Cinemark Holdings (CNK) Q4 Earnings Up Y/Y, Revenues Beat

Cinemark Holdings (NYSE:CNK) reported mixed fourth-quarter 2017 results. The top line surpassed the Zacks Consensus Estimate while the bottom line improved on a year-over-year basis.

Headquartered in Plano, TX, Cinemark Holdings is a leading domestic and international motion picture exhibition company.

Cinemark Holdings has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quarterly net income was $95.07 million or 82 cents per share compared with $77.00 million or 66 cents in the year-ago quarter. The company reported earnings of 82 cents per share, improved from 64 cents in the year-ago quarter.

Quarterly total revenues of $749.99 million were up 7% year over year and surpassed the Zacks Consensus Estimate of $746.7 million.

Revenues in the Admissions segment were $443.51 million, up 4.5% year over year. Concession revenues were $261.22 million, up 10.7% year over year. Other revenues were $45.27 million, increasing 15.5% year over year. Geographically, U.S. revenues totaled $585.72 million, up 5.9% year over year. International revenues were $167.32 million, improving 11.3% year over year.

Quarterly operating costs and expenses totaled $661.30 million, up 7.3% year over year. Operating income was $88.69 million, up 4.6% year over year. Adjusted EBITDA was $187.53 million compared with $168.17 million in the year-ago quarter.

At the end of the fourth quarter, Cinemark Holdings had $522.55 million of cash and cash equivalents and $1,787.48 million of debt outstanding compared with $561.24 million and $1,788.11 million, respectively, at the end of 2016.

Dividend Hike

The company’s board of directors raised cash dividend by 10% to $1.28 per share of common stock on an annualized basis. A dividend of 32 cents per share will be paid on Mar 22, 2018 to stockholders of record as of Mar 8, 2018.

Operating Metrics

As of Dec 31, 2017, Cinemark Holdings’ aggregate screen count was 5,959. The company planned to open 17 new theatres and 127 screens during 2018 and 7 new theatres and 70 screens subsequent to 2018.

Average ticket price was $7.98, up 4.3% year over year. Concession revenues per patron were $4.69, rising 10.6% year over year. Worldwide attendance was 44.3 million, down 0.7% year over year.

Upcoming Releases

Investors interested in the Zacks Consumer Discretionary sector are keenly awaiting fourth-quarter 2017 earnings reports from key players like AMC Entertainment (NYSE:AMC) , AMC Networks (NASDAQ:AMCX) and Cable One (NYSE:CABO) . All the three companies are scheduled to release results on Mar 1.

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