Cinemark Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SEGMENTS (Tables)

SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Selected Financial Information by Reportable Operating Segment

Below is a breakdown of select financial information by reportable operating segment:

	Year Ended December 31,
	2017			2018			2019
Revenues
U.S.	$	2,236,237		$	2,551,719		$	2,594,246
International		769,436			682,778			702,196
Eliminations		(14,126	)		(12,762	)		(13,343	)
Total revenues	$	2,991,547		$	3,221,735		$	3,283,099
Adjusted EBITDA⁽¹⁾
U.S.	$	558,182		$	648,576		$	615,161
International		165,576			132,941			129,884
Total Adjusted EBITDA	$	723,758		$	781,517		$	745,045
Capital expenditures
U.S.	$	321,040		$	270,870		$	230,561
International		59,822			75,203			73,066
Total capital expenditures	$	380,862		$	346,073		$	303,627

⁽¹⁾

Distributions from equity investees are reported entirely within the U.S. operating segment.

Reconciliation of Net Income to Adjusted EBITDA

The following table sets forth a reconciliation of net income to Adjusted EBITDA:

	Year Ended December 31,
	2017			2018			2019
Net income	$	266,019		$	215,305		$	193,848
Add (deduct):
Income taxes		79,358			95,429			79,912
Interest expense ⁽¹⁾⁽²⁾		105,918			109,994			99,941
Loss on debt amendments and refinancing		521			1,484			—
Other income⁽³⁾		(43,127	)		(18,472	)		(22,441	)
Distributions from DCIP⁽⁴⁾		5,864			5,799			23,696
Other cash distributions from equity investees⁽⁵⁾		20,109			24,344			29,670
Depreciation and amortization ⁽²⁾		237,513			261,162			261,155
Impairment of long-lived assets		15,084			32,372			57,001
Loss on disposal of assets and other		22,812			38,702			12,008
Non-cash rent expense ⁽⁶⁾		—			—			(4,360	)
Deferred lease expenses⁽²⁾		(1,268	)		(1,320	)		—
Amortization of long-term prepaid rents ⁽²⁾		2,274			2,382			—
Share based awards compensation expense		12,681			14,336			14,615
Adjusted EBITDA⁽²⁾	$	723,758		$	781,517		$	745,045

⁽¹⁾

Includes amortization of debt issue costs.

⁽²⁾

Amounts for the year ended December 31, 2019 were impacted by the adoption of ASC Topic 842 and the resulting change in the classification of certain of the Company’s leases. See Note 3 for further discussion.

⁽³⁾

Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM.

⁽⁴⁾

See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 8. These distributions are reported entirely within the U.S. operating segment.

⁽⁵⁾

Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 7 and 8). These distributions are reported entirely within the U.S. operating segment.

⁽⁶⁾

The adoption of ASC Topic 842 impacted how the Company amortizes lease related assets and liabilities such as deferred lease expenses, favorable and unfavorable lease intangible assets, long-term prepaid rents and deferred lease incentives. Beginning January 1, 2019, these items are amortized to facility lease expense for theatre operating leases and utilities and other for equipment operating leases. See Note 3 for discussion of the impact of ASC Topic 842.

Selected Financial Information by Geographic Area

Below is a breakdown of select financial information by geographic area:

	Year Ended December 31,
	2017			2018			2019
Revenues
U.S.	$	2,236,237		$	2,551,719		$	2,594,246
Brazil		341,485			283,009			302,074
Other international countries		427,951			399,769			400,122
Eliminations		(14,126	)		(12,762	)		(13,343	)
Total	$	2,991,547		$	3,221,735		$	3,283,099

	December 31, 2018		December 31, 2019
Theatre Properties and Equipment-net
U.S.	$	1,479,603	$	1,436,275
Brazil		140,570		118,367
Other international countries		212,960		180,605
Total	$	1,833,133	$	1,735,247