Cinemark Holdings, Inc. (NYSE:CNK) Q2 2019 Earnings Conference Call - Final Transcript

Aug 02, 2019 • 08:30 am ET


Cinemark Holdings, Inc. (NYSE:CNK) Q2 2019 Earnings Conference Call - Final Transcript


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Good day. My name is Shelby, and I will be your conference operator today. At this time, I would like to welcome everyone to Cinemark's Second Quarter Earnings Call.

[Operator Instructions] Thank you.

I'd now like to turn the call over to Ms. Chanda Brashears, Vice President of Investor Relations. Please go ahead, ma'am.

Chanda E. Brashears

Thank you Shelby, and good morning, everyone. At this time, I would like to welcome you to Cinemark Holdings Inc's. second quarter 2019 earnings release conference call hosted by Mark Zoradi, Chief Executive Officer; and Sean Gamble, Chief Financial Officer and Chief Operating Officer.

In accordance with the safe harbor provision of the Private Securities Litigation Reform Act of 1995, certain matters that are discussed by members of the management team during this call may constitute forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause Cinemark's actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are set forth in the company's SEC filings.

The Company undertakes no obligation to publicly update or revise any forward-looking statements. Today's call and webcast may include non-GAAP financial measures. A reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures can be found in today's press release, within the Company's quarterly filing on Form 10-Q or on the Company's website,

I'd now like to turn the call over to Mark Zoradi.

Mark Zoradi

Thank you, Chanda, and good morning, everyone. Thank you for joining us to discuss our 2019 second quarter results. We're thrilled to report that during the second quarter, we delivered all-time quarterly highs in global revenue, net income, adjusted EBITDA and earnings per share. These achievements were propelled by the strength across our global-circuit.

A few noteworthy highlights include; domestic year-over-year box office results that surpassed the North America industry by over 300 basis points and extended our out-performance trend to 37 of the past 42 quarters; double-digit domestic food and beverage per cap growth of 11%, which produced another new all-time high per cap, a 17% increase in international attendance, which surged over 30 million patrons, our highest quarterly international attendance since we sold our Mexico operation in 2013 and a 49% increase in international adjusted EBITDA.

We achieved all these results by capitalizing on the second quarter strong film lineup, as well as continuing to execute our customer-oriented strategic initiatives. These initiatives center on the guest comprehensive entertainment experience which include; providing top-notch customer service and amenities, enhancing the quality and variety of our food and beverage offerings and strengthening our targeted and personalized interaction with guests, both within and beyond our physical theaters.

To provide a better picture, let us dig into the status of several of our key initiatives, starting with Cinemark Movie Rewards. During the second quarter, we completed the roll-out of a modification to the structure of our domestic loyalty program. That modification involved enhancing and combining Movie Fan, our free-loyalty tier, along with Movie