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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 11/05/2015
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Table of Contents

Three months ended September 30, 2015 versus September 30, 2014

Revenues. Total revenues increased $53.2 million to $700.1 million for the three months ended September 30, 2015 (“third quarter of 2015”) from $646.9 million for the three months ended September 30, 2014 (“third quarter of 2014”), representing an 8.2% increase. The table below, presented by reportable operating segment, summarizes our year-over-year revenue performance and certain key performance indicators that impact our revenues.

 

     U.S. Operating Segment     International Operating Segment     Consolidated  
     Three Months Ended
September 30,
    Three Months Ended
September 30,
    Three Months Ended
September 30,
 
                   %                   %                   %  
     2015      2014      Change     2015      2014      Change     2015      2014      Change  

Admissions revenues(1)

   $ 318.6       $ 290.5         9.7   $ 113.6       $ 112.4         1.1   $ 432.2       $ 402.9         7.3

Concession revenues(1)

   $ 168.5       $ 155.3         8.5   $ 61.7       $ 55.8         10.6   $ 230.2       $ 211.1         9.0

Other revenues(1)(2)

   $ 18.5       $ 14.7         25.9   $ 19.2       $ 18.2         5.5   $ 37.7       $ 32.9         14.6

Total revenues (1)(2)

   $ 505.6       $ 460.5         9.8   $ 194.5       $ 186.4         4.3   $ 700.1       $ 646.9         8.2

Attendance(1)

     43.8         42.8         2.3     27.2         23.4         16.2     71.0         66.2         7.3

 

(1)  Amounts in millions.
(2)  U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 15 of our condensed consolidated financial statements.

 

  U.S. Admissions revenues increased $28.1 million due to a 2.3% increase in attendance and a 7.1% increase in average ticket price from $6.79 for the third quarter of 2014 to $7.27 for the third quarter of 2015. The increase in attendance was due to the solid slate of films released during the third quarter of 2015 and new theatres. The increase in average ticket price was primarily due to price increases and ticket type mix. Concession revenues increased $13.2 million due to a 6.1% increase in concession revenues per patron, from $3.63 for the third quarter of 2014 to $3.85 for the third quarter of 2015, and the 2.3% increase in attendance. The increase in concession revenues per patron was primarily due to incremental sales and price increases. Other revenues increased primarily due to increases in screen advertising revenues.

 

  International. Admissions revenues increased due to a 16.2% increase in attendance, partially offset by a 12.9% decrease in average ticket price from $4.80 for the third quarter of 2014 to $4.18 for the third quarter of 2015. Concession revenues increased $5.9 million due to the 16.2% increase in attendance, partially offset by a 4.6% decrease in concession revenues per patron from $2.38 for the third quarter of 2014 to $2.27 for the third quarter of 2015. The increase in attendance was due to the solid slate of films released during the third quarter of 2015 and new theatres. The decrease in average ticket price and concession revenues per patron was due to the unfavorable impact of foreign currency exchange rates in certain countries in which we operate, partially offset by price increases.

Cost of Operations. The table below summarizes certain of our year-over-year theatre operating costs by reportable operating segment (in millions).

 

     U.S. Operating Segment      International Operating
Segment
     Consolidated  
     Three Months Ended
September 30,
     Three Months Ended
September 30,
     Three Months Ended
September 30,
 
     2015      2014      2015      2014      2015      2014  

Film rentals and advertising

   $ 180.1       $ 161.1       $ 56.3       $ 54.4       $ 236.4       $ 215.5   

Concession supplies

     22.9         20.9         13.1         12.6         36.0         33.5   

Salaries and wages

     57.1         49.3         19.5         18.6         76.6         67.9   

Facility lease expense

     59.8         58.4         20.8         22.2         80.6         80.6   

Utilities and other

     59.1         55.8         25.5         23.7         84.6         79.5   

 

  U.S. Film rentals and advertising costs were $180.1 million, or 56.5% of admissions revenues, for the third quarter of 2015 compared to $161.1 million, or 55.5% of admissions revenues, for the third quarter of 2014. The increase in the film rentals and advertising rate was primarily due to the solid slate of films released during the third quarter of 2015, as generally films that generate higher box office receipts have higher film rental rates, and increased film presentation costs. Concession supplies expense was $22.9 million, or 13.6% of concession revenues, for the third quarter of 2015 compared to $20.9 million, or 13.5% of concession revenues, for the third quarter of 2014.

 

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