National CineMedia(US:NCMI)2024-11-05 21:12Financial Performance - Total revenue increased by $37.7 million, or 152.6%, from $24.7 million in Q3 2023 to $62.4 million in Q3 2024[63]. - National advertising revenue rose by $31.3 million, or 201.9%, from $15.5 million in Q3 2023 to $46.8 million in Q3 2024[64]. - Local and regional advertising revenue increased by $6.3 million, or 123.5%, from $5.1 million in Q3 2023 to $11.4 million in Q3 2024[64]. - ESA Party beverage revenue grew by $2.5 million, or 147.1%, from $1.7 million in Q3 2023 to $4.2 million in Q3 2024[64]. - Total revenue increased by $80.1 million, or 107.7%, from $74.4 million for the nine months ended September 28, 2023, to $154.5 million for the nine months ended September 26, 2024[70]. - National advertising revenue rose by $74.9 million, or 174.2%, from $43.0 million to $117.9 million for the same period[71]. - Local and regional advertising revenue increased by $12.3 million, or 86.6%, from $14.2 million to $26.5 million[71]. Operating Expenses - Total operating expenses increased by $32.9 million, or 88.9%, from $37.0 million in Q3 2023 to $69.9 million in Q3 2024[65]. - ESA Parties and network affiliate fees rose by $18.4 million, or 126.9%, from $14.5 million in Q3 2023 to $32.9 million in Q3 2024[65]. - Selling and marketing costs increased by $3.8 million, or 60.3%, from $6.3 million in Q3 2023 to $10.1 million in Q3 2024, mainly due to the reconsolidation of NCM LLC[67]. - Administrative and other costs rose by $5.6 million, or 76.7%, from $7.3 million in Q3 2023 to $12.9 million in Q3 2024, driven by increased advisor and legal fees[67]. - Total operating expenses increased by $71.8 million, or 58.8%, from $122.1 million to $193.9 million[72]. - ESA Parties and network affiliate fees increased by $39.3 million, or 91.8%, from $42.8 million to $82.1 million[73]. Net Income and Loss - The company experienced a net loss attributable to NCM, Inc. of $3.6 million in Q3 2024, compared to a profit of $181.8 million in Q3 2023[64]. - Revenue decreased by $7.2 million, or 10.3%, from $69.6 million in Q3 2023 to $62.4 million in Q3 2024[69]. - Total non-operating income decreased by $190.2 million, or 98.0%, from $194.1 million in Q3 2023 to $3.9 million in Q3 2024, primarily due to a decrease in gains from reconsolidation[68]. - Adjusted OIBDA decreased by $2.5 million, or 22.1%, from $11.3 million in Q3 2023 to $8.8 million in Q3 2024[69]. - Operating loss improved by $143.2 million, from a loss of $150.7 million in Q3 2023 to a loss of $7.5 million in Q3 2024[69]. Bankruptcy and Restructuring - National CineMedia reported a gain on deconsolidation of $557.7 million during the second quarter of 2023 due to the deconsolidation of NCM LLC following its Chapter 11 filing[58]. - NCM LLC emerged from bankruptcy on August 7, 2023, with all historical debt discharged and a gain on bankruptcy of $916.4 million recorded for the nine months ended December 28, 2023[58]. - NCM LLC's restructuring plan included transferring $15.5 million to NCM LLC and assuming certain unexpired contracts, facilitating its emergence from bankruptcy[58]. - NCM LLC emerged from bankruptcy on August 7, 2023, after satisfying the conditions of its Plan[92]. Attendance and Market Metrics - Total theater attendance decreased by 10.1 million, or 7.7%, from 131.7 million in Q3 2023 to 121.6 million in Q3 2024[69]. - Total theater attendance decreased by 66.4 million, or 18.6%, from 356.6 million to 290.2 million[76]. - National advertising revenue fell by $5.2 million, or 10.0%, from $52.0 million in Q3 2023 to $46.8 million in Q3 2024, primarily due to a 7.7% decrease in attendance[69]. Cash Flow and Liquidity - As of September 26, 2024, total liquidity was $93.9 million, an increase of $14.9 million from $79.0 million in the previous year[85]. - Cash provided by operating activities increased by $52.1 million for the nine months ended September 26, 2024, compared to the same period in 2023, primarily due to a $58.0 million decrease in net loss adjusted for non-cash items[88]. - Cash used in investing activities increased by $36.5 million, mainly due to a $49.5 million addition of cash from the reconsolidation of NCM LLC in Q3 2023[88]. - Cash used in financing activities decreased by $40.0 million, primarily due to the removal of $49.6 million of cash from the deconsolidation of NCM LLC in Q2 2023[88]. Debt and Financial Obligations - The weighted average remaining maturity of the company's debt was 1.9 years, with 100% of borrowings bearing interest at variable rates[85]. - NCM, Inc. expects to use cash balances and future distributions to fund payments associated with the TRA, stock repurchases, and potential dividends[89]. - As of September 26, 2024, NCM LLC owed NCM, Inc. $4.7 million in deferred available cash distribution[89]. - The company does not expect to make a TRA payment in 2024 for the 2023 tax year[89]. Internal Controls and Compliance - The company maintains effective disclosure controls and procedures as of September 26, 2024, ensuring timely decision-making regarding required disclosures[91]. - There were no changes to the internal control over financial reporting during the quarter ended September 26, 2024, that materially affected the company's reporting[91]. - The company does not anticipate any material impact from recently issued accounting pronouncements on its financial statements[91].