Cinemark(CNK) - 2025 Q1 - Quarterly Results

Q1 2025 Performance Overview & Management Commentary Overview of Cinemark's Q1 2025 performance, including key highlights and management's strategic commentary Q1 2025 Performance Highlights 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] - Achieved a new all-time high for domestic food and beverage per patron at $7.98[3] - The company initiated its first-ever stock buyback program, repurchasing $200 million in shares, and paid its first quarterly dividend since the pandemic[3] Management Commentary 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][2] - 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][3] - 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] Detailed Financial Analysis Detailed analysis of Cinemark's Q1 2025 consolidated financial performance, balance sheet, cash flow, and segment results Consolidated Financial Performance 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 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 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 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]