Full Description

Cinemark Holdings, Inc. is engaged in the motion picture exhibition industry, with theatres in the United States, Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Colombia. The Company also managed theatres in the United States, Brazil and Colombia during the year ended December 31, 2008. As of December 31, 2008, Cinemark Holdings, Inc. managed its business under two segments: United States markets and international markets. As of December 31, 2008, it operated 429 theatres and 4,783 screens in 38 states, one Canadian province and 12 Latin American countries. Its theatres in the United States are primarily located in mid-sized United States markets, including suburbs of metropolitan areas. During 2008, it acquired two theatres with 28 screens, built 10 theatres with 128 screens and closed six theatres with 68 screens.

Film Licensing

In the United States, the Company licenses films from film distributors that are owned by film production companies or from independent film distributors that distribute films for smaller production companies. Cinemark Holdings, Inc. operates theatres in 242 first run film zones in the United States New film releases are licensed at the discretion of the film distributors. As the sole exhibitor in approximately 86% of the first run film zones, in which the Company operates, it has access to film product. Cinemark Holdings, Inc. usually licenses films on an allocation basis in film zones.

In the international markets, in which Cinemark Holdings, Inc. operates, distributors do not allocate film to a single theatre in a geographic film zone, but allow theatres to play the same films simultaneously. In these markets, films are still licensed on a theatre-by-theatre and film-by-film basis. The Company operates six art theatres with 21 screens under the CineArts brand. Cinemark Holdings, Inc. also regularly plays art and independent films at its other theatres.

Concessions

Concession sales are the Company’s second largest revenue source, representing approximately 31% of total revenues during 2008. Concession products consist of various sizes of popcorn, soft drinks and candy. The concession distributor supplies and distributes inventory to the theatres, who place orders directly with the vendors to replenish stock.