Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v3.6.0.2
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2016
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,
2015
    December 31,
2016
 

Assets

    

Cash and cash equivalents

   $ 36     $ 97  

Prepaid assets

     —         7  

Investment in subsidiaries

     1,102,148       1,272,938  
  

 

 

   

 

 

 

Total assets

   $ 1,102,184     $ 1,273,042  
  

 

 

   

 

 

 

Liabilities and equity

    

Liabilities

    

Accrued other current liabilities, including accounts payable to subsidiaries

   $ 1,794     $ 10,504  

Other long-term liabilities

     682       720  
  

 

 

   

 

 

 

Total liabilities

     2,476       11,224  

Commitments and contingencies (see Note 6)

    

Equity

    

Common stock, $0.001 par value: 300,000,000 shares authorized; 120,107,563 shares issued and 115,924,059 shares outstanding at December 31, 2015 and 120,657,254 shares issued and 116,210,252 shares outstanding at December 31, 2016

     120       121  

Additional paid-in-capital

     1,113,219       1,128,442  

Treasury stock, 4,183,504 and 4,447,002 common shares at cost at December 31, 2015 and December 31, 2016, respectively

     (66,577     (73,411

Retained earnings

     324,632       453,679  

Accumulated other comprehensive loss

     (271,686     (247,013
  

 

 

   

 

 

 

Total equity

     1,099,708       1,261,818  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,102,184     $ 1,273,042  
  

 

 

   

 

 

 

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, 2014, 2015 and 2016

(in thousands)

 

     2014     2015     2016  

Revenues

   $ —       $ —       $ —    

Cost of operations

     2,857       2,684       2,717  
  

 

 

   

 

 

   

 

 

 

Operating loss

     (2,857     (2,684     (2,717

Other income

     —         —         —    
  

 

 

   

 

 

   

 

 

 

Loss before income taxes and equity in income of subsidiaries

     (2,857     (2,684     (2,717

Income taxes

     1,086       1,020       1,033  

Equity in income of subsidiaries, net of taxes

     194,381       218,533       256,775  
  

 

 

   

 

 

   

 

 

 

Net income

   $ 192,610     $ 216,869     $ 255,091  
  

 

 

   

 

 

   

 

 

 

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, 2014, 2015 and 2016

(In thousands)

 

     2014     2015     2016  

Net income

   $ 192,610     $ 216,869     $ 255,091  

Other comprehensive income (loss), net of tax

      

Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes of $1,759, $1,562 and $138, net of settlements

     2,846       2,636       234  

Unrealized gain (loss) due to fair value adjustments on available-for-sale securities, net of taxes of $1,479 and $572 and $0

     2,507       (957     —    

Other comprehensive income (loss) in equity method investments

     676       (3,119     89  

Foreign currency translation adjustments

     (68,982     (125,474     26,361  
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax

     (62,953     (126,914     26,684  
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Cinemark Holdings, Inc.

   $ 129,657     $ 89,955     $ 281,775  
  

 

 

   

 

 

   

 

 

 

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, 2014, 2015 and 2016

(in thousands)

 

     2014     2015     2016  

Operating Activities

      

Net income

   $ 192,610     $ 216,869     $ 255,091  

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

      

Share based awards compensation expense

     943       885       981  

Equity in income of subsidiaries

     (194,381     (218,533     (256,775

Changes in other assets and liabilities

     11,196       6,194       8,188  
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     10,368       5,415       7,485  

Investing Activities

      

Dividends received from subsidiaries

     115,000       115,225       124,900  
  

 

 

   

 

 

   

 

 

 

Net cash provided by investing activities

     115,000       115,225       124,900  

Financing Activities

      

Proceeds from stock option exercises

     112       —         —    

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

     (9,861     (4,770     (6,834

Dividends paid to stockholders

     (115,625     (115,863     (125,490
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

     (125,374     (120,633     (132,324
  

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     (6     7       61  

Cash and cash equivalents:

      

Beginning of period

     35       29       36  
  

 

 

   

 

 

   

 

 

 

End of period

   $ 29     $ 36     $ 97  
  

 

 

   

 

 

   

 

 

 

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 and the 5.125% Senior 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, 2016, the restricted net assets totaled approximately $1,106,700 and $1,119,614 under the senior secured credit facility and the Notes, respectively. See Note 10 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 (1)
     Total
Dividends  (2)
 

    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  
           

 

 

 

    02/24/16

   03/07/16    03/18/16    $ 0.27      $ 31,544  

    05/26/16

   06/08/16    06/22/16    $ 0.27        31,459  

    08/18/16

   08/31/16    09/13/16    $ 0.27        31,473  

    11/16/16

   12/02/16    12/16/16    $ 0.27        31,568  
           

 

 

 

Total – Year ended December 31, 2016

      $ 126,044  
           

 

 

 

 

(1) 

Beginning with the dividend declared on February 24, 2016, the Company’s board of directors raised the quarterly dividend to $0.27 per common share.

(2) 

Of the dividends recorded during 2014, 2015 and 2016, $530, $593 and $554, respectively, were related to outstanding restricted stock units and will not be paid until such units vest. See Note 14.

3. DIVIDENDS RECEIVED FROM SUBSIDIARIES

During the years ended December 31, 2014, 2015 and 2016, Cinemark Holdings, Inc. received cash dividends of $115,000, $115,225 and $124,900, 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, 2015 of approximately $17,935.

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 10 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 14 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 17 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.