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Dec 26, 2019
National CineMedia Q4 2019 Earnings Report
Reported record advertising revenue and increased quarterly cash dividend.
Key Takeaways
National CineMedia, Inc. reported a 7.1% increase in total revenue for Q4 2019, reaching $147.2 million, driven by record advertising revenue. Operating income rose by 19.6% to $72.7 million, and net income was $19.1 million, or $0.24 per diluted share. The company's Board of Directors authorized a 12% increase in the quarterly cash dividend to $0.19 per share.
Total revenue for Q4 2019 increased by 7.1% to $147.2 million.
Operating income for Q4 2019 increased by 19.6% to $72.7 million.
Net income for Q4 2019 was $19.1 million, or $0.24 per diluted share.
The Board of Directors authorized a 12% increase in the quarterly cash dividend to $0.19 per share.
National CineMedia
National CineMedia
National CineMedia Revenue by Segment
Revenue by Segment
National Advertising Revenue
CapyFin.com Forward Guidance
For the full year 2020, the Company expects total revenue to be up 1.2% to 4.5% and Adjusted OIBDA to be down 2.7% to up 2.2% from the full year 2019. The Company expects total revenue in the range of $450.0 million to $465.0 million for the full year 2020, compared to total revenue for the full year 2019 of $444.8 million and Adjusted OIBDA in the range of $202.0 million to $212.0 million for the full year 2020 compared to Adjusted OIBDA for the full year 2019 of $207.5 million.
Positive Outlook
- Expects total revenue to be up 1.2% to 4.5% for full year 2020.
- Forecasts total revenue between $450.0 million and $465.0 million for full year 2020.
- Anticipates Adjusted OIBDA to be down 2.7% to up 2.2% for full year 2020.
- Projects Adjusted OIBDA between $202.0 million and $212.0 million for full year 2020.
- Board of Directors authorized a 12% increase in the Company’s regular quarterly cash dividend from $0.17 to $0.19 per share of common stock bringing the dividend to $0.76 per share on an annualized basis.
Challenges Ahead
- Adjusted OIBDA to be down 2.7% to up 2.2% from the full year 2019.
- Integration and other encumbered theater payments primarily from AMC associated with the Carmike Theatres acquisition are expected to negatively impact results.
- Risks related to level of theater attendance or viewership of the Noovie pre-show.
- Increased competition for advertising expenditures.
- Changes to relationships with NCM LLC’s founding members.