Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v3.19.3.a.u2
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2019
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE 1 - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CINEMARK HOLDINGS, INC.

PARENT COMPANY BALANCE SHEETS

(In thousands, except share data)

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6

 

 

$

97

 

Prepaid assets and other

 

 

11

 

 

 

 

Investment in subsidiaries

 

 

1,417,256

 

 

 

1,461,701

 

Total assets

 

$

1,417,273

 

 

$

1,461,798

 

Liabilities and equity

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accrued other current liabilities, including accounts payable to subsidiaries

 

$

20,165

 

 

$

24,948

 

Other long-term liabilities

 

 

917

 

 

 

1,036

 

Total liabilities

 

 

21,082

 

 

 

25,984

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (see Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock, $0.001 par value: 300,000,000 shares authorized, 121,456,721 shares issued and 116,830,530 shares outstanding at December 31, 2018 and 121,863,515 shares issued and 117,151,656 shares outstanding at December 31, 2019

 

 

121

 

 

 

122

 

Additional paid-in-capital

 

 

1,155,424

 

 

 

1,170,039

 

Treasury stock, 4,626,191 and 4,711,859 shares, at cost, at December 31, 2018 and December 31, 2019, respectively

 

 

(79,259

)

 

 

(81,567

)

Retained earnings

 

 

638,912

 

 

 

687,332

 

Accumulated other comprehensive loss

 

 

(319,007

)

 

 

(340,112

)

Total equity

 

 

1,396,191

 

 

 

1,435,814

 

Total liabilities and equity

 

$

1,417,273

 

 

$

1,461,798

 

 

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31, 2017, 2018 and 2019

(in thousands)

 

 

 

2017

 

 

2018

 

 

2019

 

Revenues

 

$

 

 

$

 

 

$

 

Cost of operations

 

 

2,367

 

 

 

2,535

 

 

 

2,556

 

Operating loss

 

 

(2,367

)

 

 

(2,535

)

 

 

(2,556

)

Other income

 

 

6

 

 

 

22

 

 

 

20

 

Loss before income taxes and equity in income of subsidiaries

 

 

(2,361

)

 

 

(2,513

)

 

 

(2,536

)

Income taxes

 

 

897

 

 

 

605

 

 

 

609

 

Equity in income of subsidiaries, net of taxes

 

 

265,644

 

 

 

215,735

 

 

 

193,313

 

Net income

 

$

264,180

 

 

$

213,827

 

 

$

191,386

 

 

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2017, 2018 and 2019

(In thousands)

 

 

 

2017

 

 

2018

 

 

2019

 

Net income

 

$

264,180

 

 

$

213,827

 

 

$

191,386

 

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $0, $1,243 and $2,692, net of settlements

 

 

-

 

 

 

(3,851

)

 

 

(8,210

)

Other comprehensive income (loss) in equity method investments

 

248

 

 

 

(139

)

 

 

(142

)

Foreign currency translation adjustments

 

 

(4,966

)

 

 

(62,253

)

 

 

(12,753

)

Total other comprehensive loss, net of tax

 

 

(4,718

)

 

 

(66,243

)

 

 

(21,105

)

Comprehensive income attributable to Cinemark Holdings, Inc.

 

$

259,462

 

 

$

147,584

 

 

$

170,281

 

 

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2017, 2018 and 2019

(in thousands)

 

 

 

2017

 

 

2018

 

 

2019

 

Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

264,180

 

 

$

213,827

 

 

$

191,386

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Share based awards compensation expense

 

 

857

 

 

 

920

 

 

 

920

 

Equity in income of subsidiaries

 

 

(265,644

)

 

 

(215,735

)

 

 

(193,313

)

Changes in other assets and liabilities

 

 

4,164

 

 

 

4,509

 

 

 

4,237

 

Net cash provided by operating activities

 

 

3,557

 

 

 

3,521

 

 

 

3,230

 

Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends received from subsidiaries

 

 

134,500

 

 

 

148,750

 

 

 

158,450

 

Net cash provided by investing activities

 

 

134,500

 

 

 

148,750

 

 

 

158,450

 

Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to stockholders

 

 

(135,079

)

 

 

(149,492

)

 

 

(159,281

)

Payroll taxes paid as a result of noncash stock option exercises

 

 

(2,943

)

 

 

(2,905

)

 

 

(2,308

)

Net cash used for financing activities

 

 

(138,022

)

 

 

(152,397

)

 

 

(161,589

)

Increase (decrease) in cash and cash equivalents

 

 

35

 

 

 

(126

)

 

 

91

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

97

 

 

 

132

 

 

 

6

 

End of period

 

$

132

 

 

$

6

 

 

$

97

 

 

The accompanying notes are an integral part of the condensed financial information of the registrant.

1.

BASIS OF PRESENTATION

Cinemark Holdings, Inc. conducts substantially all of its operations through its subsidiaries. These statements should be read in conjunction with the Company’s consolidated financial statements and notes included elsewhere in this annual report on Form 10-K. There are significant restrictions over Cinemark Holdings, Inc.’s ability to obtain funds from its subsidiaries through dividends, loans or advances as contained in Cinemark USA, Inc.’s senior secured credit facility and the indentures to each of the 4.875% Senior Notes and the 5.125% Senior Notes (collectively referred to herein as the “Notes”). These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of Cinemark Holdings, Inc.’s subsidiaries under each of the debt agreements previously noted exceeds 25 percent of the consolidated net assets of Cinemark Holdings, Inc. As of December 31, 2019, the restricted net assets totaled approximately $1,128,614 and $1,114,284 under the senior secured credit facility and the Notes, respectively. See Note 12 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

2.

DIVIDEND PAYMENTS

Below is a summary of dividends declared for the fiscal periods indicated.

 

 

 

 

 

 

 

Amount per

Share of

 

 

Total

 

Declaration Date

 

Record Date

 

Payable Date

 

Common Stock

 

 

Dividends (1)

 

2/23/2017

 

3/8/2017

 

3/20/2017

 

$

0.29

 

 

$

33,912

 

5/25/2017

 

6/8/2017

 

6/22/2017

 

 

0.29

 

 

 

33,904

 

8/10/2017

 

8/31/2017

 

9/13/2017

 

 

0.29

 

 

 

33,911

 

11/17/2017

 

12/1/2017

 

12/15/2017

 

 

0.29

 

 

 

33,910

 

 

 

 

 

Total

 

$

1.16

 

 

$

135,637

 

2/23/2018

 

3/8/2018

 

3/22/2018

 

$

0.32

 

 

$

37,471

 

5/25/2018

 

6/8/2018

 

6/22/2018

 

 

0.32

 

 

 

37,523

 

8/23/2018

 

9/4/2018

 

9/18/2018

 

 

0.32

 

 

 

37,530

 

11/15/2018

 

12/4/2018

 

12/18/2018

 

 

0.32

 

 

 

37,592

 

 

 

 

 

Total

 

$

1.28

 

 

$

150,116

 

2/23/2019

 

3/8/2019

 

3/22/2019

 

$

0.34

 

 

$

39,905

 

5/24/2019

 

6/10/2019

 

6/24/2019

 

$

0.34

 

 

 

40,012

 

8/16/2019

 

9/4/2019

 

9/18/2019

 

$

0.34

 

 

 

40,020

 

11/22/2019

 

12/4/2019

 

12/18/2019

 

$

0.34

 

 

 

40,014

 

 

 

 

 

Total

 

$

1.36

 

 

$

159,951

 

(1)

Of the dividends recorded during 2017, 2018 and 2019, $558, $624 and $670, respectively, were related to outstanding restricted stock units and will not be paid until such units vest.

3.

DIVIDENDS RECEIVED FROM SUBSIDIARIES

During the years December 31, 2017, 2018 and 2019, Cinemark Holdings, Inc. received cash dividends of $134,500, $148,750 and $158,450, respectively, from its subsidiary, Cinemark USA, Inc.

4.

LONG-TERM DEBT

Cinemark Holdings, Inc. has no direct outstanding debt obligations, but its subsidiaries do. For a discussion of the debt obligations of Cinemark Holdings, Inc.’s subsidiaries, see Note 12 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

5.

CAPITAL STOCK

Cinemark Holdings, Inc.’s capital stock along with its long-term incentive plan and related activity are discussed in Note 16 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

6.

COMMITMENTS AND CONTINGENCIES

Cinemark Holdings, Inc. has no direct commitments and contingencies, but its subsidiaries do. See Note 19 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K