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.
November Box Office
Results:
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.
|
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 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.
Caution Regarding Forward-Looking
Statements
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, InvestorRelations@Cineplex.com; Media
Relations: Michelle Saba, Vice President,
Communications, PressRoom@Cineplex.com
SOURCE Cineplex