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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/23/2018
Entire Document
 

Comparison of Years Ended December 31, 2017 and December 31, 2016

Revenues. Total revenues increased $72.8 million to $2,991.6 million for 2017 from $2,918.8 million for 2016, representing a 2.5% 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant Currency (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

2016

 

 

% Change

 

 

2017

 

 

2016

 

 

% Change

 

 

2017

 

 

% Change

 

 

2017

 

 

2016

 

 

% Change

 

Admissions revenues (1)

 

$

1,356.9

 

 

$

1,379.0

 

 

 

(1.6

)%

 

$

438.1

 

 

$

410.2

 

 

 

6.8

%

 

$

426.7

 

 

 

4.0

%

 

$

1,795.0

 

 

$

1,789.2

 

 

 

0.3

%

Concession revenues (1)

 

$

790.1

 

 

$

764.6

 

 

 

3.3

%

 

$

248.7

 

 

$

225.5

 

 

 

10.3

%

 

$

243.4

 

 

 

7.9

%

 

$

1,038.8

 

 

$

990.1

 

 

 

4.9

%

Other revenues (1)(2)

 

$

75.1

 

 

$

73.6

 

 

 

2.0

%

 

$

82.7

 

 

$

65.9

 

 

 

25.5

%

 

$

81.5

 

 

 

23.7

%

 

$

157.8

 

 

$

139.5

 

 

 

13.1

%

Total revenues (1)(2)

 

$

2,222.1

 

 

$

2,217.2

 

 

 

0.2

%

 

$

769.5

 

 

$

701.6

 

 

 

9.7

%

 

$

751.6

 

 

 

7.1

%

 

$

2,991.6

 

 

$

2,918.8

 

 

 

2.5

%

Attendance (1)

 

 

174.4

 

 

 

182.6

 

 

 

(4.5

)%

 

 

102.6

 

 

 

104.6

 

 

 

(1.9

)%

 

 

 

 

 

 

 

 

 

 

277.0

 

 

 

287.2

 

 

 

(3.6

)%

Average ticket price (1)

 

$

7.78

 

 

$

7.55

 

 

 

3.0

%

 

$

4.27

 

 

$

3.92

 

 

 

8.9

%

 

$

4.16

 

 

 

6.1

%

 

$

6.48

 

 

$

6.23

 

 

 

4.0

%

Concession revenues per patron (1)

 

$

4.53

 

 

$

4.19

 

 

 

8.1

%

 

$

2.42

 

 

$

2.16

 

 

 

12.0

%

 

$

2.37

 

 

 

9.7

%

 

$

3.75

 

 

$

3.45

 

 

 

8.7

%

 

(1)

Revenue and attendance amounts in millions. Average ticket price is calculated as admissions revenues divided by attendance. Concession revenues per patron is calculated as concession revenues divided by attendance.

(2)

U.S. operating segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 18 of our consolidated financial statements.

(3)

Constant currency revenue amounts, which are non-GAAP measurements, were calculated using the average exchange rates for the corresponding months for 2016. 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 $22.1 million primarily due to a 4.5% decrease in attendance, partially offset by a 3.0% increase in average ticket price. Concession revenues increased $25.5 million primarily due to an 8.1% increase in concession revenues per patron, partially offset by the 4.5% decrease in attendance. The decrease in attendance was due to a slate of films in 2017 that had weaker consumer appeal compared to 2016, partially offset by the favorable impact of luxury lounger conversions and new theatres. The increase in average ticket price was primarily due to price increases. The increase in concession revenues per patron was primarily due to incremental sales, expanded offerings, price increases and new theatres.    

International. Admissions revenues increased $27.9 million as reported, primarily due to an 8.9% increase in average ticket price, partially offset by a 1.9% decrease in attendance. Admissions revenues increased $16.5 million in constant currency, primarily due to a 6.1% increase in constant currency average ticket price, partially offset by the 1.9% decrease in attendance. Concession revenues increased $23.2 million as reported, primarily due to a 12.0% increase in concession revenues per patron, partially offset by the 1.9% decrease in attendance.  Concession revenues increased $17.9 million in constant currency, primarily due to a 9.7% increase in constant currency concession revenues per patron, partially offset by the 1.9% decrease in attendance. The decrease in attendance was due to a slate of films in 2017 that had weaker consumer appeal compared to 2016, partially offset by the impact of new theatres. Average ticket price and concession revenues per patron increased primarily due to price increases, which were predominantly driven by local inflation. Other revenues increased primarily due to increased promotional income and incremental screen advertising revenues generated by an expansion of our Flix Media services to affiliates in various countries.

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