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1 Cineplex Galaxy Income Fund 2006 First Quarter.

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Presentation on theme: "1 Cineplex Galaxy Income Fund 2006 First Quarter."— Presentation transcript:

1 1 Cineplex Galaxy Income Fund 2006 First Quarter

2 2 Cineplex Entertainment Circuit Famous Players Theatres:54 Screens:573 Cineplex Odeon Theatres:51 Screens:491 Galaxy Cinemas Theatres:24 Screens:205

3 3 Famous Players Acquisition - Rationale The leading film exhibitor in Canada Accretive to distributable cash Complementary operations will lead to cost savings Opportunities to increase distributable cash through revenue growth –Increase advertising market share and other income Addition of high quality theatres in metropolitan markets Superior combined management

4 4 Box Office Market Share Market Share of Canadian Box Office Revenues Cineplex Galaxy 32.1% Other 6.9% Cineplex Galaxy AMC 6.3% Famous Players 42.6% Empire 6.0% Landmark 3.1% Guzzo 3.0% Combined After Divestiture Cineplex Entertainment 64.2% Empire 13.6% Other 9.8% Guzzo 3.0% AMC 6.3% Landmark 3.1% Source: A.C. Nielsen EDI data

5 5 Six Top-Tier Brands SilverCity 22 theatres Coliseum 4 theatres Famous Players 25 theatres Cineplex Odeon 51 theatres Galaxy 24 theatres Colossus 3 theatres

6 6 Industry overview

7 7 Canadian Box Office Revenue Consistent Long-Term Box Office Revenue Growth Canadian Recessionary Periods CAGR since 1965: 5.6%

8 8 Industry Box Office Canadian Industry*-8.6%+2.0% Cineplex Entertainment-6.1%+2.3% (same store) Canadian Industry*-8.6%+2.0% Cineplex Entertainment-6.1%+2.3% (same store) 2005Q * Source: Motion Picture Theatre Associations of Canada

9 9 Highest Grossing Films in 2005 Star Wars: Episode III$380 M Harry Potter and Goblet of Fire$244 M War of the Worlds$234 M Wedding Crashers$209 M Charlie and the Chocolate Factory$206 M Star Wars: Episode III$380 M Harry Potter and Goblet of Fire$244 M War of the Worlds$234 M Wedding Crashers$209 M Charlie and the Chocolate Factory$206 M

10 10 Upcoming Films for 2006X-Men May 2006 Cars June 2006 Click June 2006 Superman Returns June 2006 Pirates of the Caribbean 2 July 2006 Happy Feet November 2006 Charlottes Web December 2006 The Santa Clause 3 November 2006 Casino Royale November 2006

11 11 Company overview

12 12 Increasing Revenue per Guest $9.83 $10.27 $11.23 $10.84 $12.28 $12.33 Revenue per Guest

13 13 Significant Other Revenue Contribution $13.4 $17.4 $22.8 $20.9 $44.3 $62.5 Other Revenues ($ millions) 2005 excludes divestitures and includes FP for partial year Pro forma excludes divestitures

14 14 Synergies 1. Reducing overhead costs and adopting best practices –Consolidating two head offices –Staff reductions –Adopting best practices  Enhanced revenues  Operating savings 2. Media sales efficiencies and effectiveness –Creation of Cineplex Media 3. Improved purchasing and merchandising opportunities –Supplier contracts –Merchandising strategies –Concession management Three Core Synergies:

15 15 ProspectusQ1Current Acquisition Synergies Annualized Synergies: ($ millions) General and Administrative$15$15$15 Media559 Operations-56 Total$20$25$30 General and Administrative$15$15$15 Media559 Operations-56 Total$20$25$30

16 16 Looking Into the Future Leverage Over 60 Million Guests Magazine In-Theatre Interactive Media-Web Loyalty Naming Rights

17 17 Marketing

18 18 Growth 1. Other income initiatives –Digital pre-show network –Cineplex Media –Alternative programming 2. Merchandising 3. Theatre openings

19 19 Digital Pre-Show Network Rollout Plan Phase 1: April 1 Launch Toronto Extended Market Area - 21 Locations; 215 Screens Phase 2: Complete Nationwide - Additional 800+ Screens TOTAL 89 theatres & 1020 screens

20 20 Cineplex Media Magazine publishing: –Famous Magazine, Famous Kids, Famous Quebec In-theatre advertising: –Magazine, onscreen, posters, monitors, buildings, naming rights

21 21 Alternative Programming

22 22 Merchandising Concession Per Patron $3.04 $3.44 $3.72 $0.20 $0.39 $0.56

23 23 The Best Partners

24 24 New Theatres for 2006/07 7 Theatres71 Screens BrandLocationScreensOpening Galaxy Milton 8June Cineplex Odeon Brossard 16June GalaxySaskatoon 12July Galaxy Brockville 6July Cineplex Odeon Oshawa 10November Galaxy Collingwood 7December SilverCityBurloak

25 25 Financial highlights

26 26 Annual Total Revenue ($ millions) 2005 excludes divestitures and includes FP for partial year $250.2 $316.4 $330.0 $353.7 $490.3 $740.0 $ ,275 1, Screen Count

27 27 Annual Attendance (millions) 2005 excludes divestitures and includes FP for partial year

28 28 Annual EBITDA ($ millions) EBITDA Margin Adjusted EBITDA Margins – LTM March 2005: CGX20.2% FP 9.0% 2005 EBITDA excludes divestitures and non-recurring/transaction related items and includes FP for partial year

29 29 Total Revenue Q ($ millions) +3.2%

30 30 Q Attendance (millions) +0.9%

31 31 Q Adjusted EBITDA ($ millions) Margin15.4%4.1%11.2% +282%

32 32 Credit Facilities Development facility –Available - $60 million Working capital facility –Available - $50 million Term facility –Drawn - $235 million

33 33 Questions


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