Form: 8-K

Current report filing

August 1, 2017

8-K: Current report filing

Published on August 1, 2017

Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma condensed combined financial information of AMC Entertainment Holdings, Inc. (“AMC” or the “Company”) is presented to illustrate the estimated effects of (i) the acquisition of Odeon and UCI Cinemas Holdings Limited (“Odeon” or the “Odeon Acquisition”), the acquisition of Carmike Cinemas, Inc. (“Carmike or the “Carmike Acquisition”) and the acquisition of Nordic Cinema Group Holdings AB (“Nordic or the “Nordic Acquisition”); (ii) the incurrence of $595,000,000 aggregate principal amount of Senior Subordinated Notes due 2026 (the “Dollar Notes”) and £250,000,000 aggregate principal amount of Senior Subordinated Notes due 2024 (the “Sterling Notes”) and $500,000,000 aggregate principal amount of incremental term loans (the “New Term Loans due 2023”) used to fund the Odeon Acquisition; (iii) the issuance of 4,536,466 shares ($156,735,000) of the Company’s Class A Common Stock in a private placement in connection with the Odeon Acquisition and the issuance of 8,189,808 shares ($273,949,000) of the Company’s Class A Common Stock in connection with the Carmike Acquisition, (iv) the issuance of $475,000,000 aggregate principal amount of 6.125% Senior Subordinated Notes due 2027 and £250,000,000 aggregate principal amount of 6.375% Senior Subordinated Notes due 2024 used to fund the Nordic (clauses (ii), (iii) and (iv) collectively referred to as the “Financings”); (v) the issuance of 20,330,874 shares ($640,423,000 at an offering price of $31.50 per share of the Company’s Class A Common Stock to repay the $350,000,000 aggregate principal amount of Bridge Loans incurred to partially finance the Carmike Acquisition and for general and corporate purposes (the “2017 Equity Offering”) and (vi) the settlement the Company entered into with the United States Department of Justice, pursuant to which the Company agreed to divest theatres in 15 local markets where it has an overlap with Carmike (the “Theatre Divestitures”).

 

The pro forma financial information is based in part on certain assumptions regarding the foregoing transactions that we believe are factually supportable and expected to have a continuing impact on our consolidated results. The unaudited pro forma condensed combined statements of operations for the three months ended March 31, 2016, the three and six months ended June 30, 2016, the three and nine months ended September 30, 2016, the three months ended December 31, 2016, the year ended December 31, 2016 and the three months ended March 31, 2017, combine the historical consolidated statements of operations of the Company, Odeon, Carmike and Nordic, giving effect to the Odeon Acquisition, the Carmike Acquisition, the Nordic Acquisition, the Financings, the Theatre Divestitures and the 2017 Equity Offering as if they had been completed on January 1, 2016. The historical consolidated financial information for Odeon and Nordic have been adjusted to comply with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The classification of certain items presented by Odeon under UK Generally Accepted Accounting Practice (“UK GAAP”) and by Nordic under International Financial Reporting Standards (“IFRS”) has been modified in order to align with the presentation used by the Company under U.S. GAAP.  In addition to the U.S. GAAP adjustments and the reclassifications, amounts for Odeon and Nordic have also been translated to U.S. dollars. The unaudited pro forma condensed combined financial statements should be read in conjunction with the accompanying notes to the unaudited pro forma condensed combined financial statements. In addition, the unaudited pro forma condensed combined financial information was based on, and should be read in conjunction with, the audited consolidated financial statements of the Company as of and for the year ended December 31, 2016, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, the unaudited consolidated financial statements of Carmike for the nine months ended September 30, 2016, which are contained in Carmike’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, and the unaudited condensed consolidated financial statements of Odeon prepared in accordance with UK GAAP as of and for the nine months ended September 30, 2016, which have been filed as an exhibit to the Company’s Current Report on Form 8-K dated as of  November 30, 2016.

 

The unaudited pro forma condensed combined financial information has been prepared by the Company, as the acquirer, using the acquisition method of accounting in accordance with U.S. GAAP. The acquisition method of accounting is dependent upon certain valuation and other studies that have yet to commence or progress to a stage where there is sufficient information for a definitive measurement. The assets and liabilities of Odeon, Carmike and Nordic have been measured based on various preliminary estimates using assumptions that the Company believes are reasonable based on information that is currently available. The preliminary purchase price allocations for Odeon,  Carmike and Nordic are subject to revision as a more detailed analysis is completed and additional information on the fair value of Odeon’s, Carmike’s and Nordic’s assets and liabilities becomes available. The final allocation of the purchase price, which will be based upon actual tangible and intangible assets acquired as well as

 



 

liabilities assumed, will be determined within one year from the completion of the Odeon Acquisition, Carmike Acquisition and Nordic Acquisition respectively, and could differ materially from the unaudited pro forma condensed combined financial information presented here. Any change in the fair value of the net assets of Odeon, Carmike and Nordic will change the amount of the purchase price allocable to goodwill and will also change any resultant depreciation and amortization or other similarly impacted income statement amounts. The pro forma adjustments are preliminary and have been made solely for the purpose of providing unaudited pro forma condensed combined financial information prepared in accordance with the rules and regulations of the Securities and Exchange Commission.

 

The unaudited pro forma condensed combined financial information does not purport to represent the actual results of operations that the Company, Odeon, Carmike and Nordic would have achieved had the companies been combined during the periods presented in the unaudited pro forma condensed combined financial statements and is not intended to project the future results of operations that the combined company may achieve after the Odeon Acquisition, Carmike Acquisition and Nordic Acquisition. The unaudited pro forma condensed combined financial information does not reflect any potential cost savings that may be realized as a result of the Odeon Acquisition, Carmike Acquisition and Nordic Acquisition and also does not reflect any restructuring or integration-related costs to achieve those potential cost savings. No historical transactions between Odeon, Carmike, Nordic and the Company during the periods presented in the unaudited pro forma condensed combined financial statements have been identified at this time.

 

The unaudited pro forma condensed combined financial information does not give effect to the settlement we entered into with the United States Department of Justice, pursuant to which we agreed to divest most of our holdings and relinquish all of our governance rights in NCM, our joint venture for cinema screen advertising, and (ii) agreed to transfer 24 theatres with a total of 384 screens to the network of Screenvision LLC, the cinema screen advertising business in which Carmike participates.

 

The Company previously filed unaudited pro forma condensed combined statements of operations in its 8-K/A on March 13, 2017.  The Company is furnishing the following pro forma condensed combined statements of operations for all reported quarterly periods in calendar 2016 and 2017 on both a consolidated basis and on a U.S. markets and International markets reporting segments basis and has updated Note 5 from the previously filed 8-K/A to include the pro forma impacts of the Nordic Acquisition, the Nordic Financing and the Theatre Divestitures for 2017.

 



 

Unaudited interim and year to date pro forma condensed combined statements of operations for 2016 and 2017 are as follows:

 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

March 31, 2016

 

March 31, 2016

 

March 31, 2016

 

March 31, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

766,017

 

$

297,309

 

$

206,188

 

$

105,466

 

(292

)(d)

$

1,358,034

 

 

 

 

 

 

 

 

 

 

 

(2,272

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(5,559

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(8,823

)(e)

 

 

Cost of operations

 

498,632

 

186,532

 

136,943

 

64,547

 

(3,609

)(e)

876,835

 

 

 

 

 

 

 

 

 

 

 

(6,210

)(e)

 

 

Rent

 

124,584

 

43,368

 

25,878

 

9,990

 

509

(d)

200,980

 

 

 

 

 

 

 

 

 

 

 

959

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

145

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(716

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,014

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,503

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

4,604

 

448

 

3,752

 

—

 

(3,062

)(b)

1,645

 

 

 

 

 

 

 

 

 

 

 

(345

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(3,752

)(b)

 

 

Other

 

18,516

 

10,932

 

8,570

 

5,346

 

—

 

43,364

 

Depreciation and amortization

 

60,430

 

22,920

 

15,157

 

5,064

 

10,142

(d)

123,640

 

 

 

 

 

 

 

 

 

 

 

8,651

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,353

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(706

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(371

)(e)

 

 

Impairment of long-lived assets

 

—

 

—

 

280

 

—

 

—

 

280

 

Operating costs and expenses

 

706,766

 

264,200

 

190,580

 

84,947

 

251

 

1,246,744

 

Operating income

 

59,251

 

33,109

 

15,608

 

20,519

 

(17,197

)

111,290

 

Other expense (income)

 

26

 

42,935

 

—

 

—

 

242

(d)

43,203

 

Interest expense

 

27,062

 

45,221

 

12,386

 

10,209

 

(36,312

)(a)

71,482

 

 

 

 

 

 

 

 

 

 

 

18,673

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(3,284

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(12,386

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(9,856

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,516

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(166

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(4,264

)

84

 

(414

)

(1,872

)

—

 

(6,466

)

Investment (income) expense

 

(9,954

)

—

 

—

 

1,537

 

(1,968

)(d)

(10,385

)

Total other expense

 

12,870

 

88,240

 

11,972

 

9,874

 

(25,122

)

97,834

 

Earnings (loss) before income taxes

 

46,381

 

(55,131

)

3,636

 

10,645

 

7,925

 

13,456

 

Income tax provision (benefit)

 

18,090

 

611

 

1,411

 

2,579

 

(11,268

)(c)

8,721

 

 

 

 

 

 

 

 

 

 

 

(2,702

)(d)

 

 

Net earnings (loss)

 

$

28,291

 

$

(55,742

)

$

2,225

 

$

8,066

 

$

21,895

 

$

4,735

 

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

763,962

 

$

224,907

 

$

204,674

 

$

66,442

 

(292

)(d)

$

1,243,298

 

 

 

 

 

 

 

 

 

 

 

(1,400

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(5,845

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(9,150

)(e)

 

 

Cost of operations

 

497,066

 

154,429

 

140,260

 

48,858

 

(3,737

)(e)

830,122

 

 

 

 

 

 

 

 

 

 

 

(6,754

)(e)

 

 

Rent

 

122,819

 

39,860

 

26,876

 

9,645

 

5,025

(d)

200,653

 

 

 

 

 

 

 

 

 

 

 

959

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

147

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(737

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,147

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,574

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

5,548

 

9,147

 

3,856

 

—

 

(5,548

)(b)

—

 

 

 

 

 

 

 

 

 

 

 

(9,147

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(3,856

)(b)

 

 

Other

 

20,634

 

13,325

 

7,565

 

4,217

 

(568

)(d)

45,173

 

Depreciation and amortization

 

62,291

 

23,085

 

15,311

 

5,426

 

10,453

(d)

126,294

 

 

 

 

 

 

 

 

 

 

 

8,497

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,194

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(591

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(372

)(e)

 

 

Impairment of long-lived assets

 

—

 

158

 

1,980

 

—

 

—

 

2,138

 

Operating costs and expenses

 

708,358

 

240,004

 

195,848

 

68,146

 

(7,976

)

1,204,380

 

Operating income (loss)

 

55,604

 

(15,097

)

8,826

 

(1,704

)

(8,711

)

38,918

 

Other expense (income)

 

(110

)

31,564

 

—

 

—

 

1,373

(d)

32,827

 

Interest expense

 

27,035

 

44,948

 

12,382

 

8,511

 

(36,013

)(a)

71,000

 

 

 

 

 

 

 

 

 

 

 

18,673

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(3,241

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(12,382

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(8,697

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,530

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(165

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(11,849

)

261

 

(1,101

)

(189

)

—

 

(12,878

)

Investment (income) expense

 

176

 

—

 

—

 

4,078

 

(3,659

)(d)

595

 

Total other expense

 

15,252

 

76,773

 

11,281

 

12,400

 

(24,162

)

91,544

 

Earnings (loss) before income taxes

 

40,352

 

(91,870

)

(2,455

)

(14,104

)

15,451

 

(52,626

)

Income tax provision (benefit)

 

16,385

 

(1,274

)

(857

)

(2,780

)

(10,147

)(c)

(1,344

)

 

 

 

 

 

 

 

 

 

 

(2,671

)(d)

 

 

Net earnings (loss)

 

$

23,967

 

$

(90,596

)

$

(1,598

)

$

(11,324

)

$

28,269

 

$

(51,282

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Six Months Ended

 

Six Months Ended

 

Six Months Ended

 

Six Months Ended

 

Pro Forma

 

AMC

 

 

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,529,979

 

$

522,216

 

$

410,862

 

$

171,908

 

$

(584

)(d)

$

2,601,332

 

 

 

 

 

 

 

 

 

 

 

(3,672

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(11,404

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(17,973

)(e)

 

 

Cost of operations

 

995,698

 

340,961

 

277,203

 

113,405

 

(7,346

)(e)

1,706,957

 

 

 

 

 

 

 

 

 

 

 

(12,964

)(e)

 

 

Rent

 

247,403

 

83,228

 

52,754

 

19,635

 

5,534

(d)

401,633

 

 

 

 

 

 

 

 

 

 

 

1,918

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(2,440

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

292

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,453

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(2,161

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(3,077

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

10,152

 

9,595

 

7,608

 

—

 

(8,610

)(b)

1,645

 

 

 

 

 

 

 

 

 

 

 

(9,492

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(7,608

)(b)

 

 

Other

 

39,150

 

24,257

 

16,135

 

9,563

 

(568

)(d)

88,537

 

Depreciation and amortization

 

122,721

 

46,005

 

30,468

 

10,490

 

20,595

(d)

249,934

 

 

 

 

 

 

 

 

 

 

 

17,148

(d)

 

 

 

 

 

 

 

 

 

 

 

 

4,547

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,297

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(743

)(e)

 

 

Impairment of long-lived assets

 

—

 

158

 

2,260

 

—

 

—

 

2,418

 

Operating costs and expenses

 

1,415,124

 

504,204

 

386,428

 

153,093

 

(7,725

)

2,451,124

 

Operating income

 

114,855

 

18,012

 

24,434

 

18,815

 

(25,908

)

150,208

 

Other expense (income)

 

(84

)

74,499

 

—

 

—

 

1,615

(d)

76,030

 

Interest expense

 

54,097

 

90,169

 

24,768

 

18,720

 

(72,325

)(a)

142,482

 

 

 

 

 

 

 

 

 

 

 

37,346

(a)

 

 

 

 

 

 

 

 

 

 

 

 

3,466

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(17,366

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

15,378

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(6,525

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(24,768

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,882

(d)

 

 

 

 

 

 

 

 

 

 

 

 

6,224

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(18,553

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

15,254

(d)

 

 

 

 

 

 

 

 

 

 

 

 

11,046

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(331

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(16,113

)

345

 

(1,515

)

(2,061

)

—

 

(19,344

)

Investment (income) expense

 

(9,778

)

—

 

—

 

5,615

 

(5,627

)(d)

(9,790

)

Total other expense

 

28,122

 

165,013

 

23,253

 

22,274

 

(49,284

)

189,378

 

Earnings (loss) before income taxes

 

86,733

 

(147,001

)

1,181

 

(3,459

)

23,376

 

(39,170

)

Income tax provision (benefit)

 

34,475

 

(663

)

554

 

(201

)

(21,415

)(c)

7,377

 

 

 

 

 

 

 

 

 

 

 

(5,373

)(d)

 

 

Net earnings (loss)

 

$

52,258

 

$

(146,338

)

$

627

 

$

(3,258

)

$

50,164

 

$

(46,547

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

779,771

 

$

251,461

 

$

209,730

 

$

84,002

 

(292

)(d)

$

1,307,366

 

 

 

 

 

 

 

 

 

 

 

(2,058

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(6,054

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(9,194

)(e)

 

 

Cost of operations

 

504,572

 

173,002

 

146,542

 

53,153

 

(3,767

)(e)

866,765

 

 

 

 

 

 

 

 

 

 

 

(6,737

)(e)

 

 

Rent

 

121,904

 

42,241

 

26,627

 

9,917

 

2,473

(d)

199,628

 

 

 

 

 

 

 

 

 

 

 

959

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

142

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(680

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,145

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,590

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

4,961

 

205

 

6,845

 

—

 

(4,961

)(b)

71

 

 

 

 

 

 

 

 

 

 

 

(134

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(6,845

)(b)

 

 

Other

 

19,785

 

10,917

 

6,134

 

4,880

 

—

 

41,716

 

Depreciation and amortization

 

63,025

 

24,638

 

15,126

 

5,269

 

7,672

(d)

125,541

 

 

 

 

 

 

 

 

 

 

 

8,682

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,089

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(587

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(373

)(e)

 

 

Impairment of long-lived assets

 

—

 

144

 

409

 

(4

)

—

 

549

 

Operating costs and expenses

 

714,247

 

251,147

 

201,683

 

73,215

 

(6,022

)

1,234,270

 

Operating income

 

65,524

 

314

 

8,047

 

10,787

 

(11,576

)

73,096

 

Other expense (income)

 

79

 

24,526

 

—

 

—

 

740

(d)

25,345

 

Interest expense

 

26,778

 

41,388

 

12,363

 

7,910

 

(34,549

)(a)

70,137

 

 

 

 

 

 

 

 

 

 

 

18,673

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(1,491

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(12,363

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(7,888

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,060

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(163

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(12,030

)

(170

)

(1,843

)

(1,503

)

—

 

(15,546

)

Investment (income) expense

 

176

 

—

 

—

 

4,975

 

(4,538

)(d)

613

 

Total other expense

 

15,003

 

65,744

 

10,520

 

11,382

 

(22,100

)

80,549

 

Earnings (loss) before income taxes

 

50,521

 

(65,430

)

(2,473

)

(595

)

10,524

 

(7,453

)

Income tax provision (benefit)

 

20,085

 

3,114

 

(1,054

)

175

 

(9,197

)(c)

10,289

 

 

 

 

 

 

 

 

 

 

 

(2,834

)(d)

 

 

Net earnings (loss)

 

$

30,436

 

$

(68,544

)

$

(1,419

)

$

(770

)

$

22,555

 

$

(17,742

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Nine Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

Pro Forma

 

AMC

 

 

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,309,750

 

$

773,677

 

$

620,592

 

$

255,910

 

$

(876

)(d)

$

3,908,698

 

 

 

 

 

 

 

 

 

 

 

(5,730

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(17,458

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(27,167

)(e)

 

 

Cost of operations

 

1,500,270

 

513,963

 

423,745

 

166,558

 

(11,113

)(e)

2,573,722

 

 

 

 

 

 

 

 

 

 

 

(19,701

)(e)

 

 

Rent

 

369,307

 

125,469

 

79,381

 

29,552

 

8,007

(d)

601,261

 

 

 

 

 

 

 

 

 

 

 

2,877

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(3,660

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

434

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(2,133

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(3,306

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(4,667

)(e)

 

 

Merger, acquisition and transaction costs

 

15,113

 

9,800

 

14,453

 

—

 

(13,571

)(b)

1,716

 

 

 

 

 

 

 

 

 

 

 

(9,626

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(14,453

)(b)

 

 

Other

 

58,935

 

35,174

 

22,269

 

14,443

 

(568

)(d)

130,253

 

Depreciation and amortization

 

185,746

 

70,643

 

45,594

 

15,759

 

28,267

(d)

375,475

 

 

 

 

 

 

 

 

 

 

 

25,830

(d)

 

 

 

 

 

 

 

 

 

 

 

 

6,636

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,884

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,116

)(e)

 

 

Impairment of long-lived assets

 

—

 

302

 

2,669

 

(4

)

—

 

2,967

 

Operating costs and expenses

 

2,129,371

 

755,351

 

588,111

 

226,308

 

(13,747

)

3,685,394

 

Operating income

 

180,379

 

18,326

 

32,481

 

29,602

 

(37,484

)

223,304

 

Other expense (income)

 

(5

)

99,025

 

—

 

—

 

2,355

(d)

101,375

 

Interest expense

 

80,875

 

131,557

 

37,131

 

26,630

 

(106,874

)(a)

212,619

 

 

 

 

 

 

 

 

 

 

 

56,019

(a)

 

 

 

 

 

 

 

 

 

 

 

 

5,199

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(26,049

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

23,067

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,016

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(37,131

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

8,823

(d)

 

 

 

 

 

 

 

 

 

 

 

 

9,336

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(26,441

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

22,881

(d)

 

 

 

 

 

 

 

 

 

 

 

 

16,106

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(494

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(28,143

)

175

 

(3,358

)

(3,564

)

—

 

(34,890

)

Investment (income) expense

 

(9,602

)

—

 

—

 

10,590

 

(10,165

)(d)

(9,177

)

Total other expense

 

43,125

 

230,757

 

33,773

 

33,656

 

(71,384

)

269,927

 

Earnings (loss) before income taxes

 

137,254

 

(212,431

)

(1,292

)

(4,054

)

33,900

 

(46,623

)

Income tax provision (benefit)

 

54,560

 

2,451

 

(500

)

(26

)

(30,612

)(c)

17,666

 

 

 

 

 

 

 

 

 

 

 

(8,207

)(d)

 

 

Net earnings (loss)

 

$

82,694

 

$

(214,882

)

$

(792

)

$

(4,028

)

$

72,719

 

$

(64,289

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED DECEMBER 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Two Months Ended

 

81 days Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

December 31, 2016

 

November 30, 2016

 

December 20, 2016

 

December 31, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

926,096

 

$

188,242

 

$

149,668

 

$

104,621

 

(291

)(d)

$

1,347,752

 

 

 

 

 

 

 

 

 

 

 

(5,979

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(6,125

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(8,480

)(e)

 

 

Cost of operations

 

604,854

 

111,410

 

108,647

 

65,453

 

(3,809

)(e)

882,126

 

 

 

 

 

 

 

 

 

 

 

(4,429

)(e)

 

 

Rent

 

136,156

 

29,706

 

22,308

 

9,734

 

1,094

(d)

195,031

 

 

 

 

 

 

 

 

 

 

 

958

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

116

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(647

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,145

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(2,029

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

32,782

 

4,345

 

35,515

 

96

 

(32,782

)(b)

—

 

 

 

 

 

 

 

 

 

 

 

(4,345

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(35,515

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(96

)(b)

 

 

Other

 

31,784

 

8,009

 

11,132

 

4,416

 

(576

)(d)

54,765

 

Depreciation and amortization

 

82,497

 

13,678

 

13,003

 

4,287

 

6,768

(d)

129,534

 

 

 

 

 

 

 

 

 

 

 

7,631

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,652

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(603

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(379

)(e)

 

 

Impairment of long-lived assets

 

5,544

 

521

 

—

 

1,326

 

—

 

7,391

 

Operating costs and expenses

 

893,617

 

167,669

 

190,605

 

85,312

 

(68,356

)

1,268,847

 

Operating income (loss)

 

32,479

 

20,573

 

(40,937

)

19,309

 

47,481

 

78,905

 

Other expense (income)

 

(441

)

(11,049

)

—

 

—

 

466

(d)

(11,024

)

Interest expense

 

40,662

 

42,745

 

11,707

 

6,889

 

(37,972

)(a)

80,257

 

 

 

 

 

 

 

 

 

 

 

18,674

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,684

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,688

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(907

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

(1,268

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(11,707

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,497

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,680

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(6,718

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

4,773

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(162

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(19,575

)

259

 

(1,305

)

(2,567

)

—

 

(23,188

)

Investment (income) expense

 

(552

)

—

 

—

 

(1,209

)

1,314

(d)

(447

)

Total other expense

 

20,094

 

31,955

 

10,402

 

3,113

 

(19,966

)

45,598

 

Earnings (loss) before income taxes

 

12,385

 

(11,382

)

(51,339

)

16,196

 

67,447

 

33,307

 

Income tax provision (benefit)

 

(16,588

)

(667

)

(14,206

)

4,354

 

13,343

(c)

(15,776

)

 

 

 

 

 

 

 

 

 

 

(2,012

)(d)

 

 

Net earnings (loss)

 

$

28,973

 

$

(10,715

)

$

(37,133

)

$

11,842

 

$

56,116

 

$

49,083

 

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Year Ended

 

Eleven Months Ended

 

Nine Months Ended

 

81 days Ended

 

Year Ended

 

Pro Forma

 

AMC

 

 

 

December 31, 2016

 

November 30, 2016

 

September 30, 2016

 

December 20, 2016

 

December 31, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,235,846

 

$

961,919

 

$

620,592

 

$

149,668

 

$

360,531

 

(1,167

)(d)

$

5,256,450

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,709

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,583

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35,647

)(e)

 

 

Cost of operations

 

2,105,124

 

625,374

 

423,744

 

108,647

 

232,011

 

(14,922

)(e)

3,455,848

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,130

)(e)

 

 

Rent

 

505,463

 

155,175

 

79,381

 

22,308

 

39,286

 

9,101

(d)

796,292

 

 

 

 

 

 

 

 

 

 

 

 

 

3,835

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,880

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

550

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,780

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,451

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,696

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

47,895

 

14,145

 

14,453

 

35,515

 

96

 

(46,353

)(b)

1,716

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,971

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(49,968

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(96

)(b)

 

 

Other

 

90,719

 

43,183

 

22,269

 

11,132

 

18,859

 

(1,144

)(d)

185,018

 

Depreciation and amortization

 

268,243

 

84,321

 

45,594

 

13,003

 

20,046

 

35,035

(d)

505,009

 

 

 

 

 

 

 

 

 

 

 

 

 

33,461

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,288

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,487

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,495

)(e)

 

 

Impairment of long-lived assets

 

5,544

 

823

 

2,669

 

—

 

1,322

 

—

 

10,358

 

Operating costs and expenses

 

3,022,988

 

923,021

 

588,110

 

190,605

 

311,620

 

(82,103

)

4,954,241

 

Operating income (loss)

 

212,858

 

38,898

 

32,482

 

(40,937

)

48,911

 

9,997

 

302,209

 

Other expense (income)

 

(446

)

87,976

 

—

 

—

 

—

 

2,821

(d)

90,351

 

Interest expense

 

121,537

 

174,302

 

37,131

 

11,707

 

33,519

 

(144,846

)(a)

292,876

 

 

 

 

 

 

 

 

 

 

 

 

 

74,693

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,932

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,733

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,755

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(907

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,284

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48,838

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,320

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,016

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,159

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,508

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,879

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(656

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(47,718

)

434

 

(3,358

)

(1,305

)

(6,131

)

—

 

(58,078

)

Investment (income) expense

 

(10,154

)

—

 

—

 

—

 

9,381

 

(8,851

)(d)

(9,624

)

Total other expense

 

63,219

 

262,712

 

33,773

 

10,402

 

36,769

 

(91,350

)

315,525

 

Earnings (loss) before income taxes

 

149,639

 

(223,814

)

(1,291

)

(51,339

)

12,142

 

101,347

 

(13,316

)

Income tax provision (benefit)

 

37,972

 

1,784

 

(500

)

(14,206

)

4,328

 

(17,269

)(c)

1,890

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,219

)(d)

 

 

Net earnings (loss)

 

$

111,667

 

$

(225,598

)

$

(791

)

$

(37,133

)

$

7,814

 

$

128,835

 

$

(15,206

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2017

(dollars in thousands, except per share data)

 

 

 

AMC

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

March 31, 2017

 

March 31, 2017

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,281,413

 

$

94,850

 

(2,544

)(f)

$

1,359,344

 

 

 

 

 

 

 

32

(d)

 

 

 

 

 

 

 

 

(6,384

)(e)

 

 

 

 

 

 

 

 

(8,023

)(e)

 

 

Cost of operations

 

835,756

 

59,418

 

(2,030

)(f)

883,779

 

 

 

 

 

 

 

(3,950

)(e)

 

 

 

 

 

 

 

 

(5,415

)(e)

 

 

Rent

 

190,424

 

9,562

 

(446

)(f)

196,539

 

 

 

 

 

 

 

39

(d)

 

 

 

 

 

 

 

 

(652

)(d)

 

 

 

 

 

 

 

 

(1,007

)(e)

 

 

 

 

 

 

 

 

(1,381

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

40,206

 

3,162

 

(3,162

)(b)

23,011

 

 

 

 

 

 

 

(17,195

)(b)

 

 

Other

 

34,409

 

4,553

 

(52

)(f)

38,910

 

Depreciation and amortization

 

125,305

 

4,919

 

(172

)(f)

131,931

 

 

 

 

 

 

 

2,107

(d)

 

 

 

 

 

 

 

 

(226

)(e)

 

 

 

 

 

 

 

 

(2

)(e)

 

 

Impairment of long-lived assets

 

—

 

—

 

—

 

—

 

Operating costs and expenses

 

1,226,100

 

81,614

 

(33,544

)

1,274,170

 

Operating income

 

55,313

 

13,236

 

16,625

 

85,174

 

Other expense (income)

 

(2,701

)

—

 

—

 

(2,701

)

Interest expense

 

62,141

 

15,033

 

(69

)(f)

72,649

 

 

 

 

 

 

 

(14,886

)(d)

 

 

 

 

 

 

 

 

6,441

(d)

 

 

 

 

 

 

 

 

4,032

(d)

 

 

 

 

 

 

 

 

(43

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

2,314

 

(1,813

)

—

 

501

 

Investment (income) expense

 

(5,608

)

(45

)

116

(d)

(5,537

)

Total other expense

 

56,146

 

13,175

 

(4,409

)

64,912

 

Earnings (loss) before income taxes

 

(833

)

61

 

21,034

 

20,262

 

Income tax provision (benefit)

 

(9,230

)

1,180

 

5,777

(c)

(5,149

)

 

 

 

 

 

 

(2,928

)(d)

 

 

 

 

 

 

 

 

52

(f)

 

 

Net earnings (loss)

 

$

8,397

 

$

(1,119

)

$

18,133

 

$

25,411

 

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 

Certain conforming reclassifications for the historical three months ended March 31, 2017 have been made to conform with our presentation for the three months ended June 30, 2017.

 



 

Unaudited interim and year to date pro forma condensed combined statements of operations by segment for 2016 and 2017 are as follows:

 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

THREE MONTHS ENDED MARCH 31, 2016

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMC

 

Carmike

 

 

 

 

 

 

 

Odeon

 

Nordic

 

 

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

U.S. Markets

 

 

 

Historical

 

Historical

 

Historical

 

International Markets

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

Three Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

 

 

March 31, 2016

 

March 31, 2016

 

International Theatre

 

Adjustments

 

U.S. Markets

 

March 31, 2016

 

March 31, 2016

 

International Theatre

 

Adjustments

 

International Markets

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

766,017

 

$

206,188

 

$

(1,786

)

$

(292

)(d)

$

955,745

 

$

297,309

 

$

105,466

 

$

1,786

 

(2,272

)(d)

$

402,289

 

 

 

 

 

 

 

 

 

(5,559

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,823

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

498,632

 

136,943

 

(1,495

)

(3,609

)(e)

624,261

 

186,532

 

64,547

 

1,495

 

—

 

252,574

 

 

 

 

 

 

 

 

 

(6,210

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

124,584

 

25,878

 

(492

)

959

(d)

147,192

 

43,368

 

9,990

 

492

 

509

(d)

53,788

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

145

(d)

 

 

 

 

 

 

 

 

 

 

(1,014

)(e)

 

 

 

 

 

 

 

 

(716

)(d)

 

 

 

 

 

 

 

 

 

 

(1,503

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

4,604

 

3,752

 

—

 

(3,062

)(b)

1,542

 

448

 

—

 

—

 

(345

)(b)

103

 

 

 

 

 

 

 

 

 

(3,752

)(b)

 

 

 

 

 

 

 

 

—

 

 

 

Other

 

18,516

 

8,570

 

—

 

—

 

27,086

 

10,932

 

5,346

 

—

 

—

(d)

16,278

 

Depreciation and amortization

 

60,430

 

15,157

 

(14

)

8,651

(d)

83,147

 

22,920

 

5,064

 

14

 

10,142

(d)

40,493

 

 

 

 

 

 

 

 

 

(706

)(e)

 

 

 

 

 

 

 

 

2,353

(d)

 

 

 

 

 

 

 

 

 

 

(371

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

—

 

280

 

—

 

—

 

280

 

—

 

—

 

—

 

—

 

—

 

Operating costs and expenses

 

706,766

 

190,580

 

(2,001

)

(11,837

)

883,508

 

264,200

 

84,947

 

2,001

 

12,088

 

363,236

 

Operating income (loss)

 

59,251

 

15,608

 

215

 

(2,837

)

72,237

 

33,109

 

20,519

 

(215

)

(14,360

)

39,053

 

Other expense (income)

 

26

 

—

 

—

 

—

 

26

 

42,935

 

—

 

—

 

242

(d)

43,177

 

Interest expense

 

27,062

 

12,386

 

—

 

18,673

(a)

65,504

 

45,221

 

10,209

 

—

 

(36,312

)(a)

5,978

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

(3,284

)(d)

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

(9,856

)(d)

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,386

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,516

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(166

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(4,264

)

(414

)

—

 

—

 

(4,678

)

84

 

(1,872

)

—

 

—

 

(1,788

)

Investment (income) expense

 

(9,954

)

—

 

—

 

—

 

(9,954

)

—

 

1,537

 

—

 

(1,968

)(d)

(431

)

Total other expense

 

12,870

 

11,972

 

—

 

26,056

 

50,898

 

88,240

 

9,874

 

—

 

(51,178

)

46,936

 

Earnings (loss) before income taxes

 

46,381

 

3,636

 

215

 

(28,893

)

21,339

 

(55,131

)

10,645

 

(215

)

36,818

 

(7,883

)

Income tax provision (benefit)

 

18,090

 

1,411

 

—

 

(11,268

)(c)

8,233

 

611

 

2,579

 

—

 

(2,702

)(d)

488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

28,291

 

$

2,225

 

$

215

 

$

(17,625

)

$

13,106

 

$

(55,742

)

$

8,066

 

$

(215

)

$

39,520

 

$

(8,371

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

THREE MONTHS ENDED JUNE 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Carmike

 

 

 

 

 

 

 

Odeon

 

Nordic

 

 

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

U.S. Markets

 

 

 

Historical

 

Historical

 

Historical

 

International Markets

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

Three Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

 

 

June 30, 2016

 

June 30, 2016

 

International Theatre

 

Adjustments

 

U.S. Markets

 

June 30, 2016

 

June 30, 2016

 

International Theatre

 

Adjustments

 

International Markets

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

763,962

 

$

204,674

 

$

(1,472

)

$

(292

)(d)

$

951,877

 

$

224,907

 

$

66,442

 

$

1,472

 

(1,400

)(d)

$

291,421

 

 

 

 

 

 

 

 

 

(5,845

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,150

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

497,066

 

140,260

 

(1,394

)

(3,737

)(e)

625,441

 

154,429

 

48,858

 

1,394

 

—

 

204,681

 

 

 

 

 

 

 

 

 

(6,754

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

122,819

 

26,876

 

(469

)

959

(d)

146,244

 

39,860

 

9,645

 

469

 

5,025

(d)

54,409

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

147

(d)

 

 

 

 

 

 

 

 

 

 

(1,147

)(e)

 

 

 

 

 

 

 

 

(737

)(d)

 

 

 

 

 

 

 

 

 

 

(1,574

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

5,548

 

3,856

 

—

 

(5,548

)(b)

—

 

9,147

 

—

 

—

 

(9,147

)(b)

—

 

 

 

 

 

 

 

 

 

(3,856

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

20,634

 

7,565

 

—

 

—

 

28,199

 

13,325

 

4,217

 

—

 

(568

)(d)

16,974

 

Depreciation and amortization

 

62,291

 

15,311

 

(8

)

8,497

(d)

85,128

 

23,085

 

5,426

 

8

 

10,453

(d)

41,166

 

 

 

 

 

 

 

 

 

(591

)(e)

 

 

 

 

 

 

 

 

2,194

(d)

 

 

 

 

 

 

 

 

 

 

(372

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

—

 

1,980

 

—

 

—

 

1,980

 

158

 

—

 

—

 

—

 

158

 

Operating costs and expenses

 

708,358

 

195,848

 

(1,871

)

(15,343

)

886,992

 

240,004

 

68,146

 

1,871

 

7,367

 

317,388

 

Operating income (loss)

 

55,604

 

8,826

 

399

 

56

 

64,885

 

(15,097

)

(1,704

)

(399

)

(8,767

)

(25,967

)

Other expense (income)

 

(110

)

—

 

—

 

—

 

(110

)

31,564

 

—

 

—

 

1,373

(d)

32,937

 

Interest expense

 

27,035

 

12,382

 

—

 

18,673

(a)

65,492

 

44,948

 

8,511

 

—

 

(36,013

)(a)

5,508

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

(3,241

)(d)

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

(8,697

)(d)

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,382

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,530

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(165

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(11,849

)

(1,101

)

—

 

—

 

(12,950

)

261

 

(189

)

—

 

—

 

72

 

Investment (income) expense

 

176

 

—

 

—

 

—

 

176

 

—

 

4,078

 

—

 

(3,659

)(d)

419

 

Total other expense

 

15,252

 

11,281

 

—

 

26,075

 

52,608

 

76,773

 

12,400

 

—

 

(50,237

)

38,936

 

Earnings (loss) before income taxes

 

40,352

 

(2,455

)

399

 

(26,019

)

12,277

 

(91,870

)

(14,104

)

(399

)

41,470

 

(64,903

)

Income tax provision (benefit)

 

16,385

 

(857

)

—

 

(10,147

)(c)

5,381

 

(1,274

)

(2,780

)

—

 

(2,671

)(d)

(6,725

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

23,967

 

$

(1,598

)

$

399

 

$

(15,872

)

$

6,896

 

$

(90,596

)

$

(11,324

)

$

(399

)

$

44,141

 

$

(58,178

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

SIX MONTHS ENDED JUNE 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Carmike

 

 

 

 

 

 

 

Odeon

 

Nordic

 

 

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

U.S. Markets

 

 

 

Historical

 

Historical

 

Historical

 

International Markets

 

 

 

 

 

Six Months Ended

 

Six Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

Six Months Ended

 

Six Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

 

 

June 30, 2016

 

June 30, 2016

 

International Theatre

 

Adjustments

 

U.S. Markets

 

June 30, 2016

 

June 30, 2016

 

International Theatre

 

Adjustments

 

International Markets

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,529,979

 

$

410,862

 

$

(3,258

)

$

(584

)(d)

$

1,907,622

 

$

522,216

 

$

171,908

 

$

3,258

 

$

(3,672

)(d)

$

693,710

 

 

 

 

 

 

 

 

 

(11,404

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,973

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

995,698

 

277,203

 

(2,889

)

(7,346

)(e)

1,249,702

 

340,961

 

113,405

 

2,889

 

—

 

457,255

 

 

 

 

 

 

 

 

 

(12,964

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

247,403

 

52,754

 

(961

)

1,918

(d)

293,436

 

83,228

 

19,635

 

961

 

5,534

(d)

108,197

 

 

 

 

 

 

 

 

 

(2,440

)(d)

 

 

 

 

 

 

 

 

292

(d)

 

 

 

 

 

 

 

 

 

 

(2,161

)(e)

 

 

 

 

 

 

 

 

(1,453

)(d)

 

 

 

 

 

 

 

 

 

 

(3,077

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

10,152

 

7,608

 

—

 

(8,610

)(b)

1,542

 

9,595

 

—

 

—

 

(9,492

)(b)

103

 

 

 

 

 

 

 

 

 

(7,608

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

39,150

 

16,135

 

—

 

—

 

55,285

 

24,257

 

9,563

 

—

 

(568

)(d)

33,252

 

Depreciation and amortization

 

122,721

 

30,468

 

(22

)

17,148

(d)

168,275

 

46,005

 

10,490

 

22

 

20,595

(d)

81,659

 

 

 

 

 

 

 

 

 

(1,297

)(e)

 

 

 

 

 

 

 

 

4,547

(d)

 

 

 

 

 

 

 

 

 

 

(743

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

—

 

2,260

 

—

 

—

 

2,260

 

158

 

—

 

—

 

—

 

158

 

Operating costs and expenses

 

1,415,124

 

386,428

 

(3,872

)

(27,180

)

1,770,500

 

504,204

 

153,093

 

3,872

 

19,455

 

680,624

 

Operating income (loss)

 

114,855

 

24,434

 

614

 

(2,781

)

137,122

 

18,012

 

18,815

 

(614

)

(23,127

)

13,086

 

Other expense (income)

 

(84

)

—

 

—

 

—

 

(84

)

74,499

 

—

 

—

 

1,615

(d)

76,114

 

Interest expense

 

54,097

 

24,768

 

—

 

37,346

(a)

130,996

 

90,169

 

18,720

 

—

 

(72,325

)(a)

11,486

 

 

 

 

 

 

 

 

 

3,466

(a)

 

 

 

 

 

 

 

 

(6,525

)(d)

 

 

 

 

 

 

 

 

 

 

(17,366

)(a)

 

 

 

 

 

 

 

 

(18,553

)(d)

 

 

 

 

 

 

 

 

 

 

15,378

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,768

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,882

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,224

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,254

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,046

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(331

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(16,113

)

(1,515

)

—

 

—

 

(17,628

)

345

 

(2,061

)

—

 

—

 

(1,716

)

Investment (income) expense

 

(9,778

)

—

 

—

 

—

 

(9,778

)

—

 

5,615

 

—

 

(5,627

)(d)

(12

)

Total other expense

 

28,122

 

23,253

 

—

 

52,131

 

103,506

 

165,013

 

22,274

 

—

 

(101,415

)

85,872

 

Earnings (loss) before income taxes

 

86,733

 

1,181

 

614

 

(54,912

)

33,616

 

(147,001

)

(3,459

)

(614

)

78,288

 

(72,786

)

Income tax provision (benefit)

 

34,475

 

554

 

—

 

(21,415

)(c)

13,614

 

(663

)

(201

)

—

 

(5,373

)(d)

(6,237

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

52,258

 

$

627

 

$

614

 

$

(33,497

)

$

20,002

 

$

(146,338

)

$

(3,258

)

$

(614

)

$

83,661

 

$

(66,549

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

THREE MONTHS ENDED SEPTMEBER 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Carmike

 

 

 

 

 

 

 

Odeon

 

Nordic

 

 

 

 

 

 

 

 

 

Historical

 

Historical

 

Histrical

 

U.S. Markets

 

 

 

Historical

 

Historical

 

Historical

 

International Markets

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

Three Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

 

 

September 30, 2016

 

September 30, 2016

 

International Theatre

 

Adjustments

 

U.S. Markets

 

September 30, 2016

 

September 30, 2016

 

International Theatre

 

Adjustments

 

International Markets

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

779,771

 

$

209,730

 

$

(1,513

)

$

(292

)(d)

$

972,448

 

$

251,461

 

$

84,002

 

$

1,513

 

(2,058

)(d)

$

334,918

 

 

 

 

 

 

 

 

 

(6,054

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,194

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

504,572

 

146,542

 

(1,314

)

(3,767

)(e)

639,296

 

173,002

 

53,153

 

1,314

 

—

 

227,469

 

 

 

 

 

 

 

 

 

(6,737

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

121,904

 

26,627

 

(428

)

959

(d)

145,107

 

42,241

 

9,917

 

428

 

2,473

(d)

54,521

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

142

(d)

 

 

 

 

 

 

 

 

 

 

(1,145

)(e)

 

 

 

 

 

 

 

 

(680

)(d)

 

 

 

 

 

 

 

 

 

 

(1,590

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

4,961

 

6,845

 

—

 

(4,961

)(b)

—

 

205

 

—

 

—

 

(134

)(b)

71

 

 

 

 

 

 

 

 

 

(6,845

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

19,785

 

6,134

 

—

 

—

 

25,919

 

10,917

 

4,880

 

—

 

—

 

15,797

 

Depreciation and amortization

 

63,025

 

15,126

 

(4

)

8,682

(d)

85,869

 

24,638

 

5,269

 

4

 

7,672

(d)

39,672

 

 

 

 

 

 

 

 

 

(587

)(e)

 

 

 

 

 

 

 

 

2,089

(d)

 

 

 

 

 

 

 

 

 

 

(373

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

—

 

409

 

—

 

—

 

409

 

144

 

(4

)

—

 

—

 

140

 

Operating costs and expenses

 

714,247

 

201,683

 

(1,746

)

(17,584

)

896,600

 

251,147

 

73,215

 

1,746

 

11,562

 

337,670

 

Operating income (loss)

 

65,524

 

8,047

 

233

 

2,044

 

75,848

 

314

 

10,787

 

(233

)

(13,620

)

(2,752

)

Other expense (income)

 

79

 

—

 

—

 

—

 

79

 

24,526

 

—

 

—

 

740

(d)

25,266

 

Interest expense

 

26,778

 

12,363

 

—

 

18,673

(a)

64,767

 

41,388

 

7,910

 

—

 

(34,549

)(a)

5,370

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

(1,491

)(d)

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

(7,888

)(d)

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,363

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,060

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(163

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(12,030

)

(1,843

)

—

 

—

 

(13,873

)

(170

)

(1,503

)

—

 

—

 

(1,673

)

Investment (income) expense

 

176

 

—

 

—

 

—

 

176

 

—

 

4,975

 

—

 

(4,538

)(d)

437

 

Total other expense

 

15,003

 

10,520

 

—

 

25,626

 

51,149

 

65,744

 

11,382

 

—

 

(47,726

)

29,400

 

Earnings (loss) before income taxes

 

50,521

 

(2,473

)

233

 

(23,582

)

24,699

 

(65,430

)

(595

)

(233

)

34,106

 

(32,152

)

Income tax provision (benefit)

 

20,085

 

(1,054

)

—

 

(9,197

)(c)

9,834

 

3,114

 

175

 

—

 

(2,834

)(d)

455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

30,436

 

$

(1,419

)

$

233

 

$

(14,385

)

$

14,865

 

$

(68,544

)

$

(770

)

$

(233

)

$

36,940

 

$

(32,607

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

NINE MONTHS ENDED SEPTEMBER 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Carmike

 

 

 

 

 

 

 

Odeon

 

Nordic

 

 

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

U.S. Markets

 

 

 

Historical

 

Historical

 

Historical

 

International Markets

 

 

 

 

 

Nine Months Ended

 

Nine Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

Nine Months Ended

 

Nine Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

 

 

September 30, 2016

 

September 30, 2016

 

International Theatre

 

Adjustments

 

U.S. Markets

 

September 30, 2016

 

September 30, 2016

 

International Theatre

 

Adjustments

 

International Markets

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,309,750

 

$

620,592

 

$

(4,771

)

$

(876

)(d)

$

2,880,070

 

$

773,677

 

$

255,910

 

$

4,771

 

$

(5,730

)(d)

$

1,028,628

 

 

 

 

 

 

 

 

 

(17,458

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27,167

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

1,500,270

 

423,745

 

(4,203

)

(11,113

)(e)

1,888,998

 

513,963

 

166,558

 

4,203

 

—

 

684,724

 

 

 

 

 

 

 

 

 

(19,701

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

369,307

 

79,381

 

(1,389

)

2,877

(d)

438,543

 

125,469

 

29,552

 

1,389

 

8,007

(d)

162,718

 

 

 

 

 

 

 

 

 

(3,660

)(d)

 

 

 

 

 

 

 

 

434

(d)

 

 

 

 

 

 

 

 

 

 

(3,306

)(e)

 

 

 

 

 

 

 

 

(2,133

)(d)

 

 

 

 

 

 

 

 

 

 

(4,667

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

15,113

 

14,453

 

—

 

(13,571

)(b)

1,542

 

9,800

 

—

 

—

 

(9,626

)(b)

174

 

 

 

 

 

 

 

 

 

(14,453

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

58,935

 

22,269

 

—

 

—

 

81,204

 

35,174

 

14,443

 

—

 

(568

)(d)

49,049

 

Depreciation and amortization

 

185,746

 

45,594

 

(26

)

25,830

(d)

254,144

 

70,643

 

15,759

 

26

 

28,267

(d)

121,331

 

 

 

 

 

 

 

 

 

(1,884

)(e)

 

 

 

 

 

 

 

 

6,636

(d)

 

 

 

 

 

 

 

 

 

 

(1,116

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

—

 

2,669

 

—

 

—

 

2,669

 

302

 

(4

)

—

 

—

 

298

 

Operating costs and expenses

 

2,129,371

 

588,111

 

(5,618

)

(44,764

)

2,667,100

 

755,351

 

226,308

 

5,618

 

31,017

 

1,018,294

 

Operating income (loss)

 

180,379

 

32,481

 

847

 

(737

)

212,970

 

18,326

 

29,602

 

(847

)

(36,747

)

10,334

 

Other expense (income)

 

(5

)

—

 

—

 

—

 

(5

)

99,025

 

—

 

—

 

2,355

(d)

101,380

 

Interest expense

 

80,875

 

37,131

 

—

 

56,019

(a)

195,763

 

131,557

 

26,630

 

—

 

(106,874

)(a)

16,856

 

 

 

 

 

 

 

 

 

5,199

(a)

 

 

 

 

 

 

 

 

(8,016

)(d)

 

 

 

 

 

 

 

 

 

 

(26,049

)(a)

 

 

 

 

 

 

 

 

(26,441

)(d)

 

 

 

 

 

 

 

 

 

 

23,067

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,131

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,823

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,336

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,881

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,106

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(494

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(28,143

)

(3,358

)

—

 

—

 

(31,501

)

175

 

(3,564

)

—

 

—

 

(3,389

)

Investment (income) expense

 

(9,602

)

—

 

—

 

—

 

(9,602

)

—

 

10,590

 

—

 

(10,165

)(d)

425

 

Total other expense

 

43,125

 

33,773

 

—

 

77,757

 

154,655

 

230,757

 

33,656

 

—

 

(149,141

)

115,272

 

Earnings (loss) before income taxes

 

137,254

 

(1,292

)

847

 

(78,494

)

58,315

 

(212,431

)

(4,054

)

(847

)

112,394

 

(104,938

)

Income tax provision (benefit)

 

54,560

 

(500

)

—

 

(30,612

)(c)

23,448

 

2,451

 

(26

)

—

 

(8,207

)(d)

(5,782

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

82,694

 

$

(792

)

$

847

 

$

(47,882

)

$

34,867

 

$

(214,882

)

$

(4,028

)

$

(847

)

$

120,601

 

$

(99,156

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

THREE MONTHS ENDED DECEMBER 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Carmike

 

Historical

 

 

 

 

 

Odeon

 

Nordic

 

Historical

 

 

 

 

 

 

 

Historical

 

Historical

 

Odeon &

 

U.S. Markets

 

 

 

Historical

 

Historical

 

Odeon &

 

International Markets

 

 

 

 

 

Three Months Ended

 

81 days Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

Two Months Ended

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

Pro Forma

 

 

 

December 31, 2016

 

December 20, 2016

 

International Theatre

 

Adjustments

 

U.S. Markets

 

November 30, 2016

 

September, 2016

 

International Theatre

 

Adjustments

 

International Markets

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

926,096

 

$

149,668

 

$

(114,092

)

$

(291

)(d)

$

946,776

 

$

188,242

 

$

104,621

 

$

114,092

 

(5,979

)(d)

$

400,976

 

 

 

 

 

 

 

 

 

(6,125

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,480

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

604,854

 

108,647

 

(71,764

)

(3,809

)(e)

633,499

 

111,410

 

65,453

 

71,764

 

—

 

248,627

 

 

 

 

 

 

 

 

 

(4,429

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

136,156

 

22,308

 

(10,222

)

958

(d)

144,806

 

29,706

 

9,734

 

10,222

 

1,094

(d)

50,225

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

116

(d)

 

 

 

 

 

 

 

 

 

 

(1,145

)(e)

 

 

 

 

 

 

 

 

(647

)(d)

 

 

 

 

 

 

 

 

 

 

(2,029

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

32,782

 

35,515

 

(815

)

(31,967

)(b)

—

 

4,345

 

96

 

815

 

(5,160

)(b)

—

 

 

 

 

 

 

 

 

 

(35,515

)(b)

 

 

 

 

 

 

 

 

(96

)(b)

 

 

Other

 

31,784

 

11,132

 

(3,922

)

—

 

38,994

 

8,009

 

4,416

 

3,922

 

(576

)(d)

15,771

 

Depreciation and amortization

 

82,497

 

13,003

 

(12,092

)

7,631

(d)

90,057

 

13,678

 

4,287

 

12,092

 

6,768

(d)

39,477

 

 

 

 

 

 

 

 

 

(603

)(e)

 

 

 

 

 

 

 

 

2,652

(d)

 

 

 

 

 

 

 

 

 

 

(379

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

5,544

 

—

 

—

 

—

 

5,544

 

521

 

1,326

 

—

 

—

 

1,847

 

Operating costs and expenses

 

893,617

 

190,605

 

(98,815

)

(72,507

)

912,900

 

167,669

 

85,312

 

98,815

 

4,151

 

355,947

 

Operating income (loss)

 

32,479

 

(40,937

)

(15,277

)

57,611

 

33,876

 

20,573

 

19,309

 

15,277

 

(10,130

)

45,029

 

Other expense (income)

 

(441

)

—

 

17

 

—

 

(424

)

(11,049

)

—

 

(17

)

466

(d)

(10,600

)

Interest expense

 

40,662

 

11,707

 

(1,929

)

18,674

(a)

74,652

 

42,745

 

6,889

 

1,929

 

(37,972

)(a)

5,605

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

(1,268

)(d)

 

 

 

 

 

 

 

 

 

 

(8,684

)(a)

 

 

 

 

 

 

 

 

(6,718

)(d)

 

 

 

 

 

 

 

 

 

 

7,688

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(907

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,707

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,497

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,680

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,773

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(162

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(19,575

)

(1,305

)

460

 

—

 

(20,420

)

259

 

(2,567

)

(460

)

—

 

(2,768

)

Investment (income) expense

 

(552

)

—

 

—

 

—

 

(552

)

—

 

(1,209

)

—

 

1,314

(d)

105

 

Total other expense

 

20,094

 

10,402

 

(1,452

)

24,212

 

53,256

 

31,955

 

3,113

 

1,452

 

(44,178

)

(7,658

)

Earnings (loss) before income taxes

 

12,385

 

(51,339

)

(13,825

)

33,399

 

(19,380

)

(11,382

)

16,196

 

13,825

 

34,048

 

52,687

 

Income tax provision (benefit)

 

(16,588

)

(14,206

)

2,591

 

13,343

(c)

(14,860

)

(667

)

4,354

 

(2,591

)

(2,012

)(d)

(916

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

28,973

 

$

(37,133

)

$

(16,416

)

$

20,056

 

$

(4,520

)

$

(10,715

)

$

11,842

 

$

16,416

 

$

36,060

 

$

53,603

 

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

YEAR ENDED DECEMBER 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Carmike

 

Carmike

 

Historical

 

 

 

 

 

 

 

Odeon

 

Nordic

 

Historical

 

 

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Odeon &

 

U.S. Markets

 

 

 

 

 

Historical

 

Historical

 

Odeon &

 

International Markets

 

 

 

 

 

 

 

Year Ended

 

Nine Months Ended

 

81 days Ended

 

Legacy AMC

 

Pro Forma

 

 

 

Pro Forma

 

Eleven Months Ended

 

Year Ended

 

Legacy AMC

 

Pro Forma

 

 

 

Pro Forma

 

 

 

December 31, 2016

 

September 30, 2016

 

December 20, 2016

 

International Theatre

 

Adjustments

 

 

 

U.S. Markets

 

November 30, 2016

 

December 31, 2016

 

International Theatre

 

Adjustments

 

 

 

International Markets

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,235,846

 

$

620,592

 

$

149,668

 

$

(118,863

)

$

(1,167

)

(d)

 

$

3,826,846

 

$

961,919

 

$

360,531

 

$

118,863

 

(11,709

)

(d)

 

$

1,429,604

 

 

 

 

 

 

 

 

 

 

 

(23,583

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35,647

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of operations

 

2,105,124

 

423,745

 

108,647

 

(75,967

)

(14,922

)

(e)

 

2,522,497

 

625,373

 

232,011

 

75,967

 

—

 

 

 

933,351

 

 

 

 

 

 

 

 

 

 

 

(24,130

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

505,463

 

79,381

 

22,308

 

(11,611

)

3,835

 

(d)

 

583,349

 

155,175

 

39,286

 

11,611

 

9,101

 

(d)

 

212,943

 

 

 

 

 

 

 

 

 

 

 

(4,880

)

(d)

 

 

 

 

 

 

 

 

 

550

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,451

)

(e)

 

 

 

 

 

 

 

 

 

(2,780

)

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,696

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

47,895

 

14,453

 

35,515

 

(815

)

(45,538

)

(b)

 

1,542

 

14,145

 

96

 

815

 

(14,786

)

(b)

 

174

 

 

 

 

 

 

 

 

 

 

 

(49,968

)

(b)

 

 

 

 

 

 

 

 

 

(96

)

(b)

 

 

 

Other

 

90,719

 

22,269

 

11,132

 

(3,922

)

—

 

 

 

120,198

 

43,183

 

18,859

 

3,922

 

(1,144

)

(d)

 

64,820

 

Depreciation and amortization

 

268,243

 

45,594

 

13,003

 

(12,118

)

33,461

 

(d)

 

344,201

 

84,321

 

20,046

 

12,118

 

35,035

 

(d)

 

160,808

 

 

 

 

 

 

 

 

 

 

 

(2,487

)

(e)

 

 

 

 

 

 

 

 

 

9,288

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,495

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of long-lived assets

 

5,544

 

2,669

 

—

 

—

 

—

 

 

 

8,213

 

823

 

1,322

 

—

 

—

 

 

 

2,145

 

Operating costs and expenses

 

3,022,988

 

588,111

 

190,605

 

(104,433

)

(117,271

)

 

 

3,580,000

 

923,020

 

311,620

 

104,433

 

35,168

 

 

 

1,374,241

 

Operating income (loss)

 

212,858

 

32,481

 

(40,937

)

(14,430

)

56,874

 

 

 

246,846

 

38,899

 

48,911

 

14,430

 

(46,877

)

 

 

55,363

 

Other expense (income)

 

(446

)

—

 

—

 

17

 

—

 

 

 

(429

)

87,976

 

—

 

(17

)

2,821

 

(d)

 

90,780

 

Interest expense

 

121,537

 

37,131

 

11,707

 

(1,929

)

74,693

 

(a)

 

270,415

 

174,302

 

33,519

 

1,929

 

(144,846

)

(a)

 

22,461

 

 

 

 

 

 

 

 

 

 

 

6,932

 

(a)

 

 

 

 

 

 

 

 

 

(9,284

)

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,733

)

(a)

 

 

 

 

 

 

 

 

 

(33,159

)

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

30,755

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(907

)

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48,838

)

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,320

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,016

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,508

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,879

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(656

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

(47,718

)

(3,358

)

(1,305

)

460

 

—

 

 

 

(51,921

)

434

 

(6,131

)

(460

)

—

 

 

 

(6,157

)

Investment (income) expense

 

(10,154

)

—

 

—

 

—

 

—

 

 

 

(10,154

)

—

 

9,381

 

—

 

(8,851

)

(d)

 

530

 

Total other expense

 

63,219

 

33,773

 

10,402

 

(1,452

)

101,969

 

 

 

207,911

 

262,712

 

36,769

 

1,452

 

(193,319

)

 

 

107,614

 

Earnings (loss) before income taxes

 

149,639

 

(1,292

)

(51,339

)

(12,978

)

(45,095

)

 

 

38,935

 

(223,813

)

12,142

 

12,978

 

146,442

 

 

 

(52,251

)

Income tax provision (benefit)

 

37,972

 

(500

)

(14,206

)

2,591

 

(17,269

)

(c)

 

8,588

 

1,784

 

4,328

 

(2,591

)

(10,219

)

(d)

 

(6,698

)

Net earnings (loss)

 

$

111,667

 

$

(792

)

$

(37,133

)

$

(15,569

)

$

(27,826

)

 

 

$

30,347

 

$

(225,597

)

$

7,814

 

$

15,569

 

$

156,661

 

 

 

$

(45,553

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 



AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS BY SEGMENT

THREE MONTHS ENDED MARCH 31, 2017

(dollars in thousands, except per share data)

 

 

 

AMC

 

Historical

 

 

 

 

 

 

 

Historical

 

Nordic

 

 

 

 

 

 

 

 

 

Historical

 

Nordic, Odeon &

 

U.S. Markets

 

 

 

 

 

Nordic, Odeon &

 

Historical

 

International Markets

 

 

 

 

 

 

 

Three Months Ended

 

Legacy AMC

 

Pro Forma

 

 

 

Pro Forma

 

Legacy AMC

 

Three Months Ended

 

Pro Forma

 

 

 

Pro Forma

 

 

 

March 31, 2017

 

International Theatre

 

Adjustments

 

 

 

U.S. Markets

 

International Theatre

 

March 31, 2017

 

Adjustments

 

 

 

International Markets

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,281,413

 

(289,283

)

(6,384

)

(e)

 

$

977,723

 

$

289,283

 

$

94,850

 

(2,544

)

(f)

 

$

381,621

 

 

 

 

 

 

 

(8,023

)

(e)

 

 

 

 

 

 

 

32

 

(d)

 

 

 

Cost of operations

 

835,756

 

(182,845

)

(3,950

)

(e)

 

643,546

 

182,845

 

59,418

 

(2,030

)

(f)

 

240,233

 

 

 

 

 

 

 

(5,415

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent

 

190,424

 

(41,916

)

(1,007

)

(e)

 

146,120

 

41,916

 

9,562

 

(446

)

(f)

 

50,419

 

 

 

 

 

 

 

(1,381

)

(e)

 

 

 

 

 

 

 

39

 

(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(652

)

(d)

 

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

40,206

 

—

 

(17,195

)

(b)

 

23,011

 

—

 

3,162

 

(3,162

)

(b)

 

—

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

34,409

 

(11,730

)

—

 

 

 

22,679

 

11,730

 

4,553

 

(52

)

(f)

 

16,231

 

Depreciation and amortization

 

125,305

 

(28,557

)

(226

)

(e)

 

96,520

 

28,557

 

4,919

 

(172

)

(f)

 

35,411

 

 

 

 

 

 

 

(2

)

(e)

 

 

 

 

 

 

 

2,107

 

(d)

 

 

 

Impairment of long-lived assets

 

—

 

—

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

—

 

Operating costs and expenses

 

1,226,100

 

(265,048

)

(29,176

)

 

 

931,876

 

265,048

 

81,614

 

(4,368

)

 

 

342,294

 

Operating income

 

55,313

 

(24,235

)

14,769

 

 

 

45,847

 

24,235

 

13,236

 

1,856

 

 

 

39,327

 

Other expense (income)

 

(2,701

)

—

 

—

 

 

 

(2,701

)

—

 

—

 

 

 

 

 

—

 

Interest expense

 

62,141

 

(6,183

)

6,441

 

(d)

 

66,388

 

6,183

 

15,033

 

(69

)

(f)

 

6,261

 

 

 

 

 

 

 

4,032

 

(d)

 

 

 

 

 

 

 

(14,886

)

(d)

 

 

 

 

 

 

 

 

 

(43

)

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in (earnings) loss of non-consolidated entities

 

2,314

 

19

 

—

 

 

 

2,333

 

(19

)

(1,813

)

 

 

 

 

(1,832

)

Investment (income) expense

 

(5,608

)

265

 

—

 

 

 

(5,343

)

(265

)

(45

)

116

 

(d)

 

(194

)

Total other expense

 

56,146

 

(5,899

)

10,430

 

 

 

60,677

 

5,899

 

13,175

 

(14,839

)

 

 

4,235

 

Earnings (loss) before income taxes

 

(833

)

(18,336

)

4,339

 

 

 

(14,830

)

18,336

 

61

 

16,695

 

 

 

35,092

 

Income tax provision (benefit)

 

(9,230

)

(1,105

)

5,777

 

(c)

 

(4,558

)

1,105

 

1,180

 

52

 

(f)

 

(591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,928

)

(d)

 

 

 

Net earnings (loss)

 

$

8,397

 

$

(17,231

)

$

(1,438

)

 

 

$

(10,272

)

$

17,231

 

$

(1,119

)

$

19,571

 

 

 

$

35,683

 

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 

Certain conforming reclassifications for the historical three months ended March 31, 2017 have been made to conform with our presentation for the three months ended June 30, 2017.

 


 


 

5. Pro Forma Adjustments (dollars in thousands)

 

The accompanying unaudited pro forma condensed combined financial statements have been prepared as if the Odeon Acquisition, the Carmike Acquisition, the Nordic Acquisition, the Financings, the Theatre Divestitures and the 2017 Equity Offering were completed on January 1, 2016 for statement of operations purposes.

 

(a)           Adjustments to interest expense and other expense have been made to reflect the elimination of the Odeon Shareholder Loans due 2019 and refinancing of the Odeon 9% Senior Secured Note GBP due 2018 and the Floating Rate Senior Secured Note due 2018 as follows:

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

Eliminate historical interest expense for amounts extinguished for Odeon Indebtedness

 

$

(36,312

)

$

(36,013

)

$

(72,325

)

$

(34,549

)

$

(106,874

)

$

(37,972

)

$

(144,846

)

$

—

 

Cash interest on new indebtedness incurred

 

18,673

 

18,673

 

37,346

 

18,673

 

56,019

 

18,674

 

74,693

 

—

 

Amortization of deferred charges on new indebtedness incurred

 

1,733

 

1,733

 

3,466

 

1,733

 

5,199

 

1,733

 

6,932

 

—

 

Eliminate historical interest on Term Loans due 2022

 

(8,683

)

(8,683

)

(17,366

)

(8,683

)

(26,049

)

(8,684

)

(34,733

)

—

 

Interest on Term Loans due 2022 based on amended pricing

 

7,689

 

7,689

 

15,378

 

7,689

 

23,067

 

7,688

 

30,755

 

—

 

Eliminate historical interest on bridge loan

 

—

 

—

 

—

 

—

 

—

 

(907

)

(907

)

—

 

 

b)           Adjustment to remove the non-recurring direct incremental costs of the Odeon Acquisition, the Carmike Acquisition and the Nordic Acquisition which are reflected in the historical financial statements of the Company, Odeon, Carmike and Nordic.

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

Remove the Company’s costs (including $815K for 1 month Odeon Q4-16)

 

$

(3,062

)

$

(5,548

)

$

(8,610

)

$

(4,961

)

$

(13,571

)

$

(32,782

)

$

(46,353

)

$

(17,195

)

Remove Odeon’s costs

 

(345

)

(9,147

)

(9,492

)

(134

)

(9,626

)

(4,345

)

(13,971

)

—

 

Remove Carmike’s costs

 

(3,752

)

(3,856

)

(7,608

)

(6,845

)

(14,453

)

(35,515

)

(49,968

)

—

 

Remove Nordic’s costs

 

—

 

—

 

—

 

—

 

—

 

(96

)

(96

)

(3,162

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c)           Adjustment to record tax benefit in U.S. tax jurisdictions for Carmike and the Company at the Company’s effective income tax rate of 39%. Income and expenses recorded historically by Odeon were not significantly tax effected in foreign jurisdictions as a result of available unrecorded deferred tax assets including net operating loss carryforwards. As a result pro forma adjustments do not result in significant amounts of additional income tax expense or benefit in these foreign jurisdictions.

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

Record tax effect in U.S. tax jurisdiction

 

$

(11,268

)

$

(10,147

)

$

(21,415

)

$

(9,197

)

$

(30,612

)

$

13,343

 

$

(17,269

)

$

5,777

 

 

(d)           Adjustment to Odeon expenses as a result of adjustments to fair value.

 

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent (1)

 

$

509

 

$

5,025

 

$

5,534

 

$

2,473

 

$

8,007

 

$

1,094

 

$

9,101

 

$

—

 

Depreciation and amortization

 

10,142

 

10,453

 

20,595

 

7,672

 

28,267

 

6,768

 

35,035

 

—

 

Eliminate non-recurring direct incremental costs of the Odeon acquisition for share-based compensation expense related to the Junior LTIP

 

—

 

(568

)

(568

)

—

 

(568

)

(576

)

(1,144

)

—

 

Eliminate deferred gain amortization

 

242

 

1,373

 

1,615

 

740

 

2,355

 

466

 

2,821

 

—

 

Interest Expense for capital and financing lease obligations primarily due to a lower incremental borrowing rate upon re-measurement

 

(3,284

)

(3,241

)

(6,525

)

(1,491

)

(8,016

)

(1,268

)

(9,284

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)  Detail of Odeon rent adjustments above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unfavorable lease amortization

 

$

(2,332

)

$

585

 

(1,747

)

$

(975

)

$

(2,722

)

$

(694

)

$

(3,416

)

$

—

 

Incremental financing lease obligation ground rent

 

619

 

667

 

1,286

 

777

 

2,063

 

568

 

2,631

 

—

 

Eliminate deferred rent credit from landlord incentives

 

1,889

 

3,440

 

5,329

 

2,338

 

7,667

 

887

 

8,554

 

—

 

Straight line rent expense

 

333

 

333

 

666

 

333

 

999

 

333

 

1,332

 

—

 

Total

 

$

509

 

$

5,025

 

$

5,534

 

$

2,473

 

$

8,007

 

$

1,094

 

$

9,101

 

$

—

 

 



 

Adjustment to Carmike revenues and expenses  as a result of adjustments to fair value.

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

Revenues from Screenvision deferred revenues

 

$

(292

)

$

(292

)

$

(584

)

$

(292

)

$

(876

)

$

(291

)

$

(1,167

)

$

—

 

Straight line rent expense

 

959

 

959

 

1,918

 

959

 

2,877

 

958

 

3,835

 

—

 

Unfavorable lease amortization

 

(1,220

)

(1,220

)

(2,440

)

(1,220

)

(3,660

)

(1,220

)

(4,880

)

—

 

Depreciation and amortization

 

8,651

 

8,497

 

17,148

 

8,682

 

25,830

 

7,631

 

33,461

 

—

 

Remove Carmike historical interest expense

 

(12,386

)

(12,382

)

(24,768

)

(12,363

)

(37,131

)

(11,707

)

(48,838

)

—

 

Interest expense on capital and financing lease obligations reflecting a lower incremental borrowing rate upon re-measurement

 

2,941

 

2,941

 

5,882

 

2,941

 

8,823

 

2,497

 

11,320

 

—

 

Interest expense on 6.0% Senior Secured Notes due 2023

 

3,112

 

3,112

 

6,224

 

3,112

 

9,336

 

2,680

 

12,016

 

—

 

 

Adjustment to Nordic revenues and expenses as a result of fair value.

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

Revenues related to breakage income (adjustments are components of Other Revenues)

 

$

(2,272

)

$

(1,400

)

$

(3,672

)

$

(2,058

)

$

(5,730

)

$

(5,979

)

$

(11,709

)

$

32

 

Straight line rent expense

 

145

 

147

 

292

 

142

 

434

 

116

 

550

 

39

 

Unfavorable lease amortization

 

(716

)

(737

)

(1,453

)

(680

)

(2,133

)

(647

)

(2,780

)

(652

)

Depreciation and amortization

 

2,353

 

2,194

 

4,547

 

2,089

 

6,636

 

2,652

 

9,288

 

2,107

 

Remove Nordic historical interest expense

 

(9,856

)

(8,697

)

(18,553

)

(7,888

)

(26,441

)

(6,718

)

(33,159

)

(14,886

)

Remove Nordic historical investment income

 

(1,968

)

(3,659

)

(5,627

)

(4,538

)

(10,165

)

1,314

 

(8,851

)

116

 

Interest expense on $475 million 6.125% Senior Subordinated Notes due 2027

 

7,627

 

7,627

 

15,254

 

7,627

 

22,881

 

7,627

 

30,508

 

6,441

 

Interest expense on £250 million 6.375% Senior Subordinated Notes due 2024

 

5,516

 

5,530

 

11,046

 

5,060

 

16,106

 

4,773

 

20,879

 

4,032

 

Income tax adjustment related to Nordic adjustments

 

(2,702

)

(2,671

)

(5,373

)

(2,834

)

(8,207

)

(2,012

)

(10,219

)

(2,928

)

 

(e)           Adjustment Relating to Department of Justice Proposed Divestitures

 

Adjustments to remove Carmike and AMC historical revenues and expenses for theatres in markets that must be divested in connection with the Department of Justice proposed final judgement whereby we expect to sell certain of our theatres and certain Carmike theatres are reflected in the pro forma financial statements as those planned disposals are identifiable and factually supportable at this time. We believe that the reasonably possible effects on the financial statements for the divestitures are as follows ($ in thousands):

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

March 31,

 

June 30,

 

June 30,

 

September 30,

 

September 30,

 

December 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMC Theatres

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

(5,559

)

$

(5,845

)

$

(11,404

)

$

(6,054

)

$

(17,458

)

$

(6,125

)

$

(23,583

)

$

(6,384

)

Cost of operations

 

(3,609

)

(3,737

)

(7,346

)

(3,767

)

(11,113

)

(3,809

)

(14,922

)

(3,950

)

Rent

 

(1,014

)

(1,147

)

(2,161

)

(1,145

)

(3,306

)

(1,145

)

(4,451

)

(1,007

)

Depreciation and amortization

 

(706

)

(591

)

(1,297

)

(587

)

(1,884

)

(603

)

(2,487

)

(226

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

3,271

 

$

3,438

 

$

6,709

 

$

3,598

 

$

10,307

 

$

3,696

 

$

14,003

 

$

3,783

 

Food & beverage

 

2,131

 

2,237

 

4,368

 

2,306

 

6,674

 

2,228

 

8,902

 

2,372

 

Other

 

157

 

170

 

327

 

150

 

477

 

201

 

678

 

229

 

Total revenues (1)

 

$

5,559

 

$

5,845

 

$

11,404

 

$

6,054

 

$

17,458

 

$

6,125

 

$

23,583

 

$

6,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film exhibition costs

 

$

1,778

 

$

1,873

 

$

3,651

 

$

1,877

 

$

5,528

 

$

1,945

 

$

7,473

 

$

2,070

 

Food & beverage costs

 

246

 

261

 

507

 

274

 

781

 

266

 

1,047

 

271

 

Operating expense

 

1,585

 

1,603

 

3,188

 

1,616

 

4,804

 

1,598

 

6,402

 

1,609

 

Cost of operations (2)

 

$

3,609

 

$

3,737

 

$

7,346

 

$

3,767

 

$

11,113

 

$

3,809

 

$

14,922

 

$

3,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carmike Theatres

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

(8,823

)

$

(9,150

)

$

(17,973

)

$

(9,194

)

$

(27,167

)

$

(8,480

)

$

(35,647

)

$

(8,023

)

Cost of operations

 

(6,210

)

(6,754

)

(12,964

)

(6,737

)

(19,701

)

(4,429

)

(24,130

)

(5,415

)

Rent

 

(1,503

)

(1,574

)

(3,077

)

(1,590

)

(4,667

)

(2,029

)

(6,696

)

(1,381

)

Depreciation and amortization

 

(371

)

(372

)

(743

)

(373

)

(1,116

)

(379

)

(1,495

)

(2

)

Interest expense

 

(166

)

(165

)

(331

)

(163

)

(494

)

(162

)

(656

)

(43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

5,201

 

$

5,413

 

$

10,614

 

$

5,450

 

$

16,064

 

$

4,834

 

$

20,898

 

$

4,730

 

Food & beverage

 

3,412

 

3,535

 

6,947

 

3,529

 

10,476

 

3,262

 

13,738

 

3,182

 

Other

 

210

 

202

 

412

 

215

 

627

 

384

 

1,011

 

111

 

Total revenues (3)

 

$

8,823

 

$

9,150

 

$

17,973

 

$

9,194

 

$

27,167

 

$

8,480

 

$

35,647

 

$

8,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film exhibition costs

 

$

2,858

 

$

3,129

 

$

5,987

 

$

3,026

 

$

9,013

 

$

2,640

 

$

11,653

 

$

2,562

 

Food & beverage costs

 

526

 

541

 

1,067

 

543

 

1,610

 

427

 

2,037

 

423

 

Operating expense

 

2,826

 

3,084

 

5,910

 

3,168

 

9,078

 

1,362

 

10,440

 

2,430

 

Cost of operations (4)

 

$

6,210

 

$

6,754

 

$

12,964

 

$

6,737

 

$

19,701

 

$

4,429

 

$

24,130

 

$

5,415

 

 

(f)     Adjustment to remove revenues and expenses incuded in the AMC historical period from the date of the Nordic Acquisition on March 28, 2017 through March 31, 2017.

 



 

The following segment pro forma financial data for 2016 and 2017 and Adjusted EBIDA have been reconciled to the unaudited interim and year to date pro forma condensed combined statements of operations for 2016 and 2017 and to the unaudited interim and year to date pro forma condensed combined statements of operations by operating segment.  See Note 5(d) and Note 5(e) for reconciliation of Revenues and Cost of Operations.

 

Segment pro forma financial data

Three Months ended March 31, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

595,690

 

$

279,309

 

$

874,999

 

Food & beverage

 

314,276

 

93,066

 

407,342

 

Other

 

45,779

 

29,914

 

75,693

 

Total revenues

 

955,745

 

402,289

 

1,358,034

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

325,521

 

118,001

 

443,522

 

Food & beverage costs

 

42,679

 

21,291

 

63,970

 

Operating expense

 

256,061

 

113,282

 

369,343

 

Rent

 

147,192

 

53,788

 

200,980

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

1,542

 

103

 

1,645

 

Other

 

27,086

 

16,278

 

43,364

 

Depreciation & amortization

 

83,147

 

40,493

 

123,640

 

Impairment of long-lived assets

 

280

 

—

 

280

 

Operating costs and expenses

 

883,508

 

363,236

 

1,246,744

 

Operating income

 

72,237

 

39,053

 

111,290

 

Other expense (income)

 

26

 

43,177

 

43,203

 

Interest expense

 

65,504

 

5,978

 

71,482

 

Equity in earnings of non-consolidated entities

 

(4,678

)

(1,788

)

(6,466

)

Investment (income) expense

 

(9,954

)

(431

)

(10,385

)

Total other expense

 

50,898

 

46,936

 

97,834

 

Earnings (loss) before income taxes

 

21,339

 

(7,883

)

13,456

 

Income tax provision

 

8,233

 

488

 

8.721

 

Net earnings (loss)

 

$

13,106

 

$

(8,371

)

$

4,735

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

180,565

 

$

82,594

 

$

263,159

 

 

 

 

 

 

 

 

 

Attendance

 

65,686

 

32,852

 

98,538

 

Average screens

 

8,050

 

2,719

 

10,769

 

 

Segment pro forma financial data

Three Months ended June 30, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

593,591

 

$

189,927

 

$

783,518

 

Food & beverage

 

312,836

 

70,209

 

383,045

 

Other

 

45,450

 

31,285

 

76,735

 

Total revenues

 

951,877

 

291,421

 

1,243,298

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

327,761

 

77,666

 

405,427

 

Food & beverage costs

 

43,136

 

16,920

 

60,056

 

Operating expense

 

254,544

 

110,095

 

364,639

 

Rent

 

146,244

 

54,409

 

200,653

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

—

 

—

 

—

 

Other

 

28,199

 

16,974

 

45,173

 

Depreciation & amortization

 

85,128

 

41,166

 

126,294

 

Impairment of long-lived assets

 

1,980

 

158

 

2,138

 

Operating costs and expenses

 

886,992

 

317,388

 

1,204,380

 

Operating income (loss)

 

64,885

 

(25,967

)

38,918

 

Other expense (income)

 

(110

)

32,937

 

32,827

 

Interest expense

 

65,492

 

5,508

 

71,000

 

Equity in earnings (loss) of non-consolidated entities

 

(12,950

)

72

 

(12,878

)

Investment (income) expense

 

176

 

419

 

595

 

Total other expense

 

52,608

 

38,936

 

91,544

 

Earnings (loss) before income taxes

 

12,277

 

(64,903

)

(52,626

)

Income tax provision (benefit)

 

5,381

 

(6,725

)

(1,344

)

Net earnings (loss)

 

$

6,896

 

$

(58,178

)

$

(51,282

)

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

158,929

 

$

16,168

 

$

175,097

 

 

 

 

 

 

 

 

 

Attendance

 

64,541

 

22,689

 

87,230

 

Average screens

 

8,018

 

2,725

 

10,743

 

 



 

Segment pro forma financial data

Six Months ended June 30, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

1,189,281

 

$

469,236

 

$

1,658,517

 

Food & beverage

 

627,112

 

163,275

 

790,387

 

Other

 

91,229

 

61,199

 

152,428

 

Total revenues

 

1,907,622

 

693,710

 

2,601,332

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

653,282

 

195,667

 

848,949

 

Food & beverage costs

 

85,815

 

38,211

 

124,026

 

Operating expense

 

510,605

 

223,377

 

733,982

 

Rent

 

293,436

 

108,197

 

401,633

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

1,542

 

103

 

1,645

 

Other

 

55,285

 

33,252

 

88,537

 

Depreciation & amortization

 

168,275

 

81,659

 

249,934

 

Impairment of long-lived assets

 

2,260

 

158

 

2,418

 

Operating costs and expenses

 

1,770,500

 

680,624

 

2,451,124

 

Operating income

 

137,122

 

13,086

 

150,208

 

Other expense (income)

 

(84

)

76,114

 

76,030

 

Interest expense

 

130,996

 

11,486

 

142,482

 

Equity in earnings of non-consolidated entities

 

(17,628

)

(1,716

)

(19,344

)

Investment income

 

(9,778

)

(12

)

(9,790

)

Total other expense

 

103,506

 

85,872

 

189,378

 

Earnings (loss) before income taxes

 

33,616

 

(72,786

)

(39,170

)

Income tax provision (benefit)

 

13,614

 

(6,237

)

7,377

 

Net earnings (loss)

 

$

20,002

 

$

(66,549

)

$

(46,547

)

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

339,494

 

$

98,762

 

$

438,256

 

 

 

 

 

 

 

 

 

Attendance

 

130,227

 

55,541

 

185,768

 

Average screens

 

8,034

 

2,722

 

10,756

 

 

Segment pro forma financial data

Three Months ended September 30, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

612,668

 

$

225,549

 

$

838,217

 

Food & beverage

 

319,691

 

83,476

 

403,167

 

Other

 

40,089

 

25,893

 

65,982

 

Total revenues

 

972,448

 

334,918

 

1,307,366

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

323,431

 

94,708

 

418,139

 

Food & beverage costs

 

43,246

 

21,455

 

64,701

 

Operating expense

 

272,619

 

111,306

 

383,925

 

Rent

 

145,107

 

54,521

 

199,628

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

—

 

71

 

71

 

Other

 

25,919

 

15,797

 

41,716

 

Depreciation & amortization

 

85,869

 

39,672

 

125,541

 

Impairment of long-lived assets

 

409

 

140

 

549

 

Operating costs and expenses

 

896,600

 

337,670

 

1,234,270

 

Operating income (loss)

 

75,848

 

(2,752

)

73,096

 

Other expense (income)

 

79

 

25,266

 

25,345

 

Interest expense

 

64,767

 

5,370

 

70,137

 

Equity in earnings of non-consolidated entities

 

(13,873

)

(1,673

)

(15,546

)

Investment expense

 

176

 

437

 

613

 

Total other expense

 

51,149

 

29,400

 

80,549

 

Earnings (loss) before income taxes

 

24,699

 

(32,152

)

(7,453

)

Income tax provision

 

9,834

 

455

 

10,289

 

Net earnings (loss)

 

$

14,865

 

$

(32,607

)

$

(17,742

)

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

175,119

 

$

39,416

 

$

214,535

 

 

 

 

 

 

 

 

 

Attendance

 

67,765

 

27,526

 

95,291

 

Average screens

 

7,958

 

2,719

 

10,677

 

 



 

Segment pro forma financial data

Nine Months ended September 30, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

1,801,949

 

$

694,785

 

$

2,496,734

 

Food & beverage

 

946,803

 

246,751

 

1,193,554

 

Other

 

131,318

 

87,092

 

218,410

 

Total revenues

 

2,880,070

 

1,028,628

 

3,908,698

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

976,713

 

290,375

 

1,267,088

 

Food & beverage costs

 

129,061

 

59,666

 

188,727

 

Operating expense

 

783,224

 

334,683

 

1,117,907

 

Rent

 

438,543

 

162,718

 

601,261

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

1,542

 

174

 

1,716

 

Other

 

81,204

 

49,049

 

130,253

 

Depreciation & amortization

 

254,144

 

121,331

 

375,475

 

Impairment of long-lived assets

 

2,669

 

298

 

2,967

 

Operating costs and expenses

 

2,667,100

 

1,018,294

 

3,685,394

 

Operating income

 

212,970

 

10,334

 

223,304

 

Other expense (income)

 

(5

)

101,380

 

101,375

 

Interest expense

 

195,763

 

16,856

 

212,619

 

Equity in earnings of non-consolidated entities

 

(31,501

)

(3,389

)

(34,890

)

Investment (income) expense

 

(9,602

)

425

 

(9,177

)

Total other expense

 

154,655

 

115,272

 

269,927

 

Earnings (loss) before income taxes

 

58,315

 

(104,938

)

(46,623

)

Income tax provision (benefit)

 

23,448

 

(5,782

)

17,666

 

Net earnings (loss)

 

$

34,867

 

$

(99,156

)

$

(64,289

)

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

514,613

 

$

138,178

 

$

652,791

 

 

 

 

 

 

 

 

 

Attendance

 

197,992

 

83,067

 

281,059

 

Average screens

 

8,009

 

2,721

 

10,730

 

 

Segment pro forma financial data

Three Months ended December 31, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

595,120

 

$

262,914

 

$

858,034

 

Food & beverage

 

306,524

 

90,230

 

396,754

 

Other

 

45,132

 

47,832

 

92,964

 

Total revenues

 

946,776

 

400,976

 

1,347,752

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

316,824

 

109,241

 

426,065

 

Food & beverage costs

 

40,178

 

21,166

 

61,344

 

Operating expense

 

276,497

 

118,220

 

394,717

 

Rent

 

144,806

 

50,225

 

195,031

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

—

 

—

 

—

 

Other

 

38,994

 

15,771

 

54,765

 

Depreciation & amortization

 

90,057

 

39,477

 

129,534

 

Impairment of long-lived assets

 

5,544

 

1,847

 

7,391

 

Operating costs and expenses

 

912,900

 

355,947

 

1,268,847

 

Operating income

 

33,876

 

45,029

 

78,905

 

Other income

 

(424

)

(10,600

)

(11,024

)

Interest expense

 

74,652

 

5,605

 

80,257

 

Equity in earnings of non-consolidated entities

 

(20,420

)

(2,768

)

(23,188

)

Investment (income) expense

 

(552

)

105

 

(447

)

Total other expense

 

53,256

 

(7,658

)

45,598

 

Earnings (loss) before income taxes

 

(19,380

)

52,687

 

33,307

 

Income tax benefit

 

(14,860

)

(916

)

(15,776

)

Net earnings (loss)

 

$

(4,520

)

$

53,603

 

$

49,083

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

162,281

 

$

88,891

 

$

251,172

 

 

 

 

 

 

 

 

 

Attendance

 

67,202

 

31,011

 

98,213

 

Average screens

 

8,322

 

2,725

 

11,047

 

 



 

Segment pro forma financial data

Year ended December 31, 2016

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

2,397,069

 

$

957,699

 

$

3,354,768

 

Food & beverage

 

1,253,327

 

336,981

 

1,590,308

 

Other

 

176,450

 

134,924

 

311,374

 

Total revenues

 

3,826,846

 

1,429,604

 

5,256,450

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

1,293,537

 

399,616

 

1,693,153

 

Food & beverage costs

 

169,239

 

80,832

 

250,071

 

Operating expense

 

1,059,721

 

452,903

 

1,512,624

 

Rent

 

583,349

 

212,943

 

796,292

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

1,542

 

174

 

1,716

 

Other

 

120,198

 

64,820

 

185,018

 

Depreciation & amortization

 

344,201

 

160,808

 

505,009

 

Impairment of long-lived assets

 

8,213

 

2,145

 

10,358

 

Operating costs and expenses

 

3,580,000

 

1,374,241

 

4,954,241

 

Operating income

 

246,846

 

55,363

 

302,209

 

Other expense (income)

 

(429

)

90,780

 

90,351

 

Interest expense

 

270,415

 

22,461

 

292,876

 

Equity in earnings of non-consolidated entities

 

(51,921

)

(6,157

)

(58,078

)

Investment (income) expense

 

(10,154

)

530

 

(9,624

)

Total other expense

 

207,911

 

107,614

 

315,525

 

Earnings (loss) before income taxes

 

38,935

 

(52,251

)

(13,316

)

Income tax provision (benefit)

 

8,588

 

(6,698

)

1,890

 

Net earnings (loss)

 

$

30,347

 

$

(45,553

)

$

(15,206

)

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

676,894

 

$

227,069

 

$

903,963

 

 

 

 

 

 

 

 

 

Attendance

 

265,194

 

114,078

 

379,272

 

Average screens

 

8,087

 

2,722

 

10,809

 

 



 

Segment pro forma financial data

Three Months ended March 31, 2017

(dollars in thousands)

 

 

 

US

 

International

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Admissions

 

$

610,787

 

$

259,513

 

$

870,300

 

Food & beverage

 

320,177

 

89,579

 

409,756

 

Other

 

46,759

 

32,529

 

79,288

 

Total revenues

 

977,723

 

381,621

 

1,359,344

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Film exhibition costs

 

332,255

 

110,103

 

442,358

 

Food & beverage costs

 

42,752

 

20,774

 

63,526

 

Operating expense

 

268,539

 

109,356

 

377,895

 

Rent

 

146,120

 

50,419

 

196,539

 

General and administrative:

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

23,011

 

—

 

23,011

 

Other

 

22,679

 

16,231

 

38,910

 

Depreciation & amortization

 

96,520

 

35,411

 

131,931

 

Impairment of long-lived assets

 

—

 

—

 

—

 

Operating costs and expenses

 

931,876

 

342,294

 

1,274,170

 

Operating income

 

45,847

 

39,327

 

85,174

 

Other income

 

(2,701

)

—

 

(2,701

)

Interest expense

 

66,388

 

6,261

 

72,649

 

Equity in (earnings) loss of non-consolidated entities

 

2,333

 

(1,832

)

501

 

Investment income

 

(5,343

)

(194

)

(5,537

)

Total other expense

 

60,677

 

4,235

 

64,912

 

Earnings (loss) before income taxes

 

(14,830

)

35,092

 

20,262

 

Income tax benefit

 

(4,558

)

(591

)

(5,149

)

Net earnings (loss)

 

$

(10,272

)

$

35,683

 

$

25,411

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

195,339

 

$

77,008

 

$

272,347

 

 

 

 

 

 

 

 

 

Attendance

 

65,681

 

33,030

 

98,711

 

Average screens

 

7,969

 

2,678

 

10,647

 

 



 

 

Adjusted EBITDA

 

We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net earnings (loss) 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 attributable EBITDA from equity investments in theatre operators in international markets and any cash distributions of earnings from other equity method investees. These further adjustments are itemized below. 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 or as 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. The following table sets forth our Adjusted EBITDA by reportable operating segment and our reconciliation of Adjusted EBITDA:

 

Reconciliation of Pro Forma Adjusted EBITDA

to Pro Forma Net Earnings (Loss)

(dollars in thousands)

 

 

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

3/31/2016

 

6/30/2016

 

6/30/2016

 

9/30/2016

 

9/30/2016

 

12/31/2016

 

12/31/2016

 

3/31/2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

4,735

 

$

(51,282

)

$

(46,547

)

$

(17,742

)

$

(64,289

)

$

49,083

 

$

(15,206

)

$

25,411

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

8,721

 

(1,344

)

7,377

 

10,289

 

17,666

 

(15,776

)

1,890

 

(5,149

)

Interest expense

 

71,482

 

71,000

 

142,482

 

70,137

 

212,619

 

80,257

 

292,876

 

72,649

 

Depreciation and amortization

 

123,640

 

126,294

 

249,934

 

125,541

 

375,475

 

129,534

 

505,009

 

131,931

 

Impairment of long-lived assets

 

280

 

2,138

 

2,418

 

549

 

2,967

 

7,391

 

10,358

 

—

 

Certain operating expenses (1)

 

3,472

 

4,532

 

8,004

 

7,737

 

15,741

 

7,388

 

23,129

 

5,373

 

Equity in (earnings) losses of non-consolidated affiliates

 

(6,466

)

(12,878

)

(19,344

)

(15,546

)

(34,890

)

(23,188

)

(58,078

)

501

 

Cash distributions from non-consolidated entities (3)

 

17,681

 

590

 

18,271

 

3,401

 

21,672

 

18,380

 

40,052

 

24,397

 

Attributable EBITDA (2)

 

2,341

 

230

 

2,571

 

1,731

 

4,302

 

2,098

 

6,400

 

1,938

 

Investment (income) expense

 

(10,385

)

595

 

(9,790

)

613

 

(9,177

)

(447

)

(9,624

)

(5,537

)

Other expense (income) (4)

 

43,203

 

32,827

 

76,030

 

25,345

 

101,375

 

(10,546

)

90,829

 

(2,262

)

General and administrative expense-unallocated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs (5)

 

1,645

 

—

 

1,645

 

71

 

1,716

 

—

 

1,716

 

23,011

 

Stock-based compensation expense (6)

 

2,810

 

2,395

 

5,205

 

2,409

 

7,614

 

6,998

 

14,612

 

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDA

 

$

263,159

 

$

175,097

 

$

438,256

 

$

214,535

 

$

652,791

 

$

251,172

 

$

903,963

 

$

272,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Markets

 

$

180,565

 

$

158,929

 

$

339,494

 

$

175,119

 

$

514,613

 

$

162,281

 

$

676,894

 

$

195,339

 

International Markets

 

82,594

 

16,168

 

98,762

 

39,416

 

138,178

 

88,891

 

227,069

 

77,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDA

 

$

263,159

 

$

175,097

 

$

438,256

 

$

214,535

 

$

652,791

 

$

251,172

 

$

903,963

 

$

272,347

 

 


(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, non-cash deferred digital equipment rent expense, and 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, include components of interest cost for the time value of money or are non-operating in nature.

 

(2)         Attributable EBITDA includes 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 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 service to these theatre operators including information technology systems, certain on-screen advertising services and our gift card and package ticket program. As these investments relate only to our Nordic acquisition this represents the first time we have made this adjustment and does not impact prior historical presentation of Adjusted EBITDA.

 

 

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

Pro Forma

 

 

 

Quarter Ended

 

Quarter Ended

 

Six Months Ended

 

Quarter Ended

 

Nine Months Ended

 

Quarter Ended

 

Year Ended

 

Quarter Ended

 

 

 

3/31/2016

 

6/30/2016

 

6/30/2016

 

9/30/2016

 

9/30/2016

 

12/31/2016

 

12/31/2016

 

3/31/2017

 

Equity in earnings (loss)

 

$

(6,466

)

$

(12,878

)

$

(19,344

)

$

(15,546

)

$

(34,890

)

$

(23,188

)

$

(58,078

)

$

501

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) non-theatre JV’s

 

(8,220

)

(12,528

)

(20,748

)

(16,641

)

(37,389

)

(24,287

)

(61,676

)

(927

)

Equity in earnings (loss) International theatre JV’s

 

1,754

 

(350

)

1,404

 

1,095

 

2,499

 

1,099

 

3,598

 

1,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

57

 

10

 

67

 

87

 

154

 

549

 

703

 

73

 

Investment income

 

(117

)

(48

)

(165

)

(47

)

(212

)

(145

)

(357

)

(120

)

Interest expense

 

21

 

1

 

22

 

11

 

33

 

17

 

50

 

10

 

Depreciation and amortization

 

626

 

617

 

1,243

 

585

 

1,828

 

578

 

2,406

 

547

 

Attributable EBITDA

 

$

2,341

 

$

230

 

$

2,571

 

$

1,731

 

$

4,302

 

$

2,098

 

$

6,400

 

$

1,938

 

 

(3)   Includes U.S. non-theatre distributions from equity method investments and International non-theatre distributions from equity method investments to the extent received. We believe including cash distributions is an appropriate reflection of the contribution of these investments to our operations.

 

(4)         Other expense relate to financing activities and foreign currency transaction gains and losses on debt in our international markets. We exclude other expense and income related to financing activities as the amounts are similar to interest expense or income and are non-operating in nature.

 

(5)         Merger, acquisition and transition costs are excluded as it is non-operating in nature.

 

(6)         Non-cash or non-recurring expense included in general and administrative: other.

 

Adjusted EBITDA is a non-U.S. 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 estimate our value.

 

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;

 

·                  does not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; and

 

·                  does not reflect the impact of divestitures that may be required in connection with recently completed acquisitions.