Q1’20 Earnings Supplemental Presentation Liquidity and COVID-19 Update
Actions to Enhance Liquidity
NCM's highly variable cost structure allows for significant cost savings during months cinemas are closed.
P&L Actions
Theater Access Fees - variable based on Founding Member theater attendance, reduced to $0 while theaters are closed, represent -34% of
the Company's annual expenses
Affiliate Fees - variable based on theaters being open and generating advertising revenue, represents ~13% of the Company's annual
expenses
Platinum Spot Revenue Share Payments - variable based on theaters being open and generating advertising revenue
Salaries and Wages - temporarily furloughed approximately 1/3 of staff, and temporarily reduced the pay of the remaining employees by up to
50%, which in aggregate reduced wage expense by 50%; temporarily suspended the 401K employee match program
Operating Expenses (1) - suspended non-essential operating expenditures, including marketing, research, employee travel and consulting
services; reduced monthly operating expense burn rate from approx. $9.5 million to approx. $5.0 million, or a reduction of 47%
General and Administrative temporarily reduced cash compensation of the Company's Board of Directors by 20%; halted all other non-
essential expenses
Other Cash Actions (²)
Working Capital - strategically working with our landlords, vendors, and other business partners to manage, defer, and/or abate certain costs
CapExterminated or deferred certain non-essential capital expenditures
Financing Obligations - making principal and interest payments as scheduled
Payroll Tax Expense - tax payment deferral and credits as provided under the CARES act
(1) Represents core non-contractual expenses that excludes theater access fees, affiliate payments and
Platinum Spot revenue share payments.
(2) Details reflect cash-based actions while reported P&L expenses will reflect GAAP accrual-based accounting.
NCM
NATIONAL CINEMEDIAView entire presentation