Cinemark Holdings (CNK) Q3 Earnings Miss, Revenues Beat

Cinemark Holdings Inc. CNK reported mixed financial results in the third quarter of 2017. The top line surpassed the Zacks Consensus Estimate while the bottom line missed the same.

Quarterly net income was $38.1 million or 33 cents per share compared with $65.7 million or 56 cents in the year-ago quarter. The company reported earnings of 33 cents per share, missing the Zacks Consensus Estimate of 35 cents.

Quarterly total revenues of $710.7 million were down 7.5% year over year. However, revenues surpassed the Zacks Consensus Estimate of $707.9 million.

The Admissions segment revenues came in at $425.1 million, reflecting an increase of 10.1% year over year. Concession revenues were $247 million, decreasing 5.5% year over year. Other revenues were $38.6 million, increasing 12.4% year over year. Geographically, U.S. revenues totaled $514.4 million, decreasing 10.2% year over year. International revenues were $200.1 million, reflecting an increase of 0.3% year over year.

Quarterly operating costs and expenses totaled $636.6 million, decreasing 2.2% year over year. Operating income was $74.2 million, declining a substantial 37% year over year. Operating margin was 10.4% compared with 15.3% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $153.7 million, decreasing 16.9% from the year-ago quarter.

At the end of the third quarter of 2017, Cinemark had $469.4 million of cash and cash equivalents and $1,789.1 million of debt outstanding compared with $561.2 million and $1,789.2 million, respectively, at the end of 2016. At the end of the reported quarter, the debt-to-capitalization ratio was 0.57 compared with 0.58 at the end of 2016.

Operating Metrics

In the reported quarter, Cinemark’s worldwide average screen count was 5,939, increasing 1% year over year. Average ticket price was $6.32, up 1.8% year over year. Concession revenues per patron were $3.67, reflecting an increase of 7% year over year. Worldwide attendance was 67.3 million, down 11.7% year over year.

Cinemark Holdings is a leading motion picture exhibition company currently carrying a Cinemark Holdings has a Zacks Rank #4 (Sell).. Its major competitors include AMC Entertainment Holdings Inc. AMC, Six Flags Entertainment Corp. SIX and IMAX Corp. IMAX. AMC Entertainment and Six Flags currently carry a Zacks Rank #3 (Hold) while IMAX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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