CNK - Earnings call 3 2023 | Cinemark Holdings, Inc.

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Operator

Greetings, and welcome to the Cinemark Holdings Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Chanda Brashears, Senior Vice President, Investor Relations. Thank you.

You may begin.

Chanda Brashears

Good morning, everyone. and welcome release Cinemark Sean conference and Executive to quarter Inc.'s Gamble, like Financial Chief earnings Chief XXXX call Officer; would you Holdings, to third President Officer. I Thomas, Melissa hosted by

Before statements comments we may forward-looking made that call or statements. conference begin, to this everyone like be I'd remind by

uncertainties.The Forward-looking projections expectations of and statements call plans, the objectives, actual reconciliation most or be or measures. results in certain XX-Q non-GAAP materially cause most include, ir.cinemark.com.With These company's like the due are involve recently to to the recently variety may could of Gamble. measures turn necessarily GAAP company's not materially is Sean filed contained include I'd forward-looking but most company's may of now factors. company's website to earnings the non-GAAP may other statements the filed call XX-K limited A Information financial to matters financial intentions. directly differ concerning to, measures over comparable in the the results projections that can financial differ a company's release, factors risks today's from financial found and that, on these Also, and at XX-Q. to

Sean Gamble

our a and for of X and future. health all past and the Thank positive year, quarter consumer today for as long-term indicators volume XXXX impact appreciate assess morning, our trends industries provide good you, over you our we continue the Chanda, fundamental third our with earnings companies and key We the new everyone. outlook to joining of drivers commentary us call. categories the prosperity, Consistent initiatives, namely behavior, release strategic and across

fall. steady experiences X now that quarter-after-quarter demonstrate results for films in enthusiasm First witnessed box delivered trend record-setting vibrant.That of throughout than those results as range of cinematic genres diverse consumer remain and stream foremost, results office has that first and and and shared years XXXX films vested for have strong strong a more have half certainly of expectations, summer we all larger-than-life across remained been a evident the

the appeal diverse slate a The of and positive impact quarter third epitomized films. of

quarter, Teenage film audiences.And the The global Impossible, the toy domestically million Oppenheimer, an nearly and faith-based bomb cultural installments as adult Mission: $X.X collectively The positive drama the as and word invention R-rated Turtles an based The Insidious: favorites of comedy and the suspense The as from almost iconic Meg, like propelled Indiana mouth an Mutant Jones, new to accumulated all on about $XXX phenomenon. During Door broad Barbenheimer atomic significant box as global sequels, reached results. adventure Red Ninja Freedom billion franchise of action X, adventure a including became Barbie, horror of Nun sensation Sound well generated office of

fun, steady Wonka diverse fellow delivered through range technologies home fans on Hunger at a including they Napoleon singing communal our her family Purple, that continue the record-breaking eclipsed October to Eras has with almost ever & Events like as the only Cinemark, a impact in based seat For of result elevated the environment consumer many felt in Aquaman domestically be video horror far our to $XXX in films Color viewing film domestic watching past And and domestic features, films name is extraordinary The history experience at And opening Wish the the just fourth difference engagement already box dressed yielded Tour screen, July, XX-foot sustained time. is Snakes, stream big an biggest film, company's characters as a Lost front out office fourth and and as sound dancing ultra-premium no Epic blockbusters, ever we've it after delivers third Kingdom, sight box heroic and and quarter, XX-foot crystal-clear delivered all our to Migration, slated trend as Trolls a cases, premium with just in film line on replicated in third in concert. had productions, Swift animated Swift's and of a their a achievement a on to seek coupled up -- seen and energy now theatrical at sound opening this biggest is franchise, Ballad and game the weekend, million with can't The with an because a comparison. in Five Eras million just of to of office.And Band the October Cinema produced the in screen quarter to by Freddy's Games: row on height largest at to Songbirds theatrical versus weeks audiences Consider of Taylor of came quarter of Together, levels experience enthusiasm gross in home. together the excitement appealing everybody few heightened Tour title shared Taylor these the and and $XX There with month of with well office Z that second continue that Nights Sagas, a was droves and in Gen that largest wide musical favorite and ever. compelling year-end, simply few.People largest Marvels together that continue box indie varied the couch concert as The setting which happened experiences

we years, and prospects our are new volume examine on recover moviegoing we the they to approximately based Last suggest consumer on trends pace the at as So tracking office exhibition.Likewise, year remain the studio remain and of momentum theatrical the also recovery partners. of over encouraged approximately from further. we year, film to this X-plus new prepandemic the they year, to made receive release past to film box recovered encouraged continue about highly for production what to about of future results XX%. progress date also we volume XXXX input of had releases and levels, even start Growing XX% for

longer-term in evolving.That the over trajectory and positive imply the month, and the X past have with the disruption expectations time. regard it's the actors' over past and have writers for what will suit for studios not of of recovery work the However, soon. caused volume important hopeful studios updated actors and Hollywood been sight follow we're to strikes that still indicators and months writers' they negotiations lose a a rebound concluded XXXX to temporary are Furthermore, to and back at with said,

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EBITDA the second EBITDA Furthermore, X% on since we Following than margin third attendance this last margin our of 'XX our company's million revenue this XQ adjusted a rate of exceeded and quarter's million. achieved XX.X% was adjusted XXXX, delivery generated of quarter higher high was XX% lower record 'XX record we highest third revenue basis quarter's points of $XXX that, XXXX. quarter adjusted by more of XXX quarter quarter, and adjusted beyond XQ time, $XXX EBITDA highest than of all results.And third EBITDA our XX% third high quarter on worldwide that quarterly

navigating this top effectively year future As ourselves extended of dynamic we've recovery to remain efficiency. ups the driving focused set and actions previous highlighted priorities while growth on on for up industry's and downs our our calls,

drive and generation, on such, to that to audiences, new further the as that array demonstrated based margin and build and within sheet balance us we've our generate the we to we circuit.While really in fully near-term remain further our our diligent while results and and strengthen emphasize from management and additional same nimbly streamline of fluctuating staying revenue footprint. expense productivity our many and actions at processes to diversified enhance by optimize actively continue grow, opportunities realizing our guests, our opportunistically opportunities the upside working excites already streams, provide wide experience cash the investing is flexing are before executed, and me are demand material revenue on control time, we forecasts, year-to-date, refortify As incremental what

in consumers practices to additional recliners, across leveraging capabilities, will premium through automation quarter projectors, look Some distribution additional and in film food, company, and Cinionic third content Melissa? forecasting content global further as consider held that, optimistic we examples of driving sales are expand range amenities the for further and our are optimization strengthen and offerings and workforce theatrical our showtime continuing provide in-theater like marketing our and beverage as process and industry turn we incremental opportunities reach financial third-party to to call fundamental refinements, and enthusiasm options addressable disruption the drivers enhancing remain our The seats management results. new strong. sophisticated that providers include pertinent who and loyalty merchandise and moviegoing over future on well A million actively and experiences expedite impact health, programs leaning plentiful.With to transactions I'll growing stimulate and release about availability purchases, promotional to into that new of motion value our as enhanced our moviegoing to theatrical our unprecedented ahead as Cinemark efficiencies.So extend prosperity. number theatrical planning frequency, consumer improvements, information we has studios proven concessions D-BOX the Throughout growth industry, XX operating strategies, and provides strengthen channels Melissa, to grow significant. a and e-commerce varied remains grow highly over more developments exhibition laser

Melissa Thomas

a you, today. office results box Good an nearly of as growth strategic XX% driving XX% the everyone, margins leverage meaningful fixed increase during million the quarter million. cost the the another productivity. $XXX.X morning, to team's our $XXX.X third for as delivering to basis our Growing to during points thank quarter's year-over-year, expanding call our with EBITDA year-over-year strong cost domestic worldwide an realized And increase XX% by entertained maintaining We operating our we and year-over-year.Turning performance global our we management circuit, adjusted third admissions quarter our XXX XX.X%, EBITDA our Sean. of and quarter, segment. to revenue deliver of in well the were advancing patrons XX% with you quarter, and With third we pleased revenues and exceptionally grew we Thank to million joining ability heightened moviegoers while million served $XXX.X further third XX% XX.X year-over-year. grew Across and attendance revenue, adjusted over around We healthy million. discipline margin initiatives, XX quarter. of

mix and strategic to initiatives ticket film Our $X.XX, driven more by primarily grew as quarter average skewed and price year-over-year ticket favorable X% slate pricing inflationary type the third adult.

discussed the our as third in for on earnings last the anticipated as year. film the quarter of As and content first call, mix strong wasn't our as half circuit the

the As it prepandemic slightly a our byproduct mix, market share of levels. declined remained well film above year-over-year, although

driven share year-over-year not mix, quarter, on fluctuate grow revenue initiatives market to focus share.U.S. per continue pricing quarter-to-quarter the our film by million for our if $XXX on XX% driving and X% While increased the initiatives. to based strategic grew we to to sustain and concession cap concession $X.XX inflationary will

quarter XX% skewing cap film by That the surpassed third moderated XXXX the up our concession third per versus and during more given XXXX per XXXX quarter our was third slate. quarter revenues said, of rate XX%. domestic that QX nearly growth As expected, the cap adult

Our domestic attendance XX% ability continue the of of due EBITDA, our million our generated year. $XXX.X quarter to sizable the drive the was up operations quarter. year-over-year revenue, and a of of to over XX% revenue theaters results. delivered total, increase our growth last in we increase been adjusted an the improve third attendance Other our a year-over-year, $XX.X In $XXX.X monetization XXX% million key to million, driver has primarily of to of

other We XXXX.Shifting XX% investments. the rates been of the our in wages rate percent costs pricing offset basis quarter by increase rental box quarter were quarter, wages the by Global a basis film heightened XXX revenue, were driven the leverage partially and on from salaries driven inflationary X% mix and consistent points and partially to hours. of points office and $XX.X international of to the Concession concession the delivered rental the Through year-over-year operational increase year-over-year. XXXX declined Altogether, strength strategic than to was our basis EBITDA XX% pressure $XXX.X million, million basis our million, million, realized was XX% offset of stepped Facility points to quarter of third points, year-over-year. spend. the capitalize execution, were third represents XX% EBITDA $XX.X million. $XX.X expansion points to revenue guests expanded the by our adjusted percent third outsized XX.X% We by to we million and operating XXX Lower basis the margin by and XX.X% and expenses. and the ongoing XX.X productivity, due basis to international quarter adjusted an higher our and and XXXX.Turning third levels shrink, and in attendance $XX.X wage of lease and of XXX welcomed $XXX.X team and delivered million admissions revenue, year-over-year our adjusted compared EBITDA with expense XXX domestic an margin, year-over-year, an operations. of returns labor revenue million $XX.X third the which in points points we seeing during year-over-year.As increase on expense was spend basis in increased benefits margin we've XXXX a third disciplined inflationary relative up concession XX driven revenue. content versus XX of initiatives. quarter, grew which marketing operating Film the as XXX focus of of offset expanded of salaries pressures up the as quarter admissions XX.X% revenue higher XX.X% quarter third uptick of advertising partially Our marketing an on global of a level of revenue,

growth insurance third the and to the revenue, contributed of basis increase with the third the where in costs gained with third and lease total our attendance, maintenance.Higher we lease of also of are quarter costs, XXXX in leverage credit X% year, $XXX.X costs due domestic namely increased our quarter was fees, decreased increase expense XX% repairs up variable costs year-over-year. nature. to in G&A card in primarily facility the liability last as property compared Utilities million, percent a million was other points and an segment, janitorial XXX which year-over-year. such $XX.X expense over as and fixed As compared lease largely quarter, costs our

stock-based X% quarter, Excluding incremental offset business G&A initiatives, and inflation and software, was recovery by up ongoing to compensation, to cloud-based support wage fees. by the strategic shift in driven which in partially headcount benefit lower professional our was our

As XXX balance the G&A percentage diluted net quarter, $X.XX.Moving of a of Holdings, X.X%. declined generated per to third of we to million sheet. $XX.X share revenue, to points Inc. attributable the Globally, in resulting Cinemark basis earnings income in

$XXX generating in milestone meaningful We our to for the year flow achieved since time in with X our continue flow to months of the the Xx to and a of net period. the reaching third prepandemic quarter free in quarter cash the the range quarter strengthen $XXX $XX million our target with first Xx financial the cash. We of ratio cash of leverage end third first of position, free million million

theatrical invest quarter success year Our and global the million in circuit $XXX a consistently moviegoing on with of full We of $XX remain capital target investing company. million. capital the maintain strengthening sheet, and allocation in priorities third enhance our long-term XXXX experience balance in to of including and our the expenditures focused our delevering

installations, premium opportunities look meet capital will investment thresholds, newbuild our be in year to investment towards high-quality laser regarding our forward, free that roughly ROI-generating opportunities, cash we flow this mainly the and flexible office theaters.As sustaining circuit and expenditures, remain our continue to remainder disciplined amenities recovery capital expect return half a box and while expectations. factoring we We projector of will allocated targeting our

well our with coupled strikes. result due to poised impacts sheet, of withstand are execution Hollywood to strength the of balance near-term capabilities, a we our As the potential strong

continue await our strike on office, time, with the ensure and implications expect company allocation remain appropriately conservative while to prudent in for at a position the better as ongoing capital to of we the success. we cash understanding same investments to box the the We interim making

industry may we strong entire recovery that the I'm of of post-pandemic remain our the to Cinemark more team deliver. proud for be the closing, encouraged than intact.In had long-term bit incredibly prolonged remain results hoped, they a While we continue fundamentals the

ongoing the initiatives, execution potential now remarks, recovery Given concludes industry our our strategic performance prepared we of line we questions. once to future optimistic for of stabilizes.Operator, up are last and over that few open our and the our like business the about would quarters the

Operator

question [Operator is Karnovsky JPMorgan. from coming Instructions] David of first Today's

David Karnovsky

the gauge know year, Sean, you but point has how shortfalls of I of impact ongoing, still think deal do the didn't actors' next strike you supply? strategies -- 'XX production kind or the at 'XX is supply? with until assuming industry kind to this to what And start early even what of do

Sean Gamble

Sure. for everybody's topic David. mind. Thanks on a Clearly, it's question, big the

still there's be a like, 'XX, point, this what at focus looks now unfortunately, on 'XX the more of think, XXXX. in think but is clarified of terms degree, I a lot to right I certain to

a -- place. -- the past challenging, it's taking of we'll we cautiously I dating fully some Assuming some would where which this has terms is with even of things XXXX optimistic may optimistic over of little a this always strikes, gauge news the been say, because It's in the near-term slate see. bit hopefully week be the headed, get close to still to general, in lot closure

of on a fill sight We're normal to and estimates year much it how is in just limited. things in. we think further basing are line usually going our So

minimize possibly our that focused obviously, know do we with on. trying a in predict going clearly conversations challenge can. they're what's created -- as to studios, So as to that's a little they try with much of further that's bit the norm.And strikes, on the the disruption the We as

production And all But can resolved. point get going big just to is at to strike when out and bit say then focal those sorted ultimately still point, trying everybody's game this how to for waiting that's for schedules think do clearly that. see next year. I'd a schedules be here once I means the conclude ultimately the do as a and to they're whatever in out a they benefits, we're what it things play

David Karnovsky

more. leverage your the I on net dividend strikes wanted target see I allocation, you range, and thoughts complicate on With now one guess just that? maybe in the to could if the update maybe And how capital

Melissa Thomas

the Sure. David. Thanks for question,

continue Hollywood to await recover. the potential near-term priorities the capital insight and will better the conversations, right the which XXXX remain aspect continue sheet, strikes our dividend. Board, was including allocation our the cash of capital the flows that So balance on box that the around allocation, we a that continue you did for question with centered and our our in achieve, Xx this office. investments for out our XX our so in timing delevering the strengthening expect office the we and of capital well while is trailing terms are those But ratio would as to months pointing allocation priorities stage, ended of into to mentioned, around us includes to be conservative remain prior it to dividend X/XX. then as active to on our dividend, do net long-term.Now consideration I of But but are leverage Near-term, target worth making said, will capital to balance a key the the have reinstating respect the we for conversations sheet ongoing at we significant conservative implications allocation, your expect ultimately, to position to regarding pandemic those Xx around with box remain of company

Operator

coming is from The next ROTH of Handler question MKM. Eric

Eric Handler

sort just your a amenities? you about Are Premium on forefront. of talked are of Are there backfilling with initiatives? there? CapEx. theaters? revenue-generating do lot going Where Where still at the you new remains with have there You opportunities amenities still premium

Sean Gamble

it mean continuing types Thanks Thanks. a we've that amenities. of initiatives the We premium of a some still opportunities been to I is question, Sure. the range while. Eric. pursue for pursuing in see of for

D-BOX looking So seats formats, given at motion point. this XX% of we reclined installation a nowhere screen our were although projectors, degree, recliner almost that before, certain where to is further even at circuit laser near seats,

have say there's enhanced and types sort, new and I of success with in a food continue offerings and of things of to theaters. investing those types So also would options we of things. in just our just range further that test

So sense to of there's of there's distributing a expansion things be sort, the to to that, at of purchase in ultimately help.So like technologies food CapEx, continue and different say broader too, which other can for there that I sort. of beyond simplify will we even things regard with and would that that that. range things look what opportunities

and other with balance with that's right that going our flow a forward. recovery mind play. cash objectives Clearly, to of balancing progress So come just our it's on we as continue strengthen our refortifying look a levels does bit into to clearly act sheet, now the with where but in circuit continue to things

Eric Handler

recovery, do movie while movie, of particularly local I And sort a number what's follow-up, been that past. a state out movie America it's a when like well. the a as times of we've we've Brazilian actually industry Brazil, international just break and I'm look it seen right in And now? seems curious Great. seen in of the the Latin since at language your

Sean Gamble

question. great industry, picture it's say on been I state a would the of big movie It's positive. the

comparable the recovered rest I of the has level, just to exhibition of say the rest think the with I'll specific I'd of space, a theatrical talk the in or -- to U.S. terms world.

match seeing levels In Argentina, where moviegoing certain circumstances. terms behavior of exceed moviegoing, there's prepandemic and of even LatAm in we're that like even pockets

whole the your production.To definitely terms is of of question the local while that up. its content, say we've pandemic, during on certainly the I'd has area So lagging of One in been world caught the seen in a region still it lagged Brazil recovery bit backlog of has that been studios periods rest as of films volume slog know It's replenish the LatAm. U.S. prepandemic. That slower here was it Hollywood, overall internationally to come has a their in back. We well. in have working the been to other been get slower back the that and throughout where countries to some

particular to the picking there's into up. down know there. signs that more We government that Now trying even see local It's Brazil, production to starting an to into of we're life activity some is focused activity. something on that breathe focus some on

types the could bit in still future. in But lead a to resurgence area of pandemic. that that from with would say a product LatAm of local is an regard those not-too-distant I So lagging the recovery is to films

Operator

from Riley question is Securities. Wold of The coming Eric next B.

Eric Wold

quick Just in numbers price caps quarter question. from What the Cinema Day? per ticket on impact a National caps was concession and per the

Melissa Thomas

year-over-year caps National both the and uptick prices, offerings a changed ticket an of was because on bit. actually standpoint From average per bit Day a Cinema

the price, Cinema average was ticket price Day ticket last year, was on $X. year, This National the it $X. So

So on we that had ticket price to related the about a $X.XX side. benefit average year-over-year

been in Excluding National ticket the Cinema U.S. $X.XX have would Day, our average prices

our As excluding would attributed again, have about Day, then National you cap, to cap look National Day. at Cinema per slight been per benefit X-point Cinema $X.XX. benefit year-over-year And

Eric Wold

on follow-up concessions. a just then And

are of it indication just some pause that QX, or of discount maybe maybe If normal showtimes an all so pulling normal concessions during quarter, into seeing would all? at down even there there, times, Day seeing the guess, give excluding you you a you're far any you National Cinema into I of at indications not just that or give showtimes you kind drill are back bit kind during impact kind consumers during to some the either

Melissa Thomas

No.

current As we see economic you to consumers look broadly, up the premium environment, amenities. trade continue more despite to

on more also We spend food see beverage. them and

electing coming to they full into theaters. are they that the theatrical experience when So are

we opportunities function really of have August September, per was more many as F&B dynamic seen we films monitoring as certainly forward. we amenities, to initiatives particularly last But the have on a we caps, Swift fourth as dip year the the believe you've despite the per a But our up opportunity the as proactive namely in we've that closely, seen of of of per resulted play a grow category tough quarter, initiatives, continue that you a in that into to in management Taylor drive the in well things. premium tick mix slate, we're something again.And in in cap but to then QX lean that drive particularly July, incidents that October, place side in sequential slate. with our the associated do recently, caps third our Now saw quarter having kind comparison of out merchandise

Sean Gamble

even a would premium just continue types generally premium more other times, our of which when interesting company But seen formats. even activities. we've upgrade anything years, they we that I dynamic economic in back tick-down cycles, in cut global for see ups even America, to downs tougher Yes. and They heightened don't a and come it's I've across consumption. may in our this food to continue fast the found to has the theaters, beverage you it's levels. that to on consumers like always They purchase amenity find -- Latin add of an at

both will other U.S. today, to with upgrading, people like purchases, that trade to the see the to purchases, that our regard continue to in on things. in food it's a we just splurge. when their in LatAm merchandise off they moment come dynamic But and industry that's So cinema, here

Eric Wold

have you you were quarter, closure impacts can of didn't ] prepandemic? the in, circuit of to question. of and big kind first make the health there. domestically impact squeeze you or the net a about any the If X in where a closures X I don't screen versus it. deal do I circuit, of out Got quarter maybe broader want but focus kind think domestically, of years, How a health kind just [ of one

of upswing So pandemic? the of been I in about get kind few positioned in think would circuit we so how upswing now And a would rebalancing of of most it mean you index to kind of the office benefit versus 'XX, post over attendance, back are past where to have maybe years and kind ago? maybe versus then outperform the we the -- the of industry was where you're in it's box kind continuous health you how versus circuit

Sean Gamble

the our the Well, we're working the we Obviously, restrengthening balance high off feel and health on still kind good of pick in strength just think business. that I chunks. is I sheet. very of level about

COVID-related reducing that's that debt the piece still So one on. took on we're working and we that

since have theaters theaters XX% to bit been the business. team attendance some and of that in just growth, work -- even strides just speaks say less So there's is then many more of a more X% comment part maybe more, move certain that as evolution the X% cusp been all incremental We some a that struggling activity simply because out, just look and XX bit the that on process. pandemic actually have. made -- future or in capturing 'XX, exceptionally the would efficiencies, with on, some generated to I of to at a strengthen piece. to on made performing that more. we it in degree, struggling pandemic, we we've were the theaters a closure less -- see the those that think mean of But excuse me, sense those on efficiency revenue opened there, of adjusted strengthen I we that's I continue think out to quarter that more the the revenue so further remarks, great growth, been operationally, I'd more that coming versus whereas movement had to normal that there Particular of circuit doing value whole. the just And the we be the could older coming the future bit XXXX.And we've the prepared time, say little well great mean continue further higher footprint the attendance to EBITDA.I for theaters we XX% there. same on had just made opportunities has out our third the many, I to fact

calibration, continue the ability our So ongoing at bit little side out kind but we're recovery be with with the to be really of of to feel are going this where on and a we other where point could that of more I overall there of near-term that. coming good to handle some

Operator

MoffettNathanson. Fishman next question coming Robert of The from is

Michael Nathanson

do partners Sean, couple the studio genres And then you have is, diverse few word I understand a you the mentioned Michael for maybe with just wonder, are Robert. see day-and-date, from maybe office any dealing One that? And a in a times certain in and with away have and Nights for change? box of is pivot this mentioned we'll for think do biggest this another at not and you on that your releases coexist describing success. perhaps you. post rethinking franchises? this for I And you can that said, playbook genres? pandemic you people very, of structurally challenged Five with Peacock. one, we then are Is more beginning did how well returned and quickly very maybe Freddy's you the day-and-date their

Sean Gamble

Well, pleasure get ride call. far and one, those studios from Clearly, a Sure. hit, overall and they larger content the can risk can for you have because by of significant but just recognize studio The thanks the you for once I our Michael, the that on a kind welcome, of also financial as you of partners that. that while. diversity equation, value there's some out of focus question, the franchises, do -- tentpole on the as to films the provide, a goes, think

those also are sustain to management we lot to of those generally types great I But with films to that improved it's think time, of window, company risk say can at further those we've same of diverse as titles. see their them of out. of continue going seen I drivers mean, other I them the just would these of parts more of business encourage a flexible into offerings.And also to their many evolution more brand extend So a put of for we contribute the work, companies. value. the that types continue the think has They

bit know actually films to model in more willing take to doesn't them long, that some can in lead a and to a doesn't offset that, into it run As prior the audiences, also get home may the flexing a as to one far or segments chances become there's had say. really of the lagging, it's can genres hey, and tough with studios the and downside in terms tough of one connect faster. now challenged work the risk success, some being pandemic.As That those because way content to be areas if more where any

of a audiences across resonated haven't seen faster, well and with ones we've seen categories that longer dynamic the some of bit but in bit films run titles. post think I little cases, we've resonate that better that a pandemic fall all some as

on a just that say, volume pandemic.And So have be that may recently, necessarily as of category we've that out come to it's just one pick of that that less tend that to thing post sustains content, you momentum have consumers harder When out more that to excitement. basis, of seen kind hard I'd in one you to there specialty we been steady then anything, because fewer, area. films it's find, get get volume. If released reboot that more

coming volume go of a lagged So content one we area That's a hopefully, as just greater has forward. of that that see we'll amount been bit.

moving no the the that They frankly, not question has as indication or something view favor with changed and our assets on we that, goes, we clearly it theatrical not value we that that to it's for on point of and maximize didn't industry recognize seen -- a think of day-and-date that. direction. back real drive drive something that maximize It's work.I financial has is look impact don't by think quite far I the look, They've window. best studio that day-and-date. tested their mean and there It's As promotional I any tried to. really been way partners value something And in stretch. is for it.

Five this year, only In Freddy's has day-and-date. fact, was Nights the have place XX at been that wide far taken the releases that thus one

not direction But conceived we I'm somewhat was put because that see with is out the really content smaller Nobody type back an that And There be film.So in shows breadth circumstance, films theatrical of way. be as points I again -- streaming exclusive that that indicators, that was come a it It's to day-and-date of probably studios on drive this a that don't niche Z data I'd no assets could some the Gen in conceived shifting release, thought the release. way theatrical that with streaming won't value which title. direction. all doesn't as to big limited there's elect was. phenomenon release. So that originally an mean things it for promise unique becoming originally of going say, became be best see all and was that may as audience day-and-date we to or that believe kind with movement to those all occasional some a the it

Operator

coming next is The question Swinburne of from Ben Stanley. Morgan

Benjamin Swinburne

maybe a do sort prediction. there's Hope of what then Sean, the of do, movies of -- a yet? I with and are faster popular, a the timing closer that fill everyone's that? production because Like all if there's conversations calendar we is just get and finished on couple well. in, sort within you view as And normally, of sort been a as I'm but had haven't a have the A slower and see are of follow-ups. the happens more you cadence of think calendar a the the wondering, a dated this resumes? over you think questions. probably slate since to the had we couple XX% date you strikes studios and cadence we next thing prediction like do But with year, being once

Sean Gamble

or the to going all the things faster. so production based that place a to take will necessarily are or resolved, where shuffling period sorting Just I'm not out know, a about month once sure slower there's going of just conversations, on perhaps do be question. thinking I is be schedule. it

put those So how going all together. to be everything out pieces needs kind refigured of to they're

that when better through in stakes to a a there's sooner to the plant sight getting dates claim ground get things later studios on get their start the of I then will versus they of by will line mean once as think that spot. I to desire completed, things kind dated. generally

that's have clear clearly there's for motivation regards there, some that So to in hesitant out be to but they'll until to they going a sense be. get that information where do

how So sure once to or than accelerated be a further is things everything shaking I'm bit matter it it of out not having normal, a along. just slower get sight will line of be will little

Benjamin Swinburne

Got it.

year think is to strikes flow The but the be have $X allocation, apply does the a cash you'll that conservatism you will cash bit. strike free around is guys enough. about. dividend? a And done not dollars up, you be of are think investors about grows fair Taylor of Understand And something alternative becoming help that for think momentum to total the a don't year-to-date, of the or fourth create part you done guys becoming on you it, insignificant just the to the going push in the talked next business?And thinking we strikes you quarter. but get finish capital then a free years little think -- here in couple I either when share you going, generate keep the assume over, So because about Yes, flow does it's everything? uncertainty, generally next would Swift dividend that over content in labor next couple back capital to specific I'll just of revisited willing to year allocation, business. I CapEx your that Okay. weeks? if then that just us that conservatively? Is more focus the real much guys have it part decision these Do seem of might next you

Sean Gamble

access content the of in couple content in, just it and that we're anime we've films. the now I'd moment, -- I to for focus the been some tour was tremendous of of with get a fortunately, the released of titles, point, of actually with Alternative able just have phenomenal scale.And fans Taylor frustrating Tour. promise in the see her Metallica, we've We've in seen concert some the interesting. point, build. that relive X% the start mean, at really for going. was that row quite with I and start and success concert. with the it was Taylor being seen very to front she your like now X% concert It's And a but to films kick seen on some percentage theaters, momentum it Swift. blew huge until I'll films seemed having Eilish hints question. multicultural BTS, scale to again, off it seat this moment to It real nontraditional content, was box Sure. starting just for on promise, place Billie a Eras in with And having, Certainly, never was say with up think that in overall the largely limited in Coldplay, generally always a alternative really to those time to terms office. showed of had door

If tours just you forward, that they've so could music you're time that going poured the you to saw give both a music these to don't of artist, opportunity extend wonder like your and effort I into. also value also and much see a that, and want do you're not fans how artist I to that

seen So they can of what that. optimistic about We've do. more we're definitely

I that have seen and do think it's others what can growing.

and The in Jesus huge Asian more we to more we've of the some that films, continue that South there results here. multicultural with mentioned films Faith-based see Revolution So big titles. I the Indian and category.I could success we think with certainly continue Sound do Chosen, getting content to and Freedom posted see and had results

percentage we're the that of volumes. think seeing of we're us, definitely tracking that that. Part I it's seeing overall box on about is XX%. year-to-date mean, office for yes, of Part based So recovery the been I just of uptick.

as box may but little certainly think could films recover, over to see a a maybe overall looking we're down the go growth. at office we we continued X%, place that bit and more this starting of a bit, traditional So years where get to more

Melissa Thomas

how I'll capital cash on we're the Yes. And and your conservatism then allocation. about thinking question, kind take of around Ben,

the with start CapEx side. I'll So

is flexible will we're same our we positioning capital sure company box ROI-generating expenditures. the we're for where going in certainly going opportunities to be factor the make the long-term. continue time, at with flow area to forward, look this We're expectations But we So well targeting to as office an our and recovery around to be cash generation.

a But want reinstated. to be would need would think that need as that well looking it's point it's that maturities leverage balance to so. that both we are see do keep we really So also XXXX target we're of think address.So we I to there. ratio before that dividends, We that to even about feel those sustained as to we to trying in we say fair really more And have implications CapEx do be proactively dynamics, achievement the the strike looking what office, a a have about really too we mind we to expenditure standpoint. on to from we to balance also hand. see good you early the just we do box dividend standpoint, cash as really will and as at mentioned, flexible say look capital on from And but

Operator

The Mike of Benchmark. next question is Hickey coming from

Michael Hickey

Chanda, on congrats great here. Melissa, quarter Sean, another

to see the we pretty questions, you, Sean, skinny domestic I'm just basic basic billion back [ a for box on from here. industry not and success, Just year, your get shakes curious ] Definitely the or $X.X X the XQ it but seeing so maybe coming but we'll office. here, out. how

recovery of growth. and opportunity seems it, So were terms we bridge $X to This the call like for you this of huge you pre-pandemic. where billion, have still sort in a industry

know of Just -- the bridge recovery a really we to the can speaking, curious, that of I the were, film model big of just -- where confidence kind piece equation.But here. your you product optimized sort confidence is Sean, and cross your you've broadly that

sort for getting product were you've It in looks with Just you're those it could feedback put like again, the a going curious maybe because in, come lot And and and change you guys higher?Second curious sounds of your margin to recovery moment, Apple Netflix, I see great opportunity like just think bridge Amazon? that to sort will that's maybe with margin experimented of to product. profile some hesitant be to when maybe know I cross your time. I'm of you where the over question, prepandemic they're from that increase. the streamers

saying the success in streaming getting Just curious not or from office. partners other what Apple and the box are of terms your they're

in as think in what of a maybe think really just numbers, some have theater.And but terms I scale up you're first of leverage the we for years you if important and think it's films, over Sean, ecosystem wide the curious product you time versus streamers taking putting time, not what's next prepandemic? they're alternative those than You product in how look for the more of films, of have terms you shape in they position their more the at concert like up to there's massive had that than about when couple release of

Sean Gamble

talked guess, are on content. starting of the kind questions. and macro Appreciate kind we items of confidence of behavior Sure. about, recovery, consumer overall of just the Thanks, volume I big off as Mike. in X

potential we different to -- different think the that what's is films, I the performance We've content so at films back of towards small as that in we've mentioned, look years X-plus geared all the quarter-after-quarter. films in just genres. at and was consumers compelling which, just all is marketplace. break just question And level incredibly the past large see films, when across have we like we look seen of of been the all many demographics behavior, we records across categories, come probably more us encouraging consumer over

past our of the production that. the which, content to time health it all I of haven't driver for for because we now recover, period is bridge time. happening, on just that first disrupted point the think it's crossed kind a COVID, little key with that but a disruption So fully was that process at the obviously signs fears bit that with right? getting the there just again, So definitely starts seen by this a a matter Clearly, mean, whole business.If well the of we've And of all in consumer holdback point. that, of pandemic. it's clearly, I environment was interest we're a which to taking of there, is

results we the Amazon then that, think you all more coming as to indicators, and caused the it where the about So all was still of now. they through franchise Air. huge think that to working per have X going. really They've Flower are with extent Amazon, Moon, other of marketplace another because is you Amazon, types in to smaller than year, this at getting just about now look of been was the ever, very mean out of a we've MGM just we and through said, working those your least little about strikes in of still mean year. the comments next looking I a were like question plans the content at dynamics scenario to of fold, X Apple at at I building had but releases Apple seen them, level taking business nontraditional ever least slightly They're got back including Creed film. And and of Killers was. at the major thus where be I we that films films, pleased and bit could than slate. mean they're whole XX with now they've Apple X to more They into in years with expressed we're a we've and And have studios or far. out, working blip.But are earlier is operating clearly to clearly on which X conversations more months, releases the getting been about, we talked Again, because intentions date. over dynamics.Specific very of filmmakers. the They had with see just the when that, pleased time big III Rocky with years X a biggest the their saw we content it's on the we these

into you there's value real but thing, then want they see in getting space. just And to same this they're it, talk... So

Melissa Thomas

Yes. I'll margin Mike, hit point. the

With factors certainly headwinds that that deliver to value and revenue-generating offset able performance the initiatives, last like have certainly business quarters. the we to few once recovery that caps as optimism are that on pursuing. beyond optimistic industry return and we're see do elevated remain be the as over you we'll but to see that, strategic the on of the stabilizes. our working quarters, potential inflationary drivers those as have overall and know, our the So past of and are to diligently levels going deliver that a box levels well initiatives we're we with our the there other to we're certainly at our go-forward of whether combined ability but of able We market share year do to many initiatives margins well to office, may over couple ticket strategic been prices the benefits long-term we potential about so.As are see, cost-mitigating we per try to full need that from to as further attendance margin pursuing basis, over try to average prepandemic primary based certainly we've the what

Operator

Goss question next Research. Barrington The Jim of coming from is

James Goss

or perceived looking attendance was screenings fewer revenue mentioned screen operating movies wonder on planning you've necessary? by value and the the earlier, might hot? creation decisions efficiency when of those side allocation are showtime make. wondering efforts the is is done the you've mandates? is a been that able then some use use time, what capabilities you to I platform day among And Sean, from influenced either cost or studio agreements if if I more when And that's are of lot, Right. I sort are such in how late And you condense per other quite -- traditionally, but at, the you say, know efforts?

Sean Gamble

theater of do a of the showtime We short as doing by throughout is day, we with optimal using the in to continued are do that daypart all I Jim. amount question, were about window enhance what short-term we've guess things. into answer more well monetization, overall overall showtimes at to talk our tremendous those a is level, that. the yes, What hone window, theater how very window. we on data by really as is, Great capabilities low just pack

with windows deliver shorter frame, demand based within are can weekday, more up we So may on having the a even to success. get conversations real if wind in that we're particular which studios time able shows some still

far be -- to on that's, of our so it's and hour it's think is margins one So condensing doing the plenty really we given hone studios or as still efficiencies significantly I we're be over we're by schedule can advanced things forecast we're but of whether for in regard, operating and daypart, one more as at part should that for think with it's that in and the profitability it things helping or forecast we've attendance years. overall the open efficiencies. not on positive. I the looking as few working go, a overall the in initiatives help really we of the there's of day.So been should conversation we many last kind But demand, And our whether their

understand and market they the only different whether rationale industry on, outperform to of point these you to [ and frequency. we're working share attendance from marketing for provide we've else working ways X been in growth the of benefit many ], the And because a the too course look initiatives on greater the incremental that not results overall optimization, value but studios we're particular, think the that it's driving many at focus, of it. showtime other that. also when tending we over it's the I our something years of to, They last our

James Goss

against is something one opportunity other there this provide coming be rather content to created to theatrical have Okay. carryover -- might Do plans runs void January last have than strikes? candidates into a for have specific like that probably less and did streaming did And earlier you with any that with Avatar. the comp or also, year you And not then. It you than February year little seems a by that that?

Sean Gamble

the see. And Avatar have from January in surprise Boots, I we well, a clearly, say lift how got I all running. would that a hopes a that Puss just huge fully say, know. think of was I in didn't had would and pleasant Avatar to mean, this terms I Puss Boots. be kept in at year start, we'll would huge carryover,

the the So they I able end to wouldn't of what for and year films discount be might this at the do. potential

there releases when we on marketplace to of period. of general see ways films, really campaigns depends are We quality could those with mean I practice it look they the of there overall is at the think out, or bring to try lighter just to how I types our through. it resonate if be fill some that of audiences. the number other like gaps in backs figure a looks could or play

where things of how the impact. moved a We call out strike some do of playing the saw spaces depending are year shifting smaller these kind films on we've looking out the the the potential of those, some think, got So and to titles quarter moved that because of on -- around. and types fourth the motion of of those in entirety is these fourth of even lot there still of in the faith-based in ideas into a larger when for moved lot too, quarter some next out.I recently strike actually to films year, of of because the into for

could we see in that the the other also some is opportunistically schedule types around carry-through playing from out. some like of just on based shuffling how of So films overall

Operator

] [ coming of from Wells Fargo. is question next The Steve Cahall

Omar Mejias Santiago

Omar. This is

should Melissa, audiences. in that the How alluded about federal -- and down maybe, color now are how Just deal in on being XQ? would the footprint? film to Sean, we cost your event on positioned your know talked sort helpful. of can how you but that about Any didn't and hypothetical structure? resonate office you slate year-on-year. market in the you demographics there one with does And scenario, slate with to share with you the this out U.S. your pull a quick aligns think fixed move is just your better What -- I sequentially. XXXX And box to first -- disruptions levers prepandemic? versus down of be lower production And in films

Sean Gamble

the questions, Omar. for Thanks

ability reason, in continued say that terms maintain office been ups guess in fixed to operating lot cash a muscles to enhanced of would I'd the think we've flexing quarter-to-quarter, flex margins.So next As and and box far in to It's year about course our to more we've performance. of downs over that how and I a necessitated another deliver I a -- to financial that seen and a maximize just of we've and way. order regard, of is say, event we scenario talking mean adapt able dynamic the structure you're in from that's pandemic. and month-to-month, kind definitely and of goes, environment operate I to as where and this a that results year mean I down, general. the we've developed for types in our would I strengthened the lot we've react efficiencies our the of the honed flows certainly

forward. our things own range scenarios be that navigate running we're do, we ability mean, confident I candid, in year. through So pretty to and respond like planning like purposes, ahead ready it feel scenario if play to our for how of of I to a that out well should that play of internal so a we're always to could next

information more terms as of plays varying definitive have in and how we in on hone those we'll So then volume, degrees that of out.

our to headwinds sure want really part deal back again effort capability also with long-term.Clearly, to I that to we're as of -- cutting prosper that, and part way too, not add through, So up. back things goes, in only ramp feel we that those navigate about right of good make the just

we Is this So in little into go come we short-term more we horizon? is extended? So over terms that really looking in another element a think the through that or play what at just the that will of of blip do be bit a some also decision-making to process. are could it

Melissa Thomas

to of trailing maintain XX-month we're share as then regard. of market share, look relative that to able fluctuate the And a still And you as that looking previously quarter. said XXX will basis you about if we're prepandemic, share in in terms deliver and our we feel were points good film on Yes. we know, And mix. track basis, really share on based to gains on quarter-to-quarter Omar, the we in market

good we a So perspective. feel about we're where share from really at

up. that slate As that you seeing that share and film already we look has back through share into are our QX market ticked October

in do slate we better circuit So a lends QX what film think the that, that itself we our bit to quarter. saw than third

Operator

The next Sachs. question is from coming Goldman Laszczyk Stephen of

Stephen Laszczyk

some talk if perhaps into follow-up earlier the to share I potentially bankruptcy opportunity curious there translate. continuing Cineworld the factored a like emerged little perhaps next expectations since seen on about what change balance, prices? a Could what year? it's competitive and your And into bit just consumer appreciate as on you question for opportunity consumers Regal, then feels update take environment just increased they've any the it Maybe might we're base. the could seems the to on on be some the from trade any that's a you how on and thoughts there of price like you've seeing in market success but I'm us elsewhere and ticket business in incremental up amongst elasticity

Melissa Thomas

question. price ticket the take I'll Stephen. Thanks,

to we data looking to think going continue find to price office. the that forward, broadly the as further attendance front. we box pricing do strategic and overall opportunity So on maximizes see are ticket right and But we leverage analytics

that be, will over keep ticket forward. mix of will to in be our has that reported is elasticity opportunity on thing how Now and extent analytics mind prices the our in do based going also evolved we that play there. film will about a But role opportunity which time. consumer feel one good the The always average

them. the formats, with So mind to such We'll the child and premium prices that films that have have extent concerts as multicultural in specialty well. associated as of higher ticket keep content tickets,

Sean Gamble

affect boils a I I their since quick overall our around that I to ], of attendance can just and how focus look their of say much think will Overall, still our And but real there. down kind go-forward and think [ predict drive pretty there's growth mean, business how lend we our in And Obviously, still emergence don't continue overall arms everything. share efficiencies there's that just will next imagine do on to our our circuit. share to tough to from year. I getting and bankruptcy. to affect on early it's continue results, results our Obviously, performance Cineworld I growth dynamics overall they're varied is of mean at our really, it to basis. terms drive itself potential. that too

Operator

Thank you. At this to the time, over to I'd floor turn like back closing Gamble for Mr. comments.

Sean Gamble

in again say Well, as us morning. the recovery all of talked few industry's is navigating of made thank incredibly and our I'd impact progress reflected advancing over results. we've this I initiatives tremendous the our am the like to past team about, you that joining right. In just our All for our proud significant strategic and Cinemark we've financial years, which closing,

in years. our We growth as potential into fully are our the that Cinemark window year-to-date we more caused headwinds recovers have And by provides volume well product strikes. to coming handle flow positioned the over performance believe been a at any strong near-term film Hollywood

with So again quarter that, results. our Thank look you. fourth we speaking forward following to

Operator

Holdings. you Ladies participation interest gentlemen, and thank Cinemark and in for your

your enjoy the day. may lines your webcast, and You disconnect or rest the log of time this at off

Cinemark (CNK) 3 Nov 232023 Q3 Earnings call transcript