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SEC Filings

10-K
CINEMARK HOLDINGS, INC. filed this Form 10-K on 02/23/2018
Entire Document
 

CINEMARK HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

18.

SEGMENTS

The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report asset information by segment because that information is not used to evaluate the performance or allocate resources between segments.

Below is a breakdown of select financial information by reportable operating segment:

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2016

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,137,733

 

 

$

2,230,693

 

 

$

2,236,237

 

International

 

 

728,735

 

 

 

701,573

 

 

 

769,436

 

Eliminations

 

 

(13,859

)

 

 

(13,501

)

 

 

(14,126

)

Total revenues

 

$

2,852,609

 

 

$

2,918,765

 

 

$

2,991,547

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

516,366

 

 

$

548,413

 

 

$

558,182

 

International

 

 

166,416

 

 

 

157,690

 

 

 

165,576

 

Total Adjusted EBITDA

 

$

682,782

 

 

$

706,103

 

 

$

723,758

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

223,213

 

 

$

242,271

 

 

$

321,040

 

International

 

 

108,513

 

 

 

84,637

 

 

 

59,822

 

Total capital expenditures

 

$

331,726

 

 

$

326,908

 

 

$

380,862

 

 

(1)

Distributions from equity investees are reported entirely within the U.S. operating segment

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

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2016

 

 

2017

 

Net income

 

$

218,728

 

 

$

256,827

 

 

$

266,019

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

128,939

 

 

 

103,819

 

 

 

79,358

 

Interest expense (1)

 

 

112,741

 

 

 

108,313

 

 

 

105,918

 

Loss on debt amendments and refinancing

 

 

925

 

 

 

13,445

 

 

 

521

 

Other income (2)

 

 

(20,041

)

 

 

(44,813

)

 

 

(43,127

)

Other cash distributions from equity investees (3)

 

 

19,027

 

 

 

21,916

 

 

 

25,973

 

Depreciation and amortization

 

 

189,206

 

 

 

209,071

 

 

 

237,513

 

Impairment of long-lived assets

 

 

8,801

 

 

 

2,836

 

 

 

15,084

 

Loss on sale of assets and other

 

 

8,143

 

 

 

20,459

 

 

 

22,812

 

Deferred lease expenses

 

 

(1,806

)

 

 

(990

)

 

 

(1,268

)

Amortization of long-term prepaid rents

 

 

2,361

 

 

 

1,826

 

 

 

2,274

 

Share based awards compensation expense

 

 

15,758

 

 

 

13,394

 

 

 

12,681

 

Adjusted EBITDA

 

$

682,782

 

 

$

706,103

 

 

$

723,758

 

 

(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 distributions received from equity investees that were recorded as a reduction of the respective investment balances.  

 

F-40