Cinemark Tops Q2 Earnings & Revenues on Higher Screen Count - Analyst Blog

Cinemark Holdings Inc. (CNK) 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), Gray Television Inc. (GTN) and Media general Inc. (MEG). All three stocks currently carry a Zacks Rank #2 (Buy).

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