National CineMedia(NCMI) - 2025 Q2 - Quarterly Results

Company Announcement & Overview National CineMedia reported a Q2 2025 revenue and Adjusted OIBDA decline, with CEO optimism for a stronger second half, Q3 outlook, and a declared dividend Q2 2025 Results Summary National CineMedia reported a decrease in Q2 2025 total revenue by 5.3% to $51.8 million, with operating loss increasing to $12.0 million and net loss per diluted share at $0.11, while Adjusted OIBDA also decreased significantly to $0.7 million from $7.6 million in Q2 2024 Q2 2025 Key Financial Highlights (Unaudited, $ in millions) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Total Revenue | 51.8 | 54.7 | -5.3% | | Operating Loss | (12.0) | (9.3) | +29.0% | | Net Loss per Diluted Share | (0.11) | (0.09) | +22.2% | | Adjusted OIBDA | 0.7 | 7.6 | -90.8% | - Total revenue for the six months ended June 26, 2025, decreased 6.0% to $86.6 million compared to $92.1 million for the same period in 2024[4] - Adjusted OIBDA for the six months ended June 26, 2025, decreased to negative $8.3 million from positive $1.9 million for the same period in 2024[4] CEO Commentary & Strategic Outlook CEO Tom Lesinski acknowledged a challenging Q2 but expressed optimism for a stronger second half of 2025, driven by renewed industry momentum from a strong summer box office, upcoming tentpole releases, and growing advertiser confidence, with the company remaining focused on its long-term strategy for sustainable, profitable growth - CEO notes challenging economic and advertising environment in Q2 but is encouraged by third-quarter sales commitments pacing ahead of last year's levels[2] - Optimistic about a stronger second half of the year, driven by a strong summer box office, compelling slate of upcoming tentpole releases, and growing advertiser confidence[2] - Company remains focused on executing its long-term strategy to drive sustainable, profitable growth[2] Q3 2025 Outlook For the third quarter of 2025, NCM LLC anticipates total revenue between $62.0 million and $67.0 million, and Adjusted OIBDA in the range of $7.5 million to $11.5 million Q3 2025 Financial Outlook (Unaudited, $ in millions) | Metric | Q3 2025 Outlook | | :---------------- | :-------------------- | | Total Revenue | $62.0 - $67.0 | | Adjusted OIBDA | $7.5 - $11.5 | Dividend Declaration On August 5, 2025, the Company declared a quarterly cash dividend of $0.03 per share, payable on August 29, 2025, to stockholders of record on August 15, 2025 - Declared a cash dividend of $0.03 per share (approximately $2.8 million) on common stock[5] - Dividend payable on August 29, 2025, to stockholders of record on August 15, 2025[5] Detailed Financial Statements (GAAP) Presents unaudited condensed consolidated statements of income and selected balance sheet data, detailing financial performance and position Condensed Consolidated Statements of Income Presents the unaudited consolidated statements of income for the three and six months ended June 26, 2025, and June 27, 2024, showing detailed revenue, operating expenses, and net loss figures Condensed Consolidated Statements of Income (Unaudited, $ in millions, except per share data) | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE | $51.8 | $54.7 | $86.6 | $92.1 | | OPERATING EXPENSES: | | | | | | Network operating costs | 3.2 | 3.7 | 6.2 | 7.3 | | Theater exhibition fees | 30.9 | 26.7 | 52.6 | 49.2 | | Selling and marketing costs | 9.8 | 9.6 | 20.4 | 19.6 | | Administrative and other costs | 10.6 | 13.4 | 23.5 | 26.9 | | Depreciation expense | 1.1 | 1.1 | 2.2 | 2.2 | | Amortization expense | 8.2 | 9.5 | 17.6 | 18.9 | | Total Operating Expenses | 63.8 | 64.0 | 122.5 | 124.1 | | OPERATING LOSS | (12.0) | (9.3) | (35.9) | (32.0) | | CONSOLIDATED NET LOSS | (10.7) | (8.7) | (41.4) | (43.4) | | NET LOSS ATTRIBUTABLE TO NCM, INC. | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | NET LOSS PER NCM, INC. COMMON SHARE Basic | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | NET LOSS PER NCM, INC. COMMON SHARE Diluted | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | WEIGHTED AVERAGE SHARES OUTSTANDING: Basic | 93,978,031 | 96,409,830 | 94,681,546 | 96,664,241 | | WEIGHTED AVERAGE SHARES OUTSTANDING: Diluted | 93,978,031 | 96,409,830 | 94,681,546 | 96,664,241 | Selected Condensed Balance Sheet Data Presents selected unaudited condensed balance sheet data as of June 26, 2025, and December 26, 2024, highlighting key asset, liability, and equity figures Selected Condensed Balance Sheet Data (Unaudited, $ in millions) | Metric | As of June 26, 2025 | As of December 26, 2024 | | :------------------------------------------ | :------------------ | :---------------------- | | Cash, cash equivalents, marketable securities and restricted cash | $40.3 | $78.2 | | Receivables, net | $57.1 | $85.3 | | Property and equipment, net | $16.7 | $16.4 | | Total assets | $462.0 | $568.6 | | Borrowings, gross | $— | $10.0 | | Total equity | $350.0 | $411.2 | | Total liabilities and equity | $462.0 | $568.6 | Operating Data Presents key operational metrics, including network and attendance data, along with detailed revenue breakout and per attendee metrics Network and Attendance Metrics Provides key operational metrics including total screens, ESA Party screens, total attendance, and capital expenditures for the three and six months ended June 26, 2025, and June 27, 2024 Operating Data (Unaudited) | Metric | June 26, 2025 | June 27, 2024 | | :------------------------------------ | :------------ | :------------ | | Total Screens (100% Digital) at Period End | 17,832 | 18,279 | | ESA Party Screens at Period End | 9,413 | 9,552 | | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Attendance for Period (in millions) | 115.3 | 92.8 | 187.7 | 168.6 | | ESA Party Attendance for Period (in millions) | 72.2 | 57.6 | 118.6 | 104.7 | | Capital Expenditures (in millions) | $2.0 | $1.0 | $2.9 | $2.3 | Revenue Breakout and Per Attendee Data Details revenue segmentation into national, local/regional, and beverage concessionaire agreements, along with corresponding revenue per attendee metrics Revenue Breakout (Unaudited, $ in millions) | Revenue Type | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | National advertising revenue | $41.2 | $41.7 | $68.6 | $71.2 | | Local and regional advertising revenue | $6.4 | $9.8 | $11.2 | $15.0 | | ESA Party advertising revenue from beverage concessionaire agreements | $4.2 | $3.2 | $6.8 | $5.9 | | Total revenue | $51.8 | $54.7 | $86.6 | $92.1 | Per Attendee Data (Unaudited) | Per Attendee Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | National advertising revenue per attendee | $0.357 | $0.449 | $0.365 | $0.422 | | Local and regional advertising revenue per attendee | $0.056 | $0.106 | $0.060 | $0.089 | | Total advertising revenue (excluding beverage) per attendee | $0.413 | $0.555 | $0.425 | $0.511 | | Total revenue per attendee | $0.449 | $0.589 | $0.461 | $0.546 | | Total attendance (in millions) | 115.3 | 92.8 | 187.7 | 168.6 | Non-GAAP Financial Measures & Reconciliations Defines and reconciles non-GAAP financial measures, including Adjusted OIBDA, Adjusted Net Loss, and Adjusted Loss Per Share, from their GAAP equivalents Adjusted OIBDA Definition and Reconciliation Provides the definition of Adjusted OIBDA, its purpose for management and investors, limitations, and a detailed reconciliation from operating loss for the reported periods - Adjusted OIBDA is a non-GAAP measure representing operating income before depreciation and amortization, adjusted to also exclude non-cash share-based payment costs, workforce reorganization costs, system optimization costs, satellite transition costs, and advisor fees related to the Cineworld proceeding and Chapter 11 case[26] - Management uses Adjusted OIBDA to evaluate operating performance, forecast future results, and as a basis for compensation, believing it highlights trends in core business by eliminating less relevant items[26][27] Reconciliation of Operating Loss to Adjusted OIBDA (Unaudited, $ in millions) | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating loss | $(12.0) | $(9.3) | $(35.9) | $(32.0) | | Depreciation expense | 1.1 | 1.1 | 2.2 | 2.2 | | Amortization expense | 8.2 | 9.5 | 17.6 | 18.9 | | Share-based compensation costs | 2.9 | 3.5 | 5.6 | 6.1 | | Workforce reorganization costs | 0.3 | 1.4 | 0.3 | 2.9 | | System optimization costs | 0.1 | — | 0.3 | — | | Satellite transition costs | — | 0.3 | — | 0.3 | | Fees and expenses related to Cineworld proceeding and Chapter 11 case | 0.1 | 1.1 | 1.6 | 3.5 | | Adjusted OIBDA | $0.7 | $7.6 | $(8.3) | $1.9 | | Adjusted OIBDA margin | 1.4% | 13.9% | (9.6)% | 2.1% | Adjusted Net Loss and Loss Per Share Definition and Reconciliation Defines Adjusted net loss and loss per share as non-GAAP measures, explaining their exclusion of specific non-recurring costs and their reconciliation from GAAP net loss and loss per share - Adjusted net loss and loss per share are non-GAAP measures that exclude workforce reorganization costs, system optimization costs, satellite transition costs, advisor fees related to the Cineworld proceeding and Chapter 11 case, and loss on re-measurement of the payable under the tax receivable agreement[32] - Management uses these measures as an additional tool to evaluate operating performance, highlighting trends in the core business by eliminating items with less bearing on performance[32] Reconciliation of Net Loss and Loss Per Share to Adjusted Net Loss and Loss Per Share (Unaudited, $ in millions, except per share data) | Metric | Three Months Ended June 26, 2025 | Three Months Ended June 27, 2024 | Six Months Ended June 26, 2025 | Six Months Ended June 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss as reported | $(10.7) | $(8.7) | $(41.4) | $(43.4) | | Workforce reorganization costs | 0.3 | 1.4 | 0.3 | 2.9 | | System optimization costs | 0.1 | — | 0.3 | — | | Satellite transitions costs | — | 0.3 | — | 0.3 | | Fees and expenses related to the Cineworld proceeding and Chapter 11 case | 0.1 | 1.1 | 1.6 | 3.5 | | (Gain) loss on re-measurement of the payable under the tax receivable agreement | (0.8) | — | 4.6 | 12.2 | | Net effect of adjusting items | $(0.3) | $2.8 | $6.8 | $18.9 | | Net loss excluding adjusting items | $(11.0) | $(5.9) | $(34.6) | $(24.5) | | Diluted loss per share as reported | $(0.11) | $(0.09) | $(0.44) | $(0.45) | | Net effect of adjusting items (per share) | 0.00 | 0.03 | 0.07 | 0.20 | | Diluted loss per share excluding adjusting items | $(0.11) | $(0.06) | $(0.37) | $(0.25) | Additional Information Provides conference call details, an overview of National CineMedia, cautionary forward-looking statements, and investor and media contact information Conference Call Details Information regarding the conference call and audio webcast for investors and analysts on August 5, 2025, including access details and replay availability - Company to host a conference call and audio webcast on August 5, 2025, at 5:00 P.M. Eastern Time[7] - Live call access via dialing 1-844-826-3033 (US) or 1-412-317-5185 (International), with webcast available at www.ncm.com under Investor Relations[7] - Replay of the conference call will be available until midnight Eastern Time, August 19, 2025[8] About National CineMedia, Inc. National CineMedia, Inc. is the largest cinema advertising platform in the U.S., connecting brands with young, diverse audiences across over 17,500 screens in 1,350+ theaters, including major national chains - National CineMedia, Inc. (NCM) is the largest cinema advertising platform in the U.S.[9] - Connects brands to sought-after young, diverse audiences through movies and pop culture, offering a premium video, full-funnel marketing solution[9] - NCM's Noovie® Show is presented exclusively in 42 leading national and regional theater circuits, including AMC, Cinemark, and Regal, across more than 17,500 screens in over 1,350 theaters in 184 Designated Market Areas®[9] Forward-Looking Statements This section contains cautionary statements regarding forward-looking information, highlighting various risks and uncertainties that could cause actual results to differ materially from expectations, such as theater attendance, film availability, competition, economic conditions, and regulatory changes - This press release contains forward-looking statements reflecting management's current expectations or beliefs regarding future events, including anticipated future financial performance[10] - Investors are cautioned that reliance on these statements involves risks and uncertainties, and actual results could differ materially due to factors like theater attendance, film availability, competition, economic conditions, and regulatory changes[10] - The Company undertakes no obligation to update any forward-looking statement, except as required by law[11] Investor and Media Contacts Provides contact information for investor relations and media inquiries Investor and Media Contacts | Role | Contact Person | Email | | :---------- | :------------- | :------------ | | INVESTOR | Chan Park | investors@ncm.com | | MEDIA | Doug Serton | press@ncm.com |