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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 05/10/2016
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Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

     Three Months Ended  
     March 31,  
     2016      2015  

Numerator:

     

Net income attributable to Cinemark Holdings, Inc.

   $ 58,525       $ 42,521   

Earnings allocated to participating share-based awards (1)

     (244      (218
  

 

 

    

 

 

 

Net income attributable to common stockholders

   $ 58,281       $ 42,303   
  

 

 

    

 

 

 

Denominator (shares in thousands):

     

Basic weighted average common stock outstanding

     115,245         114,837   

Common equivalent shares for restricted stock units

     282         221   
  

 

 

    

 

 

 

Diluted

     115,527         115,058   
  

 

 

    

 

 

 

Basic earnings per share attributable to common stockholders

   $ 0.50       $ 0.37   
  

 

 

    

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 0.50       $ 0.37   
  

 

 

    

 

 

 

 

(1)  For the three months ended March 31, 2016 and 2015, a weighted average of approximately 485 and 595 shares of unvested restricted stock, respectively, were considered participating securities.

4. Long Term Debt Activity

Issuance of Additional 4.875% Senior Notes

On March 21, 2016, Cinemark USA, Inc. issued an additional $225,000 aggregate principal amount of 4.875% senior notes due 2023 (the “4.875% Senior Notes”), at 99.0% of the principal amount plus accrued and unpaid interest from December 1, 2015. Proceeds, after payment of fees, were used to finance the redemption of Cinemark, USA, Inc.’s $200,000 7.375% senior subordinated notes due 2021 (the “7.375% Senior Subordinated Notes”), as discussed below. These additional notes have identical terms, other than the issue date, the issue price and the first interest payment date, and constitute part of the same series as Cinemark USA, Inc.’s existing 4.875% Senior Notes. The aggregate principal amount of $755,000 of 4.875% Senior Notes mature on June 1, 2023. The Company incurred debt issue costs of approximately $3,656 in connection with the issuance of the additional notes, which, along with the discount of $2,250, are reflected as a reduction of long term debt as of March 31, 2016.

On April 5, 2016, Cinemark USA, Inc. and its guarantor subsidiaries filed a registration statement with the Securities and Exchange Commission (the “Commission”), pursuant to which Cinemark USA, Inc. offered to exchange the additional 4.875% Senior Notes for substantially identical notes registered under the Securities Act of 1933, as amended, that do not contain terms restricting the transfer thereof or providing for registration rights. The registration statement was declared effective April 18, 2016, and the notes are expected to be exchanged by May 16, 2016.

Redemption of 7.375% Senior Subordinated Notes

On March 21, 2016, Cinemark USA, Inc. redeemed its $200,000 7.375% Senior Subordinated Notes at a make-whole premium of approximately 104% plus accrued and unpaid interest, utilizing the proceeds from the issuance of the additional $225,000 Cinemark USA, Inc. 4.875% Senior Notes discussed above. As a result of the redemption, the Company wrote-off approximately $2,369 in unamortized debt issue costs, paid the make-whole premium of $9,670 and paid other fees of $1,147, all of which are reflected in loss on early retirement of debt during the three months ended March 31, 2016.

 

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