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Cinemark to Buy Rave Motion Pictures

Old 11-16-12, 11:15 PM
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Cinemark to Buy Rave Motion Pictures

http://www.4-traders.com/CINEMARK-HO...emas-15516325/

Cinemark Holdings, Inc. : Cinemark to Acquire 32 Theatres from Rave Cinemas
11/16/2012| 10:15pm US/Eastern
Cinemark USA, Inc., a wholly-owned subsidiary of Cinemark Holdings, Inc. ("Cinemark") (NYSE: CNK), one of the largest motion picture exhibitors in the world, and Rave Real Property Holdco, LLC, an affiliate of Rave Cinemas ("Rave"), today announced that they have entered into an asset purchase agreement pursuant to which Cinemark will acquire substantially all of the assets of Rave, primarily consisting of 32 theatres located in 12 states, representing 483 screens, for a purchase price of approximately $240 million. The purchase price, the amount of which is subject to certain closing date adjustments, will consist of cash consideration and the assumption of certain liabilities.

"The acquisition of these high quality assets will further enhance Cinemark's diversified domestic footprint, including the expansion of our presence in the New England market," stated Tim Warner, Cinemark's Chief Executive Officer.

All 483 screens to be acquired are fully digital and 37% of the screens are 3D capable. The assets to be acquired also include 7 IMAX screens and 9 premium large format auditoriums. Below is a summary of certain estimated unaudited historical financial data (in millions) for the 32 theatres being purchased for the trailing twelve-month period ended September 27, 2012:

Revenues $ 228.9
Adjusted EBITDA (1) $ 41.7
Attendance (patrons) 18.8

(1) See below for reconciliation of net income to Adjusted EBITDA
"We are excited about the opportunity to bring these two great companies together. Rave associates and field partners have worked hard to build a top-notch circuit, and Cinemark is well known as one of the best in the business," said Rolando Rodriguez, President and CEO of Rave Cinemas. "I am confident that under Cinemark's leadership, Rave's exceptional quality and customer service will be taken to an even higher level."

Completion of the acquisition is subject to the satisfaction of customary closing conditions for transactions of this type, including Department of Justice or Federal Trade Commission antitrust approval. Cinemark intends to fund the acquisition through the use of available cash, borrowings under its credit facilities, proceeds from the issuance of additional debt securities or a combination of the foregoing.

Akin Gump Strauss Hauer & Feld LLP served as legal advisors for Cinemark. AGM Partners, LLC and Kirkland & Ellis LLP served as financial and legal advisors, respectively, for the seller.

Reconciliation of Net Income to Adjusted EBITDA
(Unaudited, in millions)

Net income $ 21.9
Income tax expense 0.3
Depreciation and amortization 11.5
Interest expense and other 4.8
Deferred rent expense 3.2
Adjusted EBITDA (1) $ 41.7
(1) Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, depreciation and amortization, and deferred rent expense. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

About Cinemark Holdings, Inc.

Cinemark is a leading domestic and international motion picture exhibitor, operating 461 theatres with 5,207 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of September 30, 2012. For more information go to investors.cinemark.com.

About Rave Real Property Holdco, LLC

Rave Real Property Holdco, LLC is an affiliate of Rave Cinemas, a leading domestic motion picture exhibitor, operating 46 theaters with 687 screens in 18 states, including 11 IMAX theaters and 10 RaveXtreme large format auditoriums. For more information visit www.ravecinemas.com.

Forward-looking Statements

Certain matters within this press release include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. For a description of these factors, please review the "Risk Factors" section or other sections in the Company's Annual Report on Form 10-K filed February 29, 2012 and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by such risk factors.



Cinemark USA, Inc.
Chanda Brashears, 972-665-1671
Investor Relations Manager
[email protected]
or
Rave Real Property Holdco, LLC
Doug Willmarth, 214-880-6360
Chief Marketing Officer
[email protected]
or
Gemma Hart, 212-333-3810
[email protected]
I sincerely hope they turn Rave around.
Old 11-17-12, 12:53 AM
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Re: Cinemark to Buy Rave Motion Pictures

Cinemark had the first "fancy" multiplex in Delaware... a shocking ten screens. The theater is now kind of the last option I would consider, since Regal moved in a few years after that. None of them really do much theater upkeep but I associate the Cinemark theater with its heyday of the mid- to late-90's.

Prices are good though: $1 or $2 less, I think.

I went to a Cinemark theater in Florida two years ago and was surprised to see the same black-and-white tiling in the bathroom and the neon signs everywhere. I guess instead of renovating they are waiting until the theaters look retro.
Old 11-17-12, 04:20 AM
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Re: Cinemark to Buy Rave Motion Pictures

I didn't know Rave was a company. From the header I assumed they were distributing a new genre of musicals or concert films: RAVE 2: ELECTRIC BOOGALOO or THE LAST RAVE.
Old 11-17-12, 06:58 AM
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Re: Cinemark to Buy Rave Motion Pictures

I love Rave Theaters. I lived next to one in CA, and I'm lucky enough to live next to one here in PA also. For the OP - what didn't you like about Rave?
Old 11-17-12, 08:59 AM
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Re: Cinemark to Buy Rave Motion Pictures

I dunno. Depending on where you go. Cinemark is badass. Here in Denton we have a 14 screen one but it's a nice little thing that fits right w/ the college vibe. I've always loved Cinemark.
Old 11-17-12, 09:13 AM
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Re: Cinemark to Buy Rave Motion Pictures

Rave just took over all the theatres around here last year, I think it was, and they have done a great job. Have had better experiences since Rave took over, so I dont know what to think of this. Hope it turns out good. For a few year befor Rave came, we stopped going to the shows, because it was so bad.
Old 11-17-12, 10:31 AM
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Re: Cinemark to Buy Rave Motion Pictures

Originally Posted by Tarantino
I love Rave Theaters. I lived next to one in CA, and I'm lucky enough to live next to one here in PA also. For the OP - what didn't you like about Rave?
I'm probably spoiled being from Los Angeles where we have the Arclight and the Landmark and the American Cinematheque, among others.
Old 11-17-12, 12:14 PM
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Re: Cinemark to Buy Rave Motion Pictures

Originally Posted by Supermallet
I'm probably spoiled being from Los Angeles where we have the Arclight and the Landmark and the American Cinematheque, among others.
I'd say there's probably also another reason, but I doubt you'd post it here.
Old 11-17-12, 12:33 PM
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Re: Cinemark to Buy Rave Motion Pictures

No clue what you could possibly mean.
Old 11-17-12, 01:22 PM
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Re: Cinemark to Buy Rave Motion Pictures

Even though the Rave is further than about 10 other theaters, that's where we always go, great places. Never a single issue.
Old 11-17-12, 01:29 PM
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Re: Cinemark to Buy Rave Motion Pictures

Rave bought out a Showcase Cinema here a few years ago. It was a rough 6-12 month transition. Lots of employee turnover.

There was one opening night movie. We got there 15 minutes or so early grab some seats and the theater fills up in no time. Faster than usual. People keep coming in. They are standing in the aisles. Just people everywhere. Rave sold that particular showing twice. Lots and lots of people left unhappy.

That being said, I still preferred them over the Cinemark across town.
Old 11-17-12, 01:56 PM
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Re: Cinemark to Buy Rave Motion Pictures

the Fairfax 14 screens have gone through so many different companies it's gotten annoying.
Old 11-17-12, 02:10 PM
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Re: Cinemark to Buy Rave Motion Pictures

Rave opened a location in Vegas around five years ago (give or take). From a positive point of view: the layout is fantastic, the seats are comfortable, and they serve booze and other various non-traditional snacks.

From a negative point of view: they're using outdated DLP systems (their 3D presentations are full of ghosting), the theater is usually overran by teenagers who can't keep their mouth shut, and their customer service sucks a bag of dicks.

I see this news as a mixed bag. I could care less, but at least I'll be able to use MoviePass there again as Rave told MoviePass to go fuck themselves.
Old 11-17-12, 02:48 PM
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Re: Cinemark to Buy Rave Motion Pictures

I don't think I've ever even seen a Rave theater. In Orange Co, all we've got is mainly Regal, Edwards, and some AMC. When I go to L.A., it's either some indie theater, or Arclight. I'll have to see where the closest one is to me.
Old 11-17-12, 07:02 PM
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Re: Cinemark to Buy Rave Motion Pictures

Rave entered the LA market by purchasing the Beverly Center 13. They did some minor renovations to the theater (adding new seating, putting in a DLP projector for 3D, etc). However, once they announced their first official theater in the market, it pretty much marked the end for the ill-fated Beverly Center 13. By time Rave purchased and operated it, it was already a second-run theater with first-run pricing.

The three Rave theaters currently in Los Angeles:

Baldwin Hills (originally AMC/Lowes)
Brentwood (originally Rave)
Westchester (opened by National Amusements, originally the Bridge Cinema de Lux)

I just hope Cinemark converts all of Rave's shitty Christie projectors to their Barco 4K systems... at least in Vegas.
Old 11-17-12, 07:11 PM
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Re: Cinemark to Buy Rave Motion Pictures

Originally Posted by Matthew Chmiel
Rave entered the LA market by purchasing the Beverly Center 13. They did some minor renovations to the theater (adding new seating, putting in a DLP projector for 3D, etc). However, once they announced their first official theater in the market, it pretty much marked the end for the ill-fated Beverly Center 13. By time Rave purchased and operated it, it was already a second-run theater with first-run pricing.

The three Rave theaters currently in Los Angeles:

Baldwin Hills (originally AMC/Lowes)
Brentwood (originally Rave)
Westchester (opened by National Amusements, originally the Bridge Cinema de Lux)

I just hope Cinemark converts all of Rave's shitty Christie projectors to their Barco 4K systems... at least in Vegas.
as well as their two Virginia theaters ... goddamn the 'Extreme' screen on the left hand side of concessions (at the Fairfax Corner 14 complex) is truly terrible - the Christie doesn't have the required light output setting, it's set way too dark - and 3D imagery has very little 'pop'. The second 'Extreme' screen is less problematic, but still - The Bourne Legacy looked decent, but again, I've seen much better dark contrasts on Barco systems.
Old 11-17-12, 11:36 PM
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Re: Cinemark to Buy Rave Motion Pictures

Cinemark bought Century Theatres, while not a great company they at least prided themselves on NOT showing commercials. Guess what was the first thing Cinemark did when they bought them?
Old 11-17-12, 11:51 PM
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Re: Cinemark to Buy Rave Motion Pictures

Originally Posted by Matthew Chmiel
Rave entered the LA market by purchasing the Beverly Center 13. They did some minor renovations to the theater (adding new seating, putting in a DLP projector for 3D, etc). However, once they announced their first official theater in the market, it pretty much marked the end for the ill-fated Beverly Center 13. By time Rave purchased and operated it, it was already a second-run theater with first-run pricing.

The three Rave theaters currently in Los Angeles:

Baldwin Hills (originally AMC/Lowes)
Brentwood (originally Rave)
Westchester (opened by National Amusements, originally the Bridge Cinema de Lux)

I just hope Cinemark converts all of Rave's shitty Christie projectors to their Barco 4K systems... at least in Vegas.
The Westchester Rave has Barco projectors...2K Barco projectors.
Old 11-18-12, 12:07 AM
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Re: Cinemark to Buy Rave Motion Pictures

Interesting. I don't go to the Rave in Westchester all that often except for their IMAX screenings. We'll see how this goes.
Old 11-18-12, 10:10 AM
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Re: Cinemark to Buy Rave Motion Pictures

I do hope that IMAX stays film, for a multitude of reasons.
Old 11-18-12, 10:56 AM
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Re: Cinemark to Buy Rave Motion Pictures

Originally Posted by Supermallet
I'm probably spoiled being from Los Angeles where we have the Arclight and the Landmark and the American Cinematheque, among others.
The Egyptian and the Aero are fucking terrible. As for content, that's a different beast, but these two have awful, old ass, uncomfortable seats.

Why did Cinema De Lux get rid of their one west coast location to let Rave buy that spot out?
Old 11-18-12, 11:47 AM
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Re: Cinemark to Buy Rave Motion Pictures

Cinema De Lux was under the umbrella of National Amusements. When the recession hit, they sold off everything they owned that wasn't in New England, where their HQ is. The Bridge was the only theater they had west of the Mississippi.

As for the Cinematheque, the seats aren't super comfortable but the content is unbeatable, and they still run things in 70mm.
Old 11-18-12, 01:28 PM
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Re: Cinemark to Buy Rave Motion Pictures

Funny... about a month ago, the Raves around here were all bought out by Carmike Cinemas. Carmike is absolutely horrid... they used to dominate the area, but over the years they mismanaged their theaters to the point that they have exactly two in Birmingham (and one's a dollar theater). Crappy seats, crappy service, terrible employees... I just absolutely hate Carmike. I fucking loved the Rave theaters, but I'm waiting for Carmike to drive them into the ground now that they've taken over.
Old 11-18-12, 09:37 PM
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Re: Cinemark to Buy Rave Motion Pictures

Originally Posted by Alan Smithee
Cinemark bought Century Theatres, while not a great company they at least prided themselves on NOT showing commercials. Guess what was the first thing Cinemark did when they bought them?
The only commercials at the Century Theatres here are the "Cinemark First Look" which are played before the showtime. Even before Cinemark bought out Century, their preshow included commercials.
Old 11-19-12, 03:04 PM
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Re: Cinemark to Buy Rave Motion Pictures

The closest theater to my house is a Rave, but I never go there...but primarily because it was formerly a Showcase Cinema, and when Rave bought it, they refused to put any money into upgrades...so everything in it, from seats to screens to speakers is in pretty poor condition.

Ironically, Cinemark is building a new theater not far from where this Rave one is (about 5 miles apart), so it will be interesting to see what they do with this building...close it down/sell it or turn it into some kind of second-run theater.

But I never liked the way Rave handled things...I actually drive to a theater 20 minutes away to avoid the one a few miles from me.

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