CNK 8-K
Cinemark Holdings, Inc. (CNK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
|
|
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 2, 2025, we announced our financial results for the quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On May 2, 2025, we announced our financial results for the quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
|
Exhibit Description |
|
|
|
99.1 |
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The information furnished pursuant to Items 2.02 and 7.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed to be incorporated by reference into any of our filings with the SEC under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing, and shall not be deemed to be “filed” with the SEC under the Securities Exchange Act of 1934, as amended.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
CINEMARK HOLDINGS, INC. |
||
|
|
|
|
Date: May 2, 2025 |
By: |
|
/s/ Michael D. Cavalier |
|
Name: |
|
Michael D. Cavalier |
|
Title: |
|
Executive Vice President - General Counsel |
Exhibit 99.1
CINEMARK HOLDINGS, INC. REPORTS FIRST QUARTER 2025 RESULTS
Cinemark delivered Total Revenue of $541 million, Net Loss of $(39) million,
and Adjusted EBITDA of $36 million, with a 6.7% Adjusted EBITDA Margin
North American industry box office momentum accelerated in April,
nearly doubling year-over-year, leading into a blockbuster summer film slate
Plano, TX, May 2, 2025 – Cinemark Holdings, Inc. (NYSE: CNK), one of the largest and most influential theatrical exhibition companies in the world, today reported results for the three months ended March 31, 2025.
“Cinemark once again delivered outsized box office results in the first quarter, surpassing industry benchmarks both domestically and internationally, despite a suppressed box office environment that was impacted by lingering effects of the 2023 Hollywood strikes,” stated Sean Gamble, Cinemark’s President and CEO. “We continue to expect a favorable rebound in our industry's recovery trajectory this year, and the second quarter is already pacing well ahead of 2024's box office results, showcasing the strong, sustained enthusiasm consumers have for experiencing a diverse range of compelling, well-marketed films in theaters.”
Mr. Gamble continued, “As we look ahead, we remain highly encouraged about the future direction of our industry and company based on resilient consumer trends, a continued resurgence of wide release volume, Cinemark’s advantaged financial and competitive positions, and meaningful opportunities we have to generate incremental value creation through our ongoing strategic initiatives. Considering the health of our company and our positive outlook, we paid our first dividend since the pandemic during the quarter and executed $200 million of share repurchases. This marks our first-ever stock buyback program and has put us out in front of managing potential dilution related to our upcoming convertible notes settlement.”
Q1 2025 Earnings Highlights
1
Financial Results
Cinemark Holdings, Inc.’s total revenue for the three months ended March 31, 2025 decreased 6.6% to $540.7 million compared with $579.2 million for the three months ended March 31, 2024. For the three months ended March 31, 2025, admissions revenue decreased 8.9% to $264.1 million while concession revenue decreased 6.2% to $210.4 million, with a 7.8% decrease in attendance to 36.6 million patrons. Worldwide average ticket price was $7.22 and concession revenue per patron was $5.75.
Net loss attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2025 was $(38.9) million compared with net income of $24.8 million for the three months ended March 31, 2024. Diluted loss per share for the three months ended March 31, 2025 was $(0.32) compared with diluted earnings per share of $0.19 for the three months ended March 31, 2024.
Adjusted EBITDA for the three months ended March 31, 2025 was $36.4 million compared with $70.7 million for the three months ended March 31, 2024. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at https://ir.cinemark.com.
Webcast – Today at 8:30 AM ET
Live Webcast/Replay: Available at https://ir.cinemark.com. A replay will be available following the call and archived for a limited time.
About Cinemark Holdings, Inc.
Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theater companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, as of March 31, 2025 operated 497 theaters with 5,644 screens in 42 states domestically and 13 countries throughout South and Central America. Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD - the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://ir.cinemark.com.
Investor Relations Contact:
Chanda Brashears – 972-665-1671 or [email protected]
Media Contact:
Julia McCartha – 972-665-1322 or [email protected]
2
Forward-looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management’s assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include:
You can identify forward-looking statements by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict. Such risks and uncertainties could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In evaluating forward-looking statements, you should carefully consider the risks and uncertainties described in the “Risk Factors” section or other sections in the Company's Annual Report on Form 10-K filed February 19, 2025. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
3
Cinemark Holdings, Inc.
Financial and Operating Summary
(unaudited, in millions, except per share amounts)
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Statement of (loss) income data: |
|
|
|
|
|
|
||
Revenue |
|
|
|
|
|
|
||
Admissions |
|
$ |
264.1 |
|
|
$ |
289.8 |
|
Concession |
|
|
210.4 |
|
|
|
224.2 |
|
Other |
|
|
66.2 |
|
|
|
65.2 |
|
Total revenue |
|
$ |
540.7 |
|
|
$ |
579.2 |
|
Cost of operations |
|
|
|
|
|
|
||
Film rentals and advertising |
|
|
141.4 |
|
|
|
154.3 |
|
Concession supplies |
|
|
44.3 |
|
|
|
44.0 |
|
Salaries and wages |
|
|
90.3 |
|
|
|
86.9 |
|
Facility lease expense |
|
|
78.3 |
|
|
|
77.3 |
|
Utilities and other |
|
|
105.7 |
|
|
|
100.4 |
|
General and administrative expenses |
|
|
54.5 |
|
|
|
48.9 |
|
Depreciation and amortization |
|
|
49.5 |
|
|
|
49.4 |
|
(Gain) loss on disposal of assets and other |
|
|
(4.1 |
) |
|
|
0.4 |
|
Total cost of operations |
|
|
559.9 |
|
|
|
561.6 |
|
Operating (loss) income |
|
|
(19.2 |
) |
|
|
17.6 |
|
Other income (expense) |
|
|
|
|
|
|
||
Interest expense |
|
|
(38.5 |
) |
|
|
(37.7 |
) |
Interest income |
|
|
12.0 |
|
|
|
13.6 |
|
Foreign currency exchange gain |
|
|
0.5 |
|
|
|
1.4 |
|
Interest expense - NCM |
|
|
(5.4 |
) |
|
|
(5.5 |
) |
Equity in income of affiliates |
|
|
0.9 |
|
|
|
3.8 |
|
Net (loss) gain on investment in NCMI |
|
|
(3.6 |
) |
|
|
4.4 |
|
Loss before income taxes |
|
|
(53.3 |
) |
|
|
(2.4 |
) |
Income tax benefit |
|
|
(14.7 |
) |
|
|
(27.7 |
) |
Net (loss) income |
|
$ |
(38.6 |
) |
|
$ |
25.3 |
|
Less: Net income attributable to noncontrolling interests |
|
|
0.3 |
|
|
|
0.5 |
|
Net (loss) income attributable to Cinemark Holdings, Inc. |
|
$ |
(38.9 |
) |
|
$ |
24.8 |
|
Net (loss) income per share attributable to Cinemark Holdings, Inc.'s common stockholders |
|
|
|
|
|
|
||
Basic |
|
$ |
(0.32 |
) |
|
$ |
0.20 |
|
Diluted |
|
$ |
(0.32 |
) |
|
$ |
0.19 |
|
Weighted average shares outstanding |
|
|
|
|
|
|
||
Basic |
|
|
119.4 |
|
|
|
119.5 |
|
Diluted |
|
|
119.4 |
|
|
|
152.4 |
|
4
Other Operating Data
(unaudited, in millions)
|
|
As of |
|
|||||
|
|
March 31, 2025 |
|
|
December 31, 2024 |
|
||
Balance sheet data: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
699.4 |
|
|
$ |
1,057.3 |
|
Theater properties and equipment, net |
|
$ |
1,122.6 |
|
|
$ |
1,145.1 |
|
Total assets |
|
$ |
4,682.2 |
|
|
$ |
5,067.0 |
|
Total long-term debt, net of unamortized debt issuance costs and original issue discount |
|
$ |
2,335.2 |
|
|
$ |
2,334.7 |
|
Total equity |
|
$ |
357.6 |
|
|
$ |
603.4 |
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash flows used for: |
|
|
|
|
|
|
||
Operating activities (1) |
|
$ |
(119.1 |
) |
|
$ |
(22.7 |
) |
Investing activities |
|
$ |
(15.3 |
) |
|
$ |
(23.3 |
) |
Financing activities |
|
$ |
(230.1 |
) |
|
$ |
(10.4 |
) |
|
|
Three Months Ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Reconciliation of free cash flow: |
|
|
|
|
|
|
||
Cash flows used for operating activities |
|
$ |
(119.1 |
) |
|
$ |
(22.7 |
) |
Less: capital expenditures |
|
|
22.1 |
|
|
|
23.5 |
|
Free cash flow |
|
$ |
(141.2 |
) |
|
$ |
(46.2 |
) |
Segment Information
(unaudited, in millions, except per patron data)
|
U.S. Reportable Segment |
|
|
International Reportable Segment |
|
|
Consolidated |
|
|||||||||||||||||||
|
Three Months Ended March 31, |
|
|
Three Months Ended March 31, |
|
|
Three Months Ended March 31, |
|
|||||||||||||||||||
Revenue and Attendance |
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
Constant |
|
|
2025 |
|
|
2024 |
|
|||||||
Admissions revenue |
$ |
207.6 |
|
|
$ |
231.8 |
|
|
$ |
56.5 |
|
|
$ |
58.0 |
|
|
$ |
65.1 |
|
|
$ |
264.1 |
|
|
$ |
289.8 |
|
Concession revenue |
|
164.4 |
|
|
|
178.6 |
|
|
|
46.0 |
|
|
|
45.6 |
|
|
|
52.2 |
|
|
|
210.4 |
|
|
|
224.2 |
|
Other revenue |
|
45.1 |
|
|
|
46.6 |
|
|
|
21.1 |
|
|
|
18.6 |
|
|
|
24.5 |
|
|
|
66.2 |
|
|
|
65.2 |
|
Total revenue |
$ |
417.1 |
|
|
$ |
457.0 |
|
|
$ |
123.6 |
|
|
$ |
122.2 |
|
|
$ |
141.8 |
|
|
$ |
540.7 |
|
|
$ |
579.2 |
|
Attendance |
|
20.6 |
|
|
|
23.6 |
|
|
|
16.0 |
|
|
|
16.1 |
|
|
|
|
|
|
36.6 |
|
|
|
39.7 |
|
|
Average ticket price |
$ |
10.08 |
|
|
$ |
9.82 |
|
|
$ |
3.53 |
|
|
$ |
3.60 |
|
|
$ |
4.07 |
|
|
$ |
7.22 |
|
|
$ |
7.30 |
|
Concession revenue per patron |
$ |
7.98 |
|
|
$ |
7.57 |
|
|
$ |
2.88 |
|
|
$ |
2.83 |
|
|
$ |
3.26 |
|
|
$ |
5.75 |
|
|
$ |
5.65 |
|
Cost of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Film rentals and advertising |
$ |
113.2 |
|
|
$ |
126.3 |
|
|
$ |
28.2 |
|
|
$ |
28.0 |
|
|
$ |
32.5 |
|
|
$ |
141.4 |
|
|
$ |
154.3 |
|
Concession supplies |
$ |
33.8 |
|
|
$ |
34.3 |
|
|
$ |
10.5 |
|
|
$ |
9.7 |
|
|
$ |
11.9 |
|
|
$ |
44.3 |
|
|
$ |
44.0 |
|
Salaries and wages |
$ |
74.6 |
|
|
$ |
72.5 |
|
|
$ |
15.7 |
|
|
$ |
14.4 |
|
|
$ |
17.9 |
|
|
$ |
90.3 |
|
|
$ |
86.9 |
|
Facility lease expense |
$ |
60.2 |
|
|
$ |
60.5 |
|
|
$ |
18.1 |
|
|
$ |
16.8 |
|
|
$ |
20.2 |
|
|
$ |
78.3 |
|
|
$ |
77.3 |
|
Utilities and other |
$ |
81.8 |
|
|
$ |
78.3 |
|
|
$ |
23.9 |
|
|
$ |
22.1 |
|
|
$ |
27.3 |
|
|
$ |
105.7 |
|
|
$ |
100.4 |
|
5
Other Segment Information
(unaudited, in millions)
|
|
Three Months Ended |
||
|
|
March 31, |
||
|
|
2025 |
|
2024 |
Adjusted EBITDA (1) |
|
|
|
|
U.S. |
|
$20.0 |
|
$49.1 |
International |
|
16.4 |
|
21.6 |
Total Adjusted EBITDA (1) |
|
$36.4 |
|
$70.7 |
|
|
|
|
|
Capital expenditures |
|
|
|
|
U.S. |
|
$16.9 |
|
$18.1 |
International |
|
5.2 |
|
5.4 |
Total capital expenditures |
|
$22.1 |
|
$23.5 |
Reconciliation of Adjusted EBITDA
(unaudited, in millions)
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Net (loss) income |
|
$ |
(38.6 |
) |
|
$ |
25.3 |
|
Add (deduct): |
|
|
|
|
|
|
||
Income tax benefit |
|
|
(14.7 |
) |
|
|
(27.7 |
) |
Interest expense (1) |
|
|
38.5 |
|
|
|
37.7 |
|
Other income, net (2) |
|
|
(4.4 |
) |
|
|
(17.7 |
) |
Cash distributions from equity investees (3) |
|
|
4.8 |
|
|
|
1.3 |
|
Depreciation and amortization |
|
|
49.5 |
|
|
|
49.4 |
|
(Gain) loss on disposal of assets and other |
|
|
(4.1 |
) |
|
|
0.4 |
|
Non-cash rent expense |
|
|
(2.8 |
) |
|
|
(4.4 |
) |
Share-based awards compensation expense (4) |
|
|
8.2 |
|
|
|
6.4 |
|
Adjusted EBITDA |
|
$ |
36.4 |
|
|
$ |
70.7 |
|
6