Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.21.2
Earnings Per Share
6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Earnings Per Share

6.

Earnings Per Share

The following table presents computations of basic and diluted loss per share:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Cinemark Holdings, Inc.

 

$

(142,467

)

 

$

(170,389

)

 

$

(350,708

)

 

$

(229,980

)

Loss allocated to participating share-based awards (1)

 

 

2,713

 

 

 

1,329

 

 

 

5,869

 

 

 

1,514

 

Net loss attributable to common stockholders

 

$

(139,754

)

 

$

(169,060

)

 

$

(344,839

)

 

$

(228,466

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator (shares in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common stock outstanding

 

 

117,225

 

 

 

116,666

 

 

 

117,200

 

 

 

116,581

 

Common equivalent shares for restricted stock units (2)

 

 

 

 

 

 

 

 

 

 

 

 

Common equivalent shares for convertible notes and warrants (3)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted common equivalent shares

 

 

117,225

 

 

 

116,666

 

 

 

117,200

 

 

 

116,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic loss per share attributable to common stockholders

 

$

(1.19

)

 

$

(1.45

)

 

$

(2.94

)

 

$

(1.96

)

Diluted loss per share attributable to common stockholders

 

$

(1.19

)

 

$

(1.45

)

 

$

(2.94

)

 

$

(1.96

)

 

 

(1)

For the three months ended June 30, 2021 and 2020, a weighted average of approximately 2,276 and 917 shares of restricted stock, respectively, were considered participating securities.  For the six months ended June 30, 2021 and 2020, a weighted average of approximately 1,995 and 771 shares of restricted stock, respectively, were considered participating securities.  

 

(2)

For the three months ended June 30, 2021 and 2020, approximately 156 and 475, respectively, common equivalent shares for restricted stock units were excluded because they were anti-dilutive.  For the six months ended June 30, 2021 and 2020, approximately 98 and 28, respectively, common equivalent shares for restricted stock units were excluded because they were anti-dilutive.

 

(3)

For the three and six months ended June 30, 2021, diluted loss per share excludes the conversion of the 4.50% Convertible Senior Notes, issued August 21, 2020, into 32,051 shares of common stock, as well as outstanding warrants, as they would be anti-dilutive.  

 

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 loss per share pursuant to the two-class method. Basic loss per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net loss by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted loss 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 impact of the 4.50% Convertible Senior Notes on diluted loss per share is calculated under the if-converted method, which assumes conversion of the notes at the beginning of the period.  During the six months ended June 30, 2021, the weighted average closing price of the Company’s common stock of $21.63, respectively, exceeded the strike price of $18.66 per share (130% of the initial exercise price of $14.35 per share).  The if-converted value of the 4.50% Convertible Senior Notes exceeded the aggregate outstanding principle value of the notes by $233,116.

As stated in Note 13 of the Company’s Annual Report on Form 10-K filed February 26, 2021, the Company entered into hedge transactions with, and sold warrants to, counterparties in connection with the issuance of the 4.50% Convertible Senior Notes.  The hedge transactions are generally expected to reduce the potential dilution of any conversion of the 4.50% Convertible Senior Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 4.50% Convertible Senior Notes, as the case may be.  The warrants could have a dilutive effect on earnings per share to the extent that the price of the Company’s common stock during a given measurement period exceeds the strike price (initially $22.08 per share).