Interesting to see how much growth took place at the exhibition chain’s U.S. venues as opposed to Latin America, which is supposed to be its most attractive opportunity. Overall, Cinemark generated net income in Q3 of $80.7M, +68.9% vs the period last year, on revenues of $757.6, +19.6%. Analysts anticipated lower revenue, about $733.2M. And earnings at 69 cents a share soared past forecasts for 55 cents. Much of that is due to what Cinemark says was its all-time high attendance: +16.4% to 81.0M globally, with domestic +23% to 50.6M and international +6.8% to 30.4M. Admission revenues were +19.2% to $479.6M helped by a 3.7% increase in the average outlay for a domestic ticket, to $6.68 — although the average price dropped 3.1% at international venues to $4.66. Concession revenues were +21.1% to $242.3M with the average domestic patron spending $3.38 (+2.7%) and international spending $2.34 (+3.5%). CEO Tim Warner credits North America’s “robust box office in the third quarter with an increase of 6.4%, fueled by a record summer box office.” The company’s worldwide operations “have now outperformed the North American industry in 17 of the past 18 consecutive quarters on a currency adjusted basis.”
Wall Street may have expected a little too much of the exhibition chain for the last three months of 2012. It reports net income of $27.8M, +52.3% vs the end of 2011, on revenues of $611.5M, +14.1%. Pretty good, right? But analysts expected revenues to come in higher, at $616.7M. And a pre-tax loss of $5.6M for early debt retirement held earnings to 24 cents a share, shy of forecasts for 38 cents. Attendance at the U.S. theaters was up 10.3% to 40.6M, while the average ticket price rose 5.2% to $6.91, and concessions revenues per patron was up 4% to $3.39. That propelled U.S. revenues 15.5% to $435.4M. Sales at the international theaters was up 10.8% to $178.8M. CEO Tim Warner notes that Cinemark “continues to be the number one attended worldwide exhibitor.” He told analysts that he’s “encouraged” about the releases scheduled for 2013 — including 32 wide-release 3D films. But the current quarter’s results may be “challenging” compared to the sales records set last February and March.
Cinemark looked like two different companies in the quarter that ended in September. The part with the U.S. theaters delivered blah results compared to last year, while the Latin American-focused international side was on fire. All together, the company reported net income of nearly $48M, +6.7% vs the period last year, on revenues of $633.6M, -1%. The revenue figure was ahead of the Street’s forecast for $626.8M. Earnings per share, at 41 cents, also beat projections for 35 cents. “Not only is the international box office growing faster than domestic revenues, but there are stronger socio-economic trends in those regions along with significantly better new theater growth opportunities,” says B. Riley & Co analyst Eric Wold. The U.S. theaters ended up with revenues of $416.2M, -5.7%. Attendance was down 7.4% to 41.1M. The average ticket price fell three cents to $6.44 but the average concession spending per patron was up 16 cents to $3.29. In contrast, Cinemark’s overseas revenues were up 9.4% to $220.6M. Attendance rose nearly 14% to 28.5M, outweighing the 39 cent drop in the average ticket price to $4.81. Concession prices per patron abroad were up three cents to $2.26. “As our results consistently demonstrate, Cinemark has designed a company with a strong and stable domestic base, which supports our substantial quarterly dividend, accompanied by our international circuit, which represents a long-running growth engine and differentiates us from all of our industry peers worldwide,” CEO Tim Warner …
The chain that owns the Aurora, Colorado theater where 12 people were murdered last month just filed a dry financial statement and press release this morning without the usual comments from the CEO about the company and its agenda. And the numbers are solid, following the industry pattern of lower attendance offset by higher consumer outlays. In Q2 Cinemark generated $52.1M in net income, +27.1% vs the same period last year, on revenues of $649.6M, +4.7%. The revenue figure is well ahead of the $630.8M that analysts expected. Earnings at 45 cents a share trumped forecasts for 37 cents. Domestic admissions fell 4.3% to 42M. But with ticket prices up 3% to an average of $6.84, revenues from admissions here just dropped 1.4% to $287.2M. The company says that the rise in ticket outlays is “primarily due to the increase in 3-D and premium content business and price increases”. Meanwhile the average patron in North America spent $3.38 on concessions, +6% vs last year. Total revenues from concessions rose 1.4% to $141.8M. Cinemark execs will brief analysts later this morning.
The Plano, Texas-based exhibition chain kept in step with the earnings season’s round of better-than-expected results. It generated $772,000 in net income, up 115% vs the same period last year, on revenues of $578.8M, up 6.8%. The revenue figure compared to analysts’ consensus forecast of $572M. And earnings, at 37 cents a share, beat predictions of 34 cents. Total attendance was up 14.5% to 61,548. Domestic theaters were up 19.3% to 39,830. But company watchers may be surprised at the increase in the average ticket price, which was +5% to $6.08 in all of Cinemark’s theaters and +4.7% to $6.70 in domestic ones. Concession spending per patron also was up — +7% to $2.92 across the board, and +5.1% to $3.30 in domestic venues. “This was an impressive quarter for our industry with North American box office increasing an estimated 23.5%,” Cinemark CEO Tim Warner says. “Cinemark’s US assets once again outperformed the industry.” The chain ended the period with 459 theaters and 5,181 screens — with plans to build 11 theaters with 107 screens in 2012.
UPDATE, 6:40 AM: CEO Alan Stock made his comment in a conference call with analysts who asked what he’d do if Sony continues with its plan to stop paying for 3D glasses — leaving it to exhibitors to manage the expense. ”We think the way the glasses model works in the U.S. is a great way to work it,” he said. He added that there’s still a lot of time to negotiate before next summer, when Sony wants the change to take place. “I’m pretty confident we can work out a solution,” Stock says. “If we can’t, we’ll have to head in a different direction.” Regarding Universal’s plan, which it canceled, to show Tower Heist on cable VOD just three weeks after opening in theaters, Stock says the studio “thought they had something the exhibitors would comply with.” After Cinemark threatened to boycott the film, “there hasn’t been any further discussion of that particular test, or anything else they’re working on.”
The movie theater chain says its debt-refinancing effort sliced $4.9M from 2Q earnings. As a result Cinemark reported net profits of $40.4M, up 1.8% vs the same period last year, on revenues of $620.6M, up 15.1%. Earnings at 35 cents a share were short of the consensus forecast of 39 cents — but the company beat the $593.6M revenue projection. Admissions revenues increased 15.0% to $405.9 million and concession revenues increased 14.6% to $189.3 million. Cinemark, which has a big presence in Latin America as well as the U.S., says that attendance was up 9.8% in the quarter despite an average 4.6% increase in ticket prices; domestically, tickets were up 2.6% to an average of $6.64. The average consumer also spent 4.4% more than last year on concessions. “This quarter Cinemark generated its highest-ever quarterly worldwide attendance and as a result we achieved our highest-ever quarterly adjusted EBITDA,” says Cinemark CEO Alan Stock. “This record performance extended our domestic industry box office out-performance streak to 11 straight quarters. Our international circuit continues to distinguish itself with attendance growth of approximately four times the U.S. industry rate for the quarter.”