Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Cinemark Holdings (CNK) and Vail Resorts (MTN) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and esti ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are unde ...

Financial Data and Key Metrics Changes - In Q1 2024, the company generated $579.2 million in worldwide revenue and delivered $70.7 million of adjusted EBITDA, yielding a solid adjusted EBITDA margin of 12.2% [45][64] - The company reported a net income of $24.8 million for the quarter, resulting in earnings per share of $0.19, which included a $27.7 million tax benefit [76] - The company ended the quarter with a strong cash position of $789 million and a net leverage ratio of 2.8 times for the trailing 12 months [50][77] Business Line Data and Key Metrics Changes - Domestic segment generated $457 million of total revenue with $49.1 million of adjusted EBITDA, yielding an adjusted EBITDA margin of 10.7% [73] - International operations delivered $122.2 million of total revenue with $21.6 million of adjusted EBITDA, yielding a 17.7% adjusted EBITDA margin [47] - Concession revenue in the U.S. reached $178.6 million, with a record concession per cap of $7.57, growing 2% year-over-year [10][45] Market Data and Key Metrics Changes - The North American industry box office declined modestly compared to 2023, with strong performances from titles like "Dune Part Two" and "Kung Fu Panda 4" [20][37] - The company maintained strong market share across both domestic and international markets, with a recovery exceeding industry averages by 700 basis points domestically and 600 basis points internationally compared to 2019 [63][42] Company Strategy and Development Direction - The company emphasizes a disciplined approach to capital allocation, focusing on strengthening its balance sheet while pursuing strategic investments for long-term success [51][52] - The company is optimistic about the resurgence of film volume, supported by a diverse slate of upcoming films and a strong consumer interest in theatrical experiences [25][40] - The company aims to enhance its theater offerings, including premium amenities and expanded food and beverage options, to drive incremental growth [69][70] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending has remained resilient, with no significant impact from macroeconomic conditions observed so far [81] - The company expects ongoing inflationary pressures but plans to offset these through strategic sourcing and pricing strategies [140] - Management remains optimistic about the future, anticipating a return to pre-pandemic levels of film volume by 2025 or 2026 [138][110] Other Important Information - The company successfully retired $150 million of COVID-related debt, reflecting confidence in its financial position and the industry's recovery [39] - The company has over 21 million members in its global loyalty programs, with the U.S. Movie Club accounting for 25% of domestic box office revenue [43][91] Q&A Session Summary Question: Impact of consumer spending on ticket and concession purchases - Management indicated that consumer behavior remains consistent with historical trends, with no significant impact from the macro economy observed [55] Question: Staffing costs and expense control initiatives - Management discussed ongoing efforts to optimize staffing based on attendance levels and to drive labor productivity through various initiatives [84][111] Question: Market share performance and loyalty programs - Management highlighted the positive impact of loyalty programs on market share, noting that Movie Club members tend to be more frequent and satisfied moviegoers [113][91] Question: M&A strategy and capital allocation - Management stated that M&A remains a potential growth avenue, with a focus on high-quality assets that can deliver solid returns [115][116] Question: Future film output and relationships with studios - Management expressed positive relationships with studio partners and noted that exclusive theatrical windows enhance the value of films [96][121]

Cinemark Holdings (CNK) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of a loss of $0.21 per share. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 190.48%. A quarter ago, it was expected that this movie theater owner would post a loss of $0.16 per share when it actually produced a loss of $0.15, delivering a surprise of 6.25%.Over the last four quarter ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company presents unaudited Q1 2024 financial statements for both the holding and operating entities [Cinemark Holdings, Inc. Financial Statements](index=5&type=section&id=Cinemark%20Holdings%2C%20Inc.%20Financial%20Statements) The holding company reported a net income of $25.3 million on revenues of $579.2 million for Q1 2024 Cinemark Holdings, Inc. - Condensed Consolidated Statement of Income (Loss) | (in millions, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total revenue** | **$579.2** | **$610.7** | | Operating income | $17.6 | $28.5 | | Loss before income taxes | $(2.4) | $(6.4) | | Income tax benefit | $(27.7) | $(3.9) | | **Net income (loss)** | **$25.3** | **$(2.5)** | | Net income (loss) attributable to Cinemark Holdings, Inc. | $24.8 | $(3.1) | | **Basic EPS** | **$0.20** | **$(0.03)** | | **Diluted EPS** | **$0.19** | **$(0.03)** | Cinemark Holdings, Inc. - Condensed Consolidated Balance Sheet Highlights | (in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $788.6 | $849.1 | | **Total Assets** | **$4,780.1** | **$4,836.8** | | Long-term debt, less current portion | $2,391.6 | $2,391.3 | | **Total Liabilities** | **$4,444.7** | **$4,518.0** | | **Total Equity** | **$335.4** | **$318.8** | Cinemark Holdings, Inc. - Condensed Consolidated Statement of Cash Flows | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(22.7) | $7.9 | | Net cash used for investing activities | $(23.3) | $(26.3) | | Net cash used for financing activities | $(10.4) | $(4.9) | | **Decrease in cash and cash equivalents** | **$(60.5)** | **$(24.4)** | [Cinemark USA, Inc. Financial Statements](index=11&type=section&id=Cinemark%20USA%2C%20Inc.%20Financial%20Statements) The primary operating subsidiary posted a net income of $27.9 million on revenues of $579.2 million Cinemark USA, Inc. - Condensed Consolidated Statement of Income | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total revenue** | **$579.2** | **$610.7** | | Operating income | $18.5 | $29.4 | | Income before income taxes | $1.3 | $(2.2) | | Income tax benefit | $(26.6) | $(8.5) | | **Net income** | **$27.9** | **$6.3** | | Net income attributable to Cinemark USA, Inc. | $27.4 | $5.7 | Cinemark USA, Inc. - Condensed Consolidated Balance Sheet Highlights | (in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $558.2 | $612.4 | | **Total Assets** | **$4,612.4** | **$4,655.9** | | Long-term debt, less current portion | $1,936.3 | $1,936.8 | | **Total Liabilities** | **$3,989.1** | **$4,055.6** | | **Total Equity** | **$623.3** | **$600.3** | Cinemark USA, Inc. - Condensed Consolidated Statement of Cash Flows | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(16.4) | $15.7 | | Net cash used for investing activities | $(23.3) | $(26.3) | | Net cash used for financing activities | $(10.4) | $(4.9) | | **Decrease in cash and cash equivalents** | **$(54.2)** | **$(16.6)** | [Notes to Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue disaggregation, debt structure, segment performance, and a significant tax benefit Disaggregation of Revenue by Segment (in millions) | Segment | Q1 2024 Revenue | Q1 2023 Revenue | | :--- | :--- | :--- | | U.S. Operating Segment | $457.0 | $479.1 | | International Operating Segment | $122.2 | $131.6 | | **Total** | **$579.2** | **$610.7** | Long-Term Debt Carrying Value (in millions) | (As of March 31, 2024) | Cinemark Holdings, Inc. | Cinemark USA, Inc. | | :--- | :--- | :--- | | Total long-term debt | $2,430.0 | $1,970.0 | | Less: Current portion | $7.8 | $7.8 | | Less: Debt issuance costs, net | $30.6 | $25.9 | | **Long-term debt, net** | **$2,391.6** | **$1,936.3** | - The company recorded a significant **deferred tax benefit of $33.7 million** in Q1 2024 related to the release of valuation allowances in certain foreign jurisdictions, which was a primary driver of the quarter's net income[178](index=178&type=chunk)[240](index=240&type=chunk) - Subsequent to the quarter's end, on May 1, 2024, CUSA redeemed the remaining **$150.0 million outstanding principal** of its 8.75% Senior Secured Notes[38](index=38&type=chunk)[124](index=124&type=chunk) - The company's investment in National CineMedia, Inc. (NCMI) is accounted for at fair value, resulting in a recognized **unrealized gain of $4.4 million** for the quarter[71](index=71&type=chunk)[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 5.2% revenue decline due to lower attendance from Hollywood strike impacts [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Q1 revenue decreased 5.2% to $579.2 million, driven by a 7.5% decline in attendance Consolidated Revenue and Key Performance Indicators | Metric (in millions, except per patron data) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Admissions revenue | $289.8 | $311.0 | (6.8%) | | Concession revenue | $224.2 | $235.8 | (4.9%) | | **Total revenue** | **$579.2** | **$610.7** | **(5.2%)** | | Attendance | 39.7 | 42.9 | (7.5%) | | Average ticket price | $7.30 | $7.25 | 0.7% | | Concession revenue per patron | $5.65 | $5.50 | 2.7% | - The decrease in attendance was attributed to less carryover benefit from prior year releases and the reduced scale of new film releases due to the impact of the Hollywood strikes[176](index=176&type=chunk) Adjusted EBITDA Reconciliation (in millions) | | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $25.3 | $(2.5) | | Add back: Taxes, Interest, D&A, etc. | $45.4 | $88.7 | | **Adjusted EBITDA** | **$70.7** | **$86.2** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity despite using $22.7 million in cash from operations - Cash used for operating activities was **$(22.7) million for Holdings**, a decrease from cash provided by operating activities of $7.9 million in Q1 2023, driven by timing of revenue and vendor payments[134](index=134&type=chunk) - **Capital expenditures totaled $23.5 million**, with $20.3 million invested in existing theatres and $3.2 million for new theatres[152](index=152&type=chunk) - On May 1, 2024, the company redeemed the remaining **$150.0 million principal amount** of its 8.75% Secured Notes, which fully satisfied and discharged the related indenture[128](index=128&type=chunk)[165](index=165&type=chunk) - As of March 31, 2024, the company was in **full compliance with all covenants** governing its outstanding debt[167](index=167&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rate fluctuations on variable-rate debt and foreign currency - The company is exposed to interest rate risk on its variable rate debt; a **100 basis point increase** in interest rates would increase annual interest expense by **$2.0 million**[168](index=168&type=chunk) - The company uses three interest rate swap agreements to hedge a portion of the interest rate risk associated with its variable rate term loan[168](index=168&type=chunk)[169](index=169&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024 - Management concluded that as of March 31, 2024, the company's **disclosure controls and procedures were effective**[196](index=196&type=chunk)[214](index=214&type=chunk) - **No material changes** to the company's internal control over financial reporting were identified during the first quarter of 2024[172](index=172&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal proceedings, none of which are deemed financially material - The company is appealing a summary judgment in favor of its insurer, Factory Mutual, regarding claims for losses sustained due to **COVID-19 theatre closures**[95](index=95&type=chunk) - A new putative nationwide class action lawsuit was filed on April 16, 2024, alleging **mislabeling of twenty-four ounce draft beer cups**[257](index=257&type=chunk) - The company is appealing a confirmation order from the NCM bankruptcy case related to its Exhibitor Services Agreement[95](index=95&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the previous annual report - The company reported **no material changes** to its risk factors from the most recent Form 10-K filing[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 253,720 shares to satisfy employee tax-withholding obligations Share Repurchases in Q1 2024 | Period | Total Shares Purchased (in thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 0.52 | $13.93 | | February 2024 | 252.99 | $16.48 | | March 2024 | 0.21 | $17.97 | | **Total** | **253.72** | **N/A** | - Share repurchases were conducted to satisfy **employee tax-withholding obligations** upon vesting of share-based awards[199](index=199&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) Supplemental financial statements for Cinemark USA, Inc. are provided for debt covenant compliance - Supplemental financial schedules are provided for CUSA to comply with the requirements of its senior notes indentures, separating restricted and unrestricted subsidiaries[220](index=220&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including SOX certifications - The report includes **CEO and CFO certifications** as required by Sections 302 and 906 of the Sarbanes-Oxley Act[207](index=207&type=chunk) - Financial statements and notes are provided in **iXBRL format** as part of Exhibit 101[207](index=207&type=chunk)

Financial Performance - Cinemark Holdings, Inc. reported total revenue of $579.2 million for Q1 2024, a decrease of 5.2% compared to $610.7 million in Q1 2023[10]. - Admissions revenue decreased by 6.8% to $289.8 million, while concession revenue decreased by 4.9% to $224.2 million, driven by a 7.5% decrease in attendance to 39.7 million patrons[10]. - Adjusted EBITDA for Q1 2024 was $70.7 million, down from $86.2 million in Q1 2023, resulting in a 12.2% Adjusted EBITDA margin[15][17]. - Net income attributable to Cinemark Holdings, Inc. was $24.8 million for Q1 2024, compared to a loss of $(3.1) million in Q1 2023[21]. - Total revenue for Q1 2024 was reported at $579 million, a decrease of 5.1% compared to $610.7 million in Q1 2023[34]. - Net income for Q1 2024 was $25 million, with diluted earnings per share of $0.19, compared to a net loss of $2.5 million in Q1 2023[33]. - Adjusted EBITDA for Q1 2024 was $71 million, representing a margin of 12.2%[34]. - Admissions revenue decreased to $231.8 million in Q1 2024 from $244.7 million in Q1 2023, a decline of 5.9%[32]. - Concession revenue also fell to $178.6 million in Q1 2024, down from $186.8 million in Q1 2023, a decrease of 4.4%[32]. Attendance and Market Presence - The company entertained 40 million moviegoers across its global footprint during the quarter[20]. - The average ticket price decreased to $23.6 in Q1 2024 from $25.2 in Q1 2023[32]. - The worldwide average ticket price was $7.30, and concession revenue per patron was $5.65 during the quarter[10]. - Concession revenue per patron increased to $7.57 in Q1 2024 from $7.41 in Q1 2023[32]. - The company operated 502 theatres with 5,708 screens across 42 states and 13 countries as of March 31, 2024[35]. Cash and Debt Management - As of March 31, 2024, Cinemark had cash and cash equivalents of $788.6 million, down from $849.1 million at the end of 2023[7]. - The company maintained a cash balance of $789 million at the end of Q1 2024[34]. - Total long-term debt as of March 31, 2024, was $2,399.4 million, slightly up from $2,399.1 million at the end of 2023[7]. - Cinemark redeemed the remaining $150 million of COVID-related senior secured notes, reflecting a positive long-term outlook for the company[27]. - Cinemark redeemed $150 million of COVID-related senior secured notes on May 1, 2024, ahead of their maturity in May 2025[34]. Expansion Plans - The company plans to open 3 new theatres and 33 screens over the next two years, expanding its market presence[4].

Cinemark Holdings (CNK) shares ended the last trading session 5.4% higher at $19.77. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% gain over the past four weeks.Shares of Cinemark jumped, after an analyst at Wells Fargo upgraded the company’s rating. Per the report, the analyst raised his rating from underweight to overweight, citing the many planned movies of the year. He believes that the Cinemark stock pr ...

Cinemark (NYSE: CNK) stock price has continued to trounce AMC this year. It has jumped by a whopping 42%, beating the S&P 500 and Nasdaq 100 indices, which are up by about 10%. Notably, Cinemark has completely diverged from AMC, which has bottomed to a record low amid a series of equity raises.Analysts are optimistic about AMC Copy link to section Cinemark share price has been in a strong bullish trend since December. It has jumped by 139%, making it one of the best-performing companies in Wall Street. The ...

Cinemark (NYSE:CNK) stock is in the news Friday after the movie theater chain was granted a rare double upgrade from Wells Fargo analyst Steven Cahall.The Wells Fargo analysts bumped shares of CNK stock up from an “underweight” rating to an “overweight” rating. That’s worth noting as the analysts’ consensus rating for CNK shares is hold based on 10 opinions.To go along with that upgrade, Cahall increased the firm’s price target for CNK stock from $13 per share to $23 per share. That’s a potential upside of ...

Wells Fargo doled out a double upgrade for Cinemark Holdings, Inc. (NYSE:CNK) to "overweight" from "underweight" and hiked its price target to $23 from $13. The analyst in question cited improved performance and strong demand. CNK is up 3.9% at $19.50 before the open.Today's pop has shares looking to open at their highest level since October and push above recent pressure near the $19 level. The equity bounced off the $17.60 floor earlier this month and so far this year has added 33.1%.Analysts are still sp ...