Q2 2024 Cinemark Holdings Inc Earnings Call Transcript
Key Points
- Cinemark Holdings Inc (CNK) reported strong box office performance, outpacing the industry and peers by over 300 basis points domestically and in Latin America.
- The company achieved a record high domestic food and beverage per-cap of $7.95, driven by enhanced concession offerings and strategic pricing.
- Cinemark Holdings Inc (CNK) saw a 10% growth in its movie club membership, reaching over 1.3 million subscribers.
- The company generated $142 million of adjusted EBITDA with a 19.4% adjusted EBITDA margin and $161 million of free cash flow.
- Cinemark Holdings Inc (CNK) successfully reduced its debt by redeeming $150 million of senior secured notes and repricing its term loan, resulting in annual cash interest savings of $3.2 million.
- Year-over-year attendance declined by 22%, impacted by strike-induced headwinds.
- The company faced inflationary pressures on certain concession categories and higher shrink, leading to an increase in concession costs as a percentage of revenue.
- Foreign currency devaluation, particularly in Argentina, remained a headwind to international adjusted EBITDA.
- Salaries and wages as a percentage of total revenue increased due to wage rate inflation and less operating leverage from the decline in attendance.
- Facility lease expenses increased as a percentage of total revenue, driven by lower percentage rent associated with the decline in revenue and theater closures.
Welcome to the Cinemark Holdings Inc second quarter 2024 earnings call. (Operator Instructions) And as a reminder, this conference is being recorded.
I would now like to turn the call over to Chanda Brashears, SVP of Investor Relations. Thank you. You may begin.
Good morning, everyone. I would like to welcome you to Cinemark Holdings Inc's second 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 other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties.
The company's actual results may materially differ from forward-looking projections due to a
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