Cineplex Announces Credit Facility Extension and Reports November 2023 Box Office Results
TORONTO, Dec. 13, 2023 /CNW/ - (TSX: CGX) – Cineplex Inc. ("Cineplex" or the "Company"), a leading entertainment and media company, announced today it has entered into the Eighth Amended and Restated Credit Agreement ("Credit Agreement") with its lenders. The Credit Agreement extends the maturity date of the prior credit facility from November 13, 2024 to November 13, 2025, amends the standard administrative provisions relating to the potential replacement of benchmark rates, and makes certain other administrative amendments. A copy of the Credit Agreement will be filed under the Company's profile on SEDAR+ available at www.sedarplus.ca.
Management remains focused on de-leveraging and optimizing its capital structure. As a result of strong second and third quarter 2023 results, Cineplex has paid down approximately $55 million under its credit facilities. In addition, the net proceeds from the recently announced sale of P1AG are expected to be received in the first quarter of 2024 and will be used to further pay down debt under Cineplex's credit facilities. These proceeds along with the combined credit facility repayments over the past two quarters would result in total debt repayment in excess of $200 million. The sale of P1AG is subject to regulatory approvals and other customary closing conditions.
"This significant de-leveraging, coupled with the extended maturity of the Credit Agreement, will provide flexibility for the company to execute its plan on optimizing its capital structure, which includes key items such as extending maturity dates and potentially modifying the debt composition," said Gord Nelson, CFO, Cineplex.
Cineplex reported box office revenues of $35 million, which represents 66 per cent of box office revenues when compared to the same month in 2019. In line with comments on the third quarter 2023 earnings call, lower business volumes are expected in the near term due to film release date shifts and production delays related to the impact of the writers' and actors' strikes. In light of this, Cineplex continues to focus on its content broadening strategy by increasing international and alternative programming, which enabled the Company to outperform the North American box office recovery relative to 2019 by an impressive 645 basis points in November.
Leading film performances during the month of November included Hunger Games: The Ballad of Songbirds and Snakes, distributed by Cineplex Pictures, The Marvels, Five Nights at Freddy's, and Trolls Band Together. Bollywood title, Tiger 3, was Cineplex's seventh best film for the month and Cineplex delivered 37 per cent of the North American box office for the film. The TAYLOR SWIFT | THE ERAS TOUR theatrical concert film released on October 13 continues to generate strong results and has garnered $179 million in domestic box office revenues to date. Over the first two weeks of December, the Company's highest-grossing film was an international title, Animal, which even outperformed Hollywood blockbusters. This reinforces Cineplex's continued leadership in supporting international films.
"Over the past several years, we've been ahead of our peers in driving demand for alternative content not tied to Hollywood studios. Our content broadening strategy continues to help us navigate supply shifts and deliver strong attendance numbers. Our international programming and premium strategies are making a meaningful contribution to our overall box office performance, as evidenced by our ability to consistently outperform the North American box office," said Ellis Jacob, President and CEO, Cineplex. "As we enter the holiday period, we are excited about the releases of The Boy and the Heron, Aquaman and the Lost Kingdom, Wonka, Migration and the largely anticipated Hindi title, Dunki, starring Shah Rukh Khan."
Period |
2019 Box Office (i) |
2023 Box Office (i) |
2023 as a Percentage of 2019 |
October |
$54,528 |
$37,354 |
69 % |
November |
$52,314 |
$34,640 |
66 % |
Total |
$106,842 |
$71,994 |
67 % |
(i) Balances are in thousands of dollars. |
|||
Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of over 170 movie theatres and location-based entertainment venues. In addition to being Canada's largest and most innovative film exhibitor, the company operates Canada's favourite destination for 'Eats & Entertainment' (The Rec Room), complexes specially designed for teens and families (Playdium), and a newly launched entertainment concept that brings movies, amusement gaming, dining, and live performances together under one roof (Cineplex Junxion). It also operates successful businesses in digital commerce (CineplexStore.com), alternative programming (Cineplex Events), motion picture distribution (Cineplex Pictures), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group). Providing even more value for its guests, Cineplex is a partner in Scene+, Canada's largest entertainment and lifestyle loyalty program.
Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across Canada and the United States. To learn more, visit Cineplex.com.
Certain statements in this news release may contain forward-looking information (identified by words such as "will", "anticipates", "expects", "intends" and similar expressions suggesting future events or future performance). Such forward-looking information is based on expectations and assumptions made by Cineplex and is subject to risks and uncertainties which may be beyond Cineplex's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. A comprehensive discussion of risks that may impact Cineplex can be found in Cineplex's public reports and filings, which are available under the Company's profile on Sedar+ (www.sedarplus.ca). Cineplex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
Investor Relations: Mahsa Rejali, Vice President, Corporate Development and Investor Relations, [email protected]; Media Relations: Michelle Saba, Vice President, Communications, [email protected]
SOURCE Cineplex
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