Cinemark Holdings Inc
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
CNK$38.90-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000950170-24-089583
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0000950170-24-119234
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 136 previous paragraphs and 137 current paragraphs.
66 unchanged; 59 reworded; 12 added; 10 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Films leading the box office during the nine months ended September 30, 2024 included Inside Out 2, Deadpool & Wolverine, Despicable Me 4, Dune: Part Two, Twisters, and Beetlejuice Beetlejuice.
Current report
Third quarter of 2024 -The North American Industry box office generated approximately $2.7 billion during the third quarter of 2024, which included Deadpool & Wolverine, Despicable Me 4, Twisters, Beetlejuice Beetlejuice, and the carryover of Inside Out 2.
Current report
Third quarter of 2023 -The North American Industry box office was approximately $2.7 billion during the third quarter of 2023, which included Barbie, Oppenheimer, Sound of Freedom, Mission: Impossible - Dead Reckoning Part One, and Indiana Jones and the Dial of Destiny.
Current report
U.S. Attendance increased to 37.6 million patrons during the third quarter of 2024 compared with 37.5 million patrons during the third quarter of 2023. Average ticket price increased 6.9% to $9.98 during the third quarter of 2024 compared with $9.34 during the third quarter of 2023 primarily driven by strategic pricing actions, a higher mix of premium format tickets, and the absence of National Cinema Day in the third quarter of 2024. Concession revenue per patron increased 11.5% to $7.97 during the third quarter of 2024 compared with $7.15 during the third quarter of 2023 driven by higher incidence rates associated with the film content mix, strategic pricing actions and, to a lesser extent, product mix. Other revenue for the third quarter of 2024 increased 3.9% to $66.6 million compared with $64.1 million during the third quarter of 2023 primarily due to an increase in promotional and events revenue.
Current report
2024 Period -The North American Industry box office generated approximately $6.4 billion during the 2024 period, which included Inside Out 2, Deadpool & Wolverine, Despicable Me 4, Dune: Part Two, and Twisters.
Current report
Holdings entered into hedge transactions with counterparties in connection with the issuance of the 4.50% Convertible Senior Notes. The convertible note hedge transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the 4.50% Convertible Senior Notes, the number of shares of Holdings' common stock underlying the 4.50% Convertible Notes, which initially gives Holdings the option to purchase approximately 32.0 shares of its common stock at a price of approximately $14.35 per share. Concurrently with entering into the convertible note hedge transactions, Holdings also entered into warrant transactions with each option counterparty whereby Holdings sold to such option counterparty warrants to purchase, subject to customary anti-dilution adjustments, up to the same number of shares of Holdings' common stock, which initially gives the option counterparties the option to purchase approximately 32.0 shares at a price of approximately $22.08 per share. The economic effect of these transactions is to effectively raise the strike price of the 4.50% Convertible Senior Notes to approximately $22.08 per share of Holdings’ common stock. The warrants expire 1/80 th per trading day between November 15, 2025 and March 12, 2026.
Current report
7.00% Senior Notes
Current report
CUSA may redeem the 7.00% Senior Notes in whole or in part at any time on or after August 1, 2027 at redemption prices set forth in the indenture governing the 7.00% Senior Notes, plus accrued and unpaid interest, if any, on the 7.00% Senior Notes redeemed, to the applicable redemption date, if redeemed during the 12-month period beginning on August 1 of the years indicated below:
Current report
The indenture governing the 7.00% Senior Notes contains covenants that limit, among other things, the ability of CUSA and certain of its subsidiaries to (1) incur or guarantee additional indebtedness, (2) pay dividends or distributions on, or redeem or repurchase, capital stock and make other restricted payments, (3) make certain investments, (4) engage in certain transactions with affiliates, (5) incur or assume certain liens, and (6) consolidate, merge or transfer all or substantially all of its assets. Additionally, upon a change in control, as defined in the indenture governing the 7.00% Senior Notes, CUSA would be required to make an offer to repurchase all of the 7.00% Senior Notes at a price equal to 101% of the aggregate principal amount outstanding plus accrued and unpaid interest, if any, through the date of repurchase.
Current report
On September 19, 2024, CUSA, as permitted by the terms of the indenture governing the 5.875% Senior Notes, irrevocably deposited non-callable U.S. government treasury securities with a trustee in an amount sufficient to fund the repayment of the remaining $59.7 million principal amount of the 5.875% Senior Notes on March 15, 2025 (the “Redemption Date”) at 100% of the principal amount plus accrued and unpaid interest thereon. After the deposit of such funds with the trustee, CUSA’s obligations under the indenture with respect to the 5.875% Senior Notes were satisfied and discharged and the transaction was accounted for as a debt extinguishment.
Current report
As a result of the debt extinguishment CUSA recognized a loss of $3.0 related to the write-off of unamortized debt issuance costs as well as legal and other fees incurred in connection with the transactions, which is reflected in “Loss on debt amendments and extinguishments” in the Company’s condensed consolidated statement of income for the three and nine months ended September 30, 2024. See Note 7 to the condensed consolidated financial statements for a discussion of the satisfaction and discharge of the 5.875% Senior Notes completed on September 19, 2024.
Current report
In August, 2024, one of the Company’s international subsidiaries paid off its outstanding bank loan. The bank loan was scheduled to mature in January 2029.
Removed paragraphs (10)
Previous report
Films leading the box office during the six months ended June 30, 2024 included Inside Out 2, Dune: Part Two, Godzilla x Kong: The New Empire, Kung Fu Panda 4, Kingdom of the Planet of the Apes, Bad Boys: Ride or Die, Ghostbusters: Frozen Empire, IF, Bob Marley: One Love, and The Fall Guy.
Previous report
Recent Developments
Previous report
Second quarter of 2024 -The North American Industry box office generated approximately $2.0 billion during the second quarter of 2024, which included Inside Out 2, Kingdom of the Planet of the Apes, Bad Boys: Ride or Die, Godzilla x Kong: The New Empire, IFand The Fall Guy.
Previous report
Second quarter of 2023 -The North American Industry box office was approximately $2.7 billion during the second quarter of 2023, which included The Super Mario Bros. Movie, Guardians of the Galaxy Vol. 3, Spider-Man: Across the Spider-Verse, The Little Mermaid, Fast Xand Transformers: Rise of the Beasts.
Previous report
U.S. Attendance decreased 25.0% to 29.1 million patrons during the second quarter of 2024 compared with 38.8 million patrons during the second quarter of 2023 driven by the lower concentration of high-grossing titles and overall mix of film releases due to the impact of the Hollywood strikes. Average ticket price increased 2.7% to $9.88 during the second quarter of 2024 compared with $9.62 during the second quarter of 2023 primarily driven by strategic pricing actions. Concession revenue per patron increased 4.1% to $7.95 during the second quarter of 2024 compared with $7.64 during the second quarter of 2023 primarily driven by inflationary and strategic pricing actions. Other revenue for the second quarter of 2024 decreased 18.4% to $53.2 million compared with $65.2 million during the second quarter of 2023 primarily due to a decrease in attendance, which resulted in a reduction in the variable component of other revenue.
Previous report
2024 Period -The North American Industry box office generated approximately $3.7 billion during the 2024 period, which included Inside Out 2, Dune: Part Two, Godzilla x Kong: The New Empire, Kung Fu Panda 4, Kingdom of the Planet of the Apes, Bad Boys: Ride or Die, Ghostbusters: Frozen Empire, IF, Bob Marley: One Loveand The Fall Guy.
Previous report
Income Taxes - Valuation Allowances
Previous report
The Company assesses the likelihood that it will be able to recover its deferred tax assets against future sources of taxable income and reduces the carrying amounts of deferred tax assets by recording a valuation allowance, if, based on all available evidence, the Company believes it is more likely than not that all or a portion of such assets will not be realized. There is a possibility that within the next 12 months, sufficient positive evidence may become available to reach a conclusion that a portion of the valuation allowance in the U.S. will no longer be required.
Previous report
The 5.875% Senior Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by certain of CUSA's subsidiaries that guarantee, assume or become liable with respect to any of CUSA's or a guarantor’s debt. The 5.875% Senior Notes and the guarantees are senior unsecured obligations and rank equally in right of payment with all of CUSA's and its guarantor’s existing and future senior debt and senior in right of payment to all of CUSA’s and its guarantors’ existing and future senior subordinated debt. The 5.875% Senior Notes and the guarantees are effectively subordinated to all of CUSA’s and its guarantor’s existing and future secured debt to the extent of the value of the collateral securing such debt, including all borrowings under CUSA’s Credit Agreement. The 5.875% Senior Notes and the guarantees are structurally subordinated to all existing and future debt and other liabilities of CUSA's subsidiaries that do not guarantee the 5.875% Senior Notes. CUSA may redeem the 5.875% Senior Notes in whole or in part at redemption prices specified in the indenture. See Note 20 to the condensed consolidated financial statements and Recent Developments above for a discussion of the tender offer for the 5.875% Senior Notes completed on July 18, 2024.
Previous report
As of June 30, 2024, one of the Company’s international subsidiaries had a bank loan outstanding of $5.5 million that matures in January 2029. The interest rate on the bank loan outstanding at June 30, 2024 was 4.0%.
Reworded paragraphs (59)
Previous wording
Three months ended June 30, 2024 (the “second quarter of 2024”) versus the three months ended June 30, 2023 (the “second quarter of 2023”)
Current wording
Three months ended September 30, 2024 (the “third quarter of 2024”) versus the three months ended September 30, 2023 (the “third quarter of 2023”)
Previous wording
International. Attendance decreased 18.4% to 20.9 million patrons during the second quarter of 2024 compared with 25.6 million patrons during the second quarter of 2023 driven by the lower concentration of high-grossing titles and reduced scale of film releases due to the impact of the Hollywood strikes. Revenues, average ticket price and concession revenue per patron for our international segment, as reported, were unfavorably impacted by exchange rate fluctuations for the second quarter of 2024. In constant currency, the average ticket price increased 44.4% to $5.92 for the second quarter of 2024 primarily due to inflationary pricing actions, partially offset by promotional activity. Similarly, in constant currency, concession revenue per patron increased 51.5% to $4.56 for the second quarter of 2024 primarily due to inflationary pricing actions. Other revenue increased 36.0% in constant currency to $34.4 million for the second quarter of 2024 primarily due to higher loyalty program and screen advertising revenue driven by inflation.
Current wording
International. Attendance decreased 6.6% to 22.8 million patrons during the third quarter of 2024 compared with 24.4 million patrons during the third quarter of 2023 driven by the mix of film releases during the third quarter of 2024. Revenues, average ticket price and concession revenue per patron for our international segment, as reported, were unfavorably impacted by exchange rate fluctuations for the third quarter of 2024. In constant currency, the average ticket price increased 50.9% to $5.78 for the third quarter of 2024 primarily due to inflationary pricing actions, partially offset by promotional activity. Similarly, in constant currency, concession revenue per patron increased 53.7% to $4.52 for the third quarter of 2024 primarily due to inflationary pricing actions. Other revenue increased 56.1% in constant currency to $42.3 million for the third quarter of 2024 primarily due to inflationary impacts.
Previous wording
U.S. Film rentals and advertising costs for the second quarter of 2024 were 57.3% of admissions revenue compared with 60.0% for the second quarter of 2023 due to the concentration of box office and mix of films. Concession supplies expense for the second quarter of 2024 was 18.7% of concession revenue compared with 17.0% of concession revenue for the second quarter of 2023. The concession supplies rate for the second quarter of 2024 was impacted by inflationary pressures on certain concession categories and higher shrink, partially offset by the impact of strategic pricing actions on concession revenue,
Current wording
U.S. Film rentals and advertising costs for the third quarter of 2024 were 59.2% of admissions revenue compared with 57.4% for the third quarter of 2023 due to an increased concentration of high grossing titles and the overall mix of films. Concession supplies expense for the third quarter of 2024 was 16.5% of concession revenue compared with 17.8% for the third quarter of 2023. The decline in the concession supplies rate for the third quarter of 2024 was driven by the impact of strategic pricing actions and favorable concession rebates, partially offset by inflationary pressures on certain concession categories and product mix.
Previous wording
Salaries and wages decreased 12.6% to $80.8 million for the second quarter of 2024 compared with $92.5 million for the second quarter of 2023 due to lower attendance, labor productivity initiatives and reduced operating hours, partially offset by higher wage rates. Facility lease expense, which is predominantly fixed in nature, decreased 3.1% to $60.0 million primarily due to theatre closures and lease renegotiations. Utilities and other costs decreased 11.3% to $80.1 million, as many of these costs are variable or semi-variable in nature and were impacted by the decrease in attendance. A decrease in property taxes also contributed to the decline in utilities and other costs.
Current wording
Salaries and wages increased 2.4% to $91.1 million for the third quarter of 2024 compared with $89.0 million for the third quarter of 2023 due to higher wage rates and expanded operating hours, partially offset by the impact of labor productivity initiatives. Facility lease expense, which is predominantly fixed in nature, increased 4.1% to $63.5 million primarily due to higher percentage rent. Utilities and other costs decreased 1.6% to $97.3 million, driven by lower repairs and maintenance and janitorial costs.
Previous wording
International. Our international operating costs, as reported, were favorably impacted by exchange rate fluctuations for the second quarter of 2024.
Current wording
International. Our international operating costs, as reported, were favorably impacted by exchange rate fluctuations for the third quarter of 2024.
Previous wording
Film rentals and advertising costs were 50.3% of admissions revenue as reported for the second quarter of 2024 compared with 51.4% for the second quarter of 2023 driven by the concentration of box office and the mix of films. Concession supplies expense was 21.8% of concessions revenue as reported for the second quarter of 2024 compared with 22.0% of concession revenue for the second quarter of 2023. The decrease in the concession supplies rate was primarily driven by the impact of inflationary pricing actions on concession revenue, as well as product mix.
Current wording
Film rentals and advertising costs were 50.8% of admissions revenue as reported for the third quarter of 2024 compared with 50.4% for the third quarter of 2023 driven by the overall mix of films. Concession supplies expense was 22.5% of concessions revenue as reported for the third quarter of 2024 compared with 21.3% for the third quarter of 2023. The increase in the concession supplies rate was in part driven by product mix.
Previous wording
Salaries and wages, facility lease expense and utilities and other expenses, as reported, were lower for the second quarter of 2024 as a result of favorable exchange rate fluctuations. In constant currency, salaries and wages increased to $27.9 million for the second quarter of 2024 primarily due to wage rate inflation, partially offset by labor productivity initiatives and lower attendance. Facility lease expense increased to $29.2 million in constant currency for the second quarter of 2024 driven by inflationary increases and the return of certain minimum rent thresholds, partially offset by lower percentage rent. Utilities and other costs increased to $40.5 million in constant currency for the second quarter of 2024 primarily due to inflationary pressures and higher utility costs.
Current wording
Salaries and wages, facility lease expense and utilities and other expenses, as reported, were lower for the third quarter of 2024 as a result of favorable exchange rate fluctuations. In constant currency, salaries and wages increased to $29.4 million for the third quarter of 2024 primarily due to wage rate inflation, partially offset by labor productivity initiatives and lower attendance. Facility lease expense increased to $31.0 million in constant currency for the third quarter of 2024 driven by inflationary increases and the return of certain minimum rent thresholds, partially offset by lower percentage rent. Utilities and other costs increased to $46.3 million in constant currency for the third quarter of 2024 primarily due to inflationary pressures and higher utility costs.
Previous wording
General and Administrative Expense. General and administrative expense for Holdings increased to $55.7 million for the second quarter of 2024 compared with $50.0 million for the second quarter of 2023. General and administrative expense for CUSA increased to $54.7 million for the second quarter of 2024 compared with $49.1 million for the second quarter of 2023. The increase for both Holdings and CUSA is primarily due to wages and benefits inflation, as well as higher share-based compensation and related payroll taxes, partially offset by the favorable impact of exchange rate fluctuations.
Current wording
General and Administrative Expense. General and administrative expense for Holdings increased to $56.4 million for the third quarter of 2024 compared with $48.2 million for the third quarter of 2023. General and administrative expense for CUSA increased to $55.5 million for the third quarter of 2024 compared with $47.5 million for the third quarter of 2023. The increase for both Holdings and CUSA is primarily due to wages and benefits inflation, higher incentive and share-based compensation and higher professional fees, partially offset by the favorable impact of exchange rate fluctuations.
Previous wording
Depreciation and Amortization. Depreciation and amortization expense decreased to $49.8 million for the second quarter of 2024 compared with $52.8 million for the second quarter of 2023 due in part to the impairment of assets during 2023 and the favorable impact of exchange rate fluctuations.
Current wording
Depreciation and Amortization. Depreciation and amortization expense decreased to $49.1 million for the third quarter of 2024 compared with $51.9 million for the third quarter of 2023 due in part to lower levels of capital expenditures post-pandemic and the favorable impact of exchange rate fluctuations.
Previous wording
Loss (Gain) on Disposal of Assets and Other. A loss on disposal of assets and other of $1.7 million was recorded for the second quarter of 2024 compared with a gain of $3.0 million for the second quarter of 2023. Activity for the second quarter of 2024 was primarily related to the removal and disposal of equipment at closed theatres. Activity for the second quarter of 2023 was primarily related to the write-off of operating lease obligations for theatres that were closed during the second quarter of 2023.
Current wording
Gain on Disposal of Assets and Other. A gain on disposal of assets and other of $0.1 million was recorded for the third quarter of 2024 compared with a gain of $6.1 million for the third quarter of 2023. Activity for the third quarter of 2023 was primarily related to the sale of our Ecuador subsidiary in September 2023.
Previous wording
Interest Expense. Interest expense for Holdings, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated gains for swap amendments, was $34.6 million during the second quarter of 2024 compared with $37.1 million during the second quarter of 2023. The interest expense attributable to CUSA, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated losses for swap amendments, was $28.6 million during the second quarter of 2024 compared with $31.0 million during the second quarter of 2023. The decrease in interest expense was primarily due to the redemption of our 8.75% Secured Notes, partially offset by a higher average interest rate on our term loan borrowings. See further discussion at Liquidity and Capital Resources below.
Current wording
Interest Expense. Interest expense for Holdings, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated gains for swap amendments, was $36.7 million during the third quarter of 2024 compared with $38.1 million during the third quarter of 2023. The interest expense attributable to CUSA, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated gains for swap amendments, was $30.6 million during the third quarter of 2024 compared with $32.1 million during the third quarter of 2023. The decrease in interest expense was primarily due to the redemption of the remaining 8.75% Secured Notes, the extinguishment of the 5.875% Senior Notes, and the amendment and extension of our interest rate swaps, partially offset by the impact of the issuance of the 7.00% Senior Notes. See further discussion in Liquidity and Capital Resources below.
Previous wording
Interest Income. Interest income for Holdings was $12.5 million during the 2024 period compared with $13.0 million during the 2023 period. The interest income attributable to CUSA was $9.4 million during the 2024 period compared with $10.1 million during the 2023 period. The decrease in interest income primarily reflects lower average cash and cash equivalents balances, partially offset by higher interest rates earned on those balances.
Current wording
Interest Income. Interest income for Holdings was $14.2 million during the third quarter of 2024 compared with $15.3 million during the third quarter of 2023. The interest income attributable to CUSA was $11.1 million during the third quarter of 2024 compared with $12.2 million during the third quarter of 2023. The decrease in interest income primarily reflects the impact of interest rate fluctuations on our cash balances.
Previous wording
Loss on Debt Amendments and Extinguishments. We recorded a loss on amendment and extinguishment of debt of $2.5 million during the second quarter of 2024 related to the amendment of our term loan and the redemption of the remaining 8.75% Secured Notes, including the write-off of unamortized debt issuance costs and original issue discount, and legal and other fees paid. We recorded a loss on amendment and extinguishment of debt of $10.7 million during the second quarter of 2023 related to the amendment of our Senior Secured Credit Facilities and the partial redemption of the 8.75% Secured Notes, including the write-off of unamortized debt issuance costs and legal and other fees paid. See Note 7 to the condensed consolidated financial statements for information about our loss on debt amendments and extinguishments.
Current wording
Loss on Debt Amendments and Extinguishments. We recorded a loss on amendment and extinguishment of debt of $3.0 million during the third quarter of 2024 related to the early extinguishment of the 5.875% Senior Notes. See Note 7 to the condensed consolidated financial statements for additional information.
Previous wording
Foreign Currency Exchange and Other Related Loss. We recorded a foreign currency exchange loss of $6.3 million during the second quarter of 2024 compared with a loss of $6.2 million during the second quarter of 2023. Activity for the second quarter of 2023 includes a $4.9 million loss associated with Blue Chip Swap transactions. Excluding the impact of the Blue Chip Swap transactions, the gain or loss on foreign exchange is primarily related to currency exchange fluctuations from original transactions dates until settlement. See Note 14 to the condensed consolidated financial statements for a discussion of Blue Chip Swap transactions.
Current wording
Foreign Currency Exchange and Other Related Loss. We recorded a foreign currency exchange loss of $3.0 million during the third quarter of 2024 compared with a loss of $11.0 million during the third quarter of 2023. Activity for the third quarter of 2024 and 2023 includes losses of $0.9 million and $5.2 million, respectively, associated with Blue Chip Swap transactions. Excluding the impact of Blue Chip Swap transactions, the loss on foreign currency exchange is primarily related to currency exchange fluctuations from original transaction dates until settlement. See Note 14 to the condensed consolidated financial statements for a discussion of Blue Chip Swap transactions.
Previous wording
Equity in Income of Affiliates. Equity in income of affiliates of $2.5 million was recorded during the second quarter of 2024 compared with equity in income of affiliates of $1.8 million during the second quarter of 2023. See Note 9 to the condensed consolidated financial statements for information about our equity investments.
Current wording
Equity in Income of Affiliates. Equity in income of affiliates of $5.0 million was recorded during the third quarter of 2024 compared with $1.5 million during the third quarter of 2023 driven by higher income earned from our investment in AC JV LLC during the third quarter of 2024. See Note 9 to the condensed consolidated financial statements for information about our equity investments.
Previous wording
Net (Loss) Gain on Investment in NCMI. We recorded a net loss on our investment in NCMI of $3.2 million during the second quarter of 2024 compared with a gain of $9.2 million during the second quarter of 2023, primarily related to the mark-to-market adjustment of our investment in NCMI under the fair value basis of accounting. See Note 8 to the condensed consolidated financial statements for information about our investment in NCMI.
Current wording
Net Gain on Investment in NCMI. We recorded a net gain on our investment in NCMI of $11.6 million during the third quarter of 2024 compared with $4.7 million during the third quarter of 2023, related to the mark-to-market adjustment of our investment in NCMI under the fair value basis of accounting. See Note 8 to the condensed consolidated financial statements for information about our investment in NCMI.
Previous wording
Income Taxes - Holdings. An income tax benefit of $0.9 million was recorded for the second quarter of 2024 compared with income tax expense of $12.3 million for the second quarter of 2023. The effective tax rate was approximately (1.8)% for the second quarter of 2024 compared with 9.3% for the second quarter of 2023. The effective tax rate for the second quarter of 2024 was favorably impacted by changes in valuation allowances previously recorded against certain deferred tax assets in certain foreign jurisdictions. The effective tax rate for the second quarter of 2023 was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in various jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Current wording
Income Taxes - Holdings. An income tax benefit of $42.7 million was recorded for the third quarter of 2024 compared with income tax expense of $21.4 million for the third quarter of 2023. The effective tax rate was approximately (29.2)% for the third quarter of 2024 compared with 19.0% for the third quarter of 2023. The effective tax rate for the third quarter of 2024 was favorably impacted by changes in valuation allowances previously recorded against certain foreign tax credits, other federal deferred tax assets, certain state net operating losses and other state deferred tax assets. The effective tax rate for the third quarter of 2023 was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in various jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Previous wording
Income Taxes - CUSA. An income tax benefit of $1.3 million was recorded for the second quarter of 2024 compared with income tax expense of $15.3 million for the second quarter of 2023. The effective tax rate was approximately (2.8)% for the second quarter of 2024 compared with 11.2% for the second quarter of 2023. The effective tax rate for the second quarter of 2024 was favorably impacted by changes in valuation allowances previously recorded against certain deferred tax assets in certatin foreign jurisdictions. The effective tax rate for the second quarter of 2023 was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in various jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Current wording
Income Taxes - CUSA. An income tax benefit of $39.7 million was recorded for the third quarter of 2024 compared with income tax expense of $17.4 million for the third quarter of 2023. The effective tax rate was approximately (26.4)% for the third quarter of 2024 compared with 15.0% for the third quarter of 2023. The effective tax rate for the third quarter of 2024 was favorably impacted by changes in valuation allowances previously recorded against certain foreign tax credits, other federal deferred tax assets, certain state net operating losses and other state deferred tax assets. The effective tax rate for the third quarter of 2023 was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in various jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Previous wording
Six months ended June 30, 2024 (the “2024 period”) versus the six months ended June 30, 2023 (the “2023 period”)
Current wording
Nine months ended September 30, 2024 (the “2024 period”) versus the nine months ended September 30, 2023 (the “2023 period”)
Previous wording
2023 Period -The North American Industry box office was approximately $4.5 billion during the 2023 period, which included the carryover of Avatar: The Way of Water and Puss in Boots: The Last Wish as well as new releases including The Super Mario Bros. Movie, Guardians of the Galaxy Vol. 3, Spider-Man: Across the Spider-Verse, The Little Mermaid, Ant-Man and the Wasp: Quantumania, John Wick: Chapter 4, Creed III, Fast X, Transformers: Rise of the Beastsand Indiana Jones and the Dial of Destiny.
Current wording
2023 Period -The North American Industry box office was approximately $7.2 billion during the 2023 period, which included the carryover of Avatar: The Way of Water as well as new releases including Barbie, The Super Mario Bros. Movie, Spider-Man: Across the Spider-Verse, Guardians of the Galaxy Vol. 3, and Oppenheimer.
Previous wording
U.S. Attendance decreased 17.7% to 52.7 million patrons during the 2024 period compared with 64.0 million patrons during the 2023 period driven by less carryover benefit in the 2024 period from prior year releases and the lower concentration of high-grossing titles and overall mix of film releases due to the impact of the Hollywood strikes. Average ticket price increased 2.0% to $9.85 during the 2024 period compared with $9.66 during the 2023 period driven by strategic pricing actions partially offset by lower 3D penetration in the 2024 period. Concession revenue per patron increased 3.0% to $7.78 during the 2024 period compared with $7.55 during the 2023 period primarily driven by inflationary and strategic pricing actions as well as product mix, partially offset by lower incidence rates associated with film content mix. Other revenue for the 2024 period decreased 11.5% to $99.8 million compared with $112.8 million during the 2023 period primarily due to a decrease in attendance, which resulted in a reduction in the variable component of other revenue.
Current wording
U.S. Attendance decreased 11.0% to 90.3 million patrons during the 2024 period compared with 101.5 million patrons during the 2023 period driven by less carryover benefit in the 2024 period from prior year releases and the overall mix of film releases due to the impact of the Hollywood strikes. Average ticket price increased 3.8% to $9.90 during the 2024 period compared with $9.54 during the 2023 period driven by strategic pricing actions. Concession revenue per patron increased 6.2% to $7.86 during the 2024 period compared with $7.40 during the 2023 period primarily driven by strategic pricing actions, product mix and higher incidence rates associated with the film content mix. Other revenue for the 2024 period decreased 5.9% to $166.4 million compared with $176.9 million during the 2023 period primarily due to a decrease in attendance, which resulted in a reduction in the variable component of other revenue.
Previous wording
International. Attendance decreased 14.5% to 37.0 million patrons during the 2024 period compared with 43.3 million patrons during the 2023 period due to less carryover benefit in the 2024 period from prior year releases and the lower concentration of high-grossing titles and reduced scale of film releases due to the impact of the Hollywood strikes. Revenues, average ticket price and concession revenue per patron for our international segment, as reported, were unfavorably impacted by exchange rate fluctuations for the 2024 period. In constant currency, the average ticket price increased 42.7% to $5.65 for the 2024 period primarily due to inflationary pricing actions. Similarly, in constant currency, concession revenue per patron increased 50.5% to $4.38 for the 2024 period primarily due to inflationary pricing actions. Other revenue increased 48.3% in constant currency to $61.7 million for the 2024 period primarily due to higher loyalty program and screen advertising revenue driven by inflation.
Current wording
International. Attendance decreased 11.7% to 59.8 million patrons during the 2024 period compared with 67.7 million patrons during the 2023 period due to less carryover benefit in the 2024 period from prior year releases and the overall mix of film releases due to the impact of the Hollywood strikes. Revenues, average ticket price and concession revenue per patron for our international segment, as reported, were unfavorably impacted by exchange rate fluctuations for the 2024 period. In constant currency, the average ticket price increased 45.8% to $5.70 for the 2024 period primarily due to inflationary pricing actions. Similarly, in constant currency, concession revenue per patron increased 51.7% to $4.43 for the 2024 period primarily due to inflationary pricing actions. Other revenue increased 51.4% in constant currency to $104.0 million for the 2024 period primarily due to inflationary impacts.
Previous wording
U.S. Film rentals and advertising costs for the 2024 period were 56.0% of admissions revenue compared with 57.8% for the 2023 period due to the concentration of box office and mix of films. Concession supplies expense for the 2024 period was 18.9% of concession revenue compared with 17.2% of concession revenue for the 2023 period. The concession supplies rate for the 2024 period was impacted by inflationary pressures on certain concession categories, product mix and higher shrink, partially offset by the impact of strategic pricing actions.
Current wording
U.S. Film rentals and advertising costs for the 2024 period were 57.4% of admissions revenue compared with 57.7% for the 2023 period due to the overall mix of film releases. Concession supplies expense for the 2024 period was 17.9% of concession revenue compared with 17.4% for the 2023 period. The concession supplies rate for the 2024 period was impacted by inflationary pressures on certain concession categories, product mix and higher shrink, partially offset by the impact of strategic pricing actions.
Previous wording
Salaries and wages decreased 6.5% to $153.3 million for the 2024 period compared with $164.0 million for the 2023 period due to lower attendance and labor productivity initiatives, partially offset by higher wage rates. Facility lease expense, which is predominantly fixed in nature, decreased 2.7% to $120.5 million primarily due to theatre closures and lease renegotiations. Utilities and other costs decreased 7.3% to $158.4 million, as many of these costs are variable or semi-variable in nature and were impacted by the decrease in attendance. A decrease in property taxes also contributed to the decline in utilities and other costs.
Current wording
Salaries and wages decreased 3.4% to $244.4 million for the 2024 period compared with $253.0 million for the 2023 period due to lower attendance and the impact of labor productivity initiatives, partially offset by higher wage rates and expanded operating hours. Facility lease expense, which is predominantly fixed in nature, decreased to $184.0 million primarily due to theatre closures and lease renegotiations, partially offset by higher percentage rent. Utilities and other costs decreased 5.2% to $255.7 million, as many of these costs are variable or semi-variable in nature and were impacted by the decrease in attendance. A decrease in property taxes also contributed to the decline in utilities and other costs.
Previous wording
Film rentals and advertising costs were 49.4% of admissions revenue as reported for the 2024 period compared with 50.9% for the 2023 period due to the concentration of box office and mix of films. Concession supplies expense was 21.6% of concessions revenue as reported for the 2024 period compared with 22.0% of concession revenue for the 2023 period. The decrease in the concession supplies rate was primarily driven by the impact of strategic pricing actions to offset inflationary pressures.
Current wording
Film rentals and advertising costs were 50.0% of admissions revenue as reported for the 2024 period compared with 50.7% for the 2023 period due to the overall mix of film releases. Concession supplies expense was 21.9% of concessions revenue as reported for the 2024 period compared with 21.7% for the 2023 period. The increase in the concession supplies rate was primarily driven by inflationary pressures offset by the impact of strategic pricing actions.
Previous wording
Salaries and wages, facility lease expense and utilities and other expenses, as reported, were lower for the 2024 period as a result of favorable exchange rate fluctuations. In constant currency, salaries and wages increased to $51.0 million for the 2024 period primarily driven by wage rate inflation, partially offset by labor productivity initiatives and lower attendance. Facility lease expense increased to $50.4 million in constant currency for the 2024 period primarily due to inflationary increases and the return of certain minimum rent thresholds, partially offset by lower percentage rent. Utilities and other costs increased to $74.3 million in constant currency for the 2024 period due to inflationary pressures and higher utility costs.
Current wording
Salaries and wages, facility lease expense and utilities and other expenses, as reported, were lower for the 2024 period as a result of favorable exchange rate fluctuations. In constant currency, salaries and wages increased to $80.4 million for the 2024 period primarily driven by wage rate inflation, partially offset by labor productivity initiatives and lower attendance. Facility lease expense increased to $81.4 million in constant currency for the 2024 period primarily due to inflationary increases and the return of certain minimum rent thresholds, partially offset by lower percentage rent. Utilities and other costs increased to $120.6 million in constant currency for the 2024 period due to inflationary pressures and higher utility costs.
Previous wording
General and Administrative Expense. General and administrative expense for Holdings increased to $104.6 million for the 2024 period compared with $96.5 million for the 2023 period. General and administrative expense for CUSA increased to $102.7 million for the 2024 period compared with $94.7 million for the 2023 period. The increase for both Holdings and CUSA is primarily due to wages and benefits inflation, as well as higher share-based compensation and related payroll taxes, partially offset by lower professional fees and the favorable impact of exchange rate fluctuations.
Current wording
General and Administrative Expense. General and administrative expense for Holdings increased to $161.0 million for the 2024 period compared with $144.7 million for the 2023 period. General and administrative expense for CUSA increased to $158.2 million for the 2024 period compared with $142.2 million for the 2023 period. The increase for both Holdings and CUSA is primarily due to wages and benefits inflation, as well as higher incentive and share-based compensation and related payroll taxes, partially offset by the favorable impact of exchange rate fluctuations.
Previous wording
Depreciation and Amortization. Depreciation and amortization expense decreased to $99.2 million for the 2024 period compared with $107.7 million for the 2023 period due in part to the impairment of assets during 2023 and the favorable impact of exchange rate fluctuations.
Current wording
Depreciation and Amortization. Depreciation and amortization expense decreased to $148.3 million for the 2024 period compared with $159.6 million for the 2023 period due in part to lower levels of capital expenditures post-pandemic, the impairment of assets during 2023 and the favorable impact of exchange rate fluctuations.
Previous wording
Loss (Gain) on Disposal of Assets and Other. A loss on disposal of assets and other of $2.1 million was recorded for the 2024 period compared with a gain of $2.7 million for the 2023 period. Activity for the 2024 period was primarily related to the removal and disposal of equipment at closed theatres. Activity for the 2023 period was primarily related to the write-off of operating lease obligations for theatres that were closed during the 2023 period.
Current wording
Loss (Gain) on Disposal of Assets and Other. A loss on disposal of assets and other of $2.0 million was recorded for the 2024 period compared with a gain of $8.8 million for the 2023 period. Activity for the 2024 period was primarily related to the removal and disposal of equipment at closed theatres. Activity for the 2023 period was primarily related to the sale of our Ecuador subsidiary in September 2023 and the write-off of operating lease obligations for theatres that were closed during the 2023 period.
Previous wording
Interest Expense. Interest expense for Holdings, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated gains for swap amendments, was $72.3 million during the 2024 period compared with $73.9 million during the 2023 period. The interest expense attributable to CUSA, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated losses for swap amendments, was $60.2 million during the 2024 period compared with $61.8 million during the 2023 period. The decrease in interest expense was primarily due to the redemption of our 8.75% Secured Notes, partially offset by a higher average interest rate on our term loan borrowings. See further discussion at Liquidity and Capital Resources below.
Current wording
Interest Expense. Interest expense for Holdings, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated gains for swap amendments, was $109.0 million during the 2024 period compared with $112.0 million during the 2023 period. The interest expense attributable to CUSA, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated gains for swap amendments, was $90.8 million during the 2024 period compared with $93.9 million during the 2023 period. The decrease in interest expense was primarily due to the redemption of the remaining 8.75% Secured Notes, the extinguishment of the 5.875% Senior Notes, and the amendment and extension of our interest rate swaps, partially offset by a higher average interest rate on our term loan and the impact of the issuance of the 7.00% Senior Notes. See further discussion in Liquidity and Capital Resources below.
Previous wording
Interest Income. Interest income for Holdings was $26.1 million during the 2024 period compared with $24.9 million during the 2023 period. The interest income attributable to CUSA was $19.7 million during the 2024 period compared with $19.3 million during the 2023 period. The increase in interest income reflects higher average cash and cash equivalents balances and higher interest rates earned on those balances.
Current wording
Interest Income. Interest income for Holdings was $40.3 million during the 2024 period compared with $40.2 million during the 2023 period. The interest income attributable to CUSA was $30.8 million during the 2024 period compared with $31.5 million during the 2023 period.
Previous wording
Loss on Debt Amendments and Extinguishments. We recorded a loss on amendment and extinguishment of debt of $2.5 million during the 2024 period related to the amendment of our term loan and the redemption of the remaining 8.75% Secured Notes, including the write-off of unamortized debt issuance costs and original issue discount, and legal and other fees paid. We recorded a loss on amendment and extinguishment of debt of $10.7 million during the 2023 period related to the amendment of our Senior Secured Credit Facilities and the partial redemption of the 8.75% Secured Notes, including the write-off of unamortized debt issuance costs and legal and other fees paid. See Note 7 to the condensed consolidated financial statements for information about our loss on debt amendments and extinguishments.
Current wording
Loss on Debt Amendments and Extinguishments. We recorded a loss on amendments and extinguishments of debt of $5.5 million during the 2024 period related to the amendment of our Senior Secured Credit Facility, the redemption of the remaining 8.75% Secured Notes, and the extinguishment of the 5.875% Senior Notes. We recorded a loss on amendments and extinguishments of debt of $10.7 million during the 2023 period related to the amendment of our Senior Secured Credit Facility and the partial redemption of the 8.75% Secured Notes. See Note 7 to the condensed consolidated financial statements for additional information.
Previous wording
Foreign currency exchange and other related loss. We recorded a foreign currency exchange loss of $4.9 million during the 2024 period compared with a loss of $8.4 million during the 2023 period. Activity for the 2023 period includes a $4.9 million loss associated with Blue Chip Swap transactions. Excluding the impact of the Blue Chip Swap transactions, the loss on foreign exchange is primarily related to currency exchange fluctuations from original transactions dates until settlement. See note 14 to the condensed consolidated financial statements for a discussion of Blue Chip Swap transactions.
Current wording
Foreign currency exchange and other related loss. We recorded a foreign currency exchange loss of $7.9 million during the 2024 period compared with a loss of $19.4 million during the 2023 period. Activity for the 2024 and 2023 period includes losses of $0.9 million and $10.1 million, respectively, associated with Blue Chip Swap transactions. Excluding the impact of Blue Chip Swap transactions, the loss on foreign exchange is primarily related to currency exchange fluctuations from original transaction dates until settlement. See note 14 to the condensed consolidated financial statements for a discussion of Blue Chip Swap transactions.
Previous wording
Equity in Income (Loss) of Affiliates. Equity in income of affiliates of $6.3 million was recorded during the 2024 period compared with equity in loss of affiliates of $0.3 million during the 2023 period driven by higher income earned from our investment in ACJV, LLC during the 2024 period and the absence of a loss from our investment in NCMI, which is now accounted for under the fair value basis of accounting. See Note 8 and Note 9, respectively, to the condensed consolidated financial statements for information about our investment in NCMI and our equity investments.
Current wording
Equity in Income of Affiliates. Equity in income of affiliates of $11.3 million was recorded during the 2024 period compared with $1.2 million during the 2023 period driven by higher income earned from our investment in AC JV, LLC during the 2024 period and the absence of a loss from our investment in NCMI, which is now accounted for under the fair value basis of accounting. See Note 8 and Note 9, respectively, to the condensed consolidated financial statements for information about our investment in NCMI and our equity investments.
Previous wording
Net Gain on Investment in NCMI. We recorded a net gain on our investment in NCMI of $1.2 million during the 2024 period compared with $9.2 million during the 2023 period, primarily related to the mark-to-market adjustment of our investment in NCMI under the fair value basis of accounting. See Note 8 to the condensed consolidated financial statements for information about our investment in NCMI.
Current wording
Net Gain on Investment in NCMI. We recorded a net gain on our investment in NCMI of $12.8 million during the 2024 period compared with $13.9 million during the 2023 period, primarily related to the mark-to-market adjustment of our investment in NCMI under the fair value basis of accounting. See Note 8 to the condensed consolidated financial statements for information about our investment in NCMI.
Previous wording
Income Taxes - Holdings. An income tax benefit of $28.6 million was recorded for the 2024 period compared with income tax expense of $8.4 million for the 2023 period. The effective tax rate was approximately (66.0)% for the 2024 period compared with 6.7% for the 2023 period. During the 2024 period, a deferred tax benefit of $39.5 million was recorded discretely related to the release of valuation allowances in certain foreign jurisdictions. The release of these valuation allowances was the result of the availability of positive evidence related to sustained taxable income in the relevant jurisdictions to support the future realizability of deferred tax assets. This discrete benefit favorably impacted the effective tax rate for the 2024 period, causing the income tax benefit to vary significantly from the tax expense derived by applying the statutory tax rate to the pre-tax income for the period. The effective tax rate for the 2023 period was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in certain foreign jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Current wording
Income Taxes - Holdings. An income tax benefit of $71.3 million was recorded for the 2024 period compared with income tax expense of $29.8 million for the 2023 period. The effective tax rate was approximately (37.6)% for the 2024 period compared with 12.5% for the 2023 period. During the 2024 period, a deferred tax benefit of $116.3 million was recorded discretely related to the release of valuation allowances previously recorded against certain foreign tax credits, other federal deferred tax assets, certain state net operating losses and other state deferred tax assets as well as deferred tax assets in certain foreign jurisdictions. The release of these valuation allowances was the result of the availability of positive evidence related to sustained taxable income in the relevant jurisdictions to support the future realizability of deferred tax assets. This discrete benefit favorably impacted the effective tax rate for the 2024 period, causing the income tax benefit to vary significantly from the tax expense derived by applying the statutory tax rate to the pre-tax income for the period. The effective tax rate for the 2023 period was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in certain foreign jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Previous wording
Income Taxes - CUSA. An income tax benefit of $27.9 million was recorded for the 2024 period compared with income tax expense of $6.8 million for the 2023 period. The effective tax rate was approximately (55.0)% for the 2024 period compared with 5.0% for the 2023 period. During the 2024 period, a deferred tax benefit of $39.5 million was recorded discretely related to the release of valuation allowances in certain foreign jurisdictions. The release of these valuation allowances was the result of the availability of positive evidence related to sustained taxable income in the relevant jurisdictions to support the future realizability of deferred tax assets. This discrete benefit favorably impacted the effective tax rate for the 2024 period, causing the income tax benefit to vary significantly from the tax expense derived by applying the statutory tax rate to the pre-tax income for the period. The effective tax rate for the 2023 period was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in certain foreign jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Current wording
Income Taxes - CUSA. An income tax benefit of $67.6 million was recorded for the 2024 period compared with income tax expense of $24.2 million for the 2023 period. The effective tax rate was approximately (33.7)% for the 2024 period compared with 9.7% for the 2023 period. During the 2024 period, a deferred tax benefit of 112.4 million was recorded discretely related to the release of valuation allowances previously recorded against certain foreign tax credits, other federal deferred tax assets, certain state net operating losses and other state deferred tax assets as well as deferred tax assets in certain foreign jurisdictions. The release of these valuation allowances was the result of the availability of positive evidence related to sustained taxable income in the relevant jurisdictions to support the future realizability of deferred tax assets. This discrete benefit favorably impacted the effective tax rate for the 2024 period, causing the income tax benefit to vary significantly from the tax expense derived by applying the statutory tax rate to the pre-tax income for the period. The effective tax rate for the 2023 period was favorably impacted by the use of certain foreign tax credits for which valuation allowances had been established in prior periods as well as the release of valuation allowances previously recorded against the net deferred tax assets in certain foreign jurisdictions. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.
Previous wording
Cash provided by operating activities was $162.2 million for Holdings and $164.9 million for CUSA for the six months ended June 30, 2024, compared with cash provided by operating activities of $251.1 million for Holdings and $256.0 million for CUSA for the six months ended June 30, 2023. The decrease in cash provided by operating activities was primarily driven by the timing and level of revenue earned during each period partially offset by the timing of payments to vendors for expenses incurred during each period.
Current wording
Cash provided by operating activities was $269.6 million for Holdings and $279.5 million for CUSA for the nine months ended September 30, 2024, compared with cash provided by operating activities of $335.8 million for Holdings and $347.9 million for CUSA for the nine months ended September 30, 2023. The decrease in cash provided by operating activities was primarily driven by the timing and level of revenue earned during each period partially offset by the timing of payments to vendors for expenses incurred during each period.
Previous wording
Investing activities have been principally related to the development and remodel of theatres. New theatre openings and remodels historically have been financed with internally generated cash and by debt financing, including borrowings under our senior secured credit facility. Cash used for investing activities was $46.4 million and $54.6 million for the six months ended June 30, 2024 and 2023, respectively. The decrease in cash used for investing activities was primarily due to the level of capital expenditures during each period.
Current wording
Investing activities have been principally related to the development and remodel of theatres. New theatre openings and remodels historically have been financed with internally generated cash and by debt financing, including borrowings under our senior secured credit facility. Cash used for investing activities was $89.1 million and $74.9 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in cash used for investing activities was primarily due to the proceeds from the sale of our Ecuador subsidiary during the nine months ended September 30, 2023.
Previous wording
Below is a summary of capital expenditures, disaggregated by new and existing theatres, for the six months ended June 30, 2024 and 2023 (in millions):
Current wording
Below is a summary of capital expenditures, disaggregated by new and existing theatres, for the nine months ended September 30, 2024 and 2023 (in millions):
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Previous report — wording carried elsewhere
0.375% per annum of the daily unused portion of the revolving line of credit. The commitment fee rate is a function of the Consolidated Net Senior Secured Leverage Ratio and was 0.25% at June 30, 2024.