Part I [Business](index=8&type=section&id=Item%201.%20Business) NCM operates North America's largest cinema advertising network, leveraging its Noovie® pre-show and expanding digital offerings amidst post-pandemic recovery - NCM, Inc. is a holding company that manages NCM LLC, holding a **48.3% interest** as of December 30, 2021, with founding members Cinemark and Regal holding the remaining **51.7%** and former founding member AMC holding **0.0% ownership** at year-end[28](index=28&type=chunk) - The company's primary business is its cinema advertising network, featuring the Noovie® pre-show, which includes over **20,700 screens** in more than **1,600 theaters** across **195 Designated Market Areas® (DMAs)**[30](index=30&type=chunk) - The COVID-19 pandemic caused most network theaters to close for approximately **six months in 2020**, with revenue and attendance remaining below pre-pandemic levels despite all theaters reopening by **Q3 2021** and improved attendance with major film releases[34](index=34&type=chunk)[35](index=35&type=chunk) - The Noovie® pre-show includes a "Classic" version and a "Post-Showtime Inventory" format, with the latter present in theaters representing approximately **57% of the network's attendance** as of year-end 2021[37](index=37&type=chunk) - NCM is expanding its digital footprint with products like Noovie Trivia, Noovie ARcade, and the Noovie Audience Accelerator, with mobile apps downloaded approximately **6.5 million times** and contributing to a data set of over **274 million records** for targeted advertising as of December 30, 2021[55](index=55&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) Advertising Revenue Mix (FY 2021 vs. FY 2020) | Revenue Source | FY 2021 | FY 2020 | | :--- | :--- | :--- | | National Clients | 75% | 74% | | Regional & Local Advertisers | 16% | 19% | - The company's growth strategy involves increasing the value of cinema media through premium Post-Showtime Inventory and affiliate network expansion, diversifying its revenue model with branded content and digital/data solutions, and optimizing operational effectiveness by enhancing technology infrastructure[101](index=101&type=chunk)[106](index=106&type=chunk)[111](index=111&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business and industry risks, including pandemic impacts and competition, alongside corporate structure risks from debt and founding member influence - **Business & Industry Risks:** - **COVID-19 Pandemic:** The pandemic continues to disrupt business, with potential for new variants, government restrictions, and permanent changes in consumer behavior (e.g., adoption of streaming) posing significant threats - **Theater Attendance:** Declines in attendance, whether from competition with alternative film delivery methods or changes in patron behavior like reserved seating, could reduce the value of cinema advertising - **Dependence on Founding Members:** The business is critically dependent on the ESAs with Cinemark and Regal, where termination, lack of cooperation, or bankruptcy of a founding member could have a material negative impact - **Competition:** The company competes with all other forms of advertising, including larger and better-known platforms like television and digital media, for a share of the estimated **$265 billion U.S. advertising market**[118](index=118&type=chunk)[123](index=123&type=chunk)[135](index=135&type=chunk)[85](index=85&type=chunk) - **Corporate Structure Risks:** - **Holding Company Structure:** NCM, Inc. has no operations and depends on cash distributions from NCM LLC, which are subject to restrictions under NCM LLC's debt agreements - **Substantial Debt:** NCM LLC's significant debt contains restrictive covenants that limit its ability to make investments, acquisitions, and distribute cash, potentially impairing financial condition - **Influence of Founding Members:** Cinemark and Regal can designate directors and hold veto power over certain major corporate actions, potentially creating conflicts of interest - **Tax Receivable Agreement (TRA):** The obligation to pay **90% of realized tax benefits** to founding members reduces cash flow that would otherwise be available to the company[171](index=171&type=chunk)[174](index=174&type=chunk)[178](index=178&type=chunk)[200](index=200&type=chunk) [Unresolved Staff Comments](index=35&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[203](index=203&type=chunk) [Properties](index=35&type=section&id=Item%202.%20Properties) The company owns no material real property, leasing its corporate headquarters in Centennial, Colorado, and additional offices in major cities - The Company's headquarters are located in Centennial, Colorado, with additional leased advertising sales offices in New York, Los Angeles, and Chicago, and development offices in Los Angeles, New York, and Minneapolis[204](index=204&type=chunk) [Legal Proceedings](index=35&type=section&id=Item%203.%20Legal%20Proceedings) The company is not aware of any pending legal proceedings expected to materially affect its financial condition or operating results - The company is not currently involved in any litigation that is expected to have a material adverse effect on its financial condition or results of operations[205](index=205&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[206](index=206&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "NCMI", with a dividend policy subject to Board discretion and debt covenants, and includes details on Q4 2021 equity purchases - The company's common stock (**$0.01 par value**) is traded on The Nasdaq Global Market under the symbol "**NCMI**"[213](index=213&type=chunk) - The company intends to pay a regular quarterly dividend, but the declaration and amount are at the sole discretion of the Board of Directors and are dependent on business conditions, financial health, and restrictions under NCM LLC's credit agreements[214](index=214&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 29 - Dec 2, 2021 | 40,128 | $3.18 | [Reserved](index=37&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - This item is reserved[218](index=218&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2021 revenue increased to **$114.6 million** driven by attendance recovery, but operating losses continued, with liquidity managed through credit facility amendments Fiscal Year 2021 vs. 2020 Performance Summary (in millions) | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $114.6M | $90.4M | 26.8% | | Operating Loss | $(68.6)M | $(61.0)M | 12.5% | | Net Loss Attributable to NCM, Inc. | $(48.7)M | $(65.4)M | (25.5)% | | Adjusted OIBDA | $(24.7)M | $(19.4)M | 27.3% | | Total Theater Attendance | 250.7M | 138.2M | 81.4% | - The increase in total revenue was primarily driven by the **81.4% increase** in network attendance and a **48.0% increase** in impressions sold as theaters reopened and major films were released[252](index=252&type=chunk) - Operating expenses rose **21.0%** to **$183.2 million**, largely due to a **107.7% increase** in theater access fees paid to founding members, which are tied to active screens and attendance[255](index=255&type=chunk)[257](index=257&type=chunk) - The company's liquidity position decreased, with total liquidity (cash plus revolver availability) at **$109.3 million** at year-end 2021, down from **$186.2 million** in 2020, and operating activities used **$95.2 million** in cash in 2021, a significant shift from providing **$55.3 million** in 2020[277](index=277&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - Subsequent to year-end, in January 2022, NCM LLC amended its credit agreement to suspend financial covenants through **Q4 2022** and entered into a new **$50.0 million** revolving credit agreement to bolster liquidity[231](index=231&type=chunk)[232](index=232&type=chunk) - A key critical accounting estimate is the valuation allowance against deferred tax assets, with the company maintaining a valuation allowance of **$223.8 million** due to a three-year cumulative loss, which significantly reduces the corresponding payable to founding members under the Tax Receivable Agreement (TRA)[309](index=309&type=chunk)[310](index=310&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its variable-rate debt, which constituted **43%** of total borrowings at year-end 2021 - The company is exposed to interest rate risk on its variable-rate debt, which constituted **43% of total borrowings** at year-end 2021[301](index=301&type=chunk) - A hypothetical **100 basis point (1%) change** in market interest rates would increase or decrease annual cash interest expense by approximately **$4.8 million** based on the debt levels outstanding at December 30, 2021[314](index=314&type=chunk) [Financial Statements and Supplementary Data](index=55&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for fiscal years 2021 and 2020, highlighting a **$48.7 million** net loss, a **$383.5 million** total deficit, and **$95.2 million** net cash outflow from operations [Consolidated Balance Sheets](index=58&type=section&id=Consolidated%20Balance%20Sheets) As of December 30, 2021, total assets were **$817.4 million**, total liabilities **$1,200.9 million**, and a total stockholders' deficit of **$383.5 million** Consolidated Balance Sheet Summary (in millions) | | Dec 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $101.2 | $180.3 | | Receivables, net | $53.0 | $16.2 | | Intangible assets, net | $606.3 | $627.8 | | **Total Assets** | **$817.4** | **$886.2** | | **Liabilities & Equity** | | | | Long-term debt, net | $1,094.3 | $1,049.6 | | Payable to founding members under TRA | $16.4 | $33.5 | | **Total Liabilities** | **$1,200.9** | **$1,154.8** | | **Total Equity/(Deficit)** | **$(383.5)** | **$(268.6)** | [Consolidated Statements of Income](index=59&type=section&id=Consolidated%20Statements%20of%20Income) Fiscal 2021 revenue reached **$114.6 million**, but **$183.2 million** in operating expenses resulted in a **$68.6 million** operating loss and a **$48.7 million** net loss attributable to NCM, Inc Consolidated Statement of Income Summary (in millions) | | Year Ended Dec 30, 2021 | Year Ended Dec 31, 2020 | | :--- | :--- | :--- | | Revenue | $114.6 | $90.4 | | Operating Loss | $(68.6) | $(61.0) | | Net Loss Attributable to NCM, Inc. | $(48.7) | $(65.4) | | Net Loss Per Share (Basic & Diluted) | $(0.61) | $(0.84) | [Consolidated Statements of Cash Flows](index=61&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Fiscal 2021 saw **$95.2 million** net cash used in operating activities, a reversal from 2020, with overall cash and cash equivalents decreasing by **$79.1 million** Consolidated Cash Flow Summary (in millions) | | Year Ended Dec 30, 2021 | Year Ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(95.2) | $55.3 | | Net cash (used in) provided by investing activities | $(5.4) | $15.6 | | Net cash provided by financing activities | $21.5 | $53.5 | | **Change in Cash and Cash Equivalents** | **$(79.1)** | **$124.4** | [Notes to Consolidated Financial Statements](index=63&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and balances, covering revenue recognition, intangible assets, income taxes, related-party transactions, debt, and commitments - **Note 2 (Revenue):** Revenue is disaggregated by customer type: National/regional, Local, and Founding Member beverage revenue, with a provision for potential "make-goods" (undelivered ad impressions) of **$2.4 million** at year-end 2021[396](index=396&type=chunk)[399](index=399&type=chunk) - **Note 5 (Intangible Assets):** The company's intangible assets, primarily related to ESAs with founding members, had a net book value of **$606.3 million**, with no impairment charges recorded in 2021 despite triggering events due to adverse macroeconomic trends[408](index=408&type=chunk)[409](index=409&type=chunk)[412](index=412&type=chunk) - **Note 10 (Borrowings):** Total outstanding debt was **$1.108 billion** as of Dec 30, 2021, with the company securing amendments to its credit agreement to waive non-compliance with financial covenants and provide liquidity, and entering a new **$50 million** revolving credit agreement subsequent to year-end[449](index=449&type=chunk)[451](index=451&type=chunk)[452](index=452&type=chunk) - **Note 13 (Commitments):** The ESAs and affiliate agreements are considered short-term leases under ASC 842, exempting them from balance sheet recognition as ROU assets/liabilities, and the company has minimum revenue guarantees to network affiliates of up to **$126.3 million** over the agreements' remaining terms[485](index=485&type=chunk)[489](index=489&type=chunk) - **Note 16 (Subsequent Events):** In January 2022, the company further amended its credit agreement, extending the covenant waiver holiday through **Q4 2022**, and in March 2022, declared a quarterly cash dividend of **$0.05 per share**[504](index=504&type=chunk)[508](index=508&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=88&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable, indicating no changes in or disagreements with the company's accountants - Not applicable[509](index=509&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 30, 2021, with no material changes identified - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of **December 30, 2021**[511](index=511&type=chunk) - Management concluded that the Company's internal control over financial reporting was effective as of **December 30, 2021**, based on the COSO framework[512](index=512&type=chunk) - The company's independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[514](index=514&type=chunk)[518](index=518&type=chunk) [Other Information](index=90&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[525](index=525&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=90&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the company's 2022 Proxy Statement - Information required by this item is incorporated by reference from the Company's 2022 Proxy Statement[528](index=528&type=chunk) [Executive Compensation](index=90&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's 2022 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement[530](index=530&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=90&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management, and equity compensation plans, is incorporated by reference from the 2022 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement[531](index=531&type=chunk)[532](index=532&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=90&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the company's 2022 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement[533](index=533&type=chunk)[534](index=534&type=chunk) [Principal Accounting Fees and Services](index=90&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on fees paid to independent auditors for accounting and other services is incorporated by reference from the company's 2022 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement[535](index=535&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=91&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section indexes all exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and certifications, referencing financial statements and schedules - This item refers to the Index to Financial Statements on page **55** and the Exhibit Index beginning on page **92** of the report[537](index=537&type=chunk) [Form 10-K Summary](index=96&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company's filing - Not applicable[544](index=544&type=chunk)

National CineMedia, Inc. (NASDAQ:NCMI) Q3 2021 Earnings Conference Call November 8, 2021 5:00 PM ET Company Participants Ronnie Ng - CFO Tom Lesinski - CEO Conference Call Participants Eric Wold - B. Riley Securities Joe Farricielli - Cantor Fitzgerald Jim Goss - Barrington Research Alex Graf - Cowen and Co. Operator Good day, and welcome to the National CineMedia Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is be ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ____________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-33296 _________________________________________ ...

National CineMedia, Inc. (NASDAQ:NCMI) Q2 2021 Earnings Conference Call August 9, 2021 5:00 PM ET Company Participants Ted Watson - Senior VP of Finance Thomas Lesinski - CEO Conference Call Participants Eric Wold - B. Riley Securities Operator Good evening and welcome to the National CineMedia, Inc. Q2 2021 Earnings Conference Call. All participants are in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements for July 1, 2021, reflect COVID-19 impact, showing weakened balance sheet, Q2 revenue rebound, but expanded losses and negative operating cash flow [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of July 1, 2021, total assets decreased to $851.0 million, liabilities increased to $1,200.0 million, and equity deficit worsened to $(349.0) million Condensed Consolidated Balance Sheet Data (in millions) | Metric | July 1, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $175.5 | $199.9 | | **Total Assets** | $851.0 | $886.2 | | **Total Current Liabilities** | $53.4 | $50.0 | | **Long-term Debt, net** | $1,093.8 | $1,049.6 | | **Total Liabilities** | $1,200.0 | $1,154.8 | | **Total Equity/(Deficit)** | $(349.0) | $(268.6) | [Unaudited Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q2 2021 revenue rose to $14.0 million, but operating loss widened; YTD revenue fell to $19.4 million, with net loss expanding to $(42.1) million Condensed Consolidated Statements of Income (in millions, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $14.0 | $4.0 | $19.4 | $68.7 | | **Operating Loss** | $(29.6) | $(23.8) | $(57.9) | $(18.9) | | **Consolidated Net Loss** | $(46.9) | $(33.4) | $(88.9) | $(41.6) | | **Net Loss Attributable to NCM, Inc.** | $(22.7) | $(13.8) | $(42.1) | $(17.5) | | **Basic & Diluted EPS** | $(0.28) | $(0.18) | $(0.53) | $(0.22) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six months ended July 1, 2021, saw negative operating cash flow of $(61.6) million, with cash and cash equivalents decreasing by $32.9 million Condensed Consolidated Statements of Cash Flows (in millions) | Metric | Six Months Ended July 1, 2021 | Six Months Ended June 25, 2020 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(61.6) | $107.4 | | **Net cash (used in) provided by investing activities** | $(2.9) | $15.5 | | **Net cash provided by financing activities** | $31.6 | $66.6 | | **Change in cash and cash equivalents** | $(32.9) | $189.5 | | **Cash and cash equivalents at end of period** | $147.4 | $245.4 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail COVID-19 impact, Q2 revenue rebound, significant debt, credit agreement amendments, related-party transactions, and subsequent dividend declaration - As of July 1, 2021, approximately **97.0%** of the theaters in the company's network were open, leading to the highest attendance since the start of the COVID-19 pandemic. However, advertising revenue remained significantly below historical levels[27](index=27&type=chunk) - AMC redeemed its membership units in exchange for NCM, Inc. common stock on March 23, 2021, reducing its ownership in NCM LLC to **0.0%** as of July 1, 2021[26](index=26&type=chunk) Disaggregation of Revenue (in millions) | Revenue Type | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | National and regional | $8.9 | $1.7 | $12.6 | $51.5 | | Local | $3.0 | $2.3 | $4.2 | $11.7 | | Founding member beverage | $2.1 | $0.0 | $2.6 | $5.5 | | **Total Revenue** | **$14.0** | **$4.0** | **$19.4** | **$68.7** | Total Outstanding Debt (in millions) | Borrowings | July 1, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Revolving credit facility | $167.0 | $167.0 | | Term loans - first tranche | $261.9 | $263.3 | | Term loans - second tranche | $49.9 | $0.0 | | Senior unsecured notes due 2026 | $230.0 | $230.0 | | Senior secured notes due 2028 | $400.0 | $400.0 | | **Total borrowings** | **$1,108.8** | **$1,060.3** | - On March 8, 2021, NCM LLC amended its Credit Agreement, incurring a new **$50.0 million** term loan and obtaining a waiver of non-compliance with key financial covenants through the quarter ending June 30, 2022 (Extended Covenant Waiver Holiday)[76](index=76&type=chunk)[78](index=78&type=chunk)[82](index=82&type=chunk) - On August 9, 2021, the company declared a cash dividend of **$0.05 per share**, payable on September 6, 2021[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses COVID-19 impact, Q2 revenue rebound, weak H1 performance, cost-saving measures, and liquidity efforts, while remaining optimistic about industry recovery - As of July 1, 2021, approximately **97.0%** of the company's network theaters were open, resulting in the highest attendance since the start of the pandemic, though advertising revenue remained significantly below historical levels[119](index=119&type=chunk) - To ensure liquidity, the company has reduced headcount by **over 30%** compared to pre-pandemic levels and secured board approval for a new **$20.0 million** unsecured revolving loan agreement between NCM Inc. and NCM LLC[120](index=120&type=chunk)[121](index=121&type=chunk) Q2 2021 vs Q2 2020 Results of Operations (in millions) | Metric | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $14.0 | $4.0 | 250.0% | | **Total Operating Expenses** | $43.6 | $27.8 | 56.8% | | **Operating Loss** | $(29.6) | $(23.8) | 24.4% | | **Adjusted OIBDA** | $(18.7) | $(12.7) | 47.2% | YTD 2021 vs YTD 2020 Results of Operations (in millions) | Metric | YTD 2021 | YTD 2020 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $19.4 | $68.7 | (71.8)% | | **Total Operating Expenses** | $77.3 | $87.6 | (11.8)% | | **Operating Loss** | $(57.9) | $(18.9) | 206.3% | | **Adjusted OIBDA** | $(34.9) | $1.7 | (2152.9)% | - The company has implemented numerous cost-saving measures, including employee furloughs and salary reductions, suspension of the 401K match, deferral of capital expenditures, and a reduction in the quarterly dividend to **$0.05 per share**[173](index=173&type=chunk)[178](index=178&type=chunk) - Under its amended credit agreement, NCM LLC must maintain a minimum liquidity of **$55.0 million** and is restricted from making cash distributions to its members (including NCM, Inc.) until at least the third quarter of 2022, subject to meeting certain leverage covenants[176](index=176&type=chunk)[181](index=181&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuations on variable-rate debt, where a 100-basis point increase would raise annual interest expense by $4.8 million - The company's primary market risk is interest rate risk related to its $175.0 million revolving credit facility and term loans[189](index=189&type=chunk) - A 100-basis point fluctuation in market interest rates would change the company's annual cash interest expense by approximately **$4.8 million** based on outstanding balances as of July 1, 2021[189](index=189&type=chunk)[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of July 1, 2021, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of July 1, 2021, the Chief Executive Officer concluded that the company's disclosure controls and procedures were effective[192](index=192&type=chunk) - No changes occurred during the quarter ended July 1, 2021, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[194](index=194&type=chunk) [PART II - OTHER INFORMATION](index=40&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any pending litigation that would have a material adverse effect on its operating results or financial condition - The company reports no material legal proceedings[196](index=196&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 - No material changes to risk factors were reported since the last Form 10-K filing[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 64,251 shares from employees during the quarter to satisfy tax withholding obligations upon restricted stock vesting Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2 - April 29, 2021 | 3,711 | $4.52 | | April 30 - May 27, 2021 | 60,540 | $4.27 | | May 28 - July 1, 2021 | — | $— | [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[200](index=200&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) The company reports no other information - None[203](index=203&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment agreements and required certifications

Q1 '21 Earnings Supplemental Presentation Liquidity and COVID-19 Update Forward-Looking Statements 2 This presentation contains various forward-looking statements that reflect management's current expectations or beliefs regarding future events. Investors are cautioned that reliance on these forward-looking statements involves risks and uncertainties. Although the Company believes that the assumptions used in the forward-looking statements are reasonable, any of these assumptions could prove to be inaccurat ...

National CineMedia, Inc. (NASDAQ:NCMI) Q1 2021 Results Conference Call May 10, 2021 5:00 PM ET Company Participants Ted Watson - SVP, Finance Tom Lesinski - CEO Conference Call Participants Eric Wold - B. Riley Securities Mike Hickey - The Benchmark Company Jim Goss - Barrington Research Operator Good day and welcome to the National CineMedia, Incorporation First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being rec ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ____________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2021 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-33296 _____________________________________________ ...

COVID-19 Impact and Theater Operations - As of December 2020, 60% of National CineMedia's (NCM) advertising network theaters were closed due to COVID-19, improving to 48% by March 8, 2021[6] - NCM LLC's payments are tied to attendance, active screens, and revenue, resulting in reduced expenses during theater closures and periods of lower attendance[7] Financial Position and Liquidity - NCM LLC started Q4 2020 with $1574 million in cash, ending with $1239 million[8] - Accounts receivable increased from $90 million to $162 million during Q4 2020[8] - NCM LLC has a liquidity runway of 12-13 months without further revenue, before considering bank debt covenants[8] Credit Agreement Amendment - NCM LLC amended its Credit Agreement on March 8, 2021, modifying covenants and waiving compliance through June 30, 2022[11] - The amendment sets specific leverage ratios for the quarter ending around September 29, 2022: 675 to 100 for the consolidated net total leverage ratio and 550 to 100 for the consolidated net senior secured leverage ratio[11] - NCM LLC is restricted from making cash distributions until after delivering a compliance certificate for the quarter ending around September 29, 2022, and only if certain conditions are met, including a senior secured financial covenant leverage ratio of 400 to 100 or less and outstanding revolving loans of $390 million or less[13] - NCM LLC will incur $500 million in new incremental term loans for general corporate purposes, with an interest rate of LIBOR plus 800% and a maturity of December 20, 2024[15] 2020 Highlights and Subsequent Events - NCM upgraded its planning, proposal, and inventory tracking system, expecting annual overhead savings of approximately $12 million from 2019 levels[18] - Total first- and second-party data sets for NCM's digital platform reached over 170 million as of December 31, 2020, up from 106 million a year prior[20] - NCM signed a long-term cinema advertising affiliate agreement with Harkins Theatres, adding approximately 500 screens and 33 theaters beginning in May 2021[22] Q4 and YTD 2020 Financial Performance - Q4 2020 total revenue decreased 893% to $157 million compared to Q4 2019[25] - Q4 2020 Adjusted OIBDA decreased 1119% to -$99 million[25] - YTD 2020 total revenue decreased 797% to $904 million compared to YTD 2019[39] - YTD 2020 Adjusted OIBDA decreased 1093% to -$194 million[39]

National CineMedia, Inc. (NASDAQ:NCMI) Q4 2020 Earnings Conference Call March 8, 2020 5:00 PM ET Company Participants Ted Watson - SVP, Finance Tom Lesinski - CEO Conference Call Participants Eric Wold - B Riley Securities Eric Handler - MKM Partners Mike Hickey - The Benchmark Company Operator Greetings and welcome to the National CineMedia, Inc., Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your h ...