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SEC Filings

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

 

Our international theatre circuit consisted of 194 theatres with 1,398 screens at March 31, 2018. At March 31, 2018, we had signed commitments to open nine new theatres and 49 screens in international markets during the remainder of 2018 and open two new theatres and 12 screens subsequent to 2018. We estimate the remaining capital expenditures for the development of these 61 international screens will be approximately $37 million.

Actual expenditures for continued theatre development, remodels and acquisitions are subject to change based upon the availability of attractive opportunities.  We plan to fund capital expenditures for our continued development with cash flow from operations, borrowings under our senior secured credit facility, and proceeds from debt issuances, sale leaseback transactions and/or sales of excess real estate.

Financing Activities

Cash used for financing activities was $53.4 million for the three months ended March 31, 2018 compared to $41.7 million for the three months ended March 31, 2017.  The increase was primarily due to the payment of debt issuance costs associated with the amendment of our senior secured credit facility (see Note 5 to our condensed consolidated financial statements) and the increase in the quarterly cash dividend from $0.29 to $0.32 per share of common stock.  

We, at the discretion of the board of directors and subject to applicable law, anticipate paying regular quarterly dividends on our common stock. The amount, if any, of the dividends to be paid in the future will depend upon our then available cash balance, anticipated cash needs, overall financial condition, loan agreement restrictions as discussed below, future prospects for earnings and cash flows, as well as other relevant factors.  

We may from time to time, subject to compliance with our debt instruments, purchase our debt securities on the open market depending upon the availability and prices of such securities. Long-term debt consisted of the following as of March 31, 2018 (in millions):

 

Cinemark USA, Inc. term loan

 

$

657.9

 

Cinemark USA, Inc. 5.125% senior notes due 2022

 

 

400.0

 

Cinemark USA, Inc. 4.875% senior notes due 2023

 

 

755.0

 

Other

 

2.8

 

Total long-term debt

 

$

1,815.7

 

Less current portion

 

 

8.0

 

Subtotal long-term debt, less current portion

 

$

1,807.7

 

Less:  Debt discounts and debt issuance costs, net of accumulated amortization

 

 

32.4

 

Long-term debt, less current portion, net of debt issuance costs

 

$

1,775.3

 

 

As of March 31, 2018, Cinemark USA, Inc. had $100.0 million in available borrowing capacity on its revolving credit line.

Contractual Obligations

In March 2018, Cinemark USA, Inc. amended its senior secured credit facility, which extended the maturity of the term loan to March 2025. Included below is an updated summary of long-term debt obligations and related estimated scheduled interest payment obligations as of March 31, 2018, reflecting the amended agreement.

 

 

Payments Due by Period

 

 

 

(in millions)

 

 

 

 

 

 

 

Less Than

 

 

 

 

 

 

 

 

 

 

After

 

Contractual Obligations

 

Total

 

 

One Year

 

 

1 - 3 Years

 

 

3 - 5 Years

 

 

5 Years

 

Long-term debt (1)

 

$

1,815.7

 

 

$

8.0

 

 

$

14.6

 

 

$

413.2

 

 

$

1,379.9

 

Scheduled interest payments on long-term debt(2)

 

$

426.0

 

 

$

82.0

 

 

$

163.0

 

 

$

134.5

 

 

$

46.5

 

 

 

(1)

Amounts are presented before adjusting for debt issuance costs.

 

(2)

Amounts include scheduled interest payments on fixed rate and variable rate debt agreements.  Estimates for the variable rate interest payments were based on interest rates in effect on March 31, 2018. The average interest rates in effect on our fixed rate and variable rate debt are 5.0% and 3.8%, respectively, as of March 31, 2018.

There have been no other material changes in our contractual obligations previously disclosed in “Liquidity and Capital Resources” in our Annual Report on Form 10-K for the year ended December 31, 2017 filed February 23, 2018.

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