Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.20.4
Earnings Per Share
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share

6.

EARNINGS PER SHARE

The Company considers its unvested share based payment 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:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2018

 

 

2019

 

 

2020

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cinemark Holdings, Inc.

 

$

213,827

 

 

$

191,386

 

 

$

(616,828

)

(Earnings) loss allocated to participating share-based awards (1)

 

 

(1,168

)

 

 

(1,174

)

 

 

4,279

 

Net income (loss) attributable to common stockholders

 

$

212,659

 

 

$

190,212

 

 

$

(612,549

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator (shares in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

116,054

 

 

 

116,306

 

 

 

116,667

 

Common equivalent shares for restricted stock units (2)

 

 

288

 

 

 

300

 

 

 

 

Diluted weighted average shares outstanding

 

 

116,342

 

 

 

116,606

 

 

 

116,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share attributable to common stockholders

 

$

1.83

 

 

$

1.63

 

 

$

(5.25

)

Diluted earnings (loss) per share attributable to common stockholders

 

$

1.83

 

 

$

1.63

 

 

$

(5.25

)

 

 

(1)

For the years ended December 31, 2018, 2019 and 2020, a weighted average of approximately 640 shares, 721 shares and 815 shares, of unvested restricted stock, respectively, are considered participating securities.

 

(2)

For the year ended December 31, 2020, approximately 682 common equivalent shares for restricted stock units were excluded because they were anti-dilutive.

 

The calculations of diluted earnings per share for the year ended December 31, 2020 does not include the impact of the conversation of the 4.50% Convertible Senior Notes, issued August 21, 2020, into 32,051,282 shares of common stock, as it would be anti-dilutive. Additionally, the average price of the Company’s common stock did not exceed $22.08 per share during the reporting period; therefore, additional shares that may be issued related to the recently issued warrants were not included in the calculation of diluted common equivalent shares.  See further discussion of the 4.50% Convertible Senior Notes, the convertible note hedges and the warrants at Note 13.