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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

 

Financial Information About Geographic Areas

Below is a breakdown of selected financial information by geographic area:

 

 

 

Three Months Ended

 

 

 

March 31,

 

Revenues

 

2018

 

 

2017

 

U.S.

 

$

599,645

 

 

$

581,209

 

Brazil

 

 

80,136

 

 

 

94,699

 

Other international countries

 

 

103,492

 

 

 

107,369

 

Eliminations

 

 

(3,302

)

 

 

(3,667

)

Total

 

$

779,971

 

 

$

779,610

 

 

 

 

As of

 

 

As of

 

Theatre Properties and Equipment-net

 

March 31, 2018

 

 

December 31, 2017

 

U.S.

 

$

1,450,758

 

 

$

1,439,168

 

Brazil

 

 

174,341

 

 

 

179,669

 

Other international countries

 

 

210,553

 

 

 

209,217

 

Total

 

$

1,835,652

 

 

$

1,828,054

 

 

16.

Related Party Transactions

The Company manages theatres for Laredo Theatre, Ltd. (“Laredo”). The Company is the sole general partner and owns 75% of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25% of the limited partnership interests in Laredo and is 100% owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is the Company’s Chairman of the Board of Directors and directly and indirectly owns approximately 8% of the Company’s common stock. Under the agreement, management fees are paid by Laredo to the Company at a rate of 5% of annual theatre revenues up to $50,000 and 3% of annual theatre revenues in excess of $50,000. The Company recorded $141 and $141 of management fee revenues during the three months ended March 31, 2018 and 2017, respectively. All such amounts are included in the Company’s condensed consolidated financial statements with the intercompany amounts eliminated in consolidation.

The Company has an Aircraft Time Sharing Agreement with Copper Beech Capital, LLC (“Copper Beech”) to use, on occasion, a private aircraft owned by Copper Beech. Copper Beech is owned by Mr. Mitchell and his wife, Tandy Mitchell. The private aircraft is used by Mr. Mitchell and other executives who accompany Mr. Mitchell to business meetings for the Company. The Company reimburses Copper Beech for the actual costs of fuel usage and the expenses of the pilots, landing fees, storage fees and similar expenses incurred during the trip.  For the three months ended March 31, 2018 and 2017, the aggregate amounts paid to Copper Beech for the use of the aircraft was $14 and $15, respectively.

The Company leases 14 theatres and one parking facility from Syufy Enterprises, LP (“Syufy”) or affiliates of Syufy. Raymond Syufy is one of the Company’s directors and is an officer of the general partner of Syufy. Of these 15 leases, 14 have fixed minimum annual rent. The one lease without minimum annual rent has rent based upon a specified percentage of gross sales as defined in the lease. For the three months ended March 31, 2018 and 2017, the Company paid total rent of approximately $7,880 and $7,326, respectively, to Syufy.

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