Cinemark Holdings Earnings Call NUGGETS: Currency Headwinds in Brazil, Advertising
Currency Headwinds in Brazil
Eric Handler – MKM Partners: Just two things on international first with the currency headwinds that you are facing in Brazil right now is this having any impact at all on new theatre development and then secondly when I look at the third quarter release slate in Latin America is there anything we need to be aware of in terms of some comp issues or anything along those lines.
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Robert Copple – EVP; Treasurer; CFO; Assistant Secretary: Eric with respect to the headwinds we’ve faced over the last 16 years we’ve been down there, times on the currency is helpful in times where it goes the other way. What we find is over the long-term with averages out and we have a great business down there. So we continue to stay focused on our expansion plans, the currency headwinds or not impacting that Brazil still is the country that we have the largest amount of new theatre development going on over the next 12 months and will continue to have that even going into future, because of the great opportunities down there. So the headwinds I obviously prefer not to have them, but they’ll happen and they’ll turn later. It’s just yet to be in for the long haul and we’ve done very well. As our numbers show even with those that we did well this quarter. And then on your other question film slate was nothing in particular its, this quarter we actually in Brazil had Rio that were up against the impact us a little bit there primarily in Brazil. Next quarter is the one (that’s) anything unusual I think in terms of special film products. I think we’ll face similar issues that we do in the U.S. where it’s going to, we would think another good quarter however clearly last year was a record quarter, overall in the U.S. and then with Olympics and everything else impacting us, this quarter clearly is showing the heat a little bit.
Barton Crockett – Lazard Capital Markets: I noticed in the Q that you were talking about a nearly 22% increase in other revenue in Latin America really tied to advertising. I was wondering if you could talk about what’s going on down there with pre-movie advertising and also update us how far are you along in the digital projector rollout there, and in coming to a virtual print fee agreement with the studios down there.
Timothy Warner – CEO: First off, on the advertising, I think, we said in previous calls that we were launching our version of the NCM model here in Brazil and it’s called Flix, and that is proving very successful within its initial stages. Once we developed a model of Brazil, it’s our intent to roll it to out in some of the other countries, and then regarding the digital rollout, we’re about 37% of our screens are digital – or it’s 39% at this time, and we continue to work with studios. We’ve signed some agreements, but we don’t have all the VPF agreements finalized and I apologize. I know, we’ve said we’re getting very close on VPF agreements, and like I said, we have some of them signed and we’re hoping to finish the others in the next few months, so – and get the digital rollout started.
Barton Crockett – Lazard Capital Markets: Okay. Just to follow-up on the advertising down there, do you – are you working in collaboration with other theatres down there, or is it really just your own thing?
Timothy Warner – CEO: Well, right now, it’s just our theatres as we develop the model, but it’s our intent that with bringing other theatres again on the similar model that NCM uses here in the U.S.
Barton Crockett – Lazard Capital Markets: Then, one final question, could you update us on where you see acquisition opportunities that’s been something you’ve been eyeballing, you and Regal over the next 18 months of so, any developments there?
Timothy Warner – CEO: Right, there’s – we continue to look for both opportunities, both in Latin America and then also of course here in the U.S. and there is a fairly good M&A environment in the U.S. now trying to reach agreement on price and values is always a challenge between the seller and buyer, but we continue to be optimistic that there will be M&A activities available to us.