Print Page  |  Close Window

SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 11/03/2017
Entire Document
 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

Below is summary financial information for NCM for the three and six months ended June 29, 2017 (the financial information for the three and nine months ended September 28, 2017 is not yet available) and the three and nine months ended September 29, 2016:

 

 

 

Three Months

 

 

Six Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

Ended

June 29, 2017

 

 

June 29, 2017

 

 

September 29, 2016

 

 

September 29, 2016

 

Gross revenues

 

$

97,042

 

 

$

168,962

 

 

$

113,476

 

 

$

305,101

 

Operating income

 

$

28,430

 

 

$

33,500

 

 

$

48,481

 

 

$

100,911

 

Net income

 

$

15,377

 

 

$

7,465

 

 

$

23,909

 

 

$

49,619

 

 

 

7.

Other Investments

Below is a summary of activity for each of the Company’s other investments for the nine months ended September 30, 2017:

 

 

 

DCIP

 

 

AC JV,

LLC

 

 

DCDC

 

 

Other

 

 

Total

 

Balance at January 1, 2017

 

$

87,819

 

 

$

5,980

 

 

$

2,750

 

 

$

1,768

 

 

$

98,317

 

Cash contributions

 

 

1,109

 

 

 

 

 

 

 

 

 

68

 

 

 

1,177

 

Cash distributions

 

 

(5,212

)

 

 

 

 

 

 

 

 

 

 

 

(5,212

)

Equity in income

 

 

16,820

 

 

 

996

 

 

 

853

 

 

 

 

 

 

18,669

 

Equity in other comprehensive income

 

 

92

 

 

 

 

 

 

 

 

 

 

 

 

92

 

Other

 

 

 

 

 

 

 

 

 

 

 

(165

)

 

 

(165

)

Balance at September 30, 2017

 

$

100,628

 

 

$

6,976

 

 

$

3,603

 

 

$

1,671

 

 

$

112,878

 

 

Digital Cinema Implementation Partners LLC (“DCIP”)

On February 12, 2007, the Company, AMC and Regal entered into a joint venture known as DCIP to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. As of September 30, 2017, the Company had a 33% voting interest in DCIP and a 24.3% economic interest in DCIP. The Company accounts for its investment in DCIP and its subsidiaries under the equity method of accounting.

Below is summary financial information for DCIP for the three and nine months ended September 30, 2017 and 2016.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2017

 

 

September 30, 2016

 

 

September 30, 2017

 

 

September 30, 2016

 

Gross revenues

 

$

39,961

 

 

$

48,274

 

 

$

132,535

 

 

$

133,675

 

Operating income

 

$

22,702

 

 

$

31,180

 

 

$

80,574

 

 

$

82,369

 

Net income

 

$

19,701

 

 

$

26,949

 

 

$

69,458

 

 

$

67,728

 

 

As of September 30, 2017, the Company had 3,796 digital projection systems being leased under the master equipment lease agreement with Kasima LLC, which is an indirect subsidiary of DCIP and a related party to the Company. The Company had the following transactions, reflected in utilities and other costs on the condensed consolidated income statement, with DCIP during the three and nine months ended September 30, 2017 and 2016:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2017

 

 

September 30, 2016

 

 

September 30, 2017

 

 

September 30, 2016

 

Equipment lease payments

 

$

1,452

 

 

$

1,333

 

 

$

4,333

 

 

$

3,864

 

Warranty reimbursements from DCIP

 

$

(2,234

)

 

$

(1,608

)

 

$

(6,141

)

 

$

(4,367

)

Management service fees

 

$

207

 

 

$

207

 

 

$

619

 

 

$

619

 

 

14