Condensed Consolidating Financial Information of Subsidiary Guarantors | 6 Months Ended |
Jun. 30, 2014 |
Condensed Consolidating Financial Information of Subsidiary Guarantors | ' |
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19. Condensed Consolidating Financial Information of Subsidiary Guarantors |
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As of June 30, 2014, the Company had outstanding $400,000 aggregate principal amount of 5.125% senior notes due 2022, or the 5.125% Senior Notes, $530,000 aggregate principal amount of 4.875% senior notes due 2023, or the 4.875% Senior Notes, and $200,000 aggregate principal amount of 7.375% senior subordinated notes due 2021, or the Senior Subordinated Notes (collectively the “Notes”). These Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by the following wholly-owned subsidiaries of Cinemark USA, Inc.: |
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Sunnymead Cinema Corp., Cinemark Properties, Inc., Greeley Holdings, Inc., Inc., Cinemark Partners I, Inc., CNMK Investments, Inc., CNMK Texas Properties, LLC, Cinemark Concessions LLC, Cinemark AB, Inc., Century Theatres, Inc., Marin Theatre Management, LLC, Century Theatres NG, LLC, Cinearts LLC, Cinearts Sacramento, LLC, Corte Madera Theatres, LLC, Novato Theatres, LLC, San Rafael Theatres, LLC, Northbay Theatres, LLC, Century Theatres Summit Sierra, LLC and Century Theatres Seattle, LLC. |
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The following supplemental condensed consolidating financial information presents: |
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| a. | Condensed consolidating balance sheet information as of December 31, 2013 and June 30, 2014, condensed consolidating statements of income information for the three and six months ended June 30, 2013 and 2014, condensed consolidating statements of comprehensive income (loss) information for the three and six months ended June 30, 2013 and 2014 and condensed consolidating statements of cash flows information for the six months ended June 30, 2013 and 2014. | | | | | | | | | | | | | | | | | | |
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| b. | Cinemark USA, Inc. (the “Parent” and “Issuer”), combined Guarantor Subsidiaries and combined Non-Guarantor Subsidiaries with their investments in subsidiaries accounted for using the equity method of accounting and therefore, the Parent column reflects the equity income of its Guarantor Subsidiaries and Non-Guarantor Subsidiaries, which are also separately reflected in the stand-alone Guarantor Subsidiaries and Non-Guarantor Subsidiaries column. Additionally, the Guarantor Subsidiaries column reflects the equity income (loss) of its Non-Guarantor Subsidiaries, which are also separately reflected in the stand-alone Non-Guarantor Subsidiaries column. | | | | | | | | | | | | | | | | | | |
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| c. | Elimination entries necessary to consolidate the Parent and all of its Subsidiaries. | | | | | | | | | | | | | | | | | | |
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CINEMARK USA, INC. AND SUBSIDIARIES |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
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CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION |
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31-Dec-13 |
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| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Assets | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 62,065 | | | $ | 175,758 | | | $ | 362,071 | | | $ | — | | | $ | 599,894 | |
Other current assets | | | 129,514 | | | | 27,819 | | | | 85,315 | | | | (112,978 | ) | | | 129,670 | |
Accounts receivable from subsidiaries | | | 481,730 | | | | — | | | | — | | | | (481,730 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 673,309 | | | | 203,577 | | | | 447,386 | | | | (594,708 | ) | | | 729,564 | |
Theatre properties and equipment - net | | | 448,732 | | | | 594,720 | | | | 383,738 | | | | — | | | | 1,427,190 | |
Investment in subsidiaries | | | 1,124,212 | | | | 394,250 | | | | — | | | | (1,518,462 | ) | | | — | |
Other assets | | | 1,411,542 | | | | 138,199 | | | | 437,488 | | | | 145 | | | | 1,987,374 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 3,657,795 | | | $ | 1,330,746 | | | $ | 1,268,612 | | | $ | (2,113,025 | ) | | $ | 4,144,128 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and equity | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | | $ | 7,000 | | | $ | — | | | $ | 2,856 | | | $ | — | | | $ | 9,856 | |
Current portion of capital lease obligations | | | 4,056 | | | | 8,000 | | | | 1,791 | | | | — | | | | 13,847 | |
Accounts payable and accrued expenses | | | 250,015 | | | | 93,045 | | | | 135,124 | | | | (107,588 | ) | | | 370,596 | |
Accounts payable to parent or subsidiaries | | | — | | | | 328,297 | | | | 153,433 | | | | (481,730 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 261,071 | | | | 429,342 | | | | 293,204 | | | | (589,318 | ) | | | 394,299 | |
Long-term liabilities | | | | | | | | | | | | | | | | | | | | |
Long-term debt, less current portion | | | 1,816,000 | | | | — | | | | 6,944 | | | | — | | | | 1,822,944 | |
Capital lease obligations, less current portion | | | 93,231 | | | | 84,540 | | | | 24,738 | | | | — | | | | 202,509 | |
Other long-term liabilities and deferrals | | | 392,207 | | | | 85,155 | | | | 147,978 | | | | (5,245 | ) | | | 620,095 | |
| | | | | | | | | | | | | | | | | | | | |
Total long-term liabilities | | | 2,301,438 | | | | 169,695 | | | | 179,660 | | | | (5,245 | ) | | | 2,645,548 | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | |
Equity | | | | | | | | | | | | | | | | | | | | |
Cinemark USA, Inc.’s stockholder’s equity: | | | | | | | | | | | | | | | | | | | | |
Common stock | | | 49,543 | | | | 457,368 | | | | 10,219 | | | | (467,587 | ) | | | 49,543 | |
Other stockholder’s equity | | | 1,045,743 | | | | 274,341 | | | | 776,534 | | | | (1,050,875 | ) | | | 1,045,743 | |
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Total Cinemark USA, Inc. stockholder’s equity | | | 1,095,286 | | | | 731,709 | | | | 786,753 | | | | (1,518,462 | ) | | | 1,095,286 | |
Noncontrolling interests | | | — | | | | — | | | | 8,995 | | | | — | | | | 8,995 | |
| | | | | | | | | | | | | | | | | | | | |
Total equity | | | 1,095,286 | | | | 731,709 | | | | 795,748 | | | | (1,518,462 | ) | | | 1,104,281 | |
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Total liabilities and equity | | $ | 3,657,795 | | | $ | 1,330,746 | | | $ | 1,268,612 | | | $ | (2,113,025 | ) | | $ | 4,144,128 | |
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CONDENSED CONSOLIDATING BALANCE SHEET INFORMATION |
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June 30, 2014 |
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| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Assets | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 69,348 | | | $ | 106,502 | | | $ | 402,187 | | | $ | — | | | $ | 578,037 | |
Other current assets | | | 96,371 | | | | 17,516 | | | | 80,047 | | | | (68,027 | ) | | | 125,907 | |
Accounts receivable from parent and subsidiaries | | | 372,628 | | | | — | | | | — | | | | (360,819 | ) | | | 11,809 | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 538,347 | | | | 124,018 | | | | 482,234 | | | | (428,846 | ) | | | 715,753 | |
Theatre properties and equipment - net | | | 457,202 | | | | 579,064 | | | | 409,360 | | | | — | | | | 1,445,626 | |
Investment in subsidiaries | | | 1,242,730 | | | | 431,016 | | | | — | | | | (1,673,746 | ) | | | — | |
Other assets | | | 1,419,921 | | | | 137,236 | | | | 405,978 | | | | 3,663 | | | | 1,966,798 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 3,658,200 | | | $ | 1,271,334 | | | $ | 1,297,572 | | | $ | (2,098,929 | ) | | $ | 4,128,177 | |
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Liabilities and equity | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt | | $ | 7,000 | | | $ | — | | | $ | 1,389 | | | $ | — | | | $ | 8,389 | |
Current portion of capital lease obligations | | | 4,445 | | | | 8,550 | | | | 2,221 | | | | — | | | | 15,216 | |
Accounts payable and accrued expenses | | | 203,840 | | | | 75,777 | | | | 100,930 | | | | (62,828 | ) | | | 317,719 | |
Accounts payable to parent or subsidiaries | | | — | | | | 194,991 | | | | 165,828 | | | | (360,819 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 215,285 | | | | 279,318 | | | | 270,368 | | | | (423,647 | ) | | | 341,324 | |
Long-term liabilities | | | | | | | | | | | | | | | | | | | | |
Long-term debt, less current portion | | | 1,812,500 | | | | — | | | | 6,944 | | | | — | | | | 1,819,444 | |
Capital lease obligations, less current portion | | | 90,949 | | | | 80,128 | | | | 28,998 | | | | — | | | | 200,075 | |
Other long-term liabilities and deferrals | | | 379,949 | | | | 83,428 | | | | 136,539 | | | | (1,537 | ) | | | 598,379 | |
| | | | | | | | | | | | | | | | | | | | |
Total long-term liabilities | | | 2,283,398 | | | | 163,556 | | | | 172,481 | | | | (1,537 | ) | | | 2,617,898 | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | |
Equity | | | | | | | | | | | | | | | | | | | | |
Cinemark USA, Inc.’s stockholder’s equity: | | | | | | | | | | | | | | | | | | | | |
Common stock | | | 49,543 | | | | 457,368 | | | | 10,219 | | | | (467,587 | ) | | | 49,543 | |
Other stockholder’s equity | | | 1,109,974 | | | | 371,092 | | | | 835,066 | | | | (1,206,158 | ) | | | 1,109,974 | |
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Total Cinemark USA, Inc. stockholder’s equity | | | 1,159,517 | | | | 828,460 | | | | 845,285 | | | | (1,673,745 | ) | | | 1,159,517 | |
Noncontrolling interests | | | — | | | | — | | | | 9,438 | | | | — | | | | 9,438 | |
| | | | | | | | | | | | | | | | | | | | |
Total equity | | | 1,159,517 | | | | 828,460 | | | | 854,723 | | | | (1,673,745 | ) | | | 1,168,955 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 3,658,200 | | | $ | 1,271,334 | | | $ | 1,297,572 | | | $ | (2,098,929 | ) | | $ | 4,128,177 | |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION |
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THREE MONTHS ENDED JUNE 30, 2013 |
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| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Revenues | | $ | 211,962 | | | $ | 304,453 | | | $ | 219,285 | | | $ | (10,078 | ) | | $ | 725,622 | |
Cost of operations | | | | | | | | | | | | | | | | | | | | |
Theatre operating expenses | | | 165,094 | | | | 202,538 | | | | 156,471 | | | | (10,078 | ) | | | 514,025 | |
General and administrative expenses | | | 6,575 | | | | 17,926 | | | | 15,407 | | | | — | | | | 39,908 | |
Depreciation and amortization | | | 10,812 | | | | 15,817 | | | | 12,105 | | | | — | | | | 38,734 | |
Impairment of long-lived assets | | | 574 | | | | 77 | | | | 450 | | | | — | | | | 1,101 | |
(Gain) loss on sale of assets and other | | | (3,606 | ) | | | 804 | | | | 1 | | | | — | | | | (2,801 | ) |
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Total cost of operations | | | 179,449 | | | | 237,162 | | | | 184,434 | | | | (10,078 | ) | | | 590,967 | |
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Operating income | | | 32,513 | | | | 67,291 | | | | 34,851 | | | | — | | | | 134,655 | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (31,017 | ) | | | (2,504 | ) | | | (937 | ) | | | — | | | | (34,458 | ) |
Loss on early retirement of debt | | | (72,302 | ) | | | — | | | | — | | | | — | | | | (72,302 | ) |
Distributions from NCM | | | — | | | | — | | | | 1,693 | | | | — | | | | 1,693 | |
Equity in income of affiliates | | | 65,923 | | | | 13,288 | | | | 1,685 | | | | (79,211 | ) | | | 1,685 | |
Other income (expense) | | | 24 | | | | 2 | | | | (1,102 | ) | | | — | | | | (1,076 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (37,372 | ) | | | 10,786 | | | | 1,339 | | | | (79,211 | ) | | | (104,458 | ) |
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Income (loss) before income taxes | | | (4,859 | ) | | | 78,077 | | | | 36,190 | | | | (79,211 | ) | | | 30,197 | |
Income taxes | | | (25,522 | ) | | | 24,415 | | | | 10,069 | | | | — | | | | 8,962 | |
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Net income | | | 20,663 | | | | 53,662 | | | | 26,121 | | | | (79,211 | ) | | | 21,235 | |
Less: Net income attributable to noncontrolling interests | | | — | | | | — | | | | 572 | | | | — | | | | 572 | |
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Net income attributable to Cinemark USA, Inc. | | $ | 20,663 | | | $ | 53,662 | | | $ | 25,549 | | | $ | (79,211 | ) | | $ | 20,663 | |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION |
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THREE MONTHS ENDED JUNE 30, 2014 |
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| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Revenues | | $ | 227,655 | | | $ | 299,984 | | | $ | 203,803 | | | $ | (13,579 | ) | | $ | 717,863 | |
Cost of operations | | | | | | | | | | | | | | | | | | | | |
Theatre operating expenses | | | 184,745 | | | | 199,622 | | | | 142,905 | | | | (13,579 | ) | | | 513,693 | |
General and administrative expenses | | | 5,298 | | | | 19,108 | | | | 14,346 | | | | — | | | | 38,752 | |
Depreciation and amortization | | | 12,258 | | | | 16,851 | | | | 14,772 | | | | — | | | | 43,881 | |
Impairment of long-lived assets | | | 360 | | | | 70 | | | | — | | | | — | | | | 430 | |
Loss on sale of assets and other | | | 1,728 | | | | 767 | | | | 781 | | | | — | | | | 3,276 | |
| | | | | | | | | | | | | | | | | | | | |
Total cost of operations | | | 204,389 | | | | 236,418 | | | | 172,804 | | | | (13,579 | ) | | | 600,032 | |
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Operating income | | | 23,266 | | | | 63,566 | | | | 30,999 | | | | — | | | | 117,831 | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (25,053 | ) | | | (2,308 | ) | | | (925 | ) | | | — | | | | (28,286 | ) |
Distributions from NCM | | | — | | | | — | | | | 1,180 | | | | — | | | | 1,180 | |
Equity in income of affiliates | | | 75,552 | | | | 23,607 | | | | 3,603 | | | | (99,162 | ) | | | 3,600 | |
Other income | | | 6 | | | | 2 | | | | 2,847 | | | | — | | | | 2,855 | |
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Total other income | | | 50,505 | | | | 21,301 | | | | 6,705 | | | | (99,162 | ) | | | (20,651 | ) |
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Income before income taxes | | | 73,771 | | | | 84,867 | | | | 37,704 | | | | (99,162 | ) | | | 97,180 | |
Income taxes | | | 1,440 | | | | 23,728 | | | | (722 | ) | | | — | | | | 24,446 | |
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Net income | | | 72,331 | | | | 61,139 | | | | 38,426 | | | | (99,162 | ) | | | 72,734 | |
Less: Net income attributable to noncontrolling interests | | | — | | | | — | | | | 403 | | | | — | | | | 403 | |
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Net income attributable to Cinemark USA, Inc. | | $ | 72,331 | | | $ | 61,139 | | | $ | 38,023 | | | $ | (99,162 | ) | | $ | 72,331 | |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION |
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SIX MONTHS ENDED JUNE 30, 2013 |
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| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Revenues | | $ | 354,743 | | | $ | 528,657 | | | $ | 408,899 | | | $ | (18,904 | ) | | $ | 1,273,395 | |
Cost of operations | | | | | | | | | | | | | | | | | | | | |
Theatre operating expenses | | | 282,637 | | | | 356,957 | | | | 298,166 | | | | (18,904 | ) | | | 918,856 | |
General and administrative expenses | | | 11,941 | | | | 35,932 | | | | 29,247 | | | | — | | | | 77,120 | |
Depreciation and amortization | | | 19,544 | | | | 31,253 | | | | 26,969 | | | | — | | | | 77,766 | |
Impairment of long-lived assets | | | 608 | | | | 162 | | | | 1,175 | | | | — | | | | 1,945 | |
(Gain) loss on sale of assets and other | | | (3,391 | ) | | | 662 | | | | (414 | ) | | | — | | | | (3,143 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total cost of operations | | | 311,339 | | | | 424,966 | | | | 355,143 | | | | (18,904 | ) | | | 1,072,544 | |
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Operating income | | | 43,404 | | | | 103,691 | | | | 53,756 | | | | — | | | | 200,851 | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (59,470 | ) | | | (4,982 | ) | | | (2,612 | ) | | | — | | | | (67,064 | ) |
Loss on early retirement of debt | | | (72,302 | ) | | | — | | | | — | | | | — | | | | (72,302 | ) |
Distributions from NCM | | | 125 | | | | — | | | | 7,671 | | | | — | | | | 7,796 | |
Equity in income of affiliates | | | 111,685 | | | | 32,649 | | | | 4,106 | | | | (144,334 | ) | | | 4,106 | |
Other income | | | 42 | | | | 5 | | | | 1,010 | | | | — | | | | 1,057 | |
| | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (19,920 | ) | | | 27,672 | | | | 10,175 | | | | (144,334 | ) | | | (126,407 | ) |
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 23,484 | | | | 131,363 | | | | 63,931 | | | | (144,334 | ) | | | 74,444 | |
Income taxes | | | (30,127 | ) | | | 37,625 | | | | 12,295 | | | | — | | | | 19,793 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | | 53,611 | | | | 93,738 | | | | 51,636 | | | | (144,334 | ) | | | 54,651 | |
Less: Net income attributable to noncontrolling interests | | | — | | | | — | | | | 1,040 | | | | — | | | | 1,040 | |
| | | | | | | | | | | | | | | | | | | | |
Net income attributable to Cinemark USA, Inc. | | $ | 53,611 | | | $ | 93,738 | | | $ | 50,596 | | | $ | (144,334 | ) | | $ | 53,611 | |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME INFORMATION |
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SIX MONTHS ENDED JUNE 30, 2014 |
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| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Revenues | | $ | 423,910 | | | $ | 549,820 | | | | 369,264 | | | | (22,851 | ) | | $ | 1,320,143 | |
Cost of operations | | | | | | | | | | | | | | | | | | | | |
Theatre operating expenses | | | 349,327 | | | | 373,540 | | | | 263,027 | | | | (22,851 | ) | | | 963,043 | |
General and administrative expenses | | | 10,643 | | | | 40,188 | | | | 26,661 | | | | — | | | | 77,492 | |
Depreciation and amortization | | | 24,592 | | | | 33,421 | | | | 28,364 | | | | — | | | | 86,377 | |
Impairment of long-lived assets | | | 689 | | | | 95 | | | | — | | | | — | | | | 784 | |
Loss on sale of assets and other | | | 3,622 | | | | 1,543 | | | | 964 | | | | — | | | | 6,129 | |
| | | | | | | | | | | | | | | | | | | | |
Total cost of operations | | | 388,873 | | | | 448,787 | | | | 319,016 | | | | (22,851 | ) | | | 1,133,825 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income | | | 35,037 | | | | 101,033 | | | | 50,248 | | | | — | | | | 186,318 | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (50,304 | ) | | | (4,668 | ) | | | (1,794 | ) | | | — | | | | (56,766 | ) |
Distributions from NCM | | | 2,207 | | | | — | | | | 8,470 | | | | — | | | | 10,677 | |
Equity in income of affiliates | | | 119,906 | | | | 37,898 | | | | 7,223 | | | | (157,807 | ) | | | 7,220 | |
Other income (expense) | | | 25 | | | | (1 | ) | | | 6,897 | | | | — | | | | 6,921 | |
| | | | | | | | | | | | | | | | | | | | |
Total other income | | | 71,834 | | | | 33,229 | | | | 20,796 | | | | (157,807 | ) | | | (31,948 | ) |
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 106,871 | | | | 134,262 | | | | 71,044 | | | | (157,807 | ) | | | 154,370 | |
Income taxes | | | (1,294 | ) | | | 35,684 | | | | 11,159 | | | | — | | | | 45,549 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | | 108,165 | | | | 98,578 | | | | 59,885 | | | | (157,807 | ) | | | 108,821 | |
Less: Net income attributable to noncontrolling interests | | | — | | | | — | | | | 656 | | | | — | | | | 656 | |
| | | | | | | | | | | | | | | | | | | | |
Net income attributable to Cinemark USA, Inc. | | $ | 108,165 | | | $ | 98,578 | | | $ | 59,229 | | | $ | (157,807 | ) | | $ | 108,165 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) INFORMATION |
|
THREE MONTHS ENDED JUNE 30, 2013 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Net income | | $ | 20,663 | | | $ | 53,662 | | | $ | 26,121 | | | $ | (79,211 | ) | | $ | 21,235 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes of $963 | | | 1,590 | | | | — | | | | — | | | | — | | | | 1,590 | |
Unrealized gain due to fair value adjustments on available-for-sale securities, net of taxes of $415 | | | 685 | | | | — | | | | — | | | | — | | | | 685 | |
Other comprehensive income in equity method investments | | | 1,678 | | | | — | | | | 1,678 | | | | (1,678 | ) | | | 1,678 | |
Foreign currency translation adjustments | | | (40,668 | ) | | | — | | | | (40,827 | ) | | | 40,668 | | | | (40,827 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total other comprehensive loss, net of tax | | | (36,715 | ) | | | — | | | | (39,149 | ) | | | 38,990 | | | | (36,874 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total comprehensive income (loss), net of tax | | $ | (16,052 | ) | | $ | 53,662 | | | $ | (13,028 | ) | | $ | (40,221 | ) | | $ | (15,639 | ) |
Comprehensive income attributable to noncontrolling interests | | | — | | | | — | | | | (413 | ) | | | — | | | | (413 | ) |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) attributable to Cinemark USA, Inc. | | $ | (16,052 | ) | | $ | 53,662 | | | $ | (13,441 | ) | | $ | (40,221 | ) | | $ | (16,052 | ) |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION |
|
THREE MONTHS ENDED JUNE 30, 2014 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Net income | | $ | 72,331 | | | $ | 61,139 | | | $ | 38,426 | | | $ | (99,162 | ) | | $ | 72,734 | |
Other comprehensive income, net of tax | | | | | | | | | | | | | | | | | | | | |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes of $391 | | | 661 | | | | — | | | | — | | | | — | | | | 661 | |
Unrealized gain due to fair value adjustments on available-for-sale securities, net of taxes of $724 | | | 1,221 | | | | — | | | | — | | | | — | | | | 1,221 | |
Other comprehensive income of equity method investments | | | 134 | | | | — | | | | 123 | | | | (123 | ) | | | 134 | |
Foreign currency translation adjustments | | | 8,344 | | | | — | | | | 8,346 | | | | (8,344 | ) | | | 8,346 | |
| | | | | | | | | | | | | | | | | | | | |
Total other comprehensive income, net of tax | | | 10,360 | | | | — | | | | 8,469 | | | | (8,467 | ) | | | 10,362 | |
| | | | | | | | | | | | | | | | | | | | |
Total comprehensive income, net of tax | | $ | 82,691 | | | $ | 61,139 | | | $ | 46,895 | | | $ | (107,629 | ) | | $ | 83,096 | |
Comprehensive income attributable to noncontrolling interests | | | — | | | | — | | | | (405 | ) | | | — | | | | (405 | ) |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Cinemark USA, Inc. | | $ | 82,691 | | | $ | 61,139 | | | $ | 46,490 | | | $ | (107,629 | ) | | $ | 82,691 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION |
|
SIX MONTHS ENDED JUNE 30, 2013 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Net income | | $ | 53,611 | | | $ | 93,738 | | | $ | 51,636 | | | $ | (144,334 | ) | | $ | 54,651 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes of $1,391 | | | 2,366 | | | | — | | | | — | | | | — | | | | 2,366 | |
Unrealized gain due to fair value adjustments on available-for-sale securities, net of taxes of $1,249 | | | 2,041 | | | | — | | | | — | | | | — | | | | 2,041 | |
Other comprehensive income in equity method investments | | | 1,678 | | | | — | | | | 1,678 | | | | (1,678 | ) | | | 1,678 | |
Foreign currency translation adjustments | | | (39,126 | ) | | | — | | | | (39,241 | ) | | | 39,126 | | | | (39,241 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total other comprehensive loss, net of tax | | | (33,041 | ) | | | — | | | | (37,563 | ) | | | 37,448 | | | | (33,156 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total comprehensive income, net of tax | | $ | 20,570 | | | $ | 93,738 | | | $ | 14,073 | | | $ | (106,886 | ) | | $ | 21,495 | |
Comprehensive income attributable to noncontrolling interests | | | — | | | | — | | | | (925 | ) | | | — | | | | (925 | ) |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Cinemark USA, Inc. | | $ | 20,570 | | | $ | 93,738 | | | $ | 13,148 | | | $ | (106,886 | ) | | $ | 20,570 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME INFORMATION |
|
SIX MONTHS ENDED JUNE 30, 2014 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Net income | | $ | 108,165 | | | $ | 98,578 | | | $ | 59,885 | | | $ | (157,807 | ) | | $ | 108,821 | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | | | | | | | | | | |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of settlements, net of taxes of $759 | | | 1,158 | | | | — | | | | — | | | | — | | | | 1,158 | |
Unrealized gain due to fair value adjustments on available-for-sale securities, net of taxes of $1,916 | | | 3,244 | | | | — | | | | — | | | | — | | | | 3,244 | |
Other comprehensive income of equity method investments | | | 396 | | | | — | | | | 385 | | | | (385 | ) | | | 396 | |
Foreign currency translation adjustments | | | (851 | ) | | | — | | | | (843 | ) | | | 851 | | | | (843 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | | | 3,947 | | | | — | | | | (458 | ) | | | 466 | | | | 3,955 | |
| | | | | | | | | | | | | | | | | | | | |
Total comprehensive income, net of tax | | $ | 112,112 | | | $ | 98,578 | | | $ | 59,427 | | | $ | (157,341 | ) | | $ | 112,776 | |
Comprehensive income attributable to noncontrolling interests | | | — | | | | — | | | | (664 | ) | | | — | | | | (664 | ) |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Cinemark USA, Inc. | | $ | 112,112 | | | $ | 98,578 | | | $ | 58,763 | | | $ | (157,341 | ) | | $ | 112,112 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION |
|
SIX MONTHS ENDED JUNE 30, 2013 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Operating activities | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 53,611 | | | $ | 93,738 | | | $ | 51,636 | | | $ | (144,334 | ) | | $ | 54,651 | |
Adjustments to reconcile net income to cash provided by operating activities and other | | | (128,888 | ) | | | 5,225 | | | | 27,290 | | | | 144,334 | | | | 47,961 | |
Changes in assets and liabilities and other | | | 89,564 | | | | (68,707 | ) | | | (9,860 | ) | | | — | | | | 10,997 | |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 14,287 | | | | 30,256 | | | | 69,066 | | | | — | | | | 113,609 | |
Investing activities | | | | | | | | | | | | | | | | | | | | |
Additions to theatre properties and equipment | | | (4,251 | ) | | | (31,258 | ) | | | (54,879 | ) | | | — | | | | (90,388 | ) |
Proceeds from sale of theatre properties and equipment | | | 10,168 | | | | 8,273 | | | | 37 | | | | — | | | | 18,478 | |
Acquisition of theatres in U.S. | | | (241,253 | ) | | | (17,994 | ) | | | — | | | | — | | | | (259,247 | ) |
Dividends received from subsidiaries | | | 1,713 | | | | 2 | | | | — | | | | (1,715 | ) | | | — | |
Other | | | — | | | | — | | | | (3,264 | ) | | | — | | | | (3,264 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash used for investing activities | | | (233,623 | ) | | | (40,977 | ) | | | (58,106 | ) | | | (1,715 | ) | | | (334,421 | ) |
Financing activities | | | | | | | | | | | | | | | | | | | | |
Dividends paid to parent | | | (48,000 | ) | | | — | | | | (1,715 | ) | | | 1,715 | | | | (48,000 | ) |
Issuance of senior notes | | | 530,000 | | | | — | | | | — | | | | — | | | | 530,000 | |
Redemption of senior notes | | | (461,946 | ) | | | — | | | | — | | | | — | | | | (461,946 | ) |
Repayments of long-term debt | | | (3,500 | ) | | | — | | | | (1,236 | ) | | | — | | | | (4,736 | ) |
Payment of debt issue costs | | | (9,212 | ) | | | — | | | | — | | | | — | | | | (9,212 | ) |
Payments on capital leases | | | (980 | ) | | | (3,299 | ) | | | (1,095 | ) | | | — | | | | (5,374 | ) |
Other | | | 3,489 | | | | (3,464 | ) | | | (184 | ) | | | — | | | | (159 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) financing activities | | | 9,851 | | | | (6,763 | ) | | | (4,230 | ) | | | 1,715 | | | | 573 | |
Effect of exchange rate changes on cash and cash equivalents | | | — | | | | — | | | | (6,519 | ) | | | — | | | | (6,519 | ) |
| | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in cash and cash equivalents | | | (209,485 | ) | | | (17,484 | ) | | | 211 | | | | — | | | | (226,758 | ) |
Cash and cash equivalents: | | | | | | | | | | | | | | | | | | | | |
Beginning of year | | | 305,627 | | | | 193,863 | | | | 242,605 | | | | — | | | | 742,095 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 96,142 | | | $ | 176,379 | | | $ | 242,816 | | | $ | — | | | $ | 515,337 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION |
|
SIX MONTHS ENDED JUNE 30, 2014 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Subsidiary | | | Subsidiary | | | | | | | |
| | Company | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
| | (In thousands) | |
Operating activities | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 108,165 | | | $ | 98,578 | | | $ | 59,885 | | | $ | (157,807 | ) | | $ | 108,821 | |
Adjustments to reconcile net income to cash provided by (used for) operating activities | | | (109,780 | ) | | | 2,499 | | | | 26,475 | | | | 157,807 | | | | 77,001 | |
Changes in assets and liabilities and other | | | 107,181 | | | | (136,760 | ) | | | 3,275 | | | | — | | | | (26,304 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) operating activities | | | 105,566 | | | | (35,683 | ) | | | 89,635 | | | | — | | | | 159,518 | |
Investing activities | | | | | | | | | | | | | | | | | | | | |
Additions to theatre properties and equipment | | | (40,591 | ) | | | (19,960 | ) | | | (42,012 | ) | | | — | | | | (102,563 | ) |
Proceeds from sale of theatre properties and equipment | | | 1,032 | | | | 26 | | | | 489 | | | | — | | | | 1,547 | |
Dividends received from subsidiaries | | | 925 | | | | — | | | | — | | | | (925 | ) | | | — | |
Investment in joint ventures and other | | | — | | | | — | | | | (1,896 | ) | | | — | | | | (1,896 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash used for investing activities | | | (38,634 | ) | | | (19,934 | ) | | | (43,419 | ) | | | (925 | ) | | | (102,912 | ) |
Financing activities | | | | | | | | | | | | | | | | | | | | |
Dividends paid to parent | | | (57,500 | ) | | | — | | | | (925 | ) | | | 925 | | | | (57,500 | ) |
Repayments of long-term debt | | | (3,500 | ) | | | — | | | | (1,452 | ) | | | — | | | | (4,952 | ) |
Payments on capital leases | | | (1,989 | ) | | | (3,863 | ) | | | (975 | ) | | | — | | | | (6,827 | ) |
Other | | | 3,340 | | | | (9,776 | ) | | | — | | | | — | | | | (6,436 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash used for financing activities | | | (59,649 | ) | | | (13,639 | ) | | | (3,352 | ) | | | 925 | | | | (75,715 | ) |
Effect of exchange rate changes on cash and cash equivalents | | | — | | | | — | | | | (2,748 | ) | | | — | | | | (2,748 | ) |
| | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in cash and cash equivalents | | | 7,283 | | | | (69,256 | ) | | | 40,116 | | | | — | | | | (21,857 | ) |
Cash and cash equivalents: | | | | | | | | | | | | | | | | | | | | |
Beginning of year | | | 62,065 | | | | 175,758 | | | | 362,071 | | | | — | | | | 599,894 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 69,348 | | | $ | 106,502 | | | $ | 402,187 | | | $ | — | | | $ | 578,037 | |
| | | | | | | | | | | | | | | | | | | | |
|
|