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This topic comprises 9 pages: 1 2 3 4 5 6 7 8 9
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Topic: Cinemark to buy Century
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Dennis Benjamin
Phenomenal Film Handler
Posts: 1445
From: Denton, MD
Registered: Feb 2002
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posted 02-20-2007 10:30 AM
Linky Dinky Do
Cinemark going public
07:55 AM CST on Monday, February 19, 2007
Dow Jones/Associated Press
WASHINGTON – Five years after its first attempt to go public, Cinemark Holdings Inc., the holding company for the nation's third largest movie theater chain, decided to follow the path of its two bigger rivals.
The Plano, Texas, movie exhibitor filed a preliminary prospectus this month with the Securities and Exchange Commission for an initial public offering of up to $400 million in common stock.
The No. 1 movie exhibitor in the United States, Regal Entertainment Group, went public in May 2002. Kansas City, Mo.-based AMC Entertainment Inc., the second largest player, is preparing an IPO to sell up to $750 million in common stock.
Cinemark and AMC, which filed its prospectus with the SEC in December, haven't yet determined the number of shares and offering price.
Whichever IPO comes first will test the waters, said John Fitzgibbon, founder of IPO service provider IPOScoop.com.
"If one does well, the other will," Fitzgibbon said.
One positive portent for the theater IPOs was the recent strong debut for National CineMedia Inc., an in-theatre advertising company jointly owned by Regal, AMC and Cinemark.
Centennial, Colo.-based National CineMedia sold 38 million shares at $21 a share on Feb. 7, above the expected range of $18 to $20. The stock opened at $25.50 a share, a 21.4 percent premium to the IPO price.
When Cinemark first attempted to go public in 2002, it planned to sell 11.1 million shares at $17 to $19 a share. It dropped that plan and was acquired two years later by Chicago-based private-equity firm Madison Dearborn Partners LLC for $1.5 billion.
Cinemark's first IPO attempt immediately followed the stock debut of Knoxville, Tenn.-based Regal Entertainment, which priced its IPO at $19 a share. Regal's stock opened at $22 a share on its debut trading day, but in the following five years, the stock traded below $22 most of the time and only recently climbed to that mark again. Regal shares closed Wednesday at $21.66 on the New York Stock Exchange.
Although Cinemark is about one-third smaller than Regal in number of theaters and screen ownership, Cinemark has a better financial picture compared with the pre-IPO Regal of five years ago.
Before Regal went public, the company, already the world's largest movie exhibitor with 5,885 screens in 561 theaters, had reported net losses for two straight years.
Cinemark had lost $14.3 million in 2004 and lost $25.4 million in 2005, but earned $21.2 million for the first nine months of 2006. It hasn't released its results for the full year of 2006.
AMC operates 411 theaters with a total of 5,635 screens, more than Cinemark's 392 theaters and 4,430 screens, and has had nine straight fiscal years of losses. AMC reported a loss from continuing operations of $189 million for the 52 weeks ended Sept. 28.
Cinemark in October acquired Century Theaters Inc., a San Rafael, Calif., movie theater chain that has broad reach in Western states, for over $1 billion. The acquisition brings Cinemark closer in size to AMC.
In its prospectus, Cinemark said it expects to improve its margins as it integrates Century and realizes the full benefit of the combination.
One of the risk factors Cinemark cited in its prospectus is the company's significant long-term debt accumulated from the leveraged buyout of Cinemark by Madison Dearborn in 2004.
As of Sept. 30, Cinemark had over $2 billion in long-term debt. The company incurred $162.1 million of interest expense in 2005 and $125.2 million during the first nine months of 2006.
Cinemark plans to use the net proceeds from the IPO to repay debt and for working capital and other general corporate purposes, according to the company's prospectus. But the company didn't say how much money will be used to reduce debt.
In addition, not all of the estimated $400 million gross proceeds from the IPO will go to the company. Cinemark said in the prospectus that some of the shares will be sold by shareholders.
Cinemark's faster growth can be partially attributed to its Latin America strategy.
Unlike Regal, which almost solely relies on the U.S. market, and AMC, which does 82 percent of its business in the United States and Canada, Cinemark has invested throughout Latin America since 1993 and now operates nearly one-third of its theaters there.
With 113 theaters and 945 screens in 12 Latin American countries, Cinemark generated revenue of $222.8 million from the region for the nine months ended Sept. 30, about 18 percent of its total revenue.
Latin America has been one of the fastest growing movie markets in the world, with box office revenue growing at a compound annual rate of 12.6 percent from 2001 to 2005, compared with a rate of less than 1 percent in the United States, according to statistics by the Motion Picture Association of America.
Cinemark said the annual growth rate for its international revenue has been greater than that of its U.S. operations during the past three years.
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Michael Coate
Phenomenal Film Handler
Posts: 1904
From: Los Angeles, California
Registered: Feb 2001
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posted 04-09-2007 04:12 AM
quote: Mike Croaro
Noticed something interesting regarding the Century 21-22-23 in San Jose, CA. On Fandango the "Cinemark" logos have replaced with the name "Winchester Cinemas" Each of the cinemas is now called Winchester 21, Winchester 22 etc.? Any ideas as to why the name change? The Cinearts at Santana Row and the Century 24 & 25 still retain the Cinemark/Century name.
quote: Eric Hooper
Anybody? Hello?
A partial answer courtesy of answers.com & Wikipedia:
quote:
On August 8, 2006, Texas-based chain Cinemark Theatres announced that it had completed a purchase agreement under which Century Theatres will be acquired with a combination of cash and stock from Cinemark's parent company. [1] The transition to Cinemark was completed on Thursday, October 5, 2006, with the exception of the Century 21, 22, and 23 theatres in San Jose, which were transferred back to their original company, Syufy Enterprises.
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