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AMC - AMC Entertainment Holdings Inc
$4.64
-0.06(-1.28%)8:00:01 PM 5/26/2023
AMC Entertainment Holdings, Inc. is an American movie theater chain headquartered in Leawood, Kansas, and the largest movie theater chain in the world. Founded in 1920, AMC has the largest share of the U.S. theater market ahead of Regal and Cinemark Theatres. After acquiring Odeon Cinemas, UCI Cinemas, and Carmike Cinemas in 2016, it became the largest movie theater chain in both the world and the United States. It has 2,866 screens in 358 theatres in Europe and 7,967 screens in 620 theatres in the United States.

Financials

Quarterly financials
(USD)Mar 2023Q/Q
Revenue954.4MM-4%
Operating Income-108.2MM-52%
Operating Expenses1.1MM-144%
Net Income-235.5MM-18%
Interest Expense101.1MM+1%

Revenue Breakdowns

The revenue breakdowns above are extracted from this specific SEC Edgar 10-K filling, with report date as 2022-12-31 and filed on 2023-02-28. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.

Highlights of Management Discussion and Risk Factors in 10-K/10-Q filling

Positive
1.
This transaction was undertaken by us to further increase our liquidity and strengthen our balance sheet at a transaction multiple that demonstrates that market participants ascribe positive value to the business.
2.
We are continuing to take significant measures to further strengthen our financial position and enhance our operations, by eliminating non-essential costs, including reductions to our variable costs and elements of our fixed cost structure, introducing new initiatives, and optimizing our theatrical footprint.
3.
We believe that recent operating revenues and attendance levels are positive signs of continued demand for the moviegoing experience.
4.
As part of our long-term growth strategy, we expect to continue to expand our IMAX® relationship across the U.S. and Europe, further strengthening our position as the largest IMAX® exhibitor in the U.S. and a leading IMAX® exhibitor in the United Kingdom and Europe.
5.
We also offer our private label PLF experience at many of our locations, with superior sight and sound technology and enhanced seating as contrasted with our traditional auditoriums.
6.
Our projections assume that attendance will continue to gradually improve from 2022 levels to the point of approaching historical levels.
7.
Our projections assume that attendance will continue to gradually improve from 2022 levels to the point of approaching historical levels.
8.
We believe we are an industry leader in the development and operation of theatres.
9.
In response to the COVID-19 pandemic, AMC’s robust online and mobile platforms in our U.S. markets offer customers the safety and convenience of enhanced social distancing by allowing them to purchase tickets and concession items online, avoid the ticket line, and limit other high-touch interactions with AMC employees and other guests.
10.
We believe the anticipated volume of titles available for theatrical release, and the anticipated broad appeal of many of those titles will support increased operating revenues and attendance levels.
11.
Our marketing efforts are not limited to our loyalty program as we continue to improve our customer connections through our website and mobile apps and expand our online and movie offerings.
12.
Additionally, we enhanced liquidity through debt refinancing that extended maturities, purchases of debt below par value, and equity sales.
13.
OverviewAMC is the world’s largest theatrical exhibition company and an industry leader in innovation and operational excellence.
14.
These proprietary PLF auditoriums offer an enhanced theatrical experience for movie-goers beyond our current core theatres, at a lower price premium than IMAX® and/or Dolby Cinema™.
15.
Admissions revenues increased $807.2 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily due to an increase in attendance from 128.5 million patrons to 201.0 million patrons and a 0.9% increase in average ticket price.
16.
Admissions revenues increased $625.7 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily due to an increase in attendance from 91.1 million patrons to 141.4 million patrons and an 4.1% increase in average ticket price.
17.
Food and beverage revenues increased $378.6 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily due to the increase in attendance and an increase in food and beverage per patron.
18.
In order to achieve net positive operating cash flows and long-term profitability, we believe that operating revenues will need to increase significantly from 2021 and 2022 levels to levels in line with pre-COVID-19 operating revenues.
19.
Admissions revenues increased $181.5 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily due to an increase in attendance from 37.4 million patrons to 59.6 million patrons partially offset by a 7.0% decrease in average ticket price.
20.
Our long-term growth strategy calls for investment across a spectrum of enhanced food and beverage formats, ranging from simple, less capital-intensive food and beverage menu improvements to the expansion of our Dine-In Theatre brand.
21.
Additionally, as of December 31, 2022, our per screen grosses were 22% higher than our closest competition.
22.
We believe that maximizing comfort and convenience for our customers will be increasingly necessary to maintain and improve our relevance.
23.
In order to achieve net positive operating cash flows and long-term profitability, we believe that operating revenues will need to increase significantly to levels in line with pre-COVID-19 operating revenues.
24.
This enables us to have a larger, more personalized and targeted marketing effort.
25.
Total revenues increased $297.6 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021.
26.
Total revenues increased $1,085.9 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021.
27.
The increase in cash used in operating activities was primarily due to increased deferred rent payments and increases in working capital used, partially offset by an increase in attendance, which resulted in improved operating results during the year ended December 31, 2022.
28.
The year-over-year improvement was primarily due to the decreased net loss driven by an increase in attendance primarily due to the COVID-19 pandemic impact on the prior year and lifting of seat restrictions, partially offset by increases in operating costs due to the increase in attendance and utilities costs, decreases in government assistance, decreases in attributable EBITDA from equity investments in theatre operations and increases in rent expense.
29.
Total revenues increased $1,383.5 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021.
30.
We upgraded our mobile applications across the U.S. circuit with the ability to order food and beverage offerings via our mobile applications while ordering tickets ahead of scheduled showtimes.
31.
Consequently, we typically generate higher revenues during such periods.
32.
Our recent Dine-In Theatre concepts are designed to capitalize on the latest food service trend, the fast and casual eating experience.
33.
Food and beverage revenues increased $77.8 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily due to the increase in attendance, partially offset by the decrease in food and beverage per patron.
34.
Food and beverage revenues increased $456.4 million, during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily due to the increase in attendance, partially offset by the decrease in food and beverage per patron.
35.
Upon reopening a remodeled theatre, we typically increase the ticket price to reflect the enhanced consumer experience.
Negative
1.
A COVID-19 resurgence during the fourth quarter of 2020 resulted in additional local, state, and federal governmental restrictions and many previously reopened theatres in International markets temporarily suspended operations again.
2.
Factors that could lead to impairment of long-lived assets include adverse industry or economic trends that would result in declines in the operating performance of our Domestic and International Theatres.
3.
Examples of adverse events or circumstances that could change include (i) limited availability of new theatrical releases; (ii) an adverse change in macroeconomic conditions; (iii) increased cost factors that have a negative effect on our earnings and 54 Table of Contentscash flows and higher interest rates; and (iv) negative or overall declining financial performance compared with our actual and projected results of relevant prior periods.
4.
Other factors that could lead to impairment of our goodwill include adverse industry or economic trends, declines in the market price of our Common Stock and AMC Preferred Equity Units and our debt instruments, all of which we utilize in establishing the estimates underlying these values.
5.
Theatrical releases may continue to be postponed and windows shortened while the box office suffers from COVID-19 impacts.
6.
The increase in attendance was primarily due to the COVID-19 pandemic impact on the prior year which resulted in the temporary suspension or limited operations at our theatres in U.S. markets and International markets, deterred customers from attending our theatres when we resumed operations, and prompted film distributors to delay or alternatively distribute films.
7.
Food and beverage per patron decreased 1.9% from $6.67 to $6.54 due primarily to the decline in foreign currency translation rates.
8.
As further described below, we recorded impairment charges as of March 31, 2020, September 30, 2020, and December 31, 2020 due to significant decreases in our market enterprise value.
9.
If we are required to record an impairment charge it may substantially reduce the carrying value of our assets and reduce our income in the year in which it is recorded.
10.
If we are required to record an impairment charge to our goodwill it may substantially reduce the carrying value of goodwill on our balance sheet and reduce our income in the year in which it is recorded.
11.
The increase in attendance was primarily due to the COVID-19 pandemic impact on the prior year which resulted in the temporary suspension or limited operations at our theatres in International markets, deterred customers from attending our theatres when we resumed operations, and prompted film distributors to delay or alternatively distribute films.
12.
Temporarily Suspended or Limited OperationsDuring the first quarter of 2020, we temporarily suspended theatre operations in our U.S. markets and International markets in compliance with local, state, and federal governmental restrictions and recommendations on social gatherings to prevent the spread of COVID-19 and as a precaution to help ensure the health and safety of our guests and theatre staff.
13.
Declines in the operating performance of our Domestic and International Theatres, the fair value of our debt, and the trading price of our Common Stock and AMC Preferred Equity Units, together with small changes in other key input assumptions, and/or other events or circumstances could occur and could have a significant impact on the estimated fair values of our reporting units.
14.
As a result, film distributors have postponed new film theatrical releases and/or shortened the period of theatrical exclusivity (the “window”) and reduced the number of theatrically released motion pictures.
15.
The increase in attendance was primarily due to the COVID-19 pandemic impact on the prior year which resulted in the temporary suspension or limited operations at our theatres in U.S. markets, deterred customers from attending our theatres when we resumed operations, and prompted film distributors to delay or alternatively distribute films.
16.
Food and beverage per patron decreased 10.0% from $4.81 to $4.33 due primarily to decreases in foreign currency translation rates.
17.
Our current cash burn rates are not sustainable.
18.
During the fourth quarter of 2018, we recorded non-cash impairment losses of $13.8 million on 13 theatres in the U.S. markets with 150 screens and on 15 theatres in the International markets with 118 screens.
19.
See Note 10—Income Taxes in the Notes to the Consolidated Financial Statements under Part II Item 8 thereof for further information.​Net loss. 
20.
See Note 10—Income Taxes in the Notes to the Consolidated Financial Statements under Part II Item 8 thereof for further information.​Net loss. 
21.
As a percentage of food and beverage revenues, food and beverage costs were 15.6% for the year ended December 31, 2022, compared to 14.2% for the year ended December 31, 2021.As a percentage of revenues, operating expense was 37.5% for the year ended December 31, 2022 and 44.5% for the year ended December 31, 2021 due to the low levels of attendance in the prior year.
22.
During the first quarter of 2020, the severe impact of the COVID-19 pandemic on operations in Germany and Spain caused us to conclude the realizability of deferred tax assets held in those jurisdictions does not meet the more likely than not standard.
23.
Increases in market interest rates would cause interest expense to increase and earnings before income taxes to decrease.
The management discussion contents above are extracted from this specific SEC Edgar 10-K filling, with report date as 2022-12-31 and filed on 2023-02-28. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.
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