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SEC Filings

10-Q
CINEMARK HOLDINGS, INC. filed this Form 10-Q on 05/09/2018
Entire Document
 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In thousands, except share and per share data

 

6.

Equity

Below is a summary of changes in stockholders’ equity attributable to Cinemark Holdings, Inc., noncontrolling interests and total equity for the three months ended March 31, 2018 and 2017:

 

 

 

Cinemark

 

 

 

 

 

 

 

 

 

 

 

Holdings, Inc.

 

 

 

 

 

 

 

 

 

 

 

Stockholders’

 

 

Noncontrolling

 

 

Total

 

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at January 1, 2018

 

$

1,393,795

 

 

$

11,893

 

 

$

1,405,688

 

Cumulative effect of change in accounting principle, net of taxes of $13,079 (see Note 3)

 

 

40,526

 

 

 

 

 

 

40,526

 

Share based awards compensation expense

 

 

3,426

 

 

 

 

 

 

3,426

 

Stock withholdings related to share based awards that vested during the three months ended March 31, 2018

 

 

(2,695

)

 

 

 

 

 

(2,695

)

Dividends paid to stockholders (1)

 

 

(37,346

)

 

 

 

 

 

(37,346

)

Dividends accrued on unvested restricted stock unit awards (1)

 

 

(125

)

 

 

 

 

 

(125

)

Net income

 

 

62,021

 

 

 

156

 

 

 

62,177

 

Other comprehensive income in equity method investees

 

 

136

 

 

 

 

 

 

136

 

Foreign currency translation adjustments

 

 

204

 

 

 

 

 

 

204

 

Balance at March 31, 2018

 

$

1,459,942

 

 

$

12,049

 

 

$

1,471,991

 

 

 

(1)

The Company’s board of directors declared a cash dividend for the fourth quarter of 2017 in the amount of $0.32 per share of common stock payable to stockholders of record on March 8, 2018.  The dividend was paid on March 22, 2018.  

 

 

 

Cinemark

 

 

 

 

 

 

 

 

 

 

 

Holdings, Inc.

 

 

 

 

 

 

 

 

 

 

 

Stockholders’

 

 

Noncontrolling

 

 

Total

 

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at January 1, 2017

 

$

1,261,818

 

 

$

11,142

 

 

$

1,272,960

 

Share based awards compensation expense

 

 

3,241

 

 

 

 

 

3,241

 

Stock withholdings related to share based awards that

   vested during the three months ended March 31, 2017

 

 

(2,694

)

 

 

 

 

(2,694

)

Dividends paid to stockholders (2)

 

 

(33,760

)

 

 

 

 

(33,760

)

Dividends accrued on unvested restricted stock unit

   awards (2)

 

 

(153

)

 

 

 

 

(153

)

Dividends paid to noncontrolling interests

 

 

 

 

(294

)

 

 

(294

)

Net income

 

 

79,728

 

 

 

466

 

 

 

80,194

 

Other comprehensive income in equity method investees

 

 

198

 

 

 

 

 

198

 

Foreign currency translation adjustments

 

 

13,342

 

 

 

 

 

13,342

 

Balance at March 31, 2017

 

$

1,321,720

 

 

$

11,314

 

 

$

1,333,034

 

 

 

(2)

The Company’s board of directors declared a cash dividend for the fourth quarter of 2016 in the amount of $0.29 per share of common stock payable to stockholders of record on March 8, 2017.  The dividend was paid on March 20, 2017.  

 

7.

Investment in National CineMedia

The Company has an investment in NCM.  NCM operates a digital in-theatre network in the U.S. for providing cinema advertising. Upon joining NCM, the Company entered into an Exhibitor Services Agreement with NCM (“ESA”), pursuant to which NCM provides advertising and promotions to our theatres. As described further in Note 5 to the Company’s financial statements as included in its 2017 Annual Report on Form 10-K, on February 13, 2007, NCMI, an entity that serves as the sole manager of NCM, completed an initial public offering (“IPO”) of its common stock. In connection with the NCMI initial public offering, the Company amended its operating agreement and the ESA. Following the NCM, Inc. IPO, the Company does not recognize undistributed equity in the earnings on its original NCM membership units (referred to herein as the Company’s Tranche 1 Investment) until NCM’s future

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