Cinemark Holdings, Inc. Reports Fifth Consecutive Year of Record Worldwide Revenues and Dividend Increase

Increases Dividend 6% to $1.44 per Annum

PLANO, Texas--(BUSINESS WIRE)-- Cinemark Holdings, Inc. (NYSE: CNK), one of the largest motion picture exhibitors in the world, today reported results for the three and twelve months ended December 31, 2019 and announced that its Board of Directors has increased its cash dividend by $0.08 to $1.44 per share of common stock on an annualized basis, effective immediately. The fourth quarter dividend of $0.36 per share of common stock will be paid on March 20, 2020 to stockholders of record on March 6, 2020.

Cinemark Holdings, Inc.’s total revenues for the three months ended December 31, 2019 was $788.8 million compared to $798.6 million for the three months ended December 31, 2018. For the three months ended December 31, 2019, admissions revenues were $434.2 million and concession revenues were $275.0 million. For the three months ended December 31, 2019, attendance was 63.8 million patrons, average ticket price increased 3.2% to $6.81 and concession revenues per patron increased 4.6% to $4.31.

Net income attributable to Cinemark Holdings, Inc. for the three months ended December 31, 2019 increased to $26.3 million from $19.4 million for the three months ended December 31, 2018. Diluted earnings per share for the three months ended December 31, 2019 was $0.22 compared to $0.17 for the three months ended December 31, 2018.

Adjusted EBITDA for the three months ended December 31, 2019 was $178.3 million compared to $198.1 million for the three months ended December 31, 2018. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

“We are extremely pleased to report our fifth consecutive year of record global revenues, as well as our fifth consecutive annual dividend increase,” stated Mark Zoradi, Cinemark’s Chief Executive Officer. “Continued benefits derived from our strategic initiatives enabled us to surpass North American industry box office results by 200 bps in 2019, and our consistent financial strength gave our Board of Directors confidence to approve an $0.08 increase to our dividend to $1.44 per annum, which has now grown 33% over the past five years.”

Cinemark Holdings, Inc.’s total revenues for the twelve months ended December 31, 2019 increased 1.9% to $3,283.1 million from $3,221.8 million for the twelve months ended December 31, 2018. For the twelve months ended December 31, 2019, admissions revenues were $1,805.3 million and concession revenues increased 4.7% to $1,161.1 million. For the twelve months ended December 31, 2019, attendance was 279.6 million patrons, average ticket price was $6.46 and concession revenues per patron increased 5.6% to $4.15.

Net income attributable to Cinemark Holdings, Inc. for the twelve months ended December 31, 2019 was $191.4 million compared to $213.8 million for the twelve months ended December 31, 2018. Diluted earnings per share for the twelve months ended December 31, 2019 was $1.63 compared to $1.83 for the twelve months ended December 31, 2018.

Adjusted EBITDA for the twelve months ended December 31, 2019 was $745.0 million compared to $781.5 million for the twelve months ended December 31, 2018. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release and at investors.cinemark.com.

As of December 31, 2019, the Company’s aggregate screen count was 6,132 and the Company had commitments to open 13 new theatres and 150 screens in 2020 and 10 new theatres and 93 screens subsequent to 2020.

Conference Call/Webcast – Today at 8:30 AM ET

Telephone: via 800-374-1346 or 706-679-3149 (for international callers).

Live Webcast/Replay: Available live at https://ir.cinemark.com. A replay will be available following the call and archived for a limited time.

About Cinemark Holdings, Inc.

Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theatre companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates 554 theatres with 6,132 screens in 42 states domestically and 15 countries throughout South and Central America. Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD - the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://investors.cinemark.com/

Forward-looking Statements

This press release includes “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. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to future revenues, expenses and profitability, the future development and expected growth of our business, projected capital expenditures, attendance at movies generally or in any of the markets in which we operate, the number or diversity of popular movies released and our ability to successfully license and exhibit popular films, national and international growth in our industry, competition from other exhibitors and alternative forms of entertainment and determinations in lawsuits in which we are defendants. You can identify forward-looking statements by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions which are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. In evaluating forward-looking statements, you should carefully consider the risks and uncertainties described in the “Risk Factors” section or other sections in the Company’s Annual Report on Form 10-K filed February 21, 2020. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 
 
 
 

Cinemark Holdings, Inc.
Financial and Operating Summary
(unaudited, in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Statement of income data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

434,280

 

 

$

445,063

 

 

$

1,805,321

 

 

$

1,834,173

 

Concession

 

 

275,000

 

 

 

277,550

 

 

 

1,161,083

 

 

 

1,108,793

 

Other

 

 

79,523

 

 

 

75,863

 

 

 

316,695

 

 

 

278,769

 

Total revenues

 

 

788,803

 

 

 

798,476

 

 

 

3,283,099

 

 

 

3,221,735

 

Cost of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film rentals and advertising

 

 

244,139

 

 

 

241,513

 

 

 

1,003,832

 

 

 

999,755

 

Concession supplies

 

 

49,080

 

 

 

46,397

 

 

 

206,441

 

 

 

180,974

 

Salaries and wages

 

 

101,770

 

 

 

97,863

 

 

 

410,086

 

 

 

383,860

 

Facility lease expense

 

 

83,565

 

 

 

79,443

 

 

 

346,094

 

 

 

323,316

 

Utilities and other

 

 

117,501

 

 

 

110,204

 

 

 

474,711

 

 

 

448,070

 

General and administrative expenses

 

 

46,382

 

 

 

41,459

 

 

 

173,384

 

 

 

165,173

 

Depreciation and amortization

 

 

64,360

 

 

 

67,506

 

 

 

261,155

 

 

 

261,162

 

Impairment of long-lived assets

 

 

11,619

 

 

 

27,352

 

 

 

57,001

 

 

 

32,372

 

Loss on disposal of assets and other

 

 

3,951

 

 

 

10,036

 

 

 

12,008

 

 

 

38,702

 

Total cost of operations

 

 

722,367

 

 

 

721,773

 

 

 

2,944,712

 

 

 

2,833,384

 

Operating income

 

 

66,436

 

 

 

76,703

 

 

 

338,387

 

 

 

388,351

 

Interest expense (1)

 

 

(24,904

)

 

 

(27,269

)

 

 

(99,941

)

 

 

(109,994

)

Loss on debt amendments and refinancing

 

 

 

 

 

 

 

 

 

 

 

(1,484

)

Interest income

 

 

2,527

 

 

 

2,753

 

 

 

12,589

 

 

 

10,614

 

Foreign currency exchange gain (loss)

 

 

1,391

 

 

 

(4,713

)

 

 

(3,394

)

 

 

(11,660

)

Distributions from NCM

 

 

3,705

 

 

 

3,221

 

 

 

12,873

 

 

 

15,389

 

Interest expense - NCM

 

 

(14,444

)

 

 

(4,849

)

 

 

(28,624

)

 

 

(19,724

)

Equity in income of affiliates

 

 

7,888

 

 

 

10,034

 

 

 

41,870

 

 

 

39,242

 

Income before income taxes

 

 

42,599

 

 

 

55,880

 

 

 

273,760

 

 

 

310,734

 

Income taxes

 

 

15,760

 

 

 

35,837

 

 

 

79,912

 

 

 

95,429

 

Net income

 

$

26,839

 

 

$

20,043

 

 

$

193,848

 

 

$

215,305

 

Less: Net income attributable to noncontrolling interests

 

 

505

 

 

 

600

 

 

 

2,462

 

 

 

1,478

 

Net income attributable to Cinemark Holdings, Inc.

 

$

26,334

 

 

$

19,443

 

 

$

191,386

 

 

$

213,827

 

Earnings per share attributable to Cinemark Holdings, Inc.'s common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.22

 

 

$

0.17

 

 

$

1.63

 

 

$

1.83

 

Diluted

 

$

0.22

 

 

$

0.17

 

 

$

1.63

 

 

$

1.83

 

Diluted weighted average shares outstanding

 

 

116,613

 

 

 

116,383

 

 

 

116,606

 

 

 

116,342

 

Other Financial Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$

178,295

 

 

$

198,092

 

 

$

745,045

 

 

$

781,517

 

 
 
 
 

Other Operating Data
(unaudited, in thousands)

 

As of

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Balance sheet data (unaudited, in thousands):

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

488,313

 

 

$

426,222

 

Theatre properties and equipment, net

 

$

1,735,247

 

 

$

1,833,133

 

Total assets

 

$

5,828,017

 

 

$

4,481,838

 

Long-term debt, including current portion, net of unamortized debt issue costs

 

$

1,777,937

 

 

$

1,780,611

 

Equity

 

$

1,448,322

 

 

$

1,408,570

 

 
 
 
 

Segment Information
(unaudited, in millions, except per patron data)

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Three Months Ended

December 31,

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

 

 

 

 

Constant

Currency (1)

 

 

Three Months Ended

December 31,

 

 

 

 

 

 

 

2019

 

 

2018

 

 

%

Change

 

 

2019

 

 

2018

 

 

%

Change

 

 

2019

 

 

%

Change

 

 

2019

 

 

2018

 

 

%

Change

 

Admissions revenues

 

$

364.9

 

 

$

369.7

 

 

 

(1.3

)%

 

$

69.3

 

 

$

75.4

 

 

 

(8.1

)%

 

$

77.6

 

 

 

2.9

%

 

$

434.2

 

 

$

445.1

 

 

 

(2.4

)%

Concession revenues

 

$

231.5

 

 

$

231.1

 

 

 

0.2

%

 

$

43.5

 

 

$

46.5

 

 

 

(6.5

)%

 

$

48.0

 

 

 

3.2

%

 

$

275.0

 

 

$

277.6

 

 

 

(0.9

)%

Other revenues

 

$

53.7

 

 

$

50.5

 

 

 

6.3

%

 

$

25.9

 

 

$

25.4

 

 

 

2.0

%

 

$

29.5

 

 

 

16.1

%

 

$

79.6

 

 

$

75.9

 

 

 

4.9

%

Total revenues

 

$

650.1

 

 

$

651.3

 

 

 

(0.2

)%

 

$

138.7

 

 

$

147.3

 

 

 

(5.8

)%

 

$

155.1

 

 

 

5.3

%

 

$

788.8

 

 

$

798.6

 

 

 

(1.2

)%

Attendance

 

 

43.3

 

 

 

46.4

 

 

 

(6.7

)%

 

 

20.5

 

 

 

21.0

 

 

 

(2.4

)%

 

 

 

 

 

 

 

 

 

 

63.8

 

 

 

67.4

 

 

 

(5.3

)%

Average ticket price (2)

 

$

8.43

 

 

$

7.97

 

 

 

5.8

%

 

$

3.38

 

 

$

3.59

 

 

 

(5.8

)%

 

$

3.79

 

 

 

5.6

%

 

$

6.81

 

 

$

6.60

 

 

 

3.2

%

Concession revenues per patron (3)

 

$

5.35

 

 

$

4.98

 

 

 

7.4

%

 

$

2.12

 

 

$

2.21

 

 

 

(4.1

)%

 

$

2.34

 

 

 

5.9

%

 

$

4.31

 

 

$

4.12

 

 

 

4.6

%

Average screen count

 

 

4,631

 

 

 

4,581

 

 

 

 

 

 

 

1,462

 

 

 

1,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,093

 

 

 

6,031

 

 

 

 

 

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

Constant

Currency (1)

2019

 

 

2019

 

 

2018

 

Film rentals and advertising

 

$

209.3

 

 

$

205.9

 

 

$

34.8

 

 

$

35.7

 

 

$

38.9

 

 

$

244.1

 

 

$

241.6

 

Concession supplies

 

 

39.3

 

 

 

36.5

 

 

 

9.9

 

 

 

9.9

 

 

 

10.9

 

 

 

49.2

 

 

 

46.4

 

Salaries and wages

 

 

83.8

 

 

 

79.4

 

 

 

18.0

 

 

 

18.5

 

 

 

20.7

 

 

 

101.8

 

 

 

97.9

 

Facility lease expense

 

 

65.7

 

 

 

62.0

 

 

 

17.9

 

 

 

17.4

 

 

 

19.6

 

 

 

83.6

 

 

 

79.4

 

Utilities and other

 

 

87.4

 

 

 

81.3

 

 

 

30.1

 

 

 

28.8

 

 

 

33.8

 

 

 

117.5

 

 

 

110.1

 

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

Constant

Currency (1)

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

 

2019

 

 

2018

 

 

%

Change

 

 

2019

 

 

2018

 

 

%

Change

 

 

2019

 

 

%

Change

 

 

2019

 

 

2018

 

 

%

Change

 

Admissions revenues

 

$

1,431.8

 

 

$

1,461.2

 

 

 

(2.0

)%

 

$

373.5

 

 

$

373.0

 

 

 

0.1

%

 

$

434.9

 

 

 

16.6

%

 

$

1,805.3

 

 

$

1,834.2

 

 

 

(1.6

)%

Concession revenues

 

$

936.2

 

 

$

892.4

 

 

 

4.9

%

 

$

224.9

 

 

$

216.4

 

 

 

3.9

%

 

$

258.6

 

 

 

19.5

%

 

$

1,161.1

 

 

$

1,108.8

 

 

 

4.7

%

Other revenues

 

$

212.9

 

 

$

185.4

 

 

 

14.8

%

 

$

103.8

 

 

$

93.4

 

 

 

11.1

%

 

$

123.7

 

 

 

32.4

%

 

$

316.7

 

 

$

278.8

 

 

 

13.6

%

Total revenues

 

$

2,580.9

 

 

$

2,539.0

 

 

 

1.7

%

 

$

702.2

 

 

$

682.8

 

 

 

2.8

%

 

$

817.2

 

 

 

19.7

%

 

$

3,283.1

 

 

$

3,221.8

 

 

 

1.9

%

Attendance

 

 

176.2

 

 

 

185.3

 

 

 

(4.9

)%

 

 

103.4

 

 

 

96.8

 

 

 

6.8

%

 

 

 

 

 

 

 

 

 

 

279.6

 

 

 

282.1

 

 

 

(0.9

)%

Average ticket price (2)

 

$

8.13

 

 

$

7.89

 

 

 

3.0

%

 

$

3.61

 

 

$

3.85

 

 

 

(6.2

)%

 

$

4.21

 

 

 

9.4

%

 

$

6.46

 

 

$

6.50

 

 

 

(0.6

)%

Concession revenues per patron (3)

 

$

5.31

 

 

$

4.82

 

 

 

10.2

%

 

$

2.18

 

 

$

2.24

 

 

 

(2.7

)%

 

$

2.50

 

 

 

11.6

%

 

$

4.15

 

 

$

3.93

 

 

 

5.6

%

Average screen count

 

 

4,615

 

 

 

4,570

 

 

 

 

 

 

 

1,457

 

 

 

1,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,072

 

 

 

5,997

 

 

 

 

 

 

 

 

U.S. Operating Segment

 

 

International Operating Segment

 

 

Consolidated

 

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

Constant

Currency (1)

2019

 

 

2019

 

 

2018

 

Film rentals and advertising

 

$

819.6

 

 

$

822.6

 

 

$

184.2

 

 

$

177.2

 

 

$

214.5

 

 

$

1,003.8

 

 

$

999.8

 

Concession supplies

 

 

156.9

 

 

 

134.6

 

 

 

49.6

 

 

 

46.4

 

 

 

57.1

 

 

 

206.5

 

 

 

181.0

 

Salaries and wages

 

 

331.2

 

 

 

303.7

 

 

 

78.9

 

 

 

80.2

 

 

 

93.2

 

 

 

410.1

 

 

 

383.9

 

Facility lease expense

 

 

259.8

 

 

 

245.1

 

 

 

86.3

 

 

 

78.2

 

 

 

97.4

 

 

 

346.1

 

 

 

323.3

 

Utilities and other

 

 

348.2

 

 

 

327.0

 

 

 

126.5

 

 

 

121.0

 

 

 

147.6

 

 

 

474.7

 

 

 

448.0

 

 

(1)

 

Constant currency amounts, which are non-GAAP measurements, were calculated using the average exchange rate for the corresponding month for 2018. We translate the results of our international operating segment from local currencies into U.S. dollars using currency rates in effect at different points in time in accordance with U.S. GAAP. Significant changes in foreign currency exchange rates from one period to the next can result in meaningful variations in reported results.    We are providing constant currency amounts for our international operating segment to present a period-to-period comparison of business performance that excludes the impact of foreign currency fluctuations.

 

(2)

 

Average ticket price is calculated as admissions revenues divided by attendance.

 

(3)

 

Concession revenues per patron is calculated as concession revenues divided by attendance.

 
 
 
 

 Other Segment Information
(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

161,757

 

 

$

171,669

 

 

$

615,161

 

 

$

648,576

 

International

 

 

16,538

 

 

 

26,423

 

 

 

129,884

 

 

 

132,941

 

Total Adjusted EBITDA

 

$

178,295

 

 

$

198,092

 

 

$

745,045

 

 

$

781,517

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

81,952

 

 

$

75,766

 

 

$

230,561

 

 

$

270,870

 

International

 

 

35,163

 

 

 

24,345

 

 

 

73,066

 

 

 

75,203

 

Total capital expenditures

 

$

117,115

 

 

$

100,111

 

 

$

303,627

 

 

$

346,073

 

 

(1) 

 

Adjusted EBITDA represents net income before income taxes, depreciation and amortization expense and other items, as calculated below. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. In addition, we use Adjusted EBITDA for incentive compensation purposes.

 
 
 
 

Reconciliation of Adjusted EBITDA
(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

26,839

 

 

$

20,043

 

 

$

193,848

 

 

$

215,305

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

15,760

 

 

 

35,837

 

 

 

79,912

 

 

 

95,429

 

Interest expense (a)

 

 

24,904

 

 

 

27,269

 

 

 

99,941

 

 

 

109,994

 

Other (income) expense, net (b)

 

 

2,638

 

 

 

(3,225

)

 

 

(22,441

)

 

 

(18,472

)

Loss on debt amendments and refinancing

 

 

 

 

 

 

 

 

 

 

 

1,484

 

Distributions from DCIP (c)

 

 

15,784

 

 

 

598

 

 

 

23,696

 

 

 

5,799

 

Other cash distributions from equity investees (d)

 

 

9,419

 

 

 

8,504

 

 

 

29,670

 

 

 

24,344

 

Depreciation and amortization (a)

 

 

64,360

 

 

 

67,506

 

 

 

261,155

 

 

 

261,162

 

Impairment of long-lived assets

 

 

11,619

 

 

 

27,352

 

 

 

57,001

 

 

 

32,372

 

Loss on disposal of assets and other

 

 

3,951

 

 

 

10,036

 

 

 

12,008

 

 

 

38,702

 

Non-cash rent (e)

 

 

(1,107

)

 

 

 

 

 

(4,360

)

 

 

 

Deferred lease expenses - theatres (a)(f)

 

 

 

 

 

(135

)

 

 

 

 

 

(387

)

Deferred lease expenses - projectors (a)(g)

 

 

 

 

 

(233

)

 

 

 

 

 

(933

)

Amortization of long-term prepaid rents (a)(f)

 

 

 

 

 

568

 

 

 

 

 

 

2,382

 

Share based awards compensation expense (h)

 

 

4,128

 

 

 

3,972

 

 

 

14,615

 

 

 

14,336

 

Adjusted EBITDA

 

$

178,295

 

 

$

198,092

 

 

$

745,045

 

 

$

781,517

 

 

(a)

 

Amounts for the year ended December 31, 2019 were impacted by the adoption of ASC Topic 842 and the resulting change in the classification of certain of the Company’s leases.

 

(b)

 

Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates.

 

(c)

 

Cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP. These distributions are reported entirely within the U.S. operating segment.

 

(d)

 

Cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances. These distributions are reported entirely within the U.S. operating segment.

 

(e)

 

The adoption of ASC Topic 842 impacted how the Company amortizes lease related assets and liabilities such as deferred lease expenses, favorable and unfavorable lease intangible assets, long-term prepaid rents and deferred lease incentives.  Beginning January 1, 2019, these items are amortized to facility lease expense for theatre operating leases and utilities and other for equipment operating leases.

 

(f)

 

Non-cash expense included in facility lease expense.

 

(g)

 

Non-cash expense included in utilities and other.

 

(h)

 

Non-cash expense included in general and administrative expenses.

       
       

 

Financial and Media Contact :
Chanda Brashears – 972-665-1671 or cbrashears@cinemark.com

Source: Cinemark Holdings, Inc.