8-K: Current report filing

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Exhibit 99.1

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FOR IMMEDIATE RELEASE

AMC Entertainment Holdings, Inc. Reports

Fourth Quarter and Full Year 2023 Results

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LEAWOOD, KANSAS - (February 28, 2024) -- AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), today reported results for the fourth quarter and year ended December 31, 2023.

Full Year 2023 Summary

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Fourth Quarter Summary

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Commenting on the earnings announcement, Adam Aron, AMC Entertainment Chairman and CEO said, “AMC reported strong results for both the fourth quarter and full year of 2023, once again exceeding Wall Street’s consensus expectations. It was another full year of continued meaningful recovery from the aftermath of the 2020 pandemic, as evidenced by AMC’s full year 2023 revenues growing by 23% over 2022, and AMC’s Adjusted EBITDA growing by some nine times, from $46.6 million in 2022 to $425.8 million in 2023. AMC’s Revenue and Adjusted EBITDA for 2023 were the strongest since pre-pandemic 2019, and for the first time post-pandemic, AMC delivered positive Adjusted EBITDA in each quarter of the year.”

¹ Non-GAAP Operating Cash Generated (Burn) is a non-GAAP metric that represents cash generated (burned) before debt servicing costs and before deferred rent payback

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Aron continued, “What is particularly noteworthy is how much AMC benefited from our trailblazing industry leading efforts with our highly successful distribution of two concert movies TAYLOR SWIFT | THE ERAS TOUR and RENAISSANCE: A FILM BY BEYONCÉ. Despite a diminished box office overall, in the fourth quarter compared to the same quarter a year ago, AMC’s Revenue grew by 11.5% and AMC’s Adjusted EBITDA almost tripled. Literally, all of that increase in AMC’s Revenue and EBITDA is attributable to our having shown these two movies in our theatres in the U.S. and internationally. If that is not enough, both movies played to rave critical acclaim: Each received a rare A+ CinemaScore, and the Rotten Tomatoes response was astronomical with Taylor‘s film scoring 99/98 and Beyoncé’s film 97/99. These two movies added greatly to movie theatre ticket sales across our entire industry, as just these two films represented fully one ninth of the complete fourth quarter domestic industry-wide box office. This is a stunning result given that neither of these films were on anyone’s drawing board until mid-year, and that they were the first movies ever distributed by AMC in our entire 103-year history. To that end, our praise for Taylor Swift and Beyoncé Knowles Carter has no limit, and we offer our boundless thanks to these two world class artists for entrusting AMC to collaborate with them as to the theatrical exhibition of their two masterpiece creations.”

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Aron added, “Among AMC’s most important accomplishments in 2023 resulted from the attention we devoted to strengthening our balance sheet and bolstering our cash reserves. In full year 2023, AMC reduced the principal balance of its debt by $448.1 million. We also paid off the lion share of our remaining deferred rent obligations which dated back to the early pandemic years. Of enormous significance, in 2023 AMC also raised $865 million of gross cash proceeds through the sale of equity. Along with similar actions to reduce debt and increase cash in prior years, at year-end 2023, AMC actually had less net debt than it had at the start of the pandemic. AMC also had some $884.3 million of year-ending cash reserves. We believe that sizable cash position puts AMC in an enviable position to tackle the challenges that will come our way this year. And looking ahead to 2024, we will not hesitate to continue in our efforts to reduce debt, extend debt maturities and bring in more cash to our treasury as opportunities to do so arise.”

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Aron concluded, “It is hardly a secret that the multi-month writers and actors strikes of 2023 crippled Hollywood for months on end, and seriously hurt theatre operators who were forced to wait for delayed movie titles. After three years of hard work by one and all, the domestic industry-wide box office finally was in sight of pre-pandemic levels. In the peak of summer, July 2023, it was up 6% to July of 2019. Clearly, moviegoers flocked to theatres when Hollywood released films in quantity and of quality. Just think BARBIE, OPPENHEIMER and TAYLOR SWIFT | THE ERAS TOUR among so many others. But the strikes clearly interrupted that momentum. The fourth quarter domestic industry-wide box office was down 35% versus pre-pandemic 2019. The January/February 2024 domestic industry-wide box office was down about 45% versus the same months of pre-pandemic 2020. We point this out, because importantly we think the strike impacts will only be short-term in nature. AMC believes that the box office will start to strengthen again as soon as this coming month of March, in some of the summer months and especially in the latter third of this year. And over the medium term, we are both bullish and optimistic. With all the caveats that no one’s crystal ball is perfect, we currently expect that the industry box office in 2025 will grow by $1 to $2 billion, or more, in size over 2024.”

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Aron said in summary, “Knowing though that there will be strike-caused challenges, especially early in 2024, we have implemented decisive measures to strategically position the company to successfully navigate what we believe is only a temporary setback and re-establish our longer-term recovery trajectory. AMC has tightened operating hours, mitigated costs, right-sized our theatre portfolio, pushed the innovation envelope in merchandise and food & beverage sales, as well as established a new revenue stream with concert movie distribution. Most importantly, we have increased our liquidity and strengthened our balance sheet through equity capital raising, debt exchanges and debt repurchases at a discount. As a result of our capital markets activities, since the beginning of 2023 AMC raised $865 million in gross cash proceeds and reduced the principal balance of our debt and deferred rent liabilities by $566 million, or nearly $1 billion over the last two years. Given AMC’s proven ability to thread the needle in coping with one Herculean challenge after another, we are confident in our company’s future.”

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Key Financial Results (presented in millions, except operating data)

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* Please refer to the tables included later in this press release for definitions and full reconciliations of non-U.S. GAAP financial measures.

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Cash, Balance Sheet, and Capital Markets Activity

Cash at December 31, 2023 was $884.3 million excluding restricted cash of $27.1 million.

Fourth Quarter 2023

During the fourth quarter 2023, AMC:

Full Year 2023

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First Quarter 2024

During the first quarter 2024, AMC:

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Webcast Information

The Company will host a webcast for investors and other interested parties beginning at 4:00 p.m. CST/5:00 p.m. EST on Wednesday, February 28, 2024. To listen to the webcast, please visit the investor relations section of the AMC website at investor.amctheatres.com for a link. Investors and interested parties should go to the website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.

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An archive of the webcast will be available on the Company’s website after the call for a limited time.

About AMC Entertainment Holdings, Inc.

AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 900 theatres and 10,000 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, website, and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. In addition, in 2023 AMC launched AMC Theatres Distribution with the highly successful releases of TAYLOR SWIFT | THE ERAS TOUR and RENAISSANCE: A FILM BY BEYONCÉ. AMC Theatres Distribution expects to release more concert films with the world’s leading musical artists in the years ahead. For more information, visit www.amctheatres.com/.

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Website Information

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This press release, along with other news about AMC, is available at www.amctheatres.com. We routinely post information that may be important to investors in the Investor Relations section of our website, investor.amctheatres.com. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD, and we encourage investors to consult that section of our website regularly for important information about AMC. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document. Investors interested in automatically receiving news and information when posted to our website can also visit investor.amctheatres.com to sign up for email alerts.

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Forward-Looking Statements

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This communication includes “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In many cases, these forward-looking statements may be identified by the use of words such as “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “indicates,” “projects,” “goals,” “objectives,” “targets,” “predicts,” “plans,” “seeks,” and variations of these words and similar expressions. Examples of forward-looking statements include statements we make regarding our expected revenue, net loss, capital expenditure, Adjusted EBITDA and estimate cash and cash equivalent. Any forward-looking statement speaks only as of the date on which it is made. These forward-looking statements may include, among other things, statements related to AMC’s current expectations regarding the performance of its business, financial results, liquidity and capital resources, and the impact to its business and financial condition of, and measures being taken in response to, the COVID-19 virus, and are based on information available at the time the statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks, trends, uncertainties and other facts that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks, trends, uncertainties and facts include, but are not limited to: the sufficiency of AMC’s existing cash and cash equivalents and available borrowing capacity; availability of financing upon favorable terms or at all; AMC’s ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required unless it is able to achieve more normalized levels of operating revenues, likely would result with AMC seeking an in-court or out-of-court restructuring of its liabilities; the impact of the COVID-19

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virus on AMC, the motion picture exhibition industry, and the economy in general; increased use of alternative film delivery methods or other forms of entertainment; the continued recovery of the North American and international box office; AMC’s significant indebtedness, including its borrowing capacity and its ability to meet its financial maintenance and other covenants and limitations on AMC's ability to take advantage of certain business opportunities imposed by such covenants; shrinking exclusive theatrical release windows; the seasonality of AMC’s revenue and working capital; intense competition in the geographic areas in which AMC operates; risks relating to impairment losses, including with respect to goodwill and other intangibles, and theatre and other closure charges; motion picture production and performance (including as a result of production delays to the release of movies caused by labor stoppages, including but not limited to the Writers Guild of America strike and the Screen Actors Guild-American Federation of Television and Radio Artists strike that occurred during 2023); general and international economic, political, regulatory and other risks, including but not limited to rising interest rates; AMC’s lack of control over distributors of films; limitations on the availability of capital, including on the authorized number of common stock; dilution of voting power through the issuance of preferred stock; AMC’s ability to achieve expected synergies, benefits and performance from its strategic initiatives; AMC’s ability to refinance its indebtedness on favorable terms; AMC’s ability to optimize its theatre circuit; AMC’s ability to recognize interest deduction carryforwards, net operating loss carryforwards, and other tax attributes to reduce future tax liability; supply chain disruptions, labor shortages, increased cost and inflation; and other factors discussed in the reports AMC has filed with the SEC. Should one or more of these risks, trends, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, we caution you against relying on forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. For a detailed discussion of risks, trends and uncertainties facing AMC, see the section entitled “Risk Factors” in AMC’s 2023 Form 10-K for the year ended December 31, 2023 and Form 10-Q for the quarter ended September 30, 2023, each as filed with the SEC, and the risks, trends and uncertainties identified in AMC’s other public filings. AMC does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law.

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(Tables follow)

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AMC Entertainment Holdings, Inc.

Consolidated Statements of Operations

Quarter and Year Ended December 31, 2023 and December 31, 2022

(dollars in millions, except share and per share data)

(unaudited)

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Consolidated Balance Sheet Data (at period end):

(dollars in millions)

(unaudited)

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Consolidated Other Data:

(in millions, except operating data)

(unaudited)

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Segment Other Data:

(in millions, except per patron amounts and operating data)

(unaudited)

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Segment Information:

(unaudited, in millions)

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Reconciliation of Adjusted EBITDA (1):

(dollars in millions)

(unaudited)

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Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. For example, Adjusted EBITDA:

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During the year ended December 31, 2022, we recorded non-cash impairment charges related to our long-lived assets of $73.4 million on 68 theatres in the U.S. markets with 817 screens which were related to property, net and operating lease right-of-use assets, net and $59.7 million on 53 theatres in the International markets with 456 screens which were related to property, net and operating lease right-of-use assets, net.

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Reconciliation of Attributable EBITDA

(dollars in millions)

(Unaudited)

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Investment expense (income) during the year ended December 31, 2022, primarily includes deterioration in estimated fair value of our investment in common shares of Hycroft Mining Holding Corporation of $12.5 million and a loss on sale of our investment in NCM common units, partially offset by $(6.2) million of appreciation in estimated fair value of our investment in warrants to purchase common shares of Hycroft Mining Holding Corporation and interest income of $(5.8) million.

Other expense (income) during the year ended December 31, 2022 included loss on debt extinguishment of $92.8 million, partially offset by income related to foreign currency transaction gains of $(12.3) million and contingent lease guarantees of $(0.2) million.

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Reconciliation of Non-GAAP Operating Cash (Burn) Generated (1) and Free Cash Flow (1)

(dollars in millions)

(unaudited)

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