Core Investment Thesis - Cinemark Holdings, Inc. is positioned for significant upside due to improving fundamentals and a stronger film slate expected from 4Q 2025 through 2026, with a consensus implying a 40% upside over the next year [4] - The stock is currently trading at $27.38, with a potential share price in the mid-$40s within a year, suggesting a return potential of approximately 75% [1][5] Company Overview - Cinemark operates around 300 theaters in the U.S. and 200 in Latin America, holding a 15% market share in the U.S. and benefiting from exposure to higher-growth Latin American markets [2] - Concessions account for 40% of total revenue, highlighting the importance of in-theater spending [2] Financial Performance - The company experienced a significant decline in attendance during the pandemic, with U.S. attendance dropping from 176 million in 2019 to 35 million in 2020, recovering to 127 million in 2023 [2] - Cinemark has been focused on repairing its balance sheet post-pandemic, cutting its dividend and now reinstating it as leverage trends toward 3x by 2026 [3] Market Dynamics - The weak film slate has negatively impacted recent quarters, despite strong results in 2Q 2025 [3] - Key catalysts for growth include a stronger film slate in 4Q 2025, resolution of a convertible note maturing on August 15, 2025, and potential competitor asset sales or IPOs [5] Strategic Positioning - The company is well-positioned to pursue accretive acquisitions due to its improved balance sheet, especially in light of strategic activities in the sector, such as Cineworld exploring a sale [5] - The investment thesis for Cinemark shares similarities with The Marcus Corporation, emphasizing stronger fundamentals and near-term catalysts [6]

Company Overview - AMC Entertainment's CEO Adam Aron suffered a minor stroke but is recovering quickly and will continue to lead the company [1] - Aron experienced the stroke during a business trip in London and received immediate medical attention [1] - The company reports that Aron has shown no loss of cognitive function and is expected to make a full recovery [1] Financial Performance - AMC has not fully recovered from the COVID-19 pandemic, which resulted in a loss of $4.6 billion in 2020 [1] - Sales have improved gradually each year since the pandemic, but the company has yet to post a full-year profit [1] Market Trends - The rise of streaming video services has negatively impacted movie theaters, as more people choose to watch content at home [2] - AMC's stock experienced significant volatility, rising from around $11 to nearly $340 during the meme stock craze in June 2021, but has since collapsed to just above $2 as of August 2023 [2] Innovations and Initiatives - In 2021, AMC began accepting cryptocurrency for ticket and concession purchases and issued NFTs to ticket buyers and shareholders [3] - As of the third quarter ending September 30, 2025, AMC operates approximately 860 theaters and 9,600 screens globally [3]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 were $206 million, up 17% compared to the prior year quarter, with operating income increasing to $13 million, a rise of $10.8 million year-over-year [6] - Consolidated adjusted EBITDA for Q2 was $32.3 million, reflecting a nearly 47% increase over the previous year [6] - Net earnings for the quarter were $7.3 million, or $0.23 per share, compared to a net loss of $5.2 million, or $0.17 per share, in the prior year [6] Business Line Data and Key Metrics Changes Theater Division - Total revenue for the theater division in Q2 2025 was $131.7 million, a nearly 30% increase compared to the prior year [7] - Comparable theater admission revenue increased by 29.3%, and attendance rose by 26.7% year-over-year [8] - Adjusted EBITDA for the theater division was $26.5 million, a 76% increase from the prior year [12] Hotels and Resorts Division - Total revenues before cost reimbursements were $64.6 million, a 1.2% increase compared to the prior year [13] - RevPAR for comparable owned hotels decreased by 2.9%, with an average occupancy rate of 67.3% [13][14] - Adjusted EBITDA for the hotels division decreased by $200,000 compared to the prior year, impacted by changes in revenue mix [17] Market Data and Key Metrics Changes - U.S. box office receipts increased by 36.5% during Q2 2025 compared to the same period last year, indicating that the company's admissions revenue performance trailed the industry by approximately seven percentage points [9] - Comparable competitive hotels in the market experienced RevPAR growth of 2.9%, indicating that the company's hotels underperformed the competitive set by 5.8 percentage points [15] Company Strategy and Development Direction - The company is focused on driving long-term attendance and total revenue, with strategies to optimize pricing and promotional programs to encourage repeat moviegoing [24] - The company plans to continue capital expenditures for fiscal 2025 between $70 million and $85 million, with a significant portion allocated to renovations [18][32] - The company is looking for opportunities to deploy capital for growth while maintaining a strong balance sheet for potential investments [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong film slate and consumer demand, highlighting the resilience of the theatrical experience [19] - The hotel segment is expected to see improved performance as renovations are completed, with a stable outlook despite economic uncertainties [31] - Management noted that while there are challenges in the market, the company is prepared to react quickly to any signs of economic softening [31] Other Important Information - The company completed major renovations at the Hilton Milwaukee, with all guest rooms returned to service as of June [28] - The company is implementing pricing surcharges on select high-demand films, which are expected to benefit admission per cap growth going forward [10][42] Q&A Session Summary Question: Can you separate the group pace between the Milwaukee area and outside of Milwaukee? - Management indicated that group pace gains are partly due to renovated meeting spaces and that they are winning in the market for group events, but specific splits were not provided [36][38] Question: What size of surcharge is being implemented for blockbuster films? - Management mentioned that the Everyday Matinee program is moving from $7 to $7.50, with certain films priced at $8.50, indicating a cautious approach to pricing while focusing on driving attendance [41][42] Question: What are the preliminary thoughts for the domestic box office going into the second half? - Management acknowledged the challenges of tough comparisons but expressed optimism about upcoming films and the potential for a strong finish to the year [48][51] Question: How do you see the hotel segment performing in Q3? - Management highlighted strong performance in banquet and catering, stable group bookings, and the expectation of improved operational performance as the impact of renovations diminishes [52][54] Question: What is the outlook for capital expenditures moving forward? - Management indicated a significant step down in capital expenditures is expected as the heavy reinvestment cycle concludes, with ongoing smaller projects across the portfolio [62]