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Full Year
The increase from a loss of $0.3 million in 2011 to a loss of $1.4 million in the current year is mainly due to the activities of SCENE, CDCP and CSI:
-- SCENE's results in the 2011 period include income relating to a change in accounting estimate for breakage resulting in a program-to-date adjustment to its outstanding points liability as well as the adjustment to SCENE's outstanding points balance due to certain members having their points expired due to inactivity in the program. When compared to the current year period the result is a negative variance of $6.1 million year over year.-- CDCP in the 2011 period includes $2.2 million of start-up costs offset by income of $0.5 million, which when compared to the income of $2.2 million generated in the current year period, results in a positive variance of $3.9 million year over year.-- The results of CSI, formed January 31, 2012 and therefore not included in the prior year comparative, contributed a $0.9 million positive variance year over year.
EBITDA and adjusted EBITDA
The following table represents EBITDA and adjusted EBITDA for the three months and year ended December 31, 2012 as compared to the three months and year ended December 31, 2011 (expressed in thousands of Canadian dollars, except adjusted EBITDA margin):
----------------------------------------------------------------------------EBITDA Fourth Quarter Full Year 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------EBITDA $ 61,864 $ 39,906 55.0% $ 227,547 $ 170,625 33.4%Adjusted EBITDA $ 57,507 $ 40,102 43.4% $ 200,484 $ 173,174 15.8%Adjusted EBITDA margin 19.3% 16.6% 2.7% 18.4% 17.3% 1.1%----------------------------------------------------------------------------
Adjusted EBITDA for the fourth quarter of 2012 increased $17.4 million, or 43.4%, as compared to the prior year period. The increase over the prior year period was primarily due to the record fourth quarter exhibition and concession revenues recorded in the period. The four theatres acquired from AMC in the third quarter of 2012 contributed $0.6 million to adjusted EBITDA in the fourth quarter. Adjusted EBITDA margin, calculated as adjusted EBITDA divided by total revenues, was 19.3%, up 2.7% from 16.6% in the prior year period.
Adjusted EBITDA for the year ended December 31, 2012 increased $27.3 million, or 15.8%, as compared to the prior year period. The increase is primarily due to the higher exhibition and concession revenues due to the record theatre attendance. The impact of the four theatres acquired from AMC had a $0.2 million, or 0.1%, negative impact on adjusted EBITDA in the year-to-date period. Adjusted EBITDA margin, calculated as adjusted EBITDA divided by total revenues, was 18.4%, compared to 17.3% in the prior year period. Excluding the impact of the AMC theatres, adjusted EBITDA margin was 18.7% for 2012.
Cineplex believes its operating and programming expertise, combined with its merchandising, media, marketing, interactive and SCENE loyalty programs will positively and significantly improve the operations of the four theatres acquired from AMC. Cineplex will invest in each of the locations and may add UltraAVX auditoriums, VIP auditoriums or XSCAPE entertainment centres to one or more of the locations.
