Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v2.4.1.9
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2014
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,
2013
    December 31,
2014
 

Assets

    

Cash and cash equivalents

   $ 35      $ 29   

Prepaid assets

     —          55   

Investment in subsidiaries

     1,095,287        1,126,395   
  

 

 

   

 

 

 

Total assets

   $ 1,095,322      $ 1,126,479   
  

 

 

   

 

 

 

Liabilities and equity

    

Liabilities

    

Accrued other current liabilities, including accounts payable to subsidiaries

   $ 1,414      $ 13,163   

Other long-term liabilities

     486        516   
  

 

 

   

 

 

 

Total liabilities

     1,900        13,679   

Commitments and contingencies (see Note 6)

    

Equity

    

Common stock, $0.001 par value: 300,000,000 shares authorized; 119,077,473 shares issued and 115,382,538 shares outstanding at December 31, 2013 and 119,757,582 shares issued and 115,700,447 shares outstanding at December 31, 2014

     119        120   

Additional paid-in-capital

     1,079,304        1,095,040   

Treasury stock, 3,694,935 and 4,057,135 common shares at cost at December 31, 2013 and 2014, respectively

     (51,946     (61,807

Retained earnings

     147,764        224,219   

Accumulated other comprehensive loss

     (81,819     (144,772
  

 

 

   

 

 

 

Total equity

     1,093,422        1,112,800   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,095,322      $ 1,126,479   
  

 

 

   

 

 

 

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, 2012, 2013 and 2014

(in thousands)

 

     2012     2013     2014  

Revenues

   $ —        $ —        $ —     

Cost of operations

     2,182        2,215        2,857   
  

 

 

   

 

 

   

 

 

 

Operating loss

     (2,182     (2,215     (2,857

Other income

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Loss before income taxes and equity in income of subsidiaries

     (2,182     (2,215     (2,857

Income taxes

     818        842        1,086   

Equity in income of subsidiaries, net of taxes

     170,313        149,843        194,381   
  

 

 

   

 

 

   

 

 

 

Net income

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

 

 

   

 

 

   

 

 

 

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, 2012, 2013 and 2014

(In thousands)

 

     2012     2013     2014  

Net income

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

Other comprehensive income (loss), net of tax

      

Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes of $557, $1,865 and $1,759, net of settlements

     1,020        3,151        2,846   

Unrealized gain (loss) due to fair value adjustments on available-for-sale securities, net of taxes of $1,499, $1,223 and $1,479

     2,499        (2,041     2,507   

Amortization of accumulated other comprehensive loss on terminated swap agreement

     2,470        —          —     

Other comprehensive income in equity method investments

     —          2,386        676   

Foreign currency translation adjustments

     (20,005     (47,617     (68,982
  

 

 

   

 

 

   

 

 

 

Total other comprehensive loss, net of tax

     (14,016     (44,121     (62,953
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

     154,933        104,349        129,657   

Comprehensive income attributable to noncontrolling interests

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Cinemark Holdings, Inc.

   $ 154,933      $ 104,349      $ 129,657   
  

 

 

   

 

 

   

 

 

 

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, 2012, 2013 and 2014

(in thousands)

 

     2012     2013     2014  

Operating Activities

      

Net income

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

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

      

Share based awards compensation expense

     750        840        943   

Equity in income of subsidiaries

     (170,313     (149,843     (194,381

Changes in other assets and liabilities

     4,448        4,301        11,196   
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     3,834        3,768        10,368   

Investing Activities

      

Dividends received from subsidiaries

     95,750        105,150        115,000   
  

 

 

   

 

 

   

 

 

 

Net cash provided by investing activities

     95,750        105,150        115,000   

Financing Activities

      

Proceeds from stock option exercises

     459        57        112   

Payroll taxes paid as a result of noncash stock option exercises and restricted stock withholdings

     (3,263     (3,464     (9,861

Dividends paid to stockholders

     (96,367     (106,045     (115,625
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

     (99,171     (109,452     (125,374
  

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     413        (534     (6

Cash and cash equivalents:

      

Beginning of period

     156        569        35   
  

 

 

   

 

 

   

 

 

 

End of period

   $ 569      $ 35      $ 29   
  

 

 

   

 

 

   

 

 

 

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

 

CINEMARK HOLDINGS, INC.

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

In thousands, except share and per share data

 

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 amended senior secured credit facility and the indentures to each of the 4.875% Senior Notes, the 5.125% Senior Notes and the 7.375% Senior Subordinated 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, 2014, the restricted net assets totaled approximately $796,118 and $1,022,937 under the amended senior secured credit facility and the Notes, respectively. See Note 11 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.

 

Date
Declared

   Date of
Record
   Date
Paid
   Amount per
Common
Share (2)
     Total
Dividends  (1)
 

    02/03/12

   03/02/12    03/16/12    $ 0.21       $ 24,141   

    05/11/12

   06/04/12    06/19/12    $ 0.21         24,274   

    08/08/12

   08/21/12    09/05/12    $ 0.21         24,281   

    11/06/12

   11/21/12    12/07/12    $ 0.21         24,565   
           

 

 

 

Total – Year ended December 31, 2012

  

   $ 97,261   
           

 

 

 

    02/12/13

   03/04/13    03/15/13    $ 0.21       $ 24,325   

    05/24/13

   06/06/13    06/20/13    $ 0.21         24,348   

    08/15/13

   08/28/13    09/12/13    $ 0.25         28,992   

    11/19/13

   12/02/13    12/11/13    $ 0.25         29,152   
           

 

 

 

Total – Year ended December 31, 2013

  

   $ 106,817   
           

 

 

 

    02/14/14

   03/04/14    03/19/14    $ 0.25       $ 29,015   

    05/22/14

   06/06/14    06/20/14    $ 0.25         29,030   

    08/13/14

   08/28/14    09/12/14    $ 0.25         29,032   

    11/12/14

   12/02/14    12/11/14    $ 0.25         29,078   
           

 

 

 

Total – Year ended December 31, 2014

      $ 116,155   
           

 

 

 

 

(1) 

Of the dividends recorded during 2012, 2013 and 2014, $894, $772 and $530, respectively, were related to outstanding restricted stock units and will not be paid until such units vest. See Note 16 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

(2) 

Beginning with the dividend declared on August 15, 2013, the Company’s board of directors raised the quarterly dividend to $0.25 per common share.

 

3. DIVIDENDS RECEIVED FROM SUBSIDIARIES

During the years ended December 31, 2012, 2013 and 2014, Cinemark Holdings, Inc. received cash dividends of $95,750, $105,150 and $115,000, respectively, from its subsidiary, Cinemark USA, Inc. Cinemark USA, Inc. also declared a noncash distribution to Cinemark Holdings, Inc. during the year ended December 31, 2013 of approximately $4,971.

 

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 11 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.