Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v3.3.1.900
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2015
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,
2014
    December 31,
2015
 

Assets

    

Cash and cash equivalents

   $ 29      $ 36   

Prepaid assets

     55        —     

Investment in subsidiaries

     1,126,395        1,102,148   
  

 

 

   

 

 

 

Total assets

   $ 1,126,479      $ 1,102,184   
  

 

 

   

 

 

 

Liabilities and equity

    

Liabilities

    

Accrued other current liabilities, including accounts payable to subsidiaries

   $ 13,163      $ 1,794   

Other long-term liabilities

     516        682   
  

 

 

   

 

 

 

Total liabilities

     13,679        2,476   

Commitments and contingencies (see Note 6)

    

Equity

    

Common stock, $0.001 par value: 300,000,000 shares authorized; 119,757,582 shares issued and 115,700,447 shares outstanding at December 31, 2014 and 120,107,563 shares issued and 115,924,059 shares outstanding at December 31, 2015

     120        120   

Additional paid-in-capital

     1,095,040        1,113,219   

Treasury stock, 4,057,135 and 4,183,504 common shares at cost at December 31, 2014 and December 31, 2015, respectively

     (61,807     (66,577

Retained earnings

     224,219        324,632   

Accumulated other comprehensive loss

     (144,772     (271,686
  

 

 

   

 

 

 

Total equity

     1,112,800        1,099,708   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,126,479      $ 1,102,184   
  

 

 

   

 

 

 

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, 2013, 2014 and 2015

(in thousands)

 

     2013     2014     2015  

Revenues

   $ —        $ —        $ —     

Cost of operations

     2,215        2,857        2,684   
  

 

 

   

 

 

   

 

 

 

Operating loss

     (2,215     (2,857     (2,684

Other income

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Loss before income taxes and equity in income of subsidiaries

     (2,215     (2,857     (2,684

Income taxes

     842        1,086        1,020   

Equity in income of subsidiaries, net of taxes

     149,843        194,381        218,533   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 148,470      $ 192,610      $ 216,869   
  

 

 

   

 

 

   

 

 

 

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, 2013, 2014 and 2015

(In thousands)

 

     2013     2014     2015  

Net income

   $ 148,470      $ 192,610      $ 216,869   

Other comprehensive income (loss), net of tax

      

Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes of $1,865, $1,759 and $1,562, net of settlements

     3,151        2,846        2,636   

Unrealized gain (loss) due to fair value adjustments on available-for-sale securities, net of taxes of $1,223, $1,479 and $572

     (2,041     2,507        (957

Other comprehensive income (loss) in equity method investments

     2,386        676        (3,119

Foreign currency translation adjustments, net of taxes of $0, $0, and $888

     (47,617     (68,982     (125,474
  

 

 

   

 

 

   

 

 

 

Total other comprehensive loss, net of tax

     (44,121     (62,953     (126,914
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

     104,349        129,657        89,955   

Comprehensive income attributable to noncontrolling interests

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Cinemark Holdings, Inc.

   $ 104,349      $ 129,657      $ 89,955   
  

 

 

   

 

 

   

 

 

 

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, 2013, 2014 and 2015

(in thousands)

 

     2013     2014     2015  

Operating Activities

      

Net income

   $ 148,470      $ 192,610      $ 216,869   

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

      

Share based awards compensation expense

     840        943        885   

Equity in income of subsidiaries

     (149,843     (194,381     (218,533

Changes in other assets and liabilities

     4,301        11,196        6,194   
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     3,768        10,368        5,415   

Investing Activities

      

Dividends received from subsidiaries

     105,150        115,000        115,225   
  

 

 

   

 

 

   

 

 

 

Net cash provided by investing activities

     105,150        115,000        115,225   

Financing Activities

      

Proceeds from stock option exercises

     57        112        —     

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

     (3,464     (9,861     (4,770

Dividends paid to stockholders

     (106,045     (115,625     (115,863
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

     (109,452     (125,374     (120,633
  

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     (534     (6     7   

Cash and cash equivalents:

      

Beginning of period

     569        35        29   
  

 

 

   

 

 

   

 

 

 

End of period

   $ 35      $ 29      $ 36   
  

 

 

   

 

 

   

 

 

 

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 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, 2015, the restricted net assets totaled approximately $811,988 and $980,128 under the 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)
 

    02/12/13

   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   
           

 

 

 

    02/17/15

   03/04/15    03/18/15    $ 0.25       $ 29,025   

    05/18/15

   06/05/15    06/19/15    $ 0.25         29,075   

    08/20/15

   08/31/15    09/11/15    $ 0.25         29,080   

    11/13/15

   12/02/15    12/16/15    $ 0.25         29,276   
           

 

 

 

Total – Year ended December 31, 2015

      $ 116,456   
           

 

 

 

 

(1) 

Of the dividends recorded during 2013, 2014 and 2015, $772, $530 and $593, respectively, were related to outstanding restricted stock units and will not be paid until such units vest. See Note 16 of the Company’s consolidated financial statements included elsewhere in this report.

(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, 2013, 2014 and 2015, Cinemark Holdings, Inc. received cash dividends of $105,150, $115,000 and $115,225, respectively, from its subsidiary, Cinemark USA, Inc. Cinemark USA, Inc. also declared a noncash distribution to Cinemark Holdings, Inc. during the years ended December 31, 2013 and 2015 of approximately $4,971 and $17,935, respectively.

 

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.