Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v3.20.4
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2020
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,

 

 

 

2019

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

97

 

 

$

394,800

 

Prepaid assets and other

 

 

 

 

 

8

 

Investment in subsidiaries

 

 

1,461,701

 

 

 

773,999

 

Total assets

 

$

1,461,798

 

 

$

1,168,807

 

Liabilities and equity

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accrued other current liabilities, including accounts payable to subsidiaries

 

$

24,948

 

 

$

38,338

 

Long-term debt

 

 

 

 

 

352,206

 

Other long-term liabilities

 

 

1,036

 

 

 

(9,710

)

Total liabilities

 

 

25,984

 

 

 

380,834

 

Commitments and contingencies (see Note 6)

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock, $0.001 par value: 300,000,000 shares authorized, 121,863,515 shares issued and 117,151,656 shares outstanding at December 31, 2019 and 123,627,080 shares issued and 118,576,099 shares outstanding at December 31, 2020

 

 

122

 

 

 

124

 

Additional paid-in-capital

 

 

1,170,039

 

 

 

1,245,569

 

Treasury stock, 4,711,859 and 5,050,981 shares, at cost, at December 31, 2019 and December 31, 2020, respectively

 

 

(81,567

)

 

 

(87,004

)

Retained earnings

 

 

687,332

 

 

 

27,937

 

Accumulated other comprehensive loss

 

 

(340,112

)

 

 

(398,653

)

Total equity

 

 

1,435,814

 

 

 

787,973

 

Total liabilities and equity

 

$

1,461,798

 

 

$

1,168,807

 

 

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

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF INCOME (LOSS)

YEARS ENDED DECEMBER 31, 2018, 2019 and 2020

(in thousands)

 

 

 

2018

 

 

2019

 

 

2020

 

Revenues

 

$

 

 

$

 

 

$

 

Cost of operations

 

 

2,535

 

 

 

2,556

 

 

 

2,236

 

Operating loss

 

 

(2,535

)

 

 

(2,556

)

 

 

(2,236

)

Interest expense

 

 

 

 

 

 

 

 

(14,220

)

Other income

 

 

22

 

 

 

20

 

 

 

56

 

Loss before income taxes and equity in income of subsidiaries

 

 

(2,513

)

 

 

(2,536

)

 

 

(16,400

)

Income taxes

 

 

605

 

 

 

609

 

 

 

5,740

 

Equity in income (loss) of subsidiaries, net of taxes

 

 

215,735

 

 

 

193,313

 

 

 

(606,168

)

Net income (loss)

 

$

213,827

 

 

$

191,386

 

 

$

(616,828

)

 

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, 2018, 2019 and 2020

(In thousands)

 

 

 

2018

 

 

2019

 

 

2020

 

Net income (loss)

 

$

213,827

 

 

$

191,386

 

 

$

(616,828

)

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $1,243, $2,692 and $3,532, net of settlements

 

 

(3,851

)

 

 

(8,210

)

 

 

(10,949

)

Other comprehensive income (loss) in equity method investments

 

 

(139

)

 

 

(142

)

 

 

 

Foreign currency translation adjustments

 

 

(62,253

)

 

 

(12,753

)

 

 

(47,592

)

Total other comprehensive loss, net of tax

 

 

(66,243

)

 

 

(21,105

)

 

 

(58,541

)

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

 

$

147,584

 

 

$

170,281

 

 

$

(675,369

)

 

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, 2018, 2019 and 2020

(in thousands)

 

 

 

2018

 

 

2019

 

 

2020

 

Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

213,827

 

 

$

191,386

 

 

$

(616,828

)

Adjustments to reconcile net income (loss) to cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Share based awards compensation expense

 

 

920

 

 

 

920

 

 

 

919

 

Equity in (income) loss of subsidiaries

 

 

(215,735

)

 

 

(193,313

)

 

 

606,168

 

Changes in other assets and liabilities

 

 

4,509

 

 

 

4,237

 

 

 

19,984

 

Net cash provided by operating activities

 

 

3,521

 

 

 

3,230

 

 

 

10,243

 

Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends received from subsidiaries

 

 

148,750

 

 

 

158,450

 

 

 

42,000

 

Net cash provided by investing activities

 

 

148,750

 

 

 

158,450

 

 

 

42,000

 

Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to stockholders

 

 

(149,492

)

 

 

(159,281

)

 

 

(42,311

)

Proceeds from convertible notes issued

 

 

 

 

 

 

 

 

460,000

 

Payment of debt issue costs

 

 

 

 

 

 

 

 

(17,122

)

Purchase of convertible note hedges

 

 

 

 

 

 

 

 

(142,094

)

Proceeds from warrants issued

 

 

 

 

 

 

 

 

89,424

 

Payroll taxes paid as a result of noncash stock option exercises

 

 

(2,905

)

 

 

(2,308

)

 

 

(5,437

)

Net cash provided by (used for) financing activities

 

 

(152,397

)

 

 

(161,589

)

 

 

342,460

 

Increase (decrease) in cash and cash equivalents

 

 

(126

)

 

 

91

 

 

 

394,703

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

132

 

 

 

6

 

 

 

97

 

End of period

 

$

6

 

 

$

97

 

 

$

394,800

 

 

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, the 5.125% Senior Notes and the 8.750% Secured 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, 2020, the restricted net assets totaled approximately $665,618 and $608,788 under the senior secured credit facility and the Notes, respectively. See Note 13 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)

 

2/23/2018

 

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 for year ended December 31, 2018

 

$

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 for year ended December 31, 2019

 

$

1.36

 

 

$

159,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/21/2020

 

3/6/2020

 

3/20/2020

 

$

0.36

 

 

$

42,567

 

Total for year ended December 31, 2020

 

$

0.36

 

 

$

42,567

 

(1)

Of the dividends recorded during 2018, 2019 and 2020, $624, $670 and $256, 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, 2018, 2019 and 2020, Cinemark Holdings, Inc. received cash dividends of $148,750, $158,450 and $42,000, respectively, from its subsidiary, Cinemark USA, Inc.

4.

LONG-TERM DEBT

On August 21, 2020, Cinemark Holdings, Inc. issued $460,000 aggregate principal amount of 4.50% Convertible Senior Notes, which will mature on August 15, 2025.  Additionally, certain of Cinemark Holdings, Inc.’s subsidiaries have direct outstanding debt obligations. For a discussion of the debt obligations of Cinemark Holdings, Inc.’ and its subsidiaries, see Note 13 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 17 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 20 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K