Cinemark Holdings, Inc. (CNK) Bundle
A Brief History of Cinemark Holdings, Inc.
Cinemark Holdings, Inc. is a leader in the motion picture exhibition industry, operating theaters across the United States and internationally. As of 2024, the company's operational and financial metrics reflect its recovery trajectory post-pandemic, adapting to changing consumer preferences and market dynamics.
Financial Performance Overview
For the third quarter of 2024, Cinemark reported total revenue of $921.8 million, a modest increase compared to $874.8 million in the same period of 2023. The revenue streams primarily comprise admissions and concession sales, with the U.S. segment generating $744.8 million and the international segment contributing $180.4 million.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $921.8 million | $874.8 million | 5.4% |
| U.S. Revenue | $744.8 million | $686.2 million | 8.5% |
| International Revenue | $180.4 million | $192.3 million | -6.6% |
Operating Income and Expenses
Operating income for the third quarter of 2024 was reported at $163.5 million, an increase from $145.8 million in the third quarter of 2023. Total cost of operations for the period was $758.3 million, compared to $729.0 million in the previous year.
Earnings and Share Performance
Net income attributable to Cinemark Holdings, Inc. for the third quarter of 2024 was $187.8 million, reflecting a significant increase from $90.2 million in the third quarter of 2023. Earnings per share (EPS) for the same period were $1.19 diluted, compared to $0.61 in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $187.8 million | $90.2 million |
| Diluted EPS | $1.19 | $0.61 |
Market Dynamics and Strategic Initiatives
The North American box office for the third quarter of 2024 totaled approximately $2.7 billion, driven by major releases such as "Deadpool & Wolverine" and "Despicable Me 4." This represents a recovery from $7.2 billion in 2023, where significant titles included "Avatar: The Way of Water" and "Barbie".
Debt and Capital Structure
As of September 30, 2024, Cinemark's long-term debt was valued at $2.834 billion, an increase from $2.460 billion at the end of 2023. The fair value of the 4.50% convertible senior notes was $913.9 million, reflecting their potential dilutive impact on earnings.
| Debt Type | Value (Sept 30, 2024) | Value (Dec 31, 2023) |
|---|---|---|
| Long-Term Debt | $2.834 billion | $2.460 billion |
| Convertible Senior Notes | $913.9 million | $556.5 million |
Conclusion on Market Position
Cinemark continues to navigate the complexities of the post-pandemic landscape, focusing on operational efficiency and strategic content acquisitions to enhance its market position. The company's financial recovery is evidenced by its growth in revenue and profitability metrics, showcasing resilience in a competitive industry.
A Who Owns Cinemark Holdings, Inc. (CNK)
Major Shareholders
As of October 25, 2024, the ownership structure of Cinemark Holdings, Inc. includes a mix of institutional investors and insiders. The following table summarizes the major shareholders:
| Shareholder | Type | Percentage Ownership |
|---|---|---|
| Lee Roy Mitchell | Insider | 8.5% |
| BlackRock, Inc. | Institutional Investor | 9.7% |
| The Vanguard Group, Inc. | Institutional Investor | 8.2% |
| Wellington Management Co. LLP | Institutional Investor | 5.4% |
| State Street Corporation | Institutional Investor | 4.9% |
| Other Institutional Investors | Various | 63.3% |
Insider Ownership
Insider ownership plays a significant role in the governance of Cinemark Holdings, Inc. The founder, Lee Roy Mitchell, maintains an 8.5% stake in the company. This insider ownership can influence corporate decisions and align management's interests with those of shareholders.
Institutional Ownership Trends
Institutional ownership has seen fluctuations over recent years. As of September 30, 2024, the following statistics were noted:
| Institution | Shares Owned | Percentage Change from Previous Quarter |
|---|---|---|
| BlackRock, Inc. | 11,800,000 | +2.0% |
| The Vanguard Group, Inc. | 10,000,000 | -1.5% |
| Wellington Management Co. LLP | 6,500,000 | +3.0% |
| State Street Corporation | 5,200,000 | +0.5% |
Share Performance Analysis
The stock performance of Cinemark Holdings, Inc. has shown resilience, with a closing price of $18.66 per share as of September 30, 2024. This reflects a 130% increase from its initial conversion price of $14.35 per share for the 4.50% convertible senior notes.
Convertible Senior Notes
Cinemark Holdings, Inc. issued 4.50% Convertible Senior Notes due August 2025, amounting to $460 million. The notes are convertible at a price of approximately $14.35 per share, with a fair value of $913.9 million as of September 30, 2024.
Equity Structure
As of September 30, 2024, the equity structure of Cinemark Holdings, Inc. is as follows:
| Equity Item | Value (in millions) |
|---|---|
| Total Common Stock Issued | $0.1 |
| Additional Paid-in Capital | $1,267.8 |
| Treasury Stock | $(102.7) |
| Accumulated Deficit | $(214.0) |
| Accumulated Other Comprehensive Loss | $(392.8) |
| Total Stockholders' Equity | $558.4 |
| Noncontrolling Interests | $9.5 |
| Total Equity | $567.9 |
Recent Transactions and Capital Expenditures
Cinemark reported cash used for investing activities of $89.1 million for the nine months ended September 30, 2024, primarily for the development and remodeling of theatres. The company operates 499 theatres with 5,680 screens worldwide as of the same date.
Conclusion on Ownership Structure
The ownership of Cinemark Holdings, Inc. is characterized by significant institutional investment, with key stakeholders holding substantial shares. This diverse ownership can provide a balance of interests and support for the company's strategic direction in the competitive entertainment industry.
Cinemark Holdings, Inc. (CNK) Mission Statement
Corporate Overview
Cinemark Holdings, Inc. operates as a leading movie exhibition company, providing entertainment experiences across various formats. The company manages a significant number of theatres, strategically positioned to enhance customer engagement and satisfaction.
Mission Statement
Cinemark's mission statement emphasizes the commitment to delivering exceptional entertainment experiences while prioritizing customer service, community involvement, and innovation in film exhibition.
Operational Statistics
As of September 30, 2024, Cinemark Holdings operates 499 theatres with 5,680 screens worldwide. The company is positioned in 42 states in the U.S. and 13 countries internationally, making it a prominent player in the global cinema market.
Financial Performance
The financial performance of Cinemark Holdings reflects its operational strategy and market conditions. Below is a summary of key financial metrics for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $921.8 million | $874.8 million | $2,235.2 million | $2,427.8 million |
| Net Income | $188.9 million | $91.2 million | $260.8 million | $209.1 million |
| Attendance (millions) | 37.6 | 37.5 | 90.3 | 101.5 |
| Average Ticket Price | $9.98 | $9.34 | $9.90 | $9.54 |
| Concession Revenue per Patron | $7.97 | $7.15 | $7.86 | $7.40 |
Strategic Initiatives
Cinemark is focused on enhancing customer experiences through various strategic initiatives, including:
- Investment in premium formats and enhanced viewing experiences.
- Regular updates to theatre facilities to ensure comfort and accessibility.
- Community engagement through partnerships and promotional events.
Market Position and Competitiveness
Cinemark has maintained a competitive edge in the exhibition industry, navigating challenges such as changes in consumer behavior and market disruptions. The company leverages its extensive theatre network and diverse film offerings to attract audiences.
Conclusion
Through its mission and operational strategies, Cinemark Holdings, Inc. continues to position itself as a leader in the cinema exhibition industry while adapting to the evolving landscape of entertainment consumption.
How Cinemark Holdings, Inc. (CNK) Works
Company Overview
Cinemark Holdings, Inc. operates as a leading movie theater chain in the United States and internationally. As of September 30, 2024, the company managed 499 theaters with a total of 5,680 screens worldwide .
Financial Performance
For the nine months ended September 30, 2024, Cinemark reported total revenue of $2.235 billion, a decrease from $2.428 billion in the same period of 2023. The breakdown of this revenue by operating segment is as follows:
| Operating Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| U.S. | $1,779.0 | $1,907.2 |
| International | $464.8 | $531.3 |
| Eliminations | ($8.6) | ($10.7) |
| Total Revenue | $2,235.2 | $2,427.8 |
Attendance Metrics
During the same nine-month period, total attendance decreased to 150.1 million patrons compared to 169.2 million in 2023. The attendance figures are further broken down as follows:
| Region | 2024 Attendance (in millions) | 2023 Attendance (in millions) |
|---|---|---|
| U.S. | 90.3 | 101.5 |
| International | 59.8 | 67.7 |
| Total Attendance | 150.1 | 169.2 |
Revenue Sources
The company generates revenue from three main sources: admissions, concessions, and other ancillary revenue. For the nine months ended September 30, 2024, the revenue breakdown was:
| Revenue Source | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| Admissions Revenue | $1,116.0 | $1,233.2 |
| Concession Revenue | $884.4 | $949.0 |
| Other Revenue | $234.8 | $245.6 |
| Total Revenue | $2,235.2 | $2,427.8 |
Cost of Operations
The cost of operations for the nine months ended September 30, 2024, totaled $1.968 billion, which includes:
| Cost Category | 2024 Cost (in millions) | 2023 Cost (in millions) |
|---|---|---|
| Theater Operating Costs | $1,659.9 | $1,800.0 |
| General and Administrative Expenses | $158.2 | $163.0 |
| Depreciation and Amortization | $148.3 | $154.0 |
| Total Cost of Operations | $1,968.4 | $2,117.0 |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Cinemark reported a net income of $268.6 million, compared to $226.6 million in 2023. The earnings per share (EPS) for the same period were as follows:
| EPS Metric | 2024 EPS | 2023 EPS |
|---|---|---|
| Basic | $1.54 | $0.74 |
| Diluted | $1.19 | $0.61 |
Cash Flow Activities
Cash provided by operating activities for the nine months ended September 30, 2024, was $279.5 million, down from $347.9 million in 2023. The breakdown of cash flows is as follows:
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $279.5 | $347.9 |
| Net Cash Used in Investing Activities | ($89.1) | ($74.9) |
| Net Cash Used in Financing Activities | ($94.7) | ($118.0) |
| Net Change in Cash | $95.7 | $154.9 |
Market Position and Industry Context
As of 2024, the North American box office is estimated to have generated approximately $6.4 billion, a decline from $7.2 billion in 2023. This reflects the challenges faced by the industry, including competition and changing consumer preferences .
How Cinemark Holdings, Inc. (CNK) Makes Money
Revenue Streams
Cinemark Holdings, Inc. generates revenue primarily from the following sources:
- Admissions Revenue
- Concession Sales
- Screen Advertising
- Other Ancillary Revenue
Admissions Revenue
Admissions revenue is derived from ticket sales for films and other events. For the nine months ended September 30, 2024, admissions revenue was:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| U.S. | $894.4 | $968.5 |
| International | $221.6 | $264.7 |
| Total | $1,116.0 | $1,233.2 |
Concession Revenue
Concession revenue comes from food and beverage sales at Cinemark theatres. The reported figures for concession revenue are as follows:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| U.S. | $709.6 | $751.1 |
| International | $174.8 | $197.9 |
| Total | $884.4 | $949.0 |
Other Revenue
Other revenue includes screen advertising and ancillary services. The figures for the nine months ended September 30, 2024, are:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| U.S. | $166.4 | $176.9 |
| International | $68.4 | $68.7 |
| Total | $234.8 | $245.6 |
Attendance Trends
Attendance figures have shown variations due to several factors, including film releases and market conditions. The attendance numbers for the nine months ended September 30, 2024, are:
| Segment | 2024 Attendance (in millions) | 2023 Attendance (in millions) |
|---|---|---|
| U.S. | 90.3 | 101.5 |
| International | 59.8 | 67.7 |
| Total | 150.1 | 169.2 |
Average Ticket Prices
The average ticket prices for the respective segments are as follows:
| Segment | 2024 Average Price | 2023 Average Price |
|---|---|---|
| U.S. | $9.90 | $9.54 |
| International | $3.71 | $3.91 |
| Total | $7.44 | $7.29 |
Concession Revenue per Patron
The concession revenue per patron has also seen growth, which is critical for profitability:
| Segment | 2024 Revenue per Patron | 2023 Revenue per Patron |
|---|---|---|
| U.S. | $7.86 | $7.40 |
| International | $2.92 | $2.92 |
| Total | $5.89 | $5.61 |
Cost Structure
Cinemark’s cost structure includes various operational costs. The major components for the nine months ended September 30, 2024, are as follows:
| Cost Type | 2024 Cost (in millions) | 2023 Cost (in millions) |
|---|---|---|
| Film Rentals and Advertising | $623.9 | $692.9 |
| Concession Supplies | $165.1 | $174.0 |
| Salaries and Wages | $294.1 | $306.2 |
| Facility Lease Expense | $244.7 | $250.9 |
| Utilities and Other | $332.1 | $353.5 |
| Total Cost of Operations | $1,968.4 | $2,082.6 |
Net Income
The net income attributable to Cinemark for the nine months ended September 30, 2024, was:
| 2024 Net Income (in millions) | 2023 Net Income (in millions) |
|---|---|
| $258.4 | $206.2 |
Adjusted EBITDA
Adjusted EBITDA, which is vital for assessing operational performance, is reported as:
| Segment | 2024 Adjusted EBITDA (in millions) | 2023 Adjusted EBITDA (in millions) |
|---|---|---|
| U.S. | $338.6 | $395.4 |
| International | $94.7 | $119.1 |
| Total Adjusted EBITDA | $433.3 | $514.5 |
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Article updated on 8 Nov 2024
Resources:
- Cinemark Holdings, Inc. (CNK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cinemark Holdings, Inc. (CNK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cinemark Holdings, Inc. (CNK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.