Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

3. Earnings Per Share

The Company considers its unvested restricted stock awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. Basic earnings per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

The following table presents computations of basic and diluted earnings per share under the two-class method:

	Three Months Ended
	March 31,
	2014			2013
Numerator:
Net income attributable to Cinemark Holdings, Inc.	$	35,443		$	32,594
Earnings allocated to participating share-based awards (1)		(211	)		(318	)
Net income attributable to common stockholders	$	35,232		$	32,276
Denominator (shares in thousands):
Basic weighted average common stock outstanding		114,182			113,447
Common equivalent shares for stock options		—			15
Common equivalent shares for restricted stock units		428			517
Diluted		114,610			113,979
Basic earnings per share attributable to common stockholders	$	0.31		$	0.28
Diluted earnings per share attributable to common stockholders	$	0.31		$	0.28

⁽¹⁾  For the three months ended March 31, 2014 and 2013, a weighted average of approximately 689 and 1,128 shares of unvested restricted stock, respectively, were considered participating securities.