Q4 2009 Investor Relations Presentation - at Cineplex.com
Q4 2009 Investor Relations Presentation - at Cineplex.com
Q4 2009 Investor Relations Presentation - at Cineplex.com
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<strong>Cineplex</strong> Galaxy<br />
In<strong>com</strong>e Fund<br />
<strong>2009</strong>
<strong>Cineplex</strong> Entertainment Circuit<br />
The Largest and Most Successful Motion Picture The<strong>at</strong>re Exhibition Company in<br />
Canada<br />
130 The<strong>at</strong>res<br />
with<br />
1,347<br />
Screens
Box Office Market Share<br />
Box Office Revenues and Screen Count<br />
<strong>2009</strong><br />
Canadian Market Share<br />
Box Office (1) Screens Box Office/Screen (2)<br />
Regal $1,992 6,768 $294<br />
AMC $1,663 4,528 $367<br />
Cinemark $1,293 4,896 $264<br />
<strong>Cineplex</strong> $581 1,329 $437<br />
Carmike $346 2,285 $151<br />
(1) In millions<br />
(2) In thousands<br />
Source: Company Reports<br />
North American Exhibitors
Six Core Businesses vs. US<br />
Exhibitors<br />
<strong>Cineplex</strong> US Circuits<br />
Exhibition <br />
Merchandising <br />
Media 100% owned NCMI<br />
Loyalty Joint Venture with<br />
Leading Canadian<br />
Bank<br />
Partner<br />
Particip<strong>at</strong>ion<br />
Altern<strong>at</strong>ive<br />
Programming<br />
<br />
Interactive Website &<br />
E-Commerce<br />
Circuit Only<br />
NCMI<br />
Website
<strong>Cineplex</strong> vs. North American Industry<br />
(Attendance Change)<br />
12.0%<br />
10.0%<br />
8.0%<br />
6.0%<br />
4.0%<br />
2.0%<br />
0.0%<br />
-2.0%<br />
-4.0%<br />
-6.0%<br />
-8.0%<br />
2005 2006 2007 2008 <strong>2009</strong><br />
<strong>Cineplex</strong> -6.7% 1.4% 6.5% 3.8% 10.3%<br />
N.A. Industry -7.1% 1.3% 0.3% -2.6% 5.4%<br />
*Source: MPAA/Movieline<br />
<strong>Cineplex</strong> Average = 3.1%<br />
North American Average = 0.5%
<strong>Cineplex</strong> vs. US Exhibitors - <strong>2009</strong> vs. 2008
Company<br />
OVERVIEW
Six Core Business Areas<br />
Merchandising<br />
Interactive<br />
Exhibition<br />
Customer<br />
Altern<strong>at</strong>ive<br />
Programming<br />
Media<br />
Loyalty
<strong>Cineplex</strong> Media<br />
" Fully integr<strong>at</strong>ed media business<br />
" 94% Canadian market share<br />
" Coast to Coast coverage<br />
" <strong>Cineplex</strong> Digital Media Network<br />
" Advertising Sales:<br />
- In-the<strong>at</strong>re:<br />
- On-screen - full motion and digital preshow<br />
- Lobby - monitors and backlits<br />
- Special media - banners, popcorn bags,<br />
sampling, kiosks etc.<br />
- Magazines:<br />
- Famous, Famous Quebec, Famous Kids<br />
- <strong>Cineplex</strong>.<strong>com</strong>
<strong>Cineplex</strong> Media<br />
Revenue by Component<br />
<strong>2009</strong>
<strong>Cineplex</strong> Media Growth<br />
($millions)<br />
34.2<br />
47.1<br />
56.2<br />
61.0<br />
66.8<br />
2005 2006 2007 2008 <strong>2009</strong>
<strong>Cineplex</strong> Digital Media – The<strong>at</strong>re Network
<strong>Cineplex</strong> Digital Media – External Network
Six Core Business Areas<br />
Merchandising<br />
Interactive<br />
Exhibition<br />
Customer<br />
Altern<strong>at</strong>ive<br />
Programming<br />
Media<br />
Loyalty
Scene Loyalty Program<br />
On October 24, <strong>2009</strong><br />
SCENE reached the<br />
two million<br />
member mark<br />
230<br />
Q2<br />
‘07<br />
400<br />
Q3<br />
‘07<br />
Number of members (000’s)<br />
618 760<br />
<strong>Q4</strong><br />
‘07<br />
Q1<br />
‘08<br />
942<br />
Q2<br />
‘08<br />
1,163<br />
Q3<br />
‘08<br />
2,110<br />
1,961<br />
1,760<br />
1,578<br />
1,375<br />
<strong>Q4</strong><br />
‘08<br />
Q1<br />
‘09<br />
Q2<br />
‘09<br />
Q3<br />
‘09<br />
<strong>Q4</strong><br />
‘09
Scene Loyalty Program<br />
Future Initi<strong>at</strong>ives<br />
" Continued member acquisition<br />
" New reward partners<br />
" New reward pl<strong>at</strong>forms<br />
" Member engagement<br />
" Leverage d<strong>at</strong>abase
Six Core Business Areas<br />
Merchandising<br />
Interactive<br />
Exhibition<br />
Customer<br />
Altern<strong>at</strong>ive Altern<strong>at</strong>ive<br />
Programming<br />
Programming<br />
Media<br />
Loyalty
Altern<strong>at</strong>ive Programming
Six Core Business Areas<br />
Merchandising<br />
Interactive<br />
Exhibition<br />
Customer<br />
Altern<strong>at</strong>ive<br />
Programming<br />
Media<br />
Loyalty
<strong>Cineplex</strong>.<strong>com</strong><br />
<strong>2009</strong><br />
Launched:<br />
" <strong>Cineplex</strong> Mobile Site (May)<br />
" SCENE earn and redeem on <strong>Cineplex</strong><br />
Store (August)<br />
" Gift card sales on <strong>Cineplex</strong> Store<br />
(September)<br />
" SMS mobile pl<strong>at</strong>form (November)
<strong>Cineplex</strong> Store<br />
" DVD new releases, c<strong>at</strong>alogue, box sets, Blu-ray<br />
" Tent Pole merchandising<br />
" Bundled value offers<br />
" Earn and redeem SCENE points<br />
" Electronic sell through - download to own (2010)
Six Core Business Areas<br />
Merchandising<br />
Merchandising<br />
Interactive<br />
Exhibition<br />
Customer<br />
Altern<strong>at</strong>ive<br />
Programming<br />
Media<br />
Loyalty
Merchandising CPP Revenue Growth<br />
$2.64<br />
$2.77<br />
$2.89<br />
$3.04<br />
$3.44<br />
2001 2002 2003 2004 Pro Forma<br />
2005<br />
$3.72<br />
$3.84<br />
$3.96<br />
2006 2007 2008<br />
$4.12<br />
<strong>2009</strong>
Six Core Business Areas<br />
Merchandising<br />
Interactive<br />
Exhibition<br />
Customer<br />
Altern<strong>at</strong>ive<br />
Programming<br />
Media<br />
Loyalty
Exhibition<br />
" 70 million people visited our the<strong>at</strong>res in <strong>2009</strong><br />
" Exhibition fuels ALL core businesses<br />
" Digital and 3D enhances the future of exhibition<br />
" Entertainment “destin<strong>at</strong>ions”<br />
" Hollywood, Bollywood, digital content...<br />
" <strong>Cineplex</strong> brand re-launch<br />
" “Escape With Us” new tagline<br />
" 9 IMAX/IMAX 3D loc<strong>at</strong>ions
Digital Projection<br />
" Industry rollout expected to begin in<br />
2010<br />
" Commitment for 175<br />
RealD loc<strong>at</strong>ions<br />
" 19.8% of box office revenue from 3D<br />
and IMAX present<strong>at</strong>ions for <strong>Q4</strong> <strong>2009</strong><br />
as <strong>com</strong>pared to 3.5% for the prior year<br />
" Adding 70 digital 3D systems in<br />
H1/2010<br />
As of December 31, 2008 As of December 31, <strong>2009</strong><br />
New Builds 100% Digital
Benefits of 3D<br />
Exhibitor Benefits<br />
" A premium ticket price<br />
" Increased <strong>at</strong>tendance<br />
" Increased revenues<br />
" Advertising growth potential<br />
" Altern<strong>at</strong>ive programming<br />
" Broader audience appeal<br />
Consumer Benefits<br />
" New Experience<br />
" Exclusive - available in select loc<strong>at</strong>ions only<br />
" Enhanced enjoyment<br />
" Reason to leave home
New The<strong>at</strong>res and Retrofits<br />
*Plan = 2-3 new the<strong>at</strong>res per year
Up<strong>com</strong>ing<br />
Films
Films for Q1 2010<br />
Av<strong>at</strong>ar<br />
December 18 th<br />
Percy Jackson and the<br />
Olympians: The<br />
Lightning Thief<br />
February 12 th<br />
The Book of Eli<br />
January 15 th<br />
Shutter Island<br />
February 19 th<br />
Valentine’s Day<br />
February 12 th<br />
Remember Me<br />
March 12 th<br />
The Wolfman<br />
February 12 th<br />
She’s Out of My League<br />
March 12 th
Films for Summer 2010<br />
D<strong>at</strong>e Night<br />
April 9 th<br />
Prince of Persia: The<br />
Sands of Time<br />
May 28 th<br />
Wall Street: Money<br />
Never Sleeps<br />
April 23 rd<br />
The A Team<br />
June 11 th<br />
Iron Man 2<br />
May 7 th<br />
The Twilight Saga:<br />
Eclipse<br />
July 2 nd<br />
Sex and the City 2<br />
May 28 th<br />
Knight & Day<br />
July 2 nd
3D Films 2010<br />
Alice in Wonderland 3D<br />
March 5 th<br />
Toy Story 3<br />
June 18 th<br />
How to Train Your<br />
Dragon<br />
March 26 th<br />
Despicable Me<br />
July 9 th<br />
Clash of the Titans<br />
April 2 nd<br />
C<strong>at</strong>s & Dogs: Revenge of<br />
Kitty Galore<br />
July 30 th<br />
Shrek Forever After<br />
May 21 st<br />
Step Up 3D<br />
August 6 th
3D Films 2010<br />
Piranha 3D<br />
August 27 th<br />
Megamind<br />
November 5 th<br />
Guardians of Ga’Hoole<br />
3D<br />
September 24 th<br />
Harry Potter and the<br />
De<strong>at</strong>hly Hallows: Part 1<br />
November 19 th<br />
Alpha and Omega<br />
October 1 st<br />
Tangled<br />
November 26 th<br />
Jackass 3D<br />
October 15 th<br />
Yogi Bear<br />
December 17 th<br />
Saw VII<br />
October 22 nd<br />
Tron Legacy<br />
December 17 th
Financial<br />
HIGHLIGHTS
Record Annual Results<br />
<strong>2009</strong> 2008 %<br />
Box Office $581.1* $510.9 13.7%<br />
Concession 288.3* 251.6 14.5<br />
Other 95.0* 87.1 9.0<br />
Total Revenue 964.3* 849.7 13.5<br />
Adjusted EBITDA 159.9 * 140.5 13.8<br />
EBITDA Margin 16.6% 16.5% 0.1<br />
Attendance 70.0* 63.5 10.2<br />
BPP $8.30* $8.05 3.2<br />
CPP $4.12* $3.96 3.9<br />
*Indic<strong>at</strong>es Annual Record
Revenue Mix<br />
60.3%<br />
29.9%<br />
9.8%<br />
Box Office Concession Other<br />
<strong>2009</strong> 2008 2007 2006 2005<br />
Box Office 60.3% 60.1% 60.7% 62.0% 63.1%<br />
Concessions 29.9% 29.6% 29.2% 28.8% 28.1%<br />
Other 9.8% 10.3% 10.1% 9.2% 8.8%<br />
Total 100.0% 100.0% 100.0% 100.0% 100.0%<br />
36
Attendance<br />
(millions)<br />
56.6<br />
57.4<br />
61.1<br />
63.5<br />
70.0<br />
2005 2006 2007 2008 <strong>2009</strong><br />
37
Box Office Revenue<br />
(millions)<br />
$444.7<br />
$458.8 $488.9 $510.9<br />
$581.1<br />
2005 2006 2007 2008 <strong>2009</strong><br />
$7.73 $7.99 $7.99 $8.05 $8.30<br />
2005 2006 2007 2008 <strong>2009</strong><br />
Box Office Revenue Average Ticket Price<br />
38
Concession Revenue<br />
(millions)<br />
$198.2<br />
$213.5 $235.1 $251.6<br />
$288.3<br />
2005 2006 2007 2008 <strong>2009</strong><br />
$3.44<br />
$3.72 $3.84 $3.96 $4.12<br />
2005 2006 2007 2008 <strong>2009</strong><br />
Concession Revenue CPP<br />
39
Other Revenue<br />
(millions)<br />
$44.3<br />
$67.9<br />
$81.0<br />
$87.1<br />
$95.0<br />
2005 2006 2007 2008 <strong>2009</strong><br />
40
Adjusted EBITDA*<br />
(millions)<br />
$66.6<br />
$117.6<br />
$137.2<br />
$144.9 $164.2<br />
2005 2006 2007 2008 <strong>2009</strong><br />
9.4%<br />
15.9% 17.0% 17.1% 17.0%<br />
2005 2006 2007 2008 <strong>2009</strong><br />
Adjusted EBITDA Adjusted EBITDA Margin<br />
*Results for <strong>Cineplex</strong> Entertainment Limited Partnership<br />
41
Distributions<br />
Earned Paid Payout<br />
<strong>2009</strong> $2.14 $1.26 59%<br />
2008 $1.86 $1.24 67%<br />
2007 $1.72 $1.18 69%<br />
Current Yield = 6.7% (based on March 3, 2010)<br />
112%<br />
80%<br />
Payout R<strong>at</strong>io<br />
69% 67%<br />
59%
Credit Facilities<br />
($millions)<br />
M<strong>at</strong>urity Capacity Drawn<br />
Term Facility July 2012 $235.0 $235.0<br />
2.89<br />
Revolving<br />
Facility<br />
July 2012 130.0<br />
Total $365.0 $235.0<br />
Covenant Leverage R<strong>at</strong>io<br />
2.39<br />
1.94 1.88<br />
1.64<br />
2005 2006 2007 2008 <strong>2009</strong><br />
0
Financial Summary<br />
• Leading market position<br />
• Exhibition - m<strong>at</strong>ure industry<br />
• Stable and predictable cash flows<br />
• Low capital requirements<br />
• Significant growth opportunities<br />
• Strong balance sheet<br />
- Conserv<strong>at</strong>ive payout r<strong>at</strong>io<br />
- Conserv<strong>at</strong>ive leverage r<strong>at</strong>io<br />
- Positive tax <strong>at</strong>tributes
Questions and<br />
ANSWERS
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