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Cineplex Announces Amendment to Credit Facility

12/30/2021 | 05:31pm EDT

TORONTO, Dec. 30, 2021 /CNW/ - Cineplex Inc. ("Cineplex" or the "Company") (TSX: CGX) announced today that it has entered into a fourth amendment (the "Fourth Amendment") to the seventh amended and restated credit agreement with its lenders. The Fourth Amendment provides for, among other things, the continued suspension of financial covenant testing until the second quarter of 2022 upon certain conditions being met, including maintaining a minimum monthly liquidity threshold. 

"With the Omicron variant spurring new mandated operating restrictions, we felt it was prudent to approach our supportive lenders for the continued suspension of the testing of our financial covenants until the second quarter of 2022," said Ellis Jacob, President and CEO, Cineplex. "The timing of these restrictions was unfortunate as we were approaching our busiest period of the year. While we were not able to realize the full benefits of the film Spider-Man: No Way Home, which had the second biggest domestic opening weekend of all time and the biggest December opening ever, we know the industry is recovering and our guests want to be back in our theatres."

A copy of the Fourth Amendment will be made available under the Company's profile on SEDAR at www.sedar.com.

Caution Regarding Forward-Looking Statements
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.

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, 2020 and the third quarter ended September 30, 2021 (collectively, "MD&A"). Those risks and uncertainties, both general and specific, give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Cineplex cautions readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond Cineplex's control, could cause actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the duration and impact of the COVID-19 pandemic on Cineplex, the movie exhibition industry and the economy in general, as well as Cineplex's response to the COVID-19 pandemic as it relates to the closure of its theatres and 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 customers 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; Cineplex's ability to execute cost-cutting and revenue enhancement initiatives in response to the COVID-19 pandemic; risks generally encountered in the relevant industry, competition, customer, legal, taxation and accounting matters; whether or not Cineworld Group plc will appeal the recent decision of the Ontario Superior Court of Justice awarding Cineplex damages for breach of contract and the potential outcome of any such appeal; whether Cineworld will be able to satisfy its obligation to pay the damages awarded to Cineplex by the Ontario Superior Court of Justice; and diversion of management time on litigation related to the Cineworld transaction.

The foregoing list of factors that may affect future results is not exhaustive. When reviewing Cineplex's forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the "Risks and Uncertainties" section of Cineplex's MD&A.

Cineplex does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable Canadian securities law. Additionally, Cineplex undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Cineplex, its financial or operating results or its securities. All forward-looking statements in this news release are made as of the date hereof and are qualified by these cautionary statements. Additional information, including Cineplex's AIF and MD&A, can be found on SEDAR at www.sedar.com.


About Cineplex
Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of over 170 movie theatres and location-based entertainment venues. In addition to being Canada's largest and most innovative film exhibitor, the company operates Canada's favourite destination for 'Eats & Entertainment' (The Rec Room) and complexes specially designed for teens and families (Playdium). It also operates successful businesses in digital commerce (CineplexStore.com), alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group). Providing even more value for its guests, Cineplex is a joint venture partner in Scene+, Canada's largest entertainment loyalty program.

Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across Canada and the United States. To learn more, visit Cineplex.com.


SOURCE Cineplex

© Canada Newswire, source Canada Newswire English

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Sales 2022 1 455 M 1 139 M 1 139 M
Net income 2022 -33,6 M -26,3 M -26,3 M
Net Debt 2022 658 M 515 M 515 M
P/E ratio 2022 -1 224x
Yield 2022 -
Capitalization 775 M 607 M 607 M
EV / Sales 2022 0,98x
EV / Sales 2023 0,81x
Nbr of Employees 10 000
Free-Float 98,5%
Duration : Period :
Cineplex Inc. Technical Analysis Chart | CGX | CA1724541000 | MarketScreener
Technical analysis trends CINEPLEX INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 6
Last Close Price 12,24 CAD
Average target price 17,75 CAD
Spread / Average Target 45,0%
EPS Revisions
Managers and Directors
Ellis Jacob President, Chief Executive Officer & Director
Gord Nelson Chief Financial Officer
Phyllis N. Yaffe Chairman
Daniel Francis McGrath Executive Vice President
Robert W. Bruce Independent Director
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