AMC Entertainment Holdings, Inc. Announces Record First Quarter 2015 Results

Strong Start to 2015 Highlighted by Strategic Initiative Success

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 first quarter ended March 31, 2015.

Highlights for the first quarter 2015 include the following:

  • Total revenues were a first quarter record $653.1 million compared to total revenues of $622.8 million for the three months ended March 31, 2014.
  • Admissions revenues were $418.7 million compared to $409.0 million for the same period a year ago. Average ticket price was $9.35 compared to $9.12 for the same period a year ago.
  • Food and beverage revenues were a first quarter record $200.5 million, compared to $181.8 million for the quarter ended March 31, 2014. Food and beverage revenues per patron increased 10.6% to $4.48, representing the highest in the history of the Company.
  • Adjusted EBITDA(1) was $115.7 million and Adjusted EBITDA Margin(1) was 17.7%, compared to $102.0 million and 16.4%, respectively, for the three months ended March 31, 2014. Included in Adjusted EBITDA is a gain of $18.1 million related to the termination of a postretirement health benefit plan. The gain was recorded as a reduction of general and administrative expenses. The prior year’s first quarter included credits related to net periodic benefit costs for the postretirement medical plan, theatre support center rent, employee incentive plans and expenses related to abandoned projects of approximately $2.3 million.
  • Earnings (loss) from continuing operations and diluted earnings (loss) per share from continuing operations were $6.1 million and $0.06, respectively, compared to $(4.8) million and $(0.05), respectively, for the three months ended March 31, 2014.
  • Net earnings (loss) and diluted earnings (loss) per share were $6.1 million and $0.06, respectively, compared $(4.5) million and $(0.05), respectively, for the three months ended March 31, 2014.

“We are pleased with our start to 2015, as AMC’s unique connection with guests and unrelenting innovation in comfort and convenience, enhanced food and beverage, and premium sight and sound are generating solid results,” said Gerry Lopez, AMC president and chief executive officer. “Our comprehensive portfolio of strategic initiatives is transforming the movie-going experience for our guests as our food and beverage enhancements generated another company record and all-time high $4.48 in food and beverage revenues per patron, a 10.6% increase over the same quarter a year ago. Similarly, compared to a year ago, admissions revenues per screen increased 11.4% at our 60 recliner theatres. These initiatives are powerful drivers of value for both our guests and shareholders.”

(1) (Reconciliations and definitions of non-GAAP financial measures are provided in the financial schedules accompanying this press release.)

CFO Commentary

Commentary on the quarter by Craig Ramsey, AMC's executive vice president and chief financial officer, is available at

Conference Call / Webcast Information

The Company will host a conference call via webcast for investors and other interested parties beginning at 4:00 p.m. CT/5:00 p.m. ET on Wednesday, April 29, 2015. To listen to the conference call via the internet, please visit the investor relations section of the AMC website at 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 347 locations and 4,972 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).

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,” “estimate,” “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, 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; the impact of governmental regulation, including anti-trust review of our acquisition opportunities; 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 3/31/15 and 3/31/14
(dollars in thousands, except per share data)
  Quarter Ended
March 31,
2015 2014
Admissions $ 418,694 $ 409,020
Food and beverage 200,524 181,764
Other theatre 33,906 31,974
Total revenues   653,124     622,758  
Operating costs and expenses
Film exhibition costs 223,088 212,100
Food and beverage costs 28,508 25,123
Operating expense 187,258 179,693
Rent 117,921 114,944
General and administrative:
Merger, acquisition and transaction costs 1,578 362
Other 4,941 18,220
Depreciation and amortization 57,777 54,777
Operating costs and expenses   621,071     605,219  
Operating income 32,053 17,539
Other expense (income)
Other income - (4,229 )
Interest expense:
Corporate borrowings 26,079 29,658
Capital and financing lease obligations 2,373 2,525
Equity in (earnings) losses of non-consolidated entities (1,324 ) 5,384
Investment income (5,143 ) (7,857 )
Total other expense   21,985     25,481  
Earnings (loss) from continuing operations before income taxes 10,068 (7,942 )
Income tax provision (benefit) 3,930 (3,100 )
Earnings (loss) from continuing operations 6,138 (4,842 )
Gain from discontinued operations, net of income taxes   -     334  
Net earnings (loss) $ 6,138   $ (4,508 )
Diluted earnings (loss) per share:
Earnings (loss) from continuing operations $ 0.06 $ (0.05 )
Earnings from discontinued operations   -     -  
Net earnings (loss) per share $ 0.06   $ (0.05 )
Average shares outstanding diluted   97,919     97,390  
Balance Sheet Data (at period end):
(dollars in thousands)
  As of
March 31, December 31,
2015   2014
Cash and equivalents $ 144,804 $ 218,206
Corporate borrowings 1,787,501 1,791,005
Other long-term liabilities 419,610 419,717
Capital and financing lease obligations 107,818 109,258
Stockholders' equity 1,496,382 1,512,732
Total assets 4,662,755 4,763,732
Other Data:
(in thousands, except operating data)
Quarter Ended
March 31,
2015 2014
Net cash provided by (used in) operating activities 21,563 (1,575 )
Capital expenditures (69,590 ) (55,599 )
Screen acquisitions 8 1
Screen dispositions - 13
Construction openings (closures), net 4 (19 )
Average screens-continuing operations 4,884 4,852
Number of screens operated 4,972 4,945
Number of theatres operated 347 341
Screens per theatre 14.3 14.5
Attendance (in thousands) -continuing operations 44,758 44,825
Reconciliation of Adjusted EBITDA:
(dollars in thousands)
Quarter Ended
March 31,
2015 2014
Earnings (loss) from continuing operations $ 6,138 $ (4,842 )
Income tax provision (benefit) 3,930 (3,100 )
Interest expense 28,452 32,183
Depreciation and amortization 57,777 54,777
Certain operating expenses (2) 4,064 6,156
Equity in (earnings) losses of non-consolidated entities (1,324 ) 5,384
Cash distributions from non-consolidated entities 14,486 16,825
Investment expense (income) (5,143 ) (7,857 )
Other income (3) - (4,229 )
General and administrative expense-unallocated:
Merger, acquisition and transaction costs 1,578 362
Stock-based compensation expense (4)   5,739     6,357  
Adjusted EBITDA (1) $ 115,697   $ 102,016  
Adjusted EBITDA Margin (5)   17.7 %   16.4 %

(1)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 (benefit), (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 (loss) 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:

  • does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;
  • does not reflect changes in, or cash requirements for, our working capital needs;
  • does not reflect the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt;
  • excludes income tax payments that represent a reduction in cash available to us; and
  • does not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future.

(2) 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.

(3) Other income for the three months ended March 31, 2014 was due to net gains on extinguishment of indebtedness related to the cash tender offer and redemption of the Notes due 2019 of $4,383,000, partially offset by other expenses of $154,000.

(4) Non-cash expense included in General and administrative: Other

(5) We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Total Revenues.

AMC Entertainment Holdings, Inc.
Investor Relations:
John Merriwether, 866-248-3872
Media Contact:
Ryan Noonan, 913-213-2183

Source: AMC Entertainment Holdings, Inc.