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Apr 01, 2021
National CineMedia Q1 2021 Earnings Report
Announced consolidated results for the fiscal first quarter ended April 1, 2021, with revenue significantly impacted by theater closures and COVID-19 restrictions, but expressed optimism for industry revival.
Key Takeaways
National CineMedia, Inc. reported a challenging first quarter of 2021 due to the ongoing COVID-19 pandemic, which significantly impacted in-theater advertising revenue. The company managed liquidity through cost-control measures and a new term loan. Despite the difficulties, NCM is optimistic about a cinema industry revival with increasing theater attendance and a strong film slate expected for the second half of the year.
Total revenue decreased by 91.7% to $5.4 million compared to $64.7 million in the same quarter last year.
Operating loss increased by 677.6% to $28.3 million, compared to an income of $4.9 million in the first quarter of 2020.
Net loss for the first quarter of 2021 was $19.4 million, or $0.25 per diluted share, compared to a net loss of $3.7 million, or $0.05 per diluted share, for the first quarter of 2020.
As of May 7, 2021, approximately 77% of the theaters within the Company's network are now open, as compared to 60% as of April 1, 2021.
Forward Guidance
Due to the continued uncertainties related to the COVID-19 pandemic over the near term and the impact of changes in consumer behavior on attendance following the reopening of the theaters, the Company is not providing revenue and Adjusted OIBDA guidance for the fiscal year ending December 30, 2021.
Positive Outlook
- Revenue to begin to meaningfully increase in June 2021.
- Network attendance levels expected to pick up in the second quarter of 2021.
- Theatrical release schedules firming-up for the remainder of 2021.
- Expects to recognize more meaningful in-theater revenue in the third quarter of 2021 with a continued build into the fourth quarter of 2021 that will benefit from our participation in the 2021 television upfront.
- Expectation that late in the third quarter of 2021 we will achieve breakeven cash flow after debt service on an accrual basis and by the end of 2021 we expect to be trending back towards 2019 revenue levels
Challenges Ahead
- Continued uncertainties related to the COVID-19 pandemic over the near term
- Impact of changes in consumer behavior on attendance following the reopening of the theaters
Historical Earnings Impact
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