National CineMedia Q2 2021 Earnings Report
Key Takeaways
National CineMedia, Inc. reported a 250% increase in revenue to $14.0 million for the second quarter ended July 1, 2021, compared to $4.0 million for the same quarter last year. The company's net loss for the quarter was $22.7 million, or $0.28 per diluted share, compared to a net loss of $13.8 million, or $0.18 per diluted share, for the second quarter of 2020.
Revenue increased 250.0% to $14.0 million compared to the prior year.
Operating loss increased 24.4% to $29.6 million.
Net loss was $22.7 million, or $0.28 per diluted share.
Approximately 97.0% of theaters within the Company’s network were open as of July 1, 2021.
National CineMedia
National CineMedia
Forward Guidance
Due to continued uncertainties related to the COVID-19 pandemic, the Company is not providing revenue and Adjusted OIBDA guidance for the fiscal year ending December 30, 2021. The Company expects its revenue exiting the third quarter of 2021 to be at a run rate of approximately half of 2019 levels and to achieve breakeven cash flow after debt service on an accrual basis.
Positive Outlook
- Revenue expected to increase in the third and fourth quarters of 2021.
- Revenue exiting the third quarter of 2021 expected to be at a run rate of approximately half of 2019 levels.
- Expects to achieve breakeven cash flow after debt service on an accrual basis by the end of Q3 2021.
- Trending back towards 2019 revenue levels by the end of 2021.
- Positive fourth quarter 2021 Adjusted OIBDA after debt service expected.
Challenges Ahead
- Continued uncertainties related to the COVID-19 pandemic.
- Impact of changes in consumer behavior on attendance following the reopening of the theaters.
- No revenue and Adjusted OIBDA guidance provided for the fiscal year ending December 30, 2021.
- Contingent upon sales within the scatter market given limited upfront commitments in the third quarter of 2021.
- Assumes that the theatrical release schedule remains firm and box office attendance continues to rebound.