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CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CINEMARK HOLDINGS, INC.

PARENT COMPANY BALANCE SHEETS

(in millions, except share data)


		December 31,				December 31,
		2021				2022
Assets
Cash and cash equivalents		$	264.7			$	247.2
Prepaid assets and other			—				0.6
Investment in subsidiaries			524.6				372.5
Total assets		$	789.3			$	620.3
Liabilities and equity
Liabilities
Accrued other current liabilities, including accounts payable to subsidiaries		$	43.9			$	61.5
Long-term debt			447.6				451.0
Other long-term liabilities			(25.1	)			(2.4	)
Total liabilities			466.4				510.1
Commitments and contingencies (see Note 6)
Equity
Common stock, $0.001 par value: 300,000,000 shares authorized, 125,100,993 shares issued and 119,750,882 shares outstanding at December 31, 2021 and 126,082,187 shares issued and 120,403,833 shares outstanding at December 31, 2022			0.1				0.1
Additional paid-in-capital			1,197.8				1,219.3
Treasury stock, 5,350,111 and 5,678,354 shares, at cost, at December 31, 2021 and December 31, 2022, respectively			(91.1	)			(95.4	)
Accumulated deficit			(389.4	)			(660.6	)
Accumulated other comprehensive loss			(394.5	)			(353.2	)
Total equity			322.9				110.2
Total liabilities and equity		$	789.3			$	620.3

The accompanying notes are an integral part of the condensed financial information of Cinemark Holdings Inc.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF LOSS

(in millions)


		Year Ended December 31,
		2020				2021				2022
Revenue		$	—			$	—			$	—
Cost of operations			2.2				2.6				2.9
Operating loss			(2.2	)			(2.6	)			(2.9	)
Interest expense			(14.2	)			(24.1	)			(24.1	)
Other income			0.1				0.1				3.8
Loss before income taxes and equity in loss of subsidiaries			(16.3	)			(26.6	)			(23.2	)
Income taxes			5.7				5.7				(16.1	)
Equity in loss of subsidiaries, net of taxes			(606.2	)			(401.9	)			(231.9	)
Net loss		$	(616.8	)		$	(422.8	)		$	(271.2	)

The accompanying notes are an integral part of the condensed financial information of Cinemark Holdings, Inc.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF COMPREHENSIVE LOSS

(in millions)


		Year Ended December 31,
		2020				2021				2022
Net loss		$	(616.8	)		$	(422.8	)		$	(271.2	)
Other comprehensive income (loss), net of tax
Unrealized gain (loss) due to fair value adjustments on interest rate swap agreements, net of taxes of $3.5, $(0.7) and $(2.8), net of settlements			(14.3	)			18.5				32.2
Foreign currency translation adjustments			(47.6	)			(18.8	)			4.6
Total other comprehensive (loss) income, net of tax			(61.9	)			(0.3	)			36.8
Comprehensive loss attributable to Cinemark Holdings, Inc.		$	(678.7	)		$	(423.1	)		$	(234.4	)

The accompanying notes are an integral part of the condensed financial information of Cinemark Holdings Inc.

CINEMARK HOLDINGS, INC.

PARENT COMPANY STATEMENTS OF CASH FLOWS

(in millions)


		Year Ended December 31,
		2020				2021				2022
Operating Activities
Net loss		$	(616.8	)		$	(422.8	)		$	(271.2	)
Adjustments to reconcile net loss to cash provided by (used for) operating activities:
Share based awards compensation expense			0.9				0.9				1.0
Amortization of debt issuance costs			0.9				3.5				3.4
Equity in loss of subsidiaries			606.2				401.9				231.9
Changes in other assets and liabilities			19.0				10.5				21.7
Net cash provided by (used for) operating activities			10.2				(6.0	)			(13.2	)
Investing Activities
Dividends received from subsidiaries			42.0			—					—
Contributions to subsidiaries		—					(120.0	)			—
Net cash provided by (used for) investing activities			42.0				(120.0	)			—
Financing Activities
Dividends paid to stockholders			(42.3	)		—					—
Proceeds from convertible notes issued			460.0			—					—
Payment of debt issuance costs			(17.1	)		—					—
Purchase of convertible note hedges			(142.1	)		—					—
Proceeds from warrants issued			89.4			—					—
Restricted stock withholdings for payroll taxes			(5.4	)			(4.1	)			(4.3	)
Net cash provided by (used for) financing activities			342.5				(4.1	)			(4.3	)
Increase (decrease) in cash and cash equivalents			394.7				(130.1	)			(17.5	)
Cash and cash equivalents:
Beginning of period			0.1				394.8				264.7
End of period		$	394.8			$	264.7			$	247.2

The accompanying notes are an integral part of the condensed financial information of Cinemark Holdings, Inc.

CINEMARK HOLDINGS, INC.

NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

(in millions, except share and per share data)

1.

BASIS OF PRESENTATION

Cinemark Holdings, Inc. conducts substantially all of its operations through its subsidiaries. These statements should be read in conjunction with Cinemark Holdings Inc. and subsidiaries' consolidated financial statements and notes included elsewhere in this annual report on Form 10-K. There are significant restrictions over Cinemark Holdings, Inc.’s ability to obtain funds from its subsidiaries through dividends, loans or advances as contained in CUSA’s senior secured credit facility and the indentures to each of the 5.25% Senior Notes, the 5.875% Senior Notes and the 8.75% Secured Notes (collectively referred to herein as the “Notes”). These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of Cinemark Holdings, Inc.’s subsidiaries under each of the debt agreements previously noted exceeds 25 percent of the consolidated net assets of Cinemark Holdings, Inc. As of December 31, 2022, the restricted net assets totaled approximately $332.0 million and $226.2 million under the senior secured credit facility and the Notes, respectively. See Note 14 to the consolidated financial statements included elsewhere in this annual report on Form 10-K.

2.

DIVIDEND PAYMENTS

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


						Amount per Share of				Total
Declaration Date		Record Date		Payable Date		Common Stock				Dividends (1)
2/21/2020		3/6/2020		3/20/2020		$	0.36			$	42.6
Total for year ended December 31, 2020						$	0.36			$	42.6

(1)

Of the dividends recorded during 2020, $0.3 were related to outstanding restricted stock units and are not paid until such units vest.

3.

DIVIDENDS AND DISTRIBUTIONS WITH SUBSIDIARIES

During the year ended December 31, 2020, Holdings received cash dividends of $42.0 million from its subsidiary, CUSA. During the year ended December 31, 2021, Holdings paid a distribution of $120.0 million to its subsidiary, CUSA.

4.

LONG-TERM DEBT

On August 21, 2020, Holdings issued $460.0 million aggregate principal amount of 4.50% Convertible Senior Notes, which will mature on August 15, 2025. Additionally, certain of Holdings’ subsidiaries have direct outstanding debt obligations. For a discussion of the debt obligations of Holdings, see Note 14 to the consolidated financial statements included elsewhere in this annual report on Form 10-K.

5.

CAPITAL STOCK

Holdings’ capital stock along with its long-term incentive plan and related activity are discussed in Note 18 of the consolidated financial statements included elsewhere in this annual report on Form 10-K.

6.

COMMITMENTS AND CONTINGENCIES

Holdings has no direct commitments and contingencies, but its subsidiaries do. See Note 21 of the consolidated financial statements included elsewhere in this annual report on Form 10-K.