | Diluted Loss Per Share | $(0.32) | | Patrons Served | 37 million | - Domestic box office results surpassed the North American industry recovery by **160 basis points** year-over-year, and international admissions also outpaced their respective industry benchmarks[3](index=3&type=chunk) - Achieved a new all-time high for domestic food and beverage per patron at **$7.98**[3](index=3&type=chunk) - The company initiated its first-ever stock buyback program, repurchasing **$200 million** in shares, and paid its first quarterly dividend since the pandemic[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted Q1 2025 outperformance despite box office suppression, expressing optimism for industry recovery and justifying capital returns - Management anticipates a favorable rebound in the industry's recovery trajectory, highlighting that the North American box office in April nearly **doubled** year-over-year and that Q2 is pacing well ahead of 2024[1](index=1&type=chunk)[2](index=2&type=chunk) - The company's first-ever stock buyback program (**$200 million**) was executed to proactively mitigate potential dilution from the upcoming settlement of its convertible notes[2](index=2&type=chunk)[3](index=3&type=chunk) - The outlook is positive based on resilient consumer trends, a resurgence in wide release film volume, and Cinemark's strong competitive and financial position[2](index=2&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Financial%20and%20Operating%20Summary) Detailed analysis of Cinemark's Q1 2025 consolidated financial performance, balance sheet, cash flow, and segment results [Consolidated Financial Performance](index=2&type=section&id=Financial%20Results) Cinemark's Q1 2025 total revenue decreased 6.6%, resulting in a net loss of $(38.9) million due to lower admissions and concession revenue Consolidated Financial Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$540.7M** | **$579.2M** | **-6.6%** | | Admissions Revenue | $264.1M | $289.8M | -8.9% | | Concession Revenue | $210.4M | $224.2M | -6.2% | | **Net (Loss) Income** | **$(38.9)M** | **$24.8M** | **N/A** | | **Diluted (Loss) EPS** | **$(0.32)** | **$0.19** | **N/A** | | Attendance | 36.6M | 39.7M | -7.8% | Per Patron Metrics | Per Patron Metrics | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Worldwide Average Ticket Price | $7.22 | $7.30 | | Worldwide Concession Revenue | $5.75 | $5.65 | [Balance Sheet and Cash Flow](index=5&type=section&id=Balance%20sheet%20data%3A) Cinemark's Q1 2025 cash balance decreased to $699.4 million due to financing activities, leading to a negative free cash flow of $(141.2) million Balance Sheet Summary | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $699.4M | $1,057.3M | | Total assets | $4,682.2M | $5,067.0M | | Total long-term debt, net | $2,335.2M | $2,334.7M | | Total equity | $357.6M | $603.4M | Cash Flow Summary | Cash Flow | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $(119.1)M | $(22.7)M | | Cash from Investing Activities | $(15.3)M | $(23.3)M | | Cash from Financing Activities | $(230.1)M | $(10.4)M | | **Free Cash Flow** | **$(141.2)M** | **$(46.2)M** | [Segment Performance](index=5&type=section&id=Segment%20Information) U.S. segment revenue and Adjusted EBITDA declined significantly, while the International segment showed more resilience in Q1 2025 U.S. Segment Performance | U.S. Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $417.1M | $457.0M | | Attendance | 20.6M | 23.6M | | Average Ticket Price | $10.08 | $9.82 | | Concession Revenue Per Patron | $7.98 | $7.57 | | Adjusted EBITDA | $20.0M | $49.1M | International Segment Performance | International Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $123.6M | $122.2M | | Attendance | 16.0M | 16.1M | | Average Ticket Price | $3.53 | $3.60 | | Concession Revenue Per Patron | $2.88 | $2.83 | | Adjusted EBITDA | $16.4M | $21.6M | [Non-GAAP Reconciliations](index=6&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA significantly decreased to $36.4 million in Q1 2025, reconciled from net loss with adjustments for non-cash and financing items Reconciliation to Adjusted EBITDA (in millions) | Reconciliation to Adjusted EBITDA (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(38.6) | $25.3 | | Income tax benefit | $(14.7) | $(27.7) | | Interest expense | $38.5 | $37.7 | | Depreciation and amortization | $49.5 | $49.4 | | Other adjustments | $3.1 | $(5.0) | | **Adjusted EBITDA** | **$36.4** | **$70.7** | - Adjusted EBITDA is a non-GAAP measure used by management to assess performance, liquidity, and for incentive compensation purposes, excluding items like income taxes, interest, and depreciation[20](index=20&type=chunk)

Company Overview - Cinemark Holdings (CNK) is expected to report a quarterly loss of $0.22 per share, reflecting a year-over-year decline of 215.8% [3] - Revenues are anticipated to be $553.82 million, down 4.4% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for May 2, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 8.65% higher in the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that the Most Accurate Estimate for Cinemark is lower than the consensus estimate, resulting in an Earnings ESP of -34.26% [10][11] - A negative Earnings ESP reading suggests a lower likelihood of an earnings beat, especially with a Zacks Rank of 3 (Hold) [11] Historical Performance - In the last reported quarter, Cinemark was expected to post earnings of $0.39 per share but delivered only $0.33, resulting in a surprise of -15.38% [12] - Over the past four quarters, Cinemark has beaten consensus EPS estimates three times [13] Industry Context - Live Nation (LYV), another company in the film and television production and distribution industry, is expected to report a loss of $0.27 per share, which represents a year-over-year increase of 49.1% [17] - Live Nation's revenues are projected to be $3.5 billion, down 7.8% from the previous year [17] - The consensus EPS estimate for Live Nation has been revised down by 1.4% in the last 30 days, resulting in an Earnings ESP of -39.03% [18]