Annual report pursuant to Section 13 and 15(d)

Condensed Financial Information of Registrant

v2.4.0.8
Condensed Financial Information of Registrant
12 Months Ended
Dec. 31, 2013
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,
2012
    December 31,
2013
 

Assets

    

Cash and cash equivalents

   $ 569      $ 35   

Investment in subsidiaries

     1,085,783        1,095,287   
  

 

 

   

 

 

 

Total assets

   $ 1,086,352      $ 1,095,322   
  

 

 

   

 

 

 

Liabilities and equity

    

Liabilities

    

Accrued other current liabilities

   $ 1,258      $ 1,414   

Other long-term liabilities

     1,029        486   
  

 

 

   

 

 

 

Total liabilities

     2,287        1,900   

Commitments and contingencies

    

Equity

    

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

    

118,502,752 shares issued and 114,949,667 shares outstanding at December 31, 2012 and 119,077,473 shares issued and 115,382,538 shares outstanding at December 31, 2013

     118        119   

Additional paid-in-capital

     1,064,016        1,079,304   

Treasury stock, 3,553,085 and 3,694,935 common shares at cost at December 31, 2012 and 2013, respectively

     (48,482     (51,946

Retained earnings

     106,111        147,764   

Accumulated other comprehensive loss

     (37,698     (81,819
  

 

 

   

 

 

 

Total equity

     1,084,065        1,093,422   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,086,352      $ 1,095,322   
  

 

 

   

 

 

 

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, 2011, 2012 and 2013

(in thousands)

 

     Year Ended December 31,  
     2011     2012     2013  

Revenues

   $ —        $ —        $ —     

Cost of operations

     2,193        2,182        2,215   
  

 

 

   

 

 

   

 

 

 

Operating loss

     (2,193     (2,182     (2,215

Other income

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Loss before income taxes and equity in income of subsidiaries

     (2,193     (2,182     (2,215

Income taxes

     823        818        842   

Equity in income of subsidiaries, net of taxes

     131,927        170,313        149,843   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 130,557      $ 168,949      $ 148,470   
  

 

 

   

 

 

   

 

 

 

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, 2011, 2012 AND 2013

(In thousands)

 

     2011     2012     2013  

Net income

   $ 130,557      $ 168,949      $ 148,470   

Other comprehensive income (loss), net of tax

      

Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $3,786, $557 and $1,865

     (2,830     1,020        3,151   

Unrealized gain (loss) due to fair value adjustments on available-for-sale securities, net of taxes of $8,128, $1,499 and $1,223

     (13,566     2,499        (2,041

Amortization of accumulated other comprehensive loss on terminated swap agreement

     4,236        2,470        —     

Other comprehensive income in equity method investments

     —          —          2,386   

Foreign currency translation adjustments

     (46,058     (20,005     (47,617
  

 

 

   

 

 

   

 

 

 

Total other comprehensive loss, net of tax

     (58,218     (14,016     (44,121
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

     72,339        154,933        104,349   

Comprehensive income attributable to noncontrolling interests

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Cinemark Holdings, Inc.

   $ 72,339      $ 154,933      $ 104,349   
  

 

 

   

 

 

   

 

 

 

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, 2011, 2012 and 2013

(in thousands)

 

     Year Ended December 31,  
     2011     2012     2013  

Operating Activities

      

Net income

   $ 130,557      $ 168,949      $ 148,470   

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

      

Share based awards compensation expense

     666        750        840   

Equity in income of subsidiaries

     (131,927     (170,313     (149,843

Changes in other assets and liabilities

     1,516        4,448        4,301   
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     812        3,834        3,768   

Investing Activities

      

Dividends received from subsidiaries

     95,000        95,750        105,150   
  

 

 

   

 

 

   

 

 

 

Net cash provided by investing activities

     95,000        95,750        105,150   

Financing Activities

      

Proceeds from stock option exercises

     444        459        57   

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

     (494     (3,263     (3,464

Dividends paid to stockholders

     (95,838     (96,367     (106,045
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

     (95,888     (99,171     (109,452
  

 

 

   

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     (76     413        (534

Cash and cash equivalents:

      

Beginning of period

     232        156        569   
  

 

 

   

 

 

   

 

 

 

End of period

   $ 156      $ 569      $ 35   
  

 

 

   

 

 

   

 

 

 

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 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, 2013, the restricted net assets totaled approximately $792,605 and $1,007,893 under the amended senior secured credit facility and the Notes, respectively. See Note 12 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)

02/24/11

  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
       

 

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
       

 

 

(1) 

Of the dividends recorded during 2011, 2012 and 2013, $684, $894 and $772, respectively, were related to outstanding restricted stock units and will not be paid until such units vest. See Note 19 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, 2011, 2012 and 2013, Cinemark Holdings, Inc. received cash dividends of $95,000, $95,750 and $105,150, 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, 2012 and 2013 of approximately $5,356 and $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 12 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 18 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 21 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.