AMC(AMC) - 2025 Q1 - Quarterly Results

AMC Entertainment Holdings, Inc. First Quarter 2025 Results First Quarter 2025 Performance Overview AMC reported a decrease in total revenues to $862.5 million and an increased net loss of $(202.1) million for Q1 2025, compared to the prior year, with the CEO characterizing the weak industry-wide box office as a temporary anomaly given a significant rebound in April and May and a strong upcoming film slate. Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $862.5 million | $951.4 million | | Net Loss | $(202.1) million | $(163.5) million | | Adjusted EBITDA | $(58.0) million | $(21.2) million | | Net Cash Used in Operating Activities | $370.0 million | $188.3 million | | Cash and Cash Equivalents (at quarter end) | $378.7 million | N/A | - CEO Adam Aron stated that the weak Q1 2025 industry box office was an anomaly, with demand doubling year-over-year in April and early May 2025[2] - The company is optimistic about the rest of 2025 and 2026, citing a strong slate of upcoming blockbusters including new installments in the 'MISSION: IMPOSSIBLE', 'JURASSIC WORLD', and 'AVATAR' franchises[2] - Strategic initiatives under the 'AMC Go Plan' are progressing, including investments in comfortable seating, expansion of 'XL at AMC' screens, and adding more IMAX, Dolby, 4DX, and ScreenX auditoriums[4] Key Financial and Operating Metrics In Q1 2025, AMC's total revenues fell by 9.3% to $862.5 million, and the net loss widened to $(202.1) million from $(163.5) million in Q1 2024, though diluted loss per share improved to $(0.47) from $(0.62), while total attendance declined by 10.1% to 41.9 million. Q1 2025 Key Financial Results (in millions, except per share data) | GAAP Results | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total revenues | $862.5 | $951.4 | (9.3)% | | Net loss | $(202.1) | $(163.5) | $(38.6) | | Diluted loss per share | $(0.47) | $(0.62) | $0.15 | | Non-GAAP Results | | | | | Adjusted EBITDA | $(58.0) | $(21.2) | $(36.8) | | Adjusted diluted loss per share | $(0.58) | $(0.78) | $0.20 | Q1 2025 Operating Metrics | Operating Metrics | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Attendance (in thousands) | 41,903 | 46,631 | (10.1)% | | U.S. markets attendance (in thousands) | 26,907 | 30,490 | (11.8)% | | International markets attendance (in thousands) | 14,996 | 16,141 | (7.1)% | | Average screens | 9,430 | 9,703 | (2.8)% | Cash, Balance Sheet, and Capital Markets Activity As of March 31, 2025, AMC held $378.7 million in cash and cash equivalents, having raised $171.7 million in gross proceeds through at-the-market stock offerings and forward sale agreements, and repurchased $1.3 million of its 5.75% Senior Subordinated Notes due 2025. - Cash and cash equivalents stood at $378.7 million at the end of Q1 2025, excluding $49.0 million in restricted cash[6] - The company generated $171.7 million in gross proceeds from the sale of 17.1 million shares in at-the-market offerings and forward sale agreements for 30.0 million shares[7] - Repurchased $1.3 million aggregate principal amount of 5.75% Senior Subordinated Notes due 2025[7] Financial Statements The consolidated financial statements for Q1 2025 detail a year-over-year decline in revenues across admissions and food and beverage, leading to an increased operating loss of $(145.9) million, a reduction in cash and total assets compared to year-end 2024, and a significant increase in cash used in operating activities, while the company reduced its total number of operated theatres and screens. Consolidated Statements of Operations For Q1 2025, total revenues were $862.5 million, down from $951.4 million in Q1 2024, driven by lower admissions and food and beverage sales, resulting in an increased operating loss of $(145.9) million and a widened net loss of $(202.1) million year-over-year. Q1 2025 Statement of Operations (in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | | | | Admissions | $473.5 | $530.5 | | Food and beverage | $283.4 | $321.2 | | Total revenues | $862.5 | $951.4 | | Operating loss | $(145.9) | $(108.4) | | Net loss | $(202.1) | $(163.5) | | Diluted loss per share | $(0.47) | $(0.62) | Consolidated Balance Sheet Data As of March 31, 2025, AMC's cash and cash equivalents decreased to $378.7 million from $632.3 million at the end of 2024, while total corporate borrowings saw a slight reduction to $4,038.2 million, and the total stockholders' deficit improved slightly to $(1,737.8) million. Balance Sheet Data (in millions) | Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $378.7 | $632.3 | | Corporate borrowings | $4,038.2 | $4,075.1 | | Total stockholders' deficit | $(1,737.8) | $(1,760.5) | | Total assets | $8,053.0 | $8,247.5 | Consolidated Other Data In Q1 2025, net cash used in operating activities significantly increased to $370.0 million compared to $188.3 million in Q1 2024, with capital expenditures slightly lower at $47.0 million, and the company operating 865 theatres and 9,725 screens at quarter-end. Q1 2025 Other Data (in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(370.0) | $(188.3) | | Free cash flow | $(417.0) | $(238.8) | | Capital expenditures | $(47.0) | $(50.5) | | Number of theatres operated | 865 | 895 | | Number of screens operated | 9,725 | 10,005 | Segment Other Data In Q1 2025, attendance fell in both U.S. (down 11.8%) and International (down 7.1%) markets, with the average ticket price increasing slightly in the U.S. to $12.31 but decreasing internationally to $9.50, while the consolidated contribution margin per patron increased to $14.33 from $13.92. Q1 2025 Per Patron Metrics by Segment | Metric | U.S. Markets | International Markets | Consolidated | | :--- | :--- | :--- | :--- | | Attendance (thousands) | 26,907 | 14,996 | 41,903 | | Average ticket price | $12.31 | $9.50 | $11.30 | | F&B revenues per patron | $8.07 | $4.41 | $6.76 | | Contribution margin per patron | $15.79 | $11.72 | $14.33 | Reconciliation of Non-GAAP Financial Measures This section provides detailed reconciliations for non-GAAP metrics, showing consolidated Adjusted EBITDA at $(58.0) million for Q1 2025, a decline from $(21.2) million in the prior year, negative Free Cash Flow of $(417.0) million, and an Adjusted Net Loss of $(250.0) million, though Adjusted Diluted Loss Per Share improved to $(0.58). Segment Information (Revenues and Adjusted EBITDA) In Q1 2025, U.S. markets generated $617.0 million in revenue with an Adjusted EBITDA loss of $(57.4) million, while International markets contributed $245.5 million in revenue with a smaller Adjusted EBITDA loss of $(0.6) million, significantly worsening the U.S. market's Adjusted EBITDA loss compared to Q1 2024. Q1 2025 Segment Results (in millions) | Metric | U.S. Markets | International Markets | Consolidated | | :--- | :--- | :--- | :--- | | Revenues | | | | | Q1 2025 | $617.0 | $245.5 | $862.5 | | Q1 2024 | $689.1 | $262.3 | $951.4 | | Adjusted EBITDA | | | | | Q1 2025 | $(57.4) | $(0.6) | $(58.0) | | Q1 2024 | $(20.2) | $(1.0) | $(21.2) | Reconciliation of Adjusted EBITDA Adjusted EBITDA for Q1 2025 was $(58.0) million, reconciled from a net loss of $(202.1) million by adding back interest expense ($119.1 million) and depreciation and amortization ($76.1 million), and subtracting other income of $(58.1) million primarily related to fair value changes in derivatives. Q1 2025 Adjusted EBITDA Reconciliation (in millions) | Item | Amount | | :--- | :--- | | Net loss | $(202.1) | | Plus: Income tax provision | $1.6 | | Plus: Interest expense | $119.1 | | Plus: Depreciation and amortization | $76.1 | | Less: Other income | $(58.1) | | Other adjustments | $8.5 | | Adjusted EBITDA | $(58.0) | Reconciliation of Free Cash Flow Free cash flow for Q1 2025 was a negative $(417.0) million, a larger outflow than the negative $(238.8) million in Q1 2024, calculated by starting with net cash used in operating activities of $(370.0) million and subtracting total capital expenditures of $(47.0) million. Q1 2025 Free Cash Flow Reconciliation (in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(370.0) | $(188.3) | | Plus: total capital expenditures | $(47.0) | $(50.5) | | Free cash flow | $(417.0) | $(238.8) | Reconciliation of GAAP Gross Profit and Contribution Margin The company uses contribution margin to measure profitability before fixed costs, with the consolidated contribution margin at $600.5 million in Q1 2025, down from $649.1 million in the prior year, though the per-patron contribution margin improved to $14.33 from $13.92. Q1 2025 Contribution Margin Reconciliation (Consolidated, in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP gross profit (loss) | $(78.9) | $(43.3) | | Add back: Operating expense | $393.2 | $393.8 | | Add back: Rent | $218.1 | $224.5 | | Add back: Depreciation & amortization | $68.1 | $74.1 | | Contribution margin | $600.5 | $649.1 | - Consolidated contribution margin per patron increased to $14.33 in Q1 2025 from $13.92 in Q1 2024[29] Reconciliation of Adjusted Net Loss and Adjusted Diluted Loss Per Share Adjusted Net Loss for Q1 2025 was $(250.0) million, compared to $(204.5) million in Q1 2024, primarily due to excluding a $45.1 million non-cash gain on a derivative liability, while Adjusted Diluted Loss Per Share improved to $(0.58) from $(0.78) year-over-year. Q1 2025 Adjusted Net Loss Reconciliation (in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(202.1) | $(163.5) | | Marked-to-market gain on derivative liability | $(45.1) | — | | Other adjustments | $(2.8) | $(41.0) | | Adjusted net loss | $(250.0) | $(204.5) | | Adjusted diluted loss per share | $(0.58) | $(0.78) | Company Information and Forward-Looking Statements AMC identifies itself as the world's largest movie exhibition company, with approximately 870 theatres and 9,700 screens, directing investors to its website for material information and including a standard forward-looking statements disclaimer regarding various risks. - AMC is the largest movie exhibition company globally, with approximately 870 theatres and 9,700 screens[9] - The company uses its investor relations website to disclose material, non-public information in compliance with Regulation FD[10] - Forward-looking statements are subject to significant risks and uncertainties, including the continued recovery of the box office, AMC's significant indebtedness, and competition from alternative film delivery methods[11][12][13]