Cinemark(US:CNK)2024-02-16 17:25Financial Data and Key Metrics Changes - In 2023, the company entertained 210 million guests globally and generated $3.1 billion in revenue, a 25% increase year-over-year, with the highest concession sales recorded, 3% higher than 2019 [27][28] - Adjusted EBITDA grew 77% from 2022 to $594 million, with a margin rate of 19.4%, representing a 570 basis points margin expansion [28] - Free cash flow for the year was $295 million, with a positive net cash generation of $175 million after paying down over $100 million of COVID-related debt [29][107] Business Line Data and Key Metrics Changes - Domestic segment revenue grew 7% year-over-year to $518.8 million, with adjusted EBITDA increasing 15% to $68.5 million [18] - International segment revenue increased 5% to $120.1 million, with adjusted EBITDA of $11.1 million, yielding a 9.2% adjusted EBITDA margin [45] Market Data and Key Metrics Changes - North American box office grew 21% year-over-year, reaching $9.1 billion in 2023, driven by diverse studio hits [7][34] - Film volume grew to 110 wide releases, reaching 85% of pre-pandemic levels, up from 65% in 2022 [8] Company Strategy and Development Direction - The company is focusing on enhancing guest experiences through premium amenities and optimizing its circuit, including the addition of new theaters and the closure of low-performing ones [3][4][5] - The company reactivated its new build development pipeline and plans to open two new family entertainment center concepts by the end of 2023 [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the industry and the company, despite anticipated headwinds in 2024 due to reduced film volume from Hollywood strikes [10][86] - The company remains focused on strengthening its financial position while investing in long-term growth opportunities [107] Other Important Information - The company achieved a record high average ticket price of $10.21 in Q4 2023, driven by strategic pricing initiatives and successful film releases [15] - The company reported a net loss of $18 million in Q4 2023, resulting in a diluted loss per share of $0.15, while for the full year, net income was $188.2 million with diluted earnings per share of $1.34 [53] Q&A Session Summary Question: Expectations on average ticket prices or per cap levels in the coming year - Management expects moderate growth in food and beverage per caps year-over-year, driven by initiatives to maximize food and beverage incidents [61][63] Question: Clarification on the 95 film expectation for 2024 - Management anticipates about 90 titles currently, assuming an additional five films will be added, but acknowledges potential impacts from Hollywood strikes [65][66] Question: Timing for reinstating the dividend - Management indicated that reinstating the dividend is a key consideration, but timing depends on sustaining the net leverage ratio within the target range [67][117] Question: Impact of Taylor Swift concert film on average ticket price and concessions per cap - The concert film positively impacted average ticket price by $0.50 and concession per cap by $0.14 in Q4 2023 [94][95] Question: Relationship with streamers and new working models - Management is focused on developing mutually beneficial working models with streamers, similar to traditional studio partnerships [73][124]