National CineMedia Inc. Results For Q1 2014 Show Revenue Decrease

Gail Chiasson, North American Editor

National CineMedia Inc., Centennial, Colorado-based managing member and owner of 45.8% of National CineMedia LLC – operator of the largest in-theatre digital media network in North America – yesterday announced consolidated results for the fiscal first quarter ended March 27, 2014, showing that total revenue decreased 14.6% to $70.2 million from $82.2 million for the comparable quarter last year.

logo National CineMediaExcluding revenue from the Fathom Events division that was sold in Dec./13, revenue decreased 4.7% from $73.7 million for the first quarter of 2013. Net loss for the first quarter of 2014 was $3.1 million, or $0.05 per diluted share compared to a net loss of $1.0 million, or $0.02 per diluted share for the first quarter of 2013.

Nevertheless, NCM announced today that its Board of Directors has authorized the company’s regular quarterly cash dividend of $0.22 per share of common stock, to be paid June 2/14, to stockholders of record on May 19/14. The Company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors dependent on available cash, anticipated cash needs, overall financial condition, future prospects for earnings and cash flows as well as other relevant factors.

Also yesterday, Kurt Hall, National CineMedia’s chairman and CEO, announced a merger agreement with Screenvision (see separate article) saying that it would position the combined new company to be much more competitive in the expanding video and overall advertising marketplace, including the new online and mobile advertising platform.

Integration payments due from Cinemark and AMC associated with Rave Theatres for the quarter ended March 27, 2014 and March 28, 2013, respectively, were $0.2 million and $0.2 million. The integration payments were recorded as a reduction of an intangible asset.

For the second quarter of 2014, NCM expects total revenue to be down 14%-to-21%.

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