(CINEMARK LOGO)
NEWS
RELEASE
CONTACT: ROBERT COPPLE
>FOR IMMEDIATE RELEASE...
CINEMARK USA, INC. REPORTS INTENDED ADD-ON TO 9% SENIOR SUBORDINATED NOTES DUE
2013
Plano, TX, April 24, 2003 - Cinemark USA, Inc., a Texas corporation (the
"Company"), announced that it intends to issue, subject to market and other
conditions, an additional amount of its 9% Senior Subordinated Notes due 2013 by
means of a private placement. The notes will be offered only to qualified
institutional buyers in reliance on Rule 144A under the Securities Act of 1933,
as amended, and to non-U.S. persons in reliance on Regulation S under the
Securities Act. Net proceeds from the offering and additional borrowings under
the Company's senior credit facility will be utilized to fund the purchase of up
to $240 million aggregate principal amount of (i) its $200 million 9 5/8% Series
B Senior Subordinated Notes due 2008 and (ii) its $75 million 9 5/8% Series D
Senior Subordinated Notes due 2008 pursuant to an offer to purchase announced on
April 18, 2003.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities nor shall there be any sale of
these securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any
state.
The following is certain information that will be disclosed by the Company
in connection with the offering of the additional notes.
The following table presents the Company's estimated unaudited results for
the first quarter ended March 31, 2003 and historical unaudited results for the
first quarter ended March 31, 2002:
<Table>
<Caption>
(In thousands) First Quarter First Quarter
Ended Ended
March 31, 2003 March 31, 2002
-------------- --------------
CONSOLIDATED :
Theatre revenues $ 204,002 $ 226,702
Operating Income 24,826 30,542
Adjusted EBITDA (1) 41,424 50,036
Cash and cash equivalents 42,649 59,438
Total long-term debt, including current portion 704,099 783,551
RESTRICTED GROUP : (2)
Theatre revenues 171,595 180,290
Operating Income 22,238 26,226
Adjusted EBITDA (1) 35,852 40,850
Cash and cash equivalents 19,970 28,109
Total long-term debt, including current portion 688,797 679,165
CONSOLIDATED REVENUES:
U.S. and Canada 157,593 169,061
Mexico 15,672 22,052
Brazil 15,075 19,328
Other foreign countries 16,152 16,547
Eliminations (490) (286)
-------------- --------------
Total 204,002 226,702
============== ==============
</Table>
(1) Represents operating income before depreciation and amortization, asset
impairment loss, (gain) loss on sale of assets and other, changes in
deferred lease expense, accrued and unpaid compensation expense relating
to any stock option plans and other non-cash expenditures. See
reconciliation of Adjusted EBITDA in the chart below. Adjusted EBITDA is a
non-GAAP financial measure and should not be construed as an alternative
to net income or operating income as an indicator of operating or
financial performance (as determined in accordance with GAAP). This
financial information is included to provide additional information that
our management, debt holders and investors use to assess the performance
of the Company. Adjusted EBITDA is the primary component used in
calculating financial covenants under the indentures under which our
senior subordinated notes have been issued. Adjusted EBITDA may not be
comparable to similarly titled measures reported by other companies.
(2) The restrictive covenants in the indenture apply only to Cinemark USA,
Inc. and its restricted subsidiaries (the "Restricted Group"). This data
presents certain information with respect to the Restricted Group only.
See supplemental schedules to our quarterly financial statements.
The following table presents our estimated unaudited reconciliation of
operating income to Adjusted EBITDA.
<Table>
<Caption>
Consolidated Restricted Group
---------------------------------- ----------------------------------
First Quarter First Quarter First Quarter First Quarter
Ended Ended Ended Ended
March 31, 2003 March 31, 2002 March 31, 2003 March 31, 2002
-------------- -------------- -------------- --------------
Operating Income $ 24,826 $ 30,542 $ 22,238 $ 26,226
Add (deduct):
Depreciation and amortization 16,137 17,167 13,312 13,248
Asset impairment loss -- 558 -- --
(Gain) loss on sale of assets and
other (616) 539 (617) 324
Deferred lease expenses 803 953 645 775
Stock option compensation 274 277 274 277
-------------- -------------- -------------- --------------
Adjusted EBITDA $ 41,424 $ 50,036 $ 35,852 $ 40,850
============== ============== ============== ==============
</Table>
The Company's estimated unaudited revenue for the first quarter of 2003
reflects a softer box office performance during the quarter compared to the same
quarter in 2002. Although North American revenues for the Company decreased
approximately 6.8%, the Company's consolidated revenues reflect unfavorable
currency movements against the US dollar in Brazil and Mexico and softer
worldwide box office performance. However, historical results are not
necessarily indicative of future results. The amounts the Company reports as its
actual quarterly results may differ from these estimates upon completion of
review procedures of the results of the first quarter.
Statements concerning the company's business expectations, intentions,
plans and beliefs, together with other statements made in this press release
that are not historical facts are "forward-looking statements" as that term is
defined under the federal securities laws. All forward-looking statements are
subject to the risks and uncertainties that could cause actual outcomes and
results to differ materially from those expressed or suggested, including those
described in the company's filings with the Securities and Exchange Commission.
The Company intends that this press release be governed by the "safe
harbor" provision of the Private Securities Litigation Reform Act of 1995 (the
"PSLR Act") with respect to statements that may be deemed to be forward-looking
statements under the PSLR Act. Such forward-looking statements may include, but
are not limited to, the Company and any of its subsidiaries' long-term theatre
strategy. Actual results could differ materially from those indicated by such
forward-looking statements due to a number of factors.
For more information contact: Robert Copple, CFO
(972) 665-1000
(972) 665-1004 Fax
# # #