National Cinemedia Inc (NCMI) 2020 Q2 法說會逐字稿

Greetings and welcome to the National CineMedia, Inc. Q2 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Ted.

歡迎參加 National CineMedia, Inc. 2020 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想把會議交給東道主特德先生。

Thank you, Laura, and good afternoon.

謝謝你，勞拉，下午好。

Senior Vice President.

資深副總裁。

Thank you, Laura, and good afternoon, everyone. I am joined today by our CEO, Tom Lesinski. I would like to remind our listeners that this conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended.

謝謝勞拉，大家下午好。今天我們的執行長湯姆·萊辛斯基 (Tom Lesinski) 也加入了我的行列。我想提醒我們的聽眾，本次電話會議包含經修訂的 1933 年證券法第 27A 條和經修訂的 1934 年證券交易法第 21E 條含義內的前瞻性陳述。

All statements, including our discussion about the future impacts of COVID-19 other than statements of historical facts communicated during this conference call may constitute forward-looking statements. These forward-looking statements involve risks and uncertainties. Important factors that can cause actual results to differ materially from the company's expectations are disclosed in the risk factors contained in the company's filings with the SEC. All forward-looking statements are expressly qualified in their entirety by such factors.

除本次電話會議期間傳達的歷史事實陳述外，所有陳述（包括我們關於 COVID-19 未來影響的討論）都可能構成前瞻性陳述。這些前瞻性陳述涉及風險和不確定性。本公司向 SEC 提交的文件中包含的風險因素中揭露了可能導致實際結果與公司預期產生重大差異的重要因素。所有前瞻性陳述的整體都明確受到這些因素的限制。

Further, our discussion today includes some non-GAAP measures. In accordance with Regulation G, we have reconciled these amounts back to the closest GAAP basis measurement. These reconciliations can be found at the end of today's earnings release Investor Relations page of our website at ncm.com.

此外，我們今天的討論也包括一些非公認會計原則措施。根據 G 條例，我們已將這些金額調整回最接近的 GAAP 基礎計量。這些調節表可以在我們網站 ncm.com 的今天收益發布投資者關係頁面的末尾找到。

And now I'll turn the call over to Tom.

現在我將把電話轉給湯姆。

Thank you, Ted, and good afternoon, everyone. Welcome to our NCM second quarter earnings call. Before we get started, I would like to again thank everyone within and outside our NCM family for all they're doing during this challenging time. I hope everyone is staying safe and making every effort to keep yourself, your loved ones, your colleagues and your community healthy.

謝謝你，特德，大家下午好。歡迎參加我們的 NCM 第二季財報電話會議。在我們開始之前，我想再次感謝 NCM 大家庭內外的每個人在這個充滿挑戰的時期所做的一切。我希望每個人都保持安全，並盡一切努力保持自己、親人、同事和社區的健康。

Today, I'll be providing a high-level update on what we've been doing to adjust our business in response to the ongoing challenges presented by the COVID-19 pandemic. Ted will then provide more details about our second quarter and plans to continue to navigate these extraordinary and unprecedented times and position the company to hit the ground running once studios begin to release new films and theaters reopen later month. And then as always, we will open the line for your questions.

今天，我將簡要介紹我們為應對 COVID-19 大流行帶來的持續挑戰而調整業務所做的工作。然後，泰德將提供有關我們第二季度的更多詳細信息，併計劃繼續度過這些非凡和前所未有的時期，並讓公司在製片廠開始發行新電影和劇院在下個月重新開放後迅速啟動。然後，像往常一樣，我們將開通您的提問熱線。

After a strong start to the year, no one could have predicted how profoundly the COVID-19 pandemic would impact all our lives. As discussed during our last call when the theaters were forced by local governments to close and film release schedules began to be pushed back, we immediately took steps to build liquidity and cut our operating costs, while at the same time, selling in the advertising marketplace that continued to be very active. While almost all the theaters remain closed throughout the entire second quarter, our sales team continues to work with clients to shift existing commitments to future periods and negotiate new business. I'm very appreciative and proud of all the hard work our team has been doing during the crisis as it has positioned us very well for when theaters begin to reopen.

在經歷了今年的強勁開局之後，沒有人能夠預測 COVID-19 大流行將對我們所有人的生活產生多麼深遠的影響。正如我們上次電話會議中所討論的，當影院被地方政府強制關閉、電影上映時間表開始推遲時，我們立即採取措施建立流動性並削減運營成本，同時在廣告市場上進行銷售這仍然非常活躍。儘管幾乎所有戲院在整個第二季都處於關閉狀態，但我們的銷售團隊將繼續與客戶合作，將現有承諾轉移到未來時期並協商新業務。我非常感謝我們的團隊在危機期間所做的所有辛勤工作，並為此感到自豪，因為這使我們在劇院開始重新開放時處於有利地位。

NCM continues to benefit from our highly variable cost structure and the aggressive steps we took to reduce nonessential costs beginning in late March when the pandemic reached the U.S. We also did not incur any theater access fees or affiliate revenue share cost while theaters remain closed, as these expenses are driven by attendance metrics in active schemes and active screens, which considerably reduced our monthly operating and administrative costs versus pre COVID-19 levels. These significantly lower cost levels, combined with our successful account receivable collection efforts have left us in a very strong liquidity position that should allow us to operate well beyond the negative impact of the COVID-19 pandemic. We currently have a cash balance of $168.7 (sic) [$168.1] million and $13.2 million receivable balance at our operating company, NCM LLC. This strong liquidity position, combined with the reduction of our monthly operating expenses, debt service costs and nominal capital expenditures to $9 million to $9.5 million before any benefit from our digital revenue, provides enough cash to operate for approximately 18 months even if the theaters remain closed. We also currently have $68.5 million of cash in NCM, Inc., the public company, that could fund our current dividend level of $0.07 per share for another 3 years, even with no additional cash distribution from NCM LLC.

NCM 繼續受益於我們高度可變的成本結構，以及我們從3 月下旬疫情蔓延到美國時開始採取的積極措施來減少非必要成本。在影院保持關閉期間，我們也沒有產生任何影院入場費或附屬收入分成成本，因為這些費用是由活動計劃和活動螢幕中的出勤指標驅動的，與 COVID-19 之前的水平相比，這大大降低了我們的每月營運和管理成本。這些顯著降低的成本水平，再加上我們成功的應收帳款催收工作，使我們處於非常強大的流動性狀況，這將使我們能夠遠遠超出 COVID-19 大流行的負面影響。目前，我們的營運公司 NCM LLC 的現金餘額為 168.7 美元（原文如此）[1.681 億美元]，應收帳款餘額為 1,320 萬美元。這種強勁的流動性狀況，再加上我們的每月營運費用、償債成本和名義資本支出在數位收入帶來的任何收益之前減少至900 萬至950 萬美元，即使影院仍在運營，也能提供足夠的現金來運作約18 個月。關閉。目前，我們在上市公司 NCM, Inc. 中還擁有 6,850 萬美元現金，即使 NCM LLC 沒有額外分配現金，也可以為我們目前每股 0.07 美元的股息水準再維持 3 年。

As discussed during our Q1 earnings call, in late March, we implemented a plan that established various cost savings measures, including the temporary furlough of approximately 30% of our staff and reduce pay for the remaining employees up to 50%, which in aggregate reduced our total pension expense by 50%. This, in conjunction with the elimination or delay of nonessential operating costs through April, reduced our core run rate expense by over 50% from $9.5 million per month to $4.7 million per month. It is important to note that this excludes approximately $500,000 to $600,000 per month of net cash benefit from our digital business during Q2. As theaters in our network begin to reopen in anticipation of Tenet launching in September 3, we will continue to adjust our operating cost structure in a disciplined and phased approach to restart our business over the coming weeks.

正如我們在3 月底的第一季財報電話會議上所討論的那樣，我們實施了一項計劃，制定了各種成本節約措施，包括讓約30% 的員工暫時休假，並將剩餘員工的工資降低最多50%，這總共減少了我們的退休金支出總額減少了 50%。再加上 4 月取消或推遲非必要營運成本，我們的核心營運費用減少了 50% 以上，從每月 950 萬美元減少到每月 470 萬美元。值得注意的是，這不包括第二季度我們數位業務每月約 50 萬至 60 萬美元的淨現金收益。隨著我們網路中的戲院開始重新開放，預計《信條》將於9 月3 日上映，我們將繼續以嚴格、分階段的方式調整我們的營運成本結構，以便在未來幾週內重新啟動我們的業務。

We are continuing to evaluate the needs of the business, and our goals remain flexible with our long-term plans and react appropriately as the situation continues to evolve. Until we have a better visibility to the future film release schedule and the related pace of theater reopenings and network attendance levels, many of the measures outlined above will remain in place.

我們正在繼續評估業務需求，我們的目標與我們的長期計劃保持靈活，並隨著情況的不斷發展做出適當的反應。在我們更了解未來的電影上映時間表以及戲院重新開放的相關步伐和網路上座率之前，上述許多措施將繼續實施。

Interestingly, throughout the remainder of 2020, we believe our challenge will be whether or not there'll be enough impressions to support our existing ad commitments as the ad market has been very active, and there's been a reduction of available high-priced TV sports program along with TV production schedules getting delayed. Throughout the pandemic while theaters remain closed, our various sales teams have continued to engage clients and ad agencies to reschedule existing commitments and look and book new business so that ads are running on our network when theaters reopen.

有趣的是，在2020 年剩下的時間裡，我們認為我們面臨的挑戰將是是否有足夠的展示次數來支持我們現有的廣告承諾，因為廣告市場一直非常活躍，而且可用的高價電視體育節目有所減少節目以及電視製作時間表都被推遲。在整個大流行期間，儘管劇院仍然關閉，我們的各個銷售團隊仍繼續與客戶和廣告代理商合作，重新安排現有的承諾，並尋找和預訂新業務，以便在劇院重新開放時廣告可以在我們的網路上投放。

Our national and regional team has been working closely with our clients to adjust their cinema advertising budgets to align with the shifting movie slate to ensure that they will be back up on the big screen in front of our valuable movie audiences as soon as possible this year. Our local team has also been successful in getting clients to put their cinema campaigns on pause, ready to start-up again when movie theaters reopen, and they've also shifted many in-theater commitments to our digital platforms.

我們的國家和地區團隊一直與我們的客戶密切合作，調整他們的影院廣告預算，以適應不斷變化的電影片單，以確保它們今年能夠盡快回到大銀幕上，呈現在我們寶貴的電影觀眾面前。我們的本地團隊也成功地讓客戶暫停了他們的電影宣傳活動，準備在電影院重新開放時重新啟動，他們也將許多影院內的承諾轉移到我們的數位平台上。

While there have been budget cuts across several client categories that have been most impacted by the pandemic, there continues to be an active marketplace as clients make advertising commitments for later this year and 2021. Additionally, fewer professional games and the potential delay of the NFL and college football may force buyers to begin to look for other high-quality premium video platforms, which is a dynamic that we believe will benefit NCM. As I mentioned, it is critical that even though theaters are closed, we want to keep cinema and NCM top of mind with our clients and agencies. We've been very thankful for the support we receive from our clients so far as many have been very flexible and supportive in moving commitments originally planned for Q2 into Q3 and Q4 and into early 2021, especially within our key advertising categories that have not been affected negatively by COVID-19, including streaming companies, e-commerce companies and gaming companies to name a few.

儘管受疫情影響最嚴重的幾個客戶類別的預算被削減，但隨著客戶做出今年晚些時候和 2021 年的廣告承諾，市場仍然活躍。此外，職業比賽減少以及 NFL 比賽可能推遲大學橄欖球可能會迫使買家開始尋找其他高品質的優質視訊平台，我們相信這種動態將使NCM 受益。正如我所提到的，至關重要的是，即使劇院關閉，我們也希望我們的客戶和代理商將電影院和 NCM 放在首位。我們非常感謝客戶的支持，到目前為止，許多客戶都非常靈活和支持將原計劃在第二季度到第三季度和第四季度以及到2021 年初的承諾，特別是在我們尚未實現的關鍵廣告類別中。受到 COVID-19 負面影響的公司包括串流媒體公司、電子商務公司和遊戲公司等。

Based on hundreds of video and other calls with clients, overall interest in cinema advertising remains strong. In fact, as mentioned, a limiting factor for us throughout the remainder of the year is likely to be the level of movie attendance and corresponding number of impressions we can deliver.

根據與客戶進行的數百次影片和其他通話，人們對影院廣告的整體興趣仍然強勁。事實上，如前所述，今年剩餘時間對我們來說的一個限制因素可能是電影上座率和我們可以提供的相應印象數。

Given the momentum we experienced in Q1 and our sales activity over the last few months, we are confident that cinema will continue to be an important part of brand marketing plans going forward. With some large sports and other out-of-home entertainment canceled, and much of the new TV production delayed, cinema will benefit from being one of the few entertainment options with fresh, high-quality programming to draw in audiences. There are many highly anticipated big budget films like Tenet, The Kingsman, The New Mutants, and Wonder Woman 1984 that are currently set for release very soon after theaters are allowed to reopen.

鑑於我們在第一季經歷的勢頭以及過去幾個月的銷售活動，我們相信電影院將繼續成為未來品牌行銷計劃的重要組成部分。隨著一些大型體育賽事和其他戶外娛樂活動的取消，以及大部分新電視節目的製作推遲，電影院將成為為數不多的能夠吸引觀眾的新鮮、高品質節目的娛樂選擇之一。許多備受期待的大製作電影，如《信條》、《王牌特工》、《新變種人》和《神力女超人 1984》，目前都將在戲院重新開幕後不久上映。

Our digital business has continued to bring in revenue by helping advertisers reach movie audiences at home across our NCM digital and OTT offerings. It's notable that digital, which was designed to be a bundled complement to our core onscreen product has continued to generate revenue on its own, and allowed us to redirect some local commitments by shifting those client campaigns to our digital platforms. This will allow us the opportunity to grow our digital revenue year-over-year from 2019 to 2020 despite the pandemic, which is a promising sign. It's also important to note that our Q2 net digital revenue funded approximately 20% of our current lower monthly operating expenses. This highlights the importance of diversifying our media inventory to provide a stronger multi-platform product revenue stream that is not just tied to theater attendance. As such, in addition to the expansion of our digital business, we are continuing to explore out-of-home advertising, corporate-development opportunities that could augment both our core cinema and existing digital platforms.

我們的數位業務透過 NCM 數位和 OTT 產品幫助廣告商吸引家庭電影觀眾，從而持續帶來收入。值得注意的是，數位化旨在成為我們核心螢幕產品的捆綁補充，它本身繼續產生收入，並使我們能夠透過將這些客戶活動轉移到我們的數位平台來重新調整一些本地承諾。儘管發生了疫情，這將使我們有機會在 2019 年至 2020 年期間實現數位收入的逐年增長，這是一個充滿希望的跡象。同樣重要的是要注意，我們第二季的淨數位收入為我們目前較低的每月營運支出提供了約 20% 的資金。這凸顯了我們媒體庫存多元化的重要性，以提供更強大的多平台產品收入流，而不僅僅是與戲院上座率掛鉤。因此，除了擴展我們的數位業務外，我們還在繼續探索戶外廣告和企業發展機會，以增強我們的核心影院和現有數位平台。

Our digital platforms have also continued to help us expand our highly desirable moviegoer consumer database to nearly 150 million data sets, which is on track with our original business plan. As we continue to increase and improve both the quality and quantity of our consumer data, it will help us strengthen our cinema accelerator product and offer the kind of 1:1 targeting that today's advertisers demand.

我們的數位平台也繼續幫助我們將非常理想的電影觀眾消費者資料庫擴展到近 1.5 億個資料集，這與我們最初的商業計劃相符。隨著我們不斷增加和提高消費者數據的品質和數量，它將幫助我們加強我們的電影加速器產品，並提供當今廣告商所需的 1:1 定位。

As we've discussed, this is a critical part of our plan to improve our overall cinema marketing offering and make it even more attractive than it already is. Throughout the remainder of 2020, we will be enhancing our NCM Noovie Trivia platform, including the launch of a new Noovie Trivia app later this summer. We will also continue to expand our cross-selling and data partnerships to further build our digital audience and increase our digital inventory and first-party data. We expect this growth will open monetization opportunities with both advertisers and studios looking to reach the important and highly valuable movie-going audience.

正如我們所討論的，這是我們改善整體影院行銷產品並使其比現有產品更具吸引力的計劃的關鍵部分。在 2020 年剩餘的時間裡，我們將增強我們的 NCM Noovie Trivia 平台，包括在今年夏天晚些時候推出新的 Noovie Trivia 應用程式。我們還將繼續擴大交叉銷售和數據合作夥伴關係，以進一步建立我們的數位受眾並增加我們的數位庫存和第一方數據。我們預計，這種成長將為希望吸引重要且高價值電影觀眾的廣告商和電影公司帶來貨幣化機會。

In addition to all the other sales activities during Q2, our President, Cliff Marks; and Chief Revenue Officer, Scott Felenstein, along with the other of our senior sales management team, have held over 200 virtual back to the movie's video meetings with top executives at the biggest national brands and advertising agencies in the country to talk to them about the state of our industry and the many great films and advertising opportunities like our premium Platinum Spot and lifestyle inventory that they have to look forward to when theaters begin to reopen. The message that we're getting from all these conversations is that our clients understand the value of our medium and that they want to start advertising in cinema again just as soon as movie fans are back in theaters.

除了第二季的所有其他銷售活動外，我們的總裁 Cliff Marks 還負責：首席營收長 Scott Felenstein 與我們的另一位高級銷售管理團隊一起，與國內最大的民族品牌和廣告公司的高管舉行了200 多次虛擬電影視訊會議，與他們討論了我們的行業狀況以及許多精彩的電影和廣告機會，例如我們的優質白金廣告和生活方式庫存，當劇院開始重新開放時，他們必須期待這些。我們從所有這些對話中得到的訊息是，我們的客戶了解我們媒體的價值，並且他們希望在影迷回到戲院後立即再次開始在電影院做廣告。

We've also been aggressively competing in the video upfront marketplace for the 2020, 2021 upfront buying season that's currently in process. Upfront deals are made several months to a year out from a campaign year date, so it is critical team that our national sales team is out in the marketplace actively pursuing these commitments now to position NCM to be able to hit the ground running in the remainder of 2020 and through 2021. TV upfront discussions have slowed in the advertising marketplace overall due to the uncertainty surrounding TV programming schedules and cancellation or delays and other high CPM video offerings that cinema competes directly with like -- live sports, concerts and other event programming. However, this delay in the October through September broadcast calendar upfront marketplace spending will actually be advantageous to us as it will shift budgets to a more cinema-friendly calendar year, especially now that many of the big films moved out of 2020 and are expected to now be released in 2021.

我們也在視訊預付費市場中積極參與目前正在進行的 2020 年和 2021 年預付費購買季。前期交易是在活動年度日期後幾個月到一年內達成的，因此我們的國家銷售團隊現在在市場上積極履行這些承諾至關重要，以使 NCM 能夠在剩餘時間裡取得進展2020 年至2021 年。由於電視節目時間表、取消或延遲以及電影與體育直播、音樂會和其他活動節目直接競爭的其他高CPM 視頻產品的不確定性，整個廣告市場的電視前期討論已經放緩。然而，10 月至9 月播出日曆預付市場支出的這種延遲實際上對我們有利，因為它將把預算轉移到更適合影院觀看的日曆年，特別是現在許多大片都將移出2020 年，預計將在2020 年上映。現在將於 2021 年發布。

Throughout this time, we have also engaged in conversation with several regional theater service about the possibility of joining our NCM network with exhibitor operating cash flows being significantly impacted by theater closures, theater operators are looking for any way they can to increase their future cash flows. Our ability to generate higher advertising revenue per attendee and provide other financial incentives for long-term commitments to join our network looks more attractive than ever to regional theater operators in the current business environment.

在此期間，我們還與幾家地區劇院服務機構就加入我們的NCM 網路的可能性進行了對話，因為影院關閉對影院運營現金流產生了重大影響，劇院運營商正在尋找任何方法來增加未來的現金流。在當前的商業環境下，我們能夠為每位觀眾帶來更高的廣告收入，並為長期承諾加入我們的網路提供其他財務激勵，這對地區劇院營運商來說比以往任何時候都更具吸引力。

Looking ahead, as I mentioned, due to the shift to many big movie titles, the theatrical release schedule for the next 4 quarters is very strong with (inaudible) like: Warner Bros. and Chris Nolan's Tenet; Wonder Woman 1984; this year's big Marvel movie, Black Widow; the new animated movie, Soul, which is the first black-led Pixar feature; the James Bond film, No Time to Die; the remake of Dune; West Side Story; Coming to America 2, closing out the year.

展望未來，正如我所提到的，由於轉向許多大片，未來 4 個季度的院線上映計劃非常強勁，例如（聽不清）：華納兄弟和克里斯諾蘭的《信條》；神力女超人 1984；今年的漫威大片《黑寡婦》；新動畫電影《靈魂》是第一部由黑人主導的皮克斯長片；詹姆斯龐德電影《無暇赴死》； 《沙丘》的翻拍版；西區故事；來到美國2，結束這一年。

2021 looks even stronger now with tremendous box office potential, featuring hugely anticipated films like: Cinderella; Ghostbusters: Afterlife; Disney's Raya and the Last Dragon; Fast &Furious 10; A Quiet Place Part II; Godzilla vs. Kong; Jurassic World: Domination (sic) [Dominion]; Top Gun: Maverick; The Batman; and the sequel to Spider-Man; and Mission: Impossible, to name just a few. Movies are one of the ultimate forms of escape and we all know that, which is one of the reasons that cinema has historically done so well during difficult or recessionary times. And we believe that we'll continue as we emerge from this pandemic.

2021 年看起來更加強勁，擁有巨大的票房潛力，其中包括備受期待的電影，如：灰姑娘；捉鬼敢死隊：來世；迪士尼的《拉雅與最後的龍》；速度與激情10；寂靜之地第二部分；哥吉拉大戰金剛；侏羅紀世界：統治（原文如此）[統治]；壯志凌雲：特立獨行；蝙蝠俠；以及《蜘蛛人》的續集；和《使命：不可能》，僅舉幾例。電影是逃避現實的終極形式之一，我們都知道，這也是電影在歷史上在困難或經濟衰退時期表現出色的原因之一。我們相信，隨著我們擺脫這場大流行，我們將繼續前進。

Our NCM research team regularly pools our exclusive behind-the-scenes panel of movie super fans and those that have already returned to see a movie on the big screen, and over 98% reported a positive experience. For those in the areas of the country where theaters have yet to reopen, the desire to get back to the big screen continues to grow stronger as people tire of watching movies at home or have run out streaming platform series to watch. 94% of respondents say, they miss going to the movies -- to the theaters to watch movies. Most importantly, going to the movies ranks #1 as the top out-of-home activity survey respondents' were most looking forward to during -- to do once government restrictions are lifted.

我們的 NCM 研究團隊定期匯集由電影超級粉絲和那些已經在大銀幕上看過電影的人組成的獨家幕後小組，超過 98% 的人表示獲得了積極的體驗。對於那些影院尚未重新開放的地區的人們來說，隨著人們厭倦了在家看電影或已經用完了串流平台上的連續劇可供觀看，重返大銀幕的願望持續增強。 94%的受訪者表示，他們懷念去看電影──去電影院看電影。最重要的是，在政府限制解除後，受訪者最期待的戶外活動中，看電影排名第一。

Cinema has a long history of resilience and we remain confident that when theaters reopen, the studio starts to release new films that audience levels will begin to build back towards normal levels over the next few quarters. Of the moviegoers, we surveyed, 75% plan to return to theaters either as soon as possible or within 1 to 3 months after theaters reopen, with another 21% planning to return after 4 months or more for a total of 96% of our core demo of movie lovers planning to go back to the cinema soon. There was also more recent news out of a study by UC Davis, which indicates that movie theaters may pose less COVID-19 risk than many other indoor venues as masks are being required and enhanced cleaning procedures are being performed by our theater partners. Theaters are also expected to be safer because people are not facing or talking to each other during a movie and social distancing can be maintained.

電影院有著悠久的恢復歷史，我們仍然相信，當劇院重新開放時，製片廠開始發行新電影，觀眾人數將在未來幾季開始恢復到正常水平。在我們調查的電影觀眾中，75% 的人計劃盡快或在影院重新開放後1 至3 個月內返回影院，另有21% 的人計劃在4 個月或更長時間後返回，總共佔核心人數的96%計劃很快重返電影院的電影愛好者的演示。加州大學戴維斯分校的一項研究也發布了最新消息，該研究表明，由於需要戴口罩，並且我們的劇院合作夥伴正在執行加強的清潔程序，因此電影院造成的COVID-19 風險可能比許多其他室內場所要低。劇院也有望變得更加安全，因為人們在看電影期間不會面對面或互相交談，並且可以保持社交距離。

While there remain uncertainties related to the COVID-19 pandemic, we have positioned our company well, and have a good reason to be optimistic about NCM's future as we have successfully balanced the 2 priorities of maintaining a strong liquidity position, and in sales and operating plan that's very focused on making sure that we hit the ground running on Labor Day weekend with the announced release of Tenet. While not all of our clients will be back to spending at pre-COVID levels, we believe that our efforts to expand and diversify our client base, combined with the delay in sports and other TV-scripted programming, will provide us with a strong client demand over the near to medium term.

儘管與COVID-19 大流行相關的不確定性仍然存在，但我們已經為公司做好了定位，並且有充分的理由對NCM 的未來感到樂觀，因為我們已經成功平衡了保持強勁流動性狀況以及銷售和營運的兩個優先事項該計劃的重點是確保我們在勞動節週末立即發布《信條》。雖然並非所有客戶都會恢復到新冠疫情前的支出水平，但我們相信，我們擴大客戶群並使客戶群多元化的努力，加上體育和其他電視腳本節目的延遲，將為我們提供強大的客戶中短期需求。

Finally, our Board of Directors has left the NCM, Inc. dividend of $0.07 per share, unchanged for the second quarter. It will be paid on August 31 to shareholders of record on August 17. This quarterly dividend will result in a current yield of over 11% based on Friday's closing price of $2.47. After the Q2 2020 dividend payment of $5.5 million, the NCM, Inc. cash balance would allow us to pay dividends for approximately 3 years regardless of any cash being distributed to NCM, Inc.

最後，我們的董事會維持 NCM, Inc. 第二季股利每股 0.07 美元不變。將於 8 月 31 日向 8 月 17 日登記在冊的股東支付。根據週五收盤價 2.47 美元計算，本季股息將導致當前收益率超過 11%。在 2020 年第二季支付 550 萬美元股息後，NCM, Inc. 的現金餘額將允許我們支付約 3 年的股息，無論是否向 NCM, Inc. 分配任何現金。

Before I turn the call over to Ted, I would like to thank everyone on the NCM team for their commitment, support and hard work during this very difficult and unprecedented time. None of what we have accomplished over the last several months would have been possible without the dedication and resilience of our NCM team. I remain thankful for the strength and support of our executive leadership team, our theater-circuit partners, and I want to especially acknowledge how hard it has been for all the people that have been furloughed or that have taken significant pay cuts for now more than 4 months. While there's been -- while it has helped NCM to make it through this crisis and will be well positioned for the future, I look forward to the coming weeks when we can get back to work to deliver on our mission to unite brands with the power of movies and engage movie fans anytime and anywhere. So thank you all, and thank you, Ted, for continuing to hold down the fort admirably, while we have temporarily delayed our CFO search until theaters begin to reopen and the business environment becomes more certain.

在將電話轉給 Ted 之前，我要感謝 NCM 團隊中的每個人在這個非常困難和前所未有的時期所做的承諾、支持和辛勤工作。如果沒有 NCM 團隊的奉獻精神和韌性，我們過去幾個月所取得的一切成就都是不可能實現的。我仍然感謝我們的執行領導團隊、我們的劇院巡迴合作夥伴的力量和支持，我要特別感謝所有暫時休假或大幅減薪的人們所經歷的困難4個月。雖然它已經幫助 NCM 度過了這場危機，並將為未來做好準備，但我期待著未來幾週我們能夠重新投入工作，實現我們將品牌與力量聯合起來的使命隨時隨地與影迷互動。所以，謝謝你們所有人，謝謝你們，特德，你們繼續出色地守住了堡壘，同時我們暫時推遲了首席財務官的搜尋，直到劇院開始重新開放和商業環境變得更加確定。

I'll now turn the call over to you to discuss our financial picture in more detail.

我現在將把電話轉給您，更詳細地討論我們的財務狀況。

Thanks, Tom. As Tom mentioned with theaters closed, we only recorded a small amount of digital revenue during the current quarter. And so I'll focus most of my comments on providing an update on our liquidity position and our monthly operating expense, along with capital expenditures and debt service obligations. Then as always, we will open the call to your questions.

謝謝，湯姆。正如湯姆所提到的，在影院關閉的情況下，我們在本季僅錄得少量數位收入。因此，我的大部分評論將集中在提供我們的流動性狀況和每月營運費用以及資本支出和償債義務的最新資訊。然後，像往常一樣，我們將打開電話詢問您的問題。

The impact of COVID-19 on our second quarter and year-to-date results makes an analysis of our revenue and adjusted OIBDA not meaningful, as it does not represent fairly our ongoing business. Also, our 10-Q was filed this afternoon, and we have provided a supplemental presentation of our Q2 and year-to-date results with comparison to prior periods on our website for your reference.

COVID-19 對我們第二季和年初至今業績的影響使得對我們的收入和調整後的 OIBDA 的分析沒有意義，因為它不能公平地代表我們正在進行的業務。此外，我們的 10-Q 報告已於今天下午提交，我們在我們的網站上提供了第二季度和年初至今業績的補充介紹，並與之前期間進行了比較，供您參考。

For the second quarter, our total revenue was $4 million compared to $110.2 million in Q2 of 2019 due to the temporary closure of almost all the theaters in our network in response to the COVID-19 pandemic. The revenue recognized in the second quarter of 2020 was primarily related to revenue associated with our digital service offerings. That revenue included both sales by our digital group as well as our local sales personnel. In fact, our local sales team was able to convert $1.3 million of onscreen ad business to our digital platform in the quarter.

第二季度，我們的總收入為 400 萬美元，而 2019 年第二季度為 1.102 億美元，原因是我們網路中幾乎所有影院都因應 COVID-19 大流行而暫時關閉。 2020 年第二季確認的收入主要與我們的數位服務產品相關的收入有關。該收入包括我們數位團隊和本地銷售人員的銷售額。事實上，我們的本地銷售團隊在本季將 130 萬美元的螢幕廣告業務轉移到了我們的數位平台。

Due to the absence of any in-theater advertising revenue, total Q2 adjusted OIBDA was negative $12.7 million versus a positive $50.2 million in Q2 of 2019. It is important to note that NCM LLC's access fees, network affiliate payments and platinum revenue share payments are driven by attendance, operating screens and revenue, and therefore, were not incurred while theaters were closed. Additionally, through a disciplined and multiphase approach, once all our initiatives were fully implemented in April, we reduced our core run rate operating expenses by over 50% to $4.7 million per month. Combined with our debt service obligations and nominal capital expenditures, we are averaging a total cash burn rate of approximately $9 million to $9.5 million per month before the benefit of any revenue.

由於沒有任何戲院內廣告收入，第二季調整後的OIBDA 總額為負1,270 萬美元，而2019 年第二季為正5,020 萬美元。值得注意的是，NCM LLC 的接取費、網路附屬付款和白金收入分成付款由上座率、營運螢幕和收入驅動，因此在劇院關閉期間不會產生。此外，透過嚴格的多階段方法，一旦我們的所有措施在 4 月全面實施，我們的核心運行率營運費用就減少了 50% 以上，達到每月 470 萬美元。加上我們的償債義務和名目資本支出，在獲得任何收入之前，我們平均每月總現金消耗率約為 900 萬至 950 萬美元。

As Tom mentioned earlier, with the anticipated release of Tenet on September 3, over the next few weeks, we will begin a phased return of our teams from furlough, which will allow us to have our network fully operational and generating revenue again. We continue to be thoughtful to this phased approach so as to minimize the impact of expenses during this transition.

正如Tom 之前提到的，隨著《信條》預計於9 月3 日發布，在接下來的幾週內，我們的團隊將開始分階段從休假中返回，這將使我們的網路能夠全面運作並再次產生收入。我們將繼續考慮這種分階段的方法，以盡量減少過渡期間費用的影響。

For the 6 months of 2020, total revenue was $68.7 million versus $187.1 million for the first 6 months of 2019. Adjusted OIBDA decreased to $1.7 million from $72.3 million in the first 6 months of 2019, and adjusted OIBDA margin decreased to 2.5% from 38.6% versus the first 6 months of 2019. Again, all driven by the temporary theater closures in response to the COVID-19 pandemic. It is important to note we had great momentum going early in Q1, as demonstrated by the fact that February year-to-date revenue was up 3% over the same period in 2019 before the theater closures began in late March.

2020 年前6 個月的總收入為6870 萬美元，而2019 年前6 個月的總收入為1.871 億美元。調整後的OIBDA 從2019 年前6 個月的7230 萬美元降至170 萬美元，調整後的OIBDA 利潤率從38.6% 降至2.5%與 2019 年前 6 個月相比的百分比。同樣，這一切都是由於為應對 COVID-19 大流行而臨時關閉劇院所致。值得注意的是，我們在第一季初期勢頭強勁，在 3 月底影院開始關閉之前，2 月份迄今的收入比 2019 年同期增長了 3%，這一事實證明了這一點。

For the second quarter, we reported a GAAP diluted loss per share of $0.18 versus an earnings per diluted share of $0.11 in Q2 of 2019. As adjusted to exclude the impairment of long-lived assets and CEO-transition costs, GAAP diluted loss per share would have decreased to $0.17 per diluted share in the second quarter of 2020, while earnings per diluted share for Q2 of 2019 would have remained the same. For the 6 months of 2020, we reported a GAAP diluted loss per share of $0.22 compared to an earnings per diluted share of $0.10 for the first 6 months of 2019.

第二季度，我們報告的GAAP 攤薄每股虧損為0.18 美元，而2019 年第二季度的攤薄每股收益為0.11 美元。經過調整以排除長期資產減值和首席執行官過渡成本，GAAP 攤薄每股虧損2020 年第二季稀釋後每股盈餘將下降至 0.17 美元，而 2019 年第二季稀釋後每股盈餘將維持不變。 2020 年 6 個月，我們報告的 GAAP 攤薄每股虧損為 0.22 美元，而 2019 年前 6 個月的攤薄每股收益為 0.10 美元。

For the first 6 months of 2020, capital expenditures were $5.5 million versus $6.9 million spent in 2019 due to the halt of nonessential capital spending. We now expect total capital expenditures to approximate $11 million in 2020. It is important to note we continue to invest in our sales planning and inventory management platform that is in its testing phase. While we have been very focused on preserving cash while the theaters are closed, this inventory management tool is a critical part of our plan to improve our in-theater advertising product, and we expect to launch the system in Q1 of 2021 as originally planned. Once launched, there will be immediate cost savings and other operating efficiencies that over time will more than offset the capital currently being invested.

由於非必要資本支出的停止，2020 年前 6 個月的資本支出為 550 萬美元，而 2019 年為 690 萬美元。我們現在預計 2020 年的總資本支出約為 1,100 萬美元。值得注意的是，我們將繼續投資於處於測試階段的銷售規劃和庫存管理平台。雖然我們一直非常注重在影院關閉期間保留現金，但該庫存管理工具是我們改進影院內廣告產品計劃的關鍵部分，我們預計將按原計劃於 2021 年第一季推出該系統。一旦啟動，將立即節省成本並提高其他營運效率，隨著時間的推移，這將遠遠抵消當前投資的資本。

In the second quarter and for the first 6 months of 2020, we recorded $0.0 million and $1.4 million, respectively, of integration and other encumbered theater payments primarily from AMC Carmike Theaters versus $5.7 million and $8.1 million, respectively, last year. Because the encumbered theaters were temporarily closed during the second quarter of 2020, no advertising cash flows could have been generated if the theaters were within NCM LLC's networks, and thus, no integration payments were earned during the 3 months ended June 25, 2020.

在 2020 年第二季和前 6 個月，我們分別記錄了主要來自 AMC 卡邁克劇院的整合和其他阻礙劇院付款，而去年分別為 570 萬美元和 810 萬美元。由於受影響的戲院在2020 年第二季暫時關閉，如果這些戲院位於NCM LLC 的網路內，則不會產生廣告現金流，因此，截至2020 年6 月25 日止的三個月內沒有賺取整合付款。

As a reminder, these integration and other encumbered theater payments are added to adjusted OIBDA for debt compliance and partnership cash distribution purposes, but are not included in reported revenue or adjusted OIBDA as they are recorded as a reduction to net intangible assets on the balance sheet.

提醒一下，出於債務合規和合作夥伴現金分配的目的，這些整合和其他預支劇院付款被添加到調整後的OIBDA 中，但不包含在報告收入或調整後的OIBDA 中，因為它們在資產負債表上記錄為無形資產淨值的減少。

Moving on to our balance sheet. Our total debt as outstanding at NCM LLC at the end of Q2 2020 was $1.1 billion versus $925 million at the end of Q2 2019 due primarily to the increase in our revolver balance that was fully drawn in late March when the theaters began to close. Our revolver balance at the end of the second quarter in 2020 was $167 million compared to $27 million at the end of Q2 2019. Our average interest rate on all debt was approximately 4.9% at the end of Q2 compared to 5.8% in Q2 of 2019, including our $265 million floating-rate term-loan bank debt and revolving credit facility that had a rate of approximately 3.6%. Excluding revolver balances, 70% of our total debt outstanding at the end of Q2 2020 at a fixed interest rate.

繼續我們的資產負債表。截至2020 年第二季末，NCM LLC 的未償債務總額為11 億美元，而2019 年第二季末為9.25 億美元，這主要是由於我們的左輪手槍餘額增加，該餘額在3 月底影院開始關閉時已全部提取。 2020 年第二季末我們的循環餘額為1.67 億美元，而2019 年第二季末為2,700 萬美元。第二季末我們所有債務的平均利率約為4.9%，而2019 年第二季末為5.8% ，包括我們 2.65 億美元的浮動利率定期貸款銀行債務和利率約為 3.6% 的循環信貸安排。不包括循環餘額，截至 2020 年第二季末，我們未償債務總額的 70% 採用固定利率。

As mentioned on our Q1 earnings call, in anticipation of the impact of the pandemic and related theater closures on our trailing 4-quarter covenant calculations, we obtained a senior bank facility waiver from our NCM LLC net senior secured and total bank debt leverage covenant through the quarter ended July 1, 2010. The NCM LLC bank debt covenant waiver included a new requirement to maintain a minimum liquidity of $55 million, including cash and availability under our revolver. Also NCM LLC will have new limitations on its ability during the labor period to distribute to founding member theater circuits or NCM, Inc., any of its available cash as defined in the LLC operating agreement.

正如我們在第一季財報電話會議上提到的，考慮到疫情和相關劇院關閉對我們過去4 季度契約計算的影響，我們通過以下方式從NCM LLC 淨高級擔保和總銀行債務槓桿契約中獲得了高級銀行融資豁免：該季度截至 2010 年 7 月 1 日。NCM LLC 銀行債務契約豁免包括一項新要求，要求維持最低 5500 萬美元的流動性，包括我們的左輪手槍下的現金和可用性。此外，NCM LLC 在勞動期間向創始成員劇院院線或 NCM, Inc. 分配 LLC 營運協議中定義的任何可用現金的能力也將受到新的限制。

Looking at our leverage. Total net leverage at NCM LLC as of the end of Q2 2020 was approximately 6x trailing 4-quarter adjusted OIBDA versus 4.2x in Q2 of '19 and a covenant of 6.25x. Our consolidated net senior secured leverage ratio was 4.6x versus 3.1x in the comparable period 2019 and a covenant of 4.5x.

看看我們的槓桿。截至 2020 年第二季末，NCM LLC 的總淨槓桿率約為追蹤 4 季調整後 OIBDA 的 6 倍，而 19 年第二季為 4.2 倍，契約為 6.25 倍。我們的綜合淨優先擔保槓桿率為 4.6 倍，而 2019 年同期為 3.1 倍，契約為 4.5 倍。

As Tom mentioned, we entered the COVID-19 crisis with a strong liquidity position, and we have maintained that strong position to date. At the end of Q2, NCM LLC had a cash balance of $168.1 million and an accounts receivable balance of $25.3 million. NCM, Inc. had a cash and investment balance of $82 million. Subsequent to the end of the second quarter, we paid 90% of our annual tax receivable obligation to our founding members, leaving NCM, Inc. with a current cash balance of $68.5 million. NCM LLC began the second quarter with a cash balance of $132.2 million and ended the second quarter with a cash balance of $168.1 million, as we collected $90 million or 82% of our pre-COVID-19 accounts receivable balance.

正如 Tom 所提到的，我們在進入 COVID-19 危機時擁有強大的流動性頭寸，並且迄今為止我們一直保持著這一強勢地位。截至第二季末，NCM LLC 的現金餘額為 1.681 億美元，應收帳款餘額為 2,530 萬美元。 NCM, Inc. 的現金和投資餘額為 8,200 萬美元。第二季末後，我們向創始成員支付了 90% 的年度應收稅款義務，使 NCM, Inc. 的當前現金餘額為 6,850 萬美元。 NCM LLC 第二季初的現金餘額為 1.322 億美元，第二季末的現金餘額為 1.681 億美元，因為我們收回了 9,000 萬美元，佔 COVID-19 之前應收帳款餘額的 82%。

In summary, at the end of the second quarter, NCM LLC with $168.1 million of cash on hand plus $25.3 million in accounts receivable could fund its average monthly operating expense, nominal capital expenditures and debt service obligations totaling $9 million to $9.5 million for over 18 months.

總之，在第二季末，NCM LLC 手頭現金為1.681 億美元，加上應收帳款2,530 萬美元，可以為其超過18 年的平均每月營運費用、名義資本支出和總計900 萬至950 萬美元的償債義務提供資金。幾個月。

It is also important to note that given the variable cost, high-margin nature of our business, with the operating expense reductions we made, once theaters begin to reopen, NCM LLC can still cover debt service and operating costs with revenue that is approximately 40% of the 2019 total.

同樣重要的是要注意，考慮到我們業務的可變成本、高利潤性質，隨著我們削減營運費用，一旦劇院開始重新開放，NCM LLC 仍然可以用大約40% 的收入來償還債務和營運成本。佔2019年總數的%。

As Tom mentioned, we announced today that our Board of Directors has authorized NCM, Inc.'s regular quarterly cash dividend of $0.07 per share of common stock. The dividend will be paid on August 31, 2020 to stockholders of record on August 17, 2020. At this dividend level, with $68.5 million of cash and short-term investments at NCM, Inc., we currently have enough cash available to cover 3 years of dividends at NCMI with no other cash distributions being received from NCM LLC. You should note that the recent bank waiver I mentioned earlier currently prohibits distributions to its members, including NCM, Inc., and the new limitations remain through the quarter end of July 1, 2021, unless certain financial conditions are met. The company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors consistent with the company's intention to distribute over time substantially all of free cash flow. The nearly 3 years of dividend cushion is considerably longer than what we have historically targeted. We will continue to monitor this dividend cushion level if theaters reopen and we get a better read on what the level of a theater attendance and in-theater advertising revenue will be.

正如 Tom 所提到的，我們今天宣布，我們的董事會已授權 NCM, Inc. 定期派發每股普通股 0.07 美元的季度現金股息。股息將於 2020 年 8 月 31 日支付給 2020 年 8 月 17 日登記在冊的股東。按此股息水平，NCM, Inc. 擁有 6,850 萬美元現金和短期投資，目前我們有足夠的可用現金來支付 3 NCMI 多年的股息，且未從NCM LLC 收到其他現金分配。您應該注意，我之前提到的最近的銀行豁免目前禁止向其成員（包括NCM, Inc.）進行分配，並且新的限制將持續到2021 年7 月1 日季度末，除非滿足某些財務條件。該公司打算在可預見的未來由董事會酌情決定定期支付季度股息，這與公司隨時間分配大部分自由現金流的意圖一致。近三年的股息緩衝比我們歷史上的目標要長得多。如果戲院重新開放，我們將繼續監控股息緩衝水平，並更好地了解戲院上座率和戲院內廣告收入的水平。

As mentioned for the remainder of 2020, our revenue will be primarily dependent on how many theater attendees and related advertising impressions we can deliver. Therefore, as always, the declaration, payment, timing and amount of future dividends payable will be at the full discretion of the Board of Directors who will consider general economic and advertising market conditions, the company's financial conditions, available cash, current and anticipated cash needs and any other factors that the Board of Directors considers relevant. This includes short-term and long-term impact to the company related to COVID-19 pandemic and restrictions under the NCM LLC credit agreement.

正如 2020 年剩餘時間中所提到的，我們的收入將主要取決於我們可以提供多少劇院觀眾和相關廣告印象。因此，與往常一樣，未來應付股利的申報、支付、時間和金額將由董事會全權酌情決定，董事會將考慮總體經濟和廣告市場狀況、公司的財務狀況、可用現金、當前和預期現金需求和董事會認為相關的任何其他因素。這包括與 COVID-19 大流行相關的公司短期和長期影響以及 NCM LLC 信貸協議下的限制。

Finally, consistent with our comments during our Q1 earnings call, we still do not have enough future visibility about the timing of all film releases, related theater openings and network attendance to provide a reliable future revenue and adjusted OIBDA guidance. We will only begin providing guidance when we have access to more reliable information regarding these key market data points.

最後，與我們在第一季財報電話會議上的評論一致，我們仍然沒有足夠的關於所有電影上映時間、相關影院開業和網絡上座率的未來可見性，無法提供可靠的未來收入和調整後的OIBDA指導。只有當我們獲得有關這些關鍵市場數據點的更可靠資訊時，我們才會開始提供指導。

This concludes our prepared remarks, and we'll now open the line for questions. Operator?

我們準備好的演講到此結束，現在我們將開始提問。操作員？

(Operator Instructions) The first question comes from the line of Eric Wold with B. Riley.

（操作員說明） 第一個問題來自 Eric Wold 和 B. Riley 的線路。

A couple of questions. I guess one, you talked about continuing to maintain and build up a healthy pipeline of that commitment while theaters remain closed along with kind of shifting those commitments from prior periods into kind of the upcoming periods. How do you expect that to be handled under an environment of limited impressions when the theaters begin to reopen in terms of how those dollars are allocated between what's going to be a diminished amount of impressions?

有幾個問題。我想，你談到在戲院保持關閉的情況下繼續維持和建立這一承諾的健康管道，並將這些承諾從之前的時期轉移到即將到來的時期。當戲院開始重新開放時，您認為在印像有限的環境下如何處理這些問題，以及如何在印象數量減少的情況下分配這些資金？

Well, it's going to come down to who has commitments and who wants to use them regarding any period in time. Remember, flights have to line up ultimately to when a brand or an agency wants to use the inventory. So the first thing you got to do is marry up timing because not everybody wants to run the minute Tenet starts. Some people do, some people will want to wait. So the first thing we have to do is look at it from a timing point of view. And then we'll allocate it in the most fair way we possibly can across all of our clients. And obviously, we're going to start doing that now that we know that Tenet is at -- what appears to be firm, we're in the process of doing that. And Cliff and his team and the sales planning team are all working furiously on getting that balanced and worked out. And that's going to be an ongoing process week-to-week and month-to-month really for the rest of the year.

好吧，這將取決於誰有承諾以及誰想要在任何時間段內使用它們。請記住，航班最終必須在品牌或代理商想要使用庫存時排隊。所以你要做的第一件事就是結合時機，因為不是每個人都想在《特尼特》開始的那一刻就開始跑步。有些人願意，有些人願意等待。所以我們首先要做的就是從時間的角度來看。然後我們將盡可能以最公平的方式為所有客戶分配資金。顯然，既然我們知道《特尼特》的立場似乎很堅定，我們就要開始這樣做了，我們正在這樣做。克里夫和他的團隊以及銷售規劃團隊都在努力實現這一平衡並解決問題。在今年剩下的時間裡，這將是一個每週、每月持續進行的過程。

Okay. And how does that work kind of with -- new advertisers are coming in, obviously, someone wants to advertise, let's say, in January, February of next year. Are they kind of -- if they come in now, they kind of back of the line in terms of -- to kind of go back through everyone else is kind of in the commitment pool and see if they want to go there first before you kind of open up to new people coming in? Or is that not the way it works?

好的。這是如何運作的——新的廣告商正在進來，顯然，有人想要做廣告，比方說，在明年一月、二月。他們是不是——如果他們現在進來，他們就有點落後——回顧一下其他人，看看他們是否想在你之前先去那裡。是否對新人開放？或者這不是它的工作方式？

Cliff, do you want to answer that question?

克里夫，你想回答這個問題嗎？

Yes, sure. So we'll be actively participating in the upfront, which a lot of people place calendar money for January through December of '21. And we will -- we have a gauge -- our planning group has a gauge of what our current obligation is for people who have committed to us, and we'll have a pretty good estimate based on what we think attendance will be based on how much new money we can take in. So it's a little bit of juggling. But -- and everyone understands that we're going to be transparent and share all the data with them, and we'll do the best we can to maximize every dollar.

是的，當然。因此，我們將積極參與前期工作，許多人為 21 年 1 月至 12 月存入日曆資金。我們將 - 我們有一個衡量標準 - 我們的規劃小組將衡量我們目前對那些向我們做出承諾的人的義務，並且我們將根據我們認為的出勤率得出一個相當好的估計我們可以吸收多少新資金。所以這有點雜耍。但是，每個人都明白，我們將保持透明並與他們共享所有數據，我們將盡最大努力最大化每一美元。

And clearly, it doesn't sound like that's impacting the ability to get new people to commit dollars. Even with that increased competition, they're willing to kind of get in the pool, so to speak.

顯然，這聽起來並沒有影響讓新人投入資金的能力。可以這麼說，即使競爭加劇，他們也願意加入其中。

That's right. That's right. I think I'd like to really shout out the relationship that Cliff and our senior ad sales guys have had with the ad community, in many cases, for 20 to 30 years. And it's at times like this where there is still some uncertainty, but also a lot of potential that the relationships that he and Scott and the other key senior people have built, gives us -- puts us in a really good position compared to other media companies that may not have the same experience level that we have. So the relationships matter and in this particular case, you'll see the benefits of it for NCM.

這是正確的。這是正確的。我想我真的很想大聲說出 Cliff 和我們的高級廣告銷售人員與廣告界的關係，在很多情況下，已經有 20 到 30 年了。有時像這樣，仍然存在一些不確定性，但他和斯科特以及其他關鍵高級人員建立的關係也給我們帶來了很大的潛力——使我們與其他媒體相比處於非常有利的位置可能與我們經驗水平不同的公司。因此，關係很重要，在這種特殊情況下，您將看到它對 NCM 的好處。

Okay. And final question for me. With the -- with kind of the big pool of committed ad dollars out there, and obviously competition for the impressions, how should we think about CPMs and margins given what I think would be, I may be wrong, an inability to kind of squeeze scatter ads into the mix given the level of commitments already there?

好的。對我來說最後一個問題。由於存在大量的承諾廣告資金，而且顯然存在對展示次數的競爭，鑑於我認為（我可能是錯的）無法擠壓，我們應該如何考慮每千次展示費用和利潤率考慮到已有的承諾水平，是否將廣告分散到其中？

It would be really difficult to give you an honest answer, but I'll try to give you a forecast. Having actually, not been in the market with new inventory for 4 months, it's a little difficult forecast what CPMs are going to be. What I will say is that the industry going into Q4, not just the cinema advertising industry, but the media industry overall, is expected to have lower budgets and lower CPMs. I think if you're going to be flat, you're going to be happy. I think across the board, most CPMs are going to be down at least for the next probably quarter or two. Hard to say what's going to happen for the rest of 2021. But I don't know if you want to add anything to that, Cliff, based on your end market sort of experience lately?

給你一個誠實的答案確實很困難，但我會盡力給你一個預測。事實上，由於已經 4 個月沒有進入市場新庫存了，所以預測每千次曝光費用 (CPM) 會是多少有點困難。我要說的是，進入第四季度的行業，不僅僅是電影廣告行業，而是整個媒體行業，預計預算和每千次展示費用都會降低。我想如果你能保持平淡，你就會快樂。我認為，總體而言，大多數每千次展示費用至少在接下來的一兩個季度都會下降。很難說 2021 年剩下的時間會發生什麼。但我不知道 Cliff，根據您最近的終端市場經驗，您是否想對此添加任何內容？

Yes. The one thing I would add is a lot of the business for fourth quarter is already prenegotiated. So CPMs are established. So really, your question is more relevant for '21 than it is for the fourth quarter.

是的。我要補充的一件事是，第四季的許多業務已經預先商定。這樣就建立了CPM。所以實際上，你的問題與 21 年比第四季更相關。

(Operator Instructions) Our next question comes from the line of Anthony DeRosa with AD Productions.

（操作員說明）我們的下一個問題來自 AD Productions 的 Anthony DeRosa。

I just had a real quick question here. Since the theaters are down and your theater experiences are nil, what's the additional revenue resources you guys have been tapping into on the online OTT markets?

我只是有一個非常簡短的問題。由於影院倒閉，你們的影院體驗為零，你們在線上 OTT 市場上利用的額外收入資源是多少？

I'm going to let Cliff answer that first. But let me start by saying we've been building a digital business for over 3 years now. And ironically, the only form of revenue we created on the digital side -- or our company created was monetizing both our own and owned assets as well as rolling them through third parties. So Cliff, you can give a little more color on the digital revenue and where that's coming from and the benefit to our company?

我要讓克里夫先回答這個問題。但首先我要說的是，我們建立數位業務已經三年多了。諷刺的是，我們在數字方面創造的唯一收入形式——或者我們公司創造的收入是將我們自己和擁有的資產貨幣化，以及透過第三方滾動它們。那麼，Cliff，您可以詳細介紹一下數位收入、數位收入的來源以及為我們公司帶來的好處嗎？

Yes. The majority of the digital revenue came to our local sales team who are able to work with their clients to shift money that was committed to us onscreen. And to some of our digital product that could be mobile, we also sell over-the-top impressions for third parties. Our local team did a fantastic job of converting revenue, and that's what 100% of that revenue that Tom talked about is.

是的。大部分數位收入都來自我們當地的銷售團隊，他們能夠與客戶合作，轉移在螢幕上向我們承諾的資金。對於我們的一些可能是行動的數位產品，我們也向第三方出售頂級印象。我們的本地團隊在收入轉換方面做得非常出色，這就是湯姆所說的 100% 收入。

Yes. Well, one last thing to tap off on that. Now that most of the major studios are pushing towards the OTT for releases, are you guys looking at maybe possibly doing some synergies -- synergistic work with like Netflix, Prime or [Sindem] or any of these other streaming networks that are growing by the month?

是的。好吧，這是最後一件事。現在大多數主要工作室都在推動 OTT 發行，你們是否正在考慮進行一些協同工作——與 Netflix、Prime 或 [Sindem] 或任何其他正在增長的串流媒體網絡進行協同工作月？

Yes. So streaming is probably our most important, if not, our biggest category. And we expect -- and I even mentioned this 2 quarters ago, we expect the biggest growth we have is going to come from the streaming players. They love the fact that they can reach millennial and Gen Z moviegoers in a very efficient way. Historically, people like Amazon and Hulu and others have always come to our platform. So we expect, as those industries continue to invest in marketing, that we will benefit more so than even our market share from those types of advertisers.

是的。因此，串流媒體可能是我們最重要的類別，如果不是的話，也是我們最大的類別。我們預計——我甚至在兩個季度前都提到過這一點，我們預計最大的成長將來自串流媒體播放器。他們喜歡這樣一個事實：能夠以非常有效的方式接觸千禧世代和 Z 世代的電影觀眾。從歷史上看，亞馬遜和 Hulu 等人總是來到我們的平台。因此，我們預計，隨著這些行業繼續投資於行銷，我們將從這些類型的廣告商那裡獲得的利益甚至比我們的市場份額還要多。

Ladies and gentlemen, we have reached the end of the question-and-answer session. I would like to turn this call back over to Mr. Tom Lesinski for closing remarks.

女士們、先生們，問答環節已經結束。我想將這通電話轉回給湯姆·萊辛斯基先生做總結發言。

Okay. Thank you. Our NCM leadership team, our Board of Directors and our employees remain deeply committed to position our company to weather this crisis and come out of this pandemic stronger than ever. As of today, our 3 founding members, the largest theater circuits in the U.S., AMC, Cinemark and Rave are planning to reopen their doors and welcome audiences back to the movies beginning later this month. Once that happens and attendance levels begin to reach, and we believe that we're well positioned to deliver on the pillars of our growth strategy that we launched last year, that included record Q4 2019 ad revenue and also generated free cash flow growth, stock price and dividend appreciation for our shareholders that existed prior to the start of the COVID crisis.

好的。謝謝。我們的 NCM 領導團隊、董事會和員工仍然堅定地致力於讓我們的公司渡過這場危機，並比以往任何時候都更強大地走出這場大流行。截至今天，我們的 3 個創始成員、美國最大的影院院線、AMC、Cinemark 和 Rave 計劃從本月晚些時候開始重新開門迎客，歡迎觀眾重返影院。一旦發生這種情況並且出席率開始達到，我們相信我們有能力實現去年推出的增長戰略的支柱，其中包括創紀錄的 2019 年第四季度廣告收入以及產生的自由現金流增長、股票在新冠病毒危機在開始之前，我們股東的價格和股息增值就已存在。

I'd like to close by once again thanking all of my NCM teammates, our Board of Directors, our cinema partners, lenders and other business partners for their support through this difficult time. Film has always been a unique way of sharing stories of humanity, love, justice and change that help bring people together. And I look forward to the day soon when we can all get back together, and go to the movies again. Thank you for joining us on our call, and I hope everyone continues to stay safe and healthy. Thank you.

最後，我想再次感謝我所有的 NCM 團隊成員、我們的董事會、我們的戲院合作夥伴、貸方和其他業務合作夥伴在這段困難時期給予的支持。電影一直是分享人性、愛、正義和變革故事的獨特方式，有助於將人們聚集在一起。我期待著有一天我們都能重聚，再次去看電影。感謝您參加我們的通話，我希望每個人都繼續保持安全和健康。謝謝。

This concludes tonight's conference. You may disconnect your lines at this time. Thank you for your participation. Have a great day.

今晚的會議到此結束。此時您可以斷開線路。感謝您的參與。祝你有美好的一天。