National CineMedia (NCMI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $54.7 million, exceeding guidance but down 15% year-over-year, with advertising revenue per attendee at $0.56, the highest since 2017 and up 37% year-over-year.

• Adjusted OIBDA for Q2 2024 was $7.6 million, above guidance but down from $12.5 million in the prior year; operating loss was $9.3 million, and net loss was $8.7 million, compared to a prior-year gain from deconsolidation.

• Attendance and total screens declined year-over-year, with Q2 attendance at 92.8 million versus 134.9 million in Q2 2023.

• Share repurchase program authorized for up to $100 million, with 2.1 million shares repurchased for $9.8 million in Q2 2024.

• NCM LLC emerged from bankruptcy in August 2023, with all historical debt discharged and full reconsolidation by NCM, Inc.

Financial highlights

• Q2 2024 total revenue was $54.7 million, up 269.6% year-over-year due to full consolidation post-bankruptcy, but NCM LLC revenue fell 15% year-over-year.

• Adjusted OIBDA margin for Q2 2024 was 13.9%, down from 19.4% in Q2 2023.

• Cash and equivalents at June 27, 2024, were $56.8 million; total liquidity including revolver was $98.2 million.

• Long-term debt was $10 million outstanding under a $55 million revolver, maturing August 2026.

• Adjusted SG&A expenses and operating expenses declined year-over-year due to cost controls.

Outlook and guidance

• Q3 2024 revenue expected between $56–$58 million; adjusted OIBDA forecasted at $6–$8 million, both below Q3 2023 levels.

• Management expects available cash and distributions to be sufficient for TRA payments, stock repurchases, and potential dividends for the foreseeable future.

• No TRA payment expected in 2024 for the 2023 tax year.

• Anticipates continued box office recovery in H2 2024 and 2025, with a strong film slate and new product deployments.

• Forward-looking statements highlight risks from theater attendance, film availability, competition, and ongoing effects of recent bankruptcy.