NCMI - Earnings call transcript Q2 2022 | National CineMedia, Inc.

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Operator

Good day, and welcome to the National CineMedia, Inc. Q2 2022 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Dan Dorenkamp, Director of Finance. sir. ahead, go Please,

Dan Dorenkamp

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

turn over Now, the Tom. call I'll to

Tom Lesinski

quarter everyone. our XXXX call. and Dan, Thank good second afternoon, to you, earnings Welcome

cash the midsized growth, have movies surge action comfortable of momentum. fifth a theaters, In People to only being returned on our Americans also family, of quarter films. of and to out to of once the XX% space. the return revenue back the feeling buyers second earned article believe are and ready with released said a in a of more comfortable are was quarter satisfied multiplexes recent is trajectory demographics theaters, their analysts study, close returning is them rather being demonstrates straight XX% positive two big but the the This film others their are consumers combination for of dark the budget screen on the and hard to feel TV. worthy share not the at for of big that shelling with home Separately, the see theater and variety, all tentpoles, ticket magic film to our than The are recent continuing a from according made “Movie screen. attendance to again factors. lower Fandango year-over-year on

unspecified the Sonic becoming value opening the time. up the Gun the one to Journal exceeding $XXX has Paramount's was allow grossing of primary start the longer reaching million Paramount’s this weekend, The These up, in all of of as The outperformed noted film year, benefited released. Top a nearly the of with Paramount of moving as opening Wall film service feature second was Madness. HBO Multiverse and $XXX its much-anticipated service. to its domestically the weekend, release the exclusive showed success Day XX-week window. on million. the Strange run, release began Memorial on the The in on the in Since since of of quarter million, over longer Top first cinema of massive Batman, reach typical run Warner was streaming another that quarter highest past Rise crossing release strategy time went the Recently, the Dominion, Gru X, Minions: XX-day expectations theatrical films $XXX noted On million theatrical weekend opening than by the million Similarly, for that a platform policies followed Gun Doctor theatrical Families with blockbuster its before $XXX weekend pandemic. million to Hedgehog significantly their marketing an Top with $XXX exclusive Street that Gun of their $XXX weekend. World streaming and marketing also distribution extended Bros and second have at films. from the of demonstrated in Jurassic week second PR length

cinema XX% barrier Pandemic the began hit or Then billion China June million XXXX. in over office time approximately levels. weekends. was million. during revenue also the last straight monthly office demand XX% in June time the fact, box box The hit This the per the has $XXX that as of of – this than XXXX. attendance in with the holiday broke first same box the is strong and strong, almost the XXXX XX% expands, quarter $X release trend experience for to and the season towards levels. month second demonstrates billion film of office In for back revenue XX% – in for the that XXXX. historical office driving That's box XXXX of continue to XXXX, higher office film the $X.X very And $XXX consumer May, industry happened five schedule since returned box of will

The will releases of Wakanda use to many in tentpoles editing continue followed on several of Black and and November and months, Panther: from Forever, of that, number companies Black for pad to opening quarter. for XX highly next benefit release the films. their anticipated by fact mention scheduled fourth the the the the with exclusive film streaming are the have launching Way as the Starting to begun few the The the will Avatar: delays sequel Shazam cinema over While constrain production Water also Adam. not in Rock theatrical lease

into bring media anticipated, the that there, and quarter back their up had the numbers when slate cinema is show audience we demonstrated big film As second you plans. in marketers

by teams, quarter OIBDA, exceeding with our to resulted our clients it's cinema, the just Turning second sales and our not adjusted of midpoint key on upfront being back media lead-in positive is use efforts cinemas a that combined the The great to story reinforcing season. our our during a coming in guidance. ongoing regular coverage revenue our reported strong during and analysts. conversation marketing the attendance media from The for with and outlets providing buying basis is advertisers

upfront pandemic, secured context, to an was of our process. and of annual selling revenue the For this prior approximately XX% average during calendar TV national

in compete during a XXXX, impact to – had and XXXX extended inability selling of to business. commitments in progress XX% significant making the 'XX and upfront we're aggressively that and with amount is upfront XXXX pleased secure historical report on our upfront me, period, to of marketplace, NCM and annual three-year combined great the average of upward XXXX to the Our limited commitments pandemic Today, the XXXX very in season in expect excuse COVID. prior and approximately we the

provided pandemic. years this XXXX/XXXX of X past leave than reliant year reliant much will upfront campaign national that base reliant -- on successful the much even Our that a leave in more will QX market has the scatter strong and of us before bookings less than beginning us the less

million, quarter in was the $XX.X the revenue national revenue the quarter sales for the quarter fourth highest began. performance of for of of million, our XXXX. also quarterly quarter the total quarter pandemic second highest was National second Our XXXX -- $XX.X since XXXX,

than XX% revenue size of deal Our quarter was average the nearly XXXX. per average second client higher the in

As coming clients and most meaningful are making pre-pandemic of our back commitments.

and And ability In advertised network. our come new of many team's clients with past are back have clients into five our fact, who securing years seeing the from the verticals demonstrating and quarter. platinum had with to XX spots not the in inventory, develop us for strong those economy, second for on behalf pivot all new entertainment, of NCM. our We're client demand finance platinum social media travel, also

five our premium In -- consecutive fourth Platinum in commitments of with addition, making we've ad secured the quarter, third and quarters most unit. sales advertising marking

rebuilding On front, the up category, of segment growing same our in XXX%, quarter accelerating our the experienced has our to to XXXX. and issues more be business, compared much of to those local of Education top-performing been been of Health continues the XXX%, being and more our XX% ad quarter, the high chain quarter local has XXXX. to than out levels the directly up business. recently went growth have second was local care companies year-over-year second government survived smaller pre-pandemic was inflation. local supply That that with Many slower national ongoing said, impacted by business business compared the by the

developing quarter call, earnings first into sales investment media into our well-underway. during company leading we is data-driven NCM As shared our

first the XXXX a XXXX above XXXX. of second percentage higher business strategy, While revenue, quarter the the -- and to second total continues digital XX% for the half the revenue digital an of diversification of our was XXXX half quarter be second me, than first small excuse our for for still important XX% of half

our Neustar. is tool integrated expand upfront databases clients. to new our market customer already continue advertising to also integral making proving already strategically an and marketers, platform further to with and for we capabilities, the coming intelligence event recently XXXX data more strengthen NCMx, we to and on-screen measurable We which our To attractive product XXXX, NCMx, and sales important announced existing data be our

improve ad real-time and are underperformed. for on the campaigns industry clients Cinema deterministic brands where big of with solutions. founding one online screen data for more more Expansion also cinema optimizations ROI. plus our giving We solution, we critical, cinema the apps, clients. through largest member able making has now clients, into of business moviegoers, ability make new and ads advertising sets the of XX% data deliver more for Through with feed lifts exhibitors, of QSR our now that attribution the us our NCM own historically to marketing in We're through Neustar partnerships lead sales now to properties allowing TV. effective to CPG capabilities the able to audience innovative and meaningful to capabilities elemental measurable have two is NCMx to shoppable partnership and our targetable, our the contributed These categories to

increase app metrics as such purchases tools have helped Our in-store in-app traffic all clients outperforming new downloads, our CTV and business norms. key

Our is with our contract increasingly of size to more contracts XX%. local year-over-year up and also number the XX.X% with becoming important business, strategy digital digital ad than increasing a

and the total finals over period boxes Nielsen in up in XX% XX our of on our for we education QX, outperformed Epicenter, of of the local our against broadcast the audiences, For tenancies the represented of the based six the XXXX, weekend first surpassing was North the network. demo. movie categories. coming playoffs XXXX theatrical opening with second XX% of strength The in and care all top during share and to same now United to NCM. health grossing business network market digital the return XX nearly viewership theaters quarter, of government, months the We NBA of in have XX-year-old XX% the States to XX According the American

XXXX in to against topped Prime XX every olds week XX-to-XX-year XX. we and year-to-date, XX XX for Broadcast out weeks Additionally, of

all of XXXX, quarter During all reached according the NCM In Cinema topped XX% also reaching of first half cinema nearly XX-to-XX-year-olds, second XX-to-XX-year-olds. of quarter data. XXXX, to by the Epicenter of out

any is In proving times' to most at times more better and Social than three medium with recall addition, better the Broadcast. than Cinema have engagement three recall times than engaged broadcast, two audience

XX% multi-general each to Dominion diverse Network Black, X% Television Hispanic Jurassic for the Our Network. XX% relational Television one audiences outperforming others. World week, Black example, and Latino, and diverse XX% largest delivered largest Asian XX% audience the with Hispanic continues and second XX% be most location, of the

medium now than on a XX-to-XX-year-old demo. the young, audience for players average are movies. began diverse the endemic and simply reach opening There reach better Higher to at XX% are no among demos We Gun, diversity second Multi-generation quarter also seeing movies. audience for only experience Dominion, XX majorities the and return was with of be can storytelling over are great the Top the provided and audience the World XX% to the over that XX%. Jurassic at immersive the The weekends.

Elvis Gru. older Guys claim releases age the to smaller Bad hold over in only Minions: critically Hedgehog broadening Rise audience the X age recently, We midsized for Sonic and and also families XX% frequently delivered from XX. also several The usually more demo Rouse XX and that with films an of saw XX%

data these provided have with marketplace. strong of tools in end us All points the selling

devices. increasingly their of markets brands marketing sector the clouded to from more resurgence software have an continued further reflect and other decline benefiting out-of-home shift also available are appears new and due to of begun that in differentiate marketplace. other increasing Apple other This on declining allocate social We privacy platforms to government TV production effectiveness digital ratings the user budgets and regulation platforms to and their media to of in recent

continue digital and current platforms their to strengthen continue. ad other to trend we capabilities, data this out-of-home expect As

about trending NCM's me again audience tell its the can reach, levels, value the to you our As diverse consumers by cinema towards very of young, tenants once and with theater after pre-pandemic future back during excited coveted target and sought with ability advertisers. being prospects, broad network experience is before

our ROI tools, offering our has greater. fact, with measurement of media the over In been integrated the databases strengthening for value of never and movie marketers

recent performance While I we about still to Ronnie, up With structure, and and cash financial comments now we building in do update rebuild Ronnie? some blocks to provide to future the still that, work base our to I'm our the recovery. work revenue outlook, you confident the place do have and call debt are right-size pass for flow our will on our

Ronnie Ng

Tom, you, everyone. afternoon, and good Thank

results the business, to seeing the we both and recent to to lovers the Our validate advertisers continues in quarter are cinema. as movie continue momentum return

For movies Top revenue led and slightly by Dr. adjusted slate consensus drove A World, strong also box Jurassic office the OIBDA second exceeded Gun, were of in compelling results. estimates. than Strange provided of quarter, and guidance Minion the better May we and the our midpoint

up great second We last began. box also start quarter quarter store. the office of Industry-wide, level of the highest box performance to larger-than-expected a nearly was opening year, got pandemic quarterly off was office with the a from and the times since the three third in

the our year the national plan. signals for our year. KPIs quarter times the position encouraging up that we middle future the prior two for the was With begun some was have for and as the the range. the with slightly who, X.X for the once include are long-term million, partners, very and last and prior cinema second to upturn seeing in revenue quarter advertising marketing our of us in last revenue Local $XX.X was well quarter of Total second Tom more than movie to in mentioned, again same the up million, second from attendance, $XX.X revenue highest period for the nearly year revenue continued times their guidance compared and marks to above times five National which $XX.X compared years. two up quarter regional was million,

audience. deliver strong our the second quarter to a during high-quality, demonstrated slate expanded network large, advertising of at operating our second Looking metrics, quarter, clearly our releases partners, box ability attendance to young captive With with off.

attendance since $XXX and For million, reported the second quarter, the we our also in network theaters four of level pandemic began quarters, quarter attendance $XXX.X second last million. the XX% an the of This represents exceeded where the had improving highest XXXX.

our pre-pandemic our the will While just of we meaningful this is still progress where is to XX% business back below, ultimately be, think from improvement where it norms. a first quarter attendance we was historical representing of continued over levels,

so far long theater office note again, very strong it after per consumer of the two film reflecting is lockdown. this demand COVID box experience up XX%, that once to for a year addition, domestic important years In was

attendance, to had that the the sales increase in of we With that the impressions sold, platinum nearly fourth led quarter XXXX. a equaled in significant of second quarter higher which

and In quarter, addition trends primarily to we favorable higher during to volume continued client our to mix accelerating sales. with the see a of to improvement our side due pricing, the business, platinum

that quarter during to levels. also advertising Improvement XXXX of making first CPMs by to the second X.X% the national accelerated pricing XXXX the second third consecutive pricing in XXXX Our which improved of substantially exceeded in pre-pandemic compared improvement this XXXX CPMs quarter XX.X%, of quarter levels with over quarter compared this exceeding quarter levels.

of for result per XX% improving attendee total the quarter As similar metrics, of XXXX, a second a our level again quarter. revenue to was first the the

XXXX Our ad helped national was the offset to for quarter improvement of per our attendee the business. XX.X%, softness second of and local first advertising XX.X% quarter an the to of in

second of advertise demand reached the last have the the releases, slate quarter operating quarter have demonstrates of insights improving XXXX platform. the for our the closures, for per of in expenses to by Since strong quarter, the of fact, This advertising our to that to across period XXXX trend operating in second national was theater XXXX. marketers same with we our first meaningful provide compared months In impacted quarter XXXX consistent two out second of costs. attendee clearly

and was network of inflation. compared increased averaged cost Second quarter to first amortization, second related also revenue were expenses primarily expenses higher to to business. for administrative increased operating approximately affiliate a X% increased million our to million quarter. access management, of to quarter, In higher Both was This expenses, month, excluding pre-COVID run activity result effectiveness and $X.X quarter. reflects theater Selling despite strict approximately the million of quarter. stable the The depreciation seasonality compared and to and $XX.X $X.X increase of million fees compared approximately month as the the a for the marketing first the rate $X.X the core costs compared increase our prior of the costs our savings which per XX%. per remained global quarter, operating related

$XX.X compared OIBDA $XX.X adjusted bit in quarter a guidance million of last range was margin our negative higher for middle than a of This year. May. a the XX.X% was Second million provided to

start quarter, months. achieving This adjusted margins current Looking of OIBDA led pandemic. OIBDA the meaningfully throughout adjusted the at monthly highest the each June, the to month the during and improved three since

as at the is levels. platinum patterns $X.X and Integration our due to quarter historical XXXX. high normal during more great In the builds theater pre-pandemic of theater leverage scalability see encumbered business effectively, unit This month million model. compared business payments June from addition, the points back margin historical that of reinforces to to our to was operating same AMC for our perform returned OIBDA and positioned second also the $X.X to adjusted to levels, set margin view and we other the traffic for high well and were million margin our period for which

balance advertising earned reminder, theater integration compliance as other to on debt adjusted As reported are These NCM have recorded are sheet. integration are OIBDA those by adjusted had been to cash are but based added the payments included assets distribution theaters purposes, and intangible or for in payments and OIBDA they on as could encumbered teams. a sales net in what our reduction sold not a partnership

period, from revenue $XXX increase XXXX. $XX.X was in times to for an total $X.X XXXX closures million Adjusted six-month increased the compared our to X.X OIBDA million For six-month period of $XX.X to million XXXX. in negative million XXXX, due theater from the

The of per the share of $X.XX share $X.XX XXXX. quarter loss loss GAAP quarter second was per second diluted diluted a versus during

For diluted loss six XXXX, share share $X.XX of a reported to we XXXX. diluted $X.XX loss GAAP months per of in of per compared

balance Inc. which compared to end quarter. the consolidated in LLC's at used revolver average our mid-XXs sheet, to NCM the year order NCM net was to the fund that future increase $XX.X for was $XX debt, $X.X investment which Inc.'s net be of NCM, approximately return cash of overall XXXX, second the NCM, million was million during end total NCM, XXXX. priorities. in corporate to This of opportunistic could was Turning secured price The the in X.XXX% Inc. other Inc. billion cash the made dividends LLC $X.XX acquired debt the and NCM, balances at related then the quarter on the notes, to second senior an increase in of January at billion of funded

primarily in higher a quarter revolver for rate X% to the increase new was Our due XXXX. to and the of quarter X.X% that second of all funded This XXXX. rate million was approximately average January interest $XX for on was debt the compared

total had minimum our quarter which million the that availability of LLC revolver the from $X.X XX% quarter covenant end Excluding of excess the to end $XX NCM increased under total second approximately of million. to balances, the including was $X.X revolver, LLC's of by our release NCM the liquidity liquidity at million of million letters debt was and was a our interest NCM Recently, $XX.X requires revolver. due availability of revolver in $X.X fixed our rate. million under at outstanding cash quarter million, $XX.X balance credit LLC's a the approximately of secured liquidity end

after $X.XX Inc. will NCM, equivalents be Directors purchased current closing of declared by million record NCM quarterly the by quarter Board was dividend dividend million, including yield NCM cash on NCM The and financial The Board payment XXnd, approximately of XXXX. bonds the base today's common of Inc. $XX.X September Our liquidity. based was in On of LLC million $XX.X will of and results basis, cash end flexibility recently including of million excluding Inc. a NCM, consolidated balance, the and of Inc., owned the of stockholders of $XX cash stock. Xth, a LLC's $X.XX. total Directors at bonds annualized Board by price prioritize on $XX.X X.X% $XX.X NCM regular an value The per share payable currently Inc. to dividend August dividend XXXX quarterly cash be to approved The balance on share continues million.

continue consistent our NCM work with substantially LLC. the to of cash into We the to partnership quarterly operating free dose. deleveraging stockholders This to future of flow expect foreseeable distribute as to Inc. we is during all company's through pay a the the consistent NCM, intention dividend

the declaration, in Directors, of at always, company's financial of and of Board as sole also the will timing will business payment, However, consider the amount market and general be advertising discretion conditions dividends the who economic condition. any future

impact note our recovery our back business to the on business, as recovered COVID-related spot of through very is film well respect potential are the our cinema schedules impact has delays With recessionary we back. periods. levels, production to done process economic and its some results That evaluate built very have continue trajectory of the We release will to flow. important fully and deliver as the and that attendance advertising to our less ability historical our to and it by the value flat historically, a to builds economy theater said, partners from encouraged broader

we As important one of fear recession, price categories marketing short-term expect be to client may of the categories And such trend continue. entertainment, forms and that depressed to years available, as issues the supply increase and and last may their due over abate of those chain products couple thus, those to actually continues cinema been marketing expenditures out-of-home while in auto an of we budgets. certain have as lowest of to the us, cut issues already many become see more

XXXX While late we that only release positive is during to look we expect the a expected expect XXXX from Therefore, fourth early a film revenue as and delays schedule as marketing. be the quickly begin we to Currently, in into driven upfront editing fall COVID increase be stronger million. for a $XX we half, film quarter dinner the schedule results and quarter standpoint, we and to to by the production $XX third a that number between to and due summer the is of towards lighter difference and second XXXX. films third again release quarter, during a fourth expect will lockdown, quarter million expect clear offset timing by

during the range quarter cash CapEx third adjusted $X million and OIBDA million approximately between of interest $X.X expect $X expense and XXXX $XX approximately million, third quarter. to million We with

million end of year on between core revenue OIBDA are Despite reflect being monthly at impact the revenue some conservatism to range year-to-date optimism the million for reaffirming of schedule, conservatively a month. between we our and million of strong in are our impact spend. film $XX upfront respect year to advertising with to full we $X.X and strong full expectations, $XX about of $XXX QX small adjusted $X.X our and and million resulting OpEx overall the adjusted both With per lower ranges and our the OIBDA $XXX positive million. guidance annual The economy of the successful our QX, expecting of

and $X to $X.X $X are reducing platforms positive business summary, continue from the year In general expenditures our concerns. We momentum to digital with face decline to advertising for million the $X challenges outlook of for to privacy we other million capital business in to XXXX expected as very continue also in build million out-of-home and the full see TV million. and ratings a our social consumer

Also, moviegoers return place and for databases to networks. and to as we our moviegoer ROI our will to in Zs find advertiser marketers there's As tools, to theaters, strengthen National millennials better partners. no ad our our Gen become more and continue CineMedia digital network campaign valuable and more

of our Given well begin line our all of please start and these free favorable levels. meaningful business Operator, market to again to cash generate and the to once back flow questions. is the our positioned value historical trends, process deleveraging for business bringing equity open

Operator

our with first [Operator you. And today Eric we'll Thank Securities. from take question Instructions] Wold B. Riley

Eric Wold

kind QX, of the of are Thank into in for the deeper bit kind little giving and maybe guidance what into for baked you. can you commitments the that in Good afternoon of what's in in there potential broadly guidance guys. that a implied off, more How A CPM versus couple of much quarter? questions. going terms year scatter? first I terms guess, the assuming of dive represent of you're kind you assuming into upfront of assumed then And you kind or there, in that maybe guidance you're just let upside increase? one the scatter

Ronnie Ng

Sure.

in that terms of versus again, very what be the that scatter XX% we've sorry, like a an year similar mix $XXX range And do in in here the revenue upfront full levels the remarks, quarter given or $XXX in $XXX call We of about basis. -- opening million economic to quarter, we fourth far quarter, there we million. on to the the and $XXX We're fourth range we kind there. has average said assuming historically, So XX% pre-COVID been just that on have again, upfront, to that some out to get million million in of to from do thus the uncertainties are said we company around of the seen always in have fourth range. the are XX%

So of we are for accounting that. little a

Tom Lesinski

pricing And best also I say, competitive. on getting probably the on more the we've by comment the think levels. upfront. the front, reaction we're over several holding And But steady upfront your we're on critical metric. will is versus from CPM clients that's been on upfront, I very scatter encouraged historical Eric, the last the months obviously,

will quarter didn't our have last upfront. and quarter, an Third we be

what itself predicated is is quarter by of upfront. is Obviously, and/or be fourth isn't of terms So one really around going turns on telling in QX us piece we're the really recession, how to if the some there of encouraged the or market economy one. the the the

key impacting scatter, but those indicator XXXX upfront not our we're strength a just fourth we're the the really relates quarter, on outlook So as guidance the ad really is as comfortable for cinema, clear based but it well. for that that market the the of giving are to dynamics of

Eric Wold

pressure economy, So was feel do the that both more manifest itself you would upfront? the Do there in of from whatnot, the you expect about scatter. the if comfortable solidity

Tom Lesinski

Yeah. Definitely.

Eric Wold

in something of June And to over XX in three looking maturities addresses upcoming debt give priorities debt of next years? year. the more address just the larger one maturities last the question. kind the a years, of around the portion June some try Maybe you to us work next out Okay. that your or first Are future

Tom Lesinski

want to Ronnie? one, You take that

Ronnie Ng

sure. Yeah,

that we've both as a So within June deal year. are, the the XX on maturities they again, been focused ones

the that given just definitely a the is depends again, credit it bit really where maturity are, I really present of kind but of fluid, of then where -- but on extending on are kind the that, we think beyond overall it will options engine. markets it is little focused this

Eric Wold

you both. it. Got Thank

Ronnie Ng

Okay.

Operator

Thank you.

hear Next, Research. with Goss Jim we from Barrington will

Jim Goss

platinum mentioned, and spots spots both you it consistency various in can some of as be in maybe those and you using platform? the the across will curious, you have greater the talk same was the I in terms or usage, entire of terms the Thanks. multiple creativity advertisers of environments, again advertisers might

Tom Lesinski

with, quarter Platinum of as a never sold now So some in the we to story. many travel interesting the well crypto. begin the on have We straight clients really as have platinum platform were of our including advertisers fifth

well. inventory and given a been is advertisers. the on upfront advertisers particularly large, we audience. scalable, existing probably valuable very to young The mix, location, We nice piece reach has got the a response do Platinum most it's it of buy as positive new between from can So you that its so probably XX-XX believe, today, far

then the of reliable three really a of XXXX, first in we what given platinum And is next sign it's time high we've over to and market do the that us to of the want Remember, full straight our the I positive schedule Platinum during in are COVID, right the quarter about we with ran started and into healthy over Platinum available had off one. and a to a quarters we So dollar very been it five as time for environment. a the ad sold the bat, little But see course, that's year. that growing number is we've the row, fact hiatus. platinum platform. This cost story as bit CPM, a release a in high was the people a when that only positive well back And with very spots fourth scalable. with

So between with and that post-show our in response quite happy that the we're from the upfront. inventory, getting we're

Jim Goss

is of recovery. fourth third maybe pause, through more quarter in I into pricing taken I are type the quarter, -- months, from fourth the probably obviously, of big in the but over volume-driven early same quarter really and with the what couple the about in to of guidance, say And would a having months all it's if and movies entirely recovery where it price less third October, it's mid-August a the the you the than see we're based next seems on Okay. down the this And lot being the wondered

Don Gayhardt

to how relates in market is now. for week the in Jim, It's will as as good the of QX as it on market Kirsten economy. the a local going soft in the a the I before. slate our impacting as of There's lot Train, say, X.X issue, release several from Jim, would I performance. other of on also quarter going scatter what's companies pricing as third light which space not media of And other But the half big much so it, and and an movie schedule. of marketplace second scatter itself of open-to-buy combination right opened by the QX. quarter end Bullet combination documentation what's around a call is recently a the as that's dollars last the CEOs going turn well the a is the scatter. at week the two quarter. -- last that the as about been exacerbated quarter as quarter of just scatter now, it both media the is availability into relatively the are it's Hopefully, But is in well think last, right things in that months really in been of the definitely in guidance

Jim Goss

and do recovering trends bigger a the not And which hope And the seeing and expectation? on focus was to quite begin accelerate, the you you think should Okay. wish premium numbers a should thing. which you there reversal in tended last office really or as you a are in maybe one figures more the dollars, expect as somewhat between Attendance slower a the need, attendance an gap be is experience than maybe we're a that box rapidly. that? Are attendants to that

Don Gayhardt

driving which correlation I office. more is office you high to screens, the expensive, think and attendance definitely a the box is larger ticketing from What prices side. box there's between the recently on know higher flights

lot year-to-date the to a confident single-digits to is and And between we're mid going be of good always year. more actually office pretty there's spread attendance years. going box levels and prior a that pricing. So the similar full for But to to about next low year look feeling we're

obviously, this. always the attendance you have numbers, schedule And believe all quarter. quarter, the know, and very the our quarter. as to excellent. is keep I track going So still fourth think of June fourth And But you that's that, carry good. we biggest mean, of to at release look into I we July, are when is particularly fourth quarter

to So fourth right we're XXXX. for the attendance forecast now about attendance it quarter feeling good and as the pretty relates

Jim Goss

you how do then premium an.. care auditorium don't -- CPM viewers be You your

Don Gayhardt

on attendance, based No, ticket is everything the on price. not

Jim Goss

sir. Okay. Tom. you, Thank All Thanks, right.

Tom Lesinski

care. Take you. Thank Sure.

Operator

will Our from Hickey Mike question with come final Benchmark.

Don Gayhardt

Hello, Mike

Q –Unidentified Analyst

Mike taking actually my is Bernado on question. for Hickey. This for Thanks Joe [ph]

Just talk prices? maturities great. you confidence the to back $XX just buyback, me, lower bonds But what trading especially XXXX at is which one given about with XXXX now if some for maybe the you million could bond concerns liquidity, gives buy about

Tom Lesinski

Yes.

and really normal capital secured really given within place efficiently. the So dollars the frankly, options, was can very quite it the where we we frankly, to it was thought size at the we only that looked the really, bond want structure to And all do work trading. quite that put of

put And of a that was so million the -- range, And in in quickly. about quite really do we've allowed that we to the that to at action didn't kind to right that way mid-XXs invest frankly, thought us it really $XX thing market do.

future So and we business MCNE felt do confident about that of the to at

Q –Unidentified Analyst

Great. you, guys Thank Awesome.

Tom Lesinski

you. Thank

Operator

will today's question… That complete

Tom Lesinski

got I ahead. it. Go

we are and got. few So closing from here, a I'd let questions comments those the you to make just

excited of the NCM by a to watch trajectory what's of business audiences in encouraged So wide is the piece The recent returning big that big we're film we the their large on a really We're appealing It's our cross-section indication to on about to a of particularly real-time also audiences. marketplace really, movies our cinemas The are on return cinema positive performance going media. of really very robust [indiscernible] screens. terms of of weekend about. strong encouraged very continued business. their focused the every slate, reengagement this are in

cinema into seeing investment about the the really performing world's of really leading on content into for returns able media outcomes NCMx, that's meaningful performance advertising. clients our optimistic much intelligence there's So it digital on screens. comes deliver platform largest one business tied also the and analytics companies NCMx best to data We're when to and and to transforming

version only well for to strengthen of fourth as story the release schedule the XXXX continue of So cinema film robust the will and quarter planned XXXX. cinema as more

their beyond So to and NCM lenders for support the patience. for and I couple of challenges hard work really the at call help the you seeing move to on their entire a shareholders us the movies. And soon truly of look Thank We want us team thank forward joining to years. again appreciate and you our do you. thank past

Operator

today's call. your concludes participation. Thank This for you

now may disconnect. You

National CineMedia (NCMI) 9 Aug 222022 Q2 Earnings call transcript