Same Theatre Analysis
Cineplex reviews and reports same theatre metrics relating to box office revenues, theatre food service revenues, theatre rent
expense and theatre payroll expense, as these measures are widely used in the theatre exhibition industry as well as other retail
industries.
Same theatre metrics are calculated by removing the results for all theatres that have been opened, acquired, closed or otherwise
disposed of subsequent to the start of the prior year comparative period. For the three months ended June 30, 2022 the impact of
two locations that have been opened or acquired and four locations that have been closed or otherwise disposed of have been
excluded, resulting in 153 theatres being included in the same theatre metrics. For the six months ended June 30, 2022 the impact
of one location that has been opened or acquired and five locations that have been closed or otherwise disposed of have been
excluded, resulting in 153 theatres being included in the same theatre metrics.
Cost of sales percentages
Cineplex reviews and reports cost of sales percentages for its two largest revenue sources, box office revenues and food service
revenues as these measures are widely used in the theatre exhibition industry. These measures are reported as film cost
percentage and concession cost percentage, respectively, and are calculated as follows:
Film cost percentage: Calculated as total film cost expense divided by total box office revenues for the period.
Theatre concession cost percentage: Calculated as total theatre food service costs divided by total theatre food service revenues
for the period.
LBE food cost percentage: Calculated as total LBE food costs divided by total LBE food service revenues for the period.
Lease-related cash saving
Quantified savings negotiated with landlords as a result of the COVID-19 disclosures.
Certain information included in this news release contains forward-looking statements within the meaning of applicable
securities laws. These forward-looking statements include, among others, statements with respect to Cineplex’s objectives, goals
and strategies to achieve those objectives and goals, as well as statements with respect to Cineplex’s beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words “may”, “will”, “could”, “should”, “would”, “suspect”,
“outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective” and “continue” (or the
negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Forward-
looking statements also include, statements pertaining to:
• Cineplex’s outlook, goals, expectations and projected results of operations, including factors and assumptions
underlying Cineplex’s projections regarding the duration and impact of a novel strain of coronavirus
(“COVID-19”) pandemic on Cineplex, the movie exhibition industry and the economy in general, as well as
Cineplex’s response to the pandemic related to the closure or operational restrictions of its theatres and location-
based entertainment (“LBE”) venues, employee reductions and other cost-cutting initiatives and increased
expenses relating to safety measures taken at its facilities to protect the health and well-being of guests and
employees;
• Cineplex’s expectations with respect to liquidity and capital expenditures, including its ability to meet its ongoing
capital, operating and other obligations, and anticipated needs for, and sources of, funds; and
• Cineplex’s ability to execute cost-cutting and revenue enhancement initiatives in response to the COVID-19
pandemic.
The COVID-19 pandemic has had an unprecedented impact on Cineplex, along with the rest of the movie exhibition industry and
other industries in which Cineplex operates, including material decreases in revenues, results of operations and cash flows. The
situation continues to evolve and the social and economic effects are widespread. As an entertainment and media company that
operates spaces where guests gather in close proximity, Cineplex’s business has been significantly impacted by the actions taken
to control the spread of COVID-19. These actions included, among other things, the introduction of vaccine passports or proof
of vaccination mandates, social distancing measures and restrictions including those on capacity. During the second quarter of
2022, as COVID-19 cases declined across the country, restrictions relating to capacity limits, vaccine passports and mask
mandates were lifted in all of the markets in which Cineplex operates, providing clearer visibility for Cineplex’s business and the
return to normalcy. Cineplex is actively monitoring the situation and is adapting its business strategies as the impact of the
COVID-19 pandemic evolves.
By their very nature, forward-looking statements involve inherent risks and uncertainties, including those described in
Cineplex’s Annual Information Form (“AIF”), and MD&A for the year ended December 31, 2021 (“Annual MD&A”) and in