Print Page  |  Close Window

SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 11/05/2015
Entire Document
 


Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

3. Earnings Per Share

The Company considers its unvested restricted stock awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. Basic earnings per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

The following table presents computations of basic and diluted earnings per share under the two-class method:

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2015      2014      2015      2014  

Numerator:

           

Net income attributable to Cinemark Holdings, Inc.

   $ 46,339       $ 38,129       $ 159,118       $ 145,303   

Earnings allocated to participating share based awards (1)

     (304      (293      (938      (1,004
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to common stockholders

   $ 46,035       $ 37,836       $ 158,180       $ 144,299   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator (shares in thousands):

           

Basic weighted average common stock outstanding

     115,164         114,814         115,051         114,596   

Common equivalent shares for restricted stock units

     192         207         228         305   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     115,356         115,021         115,279         114,901   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share attributable to common stockholders

   $ 0.40       $ 0.33       $ 1.37       $ 1.25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 0.40       $ 0.33       $ 1.37       $ 1.25   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the three months ended September 30, 2015 and 2014, a weighted average of approximately 762 and 888 shares of unvested restricted stock, respectively, were considered participating securities. For the nine months ended September 30, 2015 and 2014, a weighted average of approximately 684 and 801 shares of unvested restricted stock, respectively, were considered participating securities.

 

4. Long Term Debt Activity

Amended Senior Secured Credit Facility

On May 8, 2015, Cinemark USA, Inc., our wholly-owned subsidiary, amended its senior secured credit facility (“Amended and Restated Credit Agreement”), to extend the maturity of the $700,000 term loan from December 2019 to May 2022. Quarterly principal payments in the amount of $1,750 are due on the term loan through March 31, 2022, with the remaining principal of $635,250 due on May 8, 2022. The Company incurred debt issue costs of approximately $6,875 in connection with the amendment, which are reflected in deferred charges and other assets-net on the condensed consolidated balance sheet as of September 30, 2015. In addition, the Company incurred approximately $925 in legal and other fees that are reflected as loss on amendment to debt agreement on the condensed consolidated statement of income for the nine months ended September 30, 2015.

Fair Value of Long-Term Debt

The Company estimates the fair value of its long-term debt using the market approach, which utilizes quoted market prices that fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by FASB Accounting Standards Codification (“ASC”) Topic 820-10-35, Fair Value Measurement. The carrying value of the Company’s long-term debt was $1,817,718 and $1,822,997 as of September 30, 2015 and December 31, 2014, respectively. The fair value of the Company’s long-term debt was $1,797,284 and $1,790,987 as of September 30, 2015 and December 31, 2014, respectively.

 

10