Cinemark Stock Pops On Record Q3 Revenue

Cinemark, the nation’s third largest exhibitor, saw revenue jump 23% to $1.1 billion for the three months ended in September, its best-ever third quarter amid a broad box office rebound.

The shares are up about 4% in premarket trade.

The company reported gains across categories including premium large format box office (XD, Imax) and ScreenX), which surged 50% year-over and surpassed the chain’s prior record by 20%.

Admission revenue rose to $530.8 million from $429.7 million. Attendance grew to 37.4 million from 33.2 million, and ticket prices were $11.16 vs $10.50.

Concessions revenue rose to $414 million from $337 million, with revenue per patron of $8.66 from $8.20.

Net income jumped to $123 million (EPS of $1.04) from $49.5 million ($0.40).

“Our ability to translate positive box office momentum from a compelling slate of summer releases into consistent, meaningful earnings growth reflects the strength of our operating model, the effectiveness of our team and the sustained impact of our strategic initiatives,” said Cinemark President and CEO Sean Ganble. “Looking ahead, we remain highly confident in our long-term growth prospects and value proposition, supported by favorable consumer trends and content dynamics, as well as the distinct advantages we derive from our high-quality circuit, healthy balance sheet and differentiated competitive position.”

Plano, Texas-based Cinemark invested $70 million last quarter and $170 year to day in capital expenditures including on new build theaters, recliner remodels, laser projector conversions, premium amenities and other initiatives, with full-year expected investment anticipated at about $250 million.

The company generated $136 million of cash from operations and $66 million of free cash flow and ended the quarter with $556 million of cash.

The company is hosting a call at 8:30 am ET.