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SEC Filings

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


Table of Contents

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

The following table sets forth a reconciliation of net income to Adjusted EBITDA:

 

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

Net income

   $ 54,368       $ 70,890       $ 113,414       $ 113,792   

Add (deduct):

           

Income taxes

     31,617         42,774         65,076         69,154   

Interest expense (1)

     27,262         28,304         55,321         56,511   

Other income (2)

     (7,590      (8,400      (17,970      (6,952

Loss on debt amendments and refinancing

     98         925         13,284         925   

Other cash distributions from equity investees (3)

     184         1,045         8,270         8,309   

Depreciation and amortization

     52,358         46,569         101,687         91,901   

Impairment of long-lived assets

     1,425         3,528         1,917         4,322   

Loss on sale of assets and other

     5,824         5,802         4,045         4,352   

Deferred lease expenses

     (207      (585      (647      (1,288

Amortization of long-term prepaid rents

     514         669         985         1,382   

Share based awards compensation expense

     2,542         2,977         7,660         6,475   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 168,395       $ 194,498       $ 353,042       $ 348,883   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

(1)  Includes amortization of debt issue costs.
(2)  Includes interest income, foreign currency exchange (gain) loss and equity in income of affiliates and excludes distributions from NCM.
(3)  Includes cash distributions received from equity investees that were recorded as a reduction of the respective investment balances. In an effort to more closely align our reported Adjusted EBITDA with our operating cash flow and for consistency with our peers, beginning with the three months ended March 31, 2016, Adjusted EBITDA now includes total cash distributions received from equity investees, including the cash distributions recorded as a reduction of the respective investment balance. Adjusted EBITDA for the three and six months ended June 30, 2015 has been adjusted to reflect comparable presentations.

Financial Information About Geographic Areas

Below is a breakdown of selected financial information by geographic area:

 

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

Revenues

           

U.S.

   $ 560,534       $ 592,482       $ 1,104,449       $ 1,066,777   

Brazil

     74,996         84,320         146,505         162,613   

Other international countries

     112,565         127,185         205,231         223,225   

Eliminations

     (3,691      (4,055      (6,912      (7,285
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 744,404       $ 799,932       $ 1,449,273       $ 1,445,330   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     June 30,
2016
     December 31,
2015
 

Theatre Properties and Equipment-net

     

U.S.

   $ 1,220,154       $ 1,175,535   

Brazil

     198,241         163,505   

Other international countries

     172,385         166,029   
  

 

 

    

 

 

 

Total

   $ 1,590,780       $ 1,505,069   
  

 

 

    

 

 

 

15. Related Party Transactions

The Company manages theatres for Laredo Theatre, Ltd. (“Laredo”). The Company is the sole general partner and owns 75% of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25% of the limited partnership interests in Laredo and is 100% owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is the Company’s Chairman of the Board of Directors and directly and indirectly owns approximately

 

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