Cinemark Grows Q4 Revenue, Net Income and EPS; Tops Analyst Forecasts

A day before releasing fourth quarter 2014 earnings, company declared dividend of $0.25 per share and hit a stock price high

Last Updated: February 18, 2015 @ 10:37 AM

Cinemark released its fourth-quarter 2014 earnings on Wednesday morning before the U.S. stock markets opened, reporting revenue of $659.9 million, net income of $47.3 million, and basic/diluted earnings per share of $0.41.

The results topped Wall Street’s expectations: Analysts had forecasted earnings per share of $0.33 on $644 million in revenue.

For the comparable three-month period a year ago, Cinemark posted diluted EPS of $0.13 on revenue of $651.9 million and net income of $15.6 million.

On Tuesday morning, Cinemark declared a dividend of $0.25 per share. When the stock market closed that afternoon, company shares (CNK) were valued at $39.08 apiece, up $0.15 each, or 0.39 percent.

Previously the stock had closed at $38.93, and opened a nickel higher on Tuesday. During the day, Cinemark had hit a new high of $39.29 per share.

“Cinemark’s domestic box office revenues over-indexed the industry by 140 basis points for the fourth quarter of 2014, and worldwide, Cinemark exceeded the North American industry by more than 600 basis points on a currency adjusted basis,” stated Tim Warner, Cinemark’s chief executive officer. “Looking back on 2014, I am proud of our strategic initiatives progression during the year, including adding 170 new state-of-the art screens to our circuit, completing the conversion of our worldwide first-run circuit to digital projection, and expanding our XD brand to a total of 179 screens, all while maintaining our industry-leading Adjusted EBITDA.”

That adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $156.9 million for 2014’s Q4.

As of Dec. 31, 2014, Cinemark’s aggregate screen count was 5,676. The company had commitments to open 18 new theatres and 158 screens during 2015, and five new theatres with 53 screens after the calendar year.

Cinemark is the third-largest theater chain behind Regal and AMC.

Generally speaking, a sluggish calendar fourth quarter has capped a so-so 2014 for the big screen in general — but 2015 is expected to be biggest year ever at box office, already running 10 percent ahead of last year. And huge film franchises, such as the next “Bond,” “Avengers” and “Stars Wars,” are still to come this year — good news for Cinemark and its competition.

The company hosted its investor call at 8:30 a.m. ET on Wednesday.

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