Good evening, welcome to the National CineMedia, Inc. Q2 2021 earnings conference call. I would now like to turn the conference over to Ted Watson, Senior Vice President, Finance. Please go ahead.
Thank you, Kaylee. Good afternoon. I am 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 risk 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. 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. Now I'll turn the call over to Tom.
Thank you, Ted. Good afternoon, everyone. Welcome to our second quarter 2021 earnings call. I hope that you're all continuing to stay safe and are having a happy and healthy summer. During the call today, I'm going to provide a high-level update on our recovering cinema advertising business and the ongoing steps we've continued to take to balance cost containment with the need to quickly restart our business. I will also provide an update on our strategy to diversify and strengthen our marketing product offerings by expanding our online presence and consumer databases and analytics and increasing our reach and impression base from other out-of-home venues. Ted will provide more details about how we are managing our operating costs and our overall liquidity. As always, we'll be open for questions.
Summer moviegoing season is in full swing, and we've been very encouraged by the way advertiser demand has picked up with the box office success of several new releases. The strong openings of "A Quiet Place Part II," "F9," "Black Widow," and "Space Jam: A New Legacy" have all demonstrated that there's a significant pent-up demand to return to the communal big screen experience of the movie theater. Even films like "Black Widow" that have opened day-and-date with a streaming service have attracted large cinema audiences. With a very crowded film release schedule for the remainder of the year, the highest percentage of movie theater locations open since the pandemic began in March '20, and our ad commitment book building, we are very optimistic about the rest of 2021 and 2022.
While the various release strategy experience of traditional Hollywood studios and new tech video content producers continues to play out, there are strong signs emerging that lead us to believe that an exclusive theatrical window remains the best approach for content producers. Two of the highest domestic grossing movies of the year, "Quiet Place 2" and "F9," were released exclusively on the big screen. Positive press and other PR about the success of the cinema openings cost the producers nothing, yet has created huge incremental awareness that's also expected to provide meaningful marketing benefit in the upcoming streaming and other release windows. Combined with consumer awareness benefits and the significant lost revenue due to streaming-related piracy, we believe that it's becoming increasingly clear that studios are leaving money on the table with the day-and-date streaming strategy.
These realities may underlie recent announcements by many studios, including Warner Bros., that they'll maintain or reconsider an exclusive cinema release window for all or some of their films in 2022. There's also been a recent experimentation with an exclusive cinema release window by Netflix for certain of their feature-length films. This could be a trend that expands to other companies that have recently entered the streaming business. For the first time since the COVID-19 pandemic began in March of 2020, film release schedules have begun to normalize. Nearly all movie theaters have reopened, cinema audiences have begun to return. Most importantly, so too have our advertising clients. At the end of Q2, 97% of the theaters within our network were open, and a robust motion picture release schedule was in place, a stark contrast to the bleak conditions at the end of Q2 of 2020.
As U.S. movie theaters began to reopen and capacity restrictions began to be lifted in all major metropolitan areas during Q2, the number of ad impressions available to sell to our clients began to increase, resulting in a small amount of in-theater revenues versus none in Q2 last year when theaters were closed. While our Q2 revenue was still significantly below pre-pandemic levels, the trends are encouraging as future marketing budgets are starting to be allocated to cinema now that clients can see for themselves that our valuable, young, engaged movie audience has been trending towards critical mass once again. The sales momentum reflects all the hard work of our sales team over the past year, as they've kept cinema advertising and NCM, in particular, top of mind with advertisers. Even though we've had very few high-quality cinema ad impressions to sell.
Maintaining these client and agency relationships during the pandemic has paid significant dividends during this year's TV network upfront that are in their final stages. We've already completed numerous upfront commitments and are actively engaged in finalizing many other negotiations with major advertisers for marketing campaigns that will cover the broadcast year beginning this October. Approximately half of our top 20 upfront partners from 2019 are back and have closed deals with us for 2021, with another 25% expected to return to our screen by the end of Q3. We also continue to have promising discussions with many other new and existing clients across a wide array of key categories, including QSR, telecom, auto, entertainment, CPG, technology, finance, insurance, retail, and others. The upfront market demand that we're seeing may also be related to some changes in consumer TV viewing behavior caused by the pandemic.
High-quality video GRPs are becoming harder for marketers to find as TV consumers begin to favor SVOD versus ad-supported television. This reduced ad-supported TV viewership, combined with the continued aging of the traditional TV audience, is forcing ad-supported TV networks to increase pricing to secure the same level of upfront commitment. This creates a real opportunity for us as marketers must find their premium video GRPs elsewhere, and our CPMs are, in fact, more competitive. There also appears to be less excitement about the new fall TV programming schedule from the media buying community, as COVID-related production issues have reduced the number of new shows premiering on linear ad-supported TV, and networks have begun to put more of their programming investment behind series that will help them grow the subscription base of their emerging streaming networks.
This puts cinema in a very strong position with a crowded film slate for the rest of this year and well into 2022. While the recent news of the increase in new COVID cases, including the spread of the Delta variant, recent news regarding vaccine mandates, New York and other potential markets, potentially stricter COVID protections in the future may impact box office attendance and advertiser sentiment, but we remain excited for the box office later in the year.
Box office estimates for Q3 and Q4 of 2021 continue to be very positive for the major upcoming films set for release, including "Shang-Chi and the Legend of the Ten Rings," the next James Bond movie, "No Time to Die," "Halloween Kills," "Dune," "Ghostbusters: Afterlife," "Top Gun: Maverick," "Spider-Man: No Way Home," "Sing 2," and of course, "The Matrix 4." In addition to the recovery of our core cinema ad business, we're also making good progress on our strategy to create more robust consumer analytics database, and unique ways to bundle our highly coveted theater audiences with online impressions from our new and expanding digital platforms and other consumers that visit our other digital out-of-home partner locations. These new integrated marketing offerings will allow advertisers to engage movie fans anytime and anywhere. Throughout the COVID-19 pandemic, our Noovie digital ad offerings continued to attract new advertisers.
In addition to our owned and operated digital products and apps, we're continuing to execute on our plan to integrate with world-class consumer tech platforms, including YouTube and TikTok, through exclusive partnerships that allow us to sell advertising alongside the compelling entertainment content that our Gen Z and millennial audiences love. Our advertising on YouTube is an ideal example of a complementary digital expansion, as we are now working with brands like pharma and QSR categories to run their ads alongside premium brand safe movie content like trailers and fan favorite movie content online across the top social video platforms, which included a seven-figure deal in particular in Q2. We've just also started a new TikTok custom social influencer offering that we've developed in a unique partnership with a digital specialty group, RAD Intelligence.
We anticipate that this new offering will be particularly successful on the local side, as it gives our local team an easy and affordable way for small business advertisers to participate in one of the world's biggest social platforms through NCM, and to bundle it with our on-screen ads to create a powerful marketing bundle to reach young consumers. Our digital offerings also provide valuable consumer data. Our ultimate goal is to become the premier source of movie-related consumer data. As such, we have increased our focus on the aggregation of highly valuable consumer data we collect both from our consumer-facing apps, such as Noovie Trivia and Noovie ARcade, and also from movie ticketing data in partnership with the founding member exhibitor.
These important movie ticket audience data sources are expected to grow our datasets to 300 million by year-end, which will greatly expand our ability to create more robust targeting solutions for advertisers and to create custom closed-loop attribution measurement for brands and movie studios alike. Our growing industry position as the movie audience experts will put us in an ever-stronger competitive position with TV and larger digital advertising platforms and is an important part of supporting our premium CPM value proposition. We're also continuing to expand our new digital out-of-home group, which was created to allow brands to access a unique combination of theater audiences and consumers in a variety of venues like supermarkets, convenience stores, restaurants, and office buildings.
Although this is still very much an emerging business for us, we're seeing a growing pipeline of commitments from brands and categories, including CPG, healthcare, education, professional and financial services, government, travel and tourism, and insurance. We also only recently expanded our digital out-of-home network to include some exciting new venues, including our new Noovie On-Campus network Powered by Trooh, which offers brands a unique way to reach young Gen Z movie fans and point-of-market entry consumers in college and university campus locations where they spend the most time, including high-traffic, non-academic commercial spaces such as campus retail and bookstores, student centers and cafeterias, and athletics and recreation areas. We're also exploring new entertainment marketing arenas with an exclusive e-sports advertising and content monetization agreement, an e-sports community aggregator to create new ways for brands to capitalize on that cultural phenomenon.
We mentioned during our Q1 call, our new digital out-of-home and digital social video platform inventory also provides us with two initial entry points into the programmatic buying marketplace, which is an important step in our strategy to make all our NCM offerings easier to buy. Our capital investments in our new cinema advertising management system that was launched in Q1 is laying the foundation for programmatic access to our on-screen inventory as well, which we expect will create higher inventory utilization and other monetization opportunities for our in-theater inventory in the future. While we're still in the early days of this recovery, as local multiplexes begin to sell out auditoriums showing the new film openings, it's clear that consumer demand for the cinema experience continues strong.
As previously described, there are also signs that market demand for our high-quality video TRPs may be on the rise as TV declines. While our business recovery is clearly underway and revenue levels and related accounts receivable balances are beginning to build, our monthly cash flow burn rates remain elevated, and there will be working capital timing differences associated with the payment of operating and debt service costs and collection of ad sales accounts receivable. Thus, we've implemented initiatives to manage our liquidity, including approval from our board and founding members of a short-term revolving debt facility between NCM Inc. and NCM LLC to bridge short-term working capital deficits that Ted will get into more detail shortly.
We're also continuing to balance the need to continue certain cost reduction measurements with the need to keep our talented NCM team in place and motivated to quickly ramp up our business as advertiser demand increases. Our sales teams are now back to full strength, and we've brought back some furloughed staff that are needed to support the increased contract volume levels. We've begun to reinstate some of our temporary pandemic salary reductions. We also expect to implement a return-to-office plan for our Denver corporate office and regional offices in Los Angeles, Chicago, and New York City shortly. I know that these staffing plans may not be happening as quickly as all of us would like, so I remain very grateful to our entire NCM team for their incredible resilience, dedication, and support.
NCM has not only survived the worst of the pandemic because of everyone's hard work, the company is very well-positioned for success in a post-pandemic world. I'd also like to acknowledge the support of our board, our exhibitor partners, and our advertising clients and their agents, and sincerely thank them for their continued support as we begin to emerge from this historic time together stronger than ever. While uncertainty related to the COVID-19 pandemic remains, we believe that we're well-positioned to reestablish the growth momentum that we had created before the pandemic started. We look forward to a continued recovery through the remainder of the year and to much better times ahead. With that, I'll now turn the call over to Ted to discuss more details about our financials, cost-saving measures, liquidity position, and outlook. Ted?
Thanks, Tom. While the second quarter saw the industry begin to emerge from the pandemic with many seating restrictions lifted, mask mandates removed, and the release of multiple successful movie titles, our network was still significantly impacted during the second quarter with attendance down 75% compared to 2019, but up meaningfully compared to almost no attendance in Q2 2020. As a result, we recorded $14 million of Q2 revenue, up 250% versus Q2 2020, but still well below a more normalized 2019 level, when Q2 revenue was $110.2 million. Given the continued significant impact of the COVID-19 pandemic on our business throughout the current quarter, an analysis of our revenue and adjusted OIBDA in Q2 versus prior periods is not meaningful.
Therefore, I will continue to focus much of my comments today on our current liquidity position, our continued success in limiting our monthly cash flow burn rate, and thoughts on how we see our business recovering in the back half of 2021. Total Q2 adjusted OIBDA was negative $18.7 million compared to negative $12.7 million in Q2 of 2020. This lower Q2 adjusted OIBDA reflects higher founding member theater access fees associated with a significant increase in theater attendance during the quarter. This lag between the increase in theater attendance and increases in ad revenue was related to media buyers wanting to confirm the critical mass of ad impressions before they made meaningful ad commitments.
As attendance levels did not begin to build until late in Q2, we were only able to compete for scatter budgets late in the quarter, and we were unable to secure any material 2021 upfront commitments made last summer while movie theaters were closed. As Tom mentioned, we expect that this lag will start to improve in Q3 as we begin to secure more scatter budgets and will improve even more meaningfully in Q4 as we benefit from the 2021-2022 upfront that is just wrapping up. Our Q2 average cash burn rate was approximately $13.7 million per month during the quarter, which we expect to be the high watermark for the cash burn rate before decreasing in Q3 to an average of $11 million-$12 million per month and continue towards positive cash flow in Q4.
During Q2, as the theater attendance began to increase, we started to bring staff back and restore compensation of some staff members to pre-pandemic levels. As of today, 44% of our employee base continues to be furloughed or have salary reductions of up to 40%. These continued cost reduction measures reduced our core operating expense in Q2 to $5.7 million per month compared to our pre-COVID run rate of $9.5 million per month, or a savings of 40%. As we have discussed in the past, due to our high growth operating margins, we will achieve operating cash flow breakeven after debt service on an accrual basis when our quarterly revenue reaches approximately 50% of 2019 levels, which we continue to believe will be achieved as we exit Q3 of this year.
For the first six months, our total 2021 revenue was $19.4 million versus $68.7 million in 2020, a decline of $49.3 million driven by the COVID-19 pandemic impacting all of 2021 versus only impacting the 2020 six-month period beginning in mid-March. Adjusted OIBDA decreased to a negative $34.9 million from $1.7 million in 2020, again, driven primarily by the timing of the COVID-19 pandemic beginning in mid-March 2020 versus all of 2021. For the second quarter, we reported a GAAP loss per diluted share of $0.28 versus a loss per diluted share of $0.18 in Q2 2020. As adjusted to exclude the impairment of long-lived assets, net loss per share for the second quarter 2021 would have remained the same, and the net loss per share for the second quarter 2020 would have decreased to $0.17.
The net loss per share in 2021 and 2020 was again the result of significant network attendance declines resulting from the impact of the COVID-19 pandemic on the cinema business. For the six months of 2021, we reported a GAAP diluted loss per share of $0.53 compared to an earnings per diluted share of $0.22 in the first six months of 2020. For the first six months of 2021, capital expenditures were $3.4 million versus $5.5 million invested in 2020. This decrease is related to the halt of all non-essential capital spending once the pandemic started. Total capital expenditures are expected to be approximately $7 million-$7.5 million in 2021. In the second quarter and for the first six months of 2021, we recorded $200,000 of integration and other encumbered theater payments, primarily from AMC Carmike theaters versus $0 and $1.4 million respectively last year.
The AMC integration payments are based on what NCM could have earned had advertising been sold on those theaters by our sales teams. As a reminder, these integration and other encumbered theater payments are added to adjusted OIBDA for debt compliance and partnership cash distribution purposes but are not included in reported revenue or adjusted OIBDA, as they are recorded as a reduction to net intangible assets on the balance sheet. Moving to our balance sheet, our total debt net of cash at NCM LLC at the end of Q2 2021 increased $116 million to $1.01 billion versus $894 million at the end of Q2 2020.
Our average interest rate on all debt was approximately 5.6% at the end of Q2 compared to 4.9% at the end of Q2 2020, including our $479 million floating rate term loan bank debt and revolving credit facility that had a rate of approximately 5.2%. Excluding revolver balances, 67% of our total debt outstanding at the end of Q2 2021 had a fixed interest rate. NCM LLC's current cash balances are $89.3 million versus our liquidity covenant that requires a minimum cash balance of $55 million. Due to the timing difference between the collection of NCM LLC's increasing accounts receivable and payment of various expenses, including debt service, as Tom mentioned, we have received board approval and required founding member approval to enter into a short-term revolving debt facility in the amount of $20 million between NCM Inc. and NCM LLC.
This will bridge working capital deficits and provide short-term working capital loans as NCM LLC rebuilds its advertising revenue base and collects related accounts receivable to ensure NCM LLC maintains compliance with the financial covenants required by its debt obligations. Our board of directors has authorized an NCM Inc. quarterly cash dividend of $0.05 per share of common stock. The dividend will be paid on September 6th, 2021, to stockholders of record on August 23rd, 2021. This quarterly dividend will result in a current yield of 6.5% based on today's closing share price of $3.08 a share. The NCM Inc. cash balance will be $46.3 million after payment of the most recent dividend, and thus, our $0.05 dividend can be paid for the next 2.5 years with no additional NCM LLC distributions to NCM Inc.
This is well beyond the NCM LLC distribution restrictions contained in the recent bank debt amendment that terminate at the end of Q3 2022, subject to certain limitations. This is also not expected to be impacted by our planned short-term revolving debt facility between NCM Inc. and NCM LLC that will be used to fund short-term working capital needs through its March 31st, 2022 maturity date. NCM Inc. intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the board of directors. The two and a half years of dividend cushion is considerably longer than we have historically targeted. We will continue to monitor this cushion and related dividend level consistent with our intention to distribute over time, substantially all our free cash flow resulting from distributions from NCM LLC once they resume.
As always, 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. This includes the impacts to NCM LLC related to the COVID-19 pandemic and restrictions under the NCM LLC credit agreement, and the current availability and funding of the unsecured revolving loan agreement between NCM Inc. and NCM LLC. Finally, while market conditions are improving, there continues to be a number of uncertainties related to the impact of the COVID-19 pandemic on our business, making it difficult to provide a reliable future revenue and adjusted OIBDA guidance.
With that said, I will conclude my comments with a few general observations regarding our financial condition and expected business performance for the back half of the year. Based on our current financial projections, I would expect our revenue exiting Q3 to be on a run rate of approximately 50% compared to 2019 levels and be on break even on a cash flow basis from an accrual standpoint. As mentioned, Q3 revenue will be almost all scatter market driven, given our limited Q3 upfront commitments due to our inability to participate in last year's upfront marketplace because of the theater closures and uncertainty about the film release schedule. Beginning in Q4, we expect increasing network attendance and a return to more normalized scatter sales.
This, combined with the Q4 upfront commitments that we are in the process of securing, will be a significant driver of higher Q4 revenue and positive Q4 adjusted OIBDA after debt service. By the end of 2021, we expect revenue to be trending back towards pre-pandemic revenue levels, assuming the theatrical release schedule remains firm, box office attendance continues to rebound, and the upfront is consistent with the company's expectations. This concludes our prepared remarks, and we'll now open up the lines for questions. Operator?
Your first question comes from Eric Wold with B. Riley Securities. Please go ahead.
Thank you. Thank you, good afternoon, everybody. A few questions just on what you're seeing out there. I guess, starting with the scatter market. Maybe talk about any patterns or trends you're seeing as that starts to come back in terms of the type of businesses that are coming back faster than others and maybe some types of businesses that aren't getting involved yet, regional strength around the country. Is there anything that gives you optimism in terms of the underlying trends or potential even pause on the strength of that recovery in scatter?
This is Tom. The scatter market's actually been good. Obviously, it's very competitive given what's going on and all the optionality there is. There's been a tremendous amount of focus from agencies and clients on digital and AVOD from the biggest players. As you know, all the big media companies have opened up AVOD services. They're selling those AVOD impressions aggressively. I'm really happy with how far we've come on the scatter side. Historically, we've sold about 60% of our business in the upfront market. Scatter's coming along nicely. I can't say that any particular category is doing any less than it normally would. I will tell you that the traditional advertisers, particularly the entertainment clients that we support on the streaming side, the insurance companies, CPG, all those companies are coming back, including our biggest advertisers. I'm quite happy about that.
The way I measure this is to look at our future pipeline, and what we have building up in Q3 and Q4, and handicapping that against the number of actual data points that are leading to contracts versus in-contract discussions.
Which I'm quite happy about so far in Q3 and Q4. It leads me to feel there's a lot of strength across really all of our customer base. I would say there's really only a handful of clients that are still on the fence. We're really feeling good about our current relationship with brands and agencies.
Thank you. Your comment, obviously, about expecting to exit Q3 on a 50% run rate and then ramping in Q4, I'm assuming a lot of that is driven by the contracts you're putting in place now, the visibility from the upfront and kind of the willingness of these advertisers to commit out there. I guess, can you give us a sense of just the tone you're hearing during the upfront, the tone you're hearing from the advertisers in terms of where their budgets are, what they might look like versus 2019, and kind of in general, how they're feeling about in-theater versus other segments. Lastly, kind of price sensitivity. You mentioned that linear is taking up price to try to offset their loss of business. How is that reflecting on your pricing and what have you been doing in the upfront around CPMs?
There's a lot of questions built into that question. On the CPM front, on the upfront side, I would say we're holding our own versus historical upfront levels. It's scatter where we have to be a little more competitive, and that's just part of the business right now. As we recover, we're being a little more aggressive on a case-by-case basis. For the most part, I look forward to really Q4 and 2022 as having CPM levels that are relatively comparable to where we've been. Honestly, it hasn't really been an issue about having to discount our inventory. It's much more just making sure we can deliver the impressions reliably to the agencies and to the brands and making sure that they're continuing to build their confidence levels with us.
We're seeing that every week, every month, especially going in towards the back half of Q3 into Q4.
Yeah. Eric, I would just add to that, as Tom said, the discussions really aren't around price. If there's any point that the advertisers want to focus on, it's flexibility. Again, just given the uncertainty with the pandemic, that if things were to go south, that they have the ability to shift their advertising dollars. That's probably where the bigger focus of conversation's been.
Just to clarify that, Ted, when you say shift their advertising dollars, that means shift to another period or potentially shift out of their contracted amount?
Either/or, right? If they think they can shift it further down with cinema, they would do that. If they need to be able to pull it out, that they could do that as well.
Got it. Thank you both.
Your next question is from Jim Goss with Barrington Research.
Hi, this is Pat on for Jim. Just a couple other questions on what you're seeing with upfront. I was just wondering, on selling the Platinum spot, what you're sort of seeing there in terms of industries that are maybe good partners with that in the upfront or ones that aren't. Any sort of commentary on your first upfront being able to actually sell that?
Well, as you know, we had our very first Platinum engagement in 2019 in Q4, which truly seems like a long time ago. I can tell you that the interest in Platinum is still very strong. We're optimistic about the fourth quarter. It's still obviously a very expensive unit, but we're having very good conversations with many advertisers about their interest in Platinum as part of our post-show package. I can't give any specifics. Hopefully, maybe when we get on our call next quarter, we'll be able to talk to you more specifically about that particular product. It's definitely re-resonating with the ad community, and we're thankful for that because it was a key part of our Q4 2019 record quarter.
Okay, thanks. Also a question on flexibility. I guess to what extent do advertisers have an interest in maybe focusing on, I guess, specific subset of screens, whether it's premium format screens or things of that nature? There seems to be a particular area of focus for consumers going back to cinemas.
For the most part, our advertisers and agency brands buy the full national network. That's our core national business. Obviously, we have a separate local and regional business where people can be more selective on the city. There's not any kind of a trend towards people buying a select group of premium national screens. That trend that you're talking about, we're not seeing that, no.
Okay. Thank you.
Your next question comes from Ben Brostoff with Brostoff Capital. Mr. Brostoff, your line is open.
Hey, guys. Thanks for taking my question. Wanted to ask about how fair it is to see theater attendance as a proxy for advertiser confidence. What I mean by that is, you look at F9 or Black Widow or A Quiet Place Part II, all those seem to have pretty good turnout, $50 million, $60 million, $70 million, $80 million. Is it going to take a several hundred million dollar-type film, like a Top Gun to actually really get that critical mass you talked about in the opening remarks? Just hearing some commentary on that would be great. Thanks again.
I think it would be helpful to have some real blockbuster movies, but it's more important that we have consistent movie attendance that is reliable. When a brand wants to commit money to impressions, they want to make sure they're really going to be there, and they're really going to run. We've done a pretty good job, I think, so far this summer, having a relatively consistent theatrical schedule. People like buying our platform knowing that the impressions are going to get delivered and there's going to be really large reach. Yes, of course, Top Gun and the new Marvel movie will help achieve that. The more critical thing is that week in and week out, flight in and flight out, that we have enough scale to actually meet the marketing needs of clients. It won't just be one movie.
It will be great news if "Top Gun" is a home run, which everyone seems to think it will be. It's much more important that we have consistent week-to-week, month-to-month impression delivery. It's really the strength of the whole schedule and the attendance, to answer your question.
Thank you.
Sure.
This concludes our question and answer session. I would like to turn the conference back over to Tom Lesinski for any closing remarks.
Okay, great. Thank you for your questions. As I mentioned previously, we're very well-positioned for the future as audiences and advertisers return to the movies. Progress we're making to execute all of our business strategies, combined with an incredibly strong slate for the remainder Q of 2021 and into 2022, will ensure a really continued recovery and growth of our business. I once again want to thank all of NCM's team's hard work to reunite brands with the power of cinema, expand our cinema network, strengthen our digital offerings, and of course, diversify our advertising inventory beyond the big screen. I'd also like to thank all of our cinema and advertising client partners, our shareholders and lenders for their continued support and patience, and of course, our founding members.
We truly appreciate you joining this call and hope that everyone continues to stay safe and healthy, and we look forward to seeing you again at the movies. Thank you.
This conference call has now concluded. Thank you for attending today's presentation. You may now disconnect.