Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
9 Months Ended
Sep. 30, 2014
Earnings Per Share

3. Earnings Per Share

The Company considers its unvested restricted stock awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. Basic earnings per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

The following table presents computations of basic and diluted earnings per share under the two-class method:

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014     2013     2014     2013  

Numerator:

        

Net income attributable to Cinemark Holdings, Inc.

   $ 38,129      $ 80,019      $ 145,303      $ 132,878   

Earnings allocated to participating share-based awards (1)

     (293     (880     (1,004     (1,367
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 37,836      $ 79,139      $ 144,299      $ 131,511   
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator (shares in thousands):

        

Basic weighted average common stock outstanding

     114,814        114,050        114,596        113,836   

Common equivalent shares for stock options

     —          8        —          9   

Common equivalent shares for restricted stock units

     207        391        305        446   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     115,021        114,449        114,901        114,291   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share attributable to common stockholders

   $ 0.33      $ 0.69      $ 1.25      $ 1.15   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 0.33      $ 0.69      $ 1.25      $ 1.15   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For the three months ended September 30, 2014 and 2013, a weighted average of approximately 888 and 1,272 shares of unvested restricted stock, respectively, were considered participating securities. For the nine months ended September 30, 2014 and 2013, a weighted average of approximately 801 and 1,191 shares of unvested restricted stock, respectively, were considered participating securities.