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Cinemark's (CNK) Q1 Earnings and Revenues Beat Estimates

Cinemark Holdings Inc. CNK reported strong financial results for the first quarter of 2016 wherein both the top and the bottom line surpassed the Zacks Consensus Estimate.

Quarterly net income was $58.5 million or 50 cents per share compared with $42.5 million or 37 cents in the year-ago quarter. The earnings figure also outpaced the Zacks Consensus Estimate of 48 cents.

Quarterly total revenue of $704.9 million was up 9.2% year over year and ahead of the Zacks Consensus Estimate of $697 million.

Segment-wise, Admissions revenues were $435.8 million, up 8.8% year over year. Concession revenues grossed $237.8 million, up 10.9%. Other revenues were $31.2 million, up 3.1% year over year. Geographically, U.S. revenues totaled $543.9 million, up 14.7% year over year. International revenues reached $164.2 million, down 5.8%.

Quarterly operating costs and expenses totaled $590.0 million, up 6.3% year over year. Operating income was $114.8 million, up roughly 27% year over year. Operating margin was 16.3% compared with 14.0% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $184.6 million, up 19.6% from the year-ago quarter.

At the end of the first quarter, Cinemark had $583.9 million of cash and cash equivalents and $1,802.3 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 $47.7 million compared with $85.7 million in the year-ago quarter.

Important Operating Data

In the reported quarter, worldwide average screen count was 5,805, up 2.3% year over year. Domestic average screen count was 4,522, up 0.6% year over year. International average screen count was 1,283, up 8.6% year over year.

Quarterly worldwide average ticket price was $6.01, down 1.8% year over year. Domestic average ticket price was $7.58, up 6.3% year over year. International average ticket price was $3.51, down 19.7% year over year.

Quarterly worldwide concession revenues per patron came in at $3.28, up 0.3% year over year. Domestic concession revenues per patron were $4.13, up 7.3% year over year. International concession revenues per patron were $1.92, down 15.8% year over year.

Zacks Rank & Stocks to Consider

Cinemark currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Entertainment industry include Carnival plc. CUK, Cedar Fair, L.P. FUN and The Marcus Corporation MCS. All the three stocks carry a Zacks Rank #2 (Buy).

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MARCUS CORP (MCS): Free Stock Analysis Report
 
CARNIVAL PLC (CUK): Free Stock Analysis Report
 
CEDAR FAIR (FUN): Free Stock Analysis Report
 
CINEMARK HLDGS (CNK): Free Stock Analysis Report
 
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