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National CineMedia
🇺🇸 NASDAQ:NCMI
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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.

Total Revenue
$147M
Previous year: $137M
+7.1%
EPS
$2.4
Previous year: $2.3
+4.3%
Adjusted OIBDA
$83.5M
Previous year: $76.2M
+9.6%
Total Attendance
154M
Previous year: 169.4M
-9.1%
National Ad Revenue per Attendee
$0.716
Gross Profit
$136M
Previous year: $127M
+7.3%
Cash and Equivalents
$80.9M
Previous year: $41.4M
+95.4%
Total Assets
$1.13B
Previous year: $1.14B
-1.0%

National CineMedia

National CineMedia

National CineMedia Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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