AMC(AMC) - 2024 Q2 - Quarterly Report

Theatre Operations - As of June 30, 2024, the company operated 886 theatres and 9,889 screens across 11 countries in the U.S. and Europe[165] - As of June 30, 2024, AMC had approximately 33 million member households enrolled in its loyalty programs, representing about 48.9% of U.S. market attendance[171] - The number of IMAX® theatres remained stable at 183 in the U.S. as of June 30, 2024, with a total of 216 IMAX® theatres globally[170] - The company operated 554 theatres in the U.S. markets, down from 569 theatres in the previous year, a decrease of 2.6%[189] - The number of screens operated in the U.S. markets was 7,262 as of June 30, 2024, compared to 7,432 in the same period of 2023, indicating a slight reduction[1] Revenue Sources and Performance - The primary revenue sources are box office admissions and food and beverage sales, with box office admissions being the largest revenue contributor[165] - Total revenues for the three months ended June 30, 2024, were $1,030.6 million, a decrease of 23.5$1,347.9 million for the same period in 2023[186] - Admissions revenue decreased by 24.1% to $564.4 million from$744.1 million year-over-year[186] - The company experienced a significant decrease in food and beverage revenue, down 24.8% to $367.1 million from$488.2 million year-over-year[186] - Total revenues for the U.S. markets decreased to $1,505.0 million in the six months ended June 30, 2024, down from$1,791.9 million in the same period of 2023, representing a decline of approximately 16%[1] Attendance Trends - Future attendance and revenue levels are uncertain due to potential changes in movie studio release schedules and consumer behavior, particularly following labor strikes in 2023[159] - Attendance decreased to 50,013 thousand from 66,368 thousand year-over-year[187] - Attendance in U.S. markets decreased to 36,493 thousand from 50,023 thousand in the prior year, a drop of 27.0%[189] - Attendance in the U.S. markets decreased to 66,983 thousand in the six months ended June 30, 2024, compared to 82,385 thousand in the same period of 2023, indicating a decline of approximately 19%[1] Financial Losses and Costs - Operating income for the three months ended June 30, 2024, was a loss of $47.4 million, compared to an income of$84.8 million for the same period in 2023[186] - Net earnings for the three months ended June 30, 2024, were a loss of $32.8 million, compared to a profit of$8.6 million in the same period of 2023[186] - The net loss for the U.S. markets was $(142.5) million for the six months ended June 30, 2024, compared to a net loss of$(188.7) million in the same period of 2023[1] - Net loss was $(32.8) million for the three months ended June 30, 2024, compared to net earnings of$8.6 million for the same period in 2023[216] Debt and Financing - There are risks associated with significant indebtedness, including the potential for dilution of common stock due to future share issuances[161] - The company raised gross proceeds of $250 million through the issuance of approximately 72.5 million shares of Common Stock during the six months ended June 30, 2024[176] - AMC executed a debt for equity exchange, extinguishing$191.4 million in Second Lien Notes due 2026, resulting in a gain of $91.1 million[175] - The company completed refinancing transactions on July 22, 2024, extending the maturities of approximately$1.6 billion of debt to 2029 and 2030[273] Operational Efficiency - The company is exploring strategic initiatives to optimize its theatre circuit, including new constructions and transformations of existing theatres[162] - The company plans to focus on market expansion and new product development to drive future growth[189] - Operating costs and expenses for the three months ended June 30, 2024, were $1,078.0 million, a decrease of 14.7$1,263.1 million in the same period of 2023[186] - Operating costs and expenses decreased by $185.1 million, or 14.7$222.9 million for the six months ended June 30, 2024, compared to $203.3 million for the same period in 2023, primarily due to a decline in attendance[279] - Capital expenditures for the six months ended June 30, 2024, were$95.1 million, slightly lower than $96.0 million for the same period in 2023[280] - The company estimates capital expenditures for the year ending December 31, 2024, to be approximately$175 million to $225 million to maintain and enhance operations[281]