National CineMedia, LLC

CIK:0001527190|SEC Filings

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 27, 2019	Jun. 28, 2018	Jun. 27, 2019	Jun. 28, 2018
Income Statement [Abstract]
REVENUE (including revenue from related parties of $6.5, $8.6, $11.8 and $16.6 respectively)	$ 110.2	$ 113.7	$ 187.1	$ 193.9
OPERATING EXPENSES:
Advertising operating costs	9.9	9.2	17.2	16.2
Network costs	3.4	3.3	6.9	6.8
Theater access fees—founding members (including fees to related parties of $14.5, $21.5, $27.4 and $42.1, respectively)	21.6	21.5	40.7	42.1
Selling and marketing costs	16.2	16.7	31.4	32.7
Administrative and other costs	7.7	8.0	15.2	16.8
Administrative fee—managing member	3.4	4.8	6.6	8.6
Depreciation expense	3.3	3.0	6.6	5.9
Amortization expense	0.0	7.0	0.0	13.6
Amortization of intangibles recorded for network theater screen leases	7.0	0.0	13.9	0.0
Total	72.5	73.5	138.5	142.7
OPERATING INCOME	37.7	40.2	48.6	51.2
NON-OPERATING EXPENSES:
Interest on borrowings	14.2	14.1	28.6	27.9
Interest income	0.0	(0.1)	(0.1)	(0.2)
Loss (gain) on early retirement of debt, net	0.0	1.2	(0.3)	1.2
Other non-operating income	(0.1)	0.0	(0.3)	0.0
Total	14.1	15.2	27.9	28.9
INCOME BEFORE INCOME TAXES	23.6	25.0	20.7	22.3
Income tax expense	0.1	0.0	0.1	0.3
NET INCOME	23.5	25.0	20.6	22.0
COMPREHENSIVE INCOME	$ 23.5	$ 25.0	$ 20.6	$ 22.0

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	Jun. 27, 2019	Jun. 28, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 20.6	$ 22.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	6.6	5.9
Amortization expense	0.0	13.6
Amortization of intangibles recorded for network theater screen leases	13.9	0.0
Non-cash share-based compensation	1.4	2.8
Impairment on investment	0.0	0.4
Amortization of debt issuance costs	1.3	1.3
Gain on early retirement of debt, net	(0.3)	0.0
Write-off of debt issuance costs	0.0	0.8
Other	(0.2)	0.2
Proceeds from disposition of intangible assets by network affiliates	0.5	0.0
Founding member integration and other encumbered theater payments (including payments from related parties of $0.6 in 2019)	10.6	0.0
Changes in operating assets and liabilities:
Receivables, net	25.0	34.9
Accounts payable and accrued expenses	(4.8)	(6.0)
Amounts due to/from founding members and managing member, net	0.5	(0.4)
Deferred revenue	3.4	3.1
Other, net	(2.5)	1.5
Net cash provided by operating activities	76.0	80.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(6.8)	(7.2)
Proceeds from notes receivable - founding members	1.4	0.0
Net cash used in investing activities	(5.4)	(7.2)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility	71.0	106.2
Repayments of revolving credit facility	(71.0)	(88.0)
Repayments of Notes due 2026	(4.6)	270.0
Repayment of term loan facility	(1.4)	(270.0)
Payment of debt issuance costs	0.0	(6.3)
Founding member integration and other encumbered theater payments (including payments from related parties of $11.5 in 2018)	0.0	11.5
Distributions to founding members and managing member	(66.5)	(91.0)
Repurchase of stock for restricted stock tax withholding	(0.8)	(1.6)
Net cash used in financing activities	(73.3)	(69.2)
CHANGE IN CASH AND CASH EQUIVALENTS:	(2.7)	3.7
Cash and cash equivalents at beginning of period	7.2	4.6
Cash and cash equivalents at end of period	4.5	8.3
Supplemental disclosure of non-cash financing and investing activity:
Purchase of an intangible asset with NCM LLC equity	7.6	15.9
Accrued distributions to founding members and managing member	30.0	33.1
Accrued integration and other encumbered theater payments due from founding members (including accrued payments due from related parties of $0.2 and $5.3, respectively)	5.3	5.3
Supplemental disclosure of cash flow information:
Cash paid for interest	27.3	27.0
Cash paid for income taxes, net of refunds	$ 0.2	$ 0.0

CONDENSED BALANCE SHEETS - USD ($) $ in Millions	Jun. 27, 2019	Dec. 27, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 4.5	$ 7.2
Receivables, net of allowance of $6.0 and $6.0, respectively	124.9	149.9
Prepaid administrative fees to managing member	0.5	0.6
Amounts due from founding members, net	3.1	5.8
Current portion of notes receivable - founding members (including receivables from related parties of $2.8 and $4.2, respectively)	4.2	5.6
Prepaid expenses and other current assets	3.9	3.6
Total current assets	141.1	172.7
NON-CURRENT ASSETS:
Property and equipment, net of accumulated depreciation of $66.7 and $62.5, respectively	32.4	33.6
Intangible assets, net of accumulated amortization of $186.2 and $172.7, respectively	669.6	684.5
Other investments	3.2	3.0
Debt issuance costs, net	4.5	5.0
Other assets	23.2	0.7
Total non-current assets	732.9	726.8
TOTAL ASSETS	874.0	899.5
CURRENT LIABILITIES:
Accrued expenses	17.6	21.3
Accrued payroll and related expenses	8.5	10.0
Accounts payable	14.2	16.2
Deferred revenue	10.7	7.3
Short-term debt	2.7	2.7
Other current liabilities	1.3	0.0
Total current liabilities	88.4	115.2
NON-CURRENT LIABILITIES:
Long-term debt, net of debt issuance costs of $6.9 and $7.8, respectively	915.4	920.9
Other liabilities	23.9	4.0
Total non-current liabilities	939.3	924.9
Total liabilities	1,027.7	1,040.1
MEMBERS’ EQUITY/(DEFICIT)	(153.7)	(140.6)
TOTAL LIABILITIES AND EQUITY/(DEFICIT)	874.0	899.5
Founding Members
CURRENT ASSETS:
Prepaid administrative fees to managing member	0.5	0.6
Current portion of notes receivable - founding members (including receivables from related parties of $2.8 and $4.2, respectively)	2.8	4.2
NON-CURRENT ASSETS:
Intangible assets, net of accumulated amortization of $186.2 and $172.7, respectively	644.8	657.6
CURRENT LIABILITIES:
Amounts due to founding members, net	17.9	30.0
Managing Member
CURRENT LIABILITIES:
Amounts due to founding members, net	$ 15.5	$ 27.7