Cnk Cinemark

[Rosella Bowlan]

Yesregular moviegoers can earn rewards points and enjoy exclusive discounts through the free Cinemark Movie Rewards program. For $9.99/month, you can see movies for free and earn extra loyalty rewards with a Cinemark Movie Club membership.

Sometimes, if Cinemark is offering an email sign-up promotion, Regardless, Cinemark email newsletter subscribers usually hear about upcoming offers, ticket discount promotions, and special events before anyone else.

Cinemark will give you a full refund for most ticket purchases until the scheduled showtime, minus the cost of online ticket fees (if you bought your tickets on cinemark.com or through the Cinemark app). Once the movie begins, you cannot request a refund or exchange. You can complete your refund or exchange request online, through the app, or in person at your local Cinemark box office.

If you need to reach the Cinemark customer service team, call 1-800-246-3627 for assistance with refunds, exchanges, and accessibility inquiries. You can also contact the company by filling out the form on the cinemark.com Contact Us page.

Cinemark is a motion picture theater conglomerate based in Plano, Texas. Visit your local Cinemark theater for brand-new motion picture releases, classic film screenings, Real 3D experiences, and IMAX showtimes. Boasting over 300 theaters with over 4,000 screens, Cinemark offers movie tickets at an affordable price without sacrificing the latest visual and audio technology.

Stay connected with Cinemark at cinemark.com and through Cinemark's social media channels at Facebook, Twitter and Instagram (@Cinemark or #Cinemark). For more information on construction progress for Mountain View Village and the Cinemark theatre, visit mountainviewvillage.com.

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

Greetings and welcome to the Cinemark Holdings Inc. first-quarter 2024 earnings conference call. [Operator instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Miss Chanda Brashears, senior vice president, investor relations.

Good morning, everyone. I would like to welcome you to Cinemark Holdings, Inc.'s first-quarter 2024 earnings release conference call, hosted by Sean Gamble, president and chief executive officer, and Melissa Thomas, chief financial officer. Before we begin, I would like to remind everyone that statements or comments made on this conference call may be forward-looking statements. Forward-looking statements may include but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions.

These matters involve certain risks and uncertainties. The company's actual results may materially differ from forward-looking projections due to a variety of factors. Information concerning the factors that could cause results to differ materially is contained in the company's most recently filed 10-K. Also, today's call may include non-GAAP financial measures.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the company's most recently filed earnings release, 10-Q, and on the company's website at ir.cinemark.com. With that, I would now like to turn the call over to Sean Gamble.

Thank you, Chanda, and good morning, everyone. We appreciate you joining us today for our first-quarter 2024 results. Over the past three years, the theatrical exhibition industry has seen meaningful year-over-year increases in attendances and box office as film volume has been rebounding following the shutdown of movie making during the pandemic. And as we indicated last quarter, while this year will likely experience a dip in that recovery trajectory due to over six months Hollywood strikes last year that again disrupted film production.

2024 kicked off to a better than expected start. First-quarter North American industry box office declined only modestly versus 2023 on account of a wide range of films that delivered outsized results. Examples includes Sci-Fi sensation Dune Part Two that out grossed its first installment by more than two and a half times with over $275 million of domestic box office. Animated hit Kung Fu Panda 4, which became the second biggest installment in its franchise history with over $180 million domestically and more than half $0.5 billion worldwide.

Biopic Bob Marley, One Love, which captivated audiences and generated nearly $100 million of domestic box office. Musical comedy Mean Girls and action thriller The Beekeeper, which each delivered close to $70 million domestically. And mega adventure Godzilla x Kong, The New Empire that opened to a monstrous $80 million in North America at the end of the quarter and has since delivered over $500 million worldwide. The first quarter also benefited from strong continued play through of December's whimsical family spectacle Wonka, which has now exceeded $215 million domestically and nearly $415 million globally, as well as anyone but you that proved audiences are still craving romantic comedies in theaters having generated close to $90 million of domestic box office over its impressive run.

Furthermore, we continue to witness strength of non-traditional content during the quarter, such as the successful releases of Cabrini and the complete fourth season of Faith-Based Series, "The Chosen". The solid results of all these diversified titles once again provide strong further validation that consumer enthusiasm for experiencing compelling content in an elevated, cinematic theatrical setting remains vibrant. We certainly experienced that enthusiasm within our cinema theaters during the first quarter as we entertain nearly 40 million guests across our global circuit with results that once again outpace the industry. Relative to 2019, our emissions recovery continued to sizeably exceed that of our industry by 700 basis points domestically and 600 basis points internationally.

To that end, we also continue to maintain the most significant market share gains compared to pre-pandemic results of all major exhibitors. While Melissa will cover our financials in greater detail in a moment, during the first quarter we generated nearly $580 million of total revenue, more than $70 million of adjusted EBITDA, and a healthy 12% adjusted EBITDA margin. These results once again demonstrate our team's resilience and outstanding ability to skillfully navigate a dynamic operating environment pressured by strike-induced headwinds. Yesterday, we also successfully retired another $150 million of our COVID-related debt, given our sustained confidence in our team, financial position, and positive long-term outlook for our company and industry.

That positive outlook was further reinforced a few weeks ago during CinemaCon, our industry's annual trade show event, as studios and filmmakers provided glimpses into their upcoming film line-ups for the next year and a half. One key message that was emphasized again and again by studios during CinemaCon, as has been consistently conveyed to us during our one-on-one conversations, is the significant enhanced value that a theatrical release provides their films and their companies. As we've highlighted on previous earnings calls, the clear consensus is that theatrical release delivers unparalleled levels of promotional impact and quality perception, which strengthens consumer interest to see films, bolsters long-term recall value, and leads to elevated lifetime financial results throughout all distribution channels. It's also very important for consumers who want to experience these films on the big screen, as well as for attracting top-tier talent.

In light of this context, as well as what has been further communicated by the studios with regard to their future film development plans, we continue to remain bullish about the resurgence of film volume over the coming years. Production is now fully up and running again following last year's strikes. New significant entrance, like Amazon and Apple, are meaningfully scaling into theatrical exhibition, and non-traditional content, like concerts, faith-based films, multicultural titles, and anime, is also growing. Along these lines, the major studios took the opportunity during CinemaCon to showcase an increased number of titles relative to prior years, and what they shared, both the quantity of films, as well as the quality of materials presented, created a buzz of optimism that permeated the convention all week.

A diverse range of highly anticipated films slated for the rest of this year appear primed to fully deliver, including a resurgence of family films, like IF, the Garfield movie, Inside Out 2, Despicable Me 4, Moana 2, and Mufasa the Lion King, Action Adventure sagas such as Kingdom of the Planet of the Apes, Furiosa, Bad Boys Rider Die, Twisters, Venom the Last Dance, and Gladiator 2, comedic thrill rides like The Fall Guy, Deadpool and Wolverine, Borderlands, Beetlejuice, Red One, and Sonic the Hedgehog 3, Suspense thrillers such as A Quiet Place Day 1, Alien Romulus, Joker 2, Speak No Evil, and Smile 2, and the fantastical world of Wicked Part 1. And next year's lineup is already coming together in a big way with a wide array of spectacle films that includes Wicked Part 2, Another Jurassic World, Superman Legacy, the next installment of Mission Impossible, a reboot of the Fantastic Four, Ballerina from the John Wick universe, a live action version of How to Train Your Dragon, Captain America, A Brave New World, Snow White, Zootopia 2, Minecraft, Megatru, Tron Aries, and of course Avatar 3, whose prior installments represent the No. 1 and No. 3 biggest global films of all time.

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