National Cinemedia Inc (NCMI) 2020 Q1 法說會逐字稿

Greetings, and welcome to the National CineMedia, Inc. Q1 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 National CineMedia, Inc. 2020 年第一季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Mr. Ted Watson, Senior Vice President, Finance. Please go ahead, sir.

現在我想將會議交給東道主財務高級副總裁泰德·沃森先生。請繼續，先生。

Thank you, Jerry. Good afternoon, everyone. I'm 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 Exchange Act of 1934 as amended. 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.

謝謝你，傑瑞。大家下午好。今天我們的執行長 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。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 or on the 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。這些調節表可以在今天的收益報告末尾或我們網站 ncm.com 的投資者關係頁面上找到。

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, and welcome to our first quarter earnings call. Before we get started, I'd like to thank everyone within and outside our NCM family for all they are doing to help us to get through this challenging time. I hope everyone is staying safe and making every effort to keep you and your loved ones healthy.

謝謝特德，大家下午好，歡迎參加我們的第一季財報電話會議。在開始之前，我要感謝 NCM 大家庭內外的每個人為幫助我們度過這段充滿挑戰的時期所做的一切。我希望每個人都保持安全，並盡一切努力保持您和您所愛的人的健康。

Today, I'll be sharing some high-level insights regarding our Q1 performance. And more importantly, I'll provide details of what we have done to adjust our business focus and our operating cost and financial structure in response to the challenges presented by the COVID-19 pandemic. During this unprecedented time, our primary focus has been to maintain liquidity by operating as efficiently as possible to position our company to get back to business as soon as possible as the country begins to normalize. Ted will then provide more details about our Q1 results and the financial impact of our operating and financial plan as we navigate these extraordinary and unprecedented times. And then as always, we'll open up the line for your questions.

今天，我將分享有關我們第一季業績的一些高級見解。更重要的是，我將詳細介紹我們為應對 COVID-19 大流行帶來的挑戰而調整業務重點、營運成本和財務結構所做的工作。在這個前所未有的時期，我們的首要重點是透過盡可能高效地運作來維持流動性，以使我們的公司能夠在國家開始正常化後儘快恢復業務。然後，泰德將提供有關我們第一季業績以及我們的營運和財務計劃在我們度過這個非同尋常和前所未有的時代時的財務影響的更多詳細資訊。然後，像往常一樣，我們將開通您的提問熱線。

It goes without saying that the world has changed since we had our Investor Day in New York on March 4. As with almost all businesses, the COVID-19 pandemic has disrupted our industry in ways that were not even imaginable 2 short months ago. After ending 2019 with record national advertising revenue performance and the highest fourth quarter ad revenue in our company's history, we started 2020 with great momentum. February year-to-date revenue was up 3% versus the same period in 2019. Then in March, the spread of the COVID-19 virus in the U.S. forced theaters and all other nonessential businesses to close.

不用說，自 3 月 4 日我們在紐約舉辦投資者日以來，世界已經發生了變化。與幾乎所有企業一樣，COVID-19 大流行以 2 個月前還無法想像的方式擾亂了我們的行業。在以創紀錄的全國廣告收入業績和公司歷史上最高的第四季度廣告收入結束 2019 年後，我們以強勁的勢頭開始了 2020 年。 2 月份迄今的收入與 2019 年同期相比增長了 3%。然後在 3 月份，COVID-19 病毒在美國的傳播迫使劇院和所有其他非必要企業關閉。

While our in-theater business was forced to shut down, our digital advertising business continues to operate, and there's been significant work for our sales and operational teams as agencies and brands look to move their near-term NCM ad commitments to flights later in the year. Brands are also actively looking for other sources of premium video GRPs to market their products after the cancellation or postponement of all professional sports and the huge media events such as the NCAA Final Four tournament and the Summer Olympics.

雖然我們的影院內業務被迫關閉，但我們的數位廣告業務仍在繼續運營，而且我們的銷售和營運團隊做了大量工作，因為代理商和品牌希望將其近期NCM 廣告承諾轉移到稍後的航班上。年。在所有職業運動賽事以及 NCAA 四強賽和夏季奧運會等大型媒體活動取消或推遲後，各品牌也在積極尋找其他優質影片 GRP 來源來行銷其產品。

While some ad commitments will be canceled because of lower demand for their products, the absence of professional sports and these other big sporting events this year will require the reallocation of billions of ad dollars to other video programming and to media platforms. As we compete aggressively in the video ad marketplace, particularly against high-CPM sports programming, it's critical that our sales, marketing and other NCM groups that support the sales process are actively competing in the advertising marketplace. Our sales teams have also been participating in the early stages of the 2020-2021 upfront selling process in addition to aggressively working to collect the over $100 million of outstanding accounts receivable that were on our books in mid-March.

雖然由於產品需求下降，一些廣告承諾將被取消，但今年職業運動和其他大型體育賽事的缺席將需要將數十億美元的廣告資金重新分配給其他視訊節目和媒體平台。由於我們在影片廣告市場上競爭激烈，特別是針對高每千次展示費用 (CPM) 的體育節目，因此我們的銷售、行銷和其他支援銷售流程的 NCM 團隊在廣告市場上積極競爭至關重要。除了積極努力收回 3 月中旬帳簿上超過 1 億美元的未清應收帳款外，我們的銷售團隊還一直參與 2020-2021 年預售流程的早期階段。

While we continue to aggressively compete in the video advertising marketplace, we are also working very hard to balance that business necessity with the need to reduce operating costs and maintain a strong liquidity position. While we've had to make some of the most difficult cost-cutting decisions of my career, we believe that the plan we have created has balanced these 2 priorities so that NCM will hit the ground running when theaters reopen.

在我們繼續在影片廣告市場積極競爭的同時，我們也非常努力地平衡業務必要性與降低營運成本和維持強大的流動性狀況的需要。雖然我們必須做出我職業生涯中一些最困難的成本削減決定，但我們相信我們制定的計劃已經平衡了這兩個優先事項，以便 NCM 在劇院重新開放時能夠迅速啟動。

Fortunately, given our current cash and investment balance of $169 million at NCM LLC and $83 million at NCM, Inc., respectively, and changes we've made to our highly variable operating cost structure, we are very well positioned to succeed once the cinema business recovers in the second half of the year.

幸運的是，考慮到我們目前NCM LLC 的現金和投資餘額分別為1.69 億美元，NCM, Inc. 的現金和投資餘額分別為8300 萬美元，以及我們對高度可變的營運成本結構所做的改變，一旦電影院開業，我們就完全有能力取得成功。下半年業務開始復甦。

Over the medium term, we also would be able to shift some of our high-CPM premium video advertising dollars to NCM. As professional sports will need some time to get the athletes ready to play again and new scripted TV seasons will be delayed due to production shutdowns, cinema may very well be one of the few high-quality entertainment programming sectors with fresh content in the marketplace. There are many other new feature films sitting in the can right now, ready to release in the theaters after a short marketing period once state and local governments lift stay-at-home orders and restrictions on the cinema industry and consumers feel comfortable returning to theaters.

從中期來看，我們也可以將部分高每千次曝光費用的優質影片廣告收入轉移到 NCM。由於職業運動需要一些時間讓運動員為再次比賽做好準備，並且新的劇本電視季將因製作停工而推遲，電影很可能是市場上為數不多的擁有新鮮內容的高品質娛樂節目行業之一。目前還有許多其他新故事片正在醞釀之中，一旦州和地方政府取消居家令和對電影業的限制，並且消費者放心返回影院，它們就可以在短暫的營銷期後在影院上映。 。

I want to assure you that we are doing everything that we can to make sure there are ads playing on movie screens when theaters reopen. In the meantime, other than a small amount of digital revenue we continue to recognize, we are planning on no national, regional or local in-theater advertising until theaters reopen.

我想向您保證，我們正在盡一切努力確保劇院重新開放時電影螢幕上播放廣告。同時，除了我們繼續確認的少量數位收入外，我們計劃在劇院重新開放之前不投放任何國家、地區或地方的影院內廣告。

Fortunately, movies have helped people get through tough times for over a century as they are always the ultimate form of escapism. That's one of the reasons that cinema has historically done so well during recessionary times.

幸運的是，一個多世紀以來，電影一直幫助人們度過艱難時期，因為它們始終是逃避現實的最終形式。這就是電影在歷史上在經濟衰退時表現出色的原因之一。

We are also encouraged by the White House's guidelines on reopening the economy, which include movie theaters as one of the first businesses that may open under Phase 1 of these guidelines, which has already been implemented in a few states, including Georgia and Texas. Given the reopening timing and cinema's history of resilience in bad times, combined with the unprecedented consumer cabin fever that is building, especially with the core younger cinema audience demographic, we are confident that once theaters reopen and the studios start to release new films, audience levels will again begin to build.

我們也對白宮關於重新開放經濟的指導方針感到鼓舞，其中電影院是根據這些指導方針第一階段可能開放的首批企業之一，該指導方針已經在包括喬治亞州和德克薩斯州在內的一些州實施。考慮到重新開放的時機和電影院在困難時期的恢復能力的歷史，再加上正在形成的前所未有的消費者艙熱，特別是年輕的核心觀眾群體，我們相信，一旦劇院重新開放並且製片廠開始發行新電影，觀眾水準將再次開始建立。

In fact, our internal NCM research team regularly polls movie fans through our exclusive behind-the-scenes panel, a community of 5,000 movie super fans that allows us to gain a deep understanding of movie audiences' preferences and motivations. In a recent survey, movie fans told us that while streaming is helping them get their movie fix at home for the moment, nothing can replace the communal out-of-home experience that the cinema provides.

事實上，我們內部的 NCM 研究團隊定期透過我們獨家的幕後小組對影迷進行民意調查，這個由 5,000 名電影超級粉絲組成的社群使我們能夠深入了解電影觀眾的喜好和動機。在最近的一項調查中，影迷告訴我們，雖然串流媒體目前可以幫助他們在家中觀看電影，但沒有什麼可以取代電影院提供的公共戶外體驗。

As I mentioned, we're off to a strong start in 2020 until mid-March of Q1 when the COVID-19 pandemic began to negatively impact theater attendance and then resulted in a complete shutdown of theaters. Since then, we have only recorded a modest amount of digital revenue due to our inability to deliver in-theater advertising impressions. Ted will discuss the impact that this has had on our overall Q1 results in more detail later.

正如我所提到的，我們在 2020 年有一個良好的開局，直到第一季 3 月中旬，當時 COVID-19 大流行開始對劇院上座率產生負面影響，然後導致劇院完全關閉。從那時起，由於我們無法提供戲院內的廣告印象，我們只獲得了少量的數位收入。泰德稍後將更詳細地討論這對我們第一季整體業績的影響。

Some of the pre-COVID-19 momentum was related to our ability to bring on several new clients in key categories, including health and fitness, entertainment, financial products and services, telecom, apparel and consumer products. Interestingly, as we've been working with [8] clients after COVID-19 hit, we've had discussions with several clients and businesses that have not historically been big cinema advertisers that have done well during the pandemic such as health care, pharma and online retail. We are hopeful that campaigns for these new clients will run after the theaters reopen.

COVID-19 之前的一些勢頭與我們在關鍵類別（包括健康和健身、娛樂、金融產品和服務、電信、服裝和消費品）引入多個新客戶的能力有關。有趣的是，在COVID-19 爆發後，我們一直在與[8] 個客戶合作，我們與一些歷史上並非大型電影廣告商但在大流行期間表現良好的客戶和企業進行了討論，例如醫療保健、製藥等及網路零售。我們希望在劇院重新開放後能夠為這些新客戶開展活動。

Given the Q1 momentum we experienced and the sales activity even after theaters were closed, we are confident that when the theaters reopen with some of the only fresh, high-quality programming available, our business will begin to build quickly and thrive.

考慮到我們在第一季經歷的勢頭以及即使在劇院關閉後的銷售活動，我們相信，當劇院重新開放並提供一些唯一的新鮮、高品質節目時，我們的業務將開始快速發展並蓬勃發展。

As I mentioned, our sales team is also in the middle of preparing for the 2020-2021 upfront season that's in process. So far, the upfront momentum has been good as our national sales team is continuing to have many discussions with our clients to plan for the years ahead -- or for the year ahead. We are watching the TV upfront process closely as there have been some pressure to shift the upfront annual TV commitments from the historical October start of the broadcast year to a calendar year format as TV programming production schedules for the fall season have been delayed.

正如我所提到的，我們的銷售團隊也正在為正在進行的 2020-2021 年前期季節做準備。到目前為止，前期勢頭一直很好，因為我們的國家銷售團隊正在繼續與客戶進行多次討論，以規劃未來幾年或未來一年的計劃。我們正在密切關注電視前期流程，因為秋季電視節目製作時間表已被推遲，因此存在一些壓力，需要將前期年度電視承諾從歷史性的十月開始的廣播年轉變為日曆年格式。

This may have the potential to benefit us as cinema will likely be first to market with fresh Q4 programming, and we may be able to shift a few brands that would have otherwise bought TV. It may also allow us to simplify our upfront sales pitch with many clients that have historically purchased upfront on a broadcaster basis and then scatter on a calendar year basis.

這可能會讓我們受益，因為電影院可能會率先推出第四季度的新節目，我們也許能夠轉移一些本來會購買電視的品牌。它還可以讓我們簡化對許多客戶的前期銷售宣傳，這些客戶歷來是在廣播公司的基礎上預先購買，然後按日曆年分散的。

During the temporary theater closures, our local sales team has been working very hard, keeping on-screen commitments in place for later in the year. In many cases, they've been able to save the existing commitment and even bring in new revenue by moving local ad campaigns from on-screen to our digital platforms. That is enabling local businesses to continue to engage online with our valuable movie audience at home across our movie trivia games and our other Noovie digital products. Although digital is still a relatively small part of our business, the revenue we're continuing to generate in Q2 through our digital business will fund nearly 20% of our current lower monthly operating cost structure.

在劇院暫時關閉期間，我們當地的銷售團隊一直在努力工作，保持今年稍後的銀幕承諾。在許多情況下，他們能夠透過將本地廣告活動從螢幕轉移到我們的數位平台來保留現有的承諾，甚至帶來新的收入。這使得本地企業能夠繼續透過我們的電影問答遊戲和其他 Noovie 數位產品與我們寶貴的國內電影觀眾進行線上互動。儘管數位業務在我們業務中仍佔相對較小的一部分，但我們在第二季度透過數位業務繼續產生的收入將為我們當前較低的每月營運成本結構提供近 20% 的資金。

As you can see, all our efforts right now are focused on making sure that we hit the ground running in the second half of the year. As almost all major films have moved out of the Q2 due to the COVID-19, the theatrical release schedule for the second half of the year is now packed with notable titles. Starting off in July 17 with Warner Bros. Christopher Nolan-directed Tenet, followed throughout Q3 and Q4 by Disney's live-action Mulan; Wonder Woman 1984; thrillers like A Quiet Place Part II, Venom 2 and Halloween Kills; 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; an exciting remake of Dune; and closing out the year with a long animated Top Gun: Maverick.

正如您所看到的，我們現在所有的努力都集中在確保我們在下半年取得進展。由於 COVID-19 的影響，幾乎所有主要電影都已退出第二季度，因此今年下半年的院線上映時間表現在擠滿了著名影片。華納兄弟克里斯多福諾蘭執導的《信條》於 7 月 17 日上映，隨後第三季迪士尼真人版《花木蘭》上映；神力女超人 1984；驚悚片，如《噤界2》、《猛毒 2》和《萬聖節殺戮》；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》；令人興奮的《沙丘》翻拍版；並以長篇動畫《壯志凌雲：特立獨行》為這一年畫下句點。

Interestingly, as no film has ever had July to themselves, while overall market attendance will likely be lower, the lack of competition among films may lead to better-than-expected openings for whatever films are in the marketplace. Also, as the timing of theater reopenings becomes more clear and attendance levels back -- begins to come back, it's likely that more films will be playing in the normally slower periods of September and October and early November as well as the holiday period -- as the holiday periods get overcrowded.

有趣的是，由於沒有哪部電影在七月獨樹一幟，雖然整體市場上座率可能會較低，但電影之間缺乏競爭可能會導致市場上任何電影的開畫都比預期好。此外，隨著影院重新開放的時間變得更加明確，上座率開始回升，更多的電影可能會在通常較慢的九月、十月、十一月初以及假期期間上映。隨著假期變得人滿為患。

Delayed school and college openings this fall could also contribute to positive attendance during these normally slower moviegoing time periods. Early 2021 could also benefit as some films may get moved to Q1 or, if there's a strong carryover from films, from Q4.

今年秋季學校和大學開學的延遲也可能有助於在這些通常較慢的觀影時間段提高出席率。 2021 年初也可能受益，因為一些電影可能會移至第一季度，或者如果電影有強勁的遺留影響，則從第四季度移至。

As I mentioned, we've been working diligently and proactively to increase our liquidity and operate more efficiently. When it was clear in mid-March that COVID-19 would have a near-term impact on our business, we moved quickly to begin to reduce our operating costs and aggressively collect accounts receivable. Fortunately, much of the company's cost structure is variable. Expenses such as theater access fees paid to the founding member circuits, network affiliate fees and platinum spot revenue share payments are predominantly driven by theaters being open and attendance and ad revenue being generated, and therefore, they will be eliminated entirely while the theaters remain closed and will be significantly reduced after theaters open as they build back their attendance levels.

正如我所提到的，我們一直在努力、積極主動地工作，以增加我們的流動性並提高營運效率。 3 月中旬，當我們明確知道 COVID-19 將對我們的業務產生短期影響時，我們迅速採取行動，開始降低營運成本並積極回收應收帳款。幸運的是，公司的大部分成本結構都是可變的。支付給創始成員院線的影院入場費、網路附屬費和白金現貨收入分成等費用主要是由影院開放以及產生的上座率和廣告收入驅動的，因此，在影院關閉期間，這些費用將完全消除劇院開幕後，隨著觀眾人數的恢復，觀眾人數將大幅減少。

In mid-March, even before the theaters were ordered to close, we began to reduce our operating expenses by implementing a comprehensive series of temporary cost-saving measures to preserve cash during this time, including: one, a hiring and personnel expense freeze that was instituted 2 weeks prior to the cinema closures; two, the suspension of all nonessential operating expenses; three, the termination or deferral of nonessential capital expenditures; four, the furlough of approximately 1/3 of our staff; five, a salary reduction of up to 50% for the 2/3 of our employees that remain, which, in aggregate, reduced wage expenses by 50% versus our run rate in February before the crisis began; six, reduced cash compensation of the company's Board of Directors by 20%; and seven, suspension of the company's 401(k) employee match program.

3 月中旬，甚至在影院被勒令關閉之前，我們就開始透過實施一系列全面的臨時成本節約措施來減少營運支出，以在這段時間內保留現金，其中包括：一、凍結招聘和人事費用，在電影院關閉前兩週制定；二、暫停所有非必要的營運開支；三、終止或延後非必要資本支出；四、我們約1/3員工的休假；第五，對剩下的 2/3 員工進行最高 50% 的減薪，與危機開始前 2 月份的運作率相比，總體而言，薪資支出減少了 50%；六、公司董事會現金報酬減少20%；七、暫停公司的 401(k) 員工配對計畫。

We also began to work strategically with our office-based landlords, vendors and other business partners to defer payments or abate certain costs altogether. Beginning in mid-March, we tightened the process for the payment of all major expenses which, among other things, require CEO approval for all outgoing payments. Overall, this substantial and very difficult series of decisions has reduced our monthly core expense run rate, excluding our variable operating expenses, by nearly 50%.

我們也開始與辦公室業主、供應商和其他業務合作夥伴進行策略合作，以推遲付款或完全降低某些成本。從 3 月中旬開始，我們收緊了所有主要費用的支付流程，其中包括所有支出都需要執行長的批准。總體而言，這一系列重大且非常困難的決策使我們每月的核心費用運行率（不包括可變營運費用）降低了近 50%。

In addition to reducing our use of cash to operate our business, we have also taken significant steps to build our cash balances. In mid-March, we drew down an additional $110 million from our revolving bank loan, which represented nearly all of our availability on that facility. And as mentioned, our sales and operating teams have been very focused on the collection of outstanding accounts receivable.

除了減少業務運營中現金的使用外，我們還採取了重大措施來建立現金餘額。 3 月中旬，我們從循環銀行貸款中額外提取了 1.1 億美元，這幾乎代表了我們可用的該貸款的全部資金。如前所述，我們的銷售和營運團隊非常注重未償應收帳款的催收。

I am pleased to report that since the end of Q1, we've been able to collect $66.7 million of accounts receivable. Between the temporary operating cash reductions we've made, the $169 million of NCM LLC current cash balance and our current accounts receivable balance of $47 million, we believe we have sufficient liquidity to sustain our operations for the next 18 months without any material in-theater advertising revenue.

我很高興地報告，自第一季末以來，我們已經收回了 6,670 萬美元的應收帳款。在我們臨時削減營運現金之後，NCM LLC 的當前現金餘額為1.69 億美元，而我們的當前應收帳款餘額為4700 萬美元，我們相信我們有足夠的流動性來維持未來18 個月的運營，而不會出現任何重大損失。劇院廣告收入。

Our plan during this crisis not only provides significant cushion to weather the theater closure and recovery period, it helps us maintain and possibly even gain video advertising market share when the economy normalizes. All of these liquidity-sustaining measures we have taken have also received the support of our lenders and have allowed us to finalize a key amendment to our bank covenants. On April 30, we amended the NCM LLC senior secured credit agreement dated June 20, 2018, to allow for the waiver of the financial leverage covenants for the quarter ending June 25, 2020, through the quarter ending July 1, 2021, provided that NCM LLC maintains a minimum cash liquidity balance.

我們在這場危機期間的計劃不僅為度過影院關閉和恢復期提供了重要的緩衝，還幫助我們在經濟正常化時保持甚至可能獲得視頻廣告市場份額。我們採取的所有這些流動性維持措施也得到了貸款機構的支持，並使我們能夠最終確定銀行契約的關鍵修訂。 4 月30 日，我們修訂了日期為2018 年6 月20 日的NCM LLC 高級擔保信貸協議，允許豁免截至2020 年6 月25 日的季度至截至2021 年7 月1 日的季度的財務槓桿契約，前提是NCM LLC 維持最低現金流動性餘額。

NCM will also not be permitted to distribute its currently available cash to NCM, Inc. and the other NCM LLC members during the waiver period, unless certain requirements are met. Ted will get into more detail on this in a moment. This waiver will allow us plenty of time to return to our pre-COVID-19 covenant structure as our business returns to a normalized state. Fortunately, given our highly variable operating cost structure, NCM LLC can distribute available cash during the waiver period if it meets a minimum trailing 12-month adjusted EBITDA target and minimum credit facility balance.

在豁免期間內，NCM 也不得將其目前可用現金分配給 NCM, Inc. 和其他 NCM LLC 成員，除非滿足某些要求。特德稍後將詳細介紹這一點。隨著我們的業務恢復正常狀態，這項豁免將使我們有足夠的時間恢復到 COVID-19 之前的契約結構。幸運的是，考慮到我們高度可變的營運成本結構，如果 NCM LLC 滿足最低過去 12 個月調整後 EBITDA 目標和最低信貸額度餘額，則可以在豁免期內分配可用現金。

We are also actively exploring the potential impact on our company of a variety of relief and stimulus measures under the U.S. government CARES Act. As the CARES Act makes changes to the U.S. tax code that are intended to benefit companies, we are currently evaluating the provision of the CARES Act to determine any potential benefit to the company. No impact to this legislation has been incorporated within our Q1 financial statements as the CARES Act enactment occurred during the second quarter of 2020. While no government funding is currently being pursued, we will also continue to monitor new programs that may be created by Congress that are beneficial to NCM.

我們也正在積極探索美國政府 CARES 法案下的各種救濟和刺激措施對我們公司的潛在影響。由於《CARES 法案》對美國稅法進行了修改，旨在使公司受益，因此我們目前正在評估《CARES 法案》的規定，以確定對公司的任何潛在利益。由於 CARES 法案於 2020 年第二季頒布，因此這項立法並未對我們的財務報表產生影響。雖然目前沒有尋求政府資助，但我們也將繼續監控國會可能製定的新計劃，對NCM有利。

Finally, our Board of Directors has approved the payment of a $0.07 per share first quarter dividend by NCM, Inc. to shareholders of record on May 18, 2020. This lower quarterly dividend will result in a current yield of 9.1% based on yesterday's closing share of $3.08. After the Q1 '20 available cash distribution of $4 million, the NCM, Inc. cash balance would allow us to pay dividends for approximately 12 quarters. Given the current market uncertainty, our Board felt that it was prudent to create a larger dividend payment cushion than we have historically held to ensure that we can continue to pay a dividend for the foreseeable future. Having said that, the NCM, Inc. Board will, as always, continue to review our dividend policy each quarter to ensure that we deliver on our pledge to distribute substantially all of NCM, Inc.'s free cash flow to public shareholders.

最後，我們的董事會已批准NCM, Inc. 於2020 年5 月18 日向登記在冊的股東支付每股0.07 美元的第一季股息。根據昨天的收盤價，這一較低的季度股息將導致當前收益率為9.1%份額為 3.08 美元。在 20 年第一季可用現金分配 400 萬美元之後，NCM, Inc. 的現金餘額將使我們能夠支付約 12 個季度的股息。鑑於當前市場的不確定性，我們的董事會認為，建立比我們歷史上持有的更大的股息支付緩衝是謹慎的做法，以確保我們能夠在可預見的未來繼續支付股息。話雖如此，NCM, Inc. 董事會將一如既往地每季繼續審查我們的股息政策，以確保我們兌現將 NCM, Inc. 的大部分自由現金流分配給公眾股東的承諾。

As you can see, our singular goal at this time is to do everything we can to ensure that NCM can operate efficiently during the COVID-19 crisis and is well positioned to capitalize on an ad market recovery and the pent-up demand [for] out-of-home entertainment experience provided by our cinema partners as we return to a more normal state of business. We are focusing on maintaining a strong liquidity position while actively pursuing an increased share of the video advertising market and preserving the valuable relationships we have with our exhibition and advertising partners, the lending financial institutions that support NCM and our stockholders.

如您所見，我們目前的唯一目標是盡一切努力確保 NCM 在 COVID-19 危機期間能夠高效運營，並做好充分利用廣告市場復甦和被壓抑需求的準備。隨著我們恢復更正常的業務狀態，我們的戲院合作夥伴提供了戶外娛樂體驗。我們專注於保持強勁的流動性狀況，同時積極尋求增加視訊廣告市場份額，並維護我們與展覽和廣告合作夥伴、支持 NCM 的貸款金融機構以及我們的股東之間的寶貴關係。

None of this would have been possible without the hard work and resilience of our NCM team during this unprecedented time. I'm especially thankful for the strength of our executive leadership team who've been working side-by-side with me every minute to keep our company moving forward and planning for the future. I also want to acknowledge how hard it has been for all the people that have been furloughed or that have taken significant pay cuts. As I mentioned, those choices were the hardest of my life, and their absence from the NCM family is expected to be temporary as I'm confident that NCM will make it through this crisis, and we'll be well positioned moving forward.

如果沒有我們 NCM 團隊在這個前所未有的時期的辛勤工作和韌性，這一切都是不可能實現的。我特別感謝我們執行領導團隊的力量，他們每分鐘都與我並肩工作，以推動我們公司不斷前進並規劃未來。我還想承認，對於所有被迫休假或大幅減薪的人來說，這是多麼艱難。正如我所提到的，這些選擇是我一生中最艱難的選擇，他們從NCM 大家庭中的缺席預計將是暫時的，因為我相信NCM 將度過這場危機，並且我們將處於有利地位繼續前進。

Before I turn it over to Ted, I wanted to give you an update on our search for a new CFO at this time. We've temporarily suspended the search process as candidates help their existing employers work through the crisis and as we focus on more immediate corporate priorities. In the meantime, our recently retired CFO, Katie Scherping, is continuing to provide her expertise and guidance to me and the team as a consultant. And of course, our Senior VP of Finance, Ted Watson, has been working well holding down the fort admirably.

在將其交給 Ted 之前，我想向您介紹我們目前尋找新財務長的最新情況。我們暫時中止了搜尋流程，因為候選人正在幫助其現有雇主度過危機，同時我們也將重點放在更緊迫的公司優先事項上。同時，我們最近退休的財務長 Katie Scherping 作為顧問繼續為我和團隊提供她的專業知識和指導。當然，我們的財務高級副總裁泰德·沃森 (Ted Watson) 一直在堅守陣地，表現出色，令人欽佩。

So thank you, Ted, and I'll turn the call over to you.

謝謝你，泰德，我會把電話轉給你。

All right. Thank you, Tom. I will walk through the Q1 results in further detail, provide some more details on how to think about the cost structure of our business during this COVID-19 pandemic. Then we will open up the call to your questions. We will be providing a supplemental presentation of these results and our COVID-19 update on our website for future reference.

好的。謝謝你，湯姆。我將更詳細地介紹第一季的業績，並提供更多關於如何在這次 COVID-19 大流行期間考慮我們業務成本結構的細節。然後我們將打開電話詢問您的問題。我們將在我們的網站上提供這些結果和 COVID-19 更新的補充介紹，以供將來參考。

For the first quarter, our total revenue was $64.7 million compared to $76.9 million in Q1 2019 or a reduction of 15.9%. This $12.2 million change occurred primarily in March as the COVID epidemic spread to the U.S., resulting in a $7.6 million decrease in national advertising revenue, a $3.4 million decrease in local advertising revenue and a $1.2 million decrease in beverage revenue for the current quarter versus Q1 '19.

第一季的總收入為 6,470 萬美元，較 2019 年第一季的 7,690 萬美元減少了 15.9%。這一 1,220 萬美元的變化主要發生在 3 月份，當時新冠疫情蔓延到美國，導致本季度全國廣告收入減少 760 萬美元，地方廣告收入減少 340 萬美元，飲料收入減少 120 萬美元。 '19。

Total Q1 adjusted OIBDA was $14.4 million compared to $22.1 million in Q1 2019, a decrease of $7.7 million or 34.8%. The adjusted OIBDA margin for the quarter was 22.3% compared to 28.8% during the same period last year due to a decrease in revenue, partially offset by $6.2 million in lower operating expenses, driven by a decrease in variable costs that include theater access fees, affiliate advertising payments, sales commissions and a decrease in performance-based compensation as a result of the COVID-19-related closures of theaters in March.

第一季調整後的 OIBDA 總額為 1,440 萬美元，而 2019 年第一季為 2,210 萬美元，減少了 770 萬美元，即 34.8%。由於收入減少，本季調整後的 OIBDA 利潤率為 22.3%，而去年同期為 28.8%，但由於可變成本（包括劇院入場費、由於3 月份與COVID-19 相關的影院關閉，聯營公司廣告費、銷售佣金、以績效為基礎的薪酬減少。

Our Q1 2020 advertising revenue mix was 77% national, 15% local and 8% beverage. This compares to Q1 2019 that was 74%, 17% and 9%, respectively. As a reminder, beginning in Q1, regional revenue is now being combined with our national revenue.

我們 2020 年第一季的廣告收入組合為 77% 全國廣告收入、15% 本地廣告收入和 8% 飲料廣告收入。相比之下，2019 年第一季分別為 74%、17% 和 9%。提醒一下，從第一季開始，地區收入現在與國家收入合併。

Because of the significant impact of COVID-19 on our March results, an analysis of our Q1 2020 revenue versus Q1 2019 is not meaningful as it does not represent fairly our ongoing operations. While Q1 national ad revenue was 13.2% lower than Q1 2019, all of the negative variance came in the month of March.

由於 COVID-19 對我們 3 月份的業績產生了重大影響，因此對 2020 年第一季的收入與 2019 年第一季的收入進行分析沒有意義，因為它不能公平地代表我們正在進行的業務。雖然第一季全國廣告收入比 2019 年第一季下降 13.2%，但所有負差異都出現在 3 月。

The Q1 change was driven by a 9.4% decrease in impressions sold and an 8.7% decrease in CPMs. Q1 2020 19% network attendance decrease was related to March's network attendance decrease of 54% due to COVID-19 and the eventual temporary theater closures as well as a weaker movie slate in the early part of the fiscal month compared to 2019. The decrease in theater attendance was partially offset by a Q1 2020 11.9% increase in inventory utilization to 104.5% versus 93.4% as our network was well sold when the virus hit. The Q1 8.7% decrease in CPMs were driven by weakness in scatter CPMs throughout the quarter but especially exacerbated by the impact of COVID-19 during March, where scatter CPMs were down 19%.

第一季的變化是由於銷售展示次數下降 9.4% 和每千次曝光費用下降 8.7% 造成的。 2020 年第一季網路上座率下降 19%，與 3 月份的網路上座率下降 54% 有關，原因是由於 COVID-19、影院最終臨時關閉以及本財月初的電影數量較 2019 年有所減少。影院上座率被2020 年第一季庫存利用率從93.4% 增加11.9% 至104.5% 部分抵消，因為病毒來襲時我們的網路銷售良好。第一季的每千次曝光費用下降了8.7%，這是由於整個季度分散每千次曝光費用的疲軟所致，但3 月份COVID-19 的影響尤其加劇了這種情況，其中分散每千次展示費用下降了19%。

In addition, we had 2 customers with high upfront CPM spend in Q1 2019 that did not place any ads in Q1 this year. We expect much of the lower Q1 and March CPMs can be attributed to ad placement timing. And while we would expect some market CPM softness as the economy reopens and brands begin to bring their ad spending levels back to normal levels, we would expect our national CPMs to benefit from the lack of new sports and other fresh TV programming.

此外，我們有 2 位在 2019 年第一季預付費用較高的客戶，但今年沒有投放任何廣告。我們預計第一季和三月每千次曝光費用的下降很大程度上可歸因於廣告投放時機。雖然我們預計隨著經濟重新開放和品牌開始將廣告支出水平恢復到正常水平，市場每千次展示費用將出現一些疲軟，但我們預計我們的全國每千次展示費用將受益於新體育和其他新鮮電視節目的缺乏。

Q1 local revenue was down $3.4 million or 26.6% to $9.4 million due to a 14.9% decrease in contract -- in the volume of contracts sold and a 16.5% decrease in the average contract value, in part due to COVID-19. In some cases, we expect this local revenue to shift to later in 2020, or as Tom mentioned, some of it has been or will be shifted to our digital revenue.

第一季本地收入下降 340 萬美元，或 26.6%，至 940 萬美元，原因是合約銷售量下降 14.9%，平均合約價值下降 16.5%，部分原因是受新冠肺炎 (COVID-19) 影響。在某些情況下，我們預計本地收入將轉移到 2020 年晚些時候，或者正如 Tom 所提到的，其中一些已經或將會轉移到我們的數位收入。

Q1 2020 beverage revenue was $5.5 million, a decrease of 17.9% or $1.2 million versus Q1 2019 driven by a 19.4% decrease in founding member attendance, almost all of which happened in March, partially offset by a slight increase in beverage revenue CPMs in the first quarter of 2020 compared to the first quarter of 2019.

2020 年第一季飲料收入為550 萬美元，與2019 年第一季相比下降17.9% 或120 萬美元，原因是創始會員出席人數減少19.4%，幾乎所有下降都發生在3 月份，部分被2019年第一季飲料收入每千次展示費用略有增加所抵銷。2020年第一季與2019年第一季相比。

For the first quarter, we reported GAAP diluted loss per share of $0.05 versus a loss per diluted share of $0.01 in Q1 2019. Our capital expenditures were $3.3 million for the first quarter of 2020 compared to $2.8 million for Q1 2019. The increase was driven by continued investment in our digital product development and the build-out of our consumer databases. Total capital expenditures are now expected to be between $11 million and $12 million in 2020 versus our prior guidance of $14 million to $16 million or a decrease of 23% at the midpoint.

第一季度，我們報告的GAAP 攤薄每股虧損為0.05 美元，而2019 年第一季攤薄每股虧損為0.01 美元。2020 年第一季我們的資本支出為330 萬美元，而2019 年第一季為280 萬美元。這一增長是由透過持續投資我們的數位產品開發和消費者資料庫的建設。目前預計 2020 年資本支出總額將在 1,100 萬美元至 1,200 萬美元之間，而我們先前的指引為 1,400 萬美元至 1,600 萬美元，中間值減少 23%。

As Tom mentioned, much of our nonessential capital spending was delayed beginning in mid-March. However, we are continuing to invest in our new sales planning and inventory management platform that is in its testing phase and expected to launch in Q1 of 2021. Given the strategic importance of these systems and our desire to hit the ground running when the crisis passes, we felt it important to push through the testing phase and stay the course with the implementation as planned.

正如 Tom 所提到的，我們的大部分非必要資本支出從 3 月中旬開始被推遲。不過，我們將繼續投資新的銷售規劃和庫存管理平台，該平台正處於測試階段，預計將於 2021 年第一季推出。鑑於這些系統的戰略重要性以及我們希望在危機過去後立即投入使用，我們認為完成測試階段並按計劃繼續實施非常重要。

During the first quarter, we recorded $1.4 million of integration and other encumbered theater payments, primarily for the AMC Carmike Theaters, versus $2.5 million in Q1 2019. Integration and other encumbered theater payments decreased $1.1 million from the quarter ended March 28, 2019, to the quarter ended March 26, 2020. This decrease is due to Rave cinemas coming on to our network, and thus, no longer being encumbered; and the decrease in adjusted OIBDA quarter-over-quarter, which is the driver of the calculation of payments. You should note all integration and other encumbered theater payments are added to adjusted OIBDA for debt compliance and available cash calculation purposes but are not included in our reported revenue and adjusted OIBDA as they are recorded as a reduction to the net intangible assets on our balance sheet.

第一季度，我們記錄了140 萬美元的整合和其他阻礙劇院付款，主要用於AMC 卡邁克劇院，而2019 年第一季為250 萬美元。整合和其他阻礙劇院付款較截至2019 年3 月28日的季度減少了110 萬美元，至該季度截至 2020 年 3 月 26 日。這一下降是由於 Rave 電影院進入我們的網絡，因此不再受到阻礙；調整後的 OIBDA 環比下降，這是支付計算的驅動因素。您應該注意，出於債務合規性和可用現金計算的目的，所有整合和其他劇院付款均被添加到調整後的OIBDA 中，但不包含在我們報告的收入和調整後的OIBDA 中，因為它們在我們的資產負債表上記錄為無形資產淨值的減少。

As Tom mentioned earlier, in anticipation of future noncompliance with our financial covenants, we have obtained a senior bank facility waiver to the extent we are not compliant with our net senior secured and total leverage covenants through the quarter ended July 1, 2021. Our covenants are calculated using trailing 12 months of EBITDA as defined in the credit agreement. We are compliant with all our covenants at the end of Q1 2020, and we expect to be very close at the end of Q2.

正如Tom 之前提到的，考慮到未來可能會出現不遵守我們的財務契約的情況，如果我們不遵守截至2021 年7 月1 日的季度的淨高級擔保和總槓桿契約，我們已獲得高級銀行融資豁免。使用信貸協議中定義的過去 12 個月的 EBITDA 進行計算。我們在 2020 年第一季末遵守了所有約定，預計在第二季末也將非常接近。

Considering the impact of having virtually no revenue in Q2 2020 will have on our trailing 4-quarter covenant calculations, we and our banks felt it prudent to provide relief for a 5-quarter period beginning Q2 2020. It is also important to note that we will be paying scheduled interest and principal payments on all of our indebtedness throughout the waiver period.

考慮到2020 年第二季幾乎沒有收入將對我們過去4 季度契約計算產生影響，我們和我們的銀行認為，為2020 年第二季度開始的5 季度提供減免是謹慎的做法。還需要注意的是，我們將在整個豁免期內支付我們所有債務的預定利息和本金。

Conditions for the covenant waiver for NCM LLC include maintaining a minimum liquidity of $55 million. Also, NCM LLC will not be able to distribute any of its available cash as defined in the LLC operating agreement during the waiver period, unless at any quarter end, trailing 4-quarter defined adjusted EBITDA is at least 120% of the 2019 minimum compliance adjusted EBITDA or $277 million. And the amount outstanding of -- and the amount of outstanding loans underneath the revolver cannot exceed $39 million.

NCM LLC 的契約豁免條件包括維持至少 5,500 萬美元的流動性。此外，NCM LLC 在豁免期內將無法分配 LLC 營運協議中定義的任何可用現金，除非在任何季度末，追蹤 4 季度定義的調整後 EBITDA 至少為 2019 年最低合規性的 120%調整後EBITDA 為2.77 億美元。未償還金額以及左輪手槍項下的未償還貸款金額不能超過 3,900 萬美元。

Conditions following the waiver include NCM LLC being in compliance with both its net consolidated senior secured and total leverage covenants, NCM LLC's consolidated net senior secured leverage ratio must be below 5x for the distribution of available cash to its owners. We believe this waiver will allow us the flexibility needed to come back into compliance with our financial covenants as of the end of Q3 2021 and theaters open up and business operations normalize throughout the back half of 2020 and into 2021.

豁免後的條件包括 NCM LLC 遵守其合併淨優先擔保和總槓桿契約，NCM LLC 的合併淨優先擔保槓桿率必須低於 5 倍才能向其所有者分配可用現金。我們相信，這項豁免將使我們能夠靈活地在 2021 年第三季末恢復遵守我們的財務契約，並在 2020 年下半年和 2021 年期間影院開業和業務運營正常化。

Looking specifically at our leverage, NCM LLC total net debt as of the end of Q1 2020 was approximately 4.3x trailing 4 quarters adjusted OIBDA plus integration payments versus 4.3x in Q1 2019, which is below our consolidated net total leverage maintenance covenant of 6.25x. Our consolidated net senior secured leverage ratio was 3.3x versus a covenant of 4.5x.

具體來看我們的槓桿率，截至2020 年第一季末，NCM LLC 總淨債務約為過去4 個季度調整後的OIBDA 加上整合付款的4.3 倍，而2019 年第一季為4.3 倍，低於我們6.25 倍的綜合淨總槓桿維持契約。我們的綜合淨優先擔保槓桿率為 3.3 倍，而契約為 4.5 倍。

Moving on to the balance sheet. Our total debt outstanding at NCM LLC at the end of Q1 2020 was $1.1 billion versus $936 million at the end of Q1 2019. During the quarter, we drew down $110 million in additional funds on the revolving credit facility, resulting in an increase in our revolver balance at the end of Q1 2020 to $167 million compared to $37 million at the end of Q1 2019. Our average rate on all debt outstanding was approximately 5.1% at the end of Q1 compared to 5.8% in Q1 of '19. This includes our $266 million floating term loan bank debt and our revolver credit facility that had a rate of approximately 3.9%.

繼續看資產負債表。截至2020 年第一季末，NCM LLC 的未償債務總額為11 億美元，而2019 年第一季末為9.36 億美元。本季度，我們從循環信貸安排中提取了1.1 億美元的額外資金，導致我們的債務增加2020 年第一季末的左輪手槍餘額為1.67 億美元，而2019 年第一季末為3700 萬美元。第一季末我們所有未償債務的平均利率約為5.1% ，而19 年第一季末為5.8%。這包括我們 2.66 億美元的浮動定期貸款銀行債務和利率約為 3.9% 的循環信貸安排。

It is important to note that there was no increase in our interest rate spread as a result of the bank amendment as we were only required to pay an amendment fee to banks that agreed to the amendment before the approval deadline. Excluding revolver balances, 70% of our total debt outstanding at the end of Q1 2020 had a fixed interest rate.

值得注意的是，銀行修改並沒有導致我們的利差增加，因為我們只需要向在批准截止日期之前同意修改的銀行支付修改費。不包括循環餘額，截至 2020 年第一季末，我們未償債務總額的 70% 具有固定利率。

Our consolidated cash and investment balances as of Q1 2020 were $215 million with $83 million of this balance at NCMI. With the increased cash balances related to the revolver draw and the accounts receivable collections, the NCM LLC net debt balance at the end of Q1 2020 decreased slightly to $930.7 million versus $930.9 million at the end of Q1 2019.

截至 2020 年第一季度，我們的合併現金和投資餘額為 2.15 億美元，其中 8,300 萬美元存放在 NCMI。隨著與左輪手槍提款和應收帳款催收相關的現金餘額增加，NCM LLC 2020 年第一季末的淨債務餘額小幅下降至9.307 億美元，而2019 年第一季末的淨債務餘額為9.309 億美元。

As Tom mentioned earlier, our Board of Directors approved a Q1 dividend of $0.07 per share. The dividend will be paid on June 1, 2020, to stockholders of record on May 18, 2020. With this lower dividend, we currently have enough NCMI cash available to cover nearly 12 quarters of dividends at NCMI with no other cash distributions received from NCM LLC after the Q1 2020 distribution of approximately $4 million.

正如 Tom 之前提到的，我們的董事會批准了每股 0.07 美元的第一季股息。股息將於2020 年6 月1 日支付給2020 年5 月18 日登記在冊的股東。由於股息較低，我們目前擁有足夠的NCMI 現金來支付NCMI 近12 個季度的股息，且沒有從NCM 收到其他現金分配LLC 在 2020 年第一季分配約 400 萬美元後。

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 its free cash flow. The declaration, payment, timing and amount of future dividends payable will be at the sole discretion of the Board of Directors, who will consider general economic and advertising market business conditions, the company's financial condition, available cash, current and anticipated cash needs, and any other factors that the Board of Directors considers relevant, which includes short-term and long-term impact to the company related to the temporary theater closures for the COVID-19 pandemic and restrictions under the NCM LLC credit agreement.

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。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業務狀況、公司的財務狀況、可用現金、當前和預期的現金需求，以及董事會認為相關的任何其他因素，其中包括因COVID-19 大流行而臨時關閉劇院以及NCM LLC 信貸協議下的限制對公司造成的短期和長期影響。

Now I would like to provide you with some information regarding NCM LLC's cash burn rate, while theaters are closed due to the COVID-19 pandemic. As mentioned earlier, while theaters are closed, NCM LLC's variable operating costs such as theater access fees, which include attendance-based and digital screen fees, platinum revenue share, affiliate revenue share and sales commission costs, are significantly reduced or eliminated. Outside of these expenses, the company typically has had approximately $9.5 million of monthly core operating expenses. These core operating expenses include headcount, marketing and research costs, professional fees, lease costs and other variable expenses.

現在，我想向您提供一些有關 NCM LLC 在劇院因 COVID-19 大流行而關閉期間的現金消耗率的資訊。如前所述，在影院關閉期間，NCM LLC 的可變營運成本（例如影院入場費，包括基於出席率和數位螢幕的費用、白金收入份額、附屬收入份額和銷售佣金成本）將大幅減少或消除。除了這些費用之外，該公司每月的核心營運費用通常約為 950 萬美元。這些核心營運費用包括員工人數、行銷和研究成本、專業費用、租賃成本和其他可變費用。

Through a disciplined and multi-phased approach, we have reduced our core operating expenses by nearly 50% to a run rate average of under $5 million per month while the theaters are closed. As many of these costs can be delayed to later in this year, the average monthly cash burn rate will likely be lower in Q2 and Q3 of this year. Also, we continue to evaluate our remaining costs and will further adjust our decisions as conditions warrant.

透過嚴格的、多階段的方法，我們將核心營運費用減少了近 50%，在影院關閉期間，每月的平均運行費用低於 500 萬美元。由於其中許多成本可以推遲到今年晚些時候，因此今年第二季和第三季的平均每月現金消耗率可能會較低。此外，我們將繼續評估剩餘成本，並將根據情況進一步調整我們的決定。

In addition to our core operating expense run rate, the company has a debt service obligation that averages a little over $4 million per month for the remainder of the year. With a total average cash burn rate of approximately $9 million per month, including debt service obligations and $169 million of cash on hand plus $47 million in accounts receivable, the company has more than 18 months of liquidity to effectively run the business with no meaningful new revenue.

除了我們的核心營運費用運行率外，該公司在今年剩餘時間內平均每月還有略高於 400 萬美元的償債義務。該公司的平均現金消耗率約為每月900 萬美元，包括償債義務和1.69 億美元的手頭現金，加上4,700 萬美元的應收帳款，該公司擁有超過18 個月的流動資金來有效經營業務，而無需任何有意義的新業務。收入。

As Tom mentioned, even during the temporary theater closures, we continue to recognize some amount of digital revenue that will help offset some of our negative operating cash flow. It is also important to note that given the variable cost, high-margin nature of our business, with the operating expense reductions we have made, once the theaters begin to reopen, NCM LLC can still cover debt service and operating costs with revenue that is approximately 40% of the 2019 level.

正如湯姆所提到的，即使在劇院暫時關閉期間，我們仍會繼續確認一定數量的數位收入，這將有助於抵消我們的部分負營運現金流。同樣重要的是要注意，鑑於我們業務的可變成本、高利潤性質，隨著我們減少營運費用，一旦劇院開始重新開放，NCM LLC 仍然可以用收入來支付債務償還和營運成本約為2019年水平的40%。

Finally, turning to guidance. As Tom mentioned, we have deliberately structured our operating and liquidity plans so that our advertising business can operate at a level necessary to aggressively compete in the advertising marketplace that is still very active so that we can be ready to hit the ground running when the theaters begin to reopen. Therefore, considering this uncertainty with respect to when and at what rate, we will be able to begin recognizing in-theater advertising revenue.

最後，轉向指導。正如湯姆所提到的，我們精心建立了我們的營運和流動性計劃，以便我們的廣告業務能夠在仍然非常活躍的廣告市場中積極競爭所需的水平上運營，以便我們可以準備好在影院上映時立即投入營運。開始重新開放。因此，考慮到何時以及以何種速度的不確定性，我們將能夠開始確認戲院內廣告收入。

Due to the COVID-19 pandemic, the company has withdrawn its previously provided 2020 revenue, adjusted OIBDA and integration payment guidance until we have better clarity as to the COVID-19-related elements that impact our future revenue and adjusted OIBDA. During this period of uncertainty, we will instead continue to provide important liquidity measures such as AR collections, cash and net debt balances and monthly operating and debt service cash usage rates that we are using to manage our business over the near term during the crisis.

由於 COVID-19 大流行，該公司已撤回先前提供的 2020 年收入、調整後的 OIBDA 和整合付款指南，直到我們更清楚地了解影響我們未來收入和調整後的 OIBDA 的 COVID-19 相關因素。在這段不確定的時期，我們將繼續提供重要的流動性措施，例如應收帳款催收、現金和淨債務餘額以及每月營運和償債現金使用率，我們在危機期間使用這些措施來管理我們的業務。

This concludes our prepared remarks, and we'll now open up the lines 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 is from Eric Wold, B. Riley FBR.

（操作員說明）第一個問題來自 Eric Wold, B. Riley FBR。

Tom and Ted, a couple questions. I know you're talking to an uncertain environment out there, but you mentioned you're starting to head into the upfront buying season as it relates to next year, whether that next year ends up being kind of October, September, over the calendar year. Any sense, early read into that -- into the ad buying environment you're getting from your customers? Are sales cycles lengthening? Are they kind of a little more hesitant to commit upfront? Any adverse impact of CPMs? Just kind of how do you think about kind of the light down tailwind you were going to have coming this year against kind of a COVID-19 budget headwind possibility?

湯姆和特德，有幾個問題。我知道你正在談論一個不確定的環境，但你提到你正開始進入與明年相關的前期購買季節，無論明年最終是十月、九月還是日曆上的十月、九月年。有任何意義嗎？儘早了解您從客戶那裡獲得的廣告購買環境？銷售週期是否延長？他們對提前承諾有點猶豫？ CPM 有任何不利影響嗎？您如何看待今年在應對 COVID-19 預算逆風的情況下會出現的輕微順風？

Okay. I'm going to turn that question over to Cliff Marks, who is also on the line, and he's the one literally day-to-day talking to customers. And I think he can give you a preview of how things are going right now and what the upfront looks like in terms of how our advertisers are looking at the industry as well as our platform.

好的。我將把這個問題轉給克里夫馬克斯（Cliff Marks），他也在電話中，他是每天與客戶交談的人。我認為他可以讓您預覽目前的情況，以及我們的廣告商如何看待這個行業以及我們的平台的前期情況。

Yes. Eric, I think that you're going to have a kind of bifurcated upfront this year. There will still be an upfront for the general marketplace as well as the cinema marketplace. I think a lot of brands and a lot of clients are trying to figure out where they're going to flow. But we project that there will be an upfront. We have been very active in talking to clients and starting to present ideas. In traditional years, much more of our business happens in what we refer to as the broadcast upfront, the buying period in the late fall, October, November. And I'd project that, that will still be the majority of our upfront buying this year.

是的。艾瑞克，我認為今年你的前期工作將會出現分歧。一般市場和電影市場仍需要預付費用。我認為很多品牌和很多客戶都在試圖弄清楚他們將流向何處。但我們預計會有預付款。我們一直非常積極地與客戶交談並開始提出想法。在傳統年份，我們的更多業務發生在我們所說的前期廣播，即秋末、十月、十一月的購買期。我預計，這仍將是我們今年預購的大部分。

I think the one thing I would add to that is the fourth quarter from a theatrical point of view may end up being one of the biggest attendance box office fourth quarters in a really long time as some additional major movies have shifted into that. So we're optimistic about our fourth quarter and hopeful that with theaters reopening and a really great fresh slate, that it will drive a lot of interest from advertisers.

我認為我要補充的一件事是，從影院的角度來看，第四季度可能最終會成為很長一段時間以來票房最高的第四季度之一，因為一些其他主要電影已經轉移到了這一點。因此，我們對第四季度持樂觀態度，並希望隨著影院重新開放和真正精彩的新片單，它將引起廣告商的極大興趣。

So on that, you mentioned before that you're optimistic that a favorable environment for in-theater ads, given fresh content, possible delays in sports and kind of scripted content. How would you expect to see that reflected in the ad mix kind of versus traditional years in terms of upfront versus scatter? And then would you still think it's a ripe environment kind of for the platinum ad buys in that fall/winter period? Or could there be some hesitancy among buyers to kind of lock those in at this point?

因此，您之前提到過，考慮到新鮮的內容、體育賽事可能的延遲以及某種腳本內容，您對影院內廣告的有利環境持樂觀態度。與傳統年份的廣告組合相比，您希望在預付與分散方面如何反映這一點？那麼您是否仍然認為對於那個秋冬時期的白金廣告購買來說這是一個成熟的環境？或者買家此時是否會猶豫是否要鎖定這些買家？

Let me start, and then I'll let Cliff continue. I mean it's obviously a very fluid situation out there as the upfront -- the traditional broadcast upfront is moving in a fluid dynamic, and there's going to be a mixture between really June through the fall of a mixture of scatter and upfront. And it's obviously an unprecedented time. And I think as a result, there could be a mix that's different than historically has been between scatter and upfront. But every platform, including our own, is talking individually to our clients and to the agencies to come up with the right solutions from a timing point of view. I think -- you want to add to that, Cliff?

讓我開始，然後我讓克里夫繼續。我的意思是，這顯然是一個非常不穩定的情況，因為前期——傳統的廣播前期正在以一種流動的動態方式移動，並且從真正的六月到秋季之間將會出現分散和前期的混合。這顯然是一個前所未有的時刻。我認為，因此，分散和預付之間可能會出現一種與歷史上不同的混合。但每個平台，包括我們自己的平台，都在與我們的客戶和代理商單獨交談，以便從時機的角度提出正確的解決方案。我想──你想補充一下嗎，克里夫？

Yes. The only thing I would add is we've had a very, very loyal group of upfront partners who really like our medium. They've been loyal to the cinema medium. They've been loyal to NCM. And from all of the conversations we've had to date, most of our clients are not wigged out. They're very much -- they very much believe in our medium. Most of them are working with us and have been very cooperative in trying to shift.

是的。我唯一要補充的是，我們有一群非常非常忠誠的前期合作夥伴，他們非常喜歡我們的媒體。他們一直忠於電影媒體。他們一直忠於 NCM。從迄今為止我們進行的所有對話來看，我們的大多數客戶都沒有被欺騙。他們非常——他們非常相信我們的媒介。他們中的大多數人正在與我們合作，並且在嘗試轉變方面非常合作。

So it's hard to know exactly, of course. But I anticipate that most of our upfront partners will return. And I can tell you that, I mean, obviously, it's early in selling the post-show advertising. So we're still working on establishing the value and the premium value of that. So it remains to be seen what happens with that. But nobody dislikes better inventory. Anyone we've talked to, nobody dislikes better inventory. So I don't foresee it to be challenging to big brands that they should be there. We'll have to have a lot of conversations about the value, but that's what was going to happen anyways.

所以當然很難確切知道。但我預計我們大多數的前期合作夥伴都會回歸。我可以告訴你，我的意思是，顯然，現在是銷售展後廣告的早期階段。因此，我們仍在努力確定其價值和溢價。因此，接下來會發生什麼還有待觀察。但沒有人不喜歡更好的庫存。與我們交談過的任何人，沒有人不喜歡更好的庫存。因此，我認為大品牌的存在不會對他們構成挑戰。我們必須就其價值進行大量對話，但這無論如何都會發生。

We have a question from Jim Goss at Barrington Research.

巴靈頓研究中心的吉姆‧戈斯向我們提出了一個問題。

Continuing along the ad theme, to the extent that you have commitments right now that you obviously can't deliver, are you able to treat these effectively as make goods that you'll be able to deliver once theaters start to open and be able to maintain the revenue base you would have had but deliver it later on? And what is the flexibility in delivery such that you don't have to pile everything up into periods where the demand might be greater and then it really would hurt to have to give the ad spots away at a lower rate than you'd be able to get later on?

繼續沿著廣告主題，如果你現在有明顯無法兌現的承諾，你是否能夠有效地將這些承諾視為一旦劇院開始營業並能夠兌現的商品維持您原本擁有的收入基礎，但稍後再交付？交付的靈活性是多少，這樣您就不必將所有內容都堆放在需求可能更大的時期，然後以低於您所能承受的價格提供廣告位確實會很痛苦稍後再獲取？

Jim, let me start, and then I'll have Cliff add some more flavor to it. There's -- you're asking really 2 different questions. The first question is, is the existing commitments that had happened in the prior upfront, we're having a significant success rolling those into later months and later quarters. So for example, commitments that were made in Q2 have been moved into Q3 and Q4. And we've had a very good success rate of maintaining those dollars.

吉姆，讓我開始，然後我會讓克里夫添加更多的味道。你確實在問兩個不同的問題。第一個問題是，我們在前期的現有承諾中取得了重大成功，將這些承諾推遲到了接下來的幾個月和幾個季度。例如，第二季所做的承諾已轉移到第三季和第四季。我們在維持這些資金方面取得了非常好的成功率。

As it relates to the whole make good situation, we have an existing make good coming out of Q4 into Q1, which is about the same number. Some of that make good will get used as theaters open, and the rest will get used as the rest of the calendar year goes forward. Do you want to add anything to that, Cliff?

由於它涉及整個修復情況，我們有一個現有的修復從第四季度進入第一季度，數量大致相同。其中一些善款將在劇院開業時使用，其餘的將在今年剩餘時間使用。克里夫，你想補充什麼嗎？

Yes. No, I think that's accurate. I mean we've been able to shift a lot of our business, so that's a good thing. Depending on when we open and how many rating points are available, that will determine how much money we're able to burn before we write new money, before we write new deals. So really, it's an unknown as to when do the theaters open and how many impressions we have. But we've done a really good job. Our team has really done a fantastic job of saving a lot of money.

是的。不，我認為這是準確的。我的意思是我們已經能夠轉移很多業務，所以這是一件好事。根據我們何時開業以及有多少評級點可用，這將決定我們在寫新資金之前、寫新交易之前能夠燒掉多少錢。所以實際上，劇院什麼時候開放以及我們有多少印像都是未知的。但我們做得非常好。我們的團隊確實做得非常出色，節省了很多錢。

Okay. And maybe competitively, you've talked about trying to take some share from broadcasting, which you've always attempted to do. Right now, broadcasters are having a pretty good success in in-home viewership levels, but the ad demand and pricing has been down because of a lot of the troubled advertisers and reductions in ad commitments. And I'm wondering how that affects this whole process. And also, you might tie it into the shift into national from local that seems to be continuing to take place in your...

好的。也許在競爭中，您談到試圖從廣播中獲取一些份額，而您一直在嘗試這樣做。目前，廣播公司在家庭收視水平方面取得了相當大的成功，但由於許多陷入困境的廣告商和廣告承諾的減少，廣告需求和價格一直在下降。我想知道這如何影響整個過程。而且，您可能會將其與從地方到全國的轉變聯繫起來，這似乎正在繼續發生在您的...

Look, let me start. I think Jim, what I would say is that if you really look at current programming, there is so little on television today. Obviously, none of the sports is current. Most of what's on network television is reruns. We believe that as we start going into this with all new programming beginning as early as July, that we'll have a real opportunity from a volume and CPM point of view to drive the business.

聽著，讓我開始吧。我想吉姆，我想說的是，如果你認真看一下當前的節目，你會發現今天的電視內容太少了。顯然，沒有一項運動是最新的。網路電視上的節目大多是重播的。我們相信，當我們從 7 月開始所有新節目開始進入這個階段時，從數量和每千次展示費用的角度來看，我們將有一個真正的機會來推動業務。

When you think about it, a lot of these movies have been sitting there finished in the can for months now waiting. So we think as people -- particularly given how cooped up everybody is, with the combination of that dynamic plus really fresh programming and big programming, that will open an opportunity to hopefully grow our business and steal share from traditional television and also to drive CPMs.

仔細想想，很多這樣的電影已經在罐子裡放了好幾個月了，等待著。因此，我們認為，作為人們，特別是考慮到每個人都處於封閉狀態，透過動態加上真正新鮮的節目和大型節目的結合，這將為我們提供一個機會，希望能夠發展我們的業務，從傳統電視中竊取份額，並提高每千次展示費用。 。

And the greater -- the macro marketplace, as you noted, that's really not a cinema issue. That's just a marketplace issue. There's a -- the broadcast networks, while they have increased viewership, there's not enough money to cover all those rating points. That's an everyone situation. Every network is going to deal with that.

正如您所指出的，更大的宏觀市場實際上不是電影問題。這只是一個市場問題。廣播網絡雖然增加了收視率，但沒有足夠的資金來涵蓋所有這些收視點。這是每個人的情況。每個網路都會處理這個問題。

(Operator Instructions) Gentlemen, there are no further questions at this time. I'd like to turn the call back over to Tom Lesinski for closing remarks. Please go ahead, sir.

（操作員指示）先生們，目前沒有其他問題。我想將電話轉回湯姆·萊辛斯基 (Tom Lesinski) 致閉幕詞。請繼續，先生。

Thank you, guys, for the questions. I just want to close by saying our NCM leadership team, our Board of Directors and our employees remain deeply committed to position our company to weather this crisis and to come out the other end stronger than ever, so we can deliver on our mission to unite brands with the power of movies and engage movie fans anytime and anywhere. Once the COVID-19 pandemic alleviates, we'll be well positioned to continue to deliver the growth strategy that we launched last year and that was beginning to take hold before the crisis hit.

謝謝你們的提問。最後我想說的是，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，並在另一端變得比以往任何時候都更強大，這樣我們就可以實現團結一致的使命品牌借助電影的力量，隨時隨地與影迷互動。一旦 COVID-19 大流行緩解，我們將處於有利位置，能夠繼續實施我們去年啟動的成長策略，該策略在危機爆發之前就開始生效。

While our stock price is currently depressed, our unique corporate structure is providing an investment vehicle that is continuing to deliver a substantial dividend return even during the crisis. We are confident that all the steps we've taken will allow us to deliver free cash flow growth and stock price appreciation once the crisis is passed.

雖然我們的股價目前低迷，但我們獨特的公司結構提供了一種投資工具，即使在危機期間也能繼續帶來可觀的股息回報。我們相信，一旦危機過去，我們所採取的所有措施將使我們能夠實現自由現金流成長和股價升值​​。

I'd like to close by once again thanking all my NCM teammates, our cinema partners, lenders and the other business partners for their hard work and support through this period of time. I can assure you that all of us at NCM are working tirelessly to not only get through this crisis, but together, make NCM an even stronger company. Thank you all for joining us, and I hope that someday soon, I'll see you all at the movies. Until then, I hope everyone stays safe and healthy. Thank you.

最後，我想再次感謝我所有的 NCM 團隊成員、我們的戲院合作夥伴、貸方和其他業務合作夥伴在這段時間的辛勤工作和支持。我可以向您保證，NCM 的所有人都在不懈地努力，不僅要度過這場危機，而且要共同努力，使 NCM 成為一家更強大的公司。感謝大家加入我們，希望不久的將來，我能在電影中見到你們。在那之前，我希望每個人都保持安全和健康。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。