National CineMedia Inc. Mar 12
Standard & Poors, March 2012
Abstract
Good market position in growing cinema advertising niche market Strong EBITDA margin High barriers to entry provided by long-term contracts with exhibitors Limited capital expenditure requirements Some revenue and EBITDA sensitivity to long-term declining theater attendance trends Limited cash balances at the operating subsidiary An aggressive dividend policy The rating on Centennial, Colo.-based theater advertising company National CineMedia (NCM) Inc. reflects our expectation that the company should be able to reduce leverage over the intermediate term through EBITDA growth, despite its aggressive dividend policy. We consider the company's business risk profile as "fair" (as per our criteria), based on its historically strong EBITDA margin and good market position. A high dividend payout and minimal cash retention by operating subsidiary NCM...
Companies mentioned in this report are: National CineMedia Inc.,National CineMedia LLC
Action: Review
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Research Type: Full Analysis
National CineMedia Inc.,National CineMedia LLC
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