AMC(US:AMC)2025-05-07 20:33Company Operations - As of March 31, 2025, the company operated 865 theatres and 9,725 screens across 11 countries[145][146]. - The company plans to open an additional 40 Dolby Cinema locations in the U.S. by the end of 2027 and upgrade 68 IMAX locations to IMAX with Laser[152]. - The company entered into an agreement to open 40 4DX and 25 SCREENX locations worldwide, with the first openings expected in 2025[151]. Financial Performance - Total revenues decreased by $88.9 million, or 9.3%, to $862.5 million for the three months ended March 31, 2025, compared to $951.4 million for the same period in 2024[165]. - Admissions revenues fell by $57.0 million, or 10.7%, primarily due to a 10.1% decrease in attendance from 46.6 million patrons to 41.9 million patrons[165]. - Food and beverage revenues decreased by $37.8 million, or 11.8%, attributed to lower attendance and a 1.9% decrease in food and beverage per patron from $6.89 to $6.76[166]. - Operating loss increased to $145.9 million for the three months ended March 31, 2025, compared to a loss of $108.4 million in the same period of 2024, representing a 34.6% increase[162]. - The company reported a net loss of $202.1 million for the three months ended March 31, 2025, compared to a net loss of $163.5 million in the same period of 2024, reflecting a 23.6% increase in losses[162]. Revenue Sources - The company’s revenues are primarily derived from box office admissions and food and beverage sales, with ancillary sources including online ticketing fees and advertising[146]. - Total revenues for the three months ended March 31, 2025, were $862.5 million, with admissions revenue at $340.2 million and food and beverage revenue at $216.4 million[234]. Attendance and Ticket Pricing - The average ticket price was $10.76, with total attendance reaching 31,619 thousand for the three months ended March 31, 2025[236]. - The company’s operational performance may vary significantly based on the timing and popularity of film releases, impacting revenues[148]. Debt and Liquidity - The company faces significant risks related to its liquidity, requiring increased attendance and revenues to achieve net positive cash flows[137]. - Corporate borrowings interest expense rose by 19.8% to $109.0 million for the three months ended March 31, 2025, compared to $91.0 million in 2024[162]. - The company executed a debt for equity exchange in January 2024, repurchasing $17.5 million of Second Lien Notes due 2026 for 2,541,250 shares of common stock[160]. - The company plans to continue seeking to retire or purchase outstanding debt through cash purchases and/or exchanges for equity or debt[221]. Cash Flow and Capital Expenditures - Net cash used in operating activities increased to $370.0 million for the three months ended March 31, 2025, compared to $188.3 million for the same period in 2024, primarily due to a 20.2% increase in attendance in Q4 2024[224]. - The company estimates capital expenditures for the year ended December 31, 2025, will be approximately $175 million to $225 million[226]. - Capital expenditures for the same period were $47.0 million, indicating ongoing investment in operations[242]. Other Income and Expenses - The company restored its relationship with a vendor after resolving a dispute, resulting in a $37.5 million settlement recorded as other income[161]. - Other income was $(58.8) million during the three months ended March 31, 2025, primarily due to a decrease in fair value of the Conversion Option derivative liability[174]. Market Risks - The company is subject to various risks including changing distributor practices and intense competition in the entertainment sector[139]. - The company is exposed to fluctuations in interest rates and foreign currency exchange rates, with a sensitivity analysis indicating potential impacts on net income[245]. - A hypothetical 100 basis-point change in interest rates could significantly affect interest expense and fair value of debt instruments[246]. Stockholder Information - As of March 31, 2025, the company had approximately 1.8 million shares of Common Stock directly registered by 14,693 stockholders[156]. - Total assets reached $8,053.0 million, while total liabilities were $9,790.8 million, resulting in a stockholders' deficit of $1,737.8 million[241].