AMC Entertainment Holdings, Inc. Previews First Quarter 2024 Preliminary Results and Announces First Quarter 2024 Earnings Webcast
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Total revenues for the quarter ended
March 31, 2024 , to be approximately$951.4 million compared to$954.4 million for the quarter endedMarch 31, 2023 .
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Net loss for the quarter ended
March 31, 2024 , to be$(163.5) million compared to a net loss of$(235.5) million for the quarter endedMarch 31, 2023 .
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Diluted loss per share for the quarter ended
March 31, 2024 , to be$(0.62) compared to diluted loss per share of$(1.71) for the quarter endedMarch 31, 2023 1.
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Adjusted EBITDA to be
$(31.6) million for the quarter endedMarch 31, 2024 , compared to Adjusted EBITDA of$7.1 million for the quarter endedMarch 31, 2023 . Included in the prior year’s quarterly results endedMarch 31, 2023 was a previously disclosed$16.7 million benefit to Adjusted EBITDA related to an early termination of a theatre lease.
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Cash and cash equivalents at
March 31, 2024 to be$624.2 million .
1 Based on 263.4 million weighted average shares outstanding as of
Adjusted EBITDA is a non-GAAP financial measure and tables reconciling this non-GAAP financial measure to its closest respective GAAP financial measures are included in this press release.
In
AMC will report its full results for the first quarter ended
The Company will host an earnings webcast accessible through the Investor Relations section of AMC’s website at investor.amctheatres.com/. During the webcast the company will take questions from both AMC Investor Connect members and equity research analysts. AMC investors can visit www.amctheatres.com/stockholders to sign up for membership in AMC Investor Connect and submit their written questions. The link to submit questions will be available from
Investors and interested parties should go to the website (investor.amctheatres.com/) at least 15 minutes before the earnings webcast to register, and/or download and install any necessary audio software.
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Date:
Wednesday, May 8, 2024 -
Time:
4:00 PM CDT /5:00 PM EDT
An archive of the webcast will be available on the Company’s website after the webcast for a limited time.
Information Regarding Preliminary Results
The preliminary estimated financial information contained in this press release reflects management’s estimates based solely upon information available to it as of the date of this press release and is not a comprehensive statement of our financial results for the quarter ended
About
AMC is the largest movie exhibition company in
Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In many cases, these forward-looking statements may be identified by the use of words such as “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “indicates,” “projects,” “goals,” “objectives,” “targets,” “predicts,” “plans,” “seeks,” and variations of these words and similar expressions. Examples of forward-looking statements include statements we make regarding our expected revenue, net loss, capital expenditure, Adjusted EBITDA and estimated cash and cash equivalents, as well as the box office outlook for the second, third and fourth quarters. Any forward-looking statement speaks only as of the date on which it is made. These forward-looking statements may include, among other things, statements related to AMC’s current expectations regarding the performance of its business, financial results, liquidity and capital resources, and the impact to its business and financial condition of, and measures being taken in response to, the COVID-19 virus, and are based on information available at the time the statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks, trends, uncertainties and other facts that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks, trends, uncertainties and facts include, but are not limited to: the sufficiency of AMC’s existing cash and cash equivalents and available borrowing capacity; availability of financing upon favorable terms or at all; AMC’s ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required unless it is able to achieve more normalized levels of operating revenues, likely would result with AMC seeking an in-court or out-of-court restructuring of its liabilities; the impact of the COVID-19 virus on AMC, the motion picture exhibition industry, and the economy in general; increased use of alternative film delivery methods or other forms of entertainment; the continued recovery of the North American and international box office; AMC’s significant indebtedness, including its borrowing capacity and its ability to meet its financial maintenance and other covenants and limitations on AMC's ability to take advantage of certain business opportunities imposed by such covenants; shrinking exclusive theatrical release windows; the seasonality of AMC’s revenue and working capital; intense competition in the geographic areas in which AMC operates; risks relating to impairment losses, including with respect to goodwill and other intangibles, and theatre and other closure charges; motion picture production and performance (including as a result of production delays to the release of movies caused by labor stoppages, including but not limited to the
Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. For a detailed discussion of risks, trends and uncertainties facing AMC, see the section entitled “Risk Factors” and elsewhere in our most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as our other filings with the
AMC does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law.
Non-GAAP Reconciliations
A reconciliation of the Company’s net loss, the closest GAAP measure, to Adjusted EBITDA is presented in the following table:
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Reconciliation of Adjusted EBITDA |
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Quarter Ended |
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(Preliminary Estimates) |
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(Unaudited, in millions) |
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Net loss |
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$ |
(163.5 |
) |
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$ |
(235.5 |
) |
Plus: |
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Income tax provision |
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1.8 |
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1.9 |
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Interest expense |
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101.2 |
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101.1 |
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Depreciation and amortization |
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81.6 |
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93.6 |
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Certain operating expenses (1) |
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0.5 |
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1.1 |
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Equity in earnings of non-consolidated entities |
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(3.7 |
) |
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(1.4 |
) |
Cash distributions from non-consolidated entities (2) |
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1.3 |
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— |
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Attributable EBITDA (3) |
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0.6 |
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0.5 |
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Investment income (4) |
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(5.1 |
) |
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(13.5 |
) |
Other expense (income) (5) |
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(38.8 |
) |
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42.8 |
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Other non-cash rent benefit (6) |
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(11.7 |
) |
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(9.6 |
) |
General and administrative expense-unallocated: |
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Merger, acquisition and transaction costs (7) |
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(0.1 |
) |
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0.2 |
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Stock-based compensation expense (8) |
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4.3 |
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25.9 |
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Adjusted EBITDA |
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$ |
(31.6 |
) |
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$ |
7.1 |
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1) |
Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens, including the related accretion of interest, disposition of assets and other non-operating gains or losses included in operating expenses. We have excluded these items as they are non-cash in nature or are non-operating in nature. |
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2) |
Includes |
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3) |
Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of our equity in earnings of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where we hold a significant market share, we believe attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. We also provide services to these theatre operators including information technology systems, certain on-screen advertising services and our gift card and package ticket program. |
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Quarter Ended |
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(Preliminary Estimates) |
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(Unaudited, in millions) |
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Equity in (earnings) of non-consolidated entities |
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$ |
(3.7 |
) |
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$ |
(1.4 |
) |
Less: |
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Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures |
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(3.5 |
) |
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(1.1 |
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Equity in earnings of International theatre joint ventures |
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0.2 |
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0.3 |
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Income tax benefit |
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— |
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(0.1 |
) |
Investment expense |
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0.1 |
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0.1 |
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Depreciation and amortization |
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0.3 |
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0.2 |
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Attributable EBITDA |
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$ |
0.6 |
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$ |
0.5 |
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4) |
Investment expense (income) during the quarter ended |
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5) |
Other expense (income) for the quarter ended |
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6) |
Reflects amortization of certain intangible assets reclassified from depreciation and amortization to rent expense, due to the adoption of ASC 842, Leases and deferred rent benefit related to the impairment of right-of-use operating lease assets. |
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7) |
Merger, acquisition and other costs are excluded as they are non-operating in nature. |
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8) |
Non-cash expense included in general and administrative: other. |
Category: Company Release
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INVESTOR RELATIONS:
InvestorRelations@amctheatres.com
MEDIA CONTACTS:
rnoonan@amctheatres.com
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