Cinemark Holdings, Inc. Files Q2 2024 10-Q

Ticker: CNK · Form: 10-Q · Filed: 2024-08-02T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, movie-theaters

TL;DR

Cinemark's Q2 10-Q is in, check financials for theater performance.

AI Summary

Cinemark Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which operates motion picture theaters. Specific financial figures and operational metrics for the second quarter and first half of 2024 are presented.

Why It Matters

This filing provides investors with a detailed look at Cinemark's financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The entertainment industry, particularly movie theaters, is subject to significant risks including changing consumer preferences, competition, and economic downturns.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is June 30, 2024.

What is the filing date of this 10-Q?

This 10-Q filing was made on August 2, 2024.

What is the primary business of Cinemark Holdings, Inc. according to the SIC code?

According to the Standard Industrial Classification code [7830], the primary business is SERVICES-MOTION PICTURE THEATERS.

What is the state of incorporation for Cinemark Holdings, Inc.?

Cinemark Holdings, Inc. is incorporated in Delaware (DE).

What specific financial instruments are mentioned in relation to hedging activities for the period ending June 30, 2024?

The filing mentions 'InterestRateSwapAgreementTwoMember' in relation to 'CashFlowHedgingMember' for the period of January 1, 2024, to June 30, 2024.

Filing Stats: 4,473 words · 18 min read · ~15 pages · Grade level 5.7 · Accepted 2024-08-02 06:45:41

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Cinemark Holdings, Inc. and Subsidiaries Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 8 Cinemark USA, Inc. and Subsidiaries Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 9 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 10 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 11 Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023 12 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 14 Cinemark Holdings, Inc. and Cinemark USA, Inc. Notes to Condensed Consolidated Financial Statements 15 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 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 4.

Controls and Procedures

Controls and Procedures 52

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 54 Item 1A.

Risk Factors

Risk Factors 54 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54 Item 5. Other Information 55 Item 6. Exhibits 60

SIGNATURES

SIGNATURES 61 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) June 30, December 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 788.8 $ 849.1 Inventories 26.5 23.3 Accounts receivable 92.7 80.4 Current income tax receivable 48.7 56.7 Prepaid expenses and other 51.7 50.5 Total current assets 1,008.4 1,060.0 Theatre properties and equipment, net 1,125.8 1,161.7 Operating lease right-of-use assets, net 990.2 986.4 Other long-term assets Goodwill 1,243.9 1,251.0 Intangible assets, net 301.5 302.8 Investment in NCMI 19.2 18.1 Investments in affiliates 27.0 23.6 Long-term deferred tax asset 34.3 7.7 Deferred charges and other assets, net 35.9 25.5 Total other long-term assets 1,661.8 1,628.7 Total assets $ 4,786.2 $ 4,836.8 Liabilities and equity Current liabilities Current portion of long-term debt $ 7.6 $ 7.8 Current portion of operating lease obligations 210.5 212.5 Current portion of finance lease obligations 15.9 14.0 Current income tax payable 2.3 4.2 Accounts payable and accrued expenses 544.2 491.8 Total current liabilities 780.5 730.3 Long-term liabilities Long-term debt, less current portion 2,242.8 2,391.3 Operating lease obligations, less current portion 850.9 853.3 Finance lease obligations, less current portion 92.2 73.8 Long-term deferred tax liability 30.3 51.7 Long-term liability for uncertain tax positions 49.8 48.0 NCM screen advertising advances 323.8 328.4 Other long-term liabilities 40.9 41.2 Total long-term liabilities 3,630.7 3,787.7 Equity Cinemark Holdings, Inc.'s stockholders' equity: Common stock, $ 0.001 par value: 300,000,000 shares authorized, 128,696,154 shares issued and 122,387,242 shares outstandin

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