Cineplex Inc. Reports Third Quarter 2022 and October 2022 Box Office Results

TORONTO, Nov. 10, 2022 /CNW/ - (TSX: CGX) - Cineplex Inc. ("Cineplex" or the "Company") today released its financial results for the three and nine months ended September 30, 2022. Unless otherwise specified, all amounts are in Canadian dollars.

Third Quarter Summary

Image 1 (CNW Group/Cineplex)

• Total revenues increased 35.7% to $339.8 million as compared to the third quarter of 2021.
• Net income improved to positive $30.9 million as compared to a net loss of $33.6 million for the third quarter of 2021.
• Adjusted EBITDAaL increased 89.8% to $20.4 million as compared the third quarter of 2021.
• Record all-time quarterly adjusted EBITDAaL in the Player One Amusement Group business of $9.0 million.
• Record all-time quarterly adjusted EBITDAaL in the Location-Based Entertainment business of $9.7 million.
• Box office revenues reached 70% of the third quarter 2019 levels.

"During the third quarter, Cineplex reported total revenues of $339.8 million and adjusted EBITDAaL of $20.4 million, a 90 percent increase from the same quarter last year" said Ellis Jacob, President & CEO. "Despite limited Hollywood film product, we still achieved box office revenues of 70 percent compared to the same quarter in 2019. This was driven by strong box office in July and the success of our international film product. Cineplex consistently takes an industry leading market share in international cinema. In fact, we earned an impressive 80 percent of the North American box office for the Punjabi film, Chhalla Mud Ke Nahi Aaya. In addition, our commitment to growing our diversified businesses continues to deliver results, including an all-time quarterly record adjusted EBITDAaL in the Player One Amusement Group and Location-Based Entertainment businesses."

Jacob continued, "this quarter we are celebrating a few important milestones from across the business, including the overwhelming turnout for National Cinema Day on September 3, 2022, where we welcomed over half a million guests, which proved to be Cineplex's busiest day so far in 2022 and third busiest day in the last five years. It was truly remarkable to see the industry work together– with large and small theatre chains across Canada, the United States and Europe celebrating moviegoing. Also, during the quarter, we welcomed Empire Company Limited to the Scene+ loyalty program as co-owners alongside Cineplex and Scotiabank, and we have seen strong membership growth in recent months. We are also excited about the addition of Home Hardware Stores Limited as Scene+ loyalty partners with a launch expected to take place in the summer of 2023."

"With respect to the Cineworld litigation, on September 7, 2022, Cineworld filed for Chapter 11 Bankruptcy in the United States and the following day, the US Bankruptcy Court ordered a worldwide stay of all enforcement proceedings against Cineworld. We attempted to lift the stay with respect to the ongoing appeal in Ontario, but our request was denied. Therefore, for the time being, the appeal in Ontario will remain stayed until a date to be determined. With that said, we continue to work closely with our advisors to monetize and maximize the judgement claim," said Jacob.

"As we move forward, we have many highly anticipated titles hitting the big screen, including the release of two of the most anticipated films of 2022, Black Panther: Wakanda Forever and Avatar: The Way of Water, which is the sequel to the highest grossing film of all time. We are focused on increasing our offerings and generating momentum for our business, as evidenced through the partnerships with non-traditional studios such as Netflix for the theatrical release of Glass Onion: A Knives Out Mystery, and through the success of International Cinema in attracting a wide Canadian audience. With the backdrop of recessionary concerns, Cineplex is well positioned across all its business units to further capitalize on consumer demand for affordable out-of-home entertainment," Jacob concluded.

Month	2019 Box Office (i)	2022 Box Office (i)	2022 as a Percentage of 2019
July	$76,935	$65,618	85 %
August	$56,537	$36,060	64 %
September	$44,393	$23,021	52 %
Q3 2022  Total	$177,865	$124,700	70 %
October	$54,528	$33,907	62 %
(i) Amounts are in thousands of dollars.

Third Quarter and Year to Date Financial Results

Financial highlights	Third Quarter			Year to Date
(in thousands of dollars, except theatre attendance in thousands of patrons and per share and per patron amounts)	2022	2021	Change (i)	2022	2021	Change (i)
Total revenues	$339,837	$250,380	35.7 %	$918,438	$356,718	157.5 %
Theatre attendance	11,084	8,272	34.0 %	28,837	9,835	193.2 %
Net income (loss) (ii)	$30,857	$(33,552)	NM	$(10,055)	$(226,944)	-95.6 %
Net income (loss) as a percentage of sales (ii)	9.1 %	(13.4) %	22.5 %	(1.1) %	(63.6) %	62.5 %
Cash provided by operating activities	$5,811	$52,023	-88.8 %	$47,526	$33,524	41.8 %
Box office revenues per patron ("BPP") (iii)	$11.25	$11.38	-1.1 %	$11.83	$11.23	5.3 %
Concession revenues per patron ("CPP") (iii)	$8.35	$8.58	-2.7 %	$8.65	$8.39	3.1 %
Adjusted EBITDA (iii)	$63,094	$48,606	29.8 %	$177,508	$1,599	NM
Adjusted EBITDAaL (ii) (iii)	$20,430	$10,762	89.8 %	$50,475	$(104,493)	NM
Adjusted EBITDAaL margin (ii) (iii)	6.0 %	4.3 %	1.7 %	5.5 %	(29.3) %	34.8 %
Adjusted free cash flow (iii)	$1,568	$(5,753)	NM	$1,667	$(150,485)	NM
Adjusted free cash flow per share (iii)	$0.025	$(0.091)	NM	$0.026	$(2.376)	NM
Earnings per share ("EPS")  - basic (ii)	$0.49	$(0.53)	NM	$(0.16)	$(3.58)	-95.5 %
EPS - diluted (ii)	$0.43	$(0.53)	NM	$(0.16)	$(3.58)	-95.5 %

i.	Period over period change calculated based on thousands of dollars except percentage and per share values. Changes in percentage amounts are calculated as 2022 value less 2021 value.
ii.	2022 includes expenses related to the Cineworld Transaction and associated litigation and claims recovery in the amount of $1.2 million (2021 - $4.1 million) for the third quarter and $2.7 million (2021 - $9.1 million) for the year-to-date.
iii.	Adjusted EBITDA, adjusted EBITDAaL, adjusted EBITDAaL margin, adjusted free cash flow per common share of Cineplex, BPP and CPP are measures that do not have a standardized meaning under generally accepted accounting principles ("GAAP").  These measures as well as other Non-GAAP other financial measures reported by Cineplex are defined in the 'Non-GAAP and Other Financial Measures' section at the end of this news release.

KEY DEVELOPMENTS IN THE THIRD QUARTER OF 2022

The following describes certain key business initiatives undertaken and results achieved during the third quarter of 2022 in each of Cineplex's core business areas:

FILM ENTERTAINMENT AND CONTENT

Theatre Exhibition

• Reported third quarter box office revenues of $124.7 million, an increase of $30.6 million (32.5%) from $94.1 million due to a 34.0% increase in theatre attendance.
• Celebrated National Cinema Day on September 3, 2022, welcoming approximately 550,000 guests across the theatre exhibition circuit, representing the largest attendance for a single day for the year to date, and the third largest attendance for a single day in the last five years, following Avengers: Endgame that opened in April 2019 and Avengers: Infinity War that opened in April 2018.
• BPP was $11.25, $(0.13) or 1.1% lower than $11.38 reported during the prior year period. The decrease was primarily due to product offerings at discounted prices on National Cinema Day.
• Opened British Columbia's second ScreenX auditorium at Cineplex Cinemas Langley.

Theatre Food Service

• Reported third quarter theatre food service revenues of $92.5 million, an increase of $21.6 million (30.4%) compared to the prior year period primarily due to a 34.0% increase in theatre attendance.
• National Cinema Day held on September 3, 2022, resulted in the second highest grossing food service revenue day of 2022.
• CPP was $8.35, representing a decrease of $0.23 or 2.7% when compared to the prior year period, primarily due to the impact of National Cinema Media Day held on September 3, 2022, attracting discount seekers, resulting in lower average consumer spend and purchase incidence among total guests visiting Cineplex's theatre circuit on that day.

Alternative Programming

• Alternative Programming (Cineplex Events) in the third quarter of 2022 featured the return of violinist and conductor André Rieu's summer concerts from Maastricht, Netherlands, the faith-based film Lifemark, and the return of stage events to the big screen with the National Theatre's production of Prima Facie starring Jodie Comer.
• Cineplex Distribution (Cineplex Pictures) released the anime hit Dragon Ball Super: Super Hero, along with three international films Chili Laugh Story (China), The Killer (South Korea) and Khetet Mazinger (Egypt).
• Featured numerous strong performing international films, including Chhalla Mud Ke Nahi Aaya (Punjabi), Laal Singh Chaddha (Hindi) and Maid in Malacanang (Tagalog), of which Cineplex represented 80.0%, 42.0% and 37.5%, respectively, of the total North American market share.

Digital Commerce

• Total registered users for Cineplex Store increased 7% from the prior year period, reaching approximately 2.3 million registered users.

MEDIA

• Reported third quarter media revenues of $25.2 million, an increase of $11.2 million or 79.4% as compared to the prior year period.

Cinema Media

• Reported third quarter cinema media revenues of $15.1 million, an increase of $8.5 million or 127.4% over the prior year period, due to increases in cinema advertising as a result of increased theatre attendance and a return by advertisers to cinema.

Digital Place-Based Media

• Reported third quarter revenues of $10.1 million, an increase of $2.7 million or 36.5% due to increased advertising at digital out of home networks and higher project installation revenues.

AMUSEMENT AND LEISURE

• Reported all-time quarterly record revenues in the third quarter of $69.6 million, an increase of $16.3 million or 30.5% compared to the prior year period.

Player One Amusement Group

• Reported third quarter record revenues of $45.5 million, an increase of $10.1 million or 28.4% compared to the prior year period. Adjusted EBITDAaL during the third quarter was an all-time quarterly record of $9.0 million, an increase of $2.0 million or 28.4% compared to the prior year period. The increase in revenues and adjusted EBITDAaL were primarily due to increases in P1AG amusement revenues from US and Canada route locations at FEC's and theatres, along with an increase in distribution sales.

Location-based Entertainment

• Reported all-time record revenues in the third quarter of $31.0 million, an increase of $9.3 million or 42.5% compared to the prior year period. The current period included a third quarter record for food service revenues of $10.4 million, all-time quarterly record amusement revenues of $20.2 million and $0.5 million of media and other revenues. Adjusted EBITDAaL for the third quarter was an all-time quarterly record of $9.7 million, an increase of $0.5 million or 5.6% compared to the prior year period. The increase in revenues and adjusted EBITDAaL were primarily due to all LBE venues being open during the entire period compared to the prior year period that was subject to capacity restrictions.

LOYALTY

• Membership in the Scene+ loyalty program increased to 10.8 million members during the period ended September 30, 2022.

• Welcomed Empire Company Limited as a co-owner of Scene+ during the third quarter, providing members with increased opportunities to earn and redeem points through Empire's family of brands firstly in Atlantic Canada on August 11, 2022, in Western Canada on September 22, 2022, and across Canada by early 2023.
• Recognized a gain of $50.1 million on the disposition of its 1/6th ownership interest in Scene+, leaving a 1/3rd ownership interest in Scene+ with the satisfaction of specific non-financial milestones related to the reorganization of Scene+.
• Announced that Home Hardware Stores Limited will be joining Scene+ with a launch expected to take place in the summer of 2023, providing members with additional opportunities to earn and redeem points.

CORPORATE

• In recognition of National Indigenous Peoples Day, Cineplex donated $1 from every movie ticket sold, plus every purchase on the Cineplex Store, at The Rec Room and Playdium, to imagineNATIVE, the world's largest presenter of Indigenous screen content.
• Commemorated National Day for Truth and Reconciliation on September 30, 2022 by partnering with the Orange Shirt Society to raise awareness and honour Indigenous communities through Pre-Show content and through donations to the Orange Shirt Society.
• Fundraised and sponsored local Pride celebrations across Canada, including employee participation in select Pride parades, as well as made a corporate donation to Rainbow Railroad in support of LGBTQ2IA+ programs.
• Donated the proceeds raised during National Accessibility Week to the Canadian Paralympic Committee, an organization with a mission ensuring that people, programs, and equipment are in place so that Canadians with disabilities can be active in sports.

NON-GAAP AND OTHER FINANCIAL MEASURES

National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure ("NI 52-112") imposes obligations regarding disclosure of non-GAAP financial measures, non-GAAP ratios, and other financial measures. Cineplex reports on certain non-GAAP measures, non-GAAP ratios, supplementary financial measures and total segment measures that are used by management to evaluate Cineplex's performance. The following measures included in this news release do not have a standardized meaning under GAAP and may not be comparable to similar measures provided by other issuers. Cineplex includes these measures because its management believes that they assist investors in assessing financial performance. These non-GAAP and other financial measures are used throughout this news release and are defined below.

NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures are defined in 52-112 as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation.

NON-GAAP RATIO
A non-GAAP ratio is defined by 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-GAAP financial measure as one or more of its components, and (c) is not disclosed in the financial statements.

The below are non-GAAP financial measures or non-GAAP ratios that are reported by Cineplex.

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDAaL

Management defines EBITDA as earnings before interest income and expense, income taxes and depreciation and amortization expense. Adjusted EBITDA excludes the change in fair value of financial instrument, gain on disposal of assets, foreign exchange, the equity income (loss) of CDCP, and impairment, depreciation, amortization, interest and taxes of Cineplex's other joint ventures and associates. Adjusted EBITDAaL modifies adjusted EBITDA to deduct current period cash rent paid or payable related to lease obligations. During the year, Cineplex agreed to a variety of arrangements with landlords to reduce or defer cash rent paid or payable as a result of the impact of COVID-19.

Subsequent to the adoption of IFRS 16, Leases, by Cineplex effective January 1, 2019, the calculation of EBITDA no longer includes a charge for amounts paid or payable with respect to leased property and equipment.  Given the majority of Cineplex's businesses are carried on in leased premises, Cineplex introduced the measure of adjusted EBITDAaL which includes a deduction for cash rent paid/payable related to lease obligations. Cineplex's management believes that adjusted EBITDAaL is an important supplemental measure of Cineplex's profitability at an operational level and provides analysts and investors with comparability in evaluating and valuing Cineplex's performance period over period. EBITDA, adjusted for various unusual items, is also used to define certain financial covenants in Cineplex's Credit Facilities. Management calculates adjusted EBITDAaL margin by dividing adjusted EBITDAaL by total revenues.

EBITDA, adjusted EBITDA and adjusted EBITDAaL are non-GAAP measures generally used as an indicator of financial performance and they should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. Cineplex's EBITDA, adjusted EBITDA and adjusted EBITDAaL may differ from similar calculations as reported by other entities and accordingly may not be comparable to EBITDA, adjusted EBITDA or adjusted EBITDAaL as reported by other entities.

Reconciliation of reported net income (loss) to adjusted EBITDAaL 

	Three months ended September 30,			Nine months ended September 30,
	2022	2021		2022	2021
Net income (loss)	$                30,857	$               (33,552)		$               (10,055)	$              (226,944)
Depreciation and amortization - other	26,079	28,297		79,622	85,541
Depreciation - right-of-use assets	23,277	25,151		72,026	77,206
Interest expense - lease obligations	15,946	14,842		45,389	43,942
Interest expense - other	16,303	17,990		40,198	49,554
Interest income	(84)	(68)		(152)	(202)
Current income tax (recovery) expense	—	—		(724)	3,339
EBITDA	$               112,378	$                52,660		$              226,304	$                32,436
(Gain) loss on disposal of assets	(49,848)	22		(54,341)	(29,859)
Loss (gain) on financial instruments recorded at fair value	1,630	(2,570)		7,230	(3,370)
CDCP equity loss (income) (i)	30	(988)		(492)	2,293
Foreign exchange (gain) loss	(1,239)	(529)		(1,628)	66
Depreciation and amortization - joint ventures and associates (ii)	130	—		394	—
Taxes and interest of joint ventures and associates (ii)	13	11		41	33
Adjusted EBITDA	$                63,094	$                48,606		$              177,508	$                  1,599
Cash rent paid/payable related to lease obligations (iii)	(42,275)	(37,469)		(127,419)	(106,467)
Negotiated lease-related cash savings for the period (iii) (iv)	—	—		—	—
Cash rent paid not pertaining to current period	(389)	(375)		386	375
Adjusted EBITDAaL (iv)	$                20,430	$                10,762		$                50,475	$              (104,493)

(i)	CDCP equity loss (income) not included in adjusted EBITDA as CDCP is a limited-life financing vehicle that is funded by virtual print fees collected from distributors.
(ii)	Includes the joint ventures with the exception of CDCP (see (i) above).
(iii)	The cash rent paid or payable includes negotiated lease obligations savings of $0.8 million (2021 - $29.5  million) through September 30, 2022. The negotiated lease obligation savings represent forgiveness of lease payments.
(iv)	See Non-GAAP and other financial measures section of this news release.

Adjusted Free Cash Flow

Free cash flow is a non-GAAP measure generally used by Canadian corporations as an indicator of financial performance and it should not be viewed as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. Standardized free cash flow adjusts the amount of cash from operating activities to deduct capital expenditures net of proceeds on sale of assets in ordinary business operations. Standardized free cash flow is a non-GAAP measure recommended by the CICA in its 2008 interpretive release, Improved Communication with Non-GAAP Financial Measures: General Principles and Guidance for Reporting EBITDA and Free Cash Flow, and is designed to enhance comparability. Adjusted free cash flow is also a non-GAAP measure used by Cineplex to modify standardized free cash flow to exclude certain cash flow activities and to measure the amount available for activities such as repayment of debt, dividends to owners and investments in future growth through acquisitions. Beginning with the MD&A for the three months ending March 31, 2019, Adjusted free cash flow included repayments of lease obligations that represented the principal portion of rent expenses that were included in net income calculation prior to the adoption of accounting standard IFRS 16, Leases, by Cineplex effective January 1, 2019. Given that the materiality of the principal portion of the rent expenses and comparability of adjusted free cash flow disclosure for comparative periods, adjusted free cash flow also adjusts standard free cash flow to deduct principal amount of repayment of lease obligation.

Cineplex presents standardized free cash flow and adjusted free cash flow per Share because they are key measures used by investors to value and assess Cineplex. Management of Cineplex defines adjusted free cash flow as standardized free cash flow adjusted for certain items, and considers adjusted free cash flow the amount available for distribution to Shareholders. Standardized free cash flow is defined by the CICA as cash from operating activities as reported in the GAAP financial statements, less total capital expenditures minus proceeds from the disposition of capital assets other than those of discontinued operations, as reported in the GAAP financial statements; and dividends, when stipulated, unless deducted in arriving at cash flows from operating activities. The standardized free cash flow calculation excludes common dividends and others that are declared at the Board's discretion.

Reconciliation of reported cash provided by operating activities to adjusted free cash flow per share

	Three months ended September 30,			Nine months ended September 30,
	2022	2021		2022	2021
Cash provided by operating activities	$                  5,811	$                52,023		$                47,526	$                33,524
Less: Total capital expenditures net of proceeds on sale of assets	(14,466)	(1,603)		(34,936)	(15,310)
Standardized free cash flow	(8,655)	50,420		12,590	18,214
Add/(Less):
Changes in operating assets and liabilities (i)	25,815	(32,640)		42,012	(118,843)
Changes in operating assets and liabilities of joint ventures and associates (i)	1,892	(31)		1,960	(1,357)
Repayments of lease obligations - principal	(26,330)	(24,191)		(83,025)	(62,734)
Principal portion of cash rent paid not pertaining to current period	(381)	—		381	737
Growth capital expenditures and other (ii)	9,727	736		22,859	13,708
Share of income of joint ventures and associates, net of non-cash depreciation	(500)	(47)		(428)	(210)
Net cash received from CDCP (iii)	—	—		5,318	—
Adjusted free cash flow	$                  1,568	$                (5,753)		$                  1,667	$               (150,485)
Average number of shares outstanding	63,362,713	63,342,557		63,356,694	63,339,070
Adjusted free cash flow per share	$                  0.025	$                (0.091)		$                  0.026	$                (2.376)

(i)	Changes in operating assets and liabilities are not considered a source or use of adjusted free cash flow.
(ii)	Growth capital expenditures and other represent expenditures on Board approved projects, exclude maintenance capital expenditures, and are net of proceeds on asset sales. The Revolving Facility is available to Cineplex to fund Board approved projects.
(iii)	Excludes the share of loss of CDCP, as CDCP is a limited-life financing vehicle funded by virtual print fees collected from distributors. Cash invested into CDCP, as well as distributions received from CDCP, are considered to be uses and sources of adjusted free cash flow.

SUPPLEMENTARY FINANCIAL MEASURES
Supplementary financial measures are financial measures that are not (a) presented in the financial statements and (b) is, or is intended to be, disclosed periodically to depict the historical or expected future financial performance, financial position or cash flow, that is not a non-GAAP financial measure or a non-GAAP ratio as defined in the instrument. The below are supplementary financial measures that Cineplex uses to depict its financial performance, financial position or cash flows.

Earnings per Share Metrics
Cineplex has presented basic and diluted earnings per share net of this item to provide a more comparable earnings per share metric between the current periods and prior year periods. In the non-GAAP and other financial measure, earnings is defined as net income or net loss attributable to Cineplex excluding the change in fair value of financial instruments.

Per Patron Revenue Metrics
Cineplex reviews per patron metrics as they relate to box office revenue and theatre food service revenue such as BPP, CPP, BPP excluding premium priced product, and concession margin per patron, as these are key measures used by investors to value and assess Cineplex's performance, and are widely used in the theatre exhibition industry. Management of Cineplex defines these metrics as follows:

Theatre Attendance: Theatre attendance is calculated as the total number of paying patrons that frequent Cineplex's theatres during the period.

BPP: Calculated as total box office revenues divided by total paid theatre attendance for the period.

BPP excluding premium priced product: Calculated as total box office revenues for the period, less box office revenues from 3D, 4DX, UltraAVX, VIP ScreenX and IMAX product; divided by total paid theatre attendance for the period, less paid theatre attendance for 3D, 4DX, UltraAVX, VIP, ScreenX and IMAX product.

CPP: Calculated as total theatre food service revenues divided by total paid total theatre attendance for the period.

Premium priced product: Defined as 3D, 4DX, UltraAVX, IMAX, ScreenX and VIP film product.

Theatre concession margin per patron: Calculated as total theatre food service revenues less total theatre food service cost, divided by theatre attendance for the period.

Same Theatre Analysis
Cineplex reviews and reports same theatre metrics relating to box office revenues, theatre food service revenues, theatre rent expense and theatre payroll expense, as these measures are widely used in the theatre exhibition industry as well as other retail industries.

Same theatre metrics are calculated by removing the results for all theatres that have been opened, acquired, closed or otherwise disposed of subsequent to the start of the prior year comparative period. For the three months ended September 30, 2022 the impact of two locations that have been opened or acquired and four locations that have been closed or otherwise disposed of have been excluded, resulting in 152 theatres being included in the same theatre metrics. For the nine months ended September 30, 2022 the impact of two locations that have been opened or acquired and six locations that have been closed or otherwise disposed of have been excluded, resulting in 150 theatres being included in the same theatre metrics.

Cost of sales percentages
Cineplex reviews and reports cost of sales percentages for its two largest revenue sources, box office revenues and food service revenues as these measures are widely used in the theatre exhibition industry. These measures are reported as film cost percentage and concession cost percentage, respectively, and are calculated as follows: 

Film cost percentage: Calculated as total film cost expense divided by total box office revenues for the period.

Theatre concession cost percentage: Calculated as total theatre food service costs divided by total theatre food service revenues for the period.

LBE food cost percentage: Calculated as total LBE food costs divided by total LBE food service revenues for the period.

Lease-related cash saving
Quantified savings negotiated with landlords as a result of the COVID-19 disclosures.

Certain information included in this news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to Cineplex's objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to Cineplex's beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Forward-looking statements also include, statements pertaining to:

• Cineplex's outlook, goals, expectations and projected results of operations, including factors and assumptions underlying Cineplex's projections regarding the duration and impact of a novel strain of coronavirus ("COVID-19") pandemic on Cineplex, the movie exhibition industry and the economy in general, as well as Cineplex's response to the pandemic related to the closure or operational restrictions of its theatres and location-based entertainment ("LBE") venues, employee reductions and other cost-cutting initiatives and increased expenses relating to safety measures taken at its facilities to protect the health and well-being of guests and employees;
• Cineplex's expectations with respect to liquidity and capital expenditures, including its ability to meet its ongoing capital, operating and other obligations, and anticipated needs for, and sources of, funds; and
• Cineplex's ability to execute cost-cutting and revenue enhancement initiatives in response to the COVID-19 pandemic.

The COVID-19 pandemic has had an unprecedented impact on Cineplex, along with the rest of the movie exhibition industry and other industries in which Cineplex operates, including material decreases in revenues, results of operations and cash flows. The situation continues to evolve and the social and economic effects are widespread. As an entertainment and media company that operates spaces where guests gather in close proximity, Cineplex's business has been significantly impacted by the actions taken to control the spread of COVID-19. These actions included, among other things, the introduction of vaccine passports or proof of vaccination mandates, social distancing measures and restrictions including those on capacity. During the second quarter of 2022, as COVID-19 cases declined across the country, restrictions relating to capacity limits, vaccine passports and mask mandates were lifted in all of the markets in which Cineplex operates, providing clearer visibility for Cineplex's business and the return to normalcy. Cineplex is actively monitoring the situation and is adapting its business strategies as the impact of the COVID-19 pandemic evolves.

By their very nature, forward-looking statements involve inherent risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"), and MD&A for the year ended December 31, 2021 ("Annual MD&A") and in this news release. Those risks and uncertainties, both general and specific, give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Cineplex cautions readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond Cineplex's control, could cause actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to the movie exhibition industry and the economy in general, as well as Cineplex's response to the COVID-19 pandemic as related to the closure or capacity restrictions of its theatres and LBE venues, employee reductions and other cost-cutting initiatives, and increased expenses relating to safety measures taken at its facilities to protect the health and well-being of customers and employees; Cineplex's expectations with respect to liquidity and capital expenditures, including its ability to meet its ongoing capital, operating and other obligations, and anticipated needs for, and sources of, funds; Cineplex's ability to execute cost-cutting and revenue enhancement initiatives in response to the COVID-19 pandemic; risks generally encountered in the relevant industry, competition, customer, legal, taxation and accounting matters; the outcome of the litigation surrounding the termination of the Cineworld transaction; and diversion of management time on litigation related to the Cineworld transaction.

The foregoing list of factors that may affect future results is not exhaustive. When reviewing Cineplex's forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risks and Uncertainties" section of Cineplex's MD&A.

Cineplex does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable Canadian securities law. Additionally, Cineplex undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. All forward-looking statements in this news release are made as of the date hereof and are qualified by these cautionary statements. Additional information, including Cineplex's AIF and Annual MD&A, can be found on SEDAR at www.sedar.com.

You are cordially invited to participate in a conference call with the management of Cineplex (TSX: CGX) to review our third quarter. Ellis Jacob, President and Chief Executive Officer and Gord Nelson, Chief Financial Officer, will host the call scheduled for:

Cineplex Inc. Q3 2022 Earnings Webcast:
Date:	Thursday, November 10, 2022
Time:	10:00 a.m. Eastern Daylight Time
Audio Webcast:	Audience URL https://events.q4inc.com/attendee/503133444  Pre-registration available. An archive of the webcast will be available at https://corp.cineplex.com/investors after the webcast for a limited time.

Please note, analysts who cover the Company, should use the dial-in option to participate in the live question period: 1-226-828-7575 (Local) or 1-833-950-0062 (Canada Toll-free), access code 855874. All attendees should join the event 5-10 minutes prior to the scheduled start time. Media are welcome to join the call in listen-only mode.

About Cineplex

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 171 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) and complexes specially designed for teens and families (Playdium). It also operates successful businesses in digital commerce (CineplexStore.com), alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media "CDM") and amusement solutions (Player One Amusement Group "P1AG"). Providing even more value for its guests, Cineplex is a joint venture partner in Scene+, Canada's largest entertainment loyalty program.

Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs approximately 10,000 people in its offices across Canada and the United States. To learn more visit Cineplex.com or download the Cineplex App.

SOURCE Cineplex

Investor Relations contact: Mahsa Rejali, Executive Director, Corporate Development & Investor Relations, [email protected]; Media Relations contact: Sarah Van Lange, Vice President, Communications, Content & Social Media, [email protected]