Profile: Cinemark Holdings Inc (CNK.N)
18 Dec 2013
Cinemark Holdings, Inc. , incorporated on August 2, 2006, is engaged in the motion picture exhibition business with theatres in the United States, Brazil, Mexico, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala. The Company manages its business in two segments: United States markets and international markets. During the year ended December 31, 2012, the Company also managed additional theatres in the United States Brazil and Colombia. The Company has 298 theatres and 3,916 screens in 39 states in the United States. As of December 31, 2012, the Company operated 465 theatres and 5,240 screens in 39 states and 13 Latin American countries. The Company selectively builds or acquires new theatres in markets where the Company can establish and maintain a market position. The Company has 109 XD auditoriums in its circuit. The Company's theatres in the United States are primarily located in mid-sized United States markets, including suburbs of metropolitan areas. In May 2013, Cinemark Holdings Inc completed the acquisition of Rave Cinemas. In May 2013, Cinemark Holdings Inc purchased 10 acres of land to construct a new 14-screen, all-digital movie theatre in Roanoke, Texas. In August 2013, Carmike Cinemas Inc c announced the closing of purchase of three digital entertainment complexes totaling 52 screens in Louisville, KY (Stonybrook 20), Voorhees, NJ (Ritz Center 16) and Hickory Creek, TX (Hickory Creek 16) from Cinemark USA, Inc., a wholly owned subsidiary of Cinemark Holdings, Inc. In November 2013, Cinemark Holdings Inc announced that it has closed on the sale of all the issued and outstanding shares of capital stock of Cadena Mexicana de Exhibicion, S.A. de C.V. and its subsidiaries to Grupo Cinemex, S.A. de C.V.
In the domestic marketplace, the Company's film department negotiates with film distributors, which are made up of the traditional film companies, specialized and art divisions of some of the film companies, and many other independent film distributors. The film distributors are responsible for determining film release dates, the related marketing campaigns and the expenditures related to marketing materials, television spots and other advertising outlets. The marketing campaign of each movie may include tours of the actors in the movies and coordination of articles and features about each movie. The Company is responsible for booking the films in negotiated film zones, which are either free zones or competitive zones. The Company is an exhibitor in approximately 91% of the 253 film zones in which its first run United States theatres operate. Internationally, the Company's local film personnel negotiate with local offices of film distributors, as well as local film distributors to license films for its international theatres. In the international marketplace, films are not allocated to a single theatre in a geographic film zone, but played by competitive theatres simultaneously. The Company regularly plays art and independent films at many of its United States theatres, providing a variety of film choices to its patrons.
Food and Beverage
The Company offers concession products that primarily include various sizes and types of popcorn, soft drinks, coffees, juices, candies and quickly-prepared food, such as hot dogs, nachos and ice cream. Different varieties and flavors of candy and drinks are offered at theatres based on preferences in that particular market. The Company's point of sale system allows the Company to monitor product sales and make changes to product mix when necessary. Specially priced combos and promotions are introduced on a regular basis. The Company's theatres are designed to optimize efficiencies at the concession stands, which include multiple service stations throughout a theatre to facilitate serving patrons in an expedited manner. The Company has self-service cafeteria-style concession areas in many of its domestic theatres, which allow customers to select their own refreshments and proceed to the cash register when they are ready Concession designs in many of the Company's new domestic theatres has incorporated the self-service model.
Pre-Feature Screen Advertising
In the Company's domestic markets, its theatres are part of the in-theatre digital network operated by National CineMedia, LLC (NCM). NCM's primary activities that impact the Company's theatres include advertising through its branded First Look, lobby promotions and displays, live and pre-recorded events, including concerts, sporting events and other non-film entertainment programming. As of December 31, 2012, the Company had an approximate 16% ownership interest in NCM. In certain of the Company's international markets, the Company outsources its screen advertising to local companies who have established relationships with local advertisers that provide similar benefits as NCM.
The Company competes with Regal, AMC, Carmike Cinemas, Inc., Cinepolis, Cinemex and National Amusements.
Cinemark Holdings Inc
Suite 500, 3900 Dallas Parkway
PLANO TX 75093