Back to top

Analyst Blog

Cinemark Holdings Inc. (CNK - Snapshot Report) reported strong financial results for the second quarter of 2014 wherein both the top and the bottom line outpaced the respective Zacks Consensus Estimate.

Quarterly net income was $71.7 million or 62 cents per share compared with $20.3 million or 18 cents per share in the year-ago quarter. Second-quarter earnings per share of 62 cents were significantly above the Zacks Consensus Estimate of 48 cents per share.

Quarterly total revenue of $717.9 million was down 1.1% year over year but easily surpassed the Zacks Consensus Estimate of $713 million. Admissions revenues were $455.7 million, down 1.9% year over year. Concession revenues were $226.4 million, down 1% year over year. Other revenues were $35.7 million, up 10.3% year over year.

Geographically, U.S. revenues were $524.5 million, up 1.4% year over year. International revenues were $196.9 million, down 7.1% year over year.

Quarterly operating costs and expenses stood at $601 million, up 1.6% year over year. Operating income was $116.9 million, down 12.8% year over year. Operating margin was 16.3% compared with 18.5% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $169.4 million, down 4.9% from the year-ago quarter.

At the end of the second quarter of 2014, Cinemark had $578.1 million of cash and cash equivalents and $1,827.8 million of debt outstanding compared with $599.9 million of cash and cash equivalents and $1,832.8 million of debt outstanding at the end of 2013. Quarterly capital expenditure was $49.8 million compared with $53.5 million in the year-ago quarter.

Important Operating Data

Quarterly worldwide average screen count came in at 5,597 against 5,530 in the prior-year quarter. Domestic average serene count was 4,452, up 6.5% year over year. International average screen count was 1,145, down 15.1% year over year.

Quarterly worldwide average ticket price came in at $6.46 against $6.33 in the prior-year quarter. Domestic average ticket price was $7.20, up 0.6% year over year. International average ticket price was $5.04, up 3.9% year over year.

Quarterly worldwide concession revenues per patron came in at $3.21 against $3.12 in the prior-year quarter. Domestic concession revenues per patron were $3.67, up 4.9% year over year. International concession revenues per patron were $2.33, down 4.1% year over year.

Other Stocks to Consider

Cinemark currently has a Zacks Rank #3 (Hold). Other better-ranked stocks in the broader Media industry include CTC Media Inc. (CTCM - Snapshot Report), Gray Television Inc. (GTN - Snapshot Report) and Media general Inc. (MEG - Snapshot Report). All three stocks currently carry a Zacks Rank #2 (Buy).