[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]

Market Overview - The US movie market is projected to reach approximately $34.64 billion by 2033, growing from $23.44 billion in 2024, with a compound annual growth rate (CAGR) of 4.43% from 2025 to 2033 [1][10]. Growth Drivers - Increased consumer demand for diverse content, significant investments in streaming services, and advancements in cinematic technologies are key factors driving market growth [1]. - Franchise films, particularly superhero sagas and multi-sequel blockbusters, are gaining momentum, ensuring consistent demand due to their loyal fan base and interconnected storytelling [3]. - The shift towards streaming platforms like Netflix, Disney+, and Amazon Prime Video has transformed consumer preferences, propelling the market by offering exclusive and on-demand content [4]. Technological Advancements - Innovations in film production and distribution, such as high-definition visual effects and immersive audio systems, have enhanced the viewing experience, while streaming services have expanded access to films from home [2]. Challenges - The US movie market faces challenges such as declining theatre attendance, exacerbated by the COVID-19 pandemic and rising ticket prices, leading audiences to prefer home viewing [7]. - Online piracy and content leakage are significant issues, negatively impacting box office revenues and streaming subscriptions, thus affecting profitability for studios and distributors [8]. Recent Developments - In January 2024, Netflix entered a ten-year, $5 billion deal with WWE for exclusive broadcasting rights of Monday Night Raw, along with a $150 million deal with the NFL for live Christmas Day game broadcasts [5][6].

Company Overview - Cinemark Holdings, Inc. operates movie theaters across the US and in several South American markets, with a total of 304 US theaters and 193 international theaters at the end of 2024, showing stability compared to the previous year [1] Investment Philosophy - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials, often revealed through a DCF model valuation, allowing for a comprehensive assessment of a stock's risk-to-reward profile [1]

Investor Presentation February 19, 2025 Forward Looking Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS PURSUANT TO THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation contains, and our officers and representatives may from time to time make, "forward–looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The "forward looking statements" can be identified by words such as "may," "should," "co ...

Financial Data and Key Metrics Changes - In 2024, North American industry box office reached approximately $8.8 billion, climbing to within 3% of 2023 levels despite prior year strikes in Hollywood [10] - Cinemark delivered worldwide revenue of more than $3 billion with $590 million of adjusted EBITDA, maintaining a solid 19.4% adjusted EBITDA margin, flat year over year despite a 4% decline in attendance [12][13] - For Q4 2024, Cinemark's worldwide revenue grew nearly 28% to a record $814.3 million, with adjusted EBITDA nearly doubling year over year to $156.9 million, expanding adjusted EBITDA margin by 680 basis points to 19.3% [38] Business Line Data and Key Metrics Changes - Domestic operations generated $666.4 million in revenue and $128 million of adjusted EBITDA, yielding a 19.2% adjusted EBITDA margin [42] - Internationally, Cinemark entertained 18.4 million guests in Q4, growing international revenue 23% year over year to $147.9 million, with adjusted EBITDA increasing 160% to $28.9 million, yielding a 19.5% adjusted EBITDA margin [43] Market Data and Key Metrics Changes - Cinemark maintained market share flat in Q4 2024 compared to elevated levels in Q4 2023, with significant share gains of more than 100 basis points compared to pre-pandemic levels [39] - International attendance reached 90% of 2019 levels, with market share continuing to outperform pre-pandemic figures [43] Company Strategy and Development Direction - The company plans to capitalize on the anticipated recovery in box office attendance by refining programming and showtime scheduling, leveraging marketing, pricing, and loyalty capabilities, and pursuing concession sale opportunities [31][32] - Strategic initiatives include enhancing guest experiences, investing in premium amenities, and optimizing operational efficiencies to drive long-term growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a diversified film slate for 2025 and a recovery trajectory for the industry following the 2023 strikes [28][29] - The company aims to maintain a balanced approach to capital allocation while addressing remaining COVID-related debt and focusing on long-term shareholder value [34][56] Other Important Information - Cinemark reinstated its cash dividend of $0.32 per share, reflecting confidence in future prosperity and resilience [34][55] - The company ended 2024 with a healthy cash balance of $1.1 billion, benefiting from $315 million of free cash flow generation [49] Q&A Session Summary Question: What will drive further growth in concessions? - Management highlighted a range of initiatives including optimizing product assortment, improving purchase ease, and strategic pricing to drive incidents and overall growth in food and beverage sales [59][61][65] Question: How is the content schedule for 2025 looking? - Management noted that while the first quarter is lighter, the rest of the year shows a promising increase in volume and diversity of content, which is expected to maximize occupancy [68][70][71] Question: How will the company handle convertible note maturities? - The company plans to repay the principal amount of convertible notes using cash on hand upon their August 2025 maturity, with flexibility to settle any exposure above the principal amount based on stock price [76][78] Question: What are the prospects for new builds and screen additions? - Management confirmed the reactivation of the new build pipeline, with ongoing projects and opportunities being explored, particularly in suburban markets [92][93][110] Question: How does the company plan to improve margins in 2025? - Management expects margin expansion driven by higher operating leverage from increased box office, but noted potential headwinds from rising film rental rates and ongoing wage pressures [95][100][106]

Cinemark Holdings (CNK) reported $814.3 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 27.5%. EPS of $0.33 for the same period compares to -$0.15 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $798.2 million, representing a surprise of +2.02%. The company delivered an EPS surprise of -15.38%, with the consensus EPS estimate being $0.39.While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Cinemark Holdings (CNK) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.38%. A quarter ago, it was expected that this movie theater owner would post earnings of $0.58 per share when it actually produced earnings of $1.19, delivering a surprise of 105.17%.Over the last four quarters, t ...

Core Insights - Cinemark reported mixed fourth-quarter results, missing earnings per share forecasts but exceeding revenue expectations [1] - The company experienced a 28% year-over-year revenue increase, reaching $814.3 million, while earnings improved to 33 cents per share from a loss of 15 cents a year ago [1] - Despite strong box office performance for family movies, total revenue for the year was $8.8 billion, still below pre-pandemic levels due to the impact of strikes and declining attendance [2] Financial Performance - For the full year, Cinemark's revenue was $3.0495 billion, with admissions revenue falling 2% to $1.5 billion and attendance decreasing by 4 million to 201.1 million ticket buyers [5] - The company is reinstating its annual cash dividend at $0.32 per share, marking a significant milestone in its recovery from the pandemic [3][4] Market Trends - The fourth quarter saw strong box office results driven by family films such as Moana 2, Wicked, Mufasa, and Sonic 3, indicating a potential recovery in consumer interest in theatrical releases [2]

Theater Operations - As of December 31, 2024, the company operated 497 theaters and 5,653 screens across the U.S. and Latin America, with 304 theaters and 4,255 screens in the U.S. and 193 theaters and 1,398 screens in Latin America[21][22][53]. - The company maintains a significant presence in major cities in Latin America, being the largest exhibitor in Brazil and Argentina, with theaters in 15 of the 20 largest metropolitan areas[44]. - Holdings operates 193 theaters with 1,398 screens in 13 countries in Latin America as of December 31, 2024[110]. - The company operates a total of 457 theaters, with 264 leased and 40 owned in the U.S., and 193 leased internationally[153]. - The company has approximately 18,800 employees in the U.S., with 21% being full-time and 79% part-time, and around 10,400 employees internationally, with 51% full-time[89]. Box Office Performance - North American box office revenues for 2024 were approximately $8.8 billion, down about 3% compared to 2023, indicating sustained consumer demand for theatrical experiences[24]. - Latin American box office revenues were approximately $2.1 billion for 2024, down approximately 12% compared to 2023[27]. - The company’s revenues are historically seasonal, with peak periods during summer months and the holiday season, influenced by the timing and quality of film releases[86]. - The volume of new films available for theatrical exhibition has not fully recovered to pre-pandemic levels, impacting revenue generation[103]. - Attendance decreased by 4.1% to 201.1 million in 2024 from 209.8 million in 2023[214]. Customer Experience and Loyalty - Luxury Lounger heated recliner seats are featured in 69% of the total domestic circuit, enhancing the guest experience[39]. - The company has a loyal customer base with over 24 million members in its global loyalty programs, contributing approximately 25% of domestic box office revenue from over one million paid Movie Club subscription members[50]. - The company has introduced a free loyalty program, Movie Fan, allowing guests to earn one point for every dollar spent, redeemable for tickets and concessions[79]. - As of December 31, 2024, mobile concession ordering is available at all U.S. theaters, streamlining the guest experience by allowing pre-purchase and pickup or delivery to seats[67]. Financial Performance - Total revenue for the year ended December 31, 2023, was $3,066.7 million, a decrease of 0.6% compared to $3,049.5 million in 2024[208]. - Admissions revenue decreased by 2.1% to $1,522.5 million in 2024 from $1,555.6 million in 2023, while concession revenue increased by 0.5% to $1,197.8 million[214]. - The average ticket price rose by 2.2% to $7.57 in 2024 from $7.41 in 2023, while concession revenue per patron increased by 4.9% to $5.96[214]. - The company reported an operating income of $362.9 million for the year ended December 31, 2023, compared to an operating loss of $89.8 million in 2022[208]. Competition and Market Challenges - The company faces competition from local, regional, national, and international exhibitors, with primary U.S. competitors including Regal and AMC[82]. - The motion picture exhibition industry is highly competitive, with six major film distributors accounting for approximately 84% of U.S. box office revenues[105]. - Future expansion plans may be hindered by competition for new site locations and financing challenges[114]. - The company faces risks related to labor shortages, which could negatively impact operations and guest experience[111]. Debt and Financial Obligations - As of December 31, 2024, Holdings had $2,363.7 million in long-term debt obligations, including $1,903.7 million of CUSA debt[116]. - Holdings and CUSA had $125.3 million in finance lease obligations and $784.0 million in long-term operating lease obligations as of December 31, 2024[116]. - The company currently has a non-investment grade rating for its debt, which may lead to increased borrowing costs and limited access to capital markets[121]. - The company is subject to substantial lease and debt obligations, which could reduce cash flow available for operations, capital expenditures, and dividends[119]. Strategic Initiatives - The company has a disciplined approach to capital allocation, focusing on strategic investments in existing theaters and new builds to ensure long-term growth[46]. - The company actively focuses on maximizing attendance and box office results through pricing strategies and omni-channel marketing platforms[34]. - The company has invested in technological innovations such as laser projectors and motion seats to remain competitive in the entertainment industry[141]. - The company has developed its Flix Media brand for screen advertising in Latin America, expanding services to include alternative content and digital media[72]. Regulatory and Economic Factors - Regulatory compliance costs related to various laws and regulations could significantly impact the company's operations[133]. - Inflation may adversely affect the company's overall cost structure, particularly if it cannot achieve corresponding increases in ticket prices[145]. - The company may face increased labor and benefits costs due to rising minimum wage laws and labor market conditions[135]. - A credit market crisis could materially impact the company's ability to raise capital and invest in future growth[130]. Cybersecurity and Risk Management - The company has developed an information security program to address material risks from cybersecurity threats, including endpoint threat detection and response, identity and access management, and multi-factor authentication[148]. - The Chief Technology Officer (CTO) oversees the information security program, with regular reviews of risks and security measures conducted monthly with the management team[152]. - The company maintains insurance coverage for cyber risks, but future events could result in costs and business impacts that may exceed available insurance[140]. - The company has a written incident response plan and conducts tabletop exercises to enhance incident response preparedness[150].