Cinemark Holdings, Inc. Reports First Quarter 2024 Results

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, 2024.

"2024 North American industry box office has kicked off better than expected, declining only modestly versus 2023 despite last year's strike-induced headwinds. Outsized results across a wide array of diverse films provide further validation that consumer enthusiasm for experiencing compelling content in an elevated, cinematic, theatrical setting remains robust," stated Sean Gamble, Cinemark's President and CEO.

"During the quarter, our sensational team once again demonstrated their skillful ability to navigate a dynamic operating environment, delivering results that outpaced the market. As we look ahead, encouraging indicators pertaining to consumer moviegoing patterns, film volume recovery, and strength of content appeal continue to provide a positive long-term outlook for our industry. Moreover, we believe Cinemark is uniquely positioned to thrive on account of our advantaged competitive strengths and numerous levers to drive value creation."

Q1 2024 Earnings Highlights

• Entertained 40 million moviegoers across our global footprint.
• Delivered domestic box office results that surpassed North American industry recovery relative to Q1 2019 by more than 700 basis points; international admissions outpaced our corresponding Latin American industry recovery by approximately 600 basis points.
• Sustained market share growth versus FY 2019 of more than 100 basis points in the U.S. and Latin America; continued to maintain the most significant market share gains compared to pre-pandemic results of all major exhibitors.
• Reported $579 million of total revenue and $25 million of net income with diluted earnings per share of $0.19.
• Generated Adjusted EBITDA of $71 million with a healthy 12.2% Adjusted EBITDA margin, demonstrating skillful navigation in a dynamic operating environment impacted by strike-induced headwinds.
• Maintained a healthy balance sheet with cash balance of $789 million at quarter-end; executed on capital allocation strategy to refortify the balance sheet by successfully redeeming the remaining $150 million of our COVID-related 8.75% senior secured notes on May 1, 2024, in advance of their maturity in May 2025, underscoring our positive long-term outlook for our company and our industry.

Financial Results

Cinemark Holdings, Inc.'s total revenue for the three months ended March 31, 2024 decreased 5.2% to $579.2 million compared with $610.7 million for the three months ended March 31, 2023. For the three months ended March 31, 2024, admissions revenue decreased 6.8% to $289.8 million and concession revenue decreased 4.9% to $224.2 million, driven by a 7.5% decrease in attendance to 39.7 million patrons. Worldwide average ticket price was $7.30 and concession revenue per patron was $5.65.

Net income attributable to Cinemark Holdings, Inc. for the three months ended March 31, 2024 was $24.8 million compared with a loss of $(3.1) million for the three months ended March 31, 2023. Diluted earnings per share for the three months ended March 31, 2024 was $0.19 compared with a diluted loss per share of $(0.03) for the three months ended March 31, 2023. Net income for the three months ended March 31, 2024 included a $27.7 million tax benefit primarily related to the release of valuation allowances.

Adjusted EBITDA for the three months ended March 31, 2024 was $70.7 million compared with $86.2 million for the three months ended March 31, 2023. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at https://ir.cinemark.com.

As of March 31, 2024, the Company's aggregate screen count was 5,708, and the Company had commitments to open 3 new theatres and 33 screens over the next two years.

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 theatre companies in the world. Cinemark's circuit, comprised of various brands that also include Century, Tinseltown and Rave, as of March 31, 2024 operated 502 theatres with 5,708 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.

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:

• future revenue, expenses and profitability;
• currency exchange rate and inflationary impacts;
• the future development and expected growth of our business;
• projected capital expenditures;
• access to capital resources;
• attendance at movies generally or in any of the markets in which we operate;
• the number and diversity of popular movies released, the length of exclusive theatrical release windows, and our ability to successfully license and exhibit popular films;
• national and international growth in our industry;
• competition from other exhibitors, alternative forms of entertainment and content delivery via streaming and other formats;
• determinations in lawsuits in which we are a party; and
• the ongoing recovery of our business and the motion picture exhibition industry from the effects of the COVID-19 pandemic and the 2023 writers' and actors' guilds strikes.

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 16, 2024. 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.