National Amusements Inc.

Overview Key strengths Key risks Debt collateralized with shares in Paramount. Dependent on dividend distributions from Paramount. Paramount?s dividend that provides NAI with meaningful annual cash inflows of $60 million. Changes to the film distribution model that could prevent recovery to pre-pandemic box office attendance. High leverage and aggressive financial policy. Negative consolidated cash flow before dividends. Over the past nine months, domestic audiences have returned to cinemas for tent-pole films such as ?Spider-Man: No Way Home?, ?The Batman?, ?Doctor Strange in the Multiverse of Madness?, and ?Top Gun: Maverick?. We expect industrywide domestic box office revenue to rebound to $7.5 billion-$8 billion in 2022 and the $9 billion area in 2023. Likewise, we forecast NAI?s total revenue to improve

...National Amusements Inc.'s (NAI) theater revenues will improve as attendance recovers from the COVID-19 pandemic. Over the past nine months, domestic audiences have returned to cinemas for tent-pole films such as "Spider-Man: No Way Home", "The Batman", "Doctor Strange in the Multiverse of Madness", and "Top Gun: Maverick". We expect industrywide domestic box office revenue to rebound to $7.5 billion-$8 billion in 2022 and the $9 billion area in 2023. Likewise, we forecast NAI's total revenue to improve to nearly 75% of 2019 levels in 2022 and about 90% in 2023, supported by elevated average ticket pricing, recovering attendance,...

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