AMC Entertainment Holdings, Inc. Announces Record Fourth Quarter and Year-End 2015 Results
Guest Focused Initiatives Continue to Drive Performance
2015 Adjusted EBITDA Increases 15.6%
2015 Diluted Earnings per Share Increase 60.6%
2015 Free Cash Flow Grows 72.2%
LEAWOOD, Kan.--(BUSINESS WIRE)-- AMC Entertainment Holdings, Inc. (“AMC” or “the Company”), one of the world’s leading theatrical exhibition companies and an industry leader in innovation and operational excellence, today reported results for the fourth quarter and year ended December 31, 2015.
Highlights for the fourth quarter 2015 include the following:
- Total revenues grew approximately 10.1% to fourth quarter record $783.9 million compared to total revenues of $712.2 million for the three months ended December 31, 2014.
- Admissions revenues increased approximately 8.4% to a fourth quarter record $498.7 million compared to $460.3 million for the same period. Average ticket price increased 2.4% to a fourth quarter record $9.77, and attendance grew 5.8% to more than 51 million guests.
- Food and beverage revenues grew approximately 12.5% to a fourth quarter record $242.3 million, compared to $215.3 million for the quarter ended December 31, 2014. Food and beverage revenues per patron increased 6.5% to $4.75, representing the highest in the history of the Company. As previously disclosed, in the prior year’s fourth quarter, the Company recorded a $5.1 million tax refund that benefited food and beverage revenues and did not recur this quarter. Excluding the benefit of the tax refund, fourth quarter 2014 food and beverage revenues were $210.2 million, and food and beverage revenue growth for the fourth quarter 2015 improved to 15.3%, while food and beverage revenues per patron growth improved to 8.9%.
- Adjusted EBITDA(1) increased approximately 10.0% to a fourth quarter record $154.0 million compared to $140.1 million for the three months ended December 31, 2014 and Adjusted EBITDA Margin(1) a fourth quarter record 19.7%, unchanged from the year ago period. Excluding the benefit of the $5.1 million tax refund mentioned previously, fourth quarter 2014 Adjusted EBITDA and Adjusted EBITDA Margin were approximately $135.0 million and 19.1% respectively, and Adjusted EBITDA growth for the fourth quarter 2015 improved to 14.1% while Adjusted EBITDA Margin improved 60 basis points from 19.1% to 19.7%.
- Net earnings grew 39.6% to $41.6 million and diluted earnings per share grew 40.0% to $0.42 compared to the three months ended December 31, 2014. During the fourth quarter, AMC amended and extended its Senior Secured Credit Facility Term Loan due 2020 and completed the redemption of the remaining aggregate principal amounts of its 9.75% Senior Subordinated Notes due 2020. As a result, the Company incurred $1.4 million of financing costs that reduced net earnings by approximately $0.9 million, or approximately $0.01 per diluted share. Taking into account the financing costs and the benefit from the $5.1 million tax refund in the prior year’s fourth quarter, adjusted diluted earnings per share(1) for the three months ended December 31, 2015 grew 59.3% to $0.43 per share.
- As previously announced, during the fourth quarter, we completed the acquisition of Starplex Cinemas for approximately $173 million. The transaction broadened AMC’s footprint and complements the Company’s large market portfolio by adding 33 theatres with 346 screens in 12 states, primarily in small and mid-size markets.
“The fourth quarter of 2015 was another strong quarter for AMC and a great finish to the year, as an unyielding focus on improving the guest experience continued to set records, drive attendance, and generate double-digit Adjusted EBITDA and diluted EPS growth,” said Adam Aron, AMC chief executive officer and president. “Additionally, in my view, there is opportunity aplenty for AMC that transcends resting on the successes of the past. We believe that there are a wealth of additional initiatives available to AMC in marketing, operations and technology that can further drive earnings growth and the creation of long term shareholder value.”
Highlights for the year ended 2015 include the following:
- Total revenues increased 9.3% to a record $2,946.9 million compared to total revenues of $2,695.4 million for the year ended December 31, 2014.
- Admissions revenues grew 7.2% to a record $1,892.0 million compared to $1,765.4 million for the 12 months ended December 31, 2014. Average ticket price increased 1.9% to $9.61 and attendance grew 5.2% to nearly 197 million guests.
- Food and beverage revenues increased 14.1% to a record $910.1 million, compared to $797.7 million for the year ended December 31, 2014. Food and beverage revenues per patron increased 8.5% to a new annual record of $4.62.
- Adjusted EBITDA(1) grew 15.6% to a record $536.5 million compared to $463.9 million for the year ended December 31, 2014 and Adjusted EBITDA Margin(1) was 18.2%, compared to 17.2% for the year ended December 31, 2014.
- During 2015, AMC redeemed $600 million aggregate principal amount of its 9.75% Senior Subordinated Notes due 2020 and successfully issued $600 million aggregate principal amount of 5.75% Senior Subordinated Notes due 2025. The effect of the completed refinancing is an expected annual reduction of approximately $24 million in cash interest expense.
- Net earnings increased 62.1% to $103.9 million and diluted earnings per share grew 60.6% to $1.06, compared to the year ended December 31, 2014. As a result of the refinancing mentioned above and an amendment and extension of its Senior Secured Credit Facility Term Loan due 2020, the Company incurred $10.7 million of financing costs that reduced net earnings by approximately $6.8 million or approximately $0.07 per diluted share. Also, during 2014, AMC redeemed its 8.75% Senior Notes due 2019. As a result, the Company recognized financing gains of $8.3 million that increased net earnings by approximately $5.5 million or approximately $0.06 per diluted share. Taking into account the financing gains and losses and the benefit from the $5.1 million tax refund in 2014, adjusted diluted earnings per share(1) for the year ended December 31, 2015 grew 98.2% to $1.13 compared to the same period a year ago.
- Free Cash Flow(1) for the year ended December 31, 2015 increased approximately $51 million, or 72.2% to $121.2 million, surpassing $100 million for the first time in Company history.
Commenting on the full year results, Craig Ramsey, executive vice president and chief financial officer said, “From start to finish, 2015 was a record setting year for AMC, as our theatres continue to be among the most productive in the nation. Importantly, the earnings we have reported today are being converted into strong free cash flow, available for investment in our initiatives and guest centric strategies, as well as potential acquisition opportunities. We expect to continue that trend by elevating the guest experience to new heights as we seek to build an even stronger bond with our existing guests and introduce the AMC experience to new consumers. As we look ahead to 2016 we expect to continue our growth through disciplined capital allocation while actively managing our operating efficiencies. We believe the future looks very bright at AMC.”
(1) Reconciliations and definitions of non-GAAP financial measures are provided in the financial schedules accompanying this press release.
Conference Call / Webcast Information
The Company will host a conference call via webcast for investors and other interested parties beginning at 7:30 a.m. CT/8:30 a.m. ET on Monday, February 29, 2016. To listen to the conference call via the internet, please visit the investor relations section of the AMC website at www.investor.amctheatres.com for a link to the webcast. Investors and interested parties should go to the website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.
Participants may also listen to the call by dialing (877) 407-3982, or (201) 493-6780 for international participants.
A podcast and archive of the webcast will be available on the Company’s website after the call for a limited time.
About AMC Entertainment Holdings, Inc.
AMC (NYSE:AMC) is the guest experience leader with 387 locations and 5,426 screens located primarily in the United States. AMC has propelled innovation in the theatrical exhibition industry and continues today by delivering more comfort and convenience, enhanced food & beverage, greater engagement and loyalty, premium sight & sound, and targeted programming. AMC operates the most productive theatres in the country’s top markets, including No. 1 market share in the top three markets (NY, LA, Chicago). www.amctheatres.com.
Website Information
This press release, along with other news about AMC, is available at www.amctheatres.com. We routinely post information that may be important to investors in the Investor Relations section of our website, www.investor.amctheatres.com. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD, and we encourage investors to consult that section of our website regularly for important information about AMC. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. Investors interested in automatically receiving news and information when posted to our website can also visit www.investor.amctheatres.com to sign up for E-mail Alerts.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “plan,” “estimate,” “will,” “project,” “intend,” “expect,” “should,” “believe,” “continue,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, execution risks related to the integration of Starplex Cinemas into our business; our ability to achieve expected synergies and performance from our acquisition of Starplex Cinemas; our ability to realize expected benefits from our acquisition of Starplex Cinemas; decreased supply, quality and performance of, and delays in our access to, motion pictures; risks relating to our significant indebtedness; our ability to utilize net operating loss carry forwards to reduce future tax liability; increased competition in the geographic areas in which we operate and from alternative film delivery methods and other forms of entertainment; continued effectiveness of our strategic initiatives; the impact of shorter theatrical exclusive release windows; our ability to attract and retain senior executives and other key personnel; the impact of governmental regulation, including anti-trust review of our acquisition opportunities and investigations concerning potentially anticompetitive conduct, including film clearances and participation in certain joint ventures; unexpected delays and costs related to our optimization of our theatre circuit; and failures, unavailability or security breaches of our information systems.
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 these risks and uncertainties, see the section entitled “Risk Factors” in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 10, 2015, and our other public filings. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances, except as required by applicable law.
| AMC Entertainment Holdings, Inc. | ||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||
| For the Fiscal Periods Ended 12/31/15 and 12/31/14 | ||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| 3 Months Ended | 12 Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Revenues | ||||||||||||||||||
| Admissions | $ | 498,699 | $ | 460,253 | $ | 1,892,037 | $ | 1,765,388 | ||||||||||
| Food and beverage | 242,282 | 215,309 | 910,086 | 797,735 | ||||||||||||||
| Other theatre | 42,876 | 36,593 | 144,777 | 132,267 | ||||||||||||||
| Total revenues | 783,857 | 712,155 | 2,946,900 | 2,695,390 | ||||||||||||||
| Operating costs and expenses | ||||||||||||||||||
| Film exhibition costs | 269,563 | 244,318 | 1,021,457 | 934,246 | ||||||||||||||
| Food and beverage costs | 33,174 | 29,318 | 128,569 | 111,991 | ||||||||||||||
| Operating expense | 207,545 | 186,413 | 795,722 | 733,338 | ||||||||||||||
| Rent | 119,018 | 114,176 | 467,822 | 455,239 | ||||||||||||||
| General and administrative: | ||||||||||||||||||
| Merger, acquisition and transaction costs | 808 | 149 | 3,398 | 1,161 | ||||||||||||||
| Other | 16,828 | 18,543 | 58,212 | 64,873 | ||||||||||||||
| Depreciation and amortization | 59,927 | 55,467 | 232,961 | 216,321 | ||||||||||||||
| Impairment of long-lived assets | 1,702 | 3,149 | 1,702 | 3,149 | ||||||||||||||
| Operating costs and expenses | 708,565 | 651,533 | 2,709,843 | 2,520,318 | ||||||||||||||
| Operating income | 75,292 | 60,622 | 237,057 | 175,072 | ||||||||||||||
| Other expense (income): | ||||||||||||||||||
| Other expense (income) | 1,411 | 53 | 10,684 | (8,344 | ) | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Corporate borrowings | 23,379 | 26,528 | 96,857 | 111,072 | ||||||||||||||
| Capital and financing lease obligations | 2,241 | 2,408 | 9,231 | 9,867 | ||||||||||||||
| Equity in earnings of non-consolidated entities | (15,595 | ) | (9,315 | ) | (37,131 | ) | (26,615 | ) | ||||||||||
| Investment income | (1,076 | ) | (641 | ) | (6,115 | ) | (8,145 | ) | ||||||||||
| Total other expense | 10,360 | 19,033 | 73,526 | 77,835 | ||||||||||||||
| Earnings from continuing operations before income taxes | 64,932 | 41,589 | 163,531 | 97,237 | ||||||||||||||
| Income tax provision | 23,315 | 11,770 | 59,675 | 33,470 | ||||||||||||||
| Earnings from continuing operations | 41,617 | 29,819 | 103,856 | 63,767 | ||||||||||||||
| Gain from discontinued operations, net of income taxes | - | - | - | 313 | ||||||||||||||
| Net earnings | $ | 41,617 | $ | 29,819 | $ | 103,856 | $ | 64,080 | ||||||||||
| Diluted earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.42 | $ | 0.30 | $ | 1.06 | $ | 0.65 | ||||||||||
| Gain from discontinued operations | - | - | - | 0.01 | ||||||||||||||
| Diluted earnings per share | $ | 0.42 | $ | 0.30 | $ | 1.06 | $ | 0.66 | ||||||||||
| Adjusted diluted earnings per share (1): | ||||||||||||||||||
| Adjusted earnings from continuing operations | $ | 0.43 | $ | 0.27 | $ | 1.13 | $ | 0.56 | ||||||||||
| Adjusted gain from discontinued operations | - | - | - | 0.01 | ||||||||||||||
| Adjusted diluted earnings per share | $ | 0.43 | $ | 0.27 | $ | 1.13 | $ | 0.57 | ||||||||||
| Average shares outstanding diluted | 98,147 | 97,865 | 98,029 | 97,700 | ||||||||||||||
|
Balance Sheet Data (at period end): |
|||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| As of December 31, | |||||||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||||||
| Cash and equivalents | $ | 211,250 | $ | 218,206 | |||||||||||||||||||
| Corporate borrowings | 1,934,561 | 1,791,005 | |||||||||||||||||||||
| Other long-term liabilities | 462,626 | 419,717 | |||||||||||||||||||||
| Capital and financing lease obligations | 101,864 | 109,258 | |||||||||||||||||||||
| Stockholders' equity | 1,538,703 | 1,512,732 | |||||||||||||||||||||
| Total assets | 5,110,085 | 4,763,732 | |||||||||||||||||||||
|
Other Data: |
|||||||||||||||||||||||
| (in thousands, except operating data) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
| Net cash provided by operating activities | 258,332 | 178,712 | 467,557 | 297,302 | |||||||||||||||||||
| Capital expenditures | (117,849 | ) | (87,766 | ) | (333,423 | ) | (270,734 | ) | |||||||||||||||
| Screen additions | 11 | 17 | 23 | 29 | |||||||||||||||||||
| Screen acquisitions | 370 | 6 | 410 | 36 | |||||||||||||||||||
| Screen dispositions | 14 | 7 | 14 | 33 | |||||||||||||||||||
| Construction openings (closures), net | 122 | (15 | ) | 60 | (48 | ) | |||||||||||||||||
| Average screens-continuing operations | 4,988 | 4,874 | 4,933 | 4,871 | |||||||||||||||||||
| Number of screens operated | 5,426 | 4,947 | 5,426 | 4,947 | |||||||||||||||||||
| Number of theatres operated | 387 | 346 | 387 | 346 | |||||||||||||||||||
| Screens per theatre | 14.0 | 14.3 | 14.0 | 14.3 | |||||||||||||||||||
| Attendance (in thousands)-continuing operations | 51,028 | 48,229 | 196,902 | 187,241 | |||||||||||||||||||
|
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share: |
||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| Earnings from continuing operations: | $ | 41,617 | $ | 29,819 | $ | 103,856 | $ | 63,767 | ||||||||||||||||
|
Loss (gain) related to redemption of debt, net of related tax effects |
904 | - | 6,784 | (5,474 | ) | |||||||||||||||||||
| Non-recurring California tax refund, net of related tax effects | - | (3,345 | ) | - | (3,345 | ) | ||||||||||||||||||
|
Earnings from continuing operations, excluding loss (gain) related to redemption of debt and California tax refund, net of related tax effects |
$ | 42,521 | $ | 26,474 | $ | 110,640 | $ | 54,948 | ||||||||||||||||
| Average shares outstanding, diluted | 98,147 | 97,865 | 98,029 | 97,700 | ||||||||||||||||||||
|
Adjusted diluted earnings per share from continuing operations (1) |
$ | 0.43 | $ | 0.27 | $ | 1.13 | $ | 0.56 | ||||||||||||||||
|
Diluted earnings per share from continuing operations |
$ | 0.42 | $ | 0.30 | $ | 1.06 | $ | 0.65 | ||||||||||||||||
| 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| Net Earnings: | $ | 41,617 | $ | 29,819 | $ | 103,856 | $ | 64,080 | ||||||||||||||||
|
Loss (gain) related to redemption of debt, net of related tax effects |
904 | - | 6,784 | (5,474 | ) | |||||||||||||||||||
| Non-recurring California tax refund, net of related tax effects | - | (3,345 | ) | - | (3,345 | ) | ||||||||||||||||||
|
Net Earnings, excluding loss (gain) related to redemption of debt and California tax refund, net of related taxes |
$ | 42,521 | $ | 26,474 | $ | 110,640 | $ | 55,261 | ||||||||||||||||
| Average shares outstanding, diluted | 98,147 | 97,865 | 98,029 | 97,700 | ||||||||||||||||||||
| Adjusted diluted earnings per share (1) | $ | 0.43 | $ | 0.27 | $ | 1.13 | $ | 0.57 | ||||||||||||||||
| Diluted Earnings per share | $ | 0.42 | $ | 0.30 | $ | 1.06 | $ | 0.66 | ||||||||||||||||
|
Reconciliation of Adjusted EBITDA: |
||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| Earnings from continuing operations | $ | 41,617 | $ | 29,819 | $ | 103,856 | $ | 63,767 | ||||||||||||||||
| Plus: | ||||||||||||||||||||||||
| Income tax provision | 23,315 | 11,770 | 59,675 | 33,470 | ||||||||||||||||||||
| Interest expense | 25,620 | 28,936 | 106,088 | 120,939 | ||||||||||||||||||||
| Depreciation and amortization | 59,927 | 55,467 | 232,961 | 216,321 | ||||||||||||||||||||
| Impairment of long-lived assets | 1,702 | 3,149 | 1,702 | 3,149 | ||||||||||||||||||||
| Certain operating expenses (3) | 5,460 | 3,961 | 16,773 | 21,686 | ||||||||||||||||||||
| Equity in earnings of non-consolidated entities | (15,595 | ) | (9,315 | ) | (37,131 | ) | (26,615 | ) | ||||||||||||||||
| Cash distributions from non-consolidated entities | 9,755 | 11,485 | 34,083 | 35,243 | ||||||||||||||||||||
| Investment income | (1,076 | ) | (641 | ) | (6,115 | ) | (8,145 | ) | ||||||||||||||||
| Other expense (income) (4) | 1,411 | 53 | 10,684 | (8,344 | ) | |||||||||||||||||||
| General and administrative expense-unallocated: | ||||||||||||||||||||||||
| Merger, acquisition and transaction costs | 808 | 149 | 3,398 | 1,161 | ||||||||||||||||||||
| Stock-based compensation expense (5) | 1,103 | 5,221 | 10,480 | 11,293 | ||||||||||||||||||||
| Adjusted EBITDA (2) | $ | 154,047 | $ | 140,054 | $ | 536,454 | $ | 463,925 | ||||||||||||||||
| Adjusted EBITDA Margin (6) | 19.7 | % | 19.7 | % | 18.2 | % | 17.2 | % | ||||||||||||||||
|
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow: |
||||||||||||
| (dollars in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| 12 Months Ended | ||||||||||||
| December 31, | ||||||||||||
| 2015 | 2014 | |||||||||||
| Net cash provided by operating activities | $ | 467,557 | $ | 297,302 | ||||||||
| Plus: | ||||||||||||
| Equity in earnings from equity method investees | (27,528 | ) | (26,513 | ) | ||||||||
| Deferred rent (excluding digital equipment rent) | 24,227 | 19,340 | ||||||||||
| Net periodic benefit credit | 18,208 | 3,418 | ||||||||||
| Change in working capital, accruals and other | (4,667 | ) | 75,317 | |||||||||
|
General and administrative expense: merger, acquisition and transaction costs |
3,398 | 1,161 | ||||||||||
| Investment Income | (6,115 | ) | (8,145 | ) | ||||||||
| Gain from discontinued operations | - | (313 | ) | |||||||||
|
Capital expenditures (excluding change in construction payables) |
(338,813 | ) | (275,090 | ) | ||||||||
| Principal payments under Term Loan | (5,813 | ) | (7,750 | ) | ||||||||
|
Principal payments under capital and financing lease obligations |
(7,840 | ) | (6,941 | ) | ||||||||
| Principal payments under Promissory Note | (1,389 | ) | (1,389 | ) | ||||||||
| Free Cash Flow (7) | $ | 121,225 | $ | 70,397 | ||||||||
|
|
||||||||||||
|
Reconciliation of Adjusted EBITDA to Free Cash Flow: |
||||||||||||
| (dollars in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| 12 Months Ended | ||||||||||||
| December 31, | ||||||||||||
| 2015 | 2014 | |||||||||||
| Adjusted EBITDA (2) | $ | 536,454 | $ | 463,925 | ||||||||
| Minus: | ||||||||||||
|
Cash distributions from non-consolidated entities |
34,083 | 35,243 | ||||||||||
| Income taxes, net | 5,351 | 1,084 | ||||||||||
| Cash interest expense | 105,286 | 125,549 | ||||||||||
|
Capital expenditures (excluding change in construction payables) |
338,813 | 275,090 | ||||||||||
| Landlord contributions | (83,346 | ) | (59,518 | ) | ||||||||
| Principal payments under Term Loan | 5,813 | 7,750 | ||||||||||
|
Principal payments under capital and financing lease obligations |
7,840 | 6,941 | ||||||||||
| Principal payments under Promissory Note | 1,389 | 1,389 | ||||||||||
| Free Cash Flow (7) | $ | 121,225 | $ | 70,397 | ||||||||
| 1) | We have included adjusted diluted earnings per share from continuing operations, which is diluted earnings per share from continuing operations excluding gains or losses on redemption of debt, net of related tax effects, and a non-recurring California tax refund, net of related tax effects and adjusted diluted earnings per share, which is diluted earnings per share excluding gains or losses on redemption of debt, net of related tax effects, and a non-recurring California tax refund, net of related tax effects because we believe it provides investors with a useful industry comparative and they are financial measures used by management to assess our performance. | ||
| 2) | We present Adjusted EBITDA as a supplemental measure of our performance that is commonly used in our industry. We define Adjusted EBITDA as earnings (loss) from continuing operations plus (i) income tax provision, (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance and to include any cash distributions of earnings from our equity method investees. These further adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net earnings as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with U.S. GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. | ||
| Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. For example, | |||
| Adjusted EBITDA: | |||
|
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| 3) | Amounts represent preopening expense, theatre and other closure expense, deferred digital equipment rent expense, and disposition of assets and other gains included in operating expenses. | ||
| 4) | Other expense for the three months ended December 31, 2015 was due to modification of our Senior Secured Credit Agreement. Other expense for the twelve months ended December 31, 2015 was due to a net loss on extinguishment of indebtedness related to the cash tender offer and redemption of the Notes due 2020 and modification of our Senior Secured Credit Agreement. Other income for the twelve months ended December 31, 2014 was due to net gains on extinguishment of indebtedness related to the cash tender offer and redemption of the Notes due 2019. | ||
| 5) | Non-cash expense included in General and Administrative: Other | ||
| 6) | We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Total Revenues. | ||
| 7) | Free Cash Flow is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to cash flows from operating activities as a measure of liquidity (as determined in accordance with U.S. GAAP). We define free cash flow as adjusted EBITDA minus the sum of cash distributions from non-consolidated entities, cash taxes, cash interest, capital expenditures (excluding change in construction payables) net of landlord contributions, mandatory payments of principal under any credit facility and payments under capital lease obligations and financing lease obligations. This non-GAAP financial measure may not be comparable to similarly titled measures reported by other companies. We have included Free Cash Flow as we believe it provides a useful measure of cash flows generated by our operations, and because it is used by management to assess the liquidity of our Company. | ||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160229005612/en/
AMC ENTERTAINMENT HOLDINGS, INC.
INVESTOR RELATIONS:
John
Merriwether, 866-248-3872
InvestorRelations@amctheatres.com
or
MEDIA:
Ryan
Noonan, 913-213-2183
rnoonan@amctheatres.com
Source: AMC Entertainment Holdings, Inc.
Released February 29, 2016