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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

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

There have been no material changes from legal proceedings previously reported under “Business – Legal Proceedings” in our Annual Report on Form 10-K for the year ended December 31, 2015 filed February 24, 2016.

Item 1A. Risk Factors

There have been no material changes from risk factors previously disclosed in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015 filed February 24, 2016.

Item 5. Other Information

Reclassification of Certain Expenses

As a result of certain financial statement reclassifications the Company made effective January 1, 2016 that are discussed in Note 1 to the condensed consolidated financial statements, the Company has presented below the impact of such reclassifications on the financial information for the nine months ended September 30, 2015 and the year ended December 31, 2015.

 

     As Reported      Reclassifications     As Adjusted  
     Nine Months
Ended
September 30,
2015 (1)
     Year Ended
December 31,
2015
     Nine Months
Ended
September 30,
2015 (1)
    Year Ended
December 31,
2015 (1)
    Nine Months
Ended
September 30,
2015 (1)
     Year Ended
December 31,
2015 (1)
 

Film rentals and advertising

   $ 737,377       $ 976,590       $ (24,071   $ (30,950   $ 713,306       $ 945,640   

Utilities and other

   $ 245,081       $ 324,851       $ 24,071      $ 30,950      $ 269,152       $ 355,801   

 

(1)  Amounts unaudited.

Calculation of Adjusted EBITDA

The Company includes Adjusted EBITDA in its segment disclosure, which is included in Note 14 to the condensed consolidated financial statements. Adjusted EBITDA is a non-GAAP financial measure commonly used in the Company’s industry. The Company includes Adjusted EBITDA in its financial statement disclosures because the Company uses Adjusted EBITDA as the primary measure of segment profit and loss to evaluate performance and allocate its resources, and believes it provides management and investors with additional information to measure the Company’s performance and liquidity, estimate the Company’s value and evaluate its ability to service debt. In addition, the Company uses Adjusted EBITDA for incentive compensation purposes.

The Company receives cash distributions from certain of its equity investees that, under equity method accounting, are applied against the investment basis of such equity investees. The Company has determined that including these cash distributions in its calculation of Adjusted EBITDA provides investors with meaningful information regarding the Company’s performance and liquidity and does so in a manner comparable with industry peers. As noted in Note 14 to the condensed consolidated financial statements, the Company began including such cash distributions received from equity investees that were recorded as a reduction of the respective investment balances as part of its Adjusted EBITDA calculation. The change was made effective beginning with the three months ended March 31, 2016, with prior periods being recast to reflect the same presentation. The table below presents Adjusted EBITDA for the nine months ended September 30, 2015 and the year ended December 31, 2015 on this recast basis.

 

     Nine Months Ended
September 30, 2015
     Year Ended
December 31, 2015
 

Adjusted EBITDA—as reported

   $ 495,351       $ 663,755   

Cash distributions received from equity investees, recorded as a reduction of the respective investment balances

     12,679         19,027   
  

 

 

    

 

 

 

Adjusted EBITDA – as adjusted

   $ 508,030       $ 682,782   
  

 

 

    

 

 

 

 

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