National CineMedia Inc. (NCMI, Financial) filed Quarterly Report for the period ended 2009-10-01.
NATIONAL CINEMEDIA operates the largest digital in theatre network in North America that allows them to distribute advertisements and other content for our advertising meetings and events businesses utilizing our proprietary digital content network. They have long term exhibitor services agreements with our founding members Cinemark and Regal the three largest motion picture exhibition companies in the U.S.and multi year agreements with several other theatre operators whom they refer to as network affiliates. The network affiliate agreements grant them exclusive rights subject to limited exceptions to sell advertising on their theatre screens. National Cinemedia Inc. has a market cap of $638.5 million; its shares were traded at around $15.16 with a P/E ratio of 22.7 and P/S ratio of 1.7. The dividend yield of National Cinemedia Inc. stocks is 4.3%.
National advertising revenue of $70.7 million (including $8.6 million of beverage revenue) for the quarter ended October 1, 2009 decreased 13.5% compared to $81.7 million (including $11.7 million of beverage revenue) for the quarter ended September 25, 2008. The 11.4% decrease in national advertising revenue (excluding beverage revenue) was due primarily to a $3.7 million decrease in the annual content partner spending allocation for the third quarter of 2009 as compared to the third quarter of 2008 and a 12.2% decrease in attendance in our network theatres for the quarter, coupled with the shift in annual spending for certain of our advertising clients, as compared to third quarter of 2008. Third quarter revenue was also adversely impacted by a 7.1% decrease in CPM as compared to the comparable quarter of 2008 due to a soft marketplace and the mix of clients that advertised during the quarter. These negative factors were offset by a strong sales effort that resulted in an increase in national inventory utilization to 96.5% from 92.9%. The $3.1 million decrease in beverage revenue was primarily due to a reduction in the amount of beverage advertising time acquired by two of our founding members from 90 to 60 seconds as compared to the 90 seconds acquired during the quarter ended September 25, 2008, as well as a decrease in founding member attendance, offset slightly by a contractual annual 8% increase in beverage advertising CPM and the additional attendance increase associated with the Consolidated Theatres acquired by Regal in the second quarter of 2008.
Local advertising revenue decreased $1.4 million or 7.5% to $17.2 million for the quarter ended October 1, 2009 compared to $18.6 million for the quarter ended September 25, 2008. The decrease is primarily due to the current economic conditions and its effect on local and regional businesses. Local revenue per theatre attendee in the third quarter of 2009 increased 5.3% to $0.11 per attendee compared to $0.10 for the third quarter of 2008 due primarily to the overall attendance decrease noted above.
National advertising revenues of $190.3 million (including $26.9 million of beverage revenue) for the nine months ended October 1, 2009 increased 4.2% from $182.7 million (including $32.5 million of beverage revenue) for the 2008 period. National advertising revenue (excluding beverage revenue) for the nine months ended October 1, 2009 increased 8.8% compared to the 2008 period, primarily due to an increase in national advertising inventory utilization (excluding beverage revenue) to 81.8% from 73.6% offset by a decrease in CPMs of 5.6% (excluding beverage revenue). The increase in utilization is due primarily to a broadening of our overall client base and an increase in the allocation of the annual spending commitment by our content partners for the nine month period in 2009 as compared to the same nine month period in 2008. The increase in inventory utilization was achieved despite a 6.9% increase in our salable advertising impressions in the first three quarters of 2009 compared to 2008. This revenue increase was offset by a $5.6 million decrease in beverage revenue, primarily due to a reduction in the beverage advertising time acquired by two of our founding members, as discussed above, in the nine month period of 2009 compared to 2008, partially offset by a contractual annual 8% increase in beverage CPM.
Local advertising revenue decreased $4.6 million or 10.0% to $41.5 million for the nine months ended October 1, 2009 compared to $46.1 million for the nine months ended September 25, 2008. The decrease is due to the continued difficult economic conditions and the impact on local and regional businesses. Local revenue per theatre attendee for the nine months ended October 1, 2009 declined approximately 13.2% to $0.08 per attendee compared to $0.10 for the 2008 nine month period due to lower revenue and increased attendance.
As of October 1, 2009, our cash, cash equivalents and short-term investments balance was $87.3 million, an increase of $18.1 million compared to the balance of $69.2 million as of January 1, 2009 and an increase of $42.8 million compared to the balance at September 25, 2008 (2008s third quarter end).
Read the The complete ReportNCMI is in the portfolios of Ron Baron of Baron Funds.
NATIONAL CINEMEDIA operates the largest digital in theatre network in North America that allows them to distribute advertisements and other content for our advertising meetings and events businesses utilizing our proprietary digital content network. They have long term exhibitor services agreements with our founding members Cinemark and Regal the three largest motion picture exhibition companies in the U.S.and multi year agreements with several other theatre operators whom they refer to as network affiliates. The network affiliate agreements grant them exclusive rights subject to limited exceptions to sell advertising on their theatre screens. National Cinemedia Inc. has a market cap of $638.5 million; its shares were traded at around $15.16 with a P/E ratio of 22.7 and P/S ratio of 1.7. The dividend yield of National Cinemedia Inc. stocks is 4.3%.
Highlight of Business Operations:
OIBDA and Adjusted OIBDA do not reflect the AMC Loews or Regal Consolidated Theatres integration payments. The integration payments received are added to Adjusted OIBDA to determine our compliance with financial covenants under our senior secured credit facility. AMC made Loews payments to NCM LLC pursuant to the AMC Loews screen integration agreement through April 2009, which were $0.1 million, $0.4 million and $4.4 million for the nine months ended October 1, 2009, the quarter ended September 25, 2008 and the nine months ended September 25, 2008, respectively. Regal made Consolidated Theatre payments to NCM LLC pursuant to the revised ESAs, which was $0.9 million, $2.0 million, $1.1 million and $1.6 million for the quarter and nine months ended October 1, 2009 and the quarter and nine months ended September 25, 2008, respectively.National advertising revenue of $70.7 million (including $8.6 million of beverage revenue) for the quarter ended October 1, 2009 decreased 13.5% compared to $81.7 million (including $11.7 million of beverage revenue) for the quarter ended September 25, 2008. The 11.4% decrease in national advertising revenue (excluding beverage revenue) was due primarily to a $3.7 million decrease in the annual content partner spending allocation for the third quarter of 2009 as compared to the third quarter of 2008 and a 12.2% decrease in attendance in our network theatres for the quarter, coupled with the shift in annual spending for certain of our advertising clients, as compared to third quarter of 2008. Third quarter revenue was also adversely impacted by a 7.1% decrease in CPM as compared to the comparable quarter of 2008 due to a soft marketplace and the mix of clients that advertised during the quarter. These negative factors were offset by a strong sales effort that resulted in an increase in national inventory utilization to 96.5% from 92.9%. The $3.1 million decrease in beverage revenue was primarily due to a reduction in the amount of beverage advertising time acquired by two of our founding members from 90 to 60 seconds as compared to the 90 seconds acquired during the quarter ended September 25, 2008, as well as a decrease in founding member attendance, offset slightly by a contractual annual 8% increase in beverage advertising CPM and the additional attendance increase associated with the Consolidated Theatres acquired by Regal in the second quarter of 2008.
Local advertising revenue decreased $1.4 million or 7.5% to $17.2 million for the quarter ended October 1, 2009 compared to $18.6 million for the quarter ended September 25, 2008. The decrease is primarily due to the current economic conditions and its effect on local and regional businesses. Local revenue per theatre attendee in the third quarter of 2009 increased 5.3% to $0.11 per attendee compared to $0.10 for the third quarter of 2008 due primarily to the overall attendance decrease noted above.
National advertising revenues of $190.3 million (including $26.9 million of beverage revenue) for the nine months ended October 1, 2009 increased 4.2% from $182.7 million (including $32.5 million of beverage revenue) for the 2008 period. National advertising revenue (excluding beverage revenue) for the nine months ended October 1, 2009 increased 8.8% compared to the 2008 period, primarily due to an increase in national advertising inventory utilization (excluding beverage revenue) to 81.8% from 73.6% offset by a decrease in CPMs of 5.6% (excluding beverage revenue). The increase in utilization is due primarily to a broadening of our overall client base and an increase in the allocation of the annual spending commitment by our content partners for the nine month period in 2009 as compared to the same nine month period in 2008. The increase in inventory utilization was achieved despite a 6.9% increase in our salable advertising impressions in the first three quarters of 2009 compared to 2008. This revenue increase was offset by a $5.6 million decrease in beverage revenue, primarily due to a reduction in the beverage advertising time acquired by two of our founding members, as discussed above, in the nine month period of 2009 compared to 2008, partially offset by a contractual annual 8% increase in beverage CPM.
Local advertising revenue decreased $4.6 million or 10.0% to $41.5 million for the nine months ended October 1, 2009 compared to $46.1 million for the nine months ended September 25, 2008. The decrease is due to the continued difficult economic conditions and the impact on local and regional businesses. Local revenue per theatre attendee for the nine months ended October 1, 2009 declined approximately 13.2% to $0.08 per attendee compared to $0.10 for the 2008 nine month period due to lower revenue and increased attendance.
As of October 1, 2009, our cash, cash equivalents and short-term investments balance was $87.3 million, an increase of $18.1 million compared to the balance of $69.2 million as of January 1, 2009 and an increase of $42.8 million compared to the balance at September 25, 2008 (2008s third quarter end).
Read the The complete ReportNCMI is in the portfolios of Ron Baron of Baron Funds.
