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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

Investing Activities

Our investing activities have been principally related to the development, remodel and acquisition of theatres. New theatre openings and acquisitions historically have been financed with internally generated cash and by debt financing, including borrowings under our senior secured credit facility. Cash used for investing activities was $133.6 million for the six months ended June 30, 2016 compared to $155.2 million for the six months ended June 30, 2015.

Capital expenditures for the six months ended June 30, 2016 and 2015 were as follows (in millions):

 

Period

   New
Theatres
     Existing
Theatres
    Total  

Six Months Ended June 30, 2016

   $ 39.4       $ 92.1      $ 131.5   

Six Months Ended June 30, 2015

   $ 56.0       $  99.7 (a)    $ 155.7   

 

(a)  Includes approximately $26.3 million for the purchase of our corporate headquarters building in Plano, TX.

Capital expenditures for existing properties in the table above includes the costs of remodeling certain of our existing theatres to include Luxury Loungers and expanded concession offerings. During the six months ended June 30, 2016 and 2015, we had an average of 65 and 28 of our domestic screens, respectively, temporarily closed for such remodels.

Our U.S. theatre circuit consisted of 4,576 screens at June 30, 2016. During the six months ended June 30, 2016, we built three new theatres with 33 screens, acquired four theatres with 52 screens and closed three theatres and 27 screens. At June 30, 2016, we had signed commitments to open two new theatres with 28 screens in domestic markets during the remainder of 2016 and open eight new theatres with 80 screens subsequent to 2016. We estimate the remaining capital expenditures for the development of these 108 domestic screens will be approximately $66.0 million.

Our international theatre circuit consisted of 1,312 screens at June 30, 2016. During the six months ended June 30, 2016, we built six new theatres with 43 screens and closed one theatre with nine screens. At June 30, 2016, we had signed commitments to open seven new theatres and 41 screens in international markets during the remainder of 2016 and open four new theatres and 29 screens subsequent to 2016. We estimate the remaining capital expenditures for the development of these 70 international screens will be approximately $39.0 million.

Actual expenditures for continued theatre development, remodels and acquisitions are subject to change based upon the availability of attractive opportunities. We plan to fund capital expenditures for our continued development with cash flow from operations, borrowings under our senior secured credit facility, and proceeds from debt issuances, sale leaseback transactions and/or sales of excess real estate.

Financing Activities

Cash used for financing activities was $74.8 million for the six months ended June 30, 2016 compared to $79.1 million for the six months ended June 30, 2015. Financing activities for the six months ended June 30, 2016 included the redemption of Cinemark USA, Inc.’s $200.0 million 7.375% Senior Subordinated Notes with proceeds from the issuance of a $225.0 million add-on to Cinemark USA, Inc.’s existing 4.875% Senior Notes. See Note 4 to our condensed consolidated financial statements.

We, at the discretion of the board of directors and subject to applicable law, anticipate paying regular quarterly dividends on our common stock. The amount, if any, of the dividends to be paid in the future will depend upon our then available cash, anticipated cash needs, overall financial condition, loan agreement restrictions as discussed below, future prospects for earnings and cash flows, as well as other relevant factors.

We may from time to time, subject to compliance with our debt instruments, purchase our debt securities on the open market depending upon the availability and prices of such securities. Long-term debt consisted of the following as of June 30, 2016 (in millions):

 

Cinemark USA, Inc. term loan

   $ 663.8   

Cinemark USA, Inc. 5.125% senior notes due 2022

     400.0   

Cinemark USA, Inc. 4.875% senior notes due 2023

     755.0   

Other

     5.6   
  

 

 

 

Total long-term debt

   $ 1,824.4   

Less current portion

     2.8   
  

 

 

 

Subtotal long-term debt, less current portion

   $ 1,821.6   

Less: Debt discounts and debt issuance costs

     35.0   
  

 

 

 

Long-term debt, less current portion, net of debt issuance costs

   $ 1,786.6   
  

 

 

 

 

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