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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File Number

Exact Name of Registrant as Specified in its Charter,

Principal Executive Office Address and Telephone Number

State of Incorporation

I.R.S. Employer Identification No.

 

001-33401

Cinemark Holdings, Inc.

3900 Dallas Parkway

Plano, Texas 75093

       (972) 665-1000

 

Delaware

 

20-5490327

 

33-47040

Cinemark USA, Inc.

3900 Dallas Parkway

Plano, Texas 75093

       (972) 665-1000

 

Texas

 

75-2206284

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Cinemark Holdings, Inc.

("Holdings")

Common stock, par value $.001 per share

CNK

New York Stock Exchange

Cinemark USA, Inc.

("CUSA")

None

None

None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Cinemark Holdings, Inc. Yes ☒ No ☐

Cinemark USA, Inc. Yes ☐ No

(Note: As a voluntary filer, Cinemark USA, Inc. is not subject to the filing requirements of Section 13 or 15(d) of the Exchange Act. Cinemark USA, Inc. has filed all reports pursuant to Section 13 or 15(d) of the Exchange Act during the preceding 12 months as if it was subject to such filing requirements.)

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Cinemark Holdings, Inc. Yes ☒ No ☐

Cinemark USA, Inc. Yes ☒ No ☐

 

 


 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Cinemark Holdings, Inc.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

 

Cinemark USA, Inc.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Cinemark Holdings, Inc. Yes No ☒

Cinemark USA, Inc. Yes No ☒

As of April 26, 2024, 122,346,365 shares of common stock, $0.001 par value per share, of Cinemark Holdings, Inc. were issued and outstanding.

As of April 26, 2024, 1,500 shares of Class A common stock, $0.01 par value per share, and 182,648 shares of Class B common stock, no par value per share, of Cinemark USA, Inc. were outstanding and held by Cinemark Holdings, Inc.

Cinemark USA, Inc. meetS the conditions set forth in General Instructions (H)(1)(a) and (b) of Form 10-Q and IS therefore filing this form with reduced disclosure format pursuant to General Instructions (H)(2).

This combined Form 10-Q is separately filed by Holdings and CUSA. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrant. When this Form 10-Q is incorporated by reference into any filings with the SEC made by Holdings or CUSA, as a registrant, the portions of this Form 10-Q that relate to the other registrant are not incorporated by reference therein.

 


 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CINEMARK USA, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

 

 

 

 

Page

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Cinemark Holdings, Inc. and Subsidiaries Financial Statements (unaudited)

 

 

 

 

Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023

 

3

 

 

Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2024 and 2023

 

4

 

 

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023

 

5

 

 

Condensed Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023

 

6

 

 

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023

 

7

 

 

Cinemark USA, Inc. and Subsidiaries Financial Statements (unaudited)

 

 

 

 

Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023

 

8

 

 

Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023

 

9

 

 

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023

 

10

 

 

Condensed Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023

 

11

 

 

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023

 

12

 

 

Cinemark Holdings, Inc. and Cinemark USA, Inc. Notes to Condensed Consolidated Financial Statements

 

13

 

 

 

 

 

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

33

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

44

 

 

 

 

 

 

Item 4.

Controls and Procedures

 

44

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

46

 

 

 

 

 

 

Item 1A.

Risk Factors

 

46

 

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

46

 

 

 

 

 

 

Item 5.

Other Information

 

47

 

 

 

 

 

 

Item 6.

Exhibits

 

52

 

 

 

 

 

SIGNATURES

 

53

 

1


 

Cautionary Statement Regarding Forward-Looking Statements

Certain matters within this Quarterly Report on Form 10-Q include “forward–looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The “forward-looking statements” include our current expectations, assumptions, estimates and projections about the respective business and industry of Holdings and CUSA. They include statements relating to:

future revenue, expenses and profitability;
currency exchange rate and inflationary impacts;
the future development and expected growth of our business;
projected capital expenditures;
access to capital resources;
attendance at movies generally or in any of the markets in which we operate;
the number and diversity of popular movies released, the length of exclusive theatrical release windows and our ability to successfully license and exhibit popular films;
national and international growth in our industry;
competition from other exhibitors, alternative forms of entertainment and content delivery via streaming and other formats;
determinations in lawsuits in which we are a party; and
the ongoing recovery of our business and the motion picture exhibition industry from the effects of the COVID-19 pandemic and the 2023 writers’ and actors’ guilds strikes.

You can identify forward-looking statements by the use of words such as “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “anticipates,” “believes,” “plans,” “expects,” “future” and “intends” and similar expressions. These statements are neither historical facts nor guarantees of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and are, therefore, subject to risks, inherent uncertainties and other factors, some of which are beyond our control and difficult to predict. Such risks and uncertainties could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a description of our risk factors, please review the “Risk Factors” section or other sections of, or incorporated by reference to, the Company’s Annual Report on Form 10-K filed February 16, 2024. All forward-looking statements attributable to either Holdings or CUSA or persons acting on our behalf, are expressly qualified in their entirety by such risk factors. Forward-looking statements contained in this Form 10-Q reflect the views of Holdings and CUSA only as of the date of this Form 10-Q. Neither Holdings nor CUSA undertake any obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Unless the context otherwise requires, all references to “we,” “our,” “us,” “the Company” or “Cinemark” relate to Cinemark Holdings, Inc. and its consolidated subsidiaries, and all references to CUSA relate to Cinemark USA, Inc. and its consolidated subsidiaries. All references to Latin America relate to Brazil, Argentina, Chile, Colombia, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia and Paraguay.

 

2


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data, unaudited)

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

788.6

 

 

$

849.1

 

Inventories

 

 

23.7

 

 

 

23.3

 

Accounts receivable

 

 

74.4

 

 

 

80.4

 

Current income tax receivable

 

 

53.0

 

 

 

56.7

 

Prepaid expenses and other

 

 

44.7

 

 

 

50.5

 

Total current assets

 

 

984.4

 

 

 

1,060.0

 

Theatre properties and equipment, net

 

 

1,159.7

 

 

 

1,161.7

 

Operating lease right-of-use assets, net

 

 

973.8

 

 

 

986.4

 

Other long-term assets

 

 

 

 

 

 

Goodwill

 

 

1,248.8

 

 

 

1,251.0

 

Intangible assets, net

 

 

302.3

 

 

 

302.8

 

Investment in NCMI

 

 

22.5

 

 

 

18.1

 

Investments in affiliates

 

 

26.1

 

 

 

23.6

 

Long-term deferred tax asset

 

 

30.1

 

 

 

7.7

 

Deferred charges and other assets, net

 

 

32.4

 

 

 

25.5

 

Total other long-term assets

 

 

1,662.2

 

 

 

1,628.7

 

Total assets

 

$

4,780.1

 

 

$

4,836.8

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current portion of long-term debt

 

$

7.8

 

 

$

7.8

 

Current portion of operating lease obligations

 

 

207.3

 

 

 

212.5

 

Current portion of finance lease obligations

 

 

15.5

 

 

 

14.0

 

Current income tax payable

 

 

5.5

 

 

 

4.2

 

Accounts payable and accrued expenses

 

 

427.9

 

 

 

491.8

 

Total current liabilities

 

 

664.0

 

 

 

730.3

 

Long-term liabilities

 

 

 

 

 

 

Long-term debt, less current portion

 

 

2,391.6

 

 

 

2,391.3

 

Operating lease obligations, less current portion

 

 

840.9

 

 

 

853.3

 

Finance lease obligations, less current portion

 

 

95.7

 

 

 

73.8

 

Long-term deferred tax liability

 

 

36.7

 

 

 

51.7

 

Long-term liability for uncertain tax positions

 

 

48.9

 

 

 

48.0

 

NCM screen advertising advances

 

 

325.8

 

 

 

328.4

 

Other long-term liabilities

 

 

41.1

 

 

 

41.2

 

Total long-term liabilities

 

 

3,780.7

 

 

 

3,787.7

 

Equity

 

 

 

 

 

 

Cinemark Holdings, Inc.'s stockholders' equity:

 

 

 

 

 

 

Common stock, $0.001 par value: 300,000,000 shares authorized, 128,622,514 shares issued and 122,348,675 shares outstanding at March 31, 2024 and 127,598,774 shares issued and 121,596,206 shares outstanding at December 31, 2023

 

 

0.1

 

 

 

0.1

 

Additional paid-in-capital

 

 

1,250.7

 

 

 

1,244.3

 

Treasury stock, 6,273,839 and 6,002,568 shares, at cost, at March 31, 2024 and December 31, 2023, respectively

 

 

(102.5

)

 

 

(98.3

)

Accumulated deficit

 

 

(447.6

)

 

 

(472.4

)

Accumulated other comprehensive loss

 

 

(374.3

)

 

 

(363.9

)

Total Cinemark Holdings, Inc.'s stockholders' equity

 

 

326.4

 

 

 

309.8

 

Noncontrolling interests

 

 

9.0

 

 

 

9.0

 

Total equity

 

 

335.4

 

 

 

318.8

 

Total liabilities and equity

 

$

4,780.1

 

 

$

4,836.8

 

The accompanying notes, as they relate to Cinemark Holdings, Inc., are an integral part of the condensed consolidated financial statements.

3


 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in millions, except per share data, unaudited)

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

Admissions

 

$

289.8

 

 

$

311.0

 

Concession

 

 

224.2

 

 

 

235.8

 

Other

 

 

65.2

 

 

 

63.9

 

Total revenue

 

$

579.2

 

 

$

610.7

 

Cost of operations

 

 

 

 

 

 

Film rentals and advertising

 

 

154.3

 

 

 

166.7

 

Concession supplies

 

 

44.0

 

 

 

43.6

 

Salaries and wages

 

 

86.9

 

 

 

86.2

 

Facility lease expense

 

 

77.3

 

 

 

79.5

 

Utilities and other

 

 

100.4

 

 

 

103.8

 

General and administrative expenses

 

 

48.9

 

 

 

46.5

 

Depreciation and amortization

 

 

49.4

 

 

 

54.9

 

Impairment of long-lived and other assets

 

 

 

 

 

0.7

 

Loss on disposal of assets and other

 

 

0.4

 

 

 

0.3

 

Total cost of operations

 

 

561.6

 

 

 

582.2

 

Operating income

 

 

17.6

 

 

 

28.5

 

Other income (expense)

 

 

 

 

 

 

Interest expense

 

 

(37.7

)

 

 

(36.8

)

Interest income

 

 

13.6

 

 

 

11.9

 

Foreign currency exchange gain (loss)

 

 

1.4

 

 

 

(2.2

)

Interest expense - NCM

 

 

(5.5

)

 

 

(5.7

)

Equity in income (loss) of affiliates

 

 

3.8

 

 

 

(2.1

)

Unrealized gain on investment in NCMI

 

 

4.4

 

 

 

 

Total other expense

 

 

(20.0

)

 

 

(34.9

)

Loss before income taxes

 

 

(2.4

)

 

 

(6.4

)

Income tax benefit

 

 

(27.7

)

 

 

(3.9

)

Net income (loss)

 

$

25.3

 

 

$

(2.5

)

Less: Net income attributable to noncontrolling interests

 

 

0.5

 

 

 

0.6

 

Net income (loss) attributable to Cinemark Holdings, Inc.

 

$

24.8

 

 

$

(3.1

)

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

Basic

 

 

119.5

 

 

 

118.8

 

Diluted

 

 

152.4

 

 

 

118.8

 

Income (loss) per share attributable to Cinemark Holdings, Inc.'s common stockholders

 

 

 

 

 

 

Basic

 

$

0.20

 

 

$

(0.03

)

Diluted

 

$

0.19

 

 

$

(0.03

)

The accompanying notes, as they relate to Cinemark Holdings, Inc., are an integral part of the condensed consolidated financial statements.

4


 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions, unaudited)

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net income (loss)

 

$

25.3

 

 

$

(2.5

)

Other comprehensive (loss) income, net of tax

 

 

 

 

 

 

Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes and settlements

 

 

3.5

 

 

 

(3.4

)

Foreign currency translation adjustments

 

 

(10.8

)

 

 

8.1

 

Total other comprehensive (loss) income, net of tax

 

$

(7.3

)

 

$

4.7

 

Total comprehensive income, net of tax

 

 

18.0

 

 

 

2.2

 

Comprehensive income attributable to noncontrolling interests

 

 

(0.5

)

 

 

(0.6

)

Comprehensive income attributable to Cinemark Holdings, Inc.

 

$

17.5

 

 

$

1.6

 

The accompanying notes, as they relate to Cinemark Holdings, Inc., are an integral part of the condensed consolidated financial statements.

5


 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Cinemark

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

Additional

 

 

 

 

 

Other

 

 

Holdings, Inc.'s

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

 

Treasury

 

 

Paid-in-

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders’

 

 

Noncontrolling

 

 

Total

 

 

 

Issued

 

 

Amount

 

 

Stock

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at January 1, 2024

 

 

127.6

 

 

$

0.1

 

 

$

(98.3

)

 

$

1,244.3

 

 

$

(472.4

)

 

$

(363.9

)

 

$

309.8

 

 

$

9.0

 

 

$

318.8

 

Restricted stock forfeitures and stock withholdings related to share-based awards that vested during the three months ended March 31, 2024

 

 

 

 

 

 

 

 

(4.2

)

 

 

 

 

 

 

 

 

 

 

 

(4.2

)

 

 

 

 

 

(4.2

)

Issuance of stock upon vesting of performance stock units

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of share-based awards and share-based awards compensation expense

 

 

0.9

 

 

 

 

 

 

 

6.4

 

 

 

 

 

 

 

 

 

6.4

 

 

 

 

 

 

6.4

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

24.8

 

 

 

 

 

 

24.8

 

 

 

0.5

 

 

 

25.3

 

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.5

)

 

 

(0.5

)

Amortization of accumulated gains for amended swap agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3.1

)

 

 

(3.1

)

 

 

 

 

 

(3.1

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7.3

)

 

 

(7.3

)

 

 

 

 

 

(7.3

)

Balance at March 31, 2024

 

 

128.6

 

 

$

0.1

 

 

$

(102.5

)

 

$

1,250.7

 

 

$

(447.6

)

 

$

(374.3

)

 

$

326.4

 

 

$

9.0

 

 

$

335.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Cinemark

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

Additional

 

 

 

 

 

Other

 

 

Holdings, Inc's

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

 

Treasury

 

 

Paid-in-

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders’

 

 

Noncontrolling

 

 

Total

 

 

 

Issued

 

 

Amount

 

 

Stock

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at January 1, 2023

 

 

126.1

 

 

$

0.1

 

 

$

(95.4

)

 

$

1,219.3

 

 

$

(660.6

)

 

$

(353.2

)

 

$

110.2

 

 

$

9.3

 

 

$

119.5

 

Restricted stock forfeitures and stock withholdings related to share-based awards that vested during the three months ended March 31, 2023

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

(2.1

)

 

 

 

 

 

(2.1

)

Issuance of stock upon vesting of performance stock units

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of share-based awards and share-based awards compensation expense

 

 

1.3

 

 

 

 

 

 

 

 

 

5.7

 

 

 

 

 

 

 

 

 

5.7

 

 

 

 

 

 

5.7

 

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3.1

)

 

 

 

 

 

(3.1

)

 

 

0.6

 

 

 

(2.5

)

Amortization of accumulated gains for amended swap agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.5

)

 

 

(1.5

)

 

 

 

 

 

(1.5

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.7

 

 

 

4.7

 

 

 

 

 

 

4.7

 

Balance at March 31, 2023

 

 

127.5

 

 

$

0.1

 

 

$

(97.5

)

 

$

1,225.0

 

 

$

(663.7

)

 

$

(350.0

)

 

$

113.9

 

 

$

9.9

 

 

$

123.8

 

The accompanying notes, as they relate to Cinemark Holdings, Inc., are an integral part of the condensed consolidated financial statements.

6


 

CINEMARK HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions, unaudited)

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Operating activities

 

 

 

 

 

 

Net income (loss)

 

$

25.3

 

 

$

(2.5

)

Adjustments to reconcile net income (loss) to cash (used for) provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

48.9

 

 

 

54.4

 

Amortization of intangible and other assets

 

 

0.5

 

 

 

0.5

 

Amortization of original issue discount and debt issuance costs

 

 

2.4

 

 

 

2.7

 

Interest accrued on NCM screen advertising advances

 

 

5.5

 

 

 

5.7

 

Amortization of NCM screen advertising advances and other deferred revenue

 

 

(8.1

)

 

 

(8.1

)

Amortization of accumulated gains for amended swap agreements

 

 

(3.1

)

 

 

(1.5

)

Impairment of long-lived and other assets

 

 

 

 

 

0.7

 

Share-based awards compensation expense

 

 

6.4

 

 

 

5.7

 

Loss on disposal of assets and other

 

 

0.4

 

 

 

0.3

 

Unrealized gain on investment in NCMI

 

 

(4.4

)

 

 

 

Non-cash rent expense

 

 

(4.4

)

 

 

(3.9

)

Equity in (income) loss of affiliates

 

 

(3.8

)

 

 

2.1

 

Deferred income tax expense (benefit)

 

 

(37.1

)

 

 

(8.8

)

Distributions from equity investees

 

 

1.3

 

 

 

 

Changes in assets and liabilities and other

 

 

(52.5

)

 

 

(39.4

)

Net cash (used for) provided by operating activities

 

 

(22.7

)

 

 

7.9

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Additions to theatre properties and equipment

 

 

(23.5

)

 

 

(26.3

)

Proceeds from sale of theatre properties and equipment and other

 

 

0.2

 

 

 

 

Net cash used for investing activities

 

 

(23.3

)

 

 

(26.3

)

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

Repayments of long-term debt

 

 

(1.9

)

 

 

(2.6

)

Restricted stock withholdings for payroll taxes

 

 

(4.2

)

 

 

(2.0

)

Payments on finance leases

 

 

(3.7

)

 

 

(3.5

)

Other financing activities

 

 

(0.6

)

 

 

3.2

 

Net cash used for financing activities

 

 

(10.4

)

 

 

(4.9

)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(4.1

)

 

 

(1.1

)

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

 

(60.5

)

 

 

(24.4

)

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

Beginning of period

 

 

849.1

 

 

 

674.5

 

End of period

 

$

788.6

 

 

$

650.1

 

 

The accompanying notes, as they relate to Cinemark Holdings, Inc., are an integral part of the condensed consolidated financial statements.

* * * * * * * *

7


 

CINEMARK USA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data, unaudited)

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

558.2

 

 

$

612.4

 

Inventories

 

 

23.7

 

 

 

23.3

 

Accounts receivable

 

 

73.0

 

 

 

78.2

 

Current income tax receivable

 

 

52.4

 

 

 

56.1

 

Prepaid expenses and other

 

 

44.6

 

 

 

50.5

 

Accounts receivable from parent

 

 

64.8

 

 

 

58.6

 

Total current assets

 

 

816.7

 

 

 

879.1

 

Theatre properties and equipment, net

 

 

1,159.7

 

 

 

1,161.7

 

Operating lease right-of-use assets, net

 

 

973.8

 

 

 

986.4

 

Other long-term assets

 

 

 

 

 

 

Goodwill

 

 

1,248.8

 

 

 

1,251.0

 

Intangible assets, net

 

 

302.3

 

 

 

302.8

 

Investment in NCMI

 

 

22.5

 

 

 

18.1

 

Investments in affiliates

 

 

26.1

 

 

 

23.6

 

Long-term deferred tax asset

 

 

30.1

 

 

 

7.7

 

Deferred charges and other assets, net

 

 

32.4

 

 

 

25.5

 

Total other long-term assets

 

 

1,662.2

 

 

 

1,628.7

 

Total assets

 

$

4,612.4

 

 

$

4,655.9

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current portion of long-term debt

 

$

7.8

 

 

$

7.8

 

Current portion of operating lease obligations

 

 

207.3

 

 

 

212.5

 

Current portion of finance lease obligations

 

 

15.5

 

 

 

14.0

 

Current income tax payable

 

 

5.5

 

 

 

4.2

 

Accounts payable and accrued expenses

 

 

424.8

 

 

 

483.9