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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 08/09/2016
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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

 

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      Six Months Ended  
     June 30,      June 30,  
     2016      2015      2016      2015  

Numerator:

           

Net income attributable to Cinemark Holdings, Inc.

   $ 53,906       $ 70,258       $ 112,431       $ 112,779   

Earnings allocated to participating share-based awards (1)

     (272      (441      (496      (709
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to common stockholders

   $ 53,634       $ 69,817       $ 111,935       $ 112,070   
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator (shares in thousands):

           

Basic weighted average common stock outstanding

     115,576         115,148         115,411         114,993   

Common equivalent shares for restricted stock units

     182         180         249         222   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     115,758         115,328         115,660         115,215   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share attributable to common stockholders

   $ 0.46       $ 0.61       $ 0.97       $ 0.97   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 0.46       $ 0.61       $ 0.97       $ 0.97   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  For the three months ended June 30, 2016 and 2015, a weighted average of approximately 588 and 729 shares of unvested restricted stock, respectively, were considered participating securities. For the six months ended June 30, 2016 and 2015, a weighted average of approximately 514 and 648 shares of unvested restricted stock, respectively, were considered participating securities.

4. Long Term Debt Activity

Senior Secured Credit Facility

On May 16, 2016, Cinemark USA, Inc. made a pre-payment of $13,451 on its term loan using the net proceeds received from the sale of shares of RealD (see Note 7). In accordance with the terms of the senior secured credit facility agreement, the pre-payment was applied first to the next four principal installments, and second, to the remaining installments pro-rata based on the remaining outstanding principal amount of such installments. Therefore, quarterly payments in the amount of $1,427 are due on the term loan beginning June 30, 2017 through March 31, 2022, with the remaining principal of $635,250 due on May 8, 2022. The Company did not incur any fees as a result of the pre-payment.

On June 13, 2016, Cinemark USA, Inc., our wholly-owned subsidiary, amended its senior secured credit facility to reduce the rate at which the term loan bears interest by 0.25%. The Company incurred debt issue costs of approximately $802 in connection with the amendment, which are reflected as a reduction of long term debt on the condensed consolidated balance sheet as of June 30, 2016. In addition, the Company incurred approximately $249 in legal and other fees that are reflected as loss on debt amendments and refinancing on the condensed consolidated statements of income for the six months ended June 30, 2016.

 

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