National CineMedia(NCMI) - 2020 Q4 - Earnings Call Presentation

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]