Cinemark USA, Inc. Reports Intended Add-on to 9% Senior Subordinated Notes Due 2013.Entertainment Editors/Business Editors PLANO Plano (plā`nō), city (1990 pop. 128,713), Collin co., N Tex., less than 20 mi (32 km) NE of Dallas; inc. 1873. In a farm and livestock area on the blackland prairie, Plano is a booming financial and commercial center, with headquarters of many , Texas--(BUSINESS WIRE)--April 24, 2003 Cinemark USA, Inc., a Texas corporation (the "Company"), announced that it intends to issue, subject to market and other conditions, an additional amount of its 9% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes due 2013 by means of a private placement. The notes will be offered only to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. in reliance on Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. under the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and to non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. persons in reliance on Regulation S under the Securities Act. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering and additional borrowings under the Company's senior credit facility will be utilized to fund the purchase of up to $240 million aggregate principal amount of (i) its $200 million 9 5/8% Series B Senior Subordinated Notes due 2008 and (ii) its $75 million 9 5/8% Series D Senior Subordinated Notes due 2008 pursuant to an offer to purchase announced on April 18, 2003. This press release shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy these securities nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The following is certain information that will be disclosed by the Company in connection with the offering of the additional notes. The following table presents the Company's estimated unaudited results for the first quarter ended March 31, 2003 and historical unaudited results for the first quarter ended March 31, 2002:
(In thousands) First First
Quarter Quarter
Ended Ended
March 31, March 31,
2003 2002
--------- ---------
Consolidated :
Theatre revenues $204,002 $226,702
Operating Income 24,826 30,542
Adjusted EBITDA (1) 41,424 50,036
Cash and cash equivalents 42,649 59,438
Total long-term debt, including current portion 704,099 783,551
Restricted Group : (2)
Theatre revenues 171,595 180,290
Operating Income 22,238 26,226
Adjusted EBITDA (1) 35,852 40,850
Cash and cash equivalents 19,970 28,109
Total long-term debt, including current portion 688,797 679,165
Consolidated Revenues:
U.S. and Canada 157,593 169,061
Mexico 15,672 22,052
Brazil 15,075 19,328
Other foreign countries 16,152 16,547
Eliminations (490) (286)
--------- ---------
Total 204,002 226,702
========= =========
(1) Represents operating income before depreciation and amortization,
asset impairment loss, (gain) loss on sale of assets and other,
changes in deferred lease expense, accrued and unpaid compensation
expense relating to any stock option plans and other non-cash
expenditures. See reconciliation of Adjusted EBITDA in the chart
below. Adjusted EBITDA is a non-GAAP financial measure and should
not be construed as an alternative to net income or operating
income as an indicator of operating or financial performance (as
determined in accordance with GAAP). This financial information is
included to provide additional information that our management,
debt holders and investors use to assess the performance of the
Company. Adjusted EBITDA is the primary component used in
calculating financial covenants under the indentures under which
our senior subordinated notes have been issued. Adjusted EBITDA
may not be comparable to similarly titled measures reported by
other companies.
(2) The restrictive covenants in the indenture apply only to Cinemark
USA, Inc. and its restricted subsidiaries (the "Restricted
Group"). This data presents certain information with respect to
the Restricted Group only. See supplemental schedules to our
quarterly financial statements.
The following table presents our estimated unaudited
reconciliation of operating income to Adjusted EBITDA.
Consolidated Restricted Group
----------------- -----------------
First First First First
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
March March March March
31, 31, 31, 31,
2003 2002 2003 2002
-------- -------- -------- --------
Operating Income $24,826 $30,542 $22,238 $26,226
Add (deduct):
Depreciation and amortization 16,137 17,167 13,312 13,248
Asset impairment loss -- 558 -- --
(Gain) loss on sale of assets and
other (616) 539 (617) 324
Deferred lease expenses 803 953 645 775
Stock option compensation 274 277 274 277
-------- -------- -------- --------
Adjusted EBITDA $41,424 $50,036 $35,852 $40,850
======== ======== ======== ========
The Company's estimated unaudited revenue for the first quarter of 2003 reflects a softer box office performance during the quarter compared to the same quarter in 2002. Although North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. revenues for the Company decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6.8%, the Company's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues reflect unfavorable currency movements against the US dollar in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and softer worldwide box office performance. However, historical results are not necessarily indicative of future results. The amounts the Company reports as its actual quarterly results may differ from these estimates upon completion of review procedures of the results of the first quarter. Statements concerning the company's business expectations, intentions, plans and beliefs, together with other statements made in this press release that are not historical facts are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as that term is defined under the federal securities laws. All forward-looking statements are subject to the risks and uncertainties that could cause actual outcomes and results to differ materially from those expressed or suggested, including those described in the company's filings with the Securities and Exchange Commission. The Company intends that this press release be governed gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. by the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (the "PSLR PSLR Peak Sidelobe Ratio Act") with respect to statements that may be deemed to be forward-looking statements under the PSLR Act. Such forward-looking statements may include, but are not limited to, the Company and any of its subsidiaries' long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. theatre strategy. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors. |
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