Cinemark 10-Q contains NCMI results

Quick Stock Talking note today – hidden in Cinemark’s Q2 2021 10-Q is actually NCMI’s 2Q revenue, operating and net income results:

You can see this is a substantial improvement from Q2 2020 and last quarter when the company did 4 and 5mm in sales respectively, but very far away from the $110mm+ it did in 2019. From what I’ve read this is roughly in line with expectations (although note analysts were all over the place here, with estimates as low as $10mm and as high as $34mm).

The quarterly results itself I’m not sure is as important as how management is guiding and whether it will reiterate its call to be FCF positive on an accrual basis by end of the year. I want to know how the company is doing on national advertising clients, which is about 75% of its revenue. Are these clients ready to fork over advertising dollars? How are CPM rates right now and what could they look like in the future? NCMI remains a 2022+ story.

As for Cinemark, the company beat on revenue and is saying its adjusted EBITDA positive for US theaters. I’ll be interested to read the call this weekend to try to pick up any intel on how they’re seeing the box office environment.