CINEMARK USA INC /TX

Previous wording

The following table sets forth, for the periods indicated, the amounts for certain items reflected in the operating income (loss) of Holdings along with each of those items as a percentage of revenue.

Current wording

The following table sets forth, for the periods indicated, the amounts for certain items reflected in the operating income of Holdings along with each of those items as a percentage of revenue.

Previous wording

The only difference between components of operating income (loss) for Holdings, as presented above, and those of CUSA is incremental general and administrative expense recognized by Holdings. The following table sets forth, for the periods indicated, the amounts for general and administrative expense, total cost of operations and operating income (loss) of CUSA:

Current wording

The only difference between components of operating income for Holdings, as presented above, and those of CUSA is incremental general and administrative expense recognized by Holdings. The following table sets forth, for the periods indicated, the amounts for general and administrative expense, total cost of operations and operating income of CUSA:

Previous wording

Three months ended March 31, 2026 (the “2026 period”) versus the three months ended March 31, 2025 (the “2025 period”)

Current wording

Six months ended June 30, 2026 (the “2026 period”) versus the six months ended June 30, 2025 (the “2025 period”)

Previous wording

2025 Period - The North American Industry box office generated approximately $1.5 billion during the 2025 period, which included new releases Captain America: Brave New World, Dog Man, and Disney’s Snow White, as well as the carryover of 2024 releases Mufasa: The Lion Kingand Sonic the Hedgehog 3.

Current wording

2025 Period - The North American Industry box office generated approximately $4.2 billion during the 2025 period, which included new releases A Minecraft Movie, Lilo & Stitch, Sinners, How to Train Your Dragon, Captain America: Brave New World, Thunderbolts*, Mission: Impossible - The Final Reckoningand Final Destination: Bloodlines, as well as the carryover of 2024 release Mufasa: The Lion King.

Previous wording

U.S. Attendance increased to 24.1 million patrons during the 2026 period compared with 20.6 million patrons during the 2025 period primarily driven by a film slate that had stronger consumer appeal year-over-year. Average ticket price increased 4.5% to $10.53 during the 2026 period compared with $10.08 during the 2025 period driven by strategic pricing actions and higher premium format mix. Concession revenue per patron increased 7.5% to $8.58 during the 2026 period compared with $7.98 during the 2025 period primarily driven by strategic pricing actions, increased incidence rates and a favorable shift in product mix. Other revenue for the 2026 period increased 20.0% to $54.1 million compared with $45.1 million during the 2025 period primarily due to higher transaction fees, as well as an increase in screen advertising revenue and promotional income.

Current wording

U.S. Attendance increased to 64.2 million patrons during the 2026 period compared with 57.5 million patrons during the 2025 period primarily driven by a stronger film slate. Average ticket price increased 4.3% to $10.72 during the 2026 period compared with $10.28 during the 2025 period driven by strategic pricing actions and higher premium format mix. Concession revenue per patron increased 5.5% to $8.66 during the 2026 period compared with $8.21 during the 2025 period primarily driven by strategic pricing actions and a favorable shift in product mix. Other revenue for the 2026 period increased 15.3% to $130.8 million compared with $113.4 million during the 2025 period primarily due to higher transaction fees as well as an increase in screen advertising revenue and promotional income.

Previous wording

International. Attendance decreased to 14.9 million patrons for the 2026 period from 16.0 million during the 2025 period reflecting a film slate that did not resonate as strongly with audiences in our international markets year-over-year. Revenues, average ticket price and concession revenue per patron for our international segment, as reported, were favorably impacted by exchange rate fluctuations during the 2026 period. In constant currency, the average ticket price increased 9.1% to $3.85 for the 2026 period primarily due to inflationary pricing actions and higher premium format mix. Similarly, in constant currency, concession revenue per patron increased 11.1% to $3.20 for the 2026 period primarily due to inflationary pricing actions. Other revenue increased 7.6% in constant currency to $22.7 million for the 2026 period primarily due to inflationary impacts.

Current wording

International. Attendance increased to 38.5 million patrons for the 2026 period from 37.0 million during the 2025 period driven by a stronger film slate. Revenues, average ticket price and concession revenue per patron for our international segment, as reported, were favorably impacted by exchange rate fluctuations during the 2026 period. In constant currency, the average ticket price increased 9.8% to $4.16 for the 2026 period primarily due to inflationary pricing actions, partially offset by a lower premium format mix. In constant currency, concession revenue per patron increased 7.0% to $3.36 for the 2026 period primarily due to inflationary pricing actions, partially offset by a shift in mix. Other revenue increased 20.0% in constant currency to $58.2 million for the 2026 period primarily due to higher transaction fees, an increase in loyalty revenue and inflationary impacts.

Previous wording

U.S. Film rentals and advertising costs increased to 55.5% of admissions revenue for the 2026 period compared with 54.5% of admissions revenue for the 2025 period primarily due to the increased scale and concentration of high-grossing films. Concession supplies expense for the 2026 period was 18.3% of concession revenue compared with 20.6% for the 2025 period. The decrease in the concession supplies rate for the 2026 period was primarily driven by strategic pricing actions and sourcing initiatives, as well as a shift in product mix, partially offset by continued inflationary pressures.

Current wording

U.S. Film rentals and advertising costs increased to 58.0% of admissions revenue for the 2026 period compared with 57.7% of admissions revenue for the 2025 period primarily due to higher marketing spend and the increased scale and concentration of high-grossing films. Concession supplies expense for the 2026 period was 18.1% of concession revenue compared with 19.2% for the 2025 period. The decrease in the concession supplies rate for the 2026 period was primarily driven by strategic pricing actions and sourcing initiatives, partially offset by inflationary pressures.

Previous wording

Salaries and wages increased 3.5% to $77.2 million for the 2026 period compared with $74.6 million for the 2025 period due to higher attendance and wage inflation, partially offset by labor productivity initiatives. Facility lease expense increased 3.5% to $62.3 million, primarily due to higher percentage rent. Utilities and other costs increased 8.6% to $88.8 million, as many of these costs, such as credit card fees, repairs and maintenance costs, utility and janitorial costs, are variable or semi-variable in nature and were impacted by the increase in attendance.

Current wording

Salaries and wages increased 4.0% to $172.2 million for the 2026 period compared with $165.5 million for the 2025 period due to higher attendance and wage and benefits inflation, partially offset by labor productivity initiatives. Facility lease expense increased 2.8% to $125.8 million, primarily due to higher percentage rent. Utilities and other costs increased 7.7% to $193.3 million, as many of these costs, such as credit card fees, repairs and maintenance, utilities and janitorial costs, are variable or semi-variable in nature and were impacted by the increase in attendance. An increase in gift card commissions and fees also contributed to the increase in utilities and other costs.

Previous wording

Film rentals and advertising costs remained relatively flat at 50.0% of admissions revenue as reported for the 2026 period compared with 49.9% for the 2025 period. Concession supplies expense was 22.1% of concessions revenue as reported for the 2026 period compared with 22.8% for the 2025 period. The decrease in the concession supplies rate was primarily driven by strategic pricing actions and sourcing initiatives, as well as favorable product mix.

Current wording

Film rentals and advertising costs were 50.4% of admissions revenue as reported for the 2026 period compared with 50.9% for the 2025 period primarily due to the overall mix of films. Concession supplies expense was 22.7% of concessions revenue as reported for the 2026 period compared with 22.9% for the 2025 period. The decrease in the concession supplies rate was primarily driven by strategic pricing actions and sourcing initiatives, as well as favorable product mix.

Previous wording

In constant currency, salaries and wages increased 8.9% to $17.1 million for the 2026 period primarily driven by wage inflation, partially offset by lower attendance and effective labor management. Facility lease expense of $17.9 million in constant currency was relatively flat compared to the 2025 period. Utilities and other costs increased 7.9% to $25.8 million in constant currency for the 2026 period primarily due to inflationary pressures.

Current wording

In constant currency, salaries and wages increased 11.7% to $38.2 million for the 2026 period primarily driven by wage inflation and higher attendance, partially offset by labor productivity initiatives. Facility lease expense increased 9.0% to $42.3 million in constant currency compared with the 2025 period, primarily due to higher percentage rent and inflationary impacts. Utilities and other costs increased 12.4% to $57.2 million in constant currency for the 2026 period primarily due to inflationary pressures and the impact of the increase in attendance, as many of these costs are variable or semi-variable in nature.

Previous wording

General and Administrative Expense. General and administrative expense for Holdings increased to $56.1 million for the 2026 period compared with $54.5 million for the 2025 period. General and administrative expense for CUSA increased to $55.0 million for the 2026 period compared with $53.5 million for the 2025 period. The increase for both Holdings and CUSA is primarily due to higher wages and benefits, increased headcount, higher share-based compensation and an increase in cloud-based software costs, partially offset by a decrease in professional fees.

Current wording

General and Administrative Expense. General and administrative expense for Holdings increased to $118.9 million for the 2026 period compared with $108.6 million for the 2025 period. General and administrative expense for CUSA increased to $116.8 million for the 2026 period compared with $106.8 million for the 2025 period. The increase for both Holdings and CUSA is primarily due to higher wages and benefits, increased headcount, higher incentive and share-based compensation, and an increase in cloud-based software costs, partially offset by a decrease in professional fees.

Previous wording

Depreciation and Amortization. Depreciation and amortization expense increased to $51.6 million for the 2026 period compared with $49.5 million for the 2025 period.

Current wording

Depreciation and Amortization. Depreciation and amortization expense increased to $103.2 million for the 2026 period compared with $98.9 million for the 2025 period.

Previous wording

Loss (Gain) on Disposal of Assets and Other. A loss on disposal of assets and other of $3.7 million was recorded for the 2026 period compared with a gain of $4.1 million for the 2025 period. Activity for the 2026 period was primarily related to the retirement of certain assets that were replaced as a result of theater enhancements. Activity for the 2025 period was primarily related to gains on the sale of real property.

Current wording

Loss (Gain) on Disposal of Assets and Other. A loss on disposal of assets and other of $6.5 million was recorded for the 2026 period compared with a gain of $3.1 million for the 2025 period. Activity for the 2026 period was primarily related to the retirement of certain assets that were replaced as a result of theater enhancements. Activity for the 2025 period was primarily related to gains on the sale of a land parcel and one of our owned theater properties, partially offset by the retirement of certain assets replaced as a result of remodels.

Previous wording

Interest Expense. Interest expense for Holdings, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated losses for swap amendments, was $34.7 million during the 2026 period compared with $38.5 million during the 2025 period. The interest expense attributable to CUSA was $34.7 million during the 2026 period compared with $32.4 million during the 2025 period. The decrease in interest expense at Holdings reflects the impact of the payoff of the $460.0 million principal of the 4.50% Convertible Senior Notes on August 15, 2025.

Current wording

Interest Expense. Interest expense for Holdings, which includes amortization of debt issuance costs and original issue discount and amortization of accumulated losses for swap amendments, was $66.0 million during the 2026 period compared with $77.9 million during the 2025 period. The interest expense attributable to CUSA was $66.0 million during the 2026 period compared with $65.8 million during the 2025 period. The decrease in interest expense at Holdings reflects the impact of the payoff of the $460.0 million principal of the 4.50% Convertible Senior Notes on August 15, 2025. The decrease for both Holdings and CUSA also reflects a reduction in our term loan interest rate due to the term loan reprice transactions in June 2025 and May 2026.

Previous wording

Other Income, Net. Other income, net for Holdings was $1.4 million during the 2026 period compared with $4.4 million during the 2025 period. Other income, net attributable to CUSA was $1.4 million during the 2026 period compared with $2.1 million during the 2025 period. The decrease in other income, net for Holdings and CUSA reflects a decrease in interest income, primarily due to lower average cash balances, partially offset by an increase in equity income from affiliates and higher foreign currency exchange gains primarily related to the impact of hyper-inflationary accounting for Argentina.

Current wording

Other Income, Net. Other income, net for Holdings was $5.7 million during the 2026 period compared with $9.0 million during the 2025 period. Other income, net attributable to CUSA was $5.7 million during the 2026 period compared with $6.7 million during the 2025 period. The decrease in other income, net for Holdings and CUSA reflects a decrease in interest income, primarily due to lower average cash balances and lower interest rates, partially offset by the favorable impact of the mark-to-market adjustment on our investment in NCMI under the fair value basis of accounting and foreign currency exchange gains primarily related to the impact of hyper-inflationary accounting for Argentina.

Previous wording

Income Taxes - Holdings. An income tax benefit of $4.0 million was recorded for the 2026 period compared with an income tax benefit of $14.7 million for the 2025 period. The effective tax rate was approximately 40.5% for the 2026 period compared with 27.6% for the 2025 period. The effective tax rates for the 2026 and 2025 periods differ from the U.S. statutory rate primarily due to foreign tax rate differences, the U.S. tax impact of foreign operations, and state and local taxes. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.

Current wording

Income Taxes - Holdings. An income tax expense of $58.4 million was recorded for the 2026 period compared with an income tax expense of $27.8 million for the 2025 period. The effective tax rate was approximately 30.2% for the 2026 period compared with 33.1% for the 2025 period. The effective tax rates for the 2026 and 2025 periods differ from the U.S. statutory rate primarily due to foreign tax rate differences, the U.S. tax impact of foreign operations, and state and local taxes. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.

Previous wording

Income Taxes - CUSA. An income tax benefit of $3.6 million was recorded for the 2026 period compared with income tax benefit of $14.2 million for the 2025 period. The effective tax rate was approximately 41.8% for the 2026 period compared with 29.3% for the 2025 period. The effective tax rates for the 2026 and 2025 periods differ from the U.S. statutory rate primarily due to foreign tax rate differences, U.S. tax impact of foreign operations, and state and local taxes. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.

Current wording

Income Taxes - CUSA. An income tax expense of $58.9 million was recorded for the 2026 period compared with income tax expense of $29.4 million for the 2025 period. The effective tax rate was approximately 30.1% for the 2026 period compared with 30.7% for the 2025 period. The effective tax rates for the 2026 and 2025 periods differ from the U.S. statutory rate primarily due to foreign tax rate differences, U.S. tax impact of foreign operations, and state and local taxes. Income tax provisions for interim periods are generally based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period. As a result, the interim rate may vary significantly from the normalized annual rate.

Previous wording

We primarily collect our revenue in cash, mainly through box office receipts and the sale of concessions. Our revenue is generally received in cash prior to the payment of related expenses; therefore, we have an operating “float” and historically have not required traditional working capital financing. However, our working capital position will fluctuate based on seasonality, the timing and volume of new film content, the timing of interest payments on our debt as well as timing of payment of other operating expenses that are paid annually or semi-annually, such as property and other taxes and incentive compensation. We believe our existing cash and expected cash flows from operations will be sufficient to meet our working capital, capital expenditures, and known contractual obligations for the next twelve months and beyond.

Current wording

We primarily collect our revenue in cash, mainly through box office receipts and the sale of concessions. Our revenue is generally received in cash prior to the payment of related expenses; therefore, we have an operating “float.” However, our working capital position will fluctuate based on seasonality, the timing and volume of new film content, the timing of interest payments on our debt as well as timing of payment of other operating expenses that are paid annually or semi-annually, such as property and other taxes and incentive compensation. We believe our existing cash and expected cash flows from operations will be sufficient to meet our working capital, capital expenditures, and known contractual obligations for the next twelve months and beyond.

Previous wording

Cash used for operating activities was $20.4 million for Holdings and $20.2 million for CUSA for the three months ended March 31, 2026, compared with cash used for operating activities of $119.1 million for Holdings and $111.1 million for CUSA for the three months ended March 31, 2025. The decrease in cash used for operating activities was primarily driven by the level of revenue earned during each period and the timing of payments to vendors for expenses.

Current wording

Cash provided by operating activities was $339.7 million for Holdings and $340.0 million for CUSA for the six months ended June 30, 2026, compared with cash provided by operating activities of $156.8 million for Holdings and $164.4 million for CUSA for the six months ended June 30, 2025. The increase in cash provided by operating activities was primarily driven by the level of revenue earned during each period and the timing of payments to vendors for expenses.

Previous wording

Investing activities have been principally related to the development, remodel and enhancement of theaters. Cash used for investing activities was $37.5 million and $15.3 million for the three months ended March 31, 2026 and 2025, respectively. The increase in cash used for investing activities was primarily due to an increase in capital expenditures to support the continued enhancement of our global circuit.

Current wording

Investing activities have been principally related to the development, remodel and enhancement of theaters. Cash used for investing activities was $99.1 million and $45.2 million for the six months ended June 30, 2026 and 2025, respectively. The increase in cash used for investing activities was primarily due to an increase in capital expenditures to support the continued enhancement of our global circuit.

Previous wording

Below is a summary of capital expenditures, disaggregated by new and existing theaters, for the three months ended March 31, 2026 and 2025 (in millions):

Current wording

Below is a summary of capital expenditures, disaggregated by new and existing theaters, for the six months ended June 30, 2026 and 2025 (in millions):

Previous wording

We operated 495 theaters with 5,620 screens worldwide as of March 31, 2026. Theaters and screens opened and closed during the three months ended March 31, 2026 were as follows:

Current wording

We operated 495 theaters with 5,620 screens worldwide as of June 30, 2026. Theaters and screens opened and closed during the six months ended June 30, 2026 were as follows:

Previous wording

Approximately $21.5 million is expected to be paid during the remainder of 2026 and $39.6 million and $8.8 million is expected to be paid during 2027 and 2028, respectively. The timing of payments is subject to change in the event of construction or other delays.

Current wording

Approximately $14.1 million is expected to be paid during the remainder of 2026 and $34.5 million and $15.3 million is expected to be paid during 2027 and 2028, respectively. The timing of payments is subject to change in the event of construction or other delays.

Previous wording

Cash used for financing activities was $36.8 million for Holdings and $37.1 million for CUSA for the three months ended March 31, 2026, compared with $230.1 million for Holdings and $20.4 million CUSA for the three months ended March 31, 2025. The decrease in cash used for financing activities for Holdings primarily reflects the repurchase of common stock in the first quarter of 2025, partially offset by higher payroll tax payments associated with equity awards that vested during the period. The increase in cash used for financing activities for CUSA was driven by cash distributions to Cinemark Holdings, Inc. to fund the Company’s shareholder dividends and higher payroll tax payments associated with equity awards that vested during the period.

Current wording

Cash used for financing activities was $80.7 million for Holdings and $82.4 million for CUSA for the six months ended June 30, 2026, compared with $246.3 million for Holdings and $27.6 million for CUSA for the six months ended June 30, 2025. The decrease in cash used for financing activities for Holdings primarily reflects a decrease in repurchases of the Company’s common stock, partially offset by higher payroll tax payments associated with equity awards that vested during the period. The increase in cash used for financing activities for CUSA was driven by cash distributions to Cinemark Holdings, Inc. to fund the Company’s shareholder dividends and share repurchases. Cash used for financing activities for CUSA also reflects higher payroll tax payments associated with equity awards that vested during the period.

Previous wording

Holdings, at the discretion of its Board of Directors and subject to applicable law, anticipates paying quarterly cash dividends on its common stock. The amount of dividends to be paid in the future, if any, will depend upon our then available cash balances, anticipated cash needs, overall financial condition, loan agreement restrictions as discussed below, and future prospects for earnings and cash flows, as well as other relevant factors. The following table summarizes the quarterly dividends paid during the three months ended March 31, 2026 and 2025.

Current wording

Holdings, at the discretion of its Board of Directors and subject to applicable law, anticipates paying quarterly cash dividends on its common stock. The amount of dividends to be paid in the future, if any, will depend upon our then available cash balances, anticipated cash needs, overall financial condition, loan agreement restrictions as discussed below, and future prospects for earnings and cash flows, as well as other relevant factors. The following table summarizes the quarterly dividends paid during the six months ended June 30, 2026 and 2025.

Previous wording

Of the total dividends recorded during the three months ended March 31, 2026 and 2025 $0.3 million and $0.2 million, respectively, relate to outstanding performance and restricted stock units and are not paid until such units vest. See Note 9 to the condensed consolidated financial statements.

Current wording

Of the total dividends recorded during the three and six months ended June 30, 2026, $0.2 million and $0.5 million, respectively, relate to outstanding performance and restricted stock units and are not paid until such units vest. Of the total dividends recorded during the three and six months ended June 30, 2025, $0.2 million and $0.4 million, respectively, relate to outstanding performance and restricted stock units and are not paid until such units vest. See Note 9 to the condensed consolidated financial statements.

Previous wording

There have been no material changes in the contractual obligations previously disclosed in “Liquidity and Capital Resources” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed February 18, 2026.

Current wording

Other than the May 12, 2026 amendment of our Credit Agreement as discussed in Note 7 to the condensed conolidated financial statements, there have been no material changes in the contractual obligations previously disclosed in “Liquidity and Capital Resources” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed February 18, 2026.

Previous wording

On May 26, 2023, CUSA amended and restated its senior secured credit facility (the “Credit Agreement”) to provide for an aggregate principal amount of $775.0 million, consisting of a $650.0 million term loan with a maturity date of May 24, 2030 and a $125.0 million revolving credit facility with a maturity date of May 26, 2028. The term loan and revolving credit facility are subject to a springing maturity date of April 15, 2028 if CUSA’s 5.25% Senior Notes due 2028 have not been paid or refinanced as required under the Credit Agreement prior to such date, as more specifically described in the Credit Agreement.

Current wording

CUSA has a senior secured credit facility (the “Credit Agreement”) that provides for an aggregate principal amount of $875.0 million, consisting of a $650.0 million term loan with a maturity date of May 24, 2030 and a $225.0 million revolving credit facility with a maturity date of May 26, 2028. The term loan and revolving credit facility are subject to a springing maturity date of April 15, 2028 if CUSA’s 5.25% Senior Notes due 2028 have not been paid or refinanced as required under the Credit Agreement prior to such date, as more specifically described in the Credit Agreement.

Previous wording

The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on the ability of Holdings, CUSA and their subsidiaries to: merge, consolidate, liquidate, or dissolve; sell, transfer or otherwise dispose of assets; create, incur or permit to exist certain indebtedness and liens; pay dividends, repurchase stock and make other Restricted Payments (as defined in the Credit Agreement); prepay certain indebtedness; make investments; enter into transactions with affiliates; and change the nature of their business. At any time that CUSA has revolving credit loans outstanding, it is not permitted to allow the Consolidated Net Senior Secured Leverage Ratio to exceed 3.5 to 1.0. As of March 31, 2026, there were no revolving credit loans outstanding, and CUSA’s Consolidated Net Senior Secured Leverage Ratio was 0.6 to 1.

Current wording

The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on the ability of Holdings, CUSA and their subsidiaries to: merge, consolidate, liquidate, or dissolve; sell, transfer or otherwise dispose of assets; create, incur or permit to exist certain indebtedness and liens; pay dividends, repurchase stock and make other Restricted Payments (as defined in the Credit Agreement); prepay certain indebtedness; make investments; enter into transactions with affiliates; and change the nature of their business. At any time that CUSA has revolving credit loans outstanding, it is not permitted to allow the Consolidated Net Senior Secured Leverage Ratio to exceed 3.5 to 1.0. As of June 30, 2026, there were no revolving credit loans outstanding, and CUSA’s Consolidated Net Senior Secured Leverage Ratio was 0.2 to 1.

Previous wording

The Restricted Payments covenant, as defined in the Credit Agreement generally does not limit the abilityof Holdings and its subsidiaries to pay dividends and make other Restricted Payments if the Consolidated Net Total Leverage Ratio (as defined in the Credit Agreement) is less than or equal to 2.75 to 1.00. If the Consolidated Net Total Leverage Ratio is greater than 2.75 to 1.00, but not greater than 5.00 to 1.00, Restricted Payments generally may be made in an aggregate amount not to exceed the Available Amount (as defined in the Credit Agreement), which is a function of CUSA’s Consolidated EBITDA minus 1.75 times its Consolidated Interest Expense (as such terms are defined in the Credit Agreement) and certain other factors as specified in the Credit Agreement. As of March 31, 2026, the Consolidated Net Total Leverage Ratio was 2.46 to 1.00 and the Available Amount was $1.4 billion. In addition, the Credit Agreement contains other baskets that allow certain Restricted Payments in excess of the Applicable Amount.

Current wording

The Restricted Payments covenant, as defined in the Credit Agreement generally does not limit the abilityof Holdings and its subsidiaries to pay dividends and make other Restricted Payments if the Consolidated Net Total Leverage Ratio (as defined in the Credit Agreement) is less than or equal to 2.75 to 1.00. If the Consolidated Net Total Leverage Ratio is greater than 2.75 to 1.00, but not greater than 5.00 to 1.00, Restricted Payments generally may be made in an aggregate amount not to exceed the Available Amount (as defined in the Credit Agreement), which is a function of CUSA’s Consolidated EBITDA minus 1.75 times its Consolidated Interest Expense (as such terms are defined in the Credit Agreement) and certain other factors as specified in the Credit Agreement. As of June 30, 2026, the Consolidated Net Total Leverage Ratio was 1.93 to 1.00 and the Available Amount was $1.5 billion. In addition, the Credit Agreement contains other baskets that allow certain Restricted Payments in excess of the Applicable Amount.

Previous wording

As of March 31, 2026, there was $630.7 million outstanding under the term loan and no borrowings were outstanding under the $225.0 million revolving line of credit. The average interest rate on outstanding term loan borrowings under the Credit Agreement as of March 31, 2026 was approximately 5.6% per annum, after giving effect to the interest rate swap agreements.

Current wording

As of June 30, 2026, there was $629.1 million outstanding under the term loan and no borrowings were outstanding under the $225.0 million revolving line of credit. The average interest rate on outstanding term loan borrowings under the Credit Agreement as of June 30, 2026 was approximately 5.3% per annum, after giving effect to the interest rate swap agreements.

Previous wording

CUSA may redeem the 5.25% Senior Notes in whole or in part at 101.313% of the principal amount up to July 15, 2026 and at par thereafter, as set forth in the indenture.

Current wording

CUSA may redeem the 5.25% Senior Notes in whole or in part at par, as set forth in the indenture.

Previous wording

The indentures governing the 5.25% Senior Notes and the 7.00% Senior Notes ("the indentures") contain covenants that limit, among other things, the ability of CUSA and certain of its subsidiaries to (1) make investments or other restricted payments, including paying dividends, making other distributions or repurchasing subordinated debt or equity, (2) incur additional indebtedness and issue preferred stock, (3) enter into transactions with affiliates, (4) enter new lines of business, (5) merge or consolidate with, or sell all or substantially all of its assets to, another person and (6) create liens. As of March 31, 2026, CUSA could have distributed up to approximately $4.5 billion to its parent company and sole stockholder, Holdings, under the terms of the indentures, subject to its available cash and other borrowing restrictions outlined in the indentures. Upon a change of control, as defined in the indentures, CUSA would be required to make an offer to repurchase the 5.25% Senior Notes and the 7.00% Senior Notes at a price equal to 101% of the aggregate principal amount outstanding plus accrued and unpaid interest, if any, through the date of repurchase. The indentures allow Cinemark USA, Inc. to incur additional indebtedness if it satisfies the coverage ratio specified in the indentures, after giving effect to the incurrence of the additional indebtedness, and in certain other circumstances. The required minimum coverage ratio is 2 to 1 and our actual ratio as of March 31, 2026 was 6.6 to 1.

Current wording

The indentures governing the 5.25% Senior Notes and the 7.00% Senior Notes ("the indentures") contain covenants that limit, among other things, the ability of CUSA and certain of its subsidiaries to (1) make investments or other restricted payments, including paying dividends, making other distributions or repurchasing subordinated debt or equity, (2) incur additional indebtedness and issue preferred stock, (3) enter into transactions with affiliates, (4) enter new lines of business, (5) merge or consolidate with, or sell all or substantially all of its assets to, another person and (6) create liens. As of June 30, 2026, CUSA could have distributed up to approximately $4.8 billion to its parent company and sole stockholder, Holdings, under the terms of the indentures, subject to its available cash and other borrowing restrictions outlined in the indentures. Upon a change of control, as defined in the indentures, CUSA would be required to make an offer to repurchase the 5.25% Senior Notes and the 7.00% Senior Notes at a price equal to 101% of the aggregate principal amount outstanding plus accrued and unpaid interest, if any, through the date of repurchase. The indentures allow Cinemark USA, Inc. to incur additional indebtedness if it satisfies the coverage ratio specified in the indentures, after giving effect to the incurrence of the additional indebtedness, and in certain other circumstances. The required minimum coverage ratio is 2 to 1 and our actual ratio as of June 30, 2026 was 7.5 to 1.