Cinemark Holdings, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Cinemark Holdings, Inc. filed its Q1 2024 10-Q, detailing financial performance and segment data.</b>

AI Summary

Cinemark Holdings, Inc. (CNK) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Cinemark Holdings, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to the US Operating Segment and International Operating Segment. Key financial elements such as Admissions Revenue, Concessions, and Other Revenue are detailed for Q1 2023 and Q1 2024. Information on credit facilities, including Senior Secured Credit Facility and Term Loan Credit Facility, is referenced. The report also touches upon investments, goodwill, intangible assets, and various equity components like Additional Paid In Capital and Retained Earnings.

Why It Matters

For investors and stakeholders tracking Cinemark Holdings, Inc., this filing contains several important signals. This filing provides a quarterly update on Cinemark's financial health, revenue streams, and operational segments, crucial for investors assessing short-term performance. The inclusion of specific revenue figures and segment breakdowns allows for a direct comparison of business unit performance and overall company trends.

Risk Assessment

Risk Level: medium — Cinemark Holdings, Inc. shows moderate risk based on this filing. The company operates in the highly competitive and cyclical motion picture exhibition industry, which is subject to fluctuations in film releases and consumer discretionary spending, as evidenced by the detailed revenue segments for Q1 2023 and Q1 2024.

Analyst Insight

Investors should analyze the revenue growth in both US and International segments to understand Cinemark's recovery and expansion strategies.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (10-Q filing)
• 2023-03-31 — Prior Period End Date (Comparison data)
• 2023-01-01 — Q1 2023 Start Date (Revenue reporting)
• 2024-01-01 — Q1 2024 Start Date (Revenue reporting)

Key Players & Entities

• Cinemark Holdings, Inc. (company) — Filer
• CNK (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-02 (date) — Filed as of date
• US Operating Segment (company) — Business segment
• International Operating Segment (company) — Business segment
• Admissions Revenue (dollar_amount) — Revenue category
• Concessions (dollar_amount) — Revenue category

FAQ

Risk Factors

• Industry Cyclicality and Competition [high — market]: The motion picture exhibition industry is inherently cyclical and competitive, impacted by film release schedules and consumer discretionary spending.
• Debt Obligations [medium — financial]: The company has significant debt obligations, including credit facilities, which require substantial cash flow for servicing.
• Reliance on Film Studios [medium — operational]: Cinemark's success is heavily dependent on the availability and success of films produced by major studios.

Key Financial Figures

• $0.001 — 24, 122,346,365 shares of common stock, $0.001 par value per share, of Cinemark Holdin
• $0.01 — , 1,500 shares of Class A common stock, $0.01 par value per share, and 182,648 shares

Filing Documents

• cnk-20240331.htm (10-Q) — 3454KB
• cnk-ex31_1.htm (EX-31.1) — 15KB
• cnk-ex31_2.htm (EX-31.2) — 15KB
• cnk-ex31_3.htm (EX-31.3) — 14KB
• cnk-ex31_4.htm (EX-31.4) — 14KB
• cnk-ex32_1.htm (EX-32.1) — 8KB
• cnk-ex32_2.htm (EX-32.2) — 8KB
• cnk-ex32_3.htm (EX-32.3) — 8KB
• cnk-ex32_4.htm (EX-32.4) — 8KB
• 0000950170-24-051553.txt (&nbsp;) — 13473KB
• cnk-20240331.xsd (EX-101.SCH) — 2109KB
• cnk-20240331_htm.xml (XML) — 2420KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Cinemark Holdings, Inc. and Subsidiaries Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7 Cinemark USA, Inc. and Subsidiaries Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 8 Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 9 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 10 Condensed Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023 11 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 12 Cinemark Holdings, Inc. and Cinemark USA, Inc. Notes to Condensed Consolidated Financial Statements 13 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 Item 5. Other Information 47 Item 6. Exhibits 52

SIGNATURES

SIGNATURES 53 1 Cautionary Statement Regarding Forward-Looking Statements Certain matters within this Quarterly Report on Form 10-Q include "forward–looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about the respective business and industry of Holdings and CUSA. They include statements relating to: future revenue, expenses and profitability; currency exchange rate and inflationary impacts; the future development and expected growth of our business; projected capital expenditures; access to capital resources; attendance at movies generally or in any of the markets in which we operate; the number and diversity of popular movies released, the length of exclusive theatrical release windows and our ability to successfully license and exhibit popular films; national and international growth in our industry; competition from other exhibitors, alternative forms of entertainment and content delivery via streaming and other formats; determinations in lawsuits in which we are a party; and the ongoing recovery of our business and the motion picture exhibition industry from the effects of the COVID-19 pandemic and the 2023 writers' and actors' guilds strikes. You can identify forward-looking statements by the use of words such as "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions. These statements are neither historical facts nor guarantees of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and are, therefore, subject to risks, inherent uncertai

- FINANC IAL INFORMATION

PART I - FINANC IAL INFORMATION

Financ ial Statements

Item 1. Financ ial Statements CINEMARK HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDA TED BALANCE SHEETS (in millions, except share and per share data, unaudited) March 31, December 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 788.6 $ 849.1 Inventories 23.7 23.3 Accounts receivable 74.4 80.4 Current income tax receivable 53.0 56.7 Prepaid expenses and other 44.7 50.5 Total current assets 984.4 1,060.0 Theatre properties and equipment, net 1,159.7 1,161.7 Operating lease right-of-use assets, net 973.8 986.4 Other long-term assets Goodwill 1,248.8 1,251.0 Intangible assets, net 302.3 302.8 Investment in NCMI 22.5 18.1 Investments in affiliates 26.1 23.6 Long-term deferred tax asset 30.1 7.7 Deferred charges and other assets, net 32.4 25.5 Total other long-term assets 1,662.2 1,628.7 Total assets $ 4,780.1 $ 4,836.8 Liabilities and equity Current liabilities Current portion of long-term debt $ 7.8 $ 7.8 Current portion of operating lease obligations 207.3 212.5 Current portion of finance lease obligations 15.5 14.0 Current income tax payable 5.5 4.2 Accounts payable and accrued expenses 427.9 491.8 Total current liabilities 664.0 730.3 Long-term liabilities Long-term debt, less current portion 2,391.6 2,391.3 Operating lease obligations, less current portion 840.9 853.3 Finance lease obligations, less current portion 95.7 73.8 Long-term deferred tax liability 36.7 51.7 Long-term liability for uncertain tax positions 48.9 48.0 NCM screen advertising advances 325.8 328.4 Other long-term liabilities 41.1 41.2 Total long-term liabilities 3,780.7 3,787.7 Equity Cinemark Holdings, Inc.'s stockholders' equity: Common stock, $ 0.001 par value: 300,000,000 shares authorized, 128,622,514 shares issued and 122,348,675 shares outstanding