SCHEDULE 1 — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CINEMARK HOLDINGS, INC.

PARENT COMPANY BALANCE SHEETS

(In thousands, except share data)


	December 31, 2015			December 31, 2016
Assets
Cash and cash equivalents	$	36		$	97
Prepaid assets		—			7
Investment in subsidiaries		1,102,148			1,272,938

Total assets	$	1,102,184		$	1,273,042

Liabilities and equity
Liabilities
Accrued other current liabilities, including accounts payable to subsidiaries	$	1,794		$	10,504
Other long-term liabilities		682			720

Total liabilities		2,476			11,224
Commitments and contingencies (see Note 6)
Equity
Common stock, $0.001 par value: 300,000,000 shares authorized; 120,107,563 shares issued and 115,924,059 shares outstanding at December 31, 2015 and 120,657,254 shares issued and 116,210,252 shares outstanding at December 31, 2016		120			121
Additional paid-in-capital		1,113,219			1,128,442
Treasury stock, 4,183,504 and 4,447,002 common shares at cost at December 31, 2015 and December 31, 2016, respectively		(66,577	)		(73,411	)
Retained earnings		324,632			453,679
Accumulated other comprehensive loss		(271,686	)		(247,013	)

Total equity		1,099,708			1,261,818

Total liabilities and equity	$	1,102,184		$	1,273,042

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31, 2014, 2015 and 2016

(in thousands)


	2014			2015			2016
Revenues	$	—		$	—		$	—
Cost of operations		2,857			2,684			2,717

Operating loss		(2,857	)		(2,684	)		(2,717	)
Other income		—			—			—

Loss before income taxes and equity in income of subsidiaries		(2,857	)		(2,684	)		(2,717	)
Income taxes		1,086			1,020			1,033
Equity in income of subsidiaries, net of taxes		194,381			218,533			256,775

Net income	$	192,610		$	216,869		$	255,091

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2014, 2015 and 2016

(In thousands)


	2014			2015			2016
Net income	$	192,610		$	216,869		$	255,091
Other comprehensive income (loss), net of tax
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes of $1,759, $1,562 and $138, net of settlements		2,846			2,636			234
Unrealized gain (loss) due to fair value adjustments on available-for-sale securities, net of taxes of $1,479 and $572 and $0		2,507			(957	)		—
Other comprehensive income (loss) in equity method investments		676			(3,119	)		89
Foreign currency translation adjustments		(68,982	)		(125,474	)		26,361

Total other comprehensive income (loss), net of tax		(62,953	)		(126,914	)		26,684

Comprehensive income attributable to Cinemark Holdings, Inc.	$	129,657		$	89,955		$	281,775

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2014, 2015 and 2016

(in thousands)


	2014			2015			2016
Operating Activities
Net income	$	192,610		$	216,869		$	255,091
Adjustments to reconcile net income to cash provided by operating activities:
Share based awards compensation expense		943			885			981
Equity in income of subsidiaries		(194,381	)		(218,533	)		(256,775	)
Changes in other assets and liabilities		11,196			6,194			8,188

Net cash provided by operating activities		10,368			5,415			7,485
Investing Activities
Dividends received from subsidiaries		115,000			115,225			124,900

Net cash provided by investing activities		115,000			115,225			124,900
Financing Activities
Proceeds from stock option exercises		112			—			—
Payroll taxes paid as a result of noncash stock option exercises and restricted stock withholdings		(9,861	)		(4,770	)		(6,834	)
Dividends paid to stockholders		(115,625	)		(115,863	)		(125,490	)

Net cash used for financing activities		(125,374	)		(120,633	)		(132,324	)

Increase (decrease) in cash and cash equivalents		(6	)		7			61
Cash and cash equivalents:
Beginning of period		35			29			36

End of period	$	29		$	36		$	97

The accompanying notes are an integral part of the condensed financial information of the registrant.

CINEMARK HOLDINGS, INC.

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

In thousands, except share and per share data

1. BASIS OF PRESENTATION

Cinemark Holdings, Inc. conducts substantially all of its operations through its subsidiaries. These statements should be read in conjunction with the Company’s consolidated financial statements and notes included elsewhere in this annual report on Form 10-K. There are significant restrictions over Cinemark Holdings, Inc.’s ability to obtain funds from its subsidiaries through dividends, loans or advances as contained in Cinemark USA, Inc.’s senior secured credit facility and the indentures to each of the 4.875% Senior Notes and the 5.125% Senior Notes (collectively referred to herein as the “Notes”). These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of Cinemark Holdings, Inc.’s subsidiaries under each of the debt agreements previously noted exceeds 25 percent of the consolidated net assets of Cinemark Holdings, Inc. As of December 31, 2016, the restricted net assets totaled approximately $1,106,700 and $1,119,614 under the senior secured credit facility and the Notes, respectively. See Note 10 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

2. DIVIDEND PAYMENTS

Below is a summary of dividends declared for the fiscal periods indicated.


Date Declared	Date of Record	Date Paid	Amount per Common Share ⁽¹⁾		Total Dividends ⁽²⁾
02/14/14	03/04/14	03/19/14	$	0.25	$	29,015
05/22/14	06/06/14	06/20/14	$	0.25		29,030
08/13/14	08/28/14	09/12/14	$	0.25		29,032
11/12/14	12/02/14	12/11/14	$	0.25		29,078

Total – Year ended December 31, 2014					$	116,155

02/17/15	03/04/15	03/18/15	$	0.25	$	29,025
05/18/15	06/05/15	06/19/15	$	0.25		29,075
08/20/15	08/31/15	09/11/15	$	0.25		29,080
11/13/15	12/02/15	12/16/15	$	0.25		29,276

Total – Year ended December 31, 2015					$	116,456

02/24/16	03/07/16	03/18/16	$	0.27	$	31,544
05/26/16	06/08/16	06/22/16	$	0.27		31,459
08/18/16	08/31/16	09/13/16	$	0.27		31,473
11/16/16	12/02/16	12/16/16	$	0.27		31,568

Total – Year ended December 31, 2016					$	126,044

⁽¹⁾	Beginning with the dividend declared on February 24, 2016, the Company’s board of directors raised the quarterly dividend to $0.27 per common share.

⁽²⁾	Of the dividends recorded during 2014, 2015 and 2016, $530, $593 and $554, respectively, were related to outstanding restricted stock units and will not be paid until such units vest. See Note 14.

3. DIVIDENDS RECEIVED FROM SUBSIDIARIES

During the years ended December 31, 2014, 2015 and 2016, Cinemark Holdings, Inc. received cash dividends of $115,000, $115,225 and $124,900, respectively, from its subsidiary, Cinemark USA, Inc. Cinemark USA, Inc. also declared a noncash distribution to Cinemark Holdings, Inc. during the year ended December 31, 2015 of approximately $17,935.

4. LONG-TERM DEBT

Cinemark Holdings, Inc. has no direct outstanding debt obligations, but its subsidiaries do. For a discussion of the debt obligations of Cinemark Holdings, Inc.’s subsidiaries, see Note 10 to the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

5. CAPITAL STOCK

Cinemark Holdings, Inc.’s capital stock along with its long-term incentive plan and related activity are discussed in Note 14 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.

6. COMMITMENTS AND CONTINGENCIES

Cinemark Holdings, Inc. has no direct commitments and contingencies, but its subsidiaries do. See Note 17 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K.