Cinemark Holdings Inc. (NYSE:CNK) reported mixed financial results in the third quarter of 2017. The top line surpassed the Zacks Consensus Estimate while the bottom line missed the same.
Quarterly net income was $38.1 million or 33 cents per share compared with $65.7 million or 56 cents in the year-ago quarter. The company reported earnings of 33 cents per share, missing the Zacks Consensus Estimate of 35 cents.
Quarterly total revenues of $710.7 million were down 7.5% year over year. However, revenues surpassed the Zacks Consensus Estimate of $707.9 million.
The Admissions segment revenues came in at $425.1 million, reflecting an increase of 10.1% year over year. Concession revenues were $247 million, decreasing 5.5% year over year. Other revenues were $38.6 million, increasing 12.4% year over year. Geographically, U.S. revenues totaled $514.4 million, decreasing 10.2% year over year. International revenues were $200.1 million, reflecting an increase of 0.3% year over year.
Quarterly operating costs and expenses totaled $636.6 million, decreasing 2.2% year over year. Operating income was $74.2 million, declining a substantial 37% year over year. Operating margin was 10.4% compared with 15.3% in the prior-year quarter. Adjusted EBITDA in the reported quarter was $153.7 million, decreasing 16.9% from the year-ago quarter.
At the end of the third quarter of 2017, Cinemark had $469.4 million of cash and cash equivalents and $1,789.1 million of debt outstanding compared with $561.2 million and $1,789.2 million, respectively, at the end of 2016. At the end of the reported quarter, the debt-to-capitalization ratio was 0.57 compared with 0.58 at the end of 2016.
Operating Metrics
In the reported quarter, Cinemark’s worldwide average screen count was 5,939, increasing 1% year over year. Average ticket price was $6.32, up 1.8% year over year. Concession revenues per patron were $3.67, reflecting an increase of 7% year over year. Worldwide attendance was 67.3 million, down 11.7% year over year.
Cinemark Holdings is a leading motion picture exhibition company currently carrying a Cinemark Holdings has a Zacks Rank #4 (Sell).. Its major competitors include AMC Entertainment Holdings Inc. (NYSE:AMC) , Six Flags Entertainment Corp. (NYSE:SIX) and IMAX Corp. (NYSE:IMAX) . AMC Entertainment and Six Flags currently carry a Zacks Rank #3 (Hold) while IMAX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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