Cinemark Holdings reported a net loss of $59.6 million for the three-month period ending March 31, the first quarter the company said it was impacted by the ongoing coronavirus pandemic. The cinema chain was forced to close its theater doors in March to halt the spread of the virus.
On Wednesday, the theater chain reported a quarterly net loss of $59.6 million or a loss per share of 51 cents. Analysts following the stock via Yahoo! Finance were expecting a loss of 18 cents in the quarter. That after reporting net income of $32.7 million, or earnings per share of 28 cents during the same quarter a year ago.
Revenue for the first quarter was $543.6 million, down from $714.7 million compared with the same quarter last year. Analysts were forecasting for $556.7 million in revenue.
The worse may be yet to come, with theaters remaining closed throughout the second quarter.
“As a direct result of the global COVID-19 pandemic, we were forced to close all of our theaters in the middle of March, which had a significant impact on our first-quarter results, and continues to impact us today,” CEO Mark Zoradi said in a statement. “We are looking forward to welcoming our guests and team members back to our theaters and are pleased to have now shifted our attention to domestic re-opening, which we plan to initiate in a multi-phased approach beginning June 19.
“After months of home-sheltering, I am optimistic that these unparalleled factors offer movie-goers a much-needed relief that bodes well for Cinemark, and our industry as a whole, as theaters re-launch,” he continued.
Cinemark said that admissions revenue in the first quarter fell to $292.5 million from $395.5 million a year ago, while revenue from concessions revenues was down to $190.4 million, from $251.3 million. Cinemark’s attendance for the three months dropped nearly 27% to 45.8 million patrons, while the average ticket price increased 0.6% to $6.39 and concession revenues per patron increased 3.2% to $4.16.
Cinemark has been heavily impacted by the coronavirus pandemic since being forced to close its doors in mid-March as a result. Like other exhibitors and companies in Hollywood, it has taken drastic measures to ensure the business will be able to survive and recover from the pandemic. Chief Financial Officer Sean Gamble has undertaken a formal daily review and approval process for all outgoing procurement and payment requests, and discussing with landlords and major suppliers whether certain contractual payments can be delayed.
Zoradi, whose pay rose to $6.3 million in 2019, is currently going without a salary as the company’s revenues have ceased.
In April the chain laid off more than 17,500 hourly employees and furloughed 50% of its corporate employees at 20% of their salary, and the company said it planned to issue $250 million worth of debt securities for general corporate purposes and to increase liquidity.
As of March 31 Cinemark’s screen count was 6,145 and the company had commitments to open five new theaters and 48 screens during the remainder of 2020.
The company will hold a conference call with analysts and the Wall Street community at 8:30 AM Eastern.