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National CineMedia, Inc. Reports Results for Fiscal Fourth Quarter and Full Year 2021
First quarter of positive Adj. OIBDA since 1Q 2020 CENTENNIAL, Colo.--(BUSINESS WIRE)-- National CineMedia, Inc. (NASDAQ: NCMI) (the Company), the managing
About this update from National Cinemedia, Inc.
[{"type":"text","content":"\nFirst quarter of positive Adj. OIBDA since 1Q 2020\n\n CENTENNIAL, Colo.--(BUSINESS WIRE)--\nNational CineMedia, Inc. (NASDAQ: NCMI) (the Company), the managing member and owner of 48.3% of National CineMedia, LLC (NCM LLC), the operator of the largest cinema advertising network reaching movie audiences in the U.S., announced today consolidated results for the fiscal fourth quarter and year ended December 30, 2021.\n\nCOVID-19 Pandemic and Related Liquidity Measures\n\nBy the third quarter of 2021, all of the theaters within the NCM LLC’s network were open and multiple successful major motion pictures were released during the second half of 2021 resulting in the highest theater attendance since the start of the COVID-19 pandemic. The movie slate for 2022 remains packed due to the addition of major motion pictures that have been delayed; however, variants of the COVID-19 virus, including Delta and Omicron, continue to circulate through the United States, and may lead to increased health and safety regulations and restrictions or impact consumer behavior.\n\nDespite the increase in network attendance, in-theater advertising revenue for 2021 remained below historical levels. Given these lower revenue levels and future market uncertainties, the Company continued to manage its liquidity position through various cost-control measures. Since the beginning of the COVID-19 pandemic, NCM LLC has significantly reduced payroll related costs through a combination of temporary furloughs, permanent layoffs and salary reductions. In total, as of today, NCM LLC’s headcount has been reduced by over 40% as compared to headcount levels prior to the COVID-19 pandemic.\n\nNCM LLC’s cash balance as of December 30, 2021 was $58.6 million. Including the $43.9 million at NCM, Inc. the Company had $102.5 million of cash, cash equivalents and investments as of December 30, 2021. As of January 5, 2022, upon the closing of the Company's previously disclosed new $50.0 million revolving debt facility, the Company had $143.1 million ($99.7 million at NCM LLC) of cash on hand. This resulted in a ratings upgrade from S&P. Much of NCM LLC's non-employee related operating cost structure is variable based on the level of advertising revenue and theater attendance. Costs such as theater access fees, network affiliate payments and platinum spot revenue share payment...