Business
National CineMedia, Inc. Reports Results for Fiscal Third Quarter 2021
Quarterly Cash Dividend Remains at $0.05 per Share Company Encouraged with the Increase in Advertising Demand Following Recent Box Office Success CENTENNIAL,
About this update from National Cinemedia, Inc.
[{"type":"text","content":"\nQuarterly Cash Dividend Remains at $0.05 per Share\n\nCompany Encouraged with the Increase in Advertising Demand Following Recent Box Office Success\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 third quarter ended September 30, 2021.\n\nCOVID-19 Pandemic\n\nBeginning in 2021, the FDA approved multiple COVID-19 vaccines, which have been widely administered throughout the United States. As a result, during the second quarter of 2021, government restrictions lessened allowing theaters in key larger markets to fully reopen and by the third quarter of 2021 all of the theaters within the Company’s network were open. Multiple successful major motion pictures were released during the second and third quarters of 2021 resulting in the highest theater attendance since the start of the COVID-19 pandemic. The movie slate for the remainder of 2021 and into 2022 remains packed due to the addition of the major motion pictures originally scheduled for 2020.\n\nDespite the increase in network attendance, in-theater advertising revenue for the third quarter of 2021 remained significantly 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, the Company has significantly reduced payroll related costs through a combination of temporary furloughs, permanent layoffs and salary reductions. In total, the Company’s headcount has been reduced by almost 35% as compared to headcount levels prior to the COVID-19 pandemic.\n\nNCM LLC’s cash balance as of September 30, 2021 was $64.4 million. Including the $46.9 million at NCM, Inc, the Company had $111.3 million of cash, cash equivalents and investments as of September 30, 2021. 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 payments were not incurred during periods when the the...