Q1 2024 Cinemark Holdings Inc Earnings Call Transcript
Key Points
- Cinemark Holdings Inc reported strong attendance and box office results, with nearly 40 million guests entertained globally in the first quarter.
- The company achieved significant market share gains compared to pre-pandemic levels, outpacing industry recovery by 700 basis points domestically and 600 basis points internationally.
- Cinemark Holdings Inc generated nearly $580 million in total revenue and over $70 million in adjusted EBITDA, demonstrating resilience and effective navigation of a dynamic operating environment.
- The company successfully retired another $150 million of its COVID-related debt, reflecting confidence in its financial position and long-term industry outlook.
- Cinemark Holdings Inc continues to invest in maintaining and enhancing its theaters, boasting the highest penetration of luxury seating among major operators and a strong presence in both suburban and Latin American markets.
- First quarter North American industry box office declined modestly versus 2023, impacted by over six months of Hollywood strikes the previous year that disrupted film production.
- The company faces ongoing challenges from the Hollywood strikes, which have led to a reduced volume of wide releases and could pressure net leverage ratios in the near term.
- Cinemark Holdings Inc's international segment saw a 9% decline in attendance compared to the first quarter of 2023, with film slate not resonating as well in the Latin American region.
- Foreign currency devaluation, particularly with respect to the Argentinian peso, posed a headwind to international adjusted EBITDA in the quarter.
- Despite strategic pricing initiatives, the company experienced a concession cost rate increase due to inflationary pressures on core concession items and a shift towards lower margin products.
Greetings, and welcome to Cinemark Holdings, Inc. First Quarter 2024 earnings conference call. At this time, all participants are in a listen only mode, a brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on a telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Chanda Brashears, Senior Vice President, Investor Relations. Thank them, especially you may begin.
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
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