Cinemark Upbeat on Theatrical Comeback Following Vaccine Deployment

Cinemark Holdings, the third-largest movie theater operator in the U.S., has what No. 1 exhibitor AMC Entertainment doesn’t: $750 million in free cash for sustaining operations. That much was disclosed Dec. 16 at the MKM Partners Virtual Investor Conference by Cinemark CFO Sean Gamble, who said the chain with 4,500 screens across 345 theaters has enough cash to fund operations — without consumers — into 2022.

No. 1 exhibitor AMC Theatres is looking for $750 million from the sale of stock and debt to sustain operations past next January. AMC, like Regal and Cinemark, saw its business shut down overnight in March following government-mandated closures to stop the spread of the coronavirus. Screens in major markets of California and New York remain mostly shuttered.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Gamble said Cinemark also expects to get $100 million in tax refunds from the CARES Act, the bipartisan pandemic stimulus bill approved earlier this year.

CEO Mark Zoradi said the chain’s first priority entering 2021 is rebuilding the balance sheet, and not acquiring assets from fiscally distressed competitors such as AMC. News reports suggested Cinemark was looking to acquire select AMC screens.

“We are going to be very careful in taking cash that we have on hand … and risking it with acquisitions where we’re not certain what that particular outlet is going to do in a post-pandemic environment,” Zoradi said. “Until a landlord actually owns a property, it obviously is not appropriate for us to be negotiating with that landlord prior to that moment.”

The CEO, like others in Hollywood, said he was “shocked” by Warner Bros.’ decision to release its entire 2021 theatrical slate concurrently into homes through HBO Max. Zoradi said he remained positive Disney would not replicate Warner’s move following discussions with Disney CEO Bob Chapek.

“It’s a bit of an anomaly [in movie distribution] we’re seeing right now,” Zoradi said.

Cinemark Theaters to Reopen Beginning Aug. 14

Cinemark Holdings announced the reopening of its theaters closed due to the pandemic beginning Aug. 14 and continuing through Aug. 28.

All theaters will reopen with enhanced cleaning and safety protocols, according to the company.

Tickets are on sale now for Unhinged and the anniversary re-release of Inception. Tickets will go on sale for The New Mutants on Aug. 18 and The Personal History of David Copperfield on Aug. 19. Tickets for Tenet will go on sale very soon, the company announced.

“Cinemark is thrilled to once again welcome moviegoers across the U.S. to enjoy the unparalleled immersive experience of watching movies on the big screen. Through our very successful test-and-learn theaters, we have heard firsthand from moviegoers that we are truly setting The Cinemark Standard by providing the out-of-home entertainment experience they have been craving in a way that makes them feel protected,” Mark Zoradi, Cinemark CEO, said in a statement. “Furthermore, we have been extremely pleased with the results of our 15 test-and-learn theaters across the U.S., which have consistently been top performers among the 500-plus indoor theaters opened. These strong results, coupled with consumer feedback, underscore that moviegoing is a favorite global pastime, and our teams are trained and prepared to safely welcome guests back to the cinema.”

Additional information on Cinemark’s reopening can be found at www.cinemark.com.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Prior to the newest films hitting the big screen, Cinemark will showcase classics such as The Goonies, Jurassic Park, Back to the Future, Star Wars: The Empire Strikes Back and Raiders of the Lost Ark. Pricing for the Comeback Classics is $5 per adult and $3 for children and seniors. There will also be reduced pricing on popcorn and candy and fountain and bottle drinks.

Follow us on Instagram

Employees will undergo safety and sanitization training prior to reopening and will wear face masks and gloves while working. All will complete a wellness check-in prior to every shift. Each theater will also have a designated Chief Clean and Safety Monitor on duty to ensure Cinemark’s standards of safety, physical distancing, cleanliness and sanitization are met.

  • Each auditorium will be extensively disinfected every morning and again between showtimes using pressurized sprayers with products identified by the EPA to be effective in eliminating COVID-19.
  • Theaters will have staggered showtimes and limited capacities to maximize physical distancing.
  • Seat-Buffering Technology will automatically block seats adjacent to a party upon ticket purchase.
  • Face masks will be mandatory for all guests within the theater and may only be removed for eating and drinking in the auditoriums. Face masks and gloves will be required for all employees.
  • Cinemark is raising the fresh air rate by adding refresh and replace cycles and utilizing supply fans to increase total volume of fresh, outside air flowing into theaters.
  • Cinemark vacuums are equipped with HEPA filters.
  • All public and high-touch spaces will be thoroughly sanitized every 30 minutes.
  • Seat wipes and hand sanitizer will be available for customer use.
  • Guests are encouraged to purchase tickets online and use contactless payment methods for a more contact-free experience. With that, cash payments options will be limited.

 

The expiration date of all points for Cinemark Movie Rewards members that expired during the time theaters were closed will be extended to Dec. 31. Members of the Cinemark Movie Club, the exhibitor’s monthly in-theater membership program, will be able to see three Comeback Classics, with a guest, for free and will enjoy their standard 20% concessions discount on top of the welcome back pricing.

Headquartered in Plano, Texas, Cinemark, comprised of various brands that also include Century, Tinseltown and Rave, operates 534 theaters with 5,977 screens globally (332 theaters and 4,522 screens across 41 states domestically; 202 theaters and 1,455 screens in 15 countries throughout South and Central America).