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Cinemark (CNK) Lags Q2 Earnings, Beats Revenue Estimates

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Cinemark Holdings Inc. (CNK - Free Report) reported mixed financial results for the second quarter of 2016 wherein the top line marginally exceeded the Zacks Consensus Estimate while the bottom line failed to beat.

Quarterly net income was $53.9 million or 46 cents per share compared with $70.2 million or 61 cents in the year-ago quarter. The earnings figure fell behind the Zacks Consensus Estimate of 51 cents.

Total quarterly revenue of $744.4 million was down 6.9% year over year but ahead of the Zacks Consensus Estimate of $743 million.

Segment-wise, Admissions revenues were $456 million, down 9.3% year over year. Concession revenues grossed $253.6 million, down 2.3%. Other revenues were $34.7 million, down 9.3% year over year. Geographically, U.S. revenues totaled $560.5 million, down 5.4% year over year. International revenues reached $187.6 million, down 11.3%.

Quarterly operating costs and expenses totaled $638.8 million, down 4% year over year. Operating income was $105.6 million, down 21.5% year over year. Operating margin was 14.2% compared with 16.8% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $168.4 million, down 13.4% from the year-ago quarter.

At the end of the second quarter, Cinemark had $583.6 million of cash and cash equivalents and $1,789.4 million of debt outstanding compared with $588.5 million of cash and cash equivalents and $1,781.3 million of debt outstanding at the end of 2015. Quarterly capital expenditure was $83.8 million compared with $70 million in the year-ago quarter.

Important Operating Data

In the reported quarter, worldwide average screen count was 5,864, up 2.8% year over year. Domestic average screen count was 4,566, up 1.5% year over year. International average screen count was 1,298, up 7.4% year over year.

Quarterly worldwide average ticket price was $6.25, down 4.7% year over year. Domestic average ticket price was $7.59, down 1% year over year. International average ticket price was $4.03, down 12.4% year over year.

Quarterly worldwide concession revenues per patron came in at $3.47, up 2.7% year over year. Domestic concession revenues per patron were $4.26, up 7% year over year. International concession revenues per patron were $2.17, down 6.9 % year over year.

CINEMARK HLDGS Price, Consensus and EPS Surprise

CINEMARK HLDGS Price, Consensus and EPS Surprise | CINEMARK HLDGS Quote

Zacks Rank & Stocks to Consider

Cinemark currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Entertainment industry include Diamond Resorts International, Inc. , Town Sports International Holdings Inc. and MSG Networks Inc. . All the three stocks carry a Zacks Rank #2 (Buy).

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