Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2014
EARNINGS PER SHARE
3. 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 and unvested restricted 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,  
     2012     2013     2014  

Numerator:

       

Net income attributable to Cinemark Holdings, Inc.

    $ 168,949      $ 148,470      $ 192,610   

Earnings allocated to participating share-based awards (1)

      (2,061 )      (1,530 )      (1,345 ) 
  

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

    $ 166,888      $ 146,940      $ 191,265   
  

 

 

    

 

 

    

 

 

  

Denominator (shares in thousands):

       

Basic weighted average common stock outstanding

      113,216        113,896        114,653   

Common equivalent shares for stock options

      36        9        —     

Common equivalent shares for restricted stock units

      572        491        313   
  

 

 

    

 

 

    

 

 

  

Diluted

      113,824        114,396        114,966   
  

 

 

    

 

 

    

 

 

  

Basic earnings per share attributable to common stockholders

    $ 1.47      $ 1.28      $ 1.66   
  

 

 

    

 

 

    

 

 

  

Diluted earnings per share attributable to common stockholders

    $ 1.47      $ 1.28      $ 1.66   
  

 

 

    

 

 

    

 

 

  

 

(1) 

For the years ended December 31, 2012, 2013 and 2014, a weighted average of approximately 1,406 shares, 1,198 shares and 810 shares, of unvested restricted stock, respectively, are considered participating securities.