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LOYALTY
-- Membership in the SCENE loyalty program surpassed the 4.0 million member mark during the year, increasing by approximately 0.9 million members during 2012 to 4.3 million.-- As part of the Cineplex Tuesdays program launched in 2012, SCENE members get 10% off all ticket prices on Tuesdays across the circuit, which are generally discounted.-- SCENE became the first Canadian loyalty program to win prestigious COLLOQUY Loyalty Awards, winning the award for "Innovation in Loyalty Marketing" with its SCENEtourage initiative, as well as the award for "Loyalty Innovation in Other Industries" for the mobile SCENE card.-- SCENE ran programs with various partners including Cara Foods, Telus, Sirius Satellite Radio, Virgin Mobile, Samsung, Winners, Rogers and Adidas.
During 2012, the board of directors of Cineplex (the "Board") announced a monthly dividend increase to $0.1125 per Share ($1.3500 on an annual basis) up from $0.1075 per Share ($1.2900 on an annual basis) effective with the May 2012 dividend.
On December 31, 2012, Cineplex's convertible debentures matured. At maturity, convertible debentures with a principal amount of $1.1 million were settled in cash (see Section 9, Shares outstanding).
In November, Cineplex was recognized as a national winner as one of Canada's 10 most admired corporate cultures in 2012 by Waterstone Human Capital, in the Enterprise division for companies with revenues in excess of $500 million. During 2011, Cineplex was recognized as a regional winner in the Enterprise division.
OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR
Total revenues
Total revenues for the three months ended December 31, 2012 increased $57.0 million (23.6%) to $298.7 million as compared to the prior year period. Total revenues for the year ended December 31, 2012 increased $93.7 million (9.4%) to $1.1 billion as compared to the prior year. Revenues for the current year periods were positively impacted by the acquisition of the four theatres from AMC during the third quarter of 2012 (revenues of $12.4 million for the three months ended December 31, 2012 and $21.0 million for the year ended December 31, 2012). A discussion of the factors affecting the changes in box office, concession and other revenues for the periods is provided on the following pages.
Box office revenues
The following table highlights the movement in box office revenues, attendance and BPP for the quarter and the full year (in thousands of Canadian dollars, except attendance reported in thousands of patrons, and per patron amounts, unless otherwise noted):
----------------------------------------------------------------------------Box office revenues Fourth Quarter Full Year 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------Box office revenues $170,524 $133,735 27.5% $638,296 $577,348 10.6%Attendance 18,577 15,070 23.3% 71,198 66,059 7.8%Box office revenue per patron $ 9.18 $ 8.87 3.5% $ 8.97 $ 8.74 2.6%BPP excluding premium priced product $ 8.57 $ 8.19 4.6% $ 8.26 $ 8.10 2.0%Canadian industry revenues (i) 18.0% 6.3%Same store box office revenues $160,495 $133,363 20.3% $616,857 $573,501 7.6%Same store attendance 17,573 15,026 17.0% 69,052 65,604 5.3%% Total box from 3D, UltraAVX, VIP & IMAX 29.2% 30.2% -1.0% 30.9% 29.4% 1.5%----------------------------------------------------------------------------(i) The Motion Picture Theatre Associations of Canada ("MPTAC") reported that the Canadian exhibition industry reported a box office revenue increase of 16.7% for the period from September 28, 2012 to December 27, 2012 as compared to the period from September 30, 2011 to December 29, 2011. On a basis consistent with Cineplex's calendar reporting period (October 1 to December 31), the Canadian industry box office revenue increase is estimated to be 18.0%. MPTAC reported that the Canadian exhibition industry reported a box office revenue increase of 5.6% for the period from December 30, 2011 to December 27, 2012 as compared to the period from December 31, 2010 to December 29, 2011. On a basis consistent with Cineplex's calendar reporting period (January 1 to December 31), the Canadian industry box office revenue is estimated to be an increase of 6.3%.--------------------------------------------------------------------------------------------------------------------------------------------------------Box office continuity Fourth Quarter Full Year Box Attendance Box Attendance Office Office----------------------------------------------------------------------------2011 as reported $133,735 15,070 $577,348 66,059Same store attendance change 22,610 2,547 30,149 3,449Impact of same store BPP change 4,522 - 13,208 -New and acquired theatres 10,029 1004 19,502 1,935Disposed and closed theatres (372) (44) (1,911) (245)----------------------------------------------------------------------------2012 as reported $170,524 18,577 $638,296 71,198----------------------------------------------------------------------------Fourth Quarter----------------------------------------------------------------------------Fourth Quarter 2012 Top Fourth Quarter 2011 Top IMAX 3D% Box Cineplex Films IMAX 3D % Box Cineplex Films----------------------------------------------------------------------------1 Skyfall X 15.2% 1 The Twilight Saga: Breaking Dawn 1 9.4%2 The Hobbit: An 2 Mission: Impossible - Unexpected Journey X X 10.6% Ghost Protocol X 6.1%3 The Twilight Saga: 3 Puss in Boots X X 6.0% Breaking Dawn 2 X 8.0% X 5.4% 4 Sherlock Holmes: A4 Wreck-It Ralph Game of Shadows 5.2%5 Hotel Transylvania X 4.7% 5 Immortals X 4.3%----------------------------------------------------------------------------
