Annual report pursuant to Section 13 and 15(d)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v2.4.0.6
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2012
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,
2011
    December 31,
2012
 

Assets

    

Cash and cash equivalents

   $ 156      $ 569   

Investment in subsidiaries

     1,014,532        1,085,783   
  

 

 

   

 

 

 

Total assets

   $ 1,014,688      $ 1,086,352   
  

 

 

   

 

 

 

Liabilities and equity

    

Liabilities

    

Accrued other current liabilities

   $ 780      $ 1,258   

Other long-term liabilities

     1,031        1,029   
  

 

 

   

 

 

 

Total liabilities

     1,811        2,287   

Commitments and contingencies

    

Equity

    

Common stock, $0.001 par value: 300,000,000 shares authorized;

    

117,593,329 shares issued and 114,201,737 shares outstanding at December 31, 2011 and 118,502,752 shares issued and 114,949,667 shares outstanding at December 31, 2012

     118        118   

Additional paid-in-capital

     1,047,237        1,064,016   

Treasury stock, 3,391,592 and 3,553,085 common shares at cost at December 31, 2011 and 2012, respectively

     (45,219     (48,482

Retained earnings

     34,423        106,111   

Accumulated other comprehensive loss

     (23,682     (37,698
  

 

 

   

 

 

 

Total equity

     1,012,877        1,084,065   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,014,688      $ 1,086,352   
  

 

 

   

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31, 2010, 2011 and 2012

(in thousands)

 

     Year Ended December 31,  
     2010     2011     2012  

Revenues

   $ —        $ —        $ —     

Cost of operations

     2,030        2,193        2,182   
  

 

 

   

 

 

   

 

 

 

Operating loss

     (2,030     (2,193     (2,182

Other income

     1        —          —     
  

 

 

   

 

 

   

 

 

 

Loss before income taxes and equity in income of subsidiaries

     (2,029     (2,193     (2,182

Income taxes

     762        823        818   

Equity in income of subsidiaries, net of taxes

     147,387        131,927        170,313   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 146,120      $ 130,557      $ 168,949   
  

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2010, 2011 AND 2012

(In thousands)

 

     2010     2011     2012  

Net income

   $ 146,120      $ 130,557      $ 168,949   

Other comprehensive income (loss), net of tax

      

Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $4,339, $3,786 and $557

     7,170        (2,830     1,020   

Unrealized gain (loss) due to fair value adjustments on available-for-sale securities, net of taxes of $3,425, $8,128 and $1,499

     5,659        (13,566     2,499   

Amortization of accumulated other comprehensive loss on terminated swap agreement

     4,633        4,236        2,470   

Foreign currency translation adjustment

     19,432        (46,280     (20,232
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax

     36,894        (58,440     (14,243
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

     183,014        72,117        154,706   

Comprehensive income attributable to noncontrolling interests

     (3,711     (1,803     (2,244
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Cinemark Holdings, Inc.

   $ 179,303      $ 70,314      $ 152,462   
  

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2010, 2011 and 2012

(in thousands)

 

     Year Ended December 31,  
     2010     2011     2012  

Operating Activities

      

Net income

   $ 146,120      $ 130,557      $ 168,949   

Adjustments to reconcile net income to cash provided by (used for) operating activities:

      

Share based awards compensation expense

     765        666        750   

Equity in income of subsidiaries

     (147,387     (131,927     (170,313

Changes in other assets and liabilities

     (561     1,516        4,448   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     (1,063     812        3,834   

Investing Activities

      

Dividends received from subsidiaries

     78,100        95,000        95,750   
  

 

 

   

 

 

   

 

 

 

Net cash provided by investing activities

     78,100        95,000        95,750   

Financing Activities

      

Proceeds from stock option exercises

     7,914        444        459   

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

     (416     (494     (3,263

Dividends paid to stockholders

     (84,502     (95,838     (96,367
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

     (77,004     (95,888     (99,171
  

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     33        (76     413   

Cash and cash equivalents:

      

Beginning of period

     199        232        156   
  

 

 

   

 

 

   

 

 

 

End of period

   $ 232      $ 156      $ 569   
  

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

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 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 8.625% 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, 2012, the restricted net assets totaled approximately $824,862 and $1,036,509 under the senior secured credit facility and the Notes, respectively. See Note 13 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

 

2. DIVIDEND PAYMENTS

In August 2007, Cinemark Holdings, Inc. initiated a quarterly dividend policy, which was amended in November 2010. 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)

02/25/10

  03/05/10   03/19/10   $0.18   $20,104

05/13/10

  06/04/10   06/18/10   $0.18   20,313

07/29/10

  08/17/10   09/01/10   $0.18   20,519

11/02/10

  11/22/10   12/07/10   $0.21   24,201
       

 

Total — Year ended December 31, 2010

  $85,137
       

 

02/24/11

  03/04/11   03/16/11   $0.21   $24,056

05/12/11

  06/06/11   06/17/11   $0.21   24,152

08/04/11

  08/17/11   09/01/11   $0.21   24,157

11/03/11

  11/18/11   12/07/11   $0.21   24,157
       

 

Total — Year ended December 31, 2011

  $96,522
       

 

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
       

 

 

(1) 

Of the dividends recorded during 2010, 2011 and 2012, $635, $684 and $894, respectively, were related to outstanding restricted stock units and will not be paid until such units vest. See Notes 19 and 20 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

(2) 

Beginning with the dividend declared on November 2, 2010, the Company’s board of directors raised the quarterly dividend to $0.21 per common share.

 

3. DIVIDENDS RECEIVED FROM SUBSIDIARIES

During the years ended December 31, 2010, 2011 and 2012, Cinemark Holdings, Inc. received cash dividends of $78,100, $95,000 and $95,750, 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, 2012 of approximately $5,356.

 

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 13 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 19 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 22 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.