Cinemark Holdings, Inc. · NYSE:CNK
Cinemark — Q2 2023 Earnings Presentation
23 slides from Cinemark's earnings presentation, Aug 4, 2023
Slide 1: Investor Presentation
Investor Presentation August 4, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS PURSUANT TO THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation contains, and our officers and representatives may from time to time make, “forward–looking statements” within the meaning of the s
Slide 3: Cinemark Overview
Cinemark Overview
Slide 4: Cinemark Overview
Cinemark Overview One of the largest and most influential theatrical exhibition companies in the world with 514 theaters with 5,812 screens in 15 countries 1) U.S. Operations 1) • 3rd largest exhibitor (based on screen count) • Located in 42 states, 104 DMAs • #1 or #2 in box office revenues in 80%
Slide 5: Highly Experienced Executive Leadership Team
Highly Experienced Executive Leadership Team Highly experienced management team with significant industry experience and proven track records; Additional key leaders with 20+ years of industry/Cinemark experience in the US and internationally Sean Gamble Melissa Thomas President & CEO CFO 15+ years
Slide 6: Exhibition Industry Trends
Exhibition Industry Trends Stable, long-term industry growth trends across technology innovations and economic cycles with box office growth in 6 of the last 8 recessionary periods North America Box Office Trends Recliners and enhanced food Digital projector conversion investments DVD player drops t
Slide 7: North American Industry Outperformance
North American Industry Outperformance Cinemark’s operational excellence and execution of strategic priorities has driven faster domestic box office recovery and market share gains, which continued into the first half of 2023 2022 Box Office Recovery 1) Market Share 2) 2022 Market Share 2) 71% 14% 2
Slide 8: Latin American Industry Outperformance
Latin American Industry Outperformance Strong international presence throughout Latin America provides diversification, increased scale, cross-company synergies, and promotional opportunities with global partners 2022 Market Share 1) 2022 Market Share - Key Latin American Markets 1) Brazil Argentina
Slide 9: Initiatives Driving Growth and Outperformance
Initiatives Driving Growth and Outperformance Continuing to benefit from sustained investments in guest experience; prioritizing investments in strategic initiatives that position Cinemark for ongoing success Heightened focus on the guest 68% U.S. recliner penetration - experience with guest service
Slide 10: Financial Results
Financial Results
Slide 11: Highlights of Q2 2023 Results
Highlights of Q2 2023 Results We continue to make significant progress recovering from the pandemic and have consistently demonstrated our ability to flex and adapt in a dynamic landscape • Domestic box office outperformed the North American industry results by more than 800 bps comparing 2Q23 again
Slide 12: 2Q23 Financial Summary
2Q23 Financial Summary Worldwide Results 1) 2) 2Q23 Highlights • Worldwide attendance increased 24% year-over-year driven by a steady 2Q23 2Q22 Variance recovery of film volume and a diverse slate of high-quality films • Executed upon strategy to maximize attendance and box office and Attendance 64
Slide 13: Capital Structure and Allocation
Capital Structure and Allocation Our balance sheet remains a strategic asset and key differentiator, providing ample flexibility • Covenant-lite debt (in $ millions) As of June 30, 2023 • Company has a history of proactively managing debt with nearest maturity in 2025 Long-term debt 1) $2,436 • Rede
Slide 14: A Look Ahead
A Look Ahead
Slide 15: 2023 Notable Titles
2023 Notable Titles 2023 expected to be a further year of recovery and improvement in content volume and box office Q1 January 6 February 17 March 3 March 17 March 24 March 31 Q2 April 7 May 5 May 19 May 26 June 2 June 16 Q3 June 30 July 14 July 21 July 21 July 28 August 4 Q4 October 20 November 3 N
Slide 16: 2024 Compelling Film Slate
2024 Compelling Film Slate 16
Slide 17: Value of an Exclusive Theatrical Window
Value of an Exclusive Theatrical Window A theatrical release enhances a film’s promotional impact and overall asset value Increases consumer Elevates perception Satisfies consumer/ awareness, interest of films by creative desires to see and recognition eventizing them films on big screen Creates str
Slide 18: Strategic Priorities for Long-Term Operating Success
Strategic Priorities for Long-Term Operating Success Cinemark maintains an advantaged position to capitalize on the ongoing recovery of theatrical exhibition through varied experiential consumer-based, revenue-generating, and productivity initiatives Create an exceptional guest experience through pr
Slide 19: Appendix
Appendix
Slide 20: 2Q 2023 Non-GAAP Measure Reconciliations
2Q 2023 Non-GAAP Measure Reconciliations Reconciliation of Net Income/(Loss) to Adjusted EBITDA 1) Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow 1) 2Q 2023 2Q 2022 2Q 2019 2Q 2023 2Q 2022 2Q 2019 Net Income/(Loss) $120 $(73) $102 Cash flows provided by (used for) op
Slide 21: 2022 Financial Summary
2022 Financial Summary Annual Worldwide Results 1) 2) 2022 Highlights • Worldwide total revenue grew 63% year-over-year, demonstrating 2022 2021 2019 another positive step in the industry’s recovery, as well as sustained consumer enthusiasm for theatrical moviegoing Attendance 173 106 280 • Delivere
Slide 22: 2022 Non-GAAP Measure Reconciliations
2022 Non-GAAP Measure Reconciliations Reconciliation of Net Income/(Loss) to Adjusted EBITDA 1) Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow 1) FY 2022 FY 2021 FY 2019 FY 2022 FY 2021 FY 2019 Net Income/(Loss) ($268) ($422) $194 Cash flows provided by operating act
Slide 23: Thank You
Thank You Chanda Brashears SVP Investor Relations cbrashears@cinemark.com 972-665-1671