AMC(AMC) - 2024 Q3 - Quarterly Results

AMC Entertainment Holdings, Inc. Third Quarter 2024 Results Financial & Operational Highlights The company reported Q3 revenues of $1.35 billion and a net loss, but showed strong sequential improvement Third Quarter 2024 Summary Results The company reported total revenues of $1.35 billion, a net loss of $20.7 million, and ended Q3 with $527.4 million in cash Q3 2024 Financial Summary | Metric | Value (USD) | | :--- | :--- | | Total Revenues | $1,348.8 million | | Net Loss | $(20.7) million | | Adjusted EBITDA | $161.8 million | | Net cash used in operating activities | $(31.5) million | | Cash and cash equivalents | $527.4 million | Management Commentary Management highlighted a historically strong Adjusted EBITDA, significant sequential growth, and a bullish outlook - Q3 2024 Adjusted EBITDA was the second-best performance of any third quarter in AMC's 104-year history[2] - Compared to Q2 2024, Q3 Total Revenues were 31% stronger, Net Loss narrowed by 37%, and Adjusted EBITDA was four times stronger[2] - The company achieved a new record for third-quarter admissions revenue per patron and an all-time quarterly record for food and beverage revenue per patron[2] - Management is bullish about the upcoming movie slate, expecting the industry-wide box office to rise markedly[2][4] Detailed Financial Performance Q3 revenues declined 4.1% YoY to $1.35 billion, driven by lower attendance despite higher per-patron spending Key Financial Results (GAAP & Non-GAAP) The company's Q3 revenue fell 4.1% YoY, shifting from a net profit to a net loss of $20.7 million Q3 2024 vs Q3 2023 Performance (in millions) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,348.8 | $1,405.9 | (4.1)% | | Net Earnings (Loss) | $(20.7) | $12.3 | $(33.0) | | Adjusted EBITDA | $161.8 | $199.9 | $(38.1) | | Diluted EPS | $(0.06) | $0.08 | $(0.14) | | Attendance (thousands) | 65,087 | 73,576 | (11.5)% | Nine Months 2024 vs 2023 Performance (in millions) | Metric | YTD 2024 | YTD 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,330.8 | $3,708.2 | (10.2)% | | Net Loss | $(217.0) | $(214.6) | $(2.4) | | Adjusted EBITDA | $179.1 | $406.4 | $(227.3) | | Diluted EPS | $(0.69) | $(1.43) | $0.74 | | Attendance (thousands) | 161,731 | 187,565 | (13.8)% | Consolidated Financial Statements Financial statements detail a YoY decline in revenue and operating income, with $4.14 billion in corporate borrowings Consolidated Statement of Operations Highlights - Q3 (in millions) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenues | $1,348.8 | $1,405.9 | | Admissions | $744.2 | $797.7 | | Food and beverage | $490.4 | $482.7 | | Operating Income | $71.8 | $99.4 | | Net Earnings (Loss) | $(20.7) | $12.3 | Consolidated Balance Sheet Highlights (in millions) | Line Item | Sept 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $527.4 | $884.3 | | Corporate borrowings | $4,144.0 | $4,577.4 | | Total assets | $8,324.1 | $9,009.2 | Operating Metrics & Segment Data Attendance fell 11.5% YoY, but average ticket price and record food and beverage revenue per patron increased Q3 2024 Key Operating Metrics (YoY) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Attendance (thousands) | 65,087 | 73,576 | | Average Ticket Price | $11.43 | $10.84 | | F&B Revenue per Patron | $7.53 | $6.56 | | Average Screens | 9,534 | 9,781 | Q3 2024 Segment Performance (in millions) | Segment | Revenues | Adjusted EBITDA | | :--- | :--- | :--- | | U.S. Markets | $1,055.3 | $143.3 | | International Markets | $293.5 | $18.5 | | Consolidated | $1,348.8 | $161.8 | Balance Sheet & Capital Markets Activity The company improved its debt profile by extending maturities for $2.4 billion of debt and reducing total borrowings - The company ended the quarter with $527.4 million in cash, excluding $49.7 million in restricted cash[8] - Completed transactions to extend the maturity of approximately $2.4 billion of debt due in 2026 to new maturity dates in 2029 and 2030[8] - Year-to-date in 2024, the company has reduced the total principal amount of corporate borrowings and finance leases by $349 million[14] - Various debt tranches, including Second Lien Notes and Senior Subordinated Notes, were repurchased or exchanged for a combination of cash and Class A common stock[12][13] Non-GAAP Financial Measure Reconciliations This section reconciles GAAP net loss to non-GAAP measures like Adjusted EBITDA and shows negative Free Cash Flow Q3 2024 Adjusted EBITDA Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net Loss | $(20.7) | | Plus: Income tax benefit | $(1.1) | | Plus: Interest expense | $119.6 | | Plus: Depreciation & amortization | $80.8 | | Other adjustments | $(16.8) | | Adjusted EBITDA | $161.8 | Q3 2024 Free Cash Flow Reconciliation (in millions) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(31.5) | $65.9 | | Less: Total capital expenditures | $(60.7) | $(57.5) | | Free Cash Flow | $(92.2) | $8.4 | Q3 2024 Adjusted Net Loss Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net Loss | $(20.7) | | Adjustments (Marked-to-market gain, debt extinguishment, etc.) | $4.8 | | Adjusted Net Loss | $(15.9) | Company Information & Forward-Looking Statements AMC is the world's largest movie exhibitor and provides cautionary notes regarding future performance risks - AMC is the largest movie exhibition company in the U.S., Europe, and worldwide, with approximately 880 theatres and 9,800 screens[17] - The company cautions that forward-looking statements regarding revenue, EBITDA, and recovery are subject to significant risks, including liquidity concerns, debt covenants, competition, and the performance of motion picture production[19]