Cinemark Holdings, Inc. (NYSE:CNK) Q4 2023 Earnings Call Transcript

As you look forward, we do expect to continue to ramp up our capital expenditures as the industry rebounds in ’25 and continues in 2026. What I would say just from a normalized perspective, there’s a couple of things to keep in mind from a maintenance CapEx perspective. We do think it’s reasonable to assume that over the longer term, our normalized run rate there will be within that $80 million to $100 million range, which is where we’ve historically run in pre-pandemic time. Outside of that, it’s pretty hard to predict because the remainder of that is going to be largely focused on ROI generating opportunities, which includes new builds as well as the family entertainment centers that Sean mentioned, and then premium amenities, and that’s really going to depend on the nature and scale of opportunities that arise.

And then, outside of that the other key consideration would be we continue to progress through our multi-year conversion of our projectors to laser projectors.

Stephen Laszczyk: Great. Thank you.

Sean Gamble: Thanks, Stephen.

Operator: Thank you. We’ve reached the end of our question-and-answer session. I’d like to turn the floor back over to Sean Gamble for any further closing comments.

Sean Gamble: Thank you, and thank you all again for joining us this morning. I’d just like to say once again that we’re incredibly proud of the results our tremendous Cinemark team was able to deliver in 2023, and highly encouraged by what those results suggest regarding the potential of our company ahead. While 2024 will be pressured somewhat by the strike-induced volume headwinds that we’ve discussed, the fundamentals that drive our industry remain intact and we continue to be highly enthusiastic about the future of theatrical exhibition and certainly of Cinemark. We look forward to speaking with you all again following our first quarter 2024 results. Thank you.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.