Jim Goss: All right. Thanks.
Sean Gamble: Thanks, Jim.
Operator: Thank you. The next question is coming from Steve Cahall of Wells Fargo. Please go ahead.
Omar Mejias: Hi. Good morning, guys. This is Omar. Just a quick one. Maybe, Sean, first, in the event that several films move out of 2024, and this is a hypothetical scenario, and box office is down year-on-year, what levers can you pull to lower your fixed cost structure? And how are you better positioned now to deal with production disruptions versus pre-pandemic? And Melissa, you alluded to market share in the U.S. being down sequentially. I know you talked about just the film slate didn’t resonate with your audiences? How should we think about this slate in 4Q? And how does that sort of aligns with your demographics and your footprint? Any color there would be helpful? Thank you.
Sean Gamble: Thanks for the questions, Omar. As far as next year goes, I guess you’re kind of talking about a scenario where in the event box office is down, how would we react to that from a fixed structure in general? I would say, we’ve certainly developed and enhanced our ability to flex and adapt to a more dynamic environment over the course of the pandemic. We’ve just seen a lot of the ups and downs month-to-month, quarter-to-quarter, and that’s necessitated a lot of flexing in order to maintain operating efficiencies and maximize cash flows and margins. So I think we’ve definitely strengthened and honed our muscles in that regard. And we’ve continued to operate that way. It’s another reason I’d say for the types of results that we’ve been able to deliver this year in terms of our financial performance.
So I feel pretty confident in our ability to navigate through a scenario like that, if it should play forward. To be candid, for our own internal planning purposes, like we always do, we’re running a range of scenarios of how things could play out so that we’re well ahead of that and ready to respond to next year. So in terms of varying degrees of volume, and then we’ll hone those in as we have more definitive information on how that plays out. So I feel really good about our capability to navigate through, deal with those headwinds and prosper long term. Clearly, part of the effort in that also goes. We want to make sure that we’re not just cutting way back only to add right back again, as things ramp up. So another element to that is what are we looking at over the horizon?
Is this just really a short-term blip or do we think it could be a little bit more extended? So that also will come into play in terms of some of the decision making we go through in that process.
Melissa Thomas: And then in terms of market share, Omar, we feel really good about the share we were able to deliver in the quarter. And as you know, our market share will fluctuate quarter-to-quarter based on film mix. And if you look on trailing 12-month basis, as we said previously that we’re looking to maintain 100 basis points of share gains relative to pre-pandemic and we’re still on track in that regard. So we feel really good about where we’re at from a share perspective. As you look into Q4 and that film slate, we are already seeing through October share that our market share has picked back up. So we do think that that Q4 film slate lends itself a bit better to our circuit than what we saw in the third quarter.
Omar Mejias: Great. Thank you, guys. I appreciate it.
Sean Gamble: Thank you.
Operator: Thank you. The next question is coming from Stephen Laszczyk of Goldman Sachs. Please go ahead.
Stephen Laszczyk: Great. Thank you for taking the questions. Maybe just a follow up on the earlier question on consumers continuing to trade up and what feels like some price and elasticity amongst the consumer base. Could you perhaps update us on your thoughts on the opportunity to take increase ticket prices? I appreciate it’s a little bit of a balance. But it seems like there might be some incremental opportunity there just as the success we’re seeing elsewhere in the business could potentially translate. And then on Cineworld and Regal, I’m curious if you talk about any change in the competitive environment you’ve seen since they’ve emerged from bankruptcy, and perhaps how that’s factored into any expectations for market share into next year? Thank you.
Melissa Thomas: Thanks, Stephen. I’ll take the ticket price question. So as we think broadly looking forward, we are going to continue to leverage data and analytics to find the right ticket price that maximizes overall attendance in box office. But we do see further opportunity on the strategic pricing front. Now the extent of which that opportunity will be, that will be based on our analytics and how consumer elasticity has evolved over time. But we do feel good about the opportunity there. The one thing to keep in mind is that film mix will also always play a role in our reported average ticket prices going forward. So the extent of child tickets, premium formats, especially content such as multicultural films and concerts that have higher ticket prices associated with them, we’ll have to keep that in mind as well.
Sean Gamble: And just real quick, I don’t think there’s too much to say there. Obviously, it’s still pretty early since their emergence from bankruptcy. I imagine they’re still getting their arms around everything. And tough to kind of predict how that will affect share next year. I think our focus is just continue to look at how do we continue to drive our business and drive growth of our circuit? Overall, really that will lend itself to our overall performance on a go-forward basis. Obviously, there’s vary dynamics that can affect overall share results, but it boils down to our attendance growth and our overall efficiencies in terms of our results and potential.
Stephen Laszczyk: Got it. Thank you very much.
Melissa Thomas: Thank you.
Sean Gamble: Thanks, Steve.
Operator: Thank you. At this time, I’d like to turn the floor back over to Mr. Gamble for closing comments.
Sean Gamble: All right. Well, thank you all again for joining us this morning. In closing, I just like to say that I am incredibly proud of our Cinemark team and the tremendous progress we’ve made over the past few years navigating our industry’s recovery and advancing our strategic initiatives. As we’ve talked about, the significant impact of which is reflected in our financial results. We are well positioned at Cinemark to handle any near-term headwinds in product flow that had been caused by the Hollywood strikes. And we believe our performance year-to-date provides a window into our strong growth potential as film volume fully recovers over the coming years. So with that, we look forward to speaking again following our fourth quarter results. Thank you.
Operator: Ladies and gentlemen, thank you for your participation and interest in Cinemark Holdings. You may disconnect your lines at this time or log off the webcast, and enjoy the rest of your day.
