Cinemark USA, Inc. Reports Results for First Quarter 2006.PLANO, Texas Plano (IPA: /ˈpleɪnoʊ/) is a wealthy suburb of Dallas, Texas, located to the north, mainly within Collin County, but also extending into Denton County. According to the 2000 U.S. -- Cinemark USA, Inc., one of the leaders in the motion picture exhibition industry, today reported results for the three months ended March 31, 2006. Cinemark USA, Inc.'s revenues for the three months ended March 31, 2006 increased 3.5% to $246.0 million from $237.7 million for the three months ended March 31, 2005. The increase was primarily related to a 5.7% increase in average ticket prices and a 10.0% increase in concession revenues per patron, partially offset by a 3.8% decrease in attendance. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the three months ended March 31, 2006 was $27.3 million compared with operating income of $29.2 million for the three months ended March 31, 2005. Earnings before interest, taxes, depreciation, amortization, and other non-cash expenditures ("Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") for the three months ended March 31, 2006 increased 1.3% to $49.7 million from $49.1 million for the three months ended March 31, 2006. The Company's Adjusted EBITDA margin was 20.2% for the three months ended March 31, 2006. Net income for the three months ended March 31, 2006 was $13.9 million compared to net income of $12.1 million for the three months ended March 31, 2005. Cinemark USA, Inc. continues to be a leader in the development of stadium seating multiplex See multiplexing. theatres. During the three months ended March 31, 2006, the Company opened five new theatres with a total of 49 screens. On March 31, 2006, the Company's aggregate screen count was 3,370, with screens in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , 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. , Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. , 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. , Chile, Ecuador Ecuador (ĕk`wədôr) [Span., = equator], officially Republic of Ecuador, republic (2005 est. pop. 13,364,000), 109,483 sq mi (283,561 sq km), W South America. , Peru, Honduras Honduras (hŏnd  r`əs, –dyr`–; Span., ōnd , El Salvador El Salvador (ĕl sälväthōr`), officially Republic of El Salvador, republic (2005 est. pop. 6,705,000), 8,260 sq mi (21,393 sq km), Central America. , Nicaragua Nicaragua (nĭkärä`gwä), officially Republic of Nicaragua, republic (2005 est. pop. 5,465,000), 49,579 sq mi (128,410 sq km), Central America. , Costa
Rica Costa Rica (kŏs`tə rē`kə), officially Republic of Costa Rica, republic (2005 est. pop. 4,016,000), 19,575 sq mi (50,700 sq km), Central America. , Panama and Colombia. As of March 31, 2006, the Company had signed
commitments to open 16 new theatres with 187 screens by the end of 2006
and open eight new theatres with 94 screens subsequent to 2006.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 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. 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. The Company, headquartered in Plano, TX, has a website at www.cinemark.com where customers can view showtimes and purchase tickets.
Cinemark USA, Inc.
Financial and Operating Summary
(unaudited, in thousands)
Three months ended
March 31,
--------------------------
2006 2005
------------ -------------
Statement of Income data:
Theatre revenues $245,989 $237,681
Film rentals and advertising 78,948 78,901
Concession supplies 12,040 11,745
Facility lease expense 35,827 32,891
Other theatre operating expenses 56,647 53,462
General and administrative expenses 14,046 12,295
Depreciation, amortization and impairment
of long-lived assets 20,445 18,480
Loss on sale of assets and other 728 688
------------ -------------
Total costs and expenses 218,681 208,462
------------ -------------
Operating Income 27,308 29,219
Interest expense (1) 12,529 11,267
Other income (493) (742)
------------ -------------
Income before income taxes 15,272 18,694
Income taxes 1,340 6,641
------------ -------------
Net income $13,932 $12,053
============ =============
Other Financial Data:
Adjusted EBITDA (4) $49,730 $49,092
Adjusted EBITDA margin 20.2% 20.7%
Other Operating Data:
Domestic Attendance (patrons) 24,639 24,932
International Attendance (patrons) 13,869 15,093
------------ -------------
Worldwide Attendance (patrons) 38,508 40,025
============ =============
As of As of
March 31, December 31,
2006 2005
------------ -------------
Balance Sheet Data:
Cash and cash equivalents $150,272 $182,180
Theatre properties and equipment, net 795,740 790,566
Total assets 1,073,380 1,097,740
Long-term debt, including current portion 617,900 620,277
Shareholder's equity 272,082 251,172
Reconciliation of Adjusted EBITDA
(unaudited in thousands)
Three months ended
March 31,
--------------------
2006 2005
----------- --------
Net income $13,932 $12,053
Income taxes 1,340 6,641
Interest expense (1) 12,529 11,267
Other income (493) (742)
----------- --------
Operating income 27,308 29,219
Add: Depreciation, amortization and impairment
of long-lived assets 20,445 18,480
Add: Loss on sale of assets and other 728 688
Add: Stock option compensation expense (2) 716 -
Add: Deferred lease expenses (3) 533 705
----------- --------
Adjusted EBITDA (4) $49,730 $49,092
=========== ========
(1) Includes amortization of debt issue costs and excludes capitalized
interest.
(2) Non-cash expense included in general and administrative expenses.
(3) Non-cash expense included in facility lease expense.
(4) Adjusted EBITDA as calculated in the chart above represents net
income before income taxes, interest expense, other income,
depreciation, amortization and impairment of long-lived assets,
loss on sale of assets and other, stock option compensation
expense and changes in deferred lease expense. Adjusted EBITDA is
a non-GAAP financial measure commonly used in our industry and
should not be construed as an alternative to net income or
operating income as an indicator of operating performance or as an
alternative to cash flow provided by operating activities as a
measure of liquidity (as determined in accordance with GAAP).
Adjusted EBITDA may not be comparable to similarly titled measures
reported by other companies. The calculation of Adjusted EBITDA is
consistent with the definition of EBITDA in our senior
subordinated notes indentures. We have included Adjusted EBITDA
because we believe it provides management and investors with
additional information to measure our performance and liquidity,
estimate our value and evaluate our ability to service debt. In
addition, we use Adjusted EBITDA for incentive compensation
purposes.
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