Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | CINEMARK HOLDINGS, INC. | |
Entity Central Index Key | 0001385280 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 117,589,645 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-33401 | |
Entity Tax Identification Number | 20-5490327 | |
Entity Address, Address Line One | 3900 Dallas Parkway | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75093 | |
City Area Code | 972 | |
Local Phone Number | 665-1000 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of Each Class | Common stock, par value $.001 per share | |
Trading Symbol(s) | CNK | |
Name of each exchange on which registered | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 479,399 | $ 488,313 | |
Inventories | 17,972 | 21,686 | |
Accounts receivable | 51,641 | 83,722 | |
Current income tax receivable | 25,294 | 4,082 | |
Prepaid expenses and other | 13,361 | 37,187 | |
Total current assets | 587,667 | 634,990 | |
Theatre properties and equipment | 3,270,551 | 3,348,237 | |
Less: accumulated depreciation and amortization | 1,612,226 | 1,612,990 | |
Theatre properties and equipment, net | 1,658,325 | 1,735,247 | |
Operating lease right-of-use assets, net | 1,338,069 | 1,383,080 | |
Other assets | |||
Goodwill | [1] | 1,268,559 | 1,283,371 |
Intangible assets, net | 318,657 | 321,769 | |
Investments in and advances to affiliates | 151,232 | 155,285 | |
Long-term deferred tax asset | 8,851 | 9,369 | |
Deferred charges and other assets, net | 36,162 | 39,114 | |
Total other assets | 2,048,832 | 2,074,700 | |
Total assets | 5,632,893 | 5,828,017 | |
Current liabilities | |||
Current portion of long-term debt | 6,595 | 6,595 | |
Current portion of operating lease obligations | 213,941 | 217,406 | |
Current portion of finance lease obligations | 15,693 | 15,432 | |
Current income tax payable | 3,969 | 5,195 | |
Current liability for uncertain tax positions | 13,446 | 13,446 | |
Accounts payable and accrued expenses | 346,783 | 450,726 | |
Total current liabilities | 600,427 | 708,800 | |
Long-term liabilities | |||
Long-term debt, less current portion | 1,869,821 | 1,771,342 | |
Operating lease obligations, less current portion | 1,186,416 | 1,223,462 | |
Finance lease obligations, less current portion | 136,967 | 141,017 | |
Long-term deferred tax liability | 157,918 | 141,836 | |
Long-term liability for uncertain tax positions | 939 | 848 | |
Other long-term liabilities | 64,736 | 44,036 | |
Total long-term liabilities | 3,766,901 | 3,670,895 | |
Commitments and contingencies (see Note 19) | 0 | 0 | |
Cinemark Holdings, Inc.'s stockholders' equity: | |||
Common stock, $0.001 par value: 300,000,000 shares authorized, 122,328,781 shares issued and 117,518,721 shares outstanding at March 31, 2020 and 121,863,515 shares issued and 117,151,656 shares outstanding at December 31, 2019 | 122 | 122 | |
Additional paid-in-capital | 1,174,150 | 1,170,039 | |
Treasury stock, 4,810,060 and 4,711,859 shares, at cost, at March 31, 2020 and December 31, 2019, respectively | (84,258) | (81,567) | |
Retained earnings | 585,174 | 687,332 | |
Accumulated other comprehensive loss | (421,908) | (340,112) | |
Total Cinemark Holdings, Inc.'s stockholders' equity | 1,253,280 | 1,435,814 | |
Noncontrolling interests | 12,285 | 12,508 | |
Total equity | 1,265,565 | 1,448,322 | |
Total liabilities and equity | 5,632,893 | 5,828,017 | |
NCM | |||
Other assets | |||
Investment in NCM | 265,371 | 265,792 | |
Long-term liabilities | |||
NCM screen advertising advances | $ 350,104 | $ 348,354 | |
[1] | Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 122,328,781 | 121,863,515 |
Common stock, shares outstanding | 117,518,721 | 117,151,656 |
Treasury stock, shares | 4,810,060 | 4,711,859 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues | |||
Total revenues | $ 543,616 | $ 714,723 | |
Cost of operations | |||
Film rentals and advertising | 156,617 | 210,077 | |
Concession supplies | 34,812 | 43,071 | |
Salaries and wages | 87,544 | 96,136 | |
Facility lease expense | 82,241 | 85,613 | |
Utilities and other | 100,523 | 110,637 | |
General and administrative expenses | 41,018 | 37,976 | |
Depreciation and amortization | 65,256 | 64,462 | |
Impairment of long-lived assets | 16,619 | 5,584 | |
Loss on disposal of assets and other | 1,905 | 3,799 | |
Total cost of operations | 586,535 | 657,355 | |
Operating income (loss) | (42,919) | 57,368 | |
Other income (expense) | |||
Interest expense | [1] | (24,666) | (25,141) |
Interest income | 2,084 | 2,691 | |
Foreign currency exchange gain (loss) | (4,848) | 22 | |
Equity in income of affiliates | 8,486 | 10,404 | |
Total other expense | (19,611) | (12,258) | |
Income (loss) before income taxes | (62,530) | 45,110 | |
Income taxes | (3,108) | 11,917 | |
Net income (loss) | (59,422) | 33,193 | |
Less: Net income attributable to noncontrolling interests | 169 | 465 | |
Net income (loss) attributable to Cinemark Holdings, Inc. | $ (59,591) | $ 32,728 | |
Basic | 116,496 | 116,179 | |
Diluted | 116,496 | 116,418 | |
Earnings (loss) per share attributable to Cinemark Holdings, Inc.'s common stockholders | |||
Basic | $ (0.51) | $ 0.28 | |
Diluted | $ (0.51) | $ 0.28 | |
NCM | |||
Other income (expense) | |||
Distributions from NCM | $ 5,224 | $ 4,548 | |
Interest expense - NCM | (5,891) | (4,782) | |
Admissions | |||
Revenues | |||
Total revenues | 292,462 | 395,540 | |
Concession | |||
Revenues | |||
Total revenues | 190,356 | 251,324 | |
Other | |||
Revenues | |||
Total revenues | $ 60,798 | $ 67,859 | |
[1] | Includes amortization of debt issue costs. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ (59,422) | $ 33,193 |
Other comprehensive income (loss), net of tax | ||
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes of $2,230 and $1,069, net of settlements | (24,171) | (3,311) |
Other comprehensive loss in equity method investments | 0 | (71) |
Foreign currency translation adjustments | (57,625) | 755 |
Total other comprehensive loss, net of tax | (81,796) | (2,627) |
Total comprehensive income (loss), net of tax | (141,218) | 30,566 |
Comprehensive income attributable to noncontrolling interests | (169) | (465) |
Comprehensive income (loss) attributable to Cinemark Holdings, Inc. | $ (141,387) | $ 30,101 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized loss due to fair value adjustments on interest rate swap agreements, taxes | $ 2,230 | $ 1,069 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income (loss) | $ (59,422) | $ 33,193 |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||
Depreciation | 64,005 | 63,247 |
Amortization of intangible and other assets | 1,251 | 1,215 |
Amortization of debt issue costs | 1,328 | 1,328 |
Interest accrued on NCM screen advertising advances | (5,891) | |
Impairment of long-lived assets | 16,619 | 5,584 |
Share based awards compensation expense | 4,111 | 2,970 |
Loss on disposal of assets and other | 1,905 | 3,799 |
Non-cash rent expense | (591) | (819) |
Equity in income of affiliates | (8,486) | (10,404) |
Deferred income tax expenses | 15,364 | (10,964) |
Distributions from equity investees | 16,606 | 14,342 |
Changes in assets and liabilities and other | (66,290) | 4,814 |
Net cash provided by (used for) operating activities | (15,561) | 104,284 |
Investing activities | ||
Additions to theatre properties and equipment | (34,143) | (57,569) |
Proceeds from sale of theatre properties and equipment and other | 55 | 57 |
Investment in joint ventures and other, net | (50) | |
Net cash used for investing activities | (34,138) | (57,512) |
Financing activities | ||
Dividends paid to stockholders | (42,311) | (39,797) |
Payroll taxes paid as a result of stock withholdings | (2,691) | (1,947) |
Proceeds from revolving line of credit | 98,800 | |
Repayments of long-term debt | (1,649) | (1,649) |
Payments on finance leases | 3,789 | 3,517 |
Other | (392) | (1,000) |
Net cash provided by (used for) financing activities | 47,968 | (47,910) |
Effect of exchange rate changes on cash and cash equivalents | (7,183) | 110 |
Decrease in cash and cash equivalents | (8,914) | (1,028) |
Cash and cash equivalents: | ||
Beginning of period | 488,313 | 426,222 |
End of period | 479,399 | 425,194 |
NCM | ||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||
Amortization of NCM screen advertising advances and other deferred revenues | (7,852) | $ (4,021) |
Interest accrued on NCM screen advertising advances | $ 5,891 |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
The Company and Basis of Presentation | 1. The Company and Basis of Presentation The Company and its subsidiaries operate in the motion picture exhibition industry, with theatres in the United States (“U.S.”), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. The accompanying condensed consolidated balance sheet as of December 31, 2019, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. Majority-owned subsidiaries that the Company has control of are consolidated while those affiliates of which the Company owns between 20% and 50% and does not control are accounted for under the equity method. Those of which the Company owns less than 20% are generally accounted for under the cost method, unless the Company is deemed to have the ability to exercise significant influence over the affiliate, in which case the Company would account for its investment under the equity method. Th These condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and the notes thereto for the year ended December 31, 2019, included in the Annual Report on Form 10-K filed February 21, 2020 by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results to be achieved for the full year. |
Impact of COVID-19
Impact of COVID-19 | 3 Months Ended |
Mar. 31, 2020 | |
Extraordinary And Unusual Items [Abstract] | |
Impact of COVID-19 | 2. Impact of COVID-19 The recent outbreak of the COVID-19 pandemic has had an unprecedented impact on the world and the movie exhibition industry. The situation continues to be volatile and the social and economic effects are widespread. As a movie exhibitor that operates spaces where patrons gather in close proximity, the Company’s business has been significantly impacted by protective actions that federal, state and local governments have taken to control the spread of the pandemic. These actions include, among other things, encouragement of social distancing, restrictions on freedom of movement, business closures, quarantines, and shelter-in-place and stay-at-home orders. As a result of these measures, the Company temporarily closed all of its theatres in the U.S. and Latin America effective March 18, 2020. The Company believes it has sufficient cash to sustain its operations for the remainder of the year, even if its theatres remained closed for the remainder of the year. Nonetheless, the COVID-19 pandemic has had and may continue to have adverse effects on the Company’s business, results of operations, cash flows and financial condition. In light of the COVID-19 pandemic, the Company has been working to preserve cash and ensure sufficient liquidity to endure the impacts of the global crisis, even if prolonged. Some of the recent actions taken by the Company include the following: • directors of the Company and its chief executive officer have elected to take no salary, and many of its executives have voluntarily reduced their salaries by 80% while the Company’s theatres remain closed • halted all non-essential operating and capital expenditures, such as marketing promotions and initiatives, travel and entertainment, system enhancements and related consulting projects, recliner conversions, XD expansions and certain other theatre enhancements, which will significantly reduce utilities and other costs, general and administrative expenses and capital expenditures on a temporary basis; • suspended the quarterly dividend; • implemented a formal daily review and approval process by the Company’s chief financial officer for all outgoing procurement and payment requests; • laid off over 17,500 domestic hourly theatre employees, furloughed 50% of headquarter employees at 20% of salary (with full benefits) and reduced salaries of remaining employees by 50% and pursued similar actions in international markets to the extent permitted by local laws; which will significantly reduce salaries and wages expenses and general administrative expenses while theatres are closed; and • started working actively with landlords and major suppliers to modify the timing of certain contractual payments. The Company continues to evaluate the impact of certain tax-related benefits available under the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “Cares Act”) signed into U.S. federal law on March 27, 2020. The Cares Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss (“NOL”) utilization and carryback periods, modifications to the net interest deduction limitations and a technical correction to the 2017 Tax Cuts and Jobs Act, which makes certain qualified improvement property eligible for bonus depreciation. Based upon a review of the Cares Act, the Company expects to: • receive an approximately $20,000 cash tax refund in 2020 related to qualified improvement property expenditures from 2018 and 2019; • benefit from the ability to defer social security payroll tax matches that would otherwise be required in 2020; • receive a payroll tax credit in 2020 for expenses related to paying wages and health benefits to employees who are not working as a result of closures and reduced receipts associated with COVID-19; and • apply any tax loss incurred in 2020 to prior year income for a refund when our 2020 tax return is filed. The Company continues to review, and intends to seek, any other available potential benefits under the Cares Act as well as any future legislation signed into law during 2020. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. New Accounting Pronouncements ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Lease Accounting
Lease Accounting | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Accounting | 4. Lease Accounting The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented. Three Months Ended March 31, Lease Cost Classification 2020 2019 Operating lease costs Equipment (1) Utilities and other $ 1,541 $ 1,743 Real Estate (2)(3) Facility lease expense 81,658 84,785 Total operating lease costs $ 83,199 $ 86,528 Finance lease costs Amortization of leased assets Depreciation and amortization $ 3,707 $ 3,740 Interest on lease liabilities Interest expense 1,851 2,021 Total finance lease costs $ 5,558 $ 5,761 (1) Includes approximately $413 and $620 of short-term lease payments for the three months ended March 31, 2020 and 2019, respectively. (2) Includes approximately $12,247 and $15,934 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three months ended March 31, 2020 and 2019, respectively. (3) Approximately $460 and $402 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended March 31, 2020 and 2019, respectively. The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of assets for the periods indicated. Three Months Ended March 31, Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Cash outflows for operating leases $ 70,539 $ 69,974 Cash outflows for finance leases - operating activities $ 1,811 $ 1,974 Cash outflows for finance leases - financing activities $ 3,789 $ 3,517 Non-cash amount of leased assets obtained in exchange for: Operating lease liabilities - real estate $ 37,615 $ — Operating lease liabilities - equipment $ 188 $ 101 Finance lease liabilities $ — $ — As of March 31, 2020, the Company had signed lease agreements with total noncancelable lease payments of approximately $220,403 related to theatre leases that had not yet commenced. The timing of lease commencement is dependent on the completion of construction of the related theatre facility. Additionally, these amounts are based on estimated square footage and costs to construct each facility and may be subject to adjustment upon final completion of each construction project. In accordance with ASC Topic 842, fixed minimum lease payments related to these theatres are not included in the right-of-use assets and lease liabilities as of March 31, 2020. There were no noncancelable lease agreements signed, but not yet commenced, related to equipment leases as of March 31, 2020. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenues when the showtime for a purchased movie ticket has passed. Concession revenues are recognized when products are sold to the consumer. Other revenues primarily consist of screen advertising and screen rental revenues, promotional income, studio trailer placements and transactional fees. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as deferred revenues. Deferred revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for concession items or, if redeemed for movie tickets, when the showtime has passed. The Company offers a subscription program in the U.S. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase. The Company records the monthly subscription program fees as deferred revenues and records admissions revenues when the showtime for a movie ticket purchased with a credit has passed. The Company has loyalty programs in the U.S. and many of its international locations that either have a prepaid annual membership fee or award points to customers as purchases are made. For those loyalty programs that have an annual membership fee, the Company recognizes the fee collected as other revenues on a straight-line basis over the term of the membership. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as deferred revenues based on the number of reward points issued to customers and recognizes the deferred revenues when the customer redeems such points. The value of loyalty points issued is based on the estimated fair value of the rewards offered. The Company records breakage revenue on gift cards and discount ticket vouchers generally based on redemption activity and historical experience with unused balances. The Company records breakage revenue upon the expiration of loyalty points and subscription credits. Advances collected on concession and other contracts are deferred and recognized during the period in which the Company satisfies the related performance obligations, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as the Company meets its performance obligations in accordance with the terms of the contracts. Accounts receivable as of March 31, 2020 and December 31, 2019 included approximately $19,016 and $31,620 of receivables, respectively, related to contracts with customers. The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the three months ended March 31, 2020 or March 31, 2019. Disaggregation of Revenue The following table presents revenues for the three months ended March 31, 2020 and 2019, disaggregated based on major type of good or service and by reportable operating segment. Three Months Ended March 31, 2020 U.S. International Operating Operating Major Goods/Services Segment (1) Segment Consolidated Admissions revenues $ 232,326 $ 60,136 $ 292,462 Concession revenues 152,758 37,598 190,356 Screen advertising, screen rental and promotional revenues 18,209 12,446 30,655 Other revenues 24,150 5,993 30,143 Total revenues $ 427,443 $ 116,173 $ 543,616 Three Months Ended March 31, 2019 U.S. International Operating Operating Major Goods/Services Segment (1) Segment Consolidated Admissions revenues $ 308,839 $ 86,701 $ 395,540 Concession revenues 199,386 51,938 251,324 Screen advertising, screen rental and promotional revenues 20,580 14,038 34,618 Other revenues 26,011 7,230 33,241 Total revenues $ 554,816 $ 159,907 $ 714,723 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. The following table presents revenues for the three months ended March 31, 2020 and 2019, disaggregated based on timing of revenue recognition. Three Months Ended March 31, 2020 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 401,442 $ 101,252 $ 502,694 Goods and services transferred over time 26,001 14,921 40,922 Total $ 427,443 $ 116,173 $ 543,616 Three Months Ended March 31, 2019 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 532,183 $ 143,109 $ 675,292 Goods and services transferred over time 22,633 16,798 39,431 Total $ 554,816 $ 159,907 $ 714,723 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. Deferred Revenues The following table presents changes in the Company’s advances and deferred revenues for the three months ended March 31, 2020. NCM screen advertising advances (1) Other Deferred Revenues (2) Total Balance at January 1, 2020 $ 348,354 $ 138,426 $ 486,780 Amounts recognized as accounts receivable — 1,354 1,354 Cash received from customers in advance — 44,870 44,870 Common units received from NCM (see Note 9) 3,620 — 3,620 Interest accrued related to significant financing component 5,891 — 5,891 Revenue recognized during period (7,761 ) (43,943 ) (51,704 ) Foreign currency translation adjustments — (1,595 ) (1,595 ) Balance at March 31, 2020 $ 350,104 $ 139,112 $ 489,216 (1) See Note 9 for the maturity of balance as of March 31, 2020. (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of March 31, 2020 and when the Company expects to recognize this revenue. Twelve Months Ended March 31, Remaining Performance Obligations 2021 2022 2023 2024 2025 Thereafter Total Other Deferred revenue 124,099 14,868 145 — — — $ 139,112 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share The Company considers its unvested share based payment 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, 2020 2019 Numerator: Net income (loss) attributable to Cinemark Holdings, Inc. $ (59,591 ) $ 32,728 Loss (earnings) allocated to participating share-based awards (1) 350 (183 ) Net income (loss) attributable to common stockholders $ (59,241 ) $ 32,545 Denominator (shares in thousands): Basic weighted average common stock outstanding 116,496 116,179 Common equivalent shares for restricted stock units (2) $ — 239 Diluted common equivalent shares 116,496 116,418 Basic earnings (loss) per share attributable to common stockholders $ (0.51 ) $ 0.28 Diluted earnings (loss) per share attributable to common stockholders $ (0.51 ) $ 0.28 (1) For the three months ended March 31, 2020 and 2019, a weighted average of approximately 683 and 659 shares of restricted stock, respectively, were considered participating securities. (2) For the three months ended March 31, 2020, approximately 92 common equivalent shares for restricted stock units were excluded because they were anti-dilutive. |
Long Term Debt Activity
Long Term Debt Activity | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long Term Debt Activity | 7. Long Term Debt Activity Senior Secured Credit Facility Cinemark USA, Inc. has a senior secured credit facility that includes a $700,000 term loan and a $100,000 revolving credit line (the “Credit Agreement”). On March 25, 2020, the Company borrowed $98,800 under the revolving credit line of the Credit Agreement. As of March 31, 2020, there was $644,678 outstanding under the term loan and $98,800 outstanding under the revolving credit line. As of March 31, 2020, approximately $71 was available for borrowing after giving effect to a letter of credit outstanding. On April 3, 2020, the letter of credit was cancelled and was no longer outstanding. Quarterly principal payments of $1,649 are due on the term loan through December 31, 2024, with a final principal payment of $613,351 due on March 29, 2025. The revolving credit line matures November 28, 2022. The average interest rate on outstanding term loan borrowings under the Credit Agreement at March 31, 2020 was approximately 3.5% per annum, after giving effect to the interest rate swap agreements discussed below. The average interest rate on the outstanding revolver borrowings was 2.9% at March 31, 2020. Interest Rate Swap Agreements During the three months ended March 31, 2020, the Company amended and extended its three existing interest rate swap agreements and entered into a new interest rate swap agreement, all of which are used to hedge a portion of the interest rate risk associated with the variable interest rates on the Company’s term loan debt and qualify for cash flow hedge accounting. Below is a summary of the Company’s interest rate swap agreements designated as cash flow hedges as of March 31, 2020: Estimated Fair Value at Notional March 31, Amount Effective Date Pay Rate Receive Rate Expiration Date 2020 (1) $ 137,500 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 $ 11,332 $ 175,000 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 14,447 $ 137,500 December 31, 2018 2.19% 1-Month LIBOR December 31, 2024 11,800 $ 150,000 March 31, 2020 0.57% 1-Month LIBOR March 31, 2022 881 Total $ 38,460 (1) Approximately $8,949 of the total is included in accounts payable and accrued expenses and $29,511 is included in other long-term liabilities on the condensed consolidated balance sheet as of March 31, 2020. Upon amending the interest rate swap agreements, the Company determined that the interest payments hedged with the agreements are still probable to occur, therefore the loss that accumulated on the swaps prior to the amendments of $29,359 will be amortized on a straight-line basis to interest expense through December 31, 2022, the original maturity dates of the swaps. The fair values of the amended interest rate swaps and the new interest rate swap are recorded on the Company’s condensed consolidated balance sheet as an asset or liability with the related gains or losses reported as a component of accumulated other comprehensive loss. The changes in fair value are reclassified from accumulated other comprehensive loss into earnings in the same period that the hedged items affect earnings. The valuation technique used to determine fair value is the income approach. Under this approach, the Company uses projected future interest rates, which fall in Level 2 of the U.S. GAAP hierarchy as defined by FASB ASC Topic 820-10-35, as provided by counterparties to the interest rate swap agreements and the fixed rates that the Company is obligated to pay under the agreements. Fair Value of Long-Term Debt The Company estimates the fair value of its long-term debt using the market approach, which utilizes quoted market prices that fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by ASC 820, Fair Value Measurement . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | 8. Equity Below is a summary of changes in stockholders’ equity attributable to Cinemark Holdings, Inc., noncontrolling interests and total equity for the three months ended March 31, 2020 and 2019: Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark Holdings, Inc. Stockholders’ Equity Noncontrolling Interests Total Equity Balance at January 1, 2020 $ 122 $ (81,567 ) $ 1,170,039 $ 687,332 $ (340,112 ) $ 1,435,814 $ 12,508 $ 1,448,322 Issuance of share based awards and share based awards compensation expense — — 4,111 — — 4,111 — 4,111 Stock withholdings related to share based awards that vested during the three months ended March 31, 2020 — (2,691 ) — — — (2,691 ) — (2,691 ) Dividends paid to stockholders, $0.36 per common share (1) — — — (42,311 ) — (42,311 ) — (42,311 ) Dividends paid to noncontrolling interests — — — — — — (392 ) (392 ) Dividends accrued on unvested restricted stock unit awards (1) — — — (256 ) — (256 ) — (256 ) Net income (loss) — — — (59,591 ) — (59,591 ) 169 (59,422 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — (24,171 ) (24,171 ) — (24,171 ) Foreign currency translation adjustments — — — — (57,625 ) (57,625 ) — (57,625 ) Balance at March 31, 2020 $ 122 $ (84,258 ) $ 1,174,150 $ 585,174 $ (421,908 ) $ 1,253,280 $ 12,285 $ 1,265,565 Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark Holdings, Inc. Stockholders’ Equity Noncontrolling Interests Total Equity Balance at January 1, 2019 $ 121 $ (79,259 ) $ 1,155,424 $ 638,912 $ (319,007 ) $ 1,396,191 $ 12,379 $ 1,408,570 Cumulative effect of change in accounting principle, net of taxes of $6,054 — — — 16,985 — 16,985 — 16,985 Issuance of share based awards and share based awards compensation expense — — 2,970 — 2,970 — 2,970 Stock withholdings related to share based awards that vested during the three months ended March 31, 2019 — (1,947 ) — — — (1,947 ) — (1,947 ) Dividends paid to stockholders, $0.34 per common share (1) — — — (39,797 ) — (39,797 ) — (39,797 ) Dividends paid to noncontrolling interests — — — — — — (1,000 ) (1,000 ) Dividends accrued on unvested restricted stock unit awards (1) — — — (108 ) — (108 ) — (108 ) Net income — — — 32,728 — 32,728 465 33,193 Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — (3,311 ) (3,311 ) — (3,311 ) Other comprehensive loss in equity method investees — — — — (71 ) (71 ) — (71 ) Foreign currency translation adjustments — — — — 755 755 — 755 Balance at March 31, 2019 $ 121 $ (81,206 ) $ 1,158,394 $ 648,720 $ (321,634 ) $ 1,404,395 $ 11,844 $ 1,416,239 (1) Below is a summary of dividends paid to stockholders and accrued on unvested restricted stock unit awards during the three months ended March 31, 2020 and 2019: Amount per Share Declaration Date Record Date Payable Date of Common Stock Total 2/21/2020 3/6/2020 3/20/2020 $ 0.36 $ 42,567 2/22/2019 3/8/2019 3/22/2019 $ 0.34 $ 39,905 |
National CineMedia
National CineMedia | 3 Months Ended |
Mar. 31, 2020 | |
NCM | |
National CineMedia | 9. National CineMedia Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements: Investment in NCM NCM Screen Advertising Advances Distributions from NCM Equity in Earnings Other Revenue Interest Expense - NCM Cash Received Balance as of January 1, 2020 $ 265,792 $ (348,354 ) Receipt of common units due to annual common unit adjustment ("CUA") 3,620 (3,620 ) $ — $ — $ — $ — $ — Screen rental revenues earned under ESA (1) — — — — (3,461 ) — 3,461 Interest accrued related to significant financing component — (5,891 ) — — — 5,891 — Receipt of excess cash distributions (10,567 ) — (5,224 ) — — — 15,791 Equity in earnings 6,526 — — (6,526 ) — — — Amortization of screen advertising advances — 7,761 — — (7,761 ) — — Balance as of and for the three months ended March 31, 2020 $ 265,371 $ (350,104 ) $ (5,224 ) $ (6,526 ) $ (11,222 ) $ 5,891 $ 19,252 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $2,134. Investment in National CineMedia NCM operates a digital in-theatre network in the U.S. for providing cinema advertising. The Company entered into an Exhibitor Services Agreement with NCM (“ESA”), pursuant to which NCM primarily provides advertising to our theatres. recognizes cash distributions it receives from NCM on its Tranche 1 Investment as a component of earnings as Distributions from NCM. Common Unit Adjustments In addition to the consideration received upon the NCMI IPO and ESA modification in 2007, the Company also periodically receives consideration in the form of common units from NCM. Pursuant to a Common Unit Adjustment Agreement dated as of February 13, 2007 between NCMI and the Company, annual adjustments to the common membership units are made primarily based on increases or decreases in the number of theatre screens operated and theatre attendance generated. As discussed in Note 7 to the Company’s financial statements as included in its 2019 Annual Report on Form 10-K, the common units received (collectively referred to as the Company’s “Tranche 2 Investment”) are recorded at estimated fair value as an increase in the Company’s investment in NCM with an offset to NCM screen advertising advances. The Company’s Tranche 2 Investment is accounted for following the equity method, with undistributed equity earnings related to its Tranche 2 Investment included as a component of earnings in equity in income of affiliates and distributions received related to its Tranche 2 Investment are recorded as a reduction of investment basis. During March 2020, NCM performed its annual common unit adjustment calculation under the Common Unit Adjustment Agreement. As a result of the calculation, on March 31, 2020, the Company received an additional 1,112,368 common units of NCM, each of which is convertible into one share of NCMI common stock. The Company recorded the additional common units received at estimated fair value with a corresponding adjustment to NCM screen advertising advances of approximately $3,620. The fair value of the common units received was estimated based on the market price of NCMI common stock at the time the common units were determined, adjusted for volatility associated with the estimated time period it would take to convert the common units and register the respective shares. As of March 31, 2020, the Company owned a total of 40,850,068 common units of NCM, representing an ownership interest of approximately 25%. Each of the Company’s common units in NCM is convertible into one share of NCM, Inc. common stock. As of March 31, 2020, the estimated fair value of the Company’s investment in NCM was approximately $133,171 based on NCM, Inc.’s stock price as of March 31, 2020 of $3.26 per share (Level 1 input as defined in FASB ASC Topic 820), which was below the Company’s carrying value of $265,371. The market value of NCM, Inc.’s stock price may vary due to the performance of the business, industry trends, general and economic conditions and other factors, including those resulting from the impact of COVID-19 (see Note 2). The Company does not believe that the decline in NCM, Inc.’s stock price is other than temporary Exhibitor Services Agreement As discussed above, the Company’s domestic theatres are part of the in-theatre digital network operated by NCM under the ESA. NCM provides advertising to the Company’s theatres through its branded “ Noovie Revenue from Contracts with Customers. The recognition of revenue related to the NCM screen advertising advances will be recorded on a straight-line basis through February 2041. Twelve Months Ended March 31, Remaining Maturity 2021 2022 2023 2024 2025 Thereafter Total NCM screen advertising advances $ 7,865 $ 8,407 $ 8,989 $ 9,612 $ 10,279 $ 304,952 $ 350,104 Significant Financing Component Prior to the September 17, 2019 amendment of the ESA, the Company applied a significant financing component, as required by ASC Topic 606, due to the significant length of time between receiving the NCM screen advertising advances (the $174,000 received at the NCMI IPO and the periodic common unit adjustments) and completion of the performance obligation. Effective September 17, 2019, upon the Company’s evaluation and determination that ASC Topic 842 applies to the amended ESA, the Company determined it acceptable to apply the significant financing component guidance from ASC Topic 606 by analogy as the economic substance of the agreement represents a financing arrangement. As a result of the significant financing component, the Company recognized incremental screen rental revenue and an offsetting interest expense of $5,891 and $4,782 during the three months ended March 31, 2020 and 2019, respectively. The interest expense was calculated using the Company’s incremental borrowing rates at the time when the cash and each tranche of common units were received from NCM, which ranged from 4.3% to 8.3%. NCM Financial Information Below is summary financial information for NCM for the periods indicated: Three Three March 26, 2020 March 28, 2019 Gross revenues $ 64,700 $ 76,900 Operating income $ 4,900 $ 10,900 Net loss $ (8,600 ) $ (2,900 ) As of As of March 26, 2020 December 26, 2019 Current assets $ 248,900 $ 185,400 Noncurrent assets $ 710,100 $ 706,600 Current liabilities $ 68,600 $ 125,500 Noncurrent liabilities $ 1,075,600 $ 947,800 Members deficit $ (185,200 ) $ (181,300 ) |
Other Investments
Other Investments | 3 Months Ended |
Mar. 31, 2020 | |
Financial Support For Nonconsolidated Legal Entity [Abstract] | |
Other Investments | 10. Other Investments Below is a summary of activity for each of the Company’s other investments for the three months ended March 31, 2020: DCIP AC JV, LLC DCDC FE Concepts Other Total Balance at January 1, 2020 $ 124,696 $ 5,022 $ 3,169 $ 19,519 $ 2,879 $ 155,285 Cash distributions received (5,161 ) — (878 ) — — (6,039 ) Equity in income (loss) 1,249 740 194 (223 ) — 1,960 Other 50 — — — (24 ) 26 Balance at March 31, 2020 $ 120,834 $ 5,762 $ 2,485 $ 19,296 $ 2,855 $ 151,232 Digital Cinema Implementation Partners LLC (“DCIP”) On February 12, 2007, the Company, AMC and Regal (the “Exhibitors”) entered into a joint venture known as DCIP to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. On March 10, 2010, DCIP and its subsidiaries completed an initial financing transaction to enable the purchase, deployment and leasing of digital projection systems to the Exhibitors under equipment lease and installation agreements. On March 31, 2011, DCIP obtained incremental financing necessary to complete the deployment of digital projection systems. DCIP also entered into long-term Digital Cinema Deployment Agreements (“DCDAs”) with six major motion picture studios pursuant to which Kasima LLC, one of DCIP’s subsidiaries, receives a virtual print fee ("VPF") each time the studio books a film or certain other content on the leased digital projection systems. Other content distributors entered into similar DCDAs that provide for the payment of VPFs for bookings of the distributor's content on a leased digital projection system. The DCDAs end on the earlier to occur of (i) the tenth anniversary of the "mean deployment date" for all digital projection systems scheduled to be deployed over a period of up to five years, or (ii) the date DCIP achieves "cost recoupment", each as defined in the DCDAs. Cost recoupment occurs when revenues attributable to the digital projection systems exceed the financing, deployment, administration and other costs associated with the purchase of the digital projection systems. DCIP expects cost recoupment to occur during 2021. The timing of cost recoupment is dependent on VPF payments from studios. Pursuant to the operating agreement between the Exhibitors and DCIP, DCIP began to distribute excess cash to the Exhibitors upon the payoff of its outstanding debt, which occurred during the year ended December 31, 2019. As of March 31, 2020, the Company had a 33% voting interest in DCIP and a 24.3% economic interest in DCIP. The Company accounts for its investment in DCIP and its subsidiaries under the equity method of accounting. Below is summary financial information for DCIP for the periods indicated: Three Months Ended March 31, 2020 March 31, 2019 Gross revenues $ 32,510 $ 44,774 Operating income (loss) $ (5,239 ) $ 20,208 Net income (loss) $ (11,140 ) $ 18,485 As of March 31, 2020 December 31, 2019 Current assets $ 40,241 $ 51,382 Noncurrent assets $ 531,867 $ 581,547 Current liabilities $ 55,737 $ 70,515 Noncurrent liabilities $ 159 $ 190 Members' equity $ 516,212 $ 562,224 As of March 31, 2020, the Company had 3,866 digital projection systems being leased under the master equipment lease agreement with Kasima LLC, which is an indirect subsidiary of DCIP and a related party to the Company. The Company had the following transactions with DCIP, reflected in utilities and other costs on the condensed consolidated statements of income, during the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Equipment lease payments $ 1,038 $ 1,121 Warranty reimbursements from DCIP $ (3,123 ) $ (2,938 ) Management service fees $ 84 $ 158 AC JV, LLC During December 2013, the Company, Regal, AMC (the “AC Founding Members”) and NCM entered into a series of agreements that resulted in the formation of AC JV, LLC (“AC”), a joint venture that owns “Fathom Events” formerly operated by NCM. The Fathom Events business focuses on the marketing and distribution of live and pre-recorded entertainment programming to various theatre operators, including concerts, opera and symphony, DVD product releases and marketing events, theatrical premieres, Broadway plays, live sporting events and other special events. The Company paid event fees to AC of $1,673 and $5,317 for the three months ended March 31, 2020 and 2019, respectively, which are included in film rentals and advertising costs on the condensed consolidated statements of income. The Company accounts for its investment in AC under the equity method of accounting. Digital Cinema Distribution Coalition Digital Cinema Distribution Coalition (“DCDC”) is a joint venture among the Company, Universal, Warner Bros., AMC and Regal. DCDC operates a satellite distribution network that distributes all digital content to U.S. theatres via satellite. The Company has an approximate 14.6% ownership in DCDC. The Company paid approximately $105 and $263 to DCDC during the three months ended March 31, 2020 and 2019, respectively, related to content delivery services provided by DCDC. These fees are included in film rentals and advertising costs on the condensed consolidated statements of income. The Company accounts for its investment in DCDC under the equity method of accounting. FE Concepts, LLC During April 2018, the Company, through its wholly-owned indirect subsidiary CNMK Texas Properties, LLC (“CNMK”), formed a joint venture, FE Concepts, LLC (“FE Concepts”) with AWSR Investments, LLC (“AWSR”), an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts operates a family entertainment center that offers bowling, gaming, movies and other amenities that opened during December 2019. The Company and AWSR each invested approximately $20,000 and each have a 50% voting interest in FE Concepts. The Company accounts for its investment in FE Concepts under the equity method of accounting. The Company has a theatre services agreement with FE Concepts under which it provides film booking and equipment monitoring services. The Company recorded $10 of theatre services revenue under the agreement during the three months ended March 31, 2020. Additional Considerations Each of the investments above have been temporarily impacted by the COVID-19 pandemic (see Note 2) due to the temporary closure of theatres across the U.S. The Company does not believe that any resulting decline in value of the underlying investments is other than temporary as the Company and other industry participants, who also have equity ownership interests in certain of the above investments, are planning to reopen theatres during the next few months, and the Company expects industry attendance to recover gradually over time. |
Treasury Stock and Share Based
Treasury Stock and Share Based Awards | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Treasury Stock and Share Based Awards | 11. Treasury Stock and Share Based Awards Treasury Stock — Treasury stock represents shares of common stock repurchased or withheld by the Company and not yet retired. The Company has applied the cost method in recording its treasury shares. Below is a summary of the Company’s treasury stock activity for the three months ended March 31, 2020: Number of Treasury Shares Cost Balance at January 1, 2020 4,711,859 $ 81,567 Restricted stock withholdings (1) 86,957 2,691 Restricted stock forfeitures 11,244 — Balance at March 31, 2020 4,810,060 $ 84,258 (1) The Company withheld restricted shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock and restricted stock units. The Company determined the number of shares to be withheld based upon market values ranging from $12.30 to $32.12 per share. As of March 31, 2020, the Company had no plans to retire any shares of treasury stock. Restricted Stock – During the three months ended March 31, 2020, the Company granted 353,196 shares of restricted stock to employees. The fair value of the restricted stock granted was determined based on the market value of the Company’s common stock on the date of grant, which was $32.12 per share. The Company assumed forfeiture rates for the restricted stock awards that ranged from 0% to 10%. The restricted stock awards vest over periods ranging from one to four years. The recipients of restricted stock are entitled to receive non-forfeitable dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period. Below is a summary of restricted stock activity for the three months ended March 31, 2020: Shares of Weighted Average Restricted Grant Date Stock Fair Value Outstanding at January 1, 2020 783,823 $ 37.53 Granted 353,196 $ 32.12 Vested (260,278 ) $ 35.05 Forfeited (11,244 ) $ 37.52 Outstanding at March 31, 2020 865,497 $ 36.07 Unvested restricted stock at March 31, 2020 865,497 $ 36.07 March 31, 2020 2019 Compensation expense recognized during the period $ 2,691 $ 2,433 Fair value of restricted shares that vested during the period $ 8,029 $ 5,745 Income tax benefit recognized upon vesting of restricted stock awards $ 2,418 $ 1,002 As of March 31, 2020, the estimated remaining unrecognized compensation expense related to unvested restricted stock awards was $22,864 and the weighted average period over which this remaining compensation expense will be recognized is approximately three years. Restricted Stock Units – During the three months ended March 31, 2020, the Company granted restricted stock units representing 436,681 hypothetical shares of common stock to employees. The restricted stock units vest based on a combination of financial performance factors and continued service. The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) during the two fiscal year periods ending December 31, 2021 based on a formula utilizing a multiple of Adjusted EBITDA subject to certain adjustments as specified by the Compensation Committee prior to the grant date. The financial performance factors for the restricted stock units have a threshold, target and maximum level of payment opportunity and vest on a prorata basis according to the IRR achieved by the Company during the performance period. If the IRR for the two-year one-third two-thirds Below is a table summarizing the potential number of shares that could vest under restricted stock unit awards granted during the three months ended March 31, 2020 Number of Shares Value at Vesting Grant at IRR of at least 6% 190,707 $ 6,125 at IRR of at least 8% 286,060 $ 9,188 at IRR of at least 14% 436,681 $ 14,026 Due to the fact that the IRR for the two-year performance period could not be determined at the time of the 2020 grant, the Company estimated that the most likely outcome is the achievement of the target IRR level. The fair value of the restricted stock unit awards was determined based on the closing price of the Company’s common stock on the date of grant, which was $32.12 per share. The Company assumed a forfeiture rate of 5% for the restricted stock unit awards. If during the service period, additional information becomes available to lead the Company to believe a different IRR level will be achieved for the two-year performance period, the Company will reassess the number of units that are expected to vest for the grant and adjust its compensation expense accordingly on a prospective basis over the remaining service period. March 31, 2020 2019 Number of restricted stock unit awards that vested during the period 112,070 88,074 Fair value of restricted stock unit awards that vested during the period $ 3,554 $ 3,550 Accumulated dividends paid upon vesting of restricted stock unit awards $ 544 $ 375 Compensation expense recognized during the period $ 1,420 $ 537 Income tax benefit recognized upon vesting of restricted stock unit awards $ 821 $ 170 As of March 31, 2020 , the estimated remaining unrecognized compensation expense related to the outstanding restricted stock unit awards was $ 17,185 . The weighted average period over which this remaining compensation expense will be recognized is approximately three years . As of March 31, 2020 , the Company had restricted stock units outstanding that represented a total of 1,008,288 hypot hetical shares of common stock, net of forfeitures, assuming an IRR of 9.3 % was achieved for the 2017 grants, an IRR of 8.6 % was achieved for the 2018 grants and the maximum IRR level is achieved for all other grants outstanding. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 12. Goodwill and Other Intangible Assets The Company’s goodwill was as follows: U.S. Operating Segment International Operating Segment Total Balance at January 1, 2020 (1) $ 1,182,853 $ 100,518 $ 1,283,371 Foreign currency translation adjustments — (14,812 ) (14,812 ) Balance at March 31, 2020 (1) $ 1,182,853 $ 85,706 $ 1,268,559 (1) Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. The Company evaluates goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the goodwill may not be fully recoverable. Due to the temporary closure of the Company’s domestic theatres effective March 17, 2020 and international theatres effective March 18, 2020 as a result of the COVID-19 pandemic (see Note 2), the Company performed a quantitative goodwill impairment evaluation for all reporting units during the three months ended March 31, 2020. The Company evaluates goodwill for impairment at the reporting unit level and has allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its twenty regions in the U.S. and seven countries internationally with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations). Under the quantitative analysis, the Company estimated the fair value of each reporting unit and compared it with its carrying value. Fair value was determined using the market approach and based on a multiple of cash flows for each reporting unit, which was eight times for the evaluations performed during the three months ended March 31, 2020. The market approach is the most common valuation approach for the Company’s industry. The Company also performed its goodwill impairment analysis using the income approach to further validate the results of the assessment results under the market approach. Significant judgment, including management’s estimate of the impact of temporary theatre closures and other considerations as a result of COVID-19, was involved in estimating cash flows and fair value. The Company’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, are based on projected operating performance of each reporting unit, market transactions and industry trading multiples. The carrying value of the Company’s reporting units did not exceed estimated fair values at March 31, 2020. The estimated fair value of one of the Company’s reporting units exceeded its carrying value by less than 10%. Intangible assets consisted of the following: Balance at January 1, 2020 Amortization Other (1) Balance at March 31, 2020 Intangible assets with finite lives: Gross carrying amount $ 85,007 $ — $ (1,798 ) $ 83,209 Accumulated amortization (63,924 ) (1,241 ) — (65,165 ) Total net intangible assets with finite lives $ 21,083 $ (1,241 ) $ (1,798 ) $ 18,044 Intangible assets with indefinite lives: Tradename and other 300,686 — (73 ) 300,613 Total intangible assets — net $ 321,769 $ (1,241 ) $ (1,871 ) $ 318,657 (1) Amount primarily represents foreign currency translation adjustments. Due to the temporary closure of the Company’s theatres effective March 18, 2020 as a result of the COVID-19 pandemic (see Note 2), the Company performed a quantitative impairment evaluation for all definite and indefinite-lived tradename assets during the three months ended March 31, 2020. Under the quantitative analysis, the Company compared the carrying values of tradename assets to th eir estimated fair values. Fair values were estimated by applying an estimated market royalty rate that could be charged for the use of the tradenames to forecasted future revenues, with an adjustment for the present value of such royalties. Significant judgment, including management’s estimate of the impact of temporary theatre closures and other considerations as a result of COVID-19, was involved in estimating market royalty rates and long-term revenue forecasts. Management’s estimates, which fall und er Level 3 of the U.S. GAAP fair value hierarchy as defined by FASB ASC Topic 820-10-35, were based on projected revenue performance and expected industry trends. The carrying values of the Company’s tradename assets did not exceed estimated fair values at March 31, 2020. Estimated aggregate future amortization expense for intangible assets is as follows: For the nine months ended December 31, 2020 $ 3,655 For the twelve months ended December 31, 2021 2,801 For the twelve months ended December 31, 2022 2,648 For the twelve months ended December 31, 2023 2,550 For the twelve months ended December 31, 2024 2,550 Thereafter 3,840 Total $ 18,044 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 3 Months Ended |
Mar. 31, 2020 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets | 13. Impairment of Long-Lived Assets Due to the temporary closure of the Company’s theatres effective March 18, 2020 as a result of the COVID-19 pandemic (see Note 2), the Company performed a long-lived asset impairment evaluation for all theatres during the three months ended March 31, 2020. The impairment evaluation was based on the estimated undiscounted cash flows from continuing use through the remainder of the theatre’s useful life. Significant judgment, including management’s estimate of the impact of temporary theatre closures and other considerations as a result of COVID-19, was involved in estimating cash flows and fair value. Fair value is determined based on a multiple of cash flows, which was six times for the evaluations performed during the three months ended March 31, 2020. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy, as defined by FASB ASC Topic 820-10-35, are based on projected operating performance, market transactions and industry trading multiples. Below is a summary of impairment charges for the periods presented: Three Months Ended March 31, 2020 2019 U.S. Segment Theatre properties $ 3,643 $ 1,208 Theatre operating lease right-of-use assets 5,952 — U.S. total 9,595 1,208 International segment Theatre properties 4,484 4,376 Theatre operating lease right-of-use assets 2,540 — International total 7,024 4,376 Total Impairment $ 16,619 $ 5,584 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements The Company determines fair value measurements in accordance with ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by ASC Topic 820 are as follows: Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date; Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available. Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of March 31, 2020: Carrying Fair Value Description Value Level 1 Level 2 Level 3 Interest rate swap liabilities (1) $ 38,460 $ — $ 38,460 $ — (1) See further discussion of interest rate swaps at Note 7. Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2019: Carrying Fair Value Description Value Level 1 Level 2 Level 3 Interest rate swap liabilities (1) $ 15,995 $ — $ 15,995 $ — (1) See further discussion of interest rate swaps at Note 7. The Company uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its goodwill, intangible assets and long-lived assets (see Note 12 and Note 13). See additional explanation of fair value measurement techniques used for long-lived assets, goodwill and intangible assets in “Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed February 21, 2020. There were no changes in valuation techniques. The Company elected to perform its goodwill impairment evaluation using both the market approach and the income approach for the three months ended March 31, 2020. There were no transfers in to or out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2020. |
Foreign Currency Translation
Foreign Currency Translation | 3 Months Ended |
Mar. 31, 2020 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | 15. Foreign Currency Translation The accumulated other comprehensive loss account in stockholders’ equity of $421,908 and $340,112 as of March 31, 2020 and December 31, 2019, respectively, primarily includes cumulative foreign currency net losses of $385,678 and $328,053, respectively, from translating the financial statements of the Company’s international subsidiaries and the cumulative changes in fair value of the Company’s interest rate swap agreements that are designated as hedges. As of March 31, 2020, all foreign countries where the Company has operations, other than Argentina, are non-highly inflationary, and the local currency is the same as the functional currency in all of the locations. Thus, any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss. The Company deemed Argentina to be highly inflationary beginning July 1, 2018. A highly inflationary economy is defined as an economy with a cumulative inflation rate of approximately 100 percent or more over a three-year Foreign Currency Matters Below is a summary of the impact of translating the March 31, 2020 and 2019 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Three Months Ended Country March 31, 2020 December 31, 2019 March 31, 2020 March 31, 2019 Brazil 5.20 4.02 $ (42,873 ) $ (2,334 ) Chile 857.94 736.86 (11,126 ) 1,473 Colombia 4,064.81 3,277.14 (3,274 ) 982 Peru 3.47 3.37 (1,450 ) 431 All other 1,098 203 $ (57,625 ) $ 755 (1) Beginning July 1, 2018, Argentina was deemed highly inflationary. A loss of $294 and $394 for the three months ended March 31, 2020 and 2019, respectively, is reflected as foreign currency exchange gain (loss) on the Company’s condensed consolidated statement of income as a result of translating Argentina financial results to U.S. dollars. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Cash Flow Information The following is provided as supplemental information to the condensed consolidated statements of cash flows: Three Months Ended March 31, 2020 2019 Cash paid for interest $ 8,774 $ 9,104 Cash paid for income taxes, net of refunds received $ 2,110 $ 3,414 Noncash investing and financing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (1) $ 2,269 $ (14,660 ) Interest expense - NCM (see Note 9) $ (5,891 ) $ (4,782 ) Investment in NCM – receipt of common units (see Note 9) $ 3,620 $ 1,552 Dividends accrued on unvested restricted stock unit awards $ (256 ) $ (108 ) (1) Additions to theatre properties and equipment included in accounts payable as of March 31, 2020 and December 31, 2019 were $17,260 and $14,991, respectively. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | 17. Segments The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments. Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended March 31, 2020 2019 Revenues U.S. $ 429,302 $ 557,798 International 116,173 159,907 Eliminations (1,859 ) (2,982 ) Total revenues $ 543,616 $ 714,723 Adjusted EBITDA U.S. $ 56,072 $ 125,759 International 10,139 26,495 Total Adjusted EBITDA $ 66,211 $ 152,254 Capital expenditures U.S. $ 25,673 $ 52,339 International 8,470 5,230 Total capital expenditures $ 34,143 $ 57,569 The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA: Three Months Ended March 31, 2020 2019 Net income (loss) $ (59,422 ) $ 33,193 Add (deduct): Income taxes (3,108 ) 11,917 Interest expense (1) 24,666 25,141 Other (income) expense, net (2) 169 (8,335 ) Cash distributions from DCIP (3) 5,161 5,218 Cash distributions from other equity investees (4) 11,445 9,124 Depreciation and amortization 65,256 64,462 Impairment of long-lived assets 16,619 5,584 Loss on disposal of assets and other 1,905 3,799 Non-cash rent expense (591 ) (819 ) Share based awards compensation expense 4,111 2,970 Adjusted EBITDA $ 66,211 $ 152,254 (1) Includes amortization of debt issue costs. (2) Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM. (3) See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 10. These distributions are reported entirely within the U.S. operating segment. (4) Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 9 and 10). These distributions are reported entirely within the U.S. operating segment. Financial Information A bout Geographic Areas Below is a breakdown of selected financial information by geographic area: Three Months Ended March 31, Revenues 2020 2019 U.S. $ 429,302 $ 557,798 Brazil 52,968 70,861 Other international countries 63,205 89,046 Eliminations (1,859 ) (2,982 ) Total $ 543,616 $ 714,723 As of As of Theatre Properties and Equipment-net March 31, 2020 December 31, 2019 U.S. $ 1,408,772 $ 1,436,275 Brazil 86,474 118,367 Other international countries 163,079 180,605 Total $ 1,658,325 $ 1,735,247 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions The Company manages theatres for Laredo Theatre, Ltd. (“Laredo”). The Company is the sole general partner and owns 75% of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25% of the limited partnership interests in Laredo and is 100% owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is the Company’s Chairman of the Board of Directors and directly and indirectly owns approximately 8% of the Company’s common stock. Under the agreement, management fees are paid by Laredo to the Company at a rate of 5% of annual theatre revenues up to $50,000 and 3% of annual theatre revenues in excess of $50,000. The Company recorded $62 and $146 of management fee revenues during the three months ended March 31, 2020 and 2019, respectively. All such amounts are included in the Company’s condensed consolidated financial statements with the intercompany amounts eliminated in consolidation. The Company has an Aircraft Time Sharing Agreement with Copper Beech Capital, LLC (“Copper Beech”) to use, on occasion, a private aircraft owned by Copper Beech. Copper Beech is owned by Mr. Mitchell and his wife, Tandy Mitchell. The private aircraft is used by Mr. Mitchell and other executives who accompany Mr. Mitchell to business meetings for the Company. The Company reimburses Copper Beech for the actual costs of fuel usage and the expenses of the pilots, landing fees, storage fees and similar expenses incurred during the trip. For the three months ended March 31, 2020 and 2019, the aggregate amounts paid to Copper Beech for the use of the aircraft was $12 and $7, respectively. The Company leases 14 theatres and one parking facility from Syufy Enterprises, LP (“Syufy”) or affiliates of Syufy. Raymond Syufy is one of the Company’s directors and is an officer of the general partner of Syufy. Of these 15 leases, 14 have fixed minimum annual rent. The one lease without minimum annual rent has rent based upon a specified percentage of gross sales as defined in the lease. For the three months ended March 31, 2020 and 2019, the Company paid total rent of approximately $4,065 and $6,590, respectively, to Syufy. The Company has a 50% voting interest in FE Concepts, a joint venture with AWSR, an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts operates a family entertainment center that offers bowling, gaming, movies and other amenities that opened during December 2019. See Note 10 for further discussion. The Company has a theatre services agreement with FE Concepts under which the Company receives management fees for providing film booking and equipment monitoring services for the facility. The Company recorded $10 of management fees during the three months ended March 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies From time to time, the Company is involved in various legal proceedings arising from the ordinary course of its business operations, such as personal injury claims, employment matters, landlord-tenant disputes, patent claims and contractual disputes, some of which are covered by insurance. The Company believes its potential liability with respect to proceedings currently pending is not material, individually or in the aggregate, to the Company’s financial position, results of operations and cash flows. Intertrust Technologies Corporation (“Intertrust”) v. Cinemark Holdings, Inc., Regal, AMC, et al. This case was filed against the Company on August 7, 2019 in the Eastern District of Texas – Marshall Division alleging patent infringement. The Company firmly maintains that the contentions of the Plaintiff are without merit and will vigorously defend itself against the lawsuit. Although the Company does not believe that it has infringed on any of Intertrust’s patents, it cannot predict the outcome of this litigation. Flagship Theatres of Palm Desert, LLC d/b/a Cinemas Palme D’Or v. Century Theatres, Inc., and Cinemark USA, Inc.; Superior Court of the State of California, County of Los Angeles . Plaintiff in this case alleges that the Company violated California antitrust and unfair competition laws by engaging in “circuit dealing” with various motion picture distributors and tortiously interfered with Plaintiff’s business relationships. Plaintiff seeks compensatory damages, trebling of those damages under California law, punitive damages, injunctive relief, attorneys’ fees, costs and interest. Plaintiff also alleges that the Company’s conduct ultimately resulted in closure of its theatre in June 2016. The Company denied the allegations. In 2008, the Company moved for summary judgment on Plaintiff’s claims, arguing primarily that clearances between the theatres at issue were lawful and that Plaintiff lacked proof sufficient to support certain technical elements of its antitrust claims. The trial court granted that motion and dismissed Plaintiff’s claims. Plaintiff appealed and, in 2011, the Court of Appeal reversed, holding, among other things, that Plaintiff’s claims were not about the illegality of clearances but were focused, instead, on “circuit dealing.” Having re-framed the claims in that manner, the Court of Appeal held that the trial court’s decision to limit discovery to the market where the theatres at issue operated was an error, as “circuit dealing” necessarily involves activities in different markets. Upon return to the trial court, the parties engaged in additional, broadened discovery related to Plaintiff’s “circuit dealing” claim. Thereafter, the Company moved again for summary judgment on all of Plaintiff’s claims. That new motion for summary judgment was pending when, on or about April 11, 2014, the trial court granted the Company’s motion for terminating sanctions and entered a judgment dismissing the case with prejudice. Plaintiff then appealed that second dismissal, seeking to have the judgment reversed and the case remanded to the trial court. The Court of Appeal issued a ruling on May 24, 2016, reversing the granting of terminating sanctions and instead imposed a lesser evidentiary and damages preclusion sanction. The case returned to the trial court on October 6, 2016. On May 10, 2018, after a five-week jury trial, the jury found no liability on one circuit dealing claim and awarded Plaintiff damages on the other claim, which are tripled for antitrust damage awards. Plaintiff would also be entitled to certain court costs and to seek at least some portion of its attorney’s fees. During 2018, the Company recorded a litigation reserve based on the jury award, court costs and attorney’s fees. The trial court denied a motion for a judgment notwithstanding the verdict and a motion for a new trial. The Company has appealed the judgment. Although the Company denies that it engaged in any form of circuit dealing, it cannot predict the outcome of its pending motions or future appeals. Civil Investigative Demand. The Company received a Civil Investigative Demand (“CID”) from the Antitrust Division of the United States Department of Justice. The CID relates to an investigation under Sections 1 and 2 of the Sherman Act. The Company also received CIDs from the Antitrust Section of the Office of the Attorney General of the State of Ohio and later from other states regarding similar inquiries under state antitrust laws. The CIDs request the Company to answer interrogatories, and produce documents, or both, related to the investigation of matters including film clearances, potential coordination and/or communication with other major theatre circuits and related joint ventures. The Company intends to fully cooperate with all federal and state government agencies. Although the Company does not believe that it has violated any federal or state antitrust or competition laws, it cannot predict the ultimate scope, duration or outcome of these investigations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On April 20, 2020, the Company issued $250,000 8.750% senior secured notes (the “8.750% Secured Notes”). The notes will mature on May 1, 2025; provided, however, that if (i) on September 13, 2022, the aggregate outstanding principal amount of the 5.125% Senior Notes that shall not have been purchased, repurchased, redeemed, defeased or otherwise acquired, retired, cancelled or discharged exceeds $50,000, the notes will mature on September 14, 2022 and (ii) on February 27, 2023, the aggregate outstanding principal amount of the 4.875% Senior Notes that shall not have been purchased, repurchased, redeemed, defeased or otherwise acquired, retired, cancelled or discharged exceeds $50,000, the notes will mature on February 28, 2023. Interest on the notes will be payable on May 1 and November 1 of each year, beginning on November 1, 2020. The 8.750% Secured Notes will be fully and unconditionally guaranteed on a joint and several senior basis by certain of the Company’s subsidiaries that guarantee, assume or in any other manner become liable with respect to any of the Company’s or its guarantors’ other debt. If the Company cannot make payments on the 8.750% Secured Notes when they are due, the Company’s guarantors must make them instead. Under certain circumstances , the guarantees may be released without action by, or the consent of, the holders of the 8.750% Secured Notes. The 8.750% Secured Notes and the guarantees will be the Company’s and its guarantors’ senior obligations and they will: • rank effectively senior in right of payment to the Company’s and its guarantors’ existing and future debt that is not secured by the collateral as described within the indentures to the 8.750% Secured Notes (“Collateral”), including all obligations under the Credit Agreement, and unsecured obligations, including the existing senior notes, in each case to the extent of the value of the collateral; • rank effectively junior to the Company’s and its guarantors’ existing and future debt secured by assets that are not part of the Collateral to the extent of the value of the collateral securing such debt, including all obligations under the Credit Agreement; • otherwise rank equally in right of payment to the Company’s and its guarantors’ existing and future senior debt, including debt under the Credit Agreement and the existing senior notes; • rank senior in right of payment to the Company’s and its guarantors’ future subordinated debt; and • be structurally subordinated to all existing and future debt and other liabilities of the Company’s non-guarantor subsidiaries. The indenture to the 8.750% Secured Notes contains covenants that limit, among other things, the ability of Cinemark USA, Inc. and certain of its subsidiaries to (1) make investments or other restricted payments, including paying dividends, making other distributions or repurchasing subordinated debt or equity, (2) incur additional indebtedness and issue preferred stock, (3) enter into transactions with affiliates, (4) enter new lines of business, (5) merge or consolidate with, or sell all or substantially all of its assets to, another person and (6) create liens. Upon a change of control, as defined in the indenture governing the 8.750% Secured Notes, Cinemark USA, Inc. would be required to make an offer to repurchase the 8.750% Secured Notes at a price equal to 101% of the aggregate principal amount outstanding plus accrued and unpaid interest, if any, through the date of repurchase. The indenture governing the 8.750% Secured Notes allows Cinemark USA, Inc. to incur additional indebtedness if it satisfies a coverage ratio specified in the indenture, after giving effect to the incurrence of the additional indebtedness, and in certain other circumstances. On April 20, 2020, in conjunction with the issuance of the 8.750% Secured Notes, the Company obtained a waiver of the maintenance covenant from the majority of revolving lenders under the Credit Agreement for the fiscal quarters ending September 30, 2020 and December 31, 2020. |
Lease Accounting (Tables)
Lease Accounting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Aggregate Lease Costs by Lease Classification | The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented. Three Months Ended March 31, Lease Cost Classification 2020 2019 Operating lease costs Equipment (1) Utilities and other $ 1,541 $ 1,743 Real Estate (2)(3) Facility lease expense 81,658 84,785 Total operating lease costs $ 83,199 $ 86,528 Finance lease costs Amortization of leased assets Depreciation and amortization $ 3,707 $ 3,740 Interest on lease liabilities Interest expense 1,851 2,021 Total finance lease costs $ 5,558 $ 5,761 (1) Includes approximately $413 and $620 of short-term lease payments for the three months ended March 31, 2020 and 2019, respectively. (2) Includes approximately $12,247 and $15,934 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three months ended March 31, 2020 and 2019, respectively. (3) Approximately $460 and $402 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended March 31, 2020 and 2019, respectively. |
Schedule of Minimum Cash Lease Payments | The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of assets for the periods indicated. Three Months Ended March 31, Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Cash outflows for operating leases $ 70,539 $ 69,974 Cash outflows for finance leases - operating activities $ 1,811 $ 1,974 Cash outflows for finance leases - financing activities $ 3,789 $ 3,517 Non-cash amount of leased assets obtained in exchange for: Operating lease liabilities - real estate $ 37,615 $ — Operating lease liabilities - equipment $ 188 $ 101 Finance lease liabilities $ — $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated Based on Type of Good Or Service By Reportable Operating Segment and On Timing of Revenue Recognition | The following table presents revenues for the three months ended March 31, 2020 and 2019, disaggregated based on major type of good or service and by reportable operating segment. Three Months Ended March 31, 2020 U.S. International Operating Operating Major Goods/Services Segment (1) Segment Consolidated Admissions revenues $ 232,326 $ 60,136 $ 292,462 Concession revenues 152,758 37,598 190,356 Screen advertising, screen rental and promotional revenues 18,209 12,446 30,655 Other revenues 24,150 5,993 30,143 Total revenues $ 427,443 $ 116,173 $ 543,616 Three Months Ended March 31, 2019 U.S. International Operating Operating Major Goods/Services Segment (1) Segment Consolidated Admissions revenues $ 308,839 $ 86,701 $ 395,540 Concession revenues 199,386 51,938 251,324 Screen advertising, screen rental and promotional revenues 20,580 14,038 34,618 Other revenues 26,011 7,230 33,241 Total revenues $ 554,816 $ 159,907 $ 714,723 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. The following table presents revenues for the three months ended March 31, 2020 and 2019, disaggregated based on timing of revenue recognition. Three Months Ended March 31, 2020 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 401,442 $ 101,252 $ 502,694 Goods and services transferred over time 26,001 14,921 40,922 Total $ 427,443 $ 116,173 $ 543,616 Three Months Ended March 31, 2019 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 532,183 $ 143,109 $ 675,292 Goods and services transferred over time 22,633 16,798 39,431 Total $ 554,816 $ 159,907 $ 714,723 (1) U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Changes in Advances and Deferred Revenues | The following table presents changes in the Company’s advances and deferred revenues for the three months ended March 31, 2020. NCM screen advertising advances (1) Other Deferred Revenues (2) Total Balance at January 1, 2020 $ 348,354 $ 138,426 $ 486,780 Amounts recognized as accounts receivable — 1,354 1,354 Cash received from customers in advance — 44,870 44,870 Common units received from NCM (see Note 9) 3,620 — 3,620 Interest accrued related to significant financing component 5,891 — 5,891 Revenue recognized during period (7,761 ) (43,943 ) (51,704 ) Foreign currency translation adjustments — (1,595 ) (1,595 ) Balance at March 31, 2020 $ 350,104 $ 139,112 $ 489,216 (1) See Note 9 for the maturity of balance as of March 31, 2020. (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of March 31, 2020 and when the Company expects to recognize this revenue. Twelve Months Ended March 31, Remaining Performance Obligations 2021 2022 2023 2024 2025 Thereafter Total Other Deferred revenue 124,099 14,868 145 — — — $ 139,112 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table presents computations of basic and diluted earnings per share under the two-class method: Three Months Ended March 31, 2020 2019 Numerator: Net income (loss) attributable to Cinemark Holdings, Inc. $ (59,591 ) $ 32,728 Loss (earnings) allocated to participating share-based awards (1) 350 (183 ) Net income (loss) attributable to common stockholders $ (59,241 ) $ 32,545 Denominator (shares in thousands): Basic weighted average common stock outstanding 116,496 116,179 Common equivalent shares for restricted stock units (2) $ — 239 Diluted common equivalent shares 116,496 116,418 Basic earnings (loss) per share attributable to common stockholders $ (0.51 ) $ 0.28 Diluted earnings (loss) per share attributable to common stockholders $ (0.51 ) $ 0.28 (1) For the three months ended March 31, 2020 and 2019, a weighted average of approximately 683 and 659 shares of restricted stock, respectively, were considered participating securities. (2) For the three months ended March 31, 2020, approximately 92 common equivalent shares for restricted stock units were excluded because they were anti-dilutive. |
Long Term Debt Activity (Tables
Long Term Debt Activity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges | Below is a summary of the Company’s interest rate swap agreements designated as cash flow hedges as of March 31, 2020: Estimated Fair Value at Notional March 31, Amount Effective Date Pay Rate Receive Rate Expiration Date 2020 (1) $ 137,500 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 $ 11,332 $ 175,000 December 31, 2018 2.12% 1-Month LIBOR December 31, 2024 14,447 $ 137,500 December 31, 2018 2.19% 1-Month LIBOR December 31, 2024 11,800 $ 150,000 March 31, 2020 0.57% 1-Month LIBOR March 31, 2022 881 Total $ 38,460 (1) Approximately $8,949 of the total is included in accounts payable and accrued expenses and $29,511 is included in other long-term liabilities on the condensed consolidated balance sheet as of March 31, 2020. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Changes in Stockholders' Equity | Below is a summary of changes in stockholders’ equity attributable to Cinemark Holdings, Inc., noncontrolling interests and total equity for the three months ended March 31, 2020 and 2019: Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark Holdings, Inc. Stockholders’ Equity Noncontrolling Interests Total Equity Balance at January 1, 2020 $ 122 $ (81,567 ) $ 1,170,039 $ 687,332 $ (340,112 ) $ 1,435,814 $ 12,508 $ 1,448,322 Issuance of share based awards and share based awards compensation expense — — 4,111 — — 4,111 — 4,111 Stock withholdings related to share based awards that vested during the three months ended March 31, 2020 — (2,691 ) — — — (2,691 ) — (2,691 ) Dividends paid to stockholders, $0.36 per common share (1) — — — (42,311 ) — (42,311 ) — (42,311 ) Dividends paid to noncontrolling interests — — — — — — (392 ) (392 ) Dividends accrued on unvested restricted stock unit awards (1) — — — (256 ) — (256 ) — (256 ) Net income (loss) — — — (59,591 ) — (59,591 ) 169 (59,422 ) Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — (24,171 ) (24,171 ) — (24,171 ) Foreign currency translation adjustments — — — — (57,625 ) (57,625 ) — (57,625 ) Balance at March 31, 2020 $ 122 $ (84,258 ) $ 1,174,150 $ 585,174 $ (421,908 ) $ 1,253,280 $ 12,285 $ 1,265,565 Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings Accumulated Other Comprehensive Loss Total Cinemark Holdings, Inc. Stockholders’ Equity Noncontrolling Interests Total Equity Balance at January 1, 2019 $ 121 $ (79,259 ) $ 1,155,424 $ 638,912 $ (319,007 ) $ 1,396,191 $ 12,379 $ 1,408,570 Cumulative effect of change in accounting principle, net of taxes of $6,054 — — — 16,985 — 16,985 — 16,985 Issuance of share based awards and share based awards compensation expense — — 2,970 — 2,970 — 2,970 Stock withholdings related to share based awards that vested during the three months ended March 31, 2019 — (1,947 ) — — — (1,947 ) — (1,947 ) Dividends paid to stockholders, $0.34 per common share (1) — — — (39,797 ) — (39,797 ) — (39,797 ) Dividends paid to noncontrolling interests — — — — — — (1,000 ) (1,000 ) Dividends accrued on unvested restricted stock unit awards (1) — — — (108 ) — (108 ) — (108 ) Net income — — — 32,728 — 32,728 465 33,193 Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements — — — — (3,311 ) (3,311 ) — (3,311 ) Other comprehensive loss in equity method investees — — — — (71 ) (71 ) — (71 ) Foreign currency translation adjustments — — — — 755 755 — 755 Balance at March 31, 2019 $ 121 $ (81,206 ) $ 1,158,394 $ 648,720 $ (321,634 ) $ 1,404,395 $ 11,844 $ 1,416,239 (1) Below is a summary of dividends paid to stockholders and accrued on unvested restricted stock unit awards during the three months ended March 31, 2020 and 2019: Amount per Share Declaration Date Record Date Payable Date of Common Stock Total 2/21/2020 3/6/2020 3/20/2020 $ 0.36 $ 42,567 2/22/2019 3/8/2019 3/22/2019 $ 0.34 $ 39,905 |
National CineMedia (Tables)
National CineMedia (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of March 31, 2020 and when the Company expects to recognize this revenue. Twelve Months Ended March 31, Remaining Performance Obligations 2021 2022 2023 2024 2025 Thereafter Total Other Deferred revenue 124,099 14,868 145 — — — $ 139,112 |
NCM Screen Advertising Advances | |
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized | The recognition of revenue related to the NCM screen advertising advances will be recorded on a straight-line basis through February 2041. Twelve Months Ended March 31, Remaining Maturity 2021 2022 2023 2024 2025 Thereafter Total NCM screen advertising advances $ 7,865 $ 8,407 $ 8,989 $ 9,612 $ 10,279 $ 304,952 $ 350,104 |
NCM | |
Summary of Activity With Equity Investee Included in the Company's Condensed Consolidated Financial Statements | Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements: Investment in NCM NCM Screen Advertising Advances Distributions from NCM Equity in Earnings Other Revenue Interest Expense - NCM Cash Received Balance as of January 1, 2020 $ 265,792 $ (348,354 ) Receipt of common units due to annual common unit adjustment ("CUA") 3,620 (3,620 ) $ — $ — $ — $ — $ — Screen rental revenues earned under ESA (1) — — — — (3,461 ) — 3,461 Interest accrued related to significant financing component — (5,891 ) — — — 5,891 — Receipt of excess cash distributions (10,567 ) — (5,224 ) — — — 15,791 Equity in earnings 6,526 — — (6,526 ) — — — Amortization of screen advertising advances — 7,761 — — (7,761 ) — — Balance as of and for the three months ended March 31, 2020 $ 265,371 $ (350,104 ) $ (5,224 ) $ (6,526 ) $ (11,222 ) $ 5,891 $ 19,252 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $2,134. |
Summary Financial Information | NCM Financial Information Below is summary financial information for NCM for the periods indicated: Three Three March 26, 2020 March 28, 2019 Gross revenues $ 64,700 $ 76,900 Operating income $ 4,900 $ 10,900 Net loss $ (8,600 ) $ (2,900 ) As of As of March 26, 2020 December 26, 2019 Current assets $ 248,900 $ 185,400 Noncurrent assets $ 710,100 $ 706,600 Current liabilities $ 68,600 $ 125,500 Noncurrent liabilities $ 1,075,600 $ 947,800 Members deficit $ (185,200 ) $ (181,300 ) |
Other Investments (Tables)
Other Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Activity for Each of Company's Other Investments | Below is a summary of activity for each of the Company’s other investments for the three months ended March 31, 2020: DCIP AC JV, LLC DCDC FE Concepts Other Total Balance at January 1, 2020 $ 124,696 $ 5,022 $ 3,169 $ 19,519 $ 2,879 $ 155,285 Cash distributions received (5,161 ) — (878 ) — — (6,039 ) Equity in income (loss) 1,249 740 194 (223 ) — 1,960 Other 50 — — — (24 ) 26 Balance at March 31, 2020 $ 120,834 $ 5,762 $ 2,485 $ 19,296 $ 2,855 $ 151,232 |
Digital Cinema Implementation Partners | |
Summary Financial Information | Below is summary financial information for DCIP for the periods indicated: Three Months Ended March 31, 2020 March 31, 2019 Gross revenues $ 32,510 $ 44,774 Operating income (loss) $ (5,239 ) $ 20,208 Net income (loss) $ (11,140 ) $ 18,485 As of March 31, 2020 December 31, 2019 Current assets $ 40,241 $ 51,382 Noncurrent assets $ 531,867 $ 581,547 Current liabilities $ 55,737 $ 70,515 Noncurrent liabilities $ 159 $ 190 Members' equity $ 516,212 $ 562,224 |
Transactions with DCIP | The Company had the following transactions with DCIP, reflected in utilities and other costs on the condensed consolidated statements of income, during the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Equipment lease payments $ 1,038 $ 1,121 Warranty reimbursements from DCIP $ (3,123 ) $ (2,938 ) Management service fees $ 84 $ 158 |
Treasury Stock and Share Base_2
Treasury Stock and Share Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Treasury Stock Activity | Below is a summary of the Company’s treasury stock activity for the three months ended March 31, 2020: Number of Treasury Shares Cost Balance at January 1, 2020 4,711,859 $ 81,567 Restricted stock withholdings (1) 86,957 2,691 Restricted stock forfeitures 11,244 — Balance at March 31, 2020 4,810,060 $ 84,258 (1) The Company withheld restricted shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock and restricted stock units. The Company determined the number of shares to be withheld based upon market values ranging from $12.30 to $32.12 per share. |
Summary of Restricted Stock Activity | Below is a summary of restricted stock activity for the three months ended March 31, 2020: Shares of Weighted Average Restricted Grant Date Stock Fair Value Outstanding at January 1, 2020 783,823 $ 37.53 Granted 353,196 $ 32.12 Vested (260,278 ) $ 35.05 Forfeited (11,244 ) $ 37.52 Outstanding at March 31, 2020 865,497 $ 36.07 Unvested restricted stock at March 31, 2020 865,497 $ 36.07 |
Summary of Potential Number of Shares that Could Vest Under Restricted Stock Unit Awards | Below is a table summarizing the potential number of shares that could vest under restricted stock unit awards granted during the three months ended March 31, 2020 Number of Shares Value at Vesting Grant at IRR of at least 6% 190,707 $ 6,125 at IRR of at least 8% 286,060 $ 9,188 at IRR of at least 14% 436,681 $ 14,026 |
Restricted Stock | |
Summary of Restricted Stock and Restricted Stock Unit Award Activity | March 31, 2020 2019 Compensation expense recognized during the period $ 2,691 $ 2,433 Fair value of restricted shares that vested during the period $ 8,029 $ 5,745 Income tax benefit recognized upon vesting of restricted stock awards $ 2,418 $ 1,002 |
Restricted Stock Units (RSUs) | |
Summary of Restricted Stock and Restricted Stock Unit Award Activity | March 31, 2020 2019 Number of restricted stock unit awards that vested during the period 112,070 88,074 Fair value of restricted stock unit awards that vested during the period $ 3,554 $ 3,550 Accumulated dividends paid upon vesting of restricted stock unit awards $ 544 $ 375 Compensation expense recognized during the period $ 1,420 $ 537 Income tax benefit recognized upon vesting of restricted stock unit awards $ 821 $ 170 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The Company’s goodwill was as follows: U.S. Operating Segment International Operating Segment Total Balance at January 1, 2020 (1) $ 1,182,853 $ 100,518 $ 1,283,371 Foreign currency translation adjustments — (14,812 ) (14,812 ) Balance at March 31, 2020 (1) $ 1,182,853 $ 85,706 $ 1,268,559 (1) Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. |
Intangible Assets | Intangible assets consisted of the following: Balance at January 1, 2020 Amortization Other (1) Balance at March 31, 2020 Intangible assets with finite lives: Gross carrying amount $ 85,007 $ — $ (1,798 ) $ 83,209 Accumulated amortization (63,924 ) (1,241 ) — (65,165 ) Total net intangible assets with finite lives $ 21,083 $ (1,241 ) $ (1,798 ) $ 18,044 Intangible assets with indefinite lives: Tradename and other 300,686 — (73 ) 300,613 Total intangible assets — net $ 321,769 $ (1,241 ) $ (1,871 ) $ 318,657 (1) Amount primarily represents foreign currency translation adjustments. |
Estimated Aggregate Future Amortization Expense for Intangible Assets | Estimated aggregate future amortization expense for intangible assets is as follows: For the nine months ended December 31, 2020 $ 3,655 For the twelve months ended December 31, 2021 2,801 For the twelve months ended December 31, 2022 2,648 For the twelve months ended December 31, 2023 2,550 For the twelve months ended December 31, 2024 2,550 Thereafter 3,840 Total $ 18,044 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Summary of Impairment Charges | Below is a summary of impairment charges for the periods presented: Three Months Ended March 31, 2020 2019 U.S. Segment Theatre properties $ 3,643 $ 1,208 Theatre operating lease right-of-use assets 5,952 — U.S. total 9,595 1,208 International segment Theatre properties 4,484 4,376 Theatre operating lease right-of-use assets 2,540 — International total 7,024 4,376 Total Impairment $ 16,619 $ 5,584 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Liabilities Measured at Fair Value on a Recurring Basis | Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of March 31, 2020: Carrying Fair Value Description Value Level 1 Level 2 Level 3 Interest rate swap liabilities (1) $ 38,460 $ — $ 38,460 $ — (1) See further discussion of interest rate swaps at Note 7. Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2019: Carrying Fair Value Description Value Level 1 Level 2 Level 3 Interest rate swap liabilities (1) $ 15,995 $ — $ 15,995 $ — (1) See further discussion of interest rate swaps at Note 7. |
Foreign Currency Translation (T
Foreign Currency Translation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries | Below is a summary of the impact of translating the March 31, 2020 and 2019 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Three Months Ended Country March 31, 2020 December 31, 2019 March 31, 2020 March 31, 2019 Brazil 5.20 4.02 $ (42,873 ) $ (2,334 ) Chile 857.94 736.86 (11,126 ) 1,473 Colombia 4,064.81 3,277.14 (3,274 ) 982 Peru 3.47 3.37 (1,450 ) 431 All other 1,098 203 $ (57,625 ) $ 755 (1) Beginning July 1, 2018, Argentina was deemed highly inflationary. A loss of $294 and $394 for the three months ended March 31, 2020 and 2019, respectively, is reflected as foreign currency exchange gain (loss) on the Company’s condensed consolidated statement of income as a result of translating Argentina financial results to U.S. dollars. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information to Condensed Consolidated Statements of Cash Flows | The following is provided as supplemental information to the condensed consolidated statements of cash flows: Three Months Ended March 31, 2020 2019 Cash paid for interest $ 8,774 $ 9,104 Cash paid for income taxes, net of refunds received $ 2,110 $ 3,414 Noncash investing and financing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (1) $ 2,269 $ (14,660 ) Interest expense - NCM (see Note 9) $ (5,891 ) $ (4,782 ) Investment in NCM – receipt of common units (see Note 9) $ 3,620 $ 1,552 Dividends accrued on unvested restricted stock unit awards $ (256 ) $ (108 ) (1) Additions to theatre properties and equipment included in accounts payable as of March 31, 2020 and December 31, 2019 were $17,260 and $14,991, respectively. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Reportable Operating Segment | Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended March 31, 2020 2019 Revenues U.S. $ 429,302 $ 557,798 International 116,173 159,907 Eliminations (1,859 ) (2,982 ) Total revenues $ 543,616 $ 714,723 Adjusted EBITDA U.S. $ 56,072 $ 125,759 International 10,139 26,495 Total Adjusted EBITDA $ 66,211 $ 152,254 Capital expenditures U.S. $ 25,673 $ 52,339 International 8,470 5,230 Total capital expenditures $ 34,143 $ 57,569 |
Reconciliation of Net Income (Loss) to Adjusted EBITDA | The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA: Three Months Ended March 31, 2020 2019 Net income (loss) $ (59,422 ) $ 33,193 Add (deduct): Income taxes (3,108 ) 11,917 Interest expense (1) 24,666 25,141 Other (income) expense, net (2) 169 (8,335 ) Cash distributions from DCIP (3) 5,161 5,218 Cash distributions from other equity investees (4) 11,445 9,124 Depreciation and amortization 65,256 64,462 Impairment of long-lived assets 16,619 5,584 Loss on disposal of assets and other 1,905 3,799 Non-cash rent expense (591 ) (819 ) Share based awards compensation expense 4,111 2,970 Adjusted EBITDA $ 66,211 $ 152,254 (1) Includes amortization of debt issue costs. (2) Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM. (3) See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 10. These distributions are reported entirely within the U.S. operating segment. (4) Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 9 and 10). These distributions are reported entirely within the U.S. operating segment. |
Selected Financial Information by Geographic Area | Below is a breakdown of selected financial information by geographic area: Three Months Ended March 31, Revenues 2020 2019 U.S. $ 429,302 $ 557,798 Brazil 52,968 70,861 Other international countries 63,205 89,046 Eliminations (1,859 ) (2,982 ) Total $ 543,616 $ 714,723 As of As of Theatre Properties and Equipment-net March 31, 2020 December 31, 2019 U.S. $ 1,408,772 $ 1,436,275 Brazil 86,474 118,367 Other international countries 163,079 180,605 Total $ 1,658,325 $ 1,735,247 |
The Company and Basis of Pres_2
The Company and Basis of Presentation - Additional Information (Detail) | Mar. 31, 2020 |
Minimum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 20.00% |
Maximum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Cost method investment, ownership Percentage | 20.00% |
Impact of COVID-19 - Additional
Impact of COVID-19 - Additional Information (Detail) - Impact of COVID-19 | 3 Months Ended |
Mar. 31, 2020USD ($)Employee | |
Impact of COVID-19 [Line Item] | |
Percentage of executives salary voluntarily reduced | 80.00% |
Furloughed percentage of headquarter employees | 50.00% |
Percentage of salary payable to furloughed employees | 20.00% |
Percentage of salaries reduced to remaining employees | 50.00% |
Coronavirus Aid Relief And Economic Security Act | |
Impact of COVID-19 [Line Item] | |
Expected income tax refund receivable | $ 20,000 |
Directors and Chief Executive Officer | |
Impact of COVID-19 [Line Item] | |
Salary | $ 0 |
Domestic Hourly Theatre Employees | |
Impact of COVID-19 [Line Item] | |
Number of employees laid off | Employee | 17,500 |
Schedule of Aggregate Lease Cos
Schedule of Aggregate Lease Costs by Lease Classification (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating lease costs | |||
Total operating lease costs | $ 83,199 | $ 86,528 | |
Finance lease costs | |||
Total finance lease costs | 5,558 | 5,761 | |
Depreciation and Amortization | |||
Finance lease costs | |||
Amortization of leased assets | 3,707 | 3,740 | |
Interest Expense | |||
Finance lease costs | |||
Interest on lease liabilities | 1,851 | 2,021 | |
Equipment | Utilities and Other | |||
Operating lease costs | |||
Total operating lease costs | [1] | 1,541 | 1,743 |
Real Estate | Facility Lease Expense | |||
Operating lease costs | |||
Total operating lease costs | [2],[3] | $ 81,658 | $ 84,785 |
[1] | Includes approximately $413 and $620 of short-term lease payments for the three months ended March 31, 2020 and 2019, respectively. | ||
[2] | Approximately $460 and $402 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended March 31, 2020 and 2019, respectively. | ||
[3] | Includes approximately $12,247 and $15,934 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three months ended March 31, 2020 and 2019, respectively. |
Schedule of Aggregate Lease C_2
Schedule of Aggregate Lease Costs by Lease Classification (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease Cost [Line Items] | ||
Lease payments | $ 70,539 | $ 69,974 |
Equipment | Utilities and Other | ||
Lease Cost [Line Items] | ||
Short term lease payments | 413 | 620 |
Real Estate | Facility Lease Expense | ||
Lease Cost [Line Items] | ||
Variable lease payments | 12,247 | 15,934 |
Lease payments | $ 460 | $ 402 |
Schedule of Minimum Cash Lease
Schedule of Minimum Cash Lease Payments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Cash outflows for operating leases | $ 70,539 | $ 69,974 |
Cash outflows for finance leases - operating activities | 1,811 | 1,974 |
Cash outflows for finance leases - financing activities | 3,789 | 3,517 |
Real Estate | ||
Non-cash amount of leased assets obtained in exchange for: | ||
Operating lease liabilities | 37,615 | |
Equipment | ||
Non-cash amount of leased assets obtained in exchange for: | ||
Operating lease liabilities | $ 188 | $ 101 |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Detail) $ in Thousands | Mar. 31, 2020USD ($)Agreement |
Theatres | |
Lease [Line Items] | |
Noncancelable lease payments payable under operating lease, lease not yet commenced | $ | $ 220,403 |
Equipment | |
Lease [Line Items] | |
Number of noncancelable lease agreements signed, but not yet commenced | Agreement | 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Revenue From Contract With Customer [Abstract] | |||
Receivables related to contracts with customers | $ 19,016,000 | $ 31,620,000 | |
Assets related to costs to obtain or fulfill contract with customers | $ 0 | $ 0 |
Summary of Revenues Disaggregat
Summary of Revenues Disaggregated Based on Major Type of Good or Service and by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 543,616 | $ 714,723 | |
Admissions Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 292,462 | 395,540 | |
Concession Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 190,356 | 251,324 | |
Screen Advertising, Screen Rental and Promotional Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 30,655 | 34,618 | |
Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 30,143 | 33,241 | |
U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 427,443 | 554,816 |
U.S. Operating Segment | Admissions Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 232,326 | 308,839 |
U.S. Operating Segment | Concession Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 152,758 | 199,386 |
U.S. Operating Segment | Screen Advertising, Screen Rental and Promotional Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 18,209 | 20,580 |
U.S. Operating Segment | Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 24,150 | 26,011 |
International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 116,173 | 159,907 | |
International Operating Segment | Admissions Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 60,136 | 86,701 | |
International Operating Segment | Concession Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 37,598 | 51,938 | |
International Operating Segment | Screen Advertising, Screen Rental and Promotional Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 12,446 | 14,038 | |
International Operating Segment | Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 5,993 | $ 7,230 | |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Summary of Revenues Disaggreg_2
Summary of Revenues Disaggregated Based on Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 543,616 | $ 714,723 | |
U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 427,443 | 554,816 |
International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 116,173 | 159,907 | |
Goods and Services Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 502,694 | 675,292 | |
Goods and Services Transferred at a Point in Time | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 401,442 | 532,183 |
Goods and Services Transferred at a Point in Time | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 101,252 | 143,109 | |
Goods and Services Transferred Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 40,922 | 39,431 | |
Goods and Services Transferred Over Time | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 26,001 | 22,633 |
Goods and Services Transferred Over Time | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 14,921 | $ 16,798 | |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Changes in Advances and Deferre
Changes in Advances and Deferred Revenues (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2020 | $ 486,780 | |
Amounts recognized as accounts receivable | 1,354 | |
Cash received from customers in advance | 44,870 | |
Common units received from NCM (see Note 9) | 3,620 | |
Interest accrued related to significant financing component | 5,891 | |
Revenue recognized during period | (51,704) | |
Foreign currency translation adjustments | (1,595) | |
Balance at March 31, 2020 | 489,216 | |
NCM | ||
Change in Contract with Customer Liability [Line Items] | ||
Interest accrued related to significant financing component | (5,891) | |
NCM Screen Advertising Advances | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2020 | 348,354 | [1] |
Common units received from NCM (see Note 9) | (3,620) | |
Interest accrued related to significant financing component | 5,891 | [1] |
Revenue recognized during period | (7,761) | [1] |
Balance at March 31, 2020 | 350,104 | [1] |
NCM Screen Advertising Advances | NCM | ||
Change in Contract with Customer Liability [Line Items] | ||
Common units received from NCM (see Note 9) | 3,620 | [1] |
Other Deferred Revenues | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2020 | 138,426 | [2] |
Amounts recognized as accounts receivable | 1,354 | [2] |
Cash received from customers in advance | 44,870 | [2] |
Revenue recognized during period | (43,943) | [2] |
Foreign currency translation adjustments | (1,595) | [2] |
Balance at March 31, 2020 | $ 139,112 | [2] |
[1] | See Note 9 for the maturity of balance as of March 31, 2020. | |
[2] | Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. |
Aggregate Amount of Transaction
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Other Deferred Revenues | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 139,112 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | 124,099 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | 14,868 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 145 |
Aggregate Amount of Transacti_2
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized (Detail 1) $ in Thousands | Mar. 31, 2020USD ($) |
Other Deferred Revenues | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 139,112 |
Computations of Basic and Dilut
Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Earnings Per Share Disclosure [Line Items] | ||||
Net income (loss) attributable to Cinemark Holdings, Inc. | $ (59,591) | $ 32,728 | ||
Loss (earnings) allocated to participating share-based awards | [1] | (350) | 183 | |
Net income (loss) attributable to common stockholders | $ (59,241) | $ 32,545 | ||
Basic weighted average common stock outstanding | 116,496,000 | 116,179,000 | ||
Diluted common equivalent shares | 116,496,000 | 116,418,000 | ||
Basic | $ (0.51) | $ 0.28 | ||
Diluted | $ (0.51) | $ 0.28 | ||
Restricted Stock Units (RSUs) | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Common equivalent shares for restricted stock units | 92,000 | 239,000 | [2] | |
[1] | For the three months ended March 31, 2020 and 2019, a weighted average of approximately 683 and 659 shares of restricted stock, respectively, were considered participating securities. | |||
[2] | For the three months ended March 31, 2020, approximately 92 common equivalent shares for restricted stock units were excluded because they were anti-dilutive. |
Computations of Basic and Dil_2
Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share Disclosure [Line Items] | |||
Weighted average shares of participating restricted stock | 683,000 | 659,000 | |
Restricted Stock Units (RSUs) | |||
Earnings Per Share Disclosure [Line Items] | |||
Common equivalent shares for restricted stock units | 92,000 | 239,000 | [1] |
[1] | For the three months ended March 31, 2020, approximately 92 common equivalent shares for restricted stock units were excluded because they were anti-dilutive. |
Long Term Debt Activity - Addit
Long Term Debt Activity - Additional Information (Detail) $ in Thousands | Mar. 25, 2020USD ($) | Mar. 31, 2020USD ($)Agreement | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||
Amount borrowed from revolving credit line | $ 98,800 | ||
Number of interest rate swap agreements amended and extended | Agreement | 3 | ||
Carrying value of long-term debt | $ 1,898,478 | $ 1,801,327 | |
Fair value of long-term debt | 1,490,842 | $ 1,826,503 | |
Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Lass accumulated on swaps prior to the amendments | (29,359) | ||
Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Available borrowing capacity | 71 | ||
Quarterly principal payments due | $ 1,649 | ||
Last quarterly payment date | Dec. 31, 2024 | ||
Final principal payment | $ 613,351 | ||
Term Loan Credit facility | Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of add-on to Senior Notes | 700,000 | ||
Amount outstanding under the term loan | $ 644,678 | ||
Final principal payment due date | Mar. 29, 2025 | ||
Average interest rate on outstanding borrowings | 3.50% | ||
Revolving Credit Line | Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of add-on to Senior Notes | $ 100,000 | ||
Amount borrowed from revolving credit line | $ 98,800 | ||
Amount outstanding under the revolving credit line | $ 98,800 | ||
Revolving credit line, maturity date | Nov. 28, 2022 | ||
Average interest rate on outstanding revolver borrowings | 2.90% |
Long Term Debt Activity - Summa
Long Term Debt Activity - Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges (Detail) - Designated as Hedging Instrument - Cash Flow Hedging $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 38,460 | [1] |
Interest Rate Swap Agreement 1 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.12% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 11,332 | [1] |
Interest Rate Swap Agreement 2 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 175,000 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.12% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 14,447 | [1] |
Interest Rate Swap Agreement 3 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.19% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 11,800 | [1] |
Interest Rate Swap Agreement 4 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 150,000 | |
Effective Date | Mar. 31, 2020 | |
Pay Rate | 0.57% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Mar. 31, 2022 | |
Estimated Fair Value | $ 881 | [1] |
[1] | Approximately $8,949 of the total is included in accounts payable and accrued expenses and $29,511 is included in other long-term liabilities on the condensed consolidated balance sheet as of March 31, 2020. |
Long Term Debt Activity - Sum_2
Long Term Debt Activity - Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges (Parenthetical) (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Accounts Payable and Accrued Expenses | |
Debt Instrument [Line Items] | |
Estimated Fair Value | $ 8,949 |
Other Long-term Liabilities | |
Debt Instrument [Line Items] | |
Estimated Fair Value | $ 29,511 |
Summary of Changes in Stockhold
Summary of Changes in Stockholders Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | $ 1,448,322 | $ 1,408,570 | |
Cumulative effect of change in accounting principle, net of taxes | 16,985 | ||
Issuance of share based awards and share based awards compensation expense | 4,111 | 2,970 | |
Stock withholdings related to share based awards that vested | (2,691) | (1,947) | |
Dividends paid to stockholders | [1] | (42,311) | (39,797) |
Dividends paid to noncontrolling interests | (392) | (1,000) | |
Dividends accrued on unvested restricted stock unit awards | [1] | (256) | (108) |
Net income (loss) | (59,422) | 33,193 | |
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements | (24,171) | (3,311) | |
Other comprehensive loss in equity method investees | 0 | (71) | |
Foreign currency translation adjustments | (57,625) | 755 | |
Total Equity, Ending Balance | 1,265,565 | 1,416,239 | |
Common Stock | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | 122 | 121 | |
Total Equity, Ending Balance | 122 | 121 | |
Treasury Stock | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | (81,567) | (79,259) | |
Stock withholdings related to share based awards that vested | (2,691) | (1,947) | |
Total Equity, Ending Balance | (84,258) | (81,206) | |
Additional Paid-In-Capital | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | 1,170,039 | 1,155,424 | |
Issuance of share based awards and share based awards compensation expense | 4,111 | 2,970 | |
Total Equity, Ending Balance | 1,174,150 | 1,158,394 | |
Retained Earnings | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | 687,332 | 638,912 | |
Cumulative effect of change in accounting principle, net of taxes | 16,985 | ||
Dividends paid to stockholders | [1] | (42,311) | (39,797) |
Dividends accrued on unvested restricted stock unit awards | [1] | (256) | (108) |
Net income (loss) | (59,591) | 32,728 | |
Total Equity, Ending Balance | 585,174 | 648,720 | |
Accumulated Other Comprehensive Loss | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | (340,112) | (319,007) | |
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements | (24,171) | (3,311) | |
Other comprehensive loss in equity method investees | (71) | ||
Foreign currency translation adjustments | (57,625) | 755 | |
Total Equity, Ending Balance | (421,908) | (321,634) | |
Total Cinemark Holdings, Inc.'s Stockholders' Equity | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | 1,435,814 | 1,396,191 | |
Cumulative effect of change in accounting principle, net of taxes | 16,985 | ||
Issuance of share based awards and share based awards compensation expense | 4,111 | 2,970 | |
Stock withholdings related to share based awards that vested | (2,691) | (1,947) | |
Dividends paid to stockholders | [1] | (42,311) | (39,797) |
Dividends accrued on unvested restricted stock unit awards | [1] | (256) | (108) |
Net income (loss) | (59,591) | 32,728 | |
Unrealized loss due to fair value adjustments on interest rate swap agreements, net of taxes, net of settlements | (24,171) | (3,311) | |
Other comprehensive loss in equity method investees | (71) | ||
Foreign currency translation adjustments | (57,625) | 755 | |
Total Equity, Ending Balance | 1,253,280 | 1,404,395 | |
Noncontrolling Interests | |||
Shareholders Equity [Line Items] | |||
Total Equity, Beginning Balance | 12,508 | 12,379 | |
Dividends paid to noncontrolling interests | (392) | (1,000) | |
Net income (loss) | 169 | 465 | |
Total Equity, Ending Balance | $ 12,285 | $ 11,844 | |
[1] | (1) Below is a summary of dividends paid to stockholders and accrued on unvested restricted stock unit awards during the three months ended March 31, 2020 and 2019: Amount per Share Declaration Date Record Date Payable Date of Common Stock Total 2/21/2020 3/6/2020 3/20/2020 $ 0.36 $ 42,567 2/22/2019 3/8/2019 3/22/2019 $ 0.34 $ 39,905 |
Summary of Changes in Stockho_2
Summary of Changes in Stockholders Equity (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Dividends paid to stockholders, per share | $ 0.36 | $ 0.34 |
Cumulative effect of change in accounting principle, taxes | $ 6,054 | |
Declaration Date | Feb. 21, 2020 | Feb. 22, 2019 |
Record Date | Mar. 6, 2020 | Mar. 8, 2019 |
Payable Date | Mar. 20, 2020 | Mar. 22, 2019 |
Amount per Share of Common Stock | $ 0.36 | $ 0.34 |
Total | $ 42,567 | $ 39,905 |
Summary of Activity with NCM In
Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Receipt of common units due to annual common unit adjustment ("CUA") | $ 3,620 | ||
Equity in earnings | 8,486 | $ 10,404 | |
NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Beginning Balance | 265,792 | ||
Beginning Balance | (348,354) | ||
Ending Balance | 265,371 | ||
Ending Balance | (350,104) | ||
Investment In NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Beginning Balance | 265,792 | ||
Receipt of common units due to annual common unit adjustment ("CUA") | 3,620 | ||
Receipt of excess cash distributions | (10,567) | ||
Equity in earnings | 6,526 | ||
Ending Balance | 265,371 | ||
NCM Screen Advertising Advances | |||
Schedule Of Equity Method Investments [Line Items] | |||
Beginning Balance | (348,354) | ||
Receipt of common units due to annual common unit adjustment ("CUA") | (3,620) | ||
Interest accrued related to significant financing component | (5,891) | ||
Amortization of screen advertising advances | 7,761 | ||
Ending Balance | (350,104) | ||
NCM Screen Advertising Advances | NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Receipt of common units due to annual common unit adjustment ("CUA") | [1] | 3,620 | |
Distributions from NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Receipt of excess cash distributions | (5,224) | ||
Total Distributions from NCM | (5,224) | ||
Equity in Earnings | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ending Balance | (6,526) | ||
Equity in Earnings | NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity in earnings | (6,526) | ||
Other Revenues | |||
Schedule Of Equity Method Investments [Line Items] | |||
Screen rental revenues earned under ESA | [2] | (3,461) | |
Total Revenues | (11,222) | ||
Other Revenues | NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Amortization of screen advertising advances | (7,761) | ||
Interest Expense - NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Interest accrued related to significant financing component | 5,891 | ||
Total noncash interest expense accrued related to NCM screen advertising advances | 5,891 | ||
Cash Received | |||
Schedule Of Equity Method Investments [Line Items] | |||
Screen rental revenues earned under ESA | [2] | 3,461 | |
Receipt of excess cash distributions | 15,791 | ||
Total Cash Received from NCM | $ 19,252 | ||
[1] | See Note 9 for the maturity of balance as of March 31, 2020. | ||
[2] | Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $2,134. |
Summary of Activity with NCM _2
Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Parenthetical) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Equity Method Investments And Joint Ventures [Abstract] | |
Company's beverage concessionaire advertising costs | $ 2,134 |
National CineMedia - Additional
National CineMedia - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule Of Equity Method Investments [Line Items] | |||
Number of additional common units of NCM received under common unit adjustment agreement | shares | 1,112,368 | ||
Value of common units received from NCM | $ 3,620,000 | $ 1,552,000 | |
Number of common units of NCM owned by Company | shares | 40,850,068 | ||
Interest in common units of NCM owned by Company | 25.00% | ||
Interest accrued related to significant financing component | $ (5,891,000) | ||
Investment In NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Common unit convertible into share of NCMI common stock, conversion ratio | 1 | ||
Estimated fair value of investment using NCM's stock price | $ 133,171,000 | ||
NCMI common stock price | $ / shares | $ 3.26 | ||
Investment in NCM | $ 265,371,000 | $ 265,792,000 | |
NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Proceeds from ESA Modification | $ 174,000,000 | ||
Deferred revenue amortization year and month | 2041-02 | ||
Investment in NCM | $ 265,371,000 | $ 265,792,000 | |
Impairment of investment | $ 0 | ||
Deferred revenue or NCM screen advertising advances extended term | 2041-02 | ||
Recognized incremental screen rental revenue and offsetting interest expense | $ 4,782,000 | ||
Interest accrued related to significant financing component | $ 5,891,000 | ||
NCM | Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of incremental borrowing rates | 4.30% | ||
NCM | Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of incremental borrowing rates | 8.30% |
Summary of Recognition of Reven
Summary of Recognition of Revenue Related To Deferred Revenue (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
NCM Screen Advertising Advances | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation, amount | $ 350,104 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation, amount | $ 7,865 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation, amount | $ 8,407 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation, amount | $ 8,989 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation, amount | $ 9,612 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation, amount | $ 10,279 |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue remaining performance obligation, amount | $ 304,952 |
Summary of Recognition of Rev_2
Summary of Recognition of Revenue Related To Deferred Revenue (Detail 1) $ in Thousands | Mar. 31, 2020USD ($) |
NCM Screen Advertising Advances | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation, amount | $ 350,104 |
Summary Financial Information f
Summary Financial Information for National CineMedia (Detail) - NCM - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2020 | Mar. 28, 2019 | Dec. 26, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||
Gross revenues | $ 64,700 | $ 76,900 | |
Operating income | 4,900 | 10,900 | |
Net loss | (8,600) | $ (2,900) | |
Current assets | 248,900 | $ 185,400 | |
Noncurrent assets | 710,100 | 706,600 | |
Current liabilities | 68,600 | 125,500 | |
Noncurrent liabilities | 1,075,600 | 947,800 | |
Members deficit | $ (185,200) | $ (181,300) |
Summary of Activity for Each of
Summary of Activity for Each of Company's Other Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | $ 155,285 | ||
Cash distributions received | (16,606) | $ (14,342) | |
Equity in earnings | 8,486 | 10,404 | |
Investments, ending balance | 151,232 | ||
Digital Cinema Implementation Partners | |||
Schedule Of Equity Method Investments [Line Items] | |||
Cash distributions received | [1] | (5,161) | $ (5,218) |
Other Affiliates | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | 155,285 | ||
Cash distributions received | (6,039) | ||
Equity in earnings | 1,960 | ||
Other | 26 | ||
Investments, ending balance | 151,232 | ||
Other Affiliates | Digital Cinema Implementation Partners | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | 124,696 | ||
Cash distributions received | (5,161) | ||
Equity in earnings | 1,249 | ||
Other | 50 | ||
Investments, ending balance | 120,834 | ||
Other Affiliates | AC JV, LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | 5,022 | ||
Equity in earnings | 740 | ||
Investments, ending balance | 5,762 | ||
Other Affiliates | Digital Cinema Distribution Coalition | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | 3,169 | ||
Cash distributions received | (878) | ||
Equity in earnings | 194 | ||
Investments, ending balance | 2,485 | ||
Other Affiliates | FE Concepts, LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | 19,519 | ||
Equity in earnings | (223) | ||
Investments, ending balance | 19,296 | ||
Other Affiliates | Other Investments | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments, beginning balance | 2,879 | ||
Other | (24) | ||
Investments, ending balance | $ 2,855 | ||
[1] | See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 10. These distributions are reported entirely within the U.S. operating segment. |
Other Investments - Additional
Other Investments - Additional Information (Detail) $ in Thousands | Apr. 30, 2018USD ($) | Mar. 31, 2020USD ($)StudioProjectionSystem | Mar. 31, 2019USD ($) |
Schedule Of Equity Method Investments [Line Items] | |||
Total revenues | $ 543,616 | $ 714,723 | |
Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of voting interest | 50.00% | ||
Minimum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of voting interest | 20.00% | ||
Digital Cinema Implementation Partners | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of voting interest | 33.00% | ||
Economic interest in Digital Cinema Implementation Partners | 24.30% | ||
Description of digital cinema deployment agreements | The DCDAs end on the earlier to occur of (i) the tenth anniversary of the "mean deployment date" for all digital projection systems scheduled to be deployed over a period of up to five years, or (ii) the date DCIP achieves "cost recoupment", each as defined in the DCDAs. | ||
Number of major motion picture studio, long-term digital cinema deployment agreements | Studio | 6 | ||
Number of equipment being leased under master equipment lease agreement | ProjectionSystem | 3,866 | ||
Digital Cinema Implementation Partners | Maximum | |||
Schedule Of Equity Method Investments [Line Items] | |||
Deployment period of digital cinema deployment agreements | 5 years | ||
AC JV, LLC | Film rentals and advertising | |||
Schedule Of Equity Method Investments [Line Items] | |||
Event fees | $ 1,673 | 5,317 | |
Digital Cinema Distribution Coalition | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of voting interest | 14.60% | ||
Payments for content delivery services | $ 105 | $ 263 | |
CNMK Texas Properties, LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of voting interest | 50.00% | ||
Cash contributions | $ 20,000 | ||
CNMK Texas Properties, LLC | AWSR Investments, LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of voting interest | 50.00% | ||
Cash contributions | $ 20,000 | ||
CNMK Texas Properties, LLC | AWSR Investments, LLC | Theatre Services | |||
Schedule Of Equity Method Investments [Line Items] | |||
Total revenues | $ 10 |
Summary Financial Information_2
Summary Financial Information for DCIP (Detail) - Other Affiliates - Digital Cinema Implementation Partners - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||
Gross revenues | $ 32,510 | $ 44,774 | |
Operating income (loss) | (5,239) | 20,208 | |
Net income (loss) | (11,140) | $ 18,485 | |
Current assets | 40,241 | $ 51,382 | |
Noncurrent assets | 531,867 | 581,547 | |
Current liabilities | 55,737 | 70,515 | |
Noncurrent liabilities | 159 | 190 | |
Members' equity | $ 516,212 | $ 562,224 |
Transactions with DCIP (Detail)
Transactions with DCIP (Detail) - Digital Cinema Implementation Partners - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | ||
Equipment lease payments | $ 1,038 | $ 1,121 |
Warranty reimbursements from DCIP | (3,123) | (2,938) |
Management service fees | $ 84 | $ 158 |
Summary of Treasury Stock Activ
Summary of Treasury Stock Activity (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)shares | ||
Treasury Stock Shares [Abstract] | ||
Beginning Balance, Shares | shares | 4,711,859 | |
Restricted stock withholdings | shares | 86,957 | [1] |
Restricted stock forfeitures | shares | 11,244 | |
Ending Balance, Shares | shares | 4,810,060 | |
Beginning Balance, Cost | $ | $ 81,567 | |
Restricted stock withholdings | $ | 2,691 | [1] |
Restricted stock forfeitures | $ | 0 | |
Ending Balance, Cost | $ | $ 84,258 | |
[1] | The Company withheld restricted shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock and restricted stock units. The Company determined the number of shares to be withheld based upon market values ranging from $12.30 to $32.12 per share. |
Summary of Treasury Stock Act_2
Summary of Treasury Stock Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Minimum | |
Schedule of Treasury Stock [Line Items] | |
Market Value of Restricted Shares | $ 12.30 |
Maximum | |
Schedule of Treasury Stock [Line Items] | |
Market Value of Restricted Shares | $ 32.12 |
Treasury Stock and Share Base_3
Treasury Stock and Share Based Awards - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Restricted Stock | |
Stockholders Equity Note [Line Items] | |
Number of restricted shares granted | 353,196 |
Market value of common stock on the dates of grant | $ / shares | $ 32.12 |
Restricted Stock | Minimum | |
Stockholders Equity Note [Line Items] | |
Forfeiture rate for restricted stock awards | 0.00% |
Award vesting period for restricted stock | 1 year |
Restricted Stock | Maximum | |
Stockholders Equity Note [Line Items] | |
Forfeiture rate for restricted stock awards | 10.00% |
Award vesting period for restricted stock | 4 years |
Unvested Restricted Stock Awards | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation expense | $ | $ 22,864 |
Remaining compensation expense recognition period (in years) | 3 years |
Restricted Stock Units (RSUs) | |
Stockholders Equity Note [Line Items] | |
Market value of common stock on the dates of grant | $ / shares | $ 32.12 |
Unrecognized compensation expense | $ | $ 17,185 |
Remaining compensation expense recognition period (in years) | 3 years |
Number of hypothetical shares of common stock | 436,681 |
Share-based compensation arrangement by share-based payment award, description | The financial performance factors are based on an implied equity value concept that determines an internal rate of return (“IRR”) during the two fiscal year periods ending December 31, 2021 based on a formula utilizing a multiple of Adjusted EBITDA subject to certain adjustments as specified by the Compensation Committee prior to the grant date |
Internal rate of return, performance period | 2 years |
Percentage of IRR, which is the threshold | 6.00% |
Percentage of IRR, which is the target | 8.00% |
Percentage of IRR, which is the maximum | 14.00% |
Percentage of IRR expected | 11.00% |
Share-based compensation arrangement by share-based payment award, vesting condition | All restricted stock units granted during 2020 will vest subject to an additional two-year service requirement and will be paid in the form of common stock if the participant continues to provide services through the fourth anniversary of the grant date |
Expected forfeiture rate | 5.00% |
Number of hypothetical shares of common stock at IRR levels | 1,008,288 |
Restricted Stock Units (RSUs) | Stock Grants 2018 | |
Stockholders Equity Note [Line Items] | |
Achieved percentage of IRR | 8.60% |
Restricted Stock Units (RSUs) | Stock Grants 2017 | |
Stockholders Equity Note [Line Items] | |
Achieved percentage of IRR | 9.30% |
Restricted Stock Units (RSUs) | Maximum | Threshold IRR | |
Stockholders Equity Note [Line Items] | |
Vesting percentage of restricted stock units | 33.33% |
Restricted Stock Units (RSUs) | Maximum | Targeted IRR | |
Stockholders Equity Note [Line Items] | |
Vesting percentage of restricted stock units | 66.66% |
Restricted Stock Units (RSUs) | Maximum | Maximum IRR | |
Stockholders Equity Note [Line Items] | |
Vesting percentage of restricted stock units | 100.00% |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares of Restricted Stock | |
Shares of Restricted Stock, Beginning balance | shares | 783,823 |
Shares of Restricted Stock, Granted | shares | 353,196 |
Shares of Restricted Stock, Vested | shares | (260,278) |
Shares of Restricted Stock, Forfeited | shares | (11,244) |
Shares of Restricted Stock, Ending balance | shares | 865,497 |
Shares of Restricted Stock, Unvested restricted stock | shares | 865,497 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value Outstanding, Beginning | $ / shares | $ 37.53 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 32.12 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 35.05 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 37.52 |
Weighted Average Grant Date Fair Value Outstanding, Ending | $ / shares | 36.07 |
Weighted Average Grant Date Fair Value, Unvested restricted stock | $ / shares | $ 36.07 |
Summary of Restricted Stock and
Summary of Restricted Stock and Restricted Stock Unit Award Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock unit awards that vested during the period | 260,278 | |
Fair value of restricted shares that vested during the period | $ 8,029 | $ 5,745 |
Compensation expense recognized during the period | 2,691 | 2,433 |
Income tax benefit recognized upon vesting of restricted stock awards | $ 2,418 | $ 1,002 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock unit awards that vested during the period | 112,070 | 88,074 |
Fair value of restricted shares that vested during the period | $ 3,554 | $ 3,550 |
Accumulated dividends paid upon vesting of restricted stock unit awards | 544 | 375 |
Compensation expense recognized during the period | 1,420 | 537 |
Income tax benefit recognized upon vesting of restricted stock awards | $ 821 | $ 170 |
Summary of Potential Number of
Summary of Potential Number of Shares that Could Vest Under Restricted Stock Unit Awards (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)shares | |
Disclosure Of Restricted Stock Unit [Abstract] | |
Number of shares vesting at IRR of at least 6% | shares | 190,707 |
Number of shares vesting at IRR of at least 8% | shares | 286,060 |
Number of shares vesting at IRR of at least 14% | shares | 436,681 |
Value at grant at IRR of at least 6% | $ | $ 6,125 |
Value at grant at IRR of at least 8% | $ | 9,188 |
Value at grant at IRR of at least 14% | $ | $ 14,026 |
Summary of Goodwill (Detail)
Summary of Goodwill (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Goodwill [Line Items] | ||
Beginning Balance | $ 1,283,371 | [1] |
Foreign currency translation adjustments | (14,812) | |
Ending Balance | 1,268,559 | [1] |
U.S. Operating Segment | ||
Goodwill [Line Items] | ||
Beginning Balance | 1,182,853 | [1] |
Ending Balance | 1,182,853 | [1] |
International Operating Segment | ||
Goodwill [Line Items] | ||
Beginning Balance | 100,518 | [1] |
Foreign currency translation adjustments | (14,812) | |
Ending Balance | $ 85,706 | [1] |
[1] | Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment. |
Summary of Goodwill (Parentheti
Summary of Goodwill (Parenthetical) (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
U.S. Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 214,031 |
International Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 27,622 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020UnitCommunityCountry | |
Goodwill [Line Items] | |
Reporting unit percentage of fair value in excess of carrying value | 10.00% |
U.S. Operating Segment | |
Goodwill [Line Items] | |
Number of reporting unit | Community | 20 |
Multiplication Value to Cash flows for the determination of fair value of Reporting units | Unit | 8 |
International Operating Segment | |
Goodwill [Line Items] | |
Number of reporting unit | Country | 7 |
Intangible Assets (Detail)
Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible assets with finite lives, Beginning balance | $ 85,007 |
Other, Gross carrying amount | (1,798) |
Intangible assets with finite lives, Ending balance | 83,209 |
Intangible assets with finite lives, Accumulated amortization, Beginning balance | (63,924) |
Accumulated amortization | (1,241) |
Other Accumulated Amortization of Intangible Assets | 0 |
Intangible assets with finite lives, Accumulated amortization, Ending balance | (65,165) |
Net intangible assets with finite lives, Beginning balance | 21,083 |
Amortization, intangible assets | (1,241) |
Other, Finite lived intangible assets | (1,798) |
Net intangible assets with finite lives, Ending balance | 18,044 |
Indefinite-lived Intangible Assets, Tradename and Other, Beginning Balance | 300,686 |
Other, Tradename and Other | (73) |
Indefinite-lived Intangible Assets, Tradename and Other, Ending Balance | 300,613 |
Total intangible assets - net, Beginning balance | 321,769 |
Other, Total intangible assets - net | (1,871) |
Total intangible assets - net, Ending balance | $ 318,657 |
Estimated Aggregate Future Amor
Estimated Aggregate Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Net [Abstract] | ||
For the nine months ended December 31, 2020 | $ 3,655 | |
For the twelve months ended December 31, 2021 | 2,801 | |
For the twelve months ended December 31, 2022 | 2,648 | |
For the twelve months ended December 31, 2023 | 2,550 | |
For the twelve months ended December 31, 2024 | 2,550 | |
Thereafter | 3,840 | |
Total | $ 18,044 | $ 21,083 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | |
Multiple of cash flows used to estimate fair value of long-lived asset | 6 |
Summary of Impairment Charges (
Summary of Impairment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Total Impairment | $ 16,619 | $ 5,584 |
U.S. Operating Segment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Theatre properties | 3,643 | 1,208 |
Theatre operating lease right-of-use assets | 5,952 | |
Total Impairment | 9,595 | 1,208 |
International Operating Segment | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Theatre properties | 4,484 | 4,376 |
Theatre operating lease right-of-use assets | 2,540 | |
Total Impairment | $ 7,024 | $ 4,376 |
Summary of Liabilities Measured
Summary of Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest rate swap liabilities | [1] | $ 38,460 | $ 15,995 |
Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest rate swap liabilities | [1] | $ 38,460 | $ 15,995 |
[1] | See further discussion of interest rate swaps at Note 7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value of assets transfers in or out, level 1 to level 2 | $ 0 |
Fair value of assets transfers in or out, level 2 to level 1 | 0 |
Fair value, asset transfers into Level 3 | 0 |
Fair value, asset transfers out of Level 3 | $ 0 |
Foreign Currency Translation -
Foreign Currency Translation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency [Abstract] | ||
Accumulated other comprehensive income (loss) | $ 421,908 | $ 340,112 |
Cumulative foreign currency losses | $ 385,678 | $ 328,053 |
Cumulative inflation rate | 100.00% | |
Cumulative inflation period | 3 years |
Summary of Impact of Translatin
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019 | |
Foreign Currency Translation [Line Items] | |||
Other comprehensive Income (Loss) | $ (57,625) | $ 755 | |
International Subsidiaries | Cinemark Holdings, Inc. Stockholders' Equity | |||
Foreign Currency Translation [Line Items] | |||
Other comprehensive Income (Loss) | $ (57,625) | 755 | |
Brazil | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 5.20 | 4.02 | |
Other comprehensive Income (Loss) | $ (42,873) | (2,334) | |
Chile | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 857.94 | 736.86 | |
Other comprehensive Income (Loss) | $ (11,126) | 1,473 | |
Colombia | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 4,064.81 | 3,277.14 | |
Other comprehensive Income (Loss) | $ (3,274) | 982 | |
Peru | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 3.47 | 3.37 | |
Other comprehensive Income (Loss) | $ (1,450) | 431 | |
Other foreign countries | |||
Foreign Currency Translation [Line Items] | |||
Other comprehensive Income (Loss) | $ 1,098 | $ 203 |
Summary of Impact of Translat_2
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Foreign Currency Translation [Line Items] | ||
Foreign currency exchange gain (loss) | $ (4,848) | $ 22 |
Argentina | ||
Foreign Currency Translation [Line Items] | ||
Foreign currency exchange gain (loss) | $ (294) | $ (394) |
Supplemental Information to Con
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Schedule Of Cash Flow Supplemental [Line Items] | |||
Cash paid for interest | $ 8,774 | $ 9,104 | |
Cash paid for income taxes, net of refunds received | 2,110 | 3,414 | |
Noncash investing and financing activities: | |||
Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment | [1] | 2,269 | (14,660) |
Investment in NCM – receipt of common units (see Note 9) | 3,620 | 1,552 | |
Dividends accrued on unvested restricted stock unit awards | [2] | (256) | (108) |
NCM | |||
Noncash investing and financing activities: | |||
Interest expense - NCM (see Note 9) | $ (5,891) | $ (4,782) | |
[1] | Additions to theatre properties and equipment included in accounts payable as of March 31, 2020 and December 31, 2019 were $17,260 and $14,991, respectively. | ||
[2] | (1) Below is a summary of dividends paid to stockholders and accrued on unvested restricted stock unit awards during the three months ended March 31, 2020 and 2019: Amount per Share Declaration Date Record Date Payable Date of Common Stock Total 2/21/2020 3/6/2020 3/20/2020 $ 0.36 $ 42,567 2/22/2019 3/8/2019 3/22/2019 $ 0.34 $ 39,905 |
Supplemental Information to C_2
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Additions to theatre properties and equipment included in accounts payable | $ 17,260 | $ 14,991 |
Selected Financial Information
Selected Financial Information by Reportable Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 543,616 | $ 714,723 | |
Adjusted EBITDA | 66,211 | 152,254 | |
Capital expenditures | 34,143 | 57,569 | |
U.S. Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 427,443 | 554,816 |
International Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 116,173 | 159,907 | |
Operating Segments | U.S. Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 429,302 | 557,798 | |
Adjusted EBITDA | 56,072 | 125,759 | |
Capital expenditures | 25,673 | 52,339 | |
Operating Segments | International Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 116,173 | 159,907 | |
Adjusted EBITDA | 10,139 | 26,495 | |
Capital expenditures | 8,470 | 5,230 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (1,859) | $ (2,982) | |
[1] | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 17 for additional information on intercompany eliminations. |
Reconciliation of Net Income (L
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||
Net income (loss) | $ (59,422) | $ 33,193 | |
Add (deduct): | |||
Income taxes | (3,108) | 11,917 | |
Interest expense | [1] | 24,666 | 25,141 |
Other (income) expense, net | [2] | 169 | (8,335) |
Cash distributions and other cash distributions from equity investees | 16,606 | 14,342 | |
Depreciation and amortization | 65,256 | 64,462 | |
Impairment of long-lived assets | 16,619 | 5,584 | |
Loss on disposal of assets and other | 1,905 | 3,799 | |
Non-cash rent expense | (591) | (819) | |
Share based awards compensation expense | 4,111 | 2,970 | |
Adjusted EBITDA | 66,211 | 152,254 | |
Digital Cinema Implementation Partners | |||
Add (deduct): | |||
Cash distributions and other cash distributions from equity investees | [3] | 5,161 | 5,218 |
Other Investees | |||
Add (deduct): | |||
Cash distributions and other cash distributions from equity investees | [4] | $ 11,445 | $ 9,124 |
[1] | Includes amortization of debt issue costs. | ||
[2] | Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM. | ||
[3] | See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 10. These distributions are reported entirely within the U.S. operating segment. | ||
[4] | Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 9 and 10). These distributions are reported entirely within the U.S. operating segment. |
Selected Financial Informatio_2
Selected Financial Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 543,616 | $ 714,723 | |
Theatre Properties and Equipment - net | 1,658,325 | $ 1,735,247 | |
Reportable Geographical Components | U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 429,302 | 557,798 | |
Theatre Properties and Equipment - net | 1,408,772 | 1,436,275 | |
Reportable Geographical Components | Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 52,968 | 70,861 | |
Theatre Properties and Equipment - net | 86,474 | 118,367 | |
Reportable Geographical Components | Other international countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 63,205 | 89,046 | |
Theatre Properties and Equipment - net | 163,079 | $ 180,605 | |
Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ (1,859) | $ (2,982) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2020USD ($)TheatreFacilityLease | Mar. 31, 2019USD ($) | |
FE Concepts, LLC | ||
Related Party Transaction [Line Items] | ||
Management fee revenues | $ 10,000 | |
Percentage of voting interest | 50.00% | |
Laredo Theatre, Ltd | ||
Related Party Transaction [Line Items] | ||
Company's interest in Laredo | 75.00% | |
Lone Star Theatre's interest in Laredo | 25.00% | |
Ownership interest held by David Roberts | 100.00% | |
Percentage of common stock held by Chairman of the Board of Directors | 8.00% | |
Percentage of management fees based on theatre revenues | 5.00% | |
Maximum amount of theater revenue used to calculate management fees | $ 50,000,000 | |
Percentage of management fees based on theatre revenues in excess | 3.00% | |
Minimum amount of theater revenue used to calculate management fees | $ 50,000,000 | |
Management fee revenues | 62,000 | $ 146,000 |
Copper Beech Capital LLC | ||
Related Party Transaction [Line Items] | ||
Amount paid for the use of aircraft | $ 12,000 | 7,000 |
Syufy Enterprises, LP | ||
Related Party Transaction [Line Items] | ||
Number of theatres leased | Theatre | 14 | |
Number of parking facilities leased | Facility | 1 | |
Total number of leases | Lease | 15 | |
Number of leases with minimum annual rent | Lease | 14 | |
Number of leases without minimum annual rent | Lease | 1 | |
Total rent paid to Syufy | $ 4,065,000 | $ 6,590,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Feb. 27, 2023 | Sep. 13, 2022 | Apr. 20, 2020 |
Scenario Forecast | 5.125% Senior Notes | |||
Subsequent Event [Line Items] | |||
Interest rate | 5.125% | ||
Debt instrument, maturity date | Sep. 14, 2022 | ||
Aggregate outstanding principal threshold amount if exceeds triggers maturity | $ 50,000,000 | ||
Scenario Forecast | 4.875% Senior Notes | |||
Subsequent Event [Line Items] | |||
Interest rate | 4.875% | ||
Debt instrument, maturity date | Feb. 28, 2023 | ||
Aggregate outstanding principal threshold amount if exceeds triggers maturity | $ 50,000,000 | ||
Subsequent Event | 8.750% Secured Notes | |||
Subsequent Event [Line Items] | |||
Aggregate principal amount of add-on to Senior Notes | $ 250,000,000 | ||
Interest rate | 8.75% | ||
Debt instrument, maturity date | May 1, 2025 | ||
Price to repurchase the senior subordinated notes as a percentage of the aggregate principal amount outstanding plus accrued and unpaid interest in case of change of control | 101.00% |