National CineMedia Inc. [1], Centennial, Colorado, announced that total revenue for the fourth quarter of 2013 increased 5.9% to $122.7 million from $115.9 million for the comparable quarter last year.
The figures we announced by the company, managing member and owner of 46.1% of National CineMedia LLC, the operator of the largest in-theatre digital media network in North America, as part of its consolidated results report for the fiscal fourth quarter and fiscal year ended December 26, 2013.
Total Advertising revenue for the fourth quarter of 2013 was $108.1 million, an increase of 4.0% compared to $103.9 million for the comparable quarter last year.
Fathom Events revenue increased 21.7% to $14.6 million for the fourth quarter of 2013 compared to $12.0 million for the comparable quarter last year. Net income for the fourth quarter of 2013 was $19.0 million, or $0.32 per diluted share compared to a net loss of $0.5 million, or $0.01 per diluted share for the fourth quarter of 2012. Net income for the fourth quarter of 2013 and net loss for the fourth quarter of 2012 both include non-cash and other items, including the gain on the sale of the Fathom business on Dec. 26, 2013. Excluding these unusual items for both years net income would have increased 47.7% to $12.7 million or $0.21 per diluted share for Q4, 2013, compared to net income of $8.6 million or $0.16 per diluted share for Q4, 2012. Adjusted OIBDA increased 7.2% to $62.5 million for Q4, 2013, from $58.3 million for the comparable quarter last year.
Total revenue for the year ended Dec. 26, 2013, increased $14.0 million, or 3.1% to $462.8 million, compared to $448.8 million for the 2012 period. Advertising revenue for the year ended Dec. 26, 2013, was $426.3 million, an increase of 4.1% compared to $409.5 million for the 2012 period. Fathom Events revenue decreased 7.1% to $36.5 million for the year ended Dec. 26, 2013, compared to $39.3 million for the 2012 period. Net income for the year ended Dec. 26, 2013, was $41.2 million, or $0.73 per diluted share, compared to net income of $13.4 million for year ended Dec. 27, 2012, or $0.24 per diluted share. Net income for the years ended Dec. 26, 2013, and Dec. 27, 2012, includes non-cash and other items, including the gain on the sale of the Fathom business on Dec. 26, 2013. Excluding these unusual items for both years net income would have increased 17.6% to $37.4 million or $0.66 per diluted share for the year ended Dec. 26, 2013, compared to net income of $31.8 million or $0.58 per diluted share for the year ended Dec. 27, 2012. For the year ended Dec. 26, 2013, Adjusted OIBDA increased 6.0% to $234.5 million versus $221.2 million for the 2012 period.
The Company announced that its Board of Directors has authorized the Company’s regular quarterly cash dividend of $0.22 per share of common stock. In addition, the Company’s Board of Directors has authorized a special cash dividend of $0.50 per share of common stock. Both dividends will be paid on March 20, 2014, to stockholders of record on March 6, 2014.
In discussing what he said was a successful year for the company, Kurt Hall, NCM chairman and CEO, said, “We also made great progress on our longer term strategy to broaden our client base, expand our network reach and improve our technology to make our marketing products more competitive as the video advertising marketplace expands with the growth of online and mobile video impressions. While the video advertising marketplace is becoming more competitive, the continued execution of our long term strategy will make our core selling proposition stronger than ever as entertainment programming continues to fragment and ad-skipping technology adoption accelerates.”
National CineMedia operates NCM Media Networks [2], a leading integrated media company reaching U.S. consumers in movie theaters, online and through mobile technology. NCM presents cinema advertising across the nation’s largest digital in-theater network, comprised of theaters owned by AMC Entertainment Inc. [3], Cinemark Holdings Inc. [4], Regal Entertainment Group [5] and other leading regional theater circuits. NCM’s theater advertising network covers 187 Designated Market Areas (49 of the top 50 in the U.S.) and includes over 19,800 screens (approximately 19,000 digital).
During 2013, approximately 710 million patrons (on an annualized basis) attended movies shown in theaters in which NCM currently has exclusive cinema advertising agreements in place.