Business
National CineMedia, Inc. Reports Results for Fiscal Second Quarter 2020
Announced Quarterly Cash Dividend of $0.07 per Share CENTENNIAL, Colo.--(BUSINESS WIRE)-- National CineMedia, Inc. (NASDAQ: NCMI) (the Company), the managing
About this update from National Cinemedia, Inc.
[{"type":"text","content":"\nAnnounced Quarterly Cash Dividend of $0.07 per Share\n\n CENTENNIAL, Colo.--(BUSINESS WIRE)--\nNational CineMedia, Inc. (NASDAQ: NCMI) (the Company), the managing member and owner of 48.0% 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 second quarter and six months ended June 25, 2020.\n\n\nCOVID-19 Pandemic and Related Liquidity Measures\n\n\nBeginning in mid-March 2020, all of the theater circuits in the Company's network temporarily closed their theaters in response to government mandated closures to address the COVID-19 pandemic. Almost all of these closures continued throughout the entirety of the Company’s second quarter of 2020 and remain closed as of the date of this press release. Due to these closures, the Company was unable to advertise in the theaters and did not generate any in-theater revenue during the three months ended June 25, 2020. NCM LLC’s theater access fees, network affiliate payments and Platinum Spot revenue share payments are driven by attendance, active screens and revenue, and therefore, are not incurred while theaters are closed.\n\n\nThe Company has continued to work to preserve cash and ensure sufficient liquidity to endure the impacts of the COVID-19 pandemic, even if prolonged. Among other measures, the Company has temporarily furloughed or reduced the pay of all employees, suspended non-essential operating expenditures, terminated or deferred certain non-essential capital expenditures, and worked with our landlords, vendors, and other business partners to manage, defer, and/or abate certain costs during the disruptions caused by the COVID-19 pandemic. As of June 25, 2020, the Company had $249.9 million of cash, cash equivalents and investments.\n\n\nWe believe that the exhibition industry has historically fared well during recessions, and management remains optimistic, though cannot guarantee, that the founding members and network affiliates will rebound and attendance figures will benefit from pent-up social demand as state and local restrictions and other social distancing orders subside and people seek togetherness with a return to normalcy. However, the ultimate significance and duration of the COVID-19 pandemic, including the extent of the adverse impact ...