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National Cinemedia (NCMI)

National CineMedia (NCM) is America's Movie Network. As the largest cinema advertising network in the U.S., they unite brands with the power of movies and engage movie fans anytime and anywhere. NCM's Noovie pre-show is presented exclusively in 53 leading national and regional theater circuits including AMC Entertainment Inc. NCM's cinema advertising network offers broad reach and unparalleled audience engagement with over 20,400 screens in over 1,650 theaters in 190 Designated Market Areas® (all of the top 50). NCM Digital goes beyond the big screen, extending in-theater campaigns into online and mobile marketing programs to reach entertainment audiences. National CineMedia, Inc. owns a 48.0% interest in, and is the managing member of, National CineMedia, LLC.

NCMI stock data

Analyst ratings and price targets

Last 3 months

Calendar

8 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 73.1M 73.1M 73.1M 73.1M 73.1M 73.1M
Cash burn (monthly) 13.57M 6.19M 2.87M 6.68M 5.6M 7.85M
Cash used (since last report) 41.5M 18.94M 8.77M 20.42M 17.13M 24.02M
Cash remaining 31.6M 54.16M 64.33M 52.68M 55.97M 49.08M
Runway (months of cash) 2.3 8.7 22.4 7.9 10.0 6.3

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
27 Sep 22 Ronnie Y. Ng Common Stock Sell Dispose S No No 0.75 2,846 2.13K 4,561
27 Sep 22 Ronnie Y. Ng Common Stock Option exercise Acquire M No No 0 7,407 0 7,407
27 Sep 22 Ronnie Y. Ng RSU Common Stock Option exercise Dispose M No No 0 7,407 0 0
7 Sep 22 Standard General Common Stock, par value $0.01 ("Common Stock") Sell Dispose S Yes No 0 4,516,890 0 12,932,382
24 Aug 22 Zoradi Mark RSU Common Stock Grant Acquire A No No 0 53,571 0 53,571
4 Aug 22 Lesinski Thomas F. Common Stock Sell Dispose S No No 1.78 31,536 56.13K 315,717
4 Aug 22 Lesinski Thomas F. Common Stock Option exercise Acquire M No No 0 80,906 0 347,253
4 Aug 22 Lesinski Thomas F. RSU Common Stock Option exercise Dispose M No No 0 80,906 0 0
2 Aug 22 Lesinski Thomas F. Common Stock Payment of exercise Dispose F No No 1.65 2,074 3.42K 266,347
13F holders Current Prev Q Change
Total holders 80 102 -21.6%
Opened positions 21 14 +50.0%
Closed positions 43 17 +152.9%
Increased positions 19 28 -32.1%
Reduced positions 29 42 -31.0%
13F shares Current Prev Q Change
Total value 352.25M 489.48M -28.0%
Total shares 123.51M 129.62M -4.7%
Total puts 133.6K 198.7K -32.8%
Total calls 38.1K 29.8K +27.9%
Total put/call ratio 3.5 6.7 -47.4%
Largest owners Shares Value Change
CNK Cinemark 43.69M $106.61M +1.2%
RGC Regal Entertainment 43.03M $189.32M 0.0%
Standard General 17.45M $15.99M 0.0%
AMC AMC Entertainment 5.95M $0 NEW
Vanguard 2.87M $2.63M -8.2%
BLK Blackrock 1.23M $1.13M -70.1%
Brookstone Capital Management 1.02M $992K +168.6%
RBF Capital 829.16K $1.49M +26.8%
Millennium Management 766.72K $702K +169.0%
Littlejohn & Co 674.88K $618K -0.6%
Largest transactions Shares Bought/sold Change
Wasatch Advisors 0 -6.12M EXIT
AMC AMC Entertainment 5.95M +5.95M NEW
BLK Blackrock 1.23M -2.88M -70.1%
STT State Street 310.03K -945.27K -75.3%
JPM JPMorgan Chase & Co. 33.58K -655.65K -95.1%
Brookstone Capital Management 1.02M +638.64K +168.6%
CNK Cinemark 43.69M +529.25K +1.2%
Raymond James & Associates 0 -504.41K EXIT
Millennium Management 766.72K +481.73K +169.0%
Parametric Portfolio Associates 0 -478.35K EXIT

Financial report summary

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Risks
  • We may not realize the anticipated benefits of the 2019 ESA Amendments.
  • We may not be successful in increasing the number of theaters in which NCM LLC has the right to display Post-Showtime Inventory.
  • Changes in the ESAs with, or lack of support by, the founding members could adversely affect our revenue, growth and profitability.
  • Our plans for developing additional digital or digital out-of-home revenue opportunities may not be implemented and may not be achieved.
  • The user information we collect and maintain through our online and mobile services may expose us to liability or cause us to incur greater operating expenses.
  • Changes in regulations relating to the Internet or other areas of our online or mobile services may result in the need to alter our business practices or incur greater operating expenses.
  • The markets for advertising are competitive and we may be unable to compete successfully.
  • If we do not continue to upgrade our technology, our business could fail to grow and revenue and operating margins could decline.
  • Our Adjusted OIBDA is derived from high margin advertising revenue. Our contractual costs will grow over time, and the reduction in spending by or loss of a national advertiser or group of local advertisers or failure to grow our advertising revenue in line with these costs could have a meaningful adverse effect on our business.
  • The loss of any major content partner or advertising client could significantly reduce our revenue.
  • The ESAs allow the founding members to engage in activities that might compete with certain elements of our business, which could reduce our revenue and growth potential.
  • We depend upon our senior management and our business may be adversely affected if we cannot retain or replace them.
  • If one of the founding members declared bankruptcy, the ESA with that founding member may be rejected, renegotiated or deemed unenforceable.
  • The founding members and our network affiliates are subject to substantial government regulation, which could limit their current business, slow their future growth of locations and screens and in turn impact our business and slow our growth prospects.
  • We may be unable to effectively manage changes to our business strategy to continue the growth of our advertising inventory and network.
  • Our business relies heavily on technology systems, and any failures or disruptions may materially and adversely affect our operations.
  • If the non-competition provisions of the ESAs are deemed unenforceable, the founding members could compete against us and our business could be adversely affected.
  • Our revenue and Adjusted OIBDA fluctuate from quarter to quarter and may be unpredictable, which could increase the volatility of our stock price.
  • Our business, services, or technology may infringe on intellectual property rights owned by others, which may interfere with our ability to provide services or expose us to increased liability or expense, or otherwise may be affected by our efforts to protect our intellectual property or restrictions or obligations in third-party licenses.
  • We are a holding company with no operations of our own, and we depend on distributions and payments under the NCM LLC operating and management services agreements from NCM LLC to meet our ongoing obligations and to pay cash dividends on our common stock.
  • NCM LLC’s substantial debt obligations could impair our financial condition or prevent us from achieving our business goals.
  • Despite NCM LLC’s current levels of debt, it, or NCM, Inc. may still incur substantially more debt, including secured debt, which would increase the risks associated with NCM LLC’s level of debt.
  • NCM LLC’s other founding members or their affiliates, as well as our largest stockholder, may have interests that differ from those of our public stockholders and they may be able to influence our affairs.
  • Different interests among the remaining founding members or between the remaining founding members and us could prevent us from achieving our business goals.
  • The corporate opportunity provisions in our certificate of incorporation could enable NCM LLC’s members to benefit from corporate opportunities that might otherwise be available to us.
  • The agreements between us and NCM LLC’s founding members were made in the context of an affiliated relationship and may contain different terms than comparable agreements with unaffiliated third parties.
  • Our certificate of incorporation and bylaws contain anti-takeover protections that may discourage or prevent strategic transactions, including a takeover of our Company, even if such a transaction would be beneficial to our stockholders.
  • Any future issuance of membership units by NCM LLC and subsequent redemption of such units for common stock could dilute the voting power of our existing common stockholders and adversely affect the market value of our common stock.
  • Our future issuance of preferred stock could dilute the voting power of our common stockholders and adversely affect the market value of our common stock.
  • If we or NCM LLC’s founding members are determined to be an investment company, we would become subject to burdensome regulatory requirements and our business activities could be restricted.
  • Our TRA with NCM LLC’s founding members is expected to reduce the amount of overall cash flow that would otherwise be available to us and will increase our potential exposure to the financial condition of NCM LLC’s founding members.
  • The substantial number of shares that are eligible for sale could cause the market price for our common stock to decline or make it difficult for us to sell equity securities in the future.
Management Discussion
  • (1)Represents the total attendance within NCM LLC’s advertising network, excluding screens and attendance associated with AMC Carmike theaters for each period presented.  Refer to Note 5 to the audited Consolidated Financial Statements included elsewhere in this document.
  • National and regional advertising revenue. The $19.0 million, or 28.5%, increase in national and regional advertising revenue was primarily due to the increase in network attendance of 81.4% in 2021, as compared to 2020 and a 48.0% increase in impressions sold, partially offset by a decrease in national advertising utilization from 102.5% for the year ended 2020 to 66.3% for the year ended 2021.
  • Local advertising revenue. The $0.3 million, or 1.7%, increase was in part due to the increase in network attendance of 81.4% in 2021, as compared to 2020, yet remained adversely impacted by the continued effects of the COVID-19 Pandemic on certain categories of advertisers that have historically advertised in our theaters such as arts and entertainment, restaurants, automotive and travel and tourism, which were suffering from various impacts including decreased inventory due to supply chain delays and the inability to serve existing patrons due to staffing shortages during 2021.

Content analysis

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H.S. senior Avg
New words: box, dormant, experiencing, extension, extinguishment, indenture, insurance, publisher, trustee
Removed: earned, endure, mask, packed, safety, scheduled