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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 08/09/2016
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Table of Contents

Three months ended June 30, 2016 versus June 30, 2015

Revenues. Total revenues decreased $55.5 million to $744.4 million for the three months ended June 30, 2016 (“second quarter of 2016”) from $799.9 million for the three months ended June 30, 2015 (“second quarter of 2015”), representing a 6.9% decrease. The table below, presented by reportable operating segment, summarizes our revenue performance and certain key performance indicators that impact our revenues for the three months ended June 30, 2016 and 2015.

 

     U.S. Operating Segment     International Operating Segment     Consolidated  
                                             Constant
Currency(3)
                     
     2016      2015      %
Change
    2016      2015      %
Change
    2016      %
Change
    2016      2015      %
Change
 

Admissions revenues(1)

   $ 345.3       $ 375.6         (8.1 %)    $ 110.8       $ 127.3         (13.0 %)    $ 134.9         6.0   $ 456.1       $ 502.9         (9.3 %) 

Concession revenues(1)

   $ 193.8       $ 195.0         (0.6 %)    $ 59.8       $ 64.6         (7.4 %)    $ 72.2         11.8   $ 253.6       $ 259.6         (2.3 %) 

Other revenues(1)(2)

   $ 17.7       $ 17.8         (0.6 %)    $ 17.0       $ 19.6         (13.3 %)    $ 20.6         5.1   $ 34.7       $ 37.4         (7.2 %) 

Total revenues (1)(2)

   $ 556.8       $ 588.4         (5.4 %)    $ 187.6       $ 211.5         (11.3 %)    $ 227.7         7.7   $ 744.4       $ 799.9         (6.9 %) 

Attendance(1)

     45.5         49.0         (7.1 %)      27.5         27.7         (0.7 %)           73.0         76.7         (4.8 %) 

 

(1)  Amounts in millions.
(2)  U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 14 of our condensed consolidated financial statements.
(3)  Constant currency revenue amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2015. We translate the results of our international operating segment from local currencies into U.S. dollars using currency rates in effect at different points in time. Significant changes in foreign exchange rates from one period to the next can result in meaningful variations in reported results. We are providing constant currency amounts for our international operating segment to present a period-to-period comparison of business performance without the impact of foreign currency fluctuations.

 

    U.S. Admissions revenues decreased $30.3 million due to a 7.1% decrease in attendance and a 1.0% decrease in average ticket price from $7.67 for the second quarter of 2015 to $7.59 for the second quarter of 2016. The decrease in concession revenues of $1.2 million was attributable to the 7.1% decrease in attendance, partially offset by a 7.0% increase in concession revenues per patron from $3.98 for the second quarter of 2015 to $4.26 for the second quarter of 2016. The decrease in attendance was due to the all-time record setting performance of films released during the second quarter of 2015 compared to the second quarter of 2016. The decrease in average ticket price was primarily due to a content driven decrease in sales for premium concepts, such as 3-D and XD, and a higher concentration of matinee and child tickets from PG-rated family films, partially offset by price increases. The increase in concession revenues per patron was primarily due to incremental sales and price increases.

 

    International. Admissions revenues decreased $16.5 million as reported, but increased $7.6 million in constant currency. The constant currency increase is a result of a 6.7% increase in constant currency average ticket price from $4.60 for the second quarter of 2015 to $4.91 for the second quarter of 2016, partially offset by a 0.7% decrease in attendance. Concession revenues decreased $4.8 million as reported, but increased $7.6 million in constant currency. The constant currency increase is a result of a 12.9% increase in constant currency concession revenues per patron from $2.33 for the second quarter of 2015 to $2.63 for the second quarter of 2016, partially offset by the 0.7% decrease in attendance. The decrease in attendance was due to the all-time record setting performance of films released during the second quarter of 2015 compared to the second quarter of 2016, partially offset by new theatres. Average ticket price and concession revenues per patron increased primarily due to price increases, which was primarily due to local inflation.

 

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