CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE 1 - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CINEMARK HOLDINGS, INC.

PARENT COMPANY BALANCE SHEETS

(In thousands, except share data)

	December 31,			December 31,
	2018			2019
Assets
Cash and cash equivalents	$	6		$	97
Prepaid assets and other		11			—
Investment in subsidiaries		1,417,256			1,461,701
Total assets	$	1,417,273		$	1,461,798
Liabilities and equity
Liabilities
Accrued other current liabilities, including accounts payable to subsidiaries	$	20,165		$	24,948
Other long-term liabilities		917			1,036
Total liabilities		21,082			25,984
Commitments and contingencies (see Note 6)
Equity
Common stock, $0.001 par value: 300,000,000 shares authorized, 121,456,721 shares issued and 116,830,530 shares outstanding at December 31, 2018 and 121,863,515 shares issued and 117,151,656 shares outstanding at December 31, 2019		121			122
Additional paid-in-capital		1,155,424			1,170,039
Treasury stock, 4,626,191 and 4,711,859 shares, at cost, at December 31, 2018 and December 31, 2019, respectively		(79,259	)		(81,567	)
Retained earnings		638,912			687,332
Accumulated other comprehensive loss		(319,007	)		(340,112	)
Total equity		1,396,191			1,435,814
Total liabilities and equity	$	1,417,273		$	1,461,798

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, 2017, 2018 and 2019

(in thousands)

	2017			2018			2019
Revenues	$	—		$	—		$	—
Cost of operations		2,367			2,535			2,556
Operating loss		(2,367	)		(2,535	)		(2,556	)
Other income		6			22			20
Loss before income taxes and equity in income of subsidiaries		(2,361	)		(2,513	)		(2,536	)
Income taxes		897			605			609
Equity in income of subsidiaries, net of taxes		265,644			215,735			193,313
Net income	$	264,180		$	213,827		$	191,386

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, 2017, 2018 and 2019

(In thousands)

	2017			2018			2019
Net income	$	264,180		$	213,827		$	191,386
Other comprehensive income (loss), net of tax
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $0, $1,243 and $2,692, net of settlements		-			(3,851	)		(8,210	)
Other comprehensive income (loss) in equity method investments	248				(139	)		(142	)
Foreign currency translation adjustments		(4,966	)		(62,253	)		(12,753	)
Total other comprehensive loss, net of tax		(4,718	)		(66,243	)		(21,105	)
Comprehensive income attributable to Cinemark Holdings, Inc.	$	259,462		$	147,584		$	170,281

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, 2017, 2018 and 2019

(in thousands)

	2017			2018			2019
Operating Activities
Net income	$	264,180		$	213,827		$	191,386
Adjustments to reconcile net income to cash provided by operating activities:
Share based awards compensation expense		857			920			920
Equity in income of subsidiaries		(265,644	)		(215,735	)		(193,313	)
Changes in other assets and liabilities		4,164			4,509			4,237
Net cash provided by operating activities		3,557			3,521			3,230
Investing Activities
Dividends received from subsidiaries		134,500			148,750			158,450
Net cash provided by investing activities		134,500			148,750			158,450
Financing Activities
Dividends paid to stockholders		(135,079	)		(149,492	)		(159,281	)
Payroll taxes paid as a result of noncash stock option exercises		(2,943	)		(2,905	)		(2,308	)
Net cash used for financing activities		(138,022	)		(152,397	)		(161,589	)
Increase (decrease) in cash and cash equivalents		35			(126	)		91
Cash and cash equivalents:
Beginning of period		97			132			6
End of period	$	132		$	6		$	97

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

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, 2019, the restricted net assets totaled approximately $1,128,614 and $1,114,284 under the senior secured credit facility and the Notes, respectively. See Note 12 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.

			Amount per Share of		Total
Declaration Date	Record Date	Payable Date	Common Stock		Dividends (1)
2/23/2017	3/8/2017	3/20/2017	$	0.29	$	33,912
5/25/2017	6/8/2017	6/22/2017		0.29		33,904
8/10/2017	8/31/2017	9/13/2017		0.29		33,911
11/17/2017	12/1/2017	12/15/2017		0.29		33,910
		Total	$	1.16	$	135,637
2/23/2018	3/8/2018	3/22/2018	$	0.32	$	37,471
5/25/2018	6/8/2018	6/22/2018		0.32		37,523
8/23/2018	9/4/2018	9/18/2018		0.32		37,530
11/15/2018	12/4/2018	12/18/2018		0.32		37,592
		Total	$	1.28	$	150,116
2/23/2019	3/8/2019	3/22/2019	$	0.34	$	39,905
5/24/2019	6/10/2019	6/24/2019	$	0.34		40,012
8/16/2019	9/4/2019	9/18/2019	$	0.34		40,020
11/22/2019	12/4/2019	12/18/2019	$	0.34		40,014
		Total	$	1.36	$	159,951

⁽¹⁾ Of the dividends recorded during 2017, 2018 and 2019, $558, $624 and $670, respectively, were related to outstanding restricted stock units and will not be paid until such units vest.

3. DIVIDENDS RECEIVED FROM SUBSIDIARIES

During the years December 31, 2017, 2018 and 2019, Cinemark Holdings, Inc. received cash dividends of $134,500, $148,750 and $158,450, respectively, from its subsidiary, Cinemark USA, Inc.

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 12 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 16 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 19 of the Company’s consolidated financial statements included elsewhere in this annual report on Form 10-K