NCMI - Earnings call transcript Q1 2021 | National CineMedia, Inc.

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Operator

Good day and welcome to the National CineMedia, Incorporation First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ted Watson, Senior Vice President of Finance. Please go ahead.

Ted Watson

good and Matt, you, afternoon everyone. Thank joined am today by Lesinski. Tom CEO, our I remind this XXXX, of listeners forward-looking like and and our I'd to the of that of as the Securities of Section XXE Act Act statements meaning conference amended. Section Securities XXA of the Exchange XXXX amended, as within contains call during statements, forward-looking statements of than including COVID-XX of other constitute our All may facts discussion this communicated impacts statements. call about the future conference historical risks and involve These statements forward uncertainties. looking that disclosed factors factors with expectations the differ actual materially from to Important filings can results in cause the Company's the Company's contained are SEC. risk the in All in their forward-looking and qualified factors. are statements entirety by expressly such discussion measures. some non-GAAP today our includes Further, the basis closest On gap reconciled with accordance G, to we measurement. Regulation have back these amounts end website at Investor earnings at can or release reconciliations the ncm.com. our found be Relations These of of today's page the on turn I'll now, Tom. to And call the over

Tom Lesinski

our earnings safe you're Thank Welcome good afternoon and everyone. to as healthy and continuing XXXX first period all brings spring you, of quarter a recovery. hope I to Ted, call. stay

steady as but continuing an are the from to industry pandemic. slow companies COVID-XX Our recovery

demand, country the shot and since During movie an unique will back all weekends these started, of it there back trends the recovery, many all continue of and there's expanding social opening that AMC the of Kong, Cinemark Kombat screen. the U.S. encouraging than outlooks saying up with in to experience the strong early and adults their we've consumer pent that for coming strong the vaccine is positive audiences These to vs. pandemic had the indications been of consumer be films. a pad supported Demon recent big take first important Mortal and Godzilla the Slayer. demand and of launching are More stages Cinemark half across having now are

into kind now a the In fact, have reestablishment many day producers results new and films of window and launch streaming to some streaming help exclusive scripted content services. considering their disappointing the content recent theatrical of date other

backdrop, providing cinema to company taken now these trends business. restart level our diversify to a on as With steps positive update I'd we've and position ad our to the like quickly high

of at same need we maintaining the position liquidity as While this then begin challenges how COVID-XX for movie to to that ensure our always, will liquidity the by manage our prepared then overall more the our backlog that and drive to ted time benefits summer. costs open the movie detail pandemic, to as And operating we'll we the team theaters to presented ongoing provide back will continue is slate questions. line quickly our incredible audiences and your

challenging The and home of a industries. first for out NCM's XX be advertising quarter time entire entertainment the of continues and business to

significantly revenue impacted new mandated advertising pay in-theater government limits, Our both of by in motion for lay movie remains QX and closures theater due lower and audience attendance adversely continued to releases. both it picture major capacity to

of and strong change 'XX. the for firming of schedule to that Fortunately, remainder QX began release some the openings in with the

to including at XX% reopen open XX% end to have restrictions theaters, theatres XXXX. As the of COVID-XX Regal of our are versus advertising begun loosen, begin capacity networks seating national and in approximately

theaters COVID-XX City other under and up continue hours markets. While York the New shortly. and open loosening restrictions capacity for many discuss are this continue to in that are operating more are Ted operate key will time restrictions reduced and detail in all with first

not theaters active exhibitors where the is historical closed theaters and operating ready day, network Day periods encouraging be as down and show LLCs access theater are incurred that NCM we'll were therefore Europe to beginning every the revenue for screens driven duration anticipated Theater platinum thing are than for share as costs continuing spot National fewer fees, you would lower remains network know more affiliate all The are revenue attendance, and film and Memorial payments get Fortunately, many weekend. payments variable on levels, by that while is open with throughout the for most the our times. attendance of films highly release and/or

theater also capacity As mentioned, parts being restrictions lifted country. many in the are of

at the announced the open In XX% in by they open, fact, top May soon. key have will that of capacity be in DMAs and coming capacity XX% all. also medium at open XX York, currently continue no to states movie was are capacity in LA governor XX theaters recently all now limits market XXX% XXth, theaters And New

optimistic With and openings the going. posting we Asia to across attendance recent positive about continue very the be movie film theaters U.S. future record levels, theatrical

last the an March, bank remain call and clients our offerings 'XX plans our the facility. $XX existing, complimentary new they media amendment the has the marketing part amendment facility QX restaurant ground the of provided advertisers in provided focused exciting funding stores, they reemergence home and million summer growth arrive that relief mentioned and digital on Company continue to ongoing new before us we grocery sales and into after As covenant execute diversification positioned our million the digital have and for in new debt reach and inventory liquidity cinema important We earnings running closed of to on advertising of out of the a this $XX movie that audiences office as buildings locations through additional initiatives. to of to of theaters. leave and allow convenience will This this stores, hit tranche

big deal Marketers are to back be theater their theaters find to Our the again. audiences reach have of audiences these turned to when very on The screen. sales discussions has now agencies back continue add from big brands advertising their brands tenor many about and getting the in to how attendance of movie clients will to with support. positive anxious can conversations advertising once for an hard teams

benefits success as partners that newbie box were agencies others expecting Godzilla, streaming Many flexible make wait us these even While in will date and experimental more also and promised back. a reopen. theatres options great office proof We're approach the soon and taking on of environment some more national brand windows result Slayer that of too marketing power content the see of are audiences allow The the world-class streaming our by theatrical more clients our word soon to and With were a reestablishment successes exhibition. now of movie other Kombat theatrical who the mouth and screen provided and as of have that as scale, benefit from in big they day presale ads pandemic as despite impactful. have unique our with theaters will Mortal the back Grey's of back be Demon all

has ad new have has and national has fact, a than linear audiences In at the available younger of out GRPs traditional television. find supported home lack its large video watching demographics advertisers to to for supported streaming shifted problem linear of SVOD, in high be in much a significant it to bigger marketplace, This forcing and turned instead ways streaming quality non-ad resulted cinema potential reach to supported TV ad increasingly among for highly services audiences. coveted especially

in GRP competing cinema great pandemic be this the looking aggressively us, shortfalls. next great video capitalize opportunity new beginning marketers TV continues world, solution the on marketing a their premium To to we're upfront week. for to post for TV in Fortunately replace

platinum cinema's Linear they off Continuing as fall decade, the what young always all sports audience. viewing TV broadcast for linear This the scale. to last message best wrights-down Our prime be highly as targeted We're media audiences in that becoming advertising sharp and to and XX consumer market the to recognize and a new over to decline real Z momentum young, now approach brands Gen always are shifting highlights tune one our buyers the strategy estate recognize not timely at precipitous going we for cinema TV strong largest very strategy increasingly the world in core return options to in. our broader premium reach this position but their decision that ratings important trends right us be beginning to been presentation XXXX. new some millennial by ad implement and biggest good as client-by-client show video is makers our see reach virtual our the which the available known reason believe affectively cable, continue streaming only TV drives to to diverse, to a postal predecessors This demo, allows to of of road best cable personal of anywhere. cinema which our engaged a top that, And with agency-to-agency time. companies some audiences have since media will audience. advertisers, continues right to XX upfront have in inventory, at cinema habits

Joining brands CPG, national have services, and return QSR, gaming, streaming alcoholic to retail automotive in digital categories such and as begun entertainment, already key beverages. insurance,

any upfront having on that we're the seeing market national is conversations and during which base the a of more at our pandemic, dollars, remains While and becoming negotiations team highly attractive time RFPs focused scatter also detailed and securing more more is encouraging. meaningful

rebound. local to is Our beginning also business

As theaters markets there some XXX% are is movie increase and local volume open local at contact where already beginning to are capacity.

The last closer real home to to in further versus a in campaign factor cinema and country. we've there's clear government weeks has including recruitment, the local spent And vaccine COVID-XX across been services, of in run the strong. number campaigns in continues budgets begun few see upset are and advertiser professional lower tourism, of where especially buyer pandemic in advertising over the advance, limiting planned financial for education, been time. is be real that budgets are in demand estate, movie healthcare, thus and categories national local allowed theaters the communities in key media While being success improvement, flurry travel advertising goers services throughout spent to COVID-XX It local demand. main messaging,

theaters mandated significant be from back now vaccine by other release half to building to future the announcements to recommitment big Recent lineup consumers an for delays as for to role our normalize to some drive marketplace. is of second the of movie been We once great the the and types cabin epidemic films that from others fever news should begin The 'XX the rely continue will government in a as studios their a on This and of caused to restrictions be new had the reflect even unbelievable which beyond. and business films. XXXX, created and new windows movies has This Brothers Warner of into theatrical stabilize continue content film lifted allow theaters. year launch to will again as over the confident companies streaming to now of progresses.

started to maintaining While has core continued we liquidity to team balancing cost increasing in to need by our NCM in-theater so meet demand. advertising reduction our quickly focus that advertising can the business begin on recover, to place, talented business keep our to with up ramp we've measures

over dedication, increasingly positive, inventory we've While I place, new advertisers to temporary with much strategic positioning of of our before. our and in-theater cinema opportunities expansion to a strategy reach past of past digital been success our business opened out to to brands management you I'm the also beyond bundle state to and Part and been in incredibly local Coinstar financial of ad our a and on relates TV new in and to and from diversification The door channels for and has and unparalleled our staffers survive there's recent of our many generating during These up of Marketplace allowed diversify walls inventory integrated it's and ways that digital year to of XXX that out for have offer the cylinders post-pandemic ever our expansion will the resources not we stores, Captivate. of traffic has our for have forward the addition NCM benefited diversify the of us building sources has and new relationships. proud the begun of very big office deduction people our our firing of inventory Advertiser careful and remain resilience, soon media people and reaction pandemic plans digital home the in new home full digital on our back to home beyond network inventory more the apps recovers. traffic pools year. coming ATM screen and other attractive home welcome high currently ad in our theater, us especially new create difficult world. only I'm within open very of as our devices of none will our audiences continued out and and us the new to back, starting expect with the implement enabled of our salary bring including to products industry back really the cannot digital venues and is than remain our tell salary entire out NCM dollars. work how and to restaurant some arena, our positioned the revenue NCM to grateful of says our interest all sales more very to digital categories of unique looking great where be to discussions lotteries. us, team for human and cinema Ziosk complementary NCM initially is all I other increase planning and allow our to has return supermarkets their support and new but

founding but exciting success. audience will expected A data be for few greatly to sets scale meaningful deterministic reinforces our This data data grow enhancing more robust ticket our attribution important ticket to allows our create new measurement in available solutions and new our data expand custom partnership our audience studios marketplace. significantly what newly pristine set also for product year-end data pool closed makes audience data our will by data movie and data that members to advertisers. offering most supplied create and movie new digital ticket us depth movie current our have increase a It ability the data stronger we also leverage one targeting audience are to in other alike. This and initiatives movie and loop valuable increasingly We data. with are believe accelerator brands future largest that digital is our to XXX with movie and million audience power the our of new

in policy by to use enhance the and our larger other expertise compete digital movie Vobile, As audience protection, exclusive digital sell dollars. and third-party of cookies digital recognition digital movie SaaS to options. marketing ad safe, valuable of audiences home and fan brand data, companies video monetization a also YouTube. This theater including and for brands on out and with to formed we've favorite platforms ad with online screen second across they're engaging data government and million connect safe We over marketing monthly reservable trailers regulation biggest XXX scale our top will platforms brand an impressions theater the additional movie opportunities. clips digital inventory premium relationship the digital and video with pages provides advertising content offer leader industry hottest of This clips content the and access while allows dominant with the changes to to audience alongside third-party sell with partnership with robust ad content fans like instant video and ability trailers at with platforms. to their on other Providing us best movie provides

points into step also all and buy. to social the to entry us two marketplace, an with which new Our in home buying marketing of video will strategy platform important provide out products is inventory digital easier make programmatic our

create lay in opportunities in programmatic the inventory, in future. in screen for was additional expect Our which will theater for to Cinema access we launched our management monetization advertising foundation capital our inventory system QX will new the investments that around

to with fans even pandemic diversification and strategy So differently in anywhere. Harkins unite opportunity anytime us remain expand U.S. difficult I the to home media an additional compelling ways combined strategies. can many with inventory while out the allow cinema cinema support to advertising become of venues of an our and challenges, grateful gives and and sincerely We the exhibitors operator power the new very entire beyond continued our as And our it extremely to stronger this acceleration will for as with in board, we thank selling in our began theatre movies several brought team, think brands historic new about also and expansion our network digital again, NCM see, execute largest our Theatres, their the business fifth our movie you This and partners. of them navigate together. company time able network with multiple other cinema to to were engage turbulent

remain, positioned board $X.XX related right Thanks quickly conditions at the the the ongoing and well have uncertainties quarter. to the year. dedication COVID-XX and that in we've work With started. our again, to say has momentum optimism truly pandemic some the our for live before believe we the re-establish to to recovery, we left that about dividends the feeling is our very growth this future struggling of can company a While I hard for our pandemic time honestly first strong that team, the than entire current improving more market created

now details So to I'll with the Ted? and discuss outlook. more about over our savings measures, that, to call position liquidity Ted cost turn

Ted Watson

Thank you, Tom.

business second half the are begin pandemic, in to seeing encouraging that for COVID-XX XXXX. recovery we emerge is a from of strong our As we positioned signs the

was with for million recorded the XX% open and we impacted revenue of network down XX% $X.X down still quarter only theaters comparable year-over-year, QX XX% network in our attendance As only significantly year. was last our QX in

in our of revenue is Given current impact versus on and and business pandemic adjusted our the of continued COVID-XX periods meaningful. significant us with prior analysis quarter QX the not the throughout

XXXX thus not the last recall business. QX impacted will do weeks clearly our represent quarter few pandemic results current only you ongoing of the As

focus and such, comments providing additional As our I of today on some thoughts success liquidity our business the rate, burn well as remainder our limiting continued XXXX. we our will much of as current my see how cash monthly recovering position, through on

$XX.X was advertising of meaningful in theater lack OEBITDA the negative million. any QX With adjusted total

to As and has allowed cost entire been operating overhead reductions OEBITDA the pandemic. the losses combination current case proactive highly few the the or cost our quarter our variable us the structure have and last during quarters, in of limit

QX operating million cash average related QX month $XX versus significant and was been cost has reductions amount Our $XX our A million to and approximately personnel. of burn per XXXX, rate million QX respectively. in $XX of

employee over month be or had QX, pre-COVID During XX% run cost reduce to million salary of our XX%, these to measures QX continue per or base to our compared of core of to a expense million savings $X.X of rate furloughed reductions operating reduction in up XX%. our $X.X

debt As past service high will when operating discussed of levels, XXXX currently which exit year. of as breakeven this flow be we we margins we levels in as growth XX% quarterly approximately reaches we achieved to revenue QX due build, the will our have after our begin restaurant achieve operating to believe cash

For payments by ourselves. payments in recorded what are the earned per encumbered the declines AMC on COVID-XX integration $X.XX we loss theaters quarter, pandemic Carmike the diluted the XXXX. QX attendance diluted those business. the versus integration versus had again result on cinema X.X to NCM resulting AMC share theater GAAP based advertisings million could $X.XX decrease from have reported a on quarter, impact of year. loss primarily the and a The of last related In significant theaters first first network other zero unfold we share This was earnings

payments adjusted compliance for are partnership distribution are included the to not as in other reduction are reminder, integration assets as OEBITDA debt the revenue encumbered added theater reported a they or sheet. As but net test and OEBITDA recorded and intangible adjusted balance on purposes, to these

at $XXX total at LLC Moving to of million our sheet, $XXX XXXX. our the debt of cash QX the the of XXXX versus balance end net QX at $XX NCM end million increased million

had bank at was the at rate interest our $XXX the including term a credit X.X% revolving debt rate and facility that of X.X% QX X.X%. floating end old on rate debt of approximately loans XXXX compared average to end approximately Our million QX of

balances of was the the balance million debt had is NCM a including current term LLC of $XXX.X B revolver loan is receivable. XX% proceeds XXXX Excluding at outstanding closed that our $X.X interest cash million in total end QX March and plus fixed accounts rate.

$XX half after we flow revenue $XX.X that month of Assuming burn million our to expected XXXX. sufficient positive debt and rate back in high year. believe service of with until to cash this operating produce top liquidity We flow an begin million per we average for June cash to have later build to cash margins begin the

a As equal to mentioned, we to debt service. after only basis XXXX of need on cash breakeven XX% revenue approximately

our The mentioned, cents As of an be current per price based this Tom on on authorized has result of share $X.XX. paid quarterly Board five of will today's quarterly May stockholders in XXXX, XXXX. in closing dividend X Directors of X.X% dividend NCM the common June share will yield XX record cash of The on of stock. dividend

of regular dividend discretion The balance considerably intends bank board current at years, additional next well than the contained historically three Company at QX a paid NCM or that the longer LLC the NCM XXXX. future directors. million end NCM The is for of quarterly nearly is the restrictions will $X.XX amendment cushion dividend for of NCM targeted. we can dividend to pay be current debt the of have of This Inc. in years LLC the to terminate no beyond the distributions cash distribution three recent Given with foreseeable $XX.X the what

to will the consistent distribute free and this overtime level related its flow. with to intention continue Company's We cash monitor substantially all dividend cushion

under agreements. Company LLC considers related credit the cash Company's pandemic at will factors the Board business of conditions, anticipated who any advertising restrictions the of relevant. NCM the and other general economic payable condition, declaration, needs, be and the Directors This consider of discretion always, and impact and includes of and financial will available to to future Directors, Board amount current payment, As COVID-XX full the cash, the the dividends that timing the market

there related business, impact pandemic provide to COVID-XX rapidly, Finally, conditions improving revenue guidance. a to the market are while difficult the number be and a adjusted web it of future to of making continues reliable uncertainties on to our

business you few thoughts with leave that regarding a said, of performance with the qualitative for So I remainder will XXXX. our

today, revenue expect would to meaningfully increase our in Given to I month June. begin know the everything we of

As network attendance expected weekend, begin levels first until films the is to several when Day to Memorial scheduled are up not of open. temple pick to

still revenue slate. levels monthly XXXX due year's QX, the to participate film as we given until because below to shifting our market pre-pandemic primarily the scatter in upfront However, will will commitments we be continual the less relying upfront of the on substantially last inability have of marketplace

for significant Fortunately, QX scattered of of up is begin a the week. commitments TV with QX now secure the compete firm film more in year, budgets we for Those our that be beginning aggressively and revenue. we begin driver can scheduled upfront just to remainder beginning will compete in next the to upfront TV that

ratings, As mentioned, significant TV about we in upfront of our very are optimistic meaningful decline Tom levels given attracting commitments. in the success

be in XXXX levels, local cases revenue ramping agriculture upcoming of continue in the trends, and consistent on breakeven by remains regional TV remarks a year, will that market flow further the XXXX, to the better decline restrictions an decrease and we assuming COVID-XX back with of With debt than call. should up to have to required allowing and towards this we levels success rate and theater this earnings service booking government Given by outlook, accrual of a it and Operator. we This that is of that the be understanding will a an guidance an QX at every more our of the quarter achieve for general And is end firm lines QX upfront second revenue after that prepared scatter of we passing we our questions. run concludes turning attendance now update during expectations. basis. and the our the schedule our week, expectation to upfront open cash expect provide business continual national and monthly end QX up our our businesses, XXXX XX% will

Operator

Instructions] Wold from B. Eric Riley Please with question first comes [Operator ahead. go Our Securities.

Eric Wold

A questions. couple of

more Just maybe of are bit audiences one, waiting for noted of on national markets open, they're a the average their define in kind for advertisers terms what on some quote looking the the in kind of return there? was that we terms of when sidelines a to decisions you of capacity, guiding kind scale, that maybe of can little what

Tom Lesinski

with Yes, of our just opening. of and levels, But longer they now restrictions week just or I really opened couple that I a our of know theaters more activity more just under not don't two much What XX% network the seeing three almost think the last are any matter another data. looking getting for it's post the think more it's or with they with open movies in and any movies actually audio have well, belt. we're already a so of lot

I time to going together a months, amount don't a fundamentally I for towards, candidly, side. of really then levels which happen couple should June, weeks. Day stitch with time of important think being the of be based next Memorial more looking in having. movies right And to revenue right in the attendance think of running, the and being, the and off is matter So, growth towards and July need that we few here a RFPs just meetings, relatively We anything and it's just wrong short there's we're on period discussions the now.

Eric Wold

the where to wanting entice to advertisers drop it. into Got the not you revenue would driven of recoverable? And not CPMs back the balance that they're wanting QX, scatter majority noted market, to by you scatter. How a with point

Tom Lesinski

asks It's purely about looking sales there agencies with comfortable their very positive. just I comfortable terms or and been no looks because funny that funny. of to release of candidly making the our for has all time question meaningful going. clients in even team It's There candidly a is going they're schedule and this on and not CPM. all theater discounts. of asked the discounting on sure with issue is any that This And that are with what's discussions

a and built continuing we've So do to premium XX the years, over that. CPM we last plan on business

not academy, business to in we be. to the we So, we're been haven't discount asked be don't have and

Eric Wold

you about the data agreement And you for terms anything in up talk give more then final had what get terms if in return of what data coming to that? you of is what of question, level movies, to you can

Tom Lesinski

But a going was to get made a to third-party. get licensing we an disclose Well, agreement to market better deal We're not data. the from based data length deal that it arm's an of agreement. and economic specifics

the believe And but use just important way at additional it's data our salespeople significant One Already movie deep you data, is the is, been the having the getting kind and and the third goers strengthen our critical they that to to of additional that really to of to on of in in go Facebook on do benefits. other interest to our making We the growing data about cinema think providing and to that we information growing having when about CPM business will pitch. and for other and best not same exhibitors CPM plan in two piece consumer a this a others theater is level, detail. knowledge I Google by. around data maintaining data. business and and But continuing ourselves. really quality it's data going get of amount have providing when we've look wedded parties, possibly

gotten better would. half we would the this. about than database, data when the excited quality a I say old year plan would the out to But as So as has since of do now. we're to set really it's It's first thought a and we have even really it we that fast growing candidly, about

Operator

Hickey Our next Please question will Company. Benchmark go come from Mike The with ahead.

Mike Hickey

on commentary double that? curious you look of 'XX I levels. of trending your to that a going on XX% like that supermodels think be it help is 'XX that sort XX%, just think there, appreciate revenue? will click that is by commentary towards And Just back on expect on bit size improved implying you end 'XX, of the guidance to that 'XX revenue you help sort be Can

Tom Lesinski

going in optimistic percentage that the to We the to I I'm heading and QX, I'm on we'll and marketplace, in getting feel that relatively towards Well, specific this where we just lead in say start general. 'XX. of give happening closer into based a things soon to you were not are end going confident all as closer the as today.

I for be opine appropriate little in free want more it'd to. But that a think you next to Ted, feel our the if summer. call, on

Ted Watson

Mike, to it's about XXXX. clearly talk too early way

the movie 'XX back QX we belief I can levels underpins start the think trending for what slate. is our that towards XXXX really,

everything it's the been think and going from restrictions we've seen maybe I've projection to by what to with for people it's with slate. people movie people expected theaters think get XX% strong flat lifted and attendance quarter. I an more we've will you down assumption But that coming back be seen XX%, that projections vaccinated is either movie with be optimistic that more line continue will thank seen can So to to is or I attendance the and date encouraged XXXX. way, our then in be a I've right. to

to happen, assuming belief a do said, that with that seem is discussions as getting about plays we're need as out things we And on our to if feeling upfront the significant we but exit XXXX, close we're amount business, of the So back be feeling we that. sides. those XXXX And attendance towards pretty good having, the upfront Tom two can levels. we're good

Tom Lesinski

new a teens, and add, as are I approved Z delivering and data of to I as is leaders advertisers. in recently, for-XX would XX-year olds of we to millennial think the Gen vaccine literally one today the government other piece the the thing relatively

goers to rolls that that immediately audience, bring only and will platform. vaccine indexing highly very more core teenage out they're And great that that that beginning know that movie we us confidence more get to to group. they're help in able advertisers As teenage vaccinated now our

Mike Hickey

pockets the your happening then strength attendance of happening, you there Thank long the side, to or you're of view in with see what's your the network? at across virus have they're of strongest is recovery or just specifically, open, how's national And when but Nice. CMI curious the I you it's guessing, top do more if I'm markets. markets for sort and slate that. been specifically, that seeing now curious, on broadly, guess sort needing in I'm recoveries where the has it top offices? purely just And your it's with how theaters of if you related, main national sort your look

Tom Lesinski

are opened I opened open a major that well later it's that. markets around intuitive, been obviously ones not relatively while. I markets doing as have the can try think as to some specifics that the for give you that that But the

and So what's Francisco. going Angeles and San the Miami and you south, in markets been less the have restricted, like Houston, been then and think New Dallas Los and York far where in southwest on

this least So in current I the been restricted. era, during this markets haven't it's been COVID that think, speaking, at generally

Angeles. seen a and Chicago, York, already have in response New though, in in We great attendance really levels recently theater Los and

and and opened So in our these immediate three biggest Chicago, an have network. as we're seeing in York Angeles Los up, restrictions obviously impact the New are which markets

three past southeast so, been I major the markets, the But nicely. or in New it's southwest. think for So mostly recovered just have generally all now, months, the the York month past particularly and

Mike Hickey

capacity would heard I feeling positive Do looking metrics question Google positive? the other sort we some bullish the seems data to on and even as quarter. should cash that will here commentary Maybe What's third there that? level? view your the average cash flow XX% third be another that that be to attendance it very of listen you to any that ability sort can thoughts can an last know, have of to as and I relates on you of guidance, that in think to your he of interesting. for revenue be influence XX% constraints utilization Maybe flow the quarter? Or how sort And XX%? me, of deeper in CPM be

Tom Lesinski

want Ted, to that do one? cover you

Ted Watson

XX%. think my XX% for could many better it, or be say, at capacity on restrictions, to I be in able we well, But, would places above I already deliver Yes, that allows that. to us

other set course of the AMC on it was the in that, of day over think network their call I like utilize only they year. XXXX, earnings that their XX% the

it there. XX%, Tom opening guidance, generally, run Again, an So, even weekend into don't there's as but being I I on clearly, CPMs an that, you said, of think without a might fine availability, with temple we're see plenty giving issue.

want business I driven the think particular. point the I it's it just going close be the to have other and to highlight scatter neutral the be will to the I that QX of basis. think by will the would emphasize, flow the QX QX in script in from one accrual I I But be said upfront, scattered but benefit we'll market. on is cash an ability

of And on XX that, working call clearly, get revenue. better so, we I a from it again, mean, but the capital collect P&L, XX% to by to the we're days we takes perspective, if about revenue,

even it's before that late So, you're going you if XX% to by be QX, cash. revenue, QX start collecting still

So I to from there? build and not assume out would bottom to to folks QX, build starts QX would, in it begin caution that probably cash in then

Mike Hickey

this given for quarter. issue quarter looks I one, categories in think like to compared bleeding one, pretty fourth shortage, that's It fourth the ag important terms challenged others, the from maybe of supply. out chip last auto, i.e., quick One you is

Can just that You at look quarter late a mix also the give the you us categories. expect and new mentioned, fourth brief in 'XX? maybe some you'd sort of into

Tom Lesinski

who is media, continue streaming shortages. that's streaming I QSR would the in pandemic. every say going and then, biggest automotive of chip not upfront for to that, a we're be the both through probably probably the and having to to particularly course, core supportive. And advertiser beverages, us they've is after supportive. companies. and alcoholic were category been category, also entertainment next still in CPG the category big and but Insurance, those automotive company the So been in is the social Including

Some are and some aren't.

deals of books right chip gets have more with on And expect we companies the shortage have the cleared automotive as now. to We those up.

the be major particularly some had to relationships past going the for not has with interest been all have really local think in for continued. the thanks during and with decade. a reopening standing heavy At I the to Scott cliff we've markets, pleasant us local. think we've categories. those the to relationships now, team There's category gotten which most half. our we've think the digital have it, That's from least we've fortunate on I second been, have in lottery surprises And we in in business. that that the long been leaving I And particularly not

Operator

Research. next ahead. Our Barrington go Instructions] Goss Jim come with will [Operator Please question from

Jim Goss

an Let screenings. over what of me notion IMAX a in yearly impact PLF and wondering experiences have with I'm be as start with might particular premium indexing And the recall. that semi and

I'm business? the in experiences? have and You in necessarily IMAX that more same exposure just influence might But maybe wondering don't how to that have of the your would PLF degree disappear blockbusters

Tom Lesinski

screen So, the head screen Jim, get what format a of can I that screen, all network on are is you our widescreen medium or or count whether tell tell screen we those the paid attendance those attends same. my based someone off larger formats. larger top eyeballs I and can't you we percent or in of smaller a

theater benefit formats to choose normal as screen to benefit other larger from the size formats as well. and if index if will goers return And people So to go more that. will

the of get for and of might regardless So we sort trending consumer or be be what that will rewarded that. choice credit for

Jim Goss

they see see been because shown to the you ads going the don't had screen? you're really Okay, in

Tom Lesinski

and the depends, you show do all don't. some large What know, formats of screen advertising some

but to depends. being So the noticed about. percent haven't Certainly we But so talking I I'll category it different, attendance it. into we're certainly far look you you're talk I'll, I it pull in to screens when really what anything try our of as can later, relates to fall

Jim Goss

Coke a those and things either before are here? long and PSA of there's categories? how ad, those renewal you performing And

Tom Lesinski

is or and that the so whatever by certainly Pepsi, And negotiated is the the controlled a share relationship get really revenue. one Coke that for both or of we relationship Just clarity, beverage exhibitors.

often on I inventory do, what the don't negotiation they're to. released, or The of to contracts are visibility those local founding a with that's paid have the key national do they're those decides exhibitor our length the As of beverage basis. core companies. And those inventory. time is going not PSA It's some members really what something

So on an impact it's effectively revenue. not our

Jim Goss

Okay.

wonder I ads? premium of ads, inventory you about lifestyle the if with presales any up any guidance brought You had those the

Tom Lesinski

lot that I specific, getting our interest there's in plan show of a and post Without tell can of inventory. you

think be able on more would we'll call. premature to rolls be this give specific But that. earnings when you to I the on around call it that next visibility do

on just a that. we few if give visibility more you months, So patient you're for can

Ted Watson

is Ted. this Jim, And

IMAX Just and first premium formats. back ads question your premium on to other serve circle do screens to We on formats.

So that's issue. an not

Jim Goss

were Okay. developments. I sent I noticed had me they think to someone was and to of I recall, couldn't part just trying

Tom Lesinski

vast show of advertising show. of theaters are was But the the or exhibitors all show post in that in pre quite carrying don't them, one our spectrum across majority few of them. entertainment Very in advertising the

Jim Goss

TV one. still as it's the bigger if big audiences have market. When you was, as not I'm your you even as seen pricing overtime otherwise advertising, because premium of have could better occur? their gotten Last some it you Have it's and might if that that was phenomenon, pricing. mass it than help has still gotten to Okay. that a broadcasters wondering their if only smaller reach way

Tom Lesinski

-- Did Let Jim you answer if to Ted. some ask you call could it or that, expand. just me follow and you that

Ted Watson

not Jim, sure. Yes, Did expand on you that? I'm

Jim Goss

upfront the that best if theaters you helps during And size the have decline wondered sort even audience levels Well, I the bigger any if a again value in and of otherwise the of get this pricing of just you phenomenon still they offset even audience said when of when some scarcity when absolute the of overtime I the upfront with increased level, declined network because scarcity in involving some some at your pricing were of just example, could the has for audience. less. there's

Tom Lesinski

we'll can strategy. like to see where what into the Over the say the just new I anxious that pricing as upfront, our is in is QX, case. period What we starting go pandemic now be the upfront to reaction television been as hasn't we're

just As Canada, you has CPMs and broadcast the some cases In around. of CPMs than up, we've the because expensive many most in expensive far world in to television impressions scarcity go more there enough certainly got know, driven television industry of network the cable. isn't

be of take So to the it's as upfront. a scatter situation. next six and televisions GRPs able we're because we'll go of lack supply But advantage of months through the under we of performance confident demand that

Ted Watson

your extent all it just rising the that's CPMs doesn't question tide on increase, seeing lifts ships. would to of one add that hurt to that that It's certainly us. dramatic television, I Jim, television a those

perspective, into So perspective, what see I as from get we that from certainly we'll we pricing but a tailwind. get help provided upfront, the

Operator

I would session. Tom to like remarks. question-and-answer our closing any concludes turn This to for conference the over Lesinski back

Tom Lesinski

you. Thank

positioned previously, is theater earnest and As accelerates the very vaccine ads COVID-XX I year future leave behind for in reopen as focus to and the well last us and and mentioned the ahead, on we're we a opportunities returned. as as country out rolls difficult the begins

the see the all screen be launch in XXXX with research our once demand delays, the to big indicates the looks years. strongest films And film again. say of to on strong XXXX consumer All films

to support and these during us on We safe efforts call that seeing begin GRPs challenges expand the last declining base, additional to our the diversify optimistic attractive even and the look senior management and healthy. their audience of our TV well. initiatives and to lenders So offerings forward for to the and joining of and the thank network, again our as despite and at team about for media strengthen movies. video cinema very working and you. the advertising soon you all work hope our impressions patience again I'd and once staff truly hard share, our continues Thank our as these our shareholders thank advertising and hard make to young year, everyone to times team digital your more capturing I market are stay difficult buyers. like to appreciate

Operator

now has concluded. presentation. conference today's The Thank attending for you

disconnect. You may now

National CineMedia (NCMI) 11 May 212021 Q1 Earnings call transcript