Latest news with #EllisJacob
Globe and Mail
09-05-2025
- Business
- Globe and Mail
Small caps to watch: Cineplex in spotlight as revenues slide
A weekly look at some small-cap stocks making news - or about to. As of market close on Thursday, May 8, Canada's S&P/TSX SmallCap Index was up by about 8 per cent over the past 12 months, not including dividends. The Russell 2000 in the U.S. was down about one per cent over the same period. Cineplex Inc. (CGX-T) could be under pressure today after the movie theatre company reported a drop in theatre attendance and revenue for its first quarter ended March 31. Before markets opened on Friday, Cineplex reported sales of $264.3-million for the quarter, down 10 per cent from $294.8-million a year ago. The result was below expectations of $271-million. Cineplex said first-quarter box office revenues were $101.9-million, a decrease of 18.5 per cent from $125.1-million a year ago, due to a weaker film slate compared to the prior year, resulting in a 14.5-per-cent decrease in theatre attendance. 'While the first quarter landed softer than expected due to March performance, the success of A Minecraft Movie at the start of the second quarter, paired with the optimism following CinemaCon, has energized the exhibition industry," CEO Ellis Jacob said in a release. Its net loss from continuing operations was $36.6-million or 58 cents per share compared to a loss of $63-million or 99 cents a year earlier. In the past 52 weeks, the stock has traded between a high of $13.08 and a low of $7.10. More to come ... Other small caps making news this week: NFI Group Inc. (NFI-T) reported higher sales for the first quarter that beat expectations. After markets closed on Thursday, the Winnipeg-based bus maker reported revenue of $841.4 million, an increase of 16.4 per cent from $723-million for the same quarter last year. The result surpassed expectations of $802.5-million, according to S&P Capital IQ. Its net loss was $6.5-million or 5 cents per share compared to a loss of $9-million or 8 cents a year ago. Adjusted net earnings of $2.9-million or 2 cents per share compared to an adjusted net loss of $15.6-million or 13 cents a year ago. The expectation was for adjusted earnings of 3 cents in the latest quarter. In the past 52 weeks, the stock has traded between a high of $19.55 and a low of $9.83. ** Interfor Corp. (IFP-T) reported lower sales for its first quarter that were below expectations. After markets closed on Thursday, the company reported sales of $735.5-million, down from $813.2-million a year earlier. The result was below expectations of $744.7-million, according to S&P Capital IQ. Its net loss was $35.1-million or 68 cents per share, compared to a loss of $72.9-million or $1.42 per share a year earlier. The expectation was for a loss of 28 cents per share. In the past 52 weeks, the stock has traded between a high of $21.44 and a low of $12.84. ** Maple Leaf Foods Inc. (MFI-I) reported higher sales and adjusted profit for the first quarter. Before markets opened on Thursday, the company reported sales of $1.24-billion, up from $1.15-billion a year ago. The expectation was for sales of $1.19-billion, according to S&P Capital IQ. Earnings for the first quarter of 2025 were $49.6-million or 40 cents per share, down from $52-million or 42 cents last year. Adjusted earnings came in at $95.7-million or 43 cents per share compared to $53-million or 4 cents last year. The earnings per share were above expectations of 27 cents. In its outlook, the company said it expects revenue growth in the mid-single-digit range for 2025. Canaccord Genuity analyst Vishal Shreedhar maintained his 'outperform' (similar to buy) rating and increased his price target to $30 from $28 after the earnings were released. 'Our upside/downside review suggests opportunity, although we recognize that MFI's restructuring/track record underscore uncertainty (notwithstanding recent improvements),' he wrote in a note. In the past 52 weeks, the stock has traded between a high of $26.10 and a low of $19.61. ** MDA Space Ltd. (MDA-T) reported a 68-per-cent rise in revenue for its first quarter and higher adjusted net income. Before markets opened on Thursday, the company reported revenues of $351-million, up from $209.1-million last year. The result was above expectations of $325.7-million, according to S&P Capital IQ. Adjusted net income of $37.2-million or 29 cents per share compared to $18.3-million or 15 cents a year ago. Adjusted EBITDA of $68.6-million was ahead of expectations of $62.4-million and compared to $42-million a year ago. In the past 52 weeks, the stock has traded between a high of $30 and a low of $11.44. The stock got walloped last week after the White House released a proposed 2026 budget that slashes US$6-billion for space programs. ** Canfor Corp. (CFP-T) reported higher sales that beat expectations and trimmed its loss in its first quarter. Before markets opened on Thursday, the company reported sales of $1.42-billion up from $1.38-billion a year earlier. The expectation was for sales of $1.28-billion, according to S&P Capital IQ. Its net loss was $31-million or 26 cents per share compared to a loss of $64.5-million or 54 cents last year. On an adjusted basis, the loss was $38.1-million or 32 cents versus $52.1-million or 44 cents a year ago. The expectation was for adjusted earnings per share to come in at 33 cents. 'While improved North American lumber benchmark prices provided some relief this quarter, rising global economic and trade uncertainty, in addition to the already punitive U.S. softwood lumber duties, create a challenging backdrop and a period of significant uncertainty for our lumber business,' CEO Susan Yurkovich stated in a release. 'Through our diversified operating platform in Canada, the U.S. South and Europe, we are positioned to mitigate these challenges, while remaining focused on what we can control, including operating safely and efficiently, working with our customers, and continuing to be flexible and responsive.' In the past 52 weeks, the stock has traded between a high of $18.38 and a low of $12.60. ** Canfor Pulp Products Inc. (CFX-T) reported lower sales and swung to a profit in its first quarter. Before markets opened on Thursday, the company reported sales of $196.2-million, down from $222.3-million a year ago. The expectation was for revenue of $186-million, according to S&P Capital IQ. Its net income was $6-million or 9 cents, up from a loss of $2.4-million or 4 cents a year ago. The expectation was for earnings to be 10 cents per share. 'Market fundamentals saw modest improvement early in the quarter; however, this momentum weakened later in the period with rising global economic and trade uncertainty,' the company stated. In the past 52 weeks, the stock has traded between a high of $1.67 and a low of 63 cents. ** Linamar Corp. (LNR-T) reported lower sales but higher adjusted profit and earnings per share for its first quarter compared to the same period last year. It also increased its quarterly dividend. After markets closed on Wednesday, the auto parts company reported sales of $2.53-billion, down from $2.72-billion a year ago. The expectation was for revenue of $2.58-billion. Net earnings of $177.7-million or $2.94 per share compared to $178.5-million or $2.90 a year ago. Adjusted earnings of $167.2-milion of $2.76 cents compared to $159.5-million or $2.59 per share. The result was ahead of expectations of $2.44 per share. The company said its products comply with the Canada-United States-Mexico Agreement, so there were 'no material impacts' from tariffs. '2025 has certainly started off with its fair share of challenges but the Linamar team has stepped up and again delivered solid results, growing earnings on strong operational efficiencies and growing market share,' executive chair Linda Hasenfratz said in a release. 'We are managing a tricky tariff minefield carefully, seeing minimal negative impact to date and in fact finding real-time opportunities. We will continue to work to mitigate risks and find ways to grow in this challenging timeframe.' The company increased its quarterly dividend to 29 cents per share, up from 25 cents per share. In the past 52 weeks, the stock has traded between a high of $73.84 and a low of $43.84. ** Western Forest Products Inc. (WEF-T) reported higher first-quarter revenue that was ahead of expectations. After markets closed on Tuesday, the company reported revenue of $262.5-million, up from $239.5-million a year earlier. The result was below expectations of $271.5-million, according to S&P Capital IQ. Net income was $13.8-million or 4 cents per share compared to a net loss of $8-million or 2 cents in the first quarter of 2024. Adjusted EBITDA was $3.5-million compared to negative $4.2-million in the first quarter of 2024. The result was below expectations of $5.6-million. In its outlook, the company said North American markets are expected to be volatile 'due to concerns around the economic impact caused by potential further US tariffs and retaliatory tariffs.' It said the spring building season, which typically leads to gains in softwood lumber demand, 'could be more muted than previous expectations given the uncertain economic environment.' The company said spring housing demand is stronger than expected in Japan and channel inventories have declined. 'However, an overall cautious approach continues as housing starts are expected to decline later in the year,' it stated. It also said demand for its industrial lumber products in North America is expected to strengthen due to a tight supply. 'In China, significant U.S. tariffs on Chinese exports [have] caused some concerns within the economy. However, this may be partially offset by a Chinese ban on imported US logs that will reduce overall supply of softwood lumber into the market, which may lead to an increase in demand for Canadian lumber,' it stated. In the past 52 weeks, the stock has traded between a high of 58 cents and a low of 36 cents. ** Savaria Corp. (SIS-T) reported higher profit and revenue for its first quarter. After markets closed on Wednesday, the company reported revenue of $220.2-million, up 5.2 per cent compared to $209.4-million for the same time last year. The result was ahead of expectations of $221.7-million, according to S&P Capital IQ. The company said the boost was mainly due to a positive foreign exchange impact of 3.3 per cent, and organic growth of 0.8 per cent. Net earnings were $12.5-million or 17 cents per share, which was in line with expectations and compared to $11.6-million or 16 cents per share last year. Adjusted EBITDA was $40.6-million, up 17.2 per cent from $34.7-million a year ago. On Thursday, the company announced the acquisition of Western Elevator Ltd., a home elevator and lift dealer based in Coquitlam, B.C. It said Western generated approximately $7.5-million in revenue in 2024 and has been a 'long-time, top-tier Savaria dealer.' The price of the acquisition wasn't disclosed in the release. In the past 52 weeks, the stock has traded between a high of $23.92 and a low of $14.97. ** Premium Brands Holdings Corp. (PBH-T) shares jumped earlier this week after the company reported a 15-per-cent jump in first-quarter earnings that also beat expectations. Before markets opened on Wednesday, the company reported revenue of $1.68-billion, up from $1.46-billion a year ago. The results were ahead of expectations of $1.59-billion, according to S&P Capital IQ. Earnings of $2.6-million or 6 cents per share were down from $6.3-million or 14 cents. On an adjusted basis, earnings came in at $30.5-million or 68 cents per share versus $24-million or 54 cents last year. The result was above expectations of 67 cents. CIBC analyst Ty Collin, who has an 'outperformer' on the stock, increased his target to $98 from $95 after the earnings report. 'PBH's Q1 earnings beat reflected momentum on organic growth initiatives and supportive market dynamics. The business has shown early signs of execution on its U.S. sales pipeline, and we are increasingly confident that it will meet its outlook this year,' he wrote in a note. Ventum Capital Markets analyst Devin Schilling said the results were ahead of expectations, 'and we view PBH at an inflection point with most major production capacity projects now complete and sales set to ramp over the coming quarters.' Mr. Schilling also reiterated his 'buy' rating and $120 target price. 'We view PBH as a best-in-class opportunity for generating long-term shareholder value with the company's record pace of investment into the U.S. market setting the stage for accelerating organic growth and margin expansion in 2025 and beyond,' he wrote. In the past 52 weeks, the stock has traded between a high of $97.10 and a low of $72.57. ** Sienna Senior Living Inc. (SIA-T) reported higher revenue for its first quarter and an 'optimistic outlook' based on rising demand from an aging population. After markets closed on Tuesday, the company reported revenue of $241.8-million, up from $215.7-million a year ago. Net income of $15.8-million or 18 cents per share was down from $19.7-million or 27 cents a year earlier. 'Sienna continues its strong growth momentum, with our key performance indicators continuing to move in a positive direction,' CEO Nitin Jain stated in a release. 'We are confident to sustain this ongoing trend well into the future. Rising demand from an aging population coupled with constrained supply, the continued strength of our operations, and our ability to execute on acquisitions and development projects are all contributing to our optimistic outlook. During a time of broader economic uncertainty, the Canadian senior living sector continues to demonstrate stability, resilience and opportunity for growth.' National Bank Financial analyst Giuliano Thornhill increased his target to $20 from $19.25 and reiterated his 'outperform' rating. CIBC analyst Dean Wilkinson kept his 'neutral' (similar to hold) rating and increased his target to $19 from $18 after the earnings report. 'SIA continues to demonstrate impressive results in both its long-term care and retirement segments as well as improving occupancy levels from pandemic lows,' he wrote. In the past 52 weeks, the stock has traded between a high of $17.65 and a low of $13.89. ** Extendicare Inc. (EXE-T) reported higher revenue and profit for its first quarter. After markets closed on Tuesday, the company said its revenue came in at $374.7-million, up from $367.1-million a year ago. The result was ahead of expectations of $365.6-million. Net earnings were $15-million or 18 cents per share versus $13.1-million or 15 cents a year ago. Canaccord Genuity analyst Tania Armstrong-Whitworth reiterated her 'buy' recommendation and increased her target to $15.50 from $14. In the past 52 weeks, the stock has traded between a high of $15.24 and a low of $7.10. ** Kits Eyecare Ltd. (KITS-T) reported a 34-per-cent revenue increase for its first quarter and higher profit. After markets closed on Tuesday, the Vancouver-based company reported record quarterly revenue of $46.6-million compared to $34.8-million a year ago. The result was slightly below expectations of $47.1-million, according to S&P Capital IQ. Adjusted EBITDA improved by $2.9-million to $3.5-million compared to $0.6 million a year ago. Net income was $1.6-million or 5 cents per share, which was in line with expectations and compared to net income of $64,000 or nil per share a year ago. Haywood Securities analyst Gianluca Tucci reiterated his 'buy' recommendation and $13 target after the earnings. He said organic growth 'continues to impress' at 34 per cent, noting its the third consecutive quarter of 30-per-cent-plus. 'We continue to look for operating margin expansion [year over year],' he wrote, adding the company 'hinted at some AI tools ('Optician AI') which it will unveil and introduce in due course, adding to the customer experience of shopping for eyecare online." Canaccord Genuity analyst Luke Hanan stuck to his 'buy' recommendation and increased his target to $18 from $14.50. 'In our view, KITS continues to stand out as one of our best ideas for the year, ' the analyst said in a note. 'The company's consistent execution, low-cost operating footprint with room to scale, and marketing spend efficiency have allowed it to generate robust [year-over-year] revenue growth (about 32 per cent on average over last five quarters), indicating the momentum has continued thus far into [the second quarter of 2025].' In the past 52 weeks, the stock has traded between a high of $12.50 and a low of $5.66. ** Chorus Aviation Inc. (CHR-T) reported higher profit but lower revenue for its first quarter. After markets closed on Tuesday, the Halifax-based company reported revenue of $348.1-million, down from $358.6-million a year ago. The result was below expectations of $354.8-million, according to S&P Capital IQ. Net income from continuing operations came in at $18.9-million compared to $5.4-million for the first quarter 2024. Adjusted earnings of $15.4-million or 57 cents per share compared to $3.7-million or 13 cents a year ago and was ahead of expectations of 54 cents. Adjusted EBITDA of $56.9-million compared to $54-million last year and ahead of expectations of $50.6-million. In the past 52 weeks, the stock has traded between a high of $24.08 and a low of $14.63. ** Pet Valu Holdings Ltd. (PET-T) shares rose this week after the pet retailer reported first-quarter earnings that were ahead of expectations. Before markets opened on Tuesday, the company reported revenue of $279.1-million, up from $260.8-million a year ago. The results were ahead of expectations of $275-million, according to S&P Capital IQ. The company says same-store sales growth for the quarter was 1.4 per cent. Earnings were $21.8-million or 31 cents per share for the 13-week period ended March 29, up from a profit of $17.5-million or 24 cents per share a year earlier. On an adjusted basis, Pet Valu says it earned 36 cents per diluted share in its latest quarter, up from an adjusted profit of 35 cents per diluted share in the same quarter last year. The EPS beat expectations of 34 cents. In its outlook for 2025, Pet Valu says it expects revenue between $1.17-billion and $1.2-billion for its full year. Adjusted net income per diluted share for the year is expected to be between $1.60 and $1.66. 'Q1 showed progress on all key metrics and increases our confidence in PET achieving the mid-point of its full-year guidance,' CIBC analyst Mark Petrie, who has an 'outperformer' (similar to buy) and $33 price target, said in a note. 'Although macro conditions remain uncertain, we believe PET is executing on key strategies that will support a return to more substantial earnings growth by Q4 and into 2026. National Bank Financial analyst Vishal Shreedhar increased his target on the stock to $33 from $30 after the earnings report and kept his 'outperform' (similar to buy) rating. 'We hold a positive view on Pet Valu, reflecting its strong business positioning, attractive industry characteristics and high returns on capital,' he wrote in a note, adding he anticipates solid growth in revenue, EBITDA and free cash flow. 'We believe that PET's shares can continue to gain traction as it demonstrates consistent execution against its promise of steady sales and profit growth.' In the past 52 weeks, the stock has traded between a high of $31.15 and a low of $22.53. ** Wajax Corp. (WJX-T) shares rose this week after the industrial products company reported first-quarter results that beat expectations. After markets closed on Monday, the company reported revenue of $555-million, up 15 per cent compared to $482.3-million a year ago, driven by higher construction and forestry equipment sales. The expectation was for revenue of $498.8-million, according to S&P Capital IQ. Net income was $13.1-million or 60 cents per share, down from $14.7-million or 68 cents a year ago. Adjusted earnings were $14.9-million or 69 cents, up from $12.8-million or 59 cents a year ago. The expectation was for adjusted earnings of 42 cents. In the past 52 weeks, the stock has traded between a high of $27.49 and a low of $15.55. ** Centerra Gold Inc. (CG-T) reported lower profit and revenue for its first quarter. Before markets opened on Tuesday, the company behind the Mount Milligan Mine in B.C. and the Öksüt Mine in Turkey, reported net earnings of US$30.5-million or 15 cents US per share, down from US$66.4-million or 31 cents a year ago. Adjusted net earnings came in at US$26.4-million or 13 cents US per share, down from US$31.3-million or 15 cents US per share. The result was in line with expectations, according to S&P Capital IQ. Revenue of US$299.5-million was down slightly from US$305.8-million last year but ahead of expectations of US$283-million. The company said U.S. tariffs have had no impact on its operations in the first quarter of 2025. National Bank Financial analyst Don DeMarco maintained his 'outperform' (similar to buy) rating and $13.50 target, citing in part the company's 'strong balance sheet vs. intermediate peers.' In the past 52 weeks, the stock has traded between a high of $10.58 and a low of $7.72 on the Toronto Stock Exchange. ** Ballard Power Systems (BLDP-T) reported higher revenue and reduced its losses for its first quarter. Before markets opened on Tuesday, the company reported revenue of US$15.4-million, which it said was up 6 per cent 'primarily driven by bus market strength' with engine shipments up 31 per cent. The result was below expectations of US$16.7-million, according to S&P Capital IQ. Its net loss was US$21-million or 7 cents US per share, an improvement from a loss of US$41.1-million or 14 cents US a year ago. The expectation was for a loss of 10 cents. National Bank Financial analyst Rupert Merer maintained his 'sector perform' (similar to hold) rating and $2 price target after the earnings report. In a note, he said the company's previously announced cost-cutting measures are on track. 'With guidance for operating expenses of US$100 to US$120-million for 2025E, it could exceed its initial target,' he wrote. 'It has delayed some R&D investments, but maintains a focus on its core MEA [membrane electrode assembly ] technology and cost reduction targets.' In the past 52 weeks, the stock has traded between a high of $4.54 and a low of $1.44. ** Ag Growth International Inc. (AFN-T) shares rose this week after the Calgary-based company reported first-quarter revenue and adjusted EBITDA that were ahead of expectations. 'Our first quarter results came in slightly above expectations on the strength of our International business,' CEO Paul Householder stated in a release. After markets closed on Monday, the company said its revenue came in at $287-million, which was down 9 per cent year-over-year. The expectation was for revenue of $253-million, according to S&P Capital IQ. The company reported a loss of $16.8-million or 90 cents per share compared to a profit of $1.9-million or 10 cents. On an adjusted basis, the loss was $4.8-million or 26 cents per share versus a profit of $7.6-million or 39 cents last year. The expectation was for an adjusted loss of 17 cents. Adjusted EBITDA of $31-million was above the company's guidance of between $25-million to $30-million and ahead of expectations of $28-million. The company said current tariff policies exempt USMCA-compliant products, which includes its Canadian-made equipment, 'though some products are subject to tariffs on Canadian-made steel derivatives,' it stated. 'ased on current policies and regulations, we estimate a relatively minor direct cost impact to AGI in 2025, and it has been factored into our outlook.' CIBC analyst Krista Friesen lowered her target to $49 from $52 after the earnings and has an 'outperformer' (similar to buy) rating. 'Despite there still being a heightened level of uncertainty and a lack of visibility, particularly in North America, we thought AFN's Q1 results were solid and are encouraged that the company maintained its guidance for the year. As we look out at the remainder of 2025, we are cautiously optimistic that there will be more tangible signs of an improvement in North America,' she wrote in a note. Ms. Friesen said she tweaked her estimates, lowering estimated 2025 EBITDA to $230-million from $234-million and 2026 estimated EBITDA to $260-million from $271-million based on the first-quarter results and management commentary. National Bank Financial analyst Maxim Sytchev stuck with his 'outperformer' rating and raised his target to $51 from $49. The average is $47.63. In the past 52 weeks, the stock has traded between a high of $58.14 and a low of $30.81. ** The Keg Royalties Income Fund KEG-UN-T announced on Monday that it has signed a letter of intent to be acquired by Fairfax Financial Holdings Ltd. FFH-T, its largest unitholder. The proposal for $18.60 per unit in cash values the steak house fund at about $211-million. Fairfax holds just over a 50 per cent stake in the fund, according to data provided by LSEG Data & Analytics. The fund said its largest unitholder other than Fairfax, which holds a 14.6 per cent stake on an undiluted basis, has agreed to support the proposed transaction, subject to certain customary conditions. The fund noted that the letter of intent is not a definitive agreement, which remains subject to, among other things, a formal valuation and fairness opinion, various regulatory, court and stock exchange approvals, and approval at a special meeting of the unitholders. ** May 12: K92 Mining Inc. (KNT-T), Hudbay Minerals Inc. (HBM-T), Ensign Energy Services Inc. (ESI-T), DRI Healthcare Trust (DHT-UN-T), Dorel Industries Inc. (DII-B-T) May 13: Grown Rogue International Inc. (GRIN-CN), Wesdome Gold Mines Ltd. (WDO-T), Westport Fuel Systems Inc. (WPRT-T), Dye & Durham Ltd. (DND-T), Aimia Inc. (AIM-T) May 14: Automotive Properties Real Estate Investment Trust (APR-UN-T), KP Tissue Inc. (KPT-T), Boralex Inc. (BLX-T), AutoCanada Inc. (ACQ-T), H&R Real Estate Investment Trust (HR-UN-T), North American Construction Group Ltd. (NOA-T), Bird Construction Inc. (BDT-T), Boralex Inc. (BLX-T), K-Bro Linen Inc. (KBL-T), High Liner Foods Incorporated (HLF-T), Calian Group Ltd. (CGY-T), Wildbrain Ltd. (WILD-T), American Hotel Income Properties REIT LP (HOT-UN-T) May 15: Corby Spirit and Wine Limited (CSW-A-T), Intermap Technologies (IMP-T), InterRent Real Estate Investment Trust (IIP-UN-T), Quarterhill Inc. (QTRH-T) May 21: Velan Inc. (VLN-T) May 22: Lightspeed Commerce Inc. (LSPD-T), Silvercorp Inc. (SVM-T) May 28: EQB Inc. (EQB-T) May 30: Laurentian Bank (LB-T) June 10: Stingray Group Inc. (RAY-A-B)
Cision Canada
09-05-2025
- Business
- Cision Canada
Cineplex Reports First Quarter 2025 Results
TORONTO, May 9, 2025 /CNW/ - (TSX: CGX) - Today, Cineplex Inc. ("Cineplex" or the "Company") released its financial results for the three months ended March 31, 2025. Unless otherwise specified, all amounts contained in this news release are in Canadian dollars. Q1 2025 Highlights: Entertained 8.4 million moviegoers and delivered $264.3 million in revenue Delivered a record Q1 concession per patron (CPP) of $9.13 International programming represented 14.7% of Q1 box office, outperforming the domestic market Impressive return of cinema advertising contributing to a 38% increase in media revenues and a Q1 cinema media per patron of $2.04 Increased Digital-Place-Based Media revenue by 26.5% "While the first quarter landed softer than expected due to March performance, the success of A Minecraft Movie at the start of the second quarter, paired with the optimism following CinemaCon, has energized the exhibition industry," said Ellis Jacob, President and CEO, Cineplex. "A highly engaged cinema audience coupled with a steady and predictable film slate is driving interest and investment from advertisers leading to a 38% growth in cinema media revenue. Our digital media business revenue grew by 26.5%, reaping the benefits of our expanded and established digital out of home national mall network, paired with project revenue growth. We generated record quarterly Location-Based Entertainment ("LBE") revenue of 10.5% over the prior year, with the addition of three new locations at the end of 2024. With the impacts of the writers' and actors' strikes behind us in the first quarter, we're excited by the robust and diverse film slate moving forward. The April box office delivered a remarkable 76% growth over the previous year. The breadth of major releases ahead is building meaningful momentum and reinforcing confidence across the industry. The growth and outlook of our industry positions us to return meaningful value to shareholders." First Quarter Financial Results Financial highlights First Quarter (in thousands of dollars, except theatre attendance in thousands of patrons and per share and per patron amounts) 2025 2024 Change (i) Total revenues $ 264,283 $ 294,759 -10.3 % Theatre attendance 8,392 9,819 -14.5 % Net loss from continuing operations $ (36,615) $ (62,970) -41.9 % Net income from discontinued operations, including gain on disposition $ — $ 68,130 -100.0 % Net (loss) income (ii) $ (36,615) $ 5,160 NM Cash (used in) provided by continuing operating activities $ (22,664) $ 35,954 NM Box office revenues per patron ("BPP") (iii) $ 12.14 $ 12.74 -4.7 % Concession revenues per patron ("CPP") (iii) $ 9.13 $ 8.95 2.0 % Adjusted EBITDA (iii) $ 31,734 $ 46,735 -32.1 % Adjusted EBITDAaL (iii) $ (10,812) $ 4,585 NM Adjusted EBITDAaL from discontinued operations (iii) $ — $ 508 -100.0 % Adjusted EBITDAaL including discontinued operations (iii) $ (10,812) $ 5,093 NM Adjusted EBITDAaL margin from continuing operations (iii) (4.1) % 1.6 % -5.7 % Adjusted free cash flow (iii) $ (25,724) $ (6,005) 328.4 % Adjusted free cash flow per share (iii) $ (0.406) $ (0.094) 331.9 % Loss per share from continuing operations - basic (ii) $ (0.58) $ (0.99) -41.4 % Earnings per share from discontinued operations - basic $ — $ 1.07 -100.0 % (Loss) earnings per share - basic (ii) $ (0.58) $ 0.08 NM Loss per share from continuing operations - diluted (ii) $ (0.58) $ (0.99) -41.4 % Earnings per share from discontinued operations - diluted $ — $ 1.07 -100.0 % (Loss) earnings per share - diluted (ii) $ (0.58) $ 0.08 NM (i) Period over period change calculated based on thousands of dollars except percentage and per share values. Changes in percentage amounts are calculated as 2025 value less 2024 value. (ii) 2025 includes expenses related to other transactions or litigation outside the normal course of business in the amount of $0.3 million (2024 - $1.9 million) for the first quarter. The first quarter of 2024 includes the loss on the 2024 Refinancing of $53.9 million. (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. First Quarter Box Office Results The following table compares 2025 monthly box office revenues to 2024 monthly box office revenues: KEY DEVELOPMENTS IN THE FIRST QUARTER OF 2025 The following describes certain key business initiatives undertaken and results achieved during 2025 in each of Cineplex's core business areas: FILM ENTERTAINMENT AND CONTENT Theatre Exhibition Reported first quarter box office revenues of $101.9 million, a decrease of $23.2 million or 18.5% from $125.1 million, due to a weaker film slate compared to the prior year, resulting in a 14.5% decrease in theatre attendance. Reported first quarter BPP of $12.14, a decrease of $0.60 or 4.7% compared to the prior year of $12.74 due to a decrease in sales mix of premium priced products. Every Tuesday from January 14, 2025 to February 11, 2025, Cineplex offered general admission movie tickets and a small bag of popcorn for $5 each, plus tax, in order to drive incremental attendance. Theatre Food Service Reported first quarter theatre food service revenues of $76.6 million, a decrease of $11.2 million or 12.8% compared to the prior year, primarily due to a 14.5% decrease in theatre attendance. Reported a first quarter CPP record of $9.13, an increase of $0.18 or 2.0% compared to the prior year, primarily due to an increase in average transaction spend. Alternative Programming and Distribution As part of the theatrical distribution partnership with Lionsgate, Cineplex Pictures (Cineplex's distribution business) distributed Flight Risk, and The Unbreakable Boy. Cineplex extended its theatrical distribution partnership with Lionsgate until December 31, 2026. Continued a leadership position in alternative programming, with 14.7% of first quarter box office revenues coming from international films, compared to those films having a 5.9% North-American share. Strong performing titles included, Ne Zha 2 (Mandarin), which was the highest grossing Mandarin film of all time for Cineplex, Chhaava (Hindi), and Six Each (Punjabi). Event Cinema programming consisted of a variety of successful initiatives including The Chosen: Last Supper Part 1, classic film titles such as Se7en and Princess Mononoke, both featured in IMAX, Aida and Fidelio from the Metropolitan Opera, and a number of family films including Despicable Me 4 and The Wild Robot. MEDIA Cinema Media Reported first quarter cinema media revenues of $17.1 million, an increase of $4.7 million or 38.0% over the prior year primarily due to growth in showtime revenues. Reported first quarter cinema media per patron (CMPP) of $2.04, an increase of $0.77 or 60.6% over the prior year (see Section 'Non-GAAP and other financial measures'). Continued to leverage expertise in data and analytics to drive revenues. Digital Place-Based Media Reported first quarter revenues of $12.6 million, an increase of $2.6 million or 26.5% over the prior year, primarily due to increased media and services revenues and growth in digital out of home ("DOOH") networks. Reported first quarter project revenues of $3.8 million, an increase of $0.9 million or 32.7%, compared to the prior year of $2.9 million, which primarily consists of hardware sales and professional services. Reported first quarter media and services revenues of $8.8 million, an increase of $1.7 million or 24.1%, compared to the prior year of $7.1 million, which primarily consists of media advertising, sales of software and IT support. LOCATION-BASED ENTERTAINMENT Reported first quarter revenues and an all-time quarterly record of $38.1 million, an increase of $3.6 million or 10.5% compared to the prior year due to three additional locations. Reported first quarter adjusted store level EBITDAaL of $9.8 million, an increase of $0.1 million or 1.0% compared to the prior year. LOYALTY Membership in the Scene+ loyalty program was over 15 million members as at March 31, 2025. CORPORATE Celebrated National Popcorn Day from January 17-19, 2025 by treating Scene+ members nationwide to a free bag of popcorn. Additionally, customers received a free bag of popcorn with their Cineplex food order when placed through DoorDash, Skip, or Uber Eats. 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 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 A non-GAAP financial measure is defined in NI 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 RATIOS A non-GAAP ratio is defined in NI 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. Below are non-GAAP financial measures or non-GAAP ratios for continuing operations 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, loss (gain) on disposal of assets, foreign exchange, and impairment, depreciation, amortization, interest and taxes of Cineplex's other joint ventures and associates, and other items that do not in management's view represent a factor relevant to the ongoing performance of the business such as the Competition Tribunal's administrative monetary penalty. Adjusted EBITDAaL modifies adjusted EBITDA to deduct current period cash rent paid or payable related to lease obligations. 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 2024 Credit Facility. 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 reported by other entities. Adjusted Store Level EBITDAaL Metrics Cineplex reviews and reports adjusted EBITDAaL at the location level for LBE which is calculated as total LBE revenues from all locations less total LBE operating expenses, which excludes pre-opening costs and overhead relating to the management of LBE. Adjusted Store Level EBITDAaL Margin Calculated as adjusted store level EBITDAaL divided by total revenues for LBE for the period. 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. Below are supplementary financial measures that Cineplex uses to depict its financial performance, financial position or cash flows. Earnings (loss) per Share Metrics Cineplex has presented basic and diluted earnings (loss) per share net of this item to provide a more comparable loss per share metric between the current periods and prior year periods. In the non-GAAP and other financial measures, 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, theatre food service revenue and cinema media revenue such as BPP, CPP, BPP excluding premium priced product, concession margin per patron, and CMPP, as these are key measures used by investors to value and assess Cineplex's performance, and are widely used in the theatre exhibition industry. Cineplex's management 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 theatre attendance for the period. CMPP: Calculated as total cinema media revenues divided by total paid 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 March 31, 2025 the impact of one location that was opened or acquired and three locations that were closed or otherwise disposed of have been excluded, resulting in 155 theatres being included in the same theatre metrics. three months ended March 31, 2025 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. 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 and goals, and the 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. By their very nature, forward-looking statements involve inherent risks and uncertainties, including those described in Cineplex's Annual Information Form ("AIF"), Cineplex's management's discussion and analysis for the year ended December 31, 2024 ("Annual MD&A") and in this news release, which is incorporated herein by reference and available on SEDAR+ ( These 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, 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 adverse economic conditions; competition from alternative forms of entertainment and content delivery via streaming and other formats; the impacts of any pandemic, epidemic, natural disaster, governmental restrictions, strikes or the inability to procure materials and supplies; information concerning future purchases of Common Shares under Cineplex's normal course issuer bid ("NCIB"); the outcome of the litigation with respect to Cineplex's online booking fee (described in further detail in the Annual MD&A); and risks generally encountered in the relevant industry, competition, customer, legal, taxation and accounting matters. 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 Annual 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 You are cordially invited to participate in a conference call with the management of Cineplex (TSX: CGX) to review our first quarter results. Ellis Jacob, President and Chief Executive Officer and Gord Nelson, Chief Financial Officer, will host the call scheduled for: Cineplex Inc. Q1 2025 Earnings Webcast: 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 113556. 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 172 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 an entertainment concept that brings movies, amusement gaming, dining, and live performances together under one roof (Cineplex Junxion). It also operates successful businesses in cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media or CDM), alternative programming (Cineplex Events) and motion picture distribution (Cineplex Pictures). 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. To learn more, visit
Yahoo
12-02-2025
- Business
- Yahoo
Cineplex Inc (CPXGF) Q4 2024 Earnings Call Highlights: Record Revenue Growth and Strategic ...
Total Revenue: Increased 15.1% to $362.7 million in Q4 2024. Adjusted EBITDAaL: Increased 66.6% to $40.3 million in Q4 2024. Consolidated EBITDAaL Margin: Increased to 11.1% from 7.7% in the prior year. Attendance: Increased 60.1% to approximately 11.1 million in Q4 2024. Film and Entertainment Content Segment Revenue: Increased 15.4% in Q4 2024. Media Segment Revenue: Increased 27.1% to $51.5 million in Q4 2024. Digital Place-Based Media Revenue: Increased 70.2% to $21.8 million in Q4 2024. LBE Segment Revenue: Slightly decreased to $33.6 million from $34 million in the prior year. Cash and Credit Facility: $84 million in cash with no drawings under the $100 million credit facility. Net Cash CapEx for 2024: $66.4 million, below initial guidance of approximately $80 million. Share Buyback: Purchased 620,275 common shares at an average price of $10.48, totaling approximately $6.6 million. Warning! GuruFocus has detected 6 Warning Signs with CPXGF. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cineplex Inc (CPXGF) achieved record-breaking box office and concession per person revenues in Q4 2024, driven by popular films like Gladiator 2, Wicked, and Moana 2. The company expanded its premium offerings, adding new ScreenX, UltraAVX, D-Box, and IMAX screens, which contributed to 42% of total box office revenues. Cineplex Inc (CPXGF) leveraged its robust data and Scene+ membership to drive attendance, with over one-third of Scene+ guests being first-time or returning visitors. The international cinema segment saw significant growth, with international programming representing 10.2% of total box office revenues, up from 3.7% in North America. Cineplex Inc (CPXGF) reported a 44.3% year-over-year revenue growth in its digital media segment, driven by new digital out-of-home clients and increased advertising opportunities. Despite revenue growth, the LBE segment experienced a decline in store-level adjusted EBITDAaL margins due to minimum wage increases and preopening costs. The company faced challenges with the Competition Tribunal's decision regarding its online booking fee, leading to an appeal and ongoing legal proceedings. Cineplex Inc (CPXGF) experienced a decrease in Cinema Media revenue per patron in Q4, attributed to a film slate more oriented towards kids, affecting advertiser interest. The company is still navigating the impacts of potential US and Canadian trade tariffs, although it believes these will not materially affect its business. Cineplex Inc (CPXGF) is managing increased costs related to minimum wage hikes, which could impact profitability if not offset by revenue growth. Q: Can you discuss your outlook for the box office in 2025 and any potential impacts from recent events in Los Angeles? A: Ellis Jacob, President and CEO, stated that 2025 is expected to have a stronger film slate, with significant releases like Captain America, Paddington in Peru, and Disney's Snow White. He anticipates quarters 2 and 4 to be particularly strong, with no major disruptions in the film slate expected. Q: Regarding the digital place-based media, is the Cadillac Fairview contract still ramping up, and are there opportunities for similar contracts in Canada? A: Gord Nelson, CFO, confirmed that the Cadillac Fairview contract is still ramping up, and growth is expected into 2025. There are additional opportunities within Canada to expand the mall network, and Cadillac Fairview was a significant win for Cineplex. Q: Can you provide insights into the initial experience with the online concession booking and any efficiencies gained? A: Gord Nelson noted that the adoption of online concession booking is in its early stages, but they are seeing incremental purchases through the app. Ellis Jacob emphasized the convenience it offers to guests. Q: What impact do you expect from the closure of a competitor's theaters in Montreal on your attendance? A: Ellis Jacob mentioned that Cineplex's new Royalmount cinema in Montreal is performing well, and they expect continued improvement in attendance due to the competitor's closures. Cineplex holds a significant market share in the Montreal area. Q: Can you elaborate on the decline in media and events revenue in the LBE segment? A: Gord Nelson explained that corporate events increased year-over-year, but walk-in traffic was down slightly in December, possibly due to consumer confidence. The warm weather in October also impacted venue traffic. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
