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About Cinemark Usa, Inc.

Showing films is where Cinemark Holdings really makes its mark. The third-largest movie exhibitor in the US (following Regal Entertainment and AMC) has more than 6,000 screens in about 550 theaters in the US and Latin America. The company prefers to build new theaters in midsized markets or in suburbs of major cities where the Cinemark theater is the only game in town. As part of the Digital Content Distribution Network joint venture (with Regal, AMC, Warner Bros, and Universal Pictures), Cinemark's US theaters receive films and other media via satellite. 

Operations

Cinemark generates 57% of its revenue from admissions, while food and drink concessions account for 34%. The remaining 9% comes from ancillary sources such as screen advertising sales and other marketing activities, meeting rentals, and video games located in theater lobbies.

In addition to screening traditional feature films, the company also sells tickets to live and pre-recorded sports programs, concerts from performing arts companies such as the Metropolitan Opera, live in-theater gaming, and other special events. 

Geographic Reach

Cinemark is organized in two reportable business segments based on location: US markets, which generate 80% of sales, and International markets, which generate the remaining 20%.

The company operates theaters in more than 40 US states, as well as Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Curacao, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, and Peru. 

Of the company’s 340 US theaters, nearly 60% are in Texas (about 85), California (more than 65), Ohio (nearly 30), and Utah (about 15).

Outside the US, Brazil is home to about 40% of Cinemark’s theaters, with Colombia accounting for another nearly 20%.

 

Sales and Marketing

The company generally markets its theaters and special events through email, digital advertising, directory film schedules, and ratio and TV advertising.

Cinemark also offers a loyalty program that rewards frequent guests while enabling it to collect data about guest preferences. It has another program, Cinemark Movie Club, that allows US customers to sign up for discounts on concessions. 

Financial Performance

Despite increasing consumption of at-home media, Cinemark's revenue and profits have tracked consistently upwards over the past five years. The company has benefited from audiences flocking to see the plethora of super hero and popular sci-fi films releases from Hollywood. Such films take advantage of advances in tech-driven special effects, which look more impressive on the big screen than at home. A focus on Latin American markets with growing populations and continued retail development also contributed to growth in some years.

Cinemark reported revenues of $3.2 billion in 2018, up 7.7% from the prior year. Revenue from admissions grew 2.2% and concessions revenue grew 6.7%. Concessions growth of about 13% in the US for 2018 was driven by expanded offerings, price increases, and new theaters. Revenue gains in the US were offset partially by declines in Latin America in 2018; Cinemark blames lower attendances outside the US on weaker consumer appeal of the international film slate that year compared to 2017.  

Net income was $214 million in 2018, down from $264 million in 2017. Higher costs for film rentals, advertising, concession supplies, salaries and wages, and utilities contributed to the drop. Depreciation expenses also increased, primarily related to theater remodels, including Luxury Lounger conversions, and new theaters. 

Cash at the end of 2018 was $426.2 million. Cash from operating activities amounted to $556.9 million for 2018, while investing activities used $451.4 million, mainly for the development, remodel, and acquisition of theaters. Financing activities used $192.6 million, mostly for shareholder dividend payouts.

 

Strategy

The company's growth strategy focuses on international expansion, primarily in Latin America, through construction of modern, state-of-the-art theaters in growing urban markets.

Cinemark faces intense competition from other forms of movie exhibition, including video on-demand and internet streaming. In response, the chain has developed a variety of initiatives designed to court audiences looking for more than just a regular movie viewing experience they can get at home. Newer theater amenities include Luxury Lounger recliner seats, enhanced food and beverage offerings beyond traditional popcorn and candy, and large format screens equipped with the latest digital technology. The company's XD Extreme Digital Cinema, or XD, includes wall-to-wall and ceiling-to-floor screens, wrap-around sound, and superior image quality. Some locations offer IMAX screens, motion seats, and virtual reality.

The company builds and acquires new theaters in markets it believes it can establish and maintain a strong market presence. In 2018, it built eleven new theaters with 81 screens and acquired three theaters with 19 screens. It has commitments to open more than 200 additional new screens over the next three years.

Company Background

Lee Roy Mitchell and partner Paul Broadhead founded Cinemark in 1985. By the end of 1989, Cinemark had about 660 screens in 18 states. The company spent several decades constructing its own theaters and expanding through acquisitions to became one of the nation's leading movie theater chains.

Cinemark Usa, Inc.

3900 DALLAS PKWY STE 500
Plano, TX 75093-7865
Phone: 1 (972) 665-1000

Stats

Employer Type: Publicly Owned
Chb: Lee Roy Mitchell
Employees (This Location): 185
Employees (All Locations): 16,500

Major Office Locations

Plano, TX

Other Locations

Benton, AR
Conway, AR
Little Rock, AR
Sierra Vista, AZ
Cathedral City, CA
Chico, CA
Chino, CA
Danville, CA
Elk Grove, CA
Fremont, CA
Hanford, CA
Huntington Beach, CA
La Mirada, CA
Lancaster, CA
Long Beach, CA
Milpitas, CA
Palmdale, CA
Redding, CA
Tracy, CA
Victorville, CA
Yuba City, CA
Colorado Springs, CO
Denver, CO
Fort Collins, CO
Greeley, CO
Pueblo, CO
Wilmington, DE
Jacksonville, FL
Tallahassee, FL
Fayetteville, GA
Ames, IA
Bourbonnais, IL
Downers Grove, IL
Melrose Park, IL
Indianapolis, IN
Shawnee Mission, KS
Ashland, KY
Lexington, KY
Louisville, KY
Paducah, KY
Lake Charles, LA
Monroe, LA
Shreveport, LA
Hadley, MA
West Springfield, MA
Towson, MD
Warren, MI
Mankato, MN
Kansas City, MO
Gulfport, MS
Pearl, MS
Tupelo, MS
Asheboro, NC
Greensboro, NC
Matthews, NC
Salisbury, NC
Omaha, NE
Somerdale, NJ
Reno, NV
Rochester, NY
Alliance, OH
Bowling Green, OH
Canton, OH
Cleveland, OH
Columbus, OH
Gahanna, OH
Macedonia, OH
Ontario, OH
Wooster, OH
Youngstown, OH
Oklahoma City, OK
Sand Springs, OK
Tulsa, OK
Springfield, OR
White City, OR
Erie, PA
Monaca, PA
Moosic, PA
Myrtle Beach, SC
Summerville, SC
Abilene, TX
Amarillo, TX
Athens, TX
Beaumont, TX
Brownsville, TX
Cedar Hill, TX
Cedar Park, TX
Cleburne, TX
College Station, TX
Corpus Christi, TX
Dallas, TX
Deer Park, TX
Del Rio, TX
Denton, TX
El Paso, TX
Garland, TX
Grand Prairie, TX
Grapevine, TX
Harlingen, TX
Houston, TX
Hurst, TX
Katy, TX
Lancaster, TX
Laredo, TX
Lewisville, TX
Lubbock, TX
Lufkin, TX
Mcallen, TX
Mckinney, TX
Mission, TX
Paris, TX
Pasadena, TX
Pearland, TX
Pflugerville, TX
Pharr, TX
Plainview, TX
Plano, TX
Rockwall, TX
Round Rock, TX
San Angelo, TX
San Antonio, TX
Sherman, TX
Spring, TX
Stephenville, TX
Texarkana, TX
Texas City, TX
The Woodlands, TX
Victoria, TX
Webster, TX
American Fork, UT
Draper, UT
Layton, UT
Ogden, UT
Salt Lake City, UT
Sandy, UT
West Jordan, UT
Norfolk, VA
Kenosha, WI
Barboursville, WV