AMC(US:AMC)2025-08-11 10:59Company Operations - As of June 30, 2025, the company operated 864 theatres and 9,717 screens across 11 countries[174]. - As of June 30, 2025, the company had approximately 36.5 million member households enrolled in its loyalty programs, with 19 million members in international programs[182]. - The average number of screens operated decreased to 9,416 for the six months ended June 30, 2025, down from 9,660 in 2024[192]. - The number of screens operated in the U.S. Markets decreased to 7,131 from 7,262 year-over-year, while the International Markets saw a decline from 2,627 to 2,586 screens[195]. - The number of screens operated was 9,717, with AMCEH & Restricted Subsidiaries operating 7,481 screens and Muvico Group operating 2,236 screens[329]. - The number of theatres operated was 864, with AMCEH & Restricted Subsidiaries operating 691 theatres and Muvico Group operating 173 theatres[329]. Financial Performance - Total revenues for the six months ended June 30, 2025, increased by 14.0% to $2,260.4 million compared to $1,982.0 million for the same period in 2024[192]. - Total revenues for the three months ended June 30, 2025, reached $1,397.9 million, a 35.6% increase from $1,030.6 million in the same period of 2024[194]. - Total revenues increased by $367.3 million, or 35.6%, to $1,396.5 million for the three months ended June 30, 2025, compared to the same period in 2024[199]. - Total revenues increased by $278.4 million, or 14.0%, during the six months ended June 30, 2025, compared to the same period in 2024[244]. - Total operating costs and expenses for the six months ended June 30, 2025, amounted to $2,313.7 million, with film exhibition costs at $596.9 million and food and beverage costs at $153.3 million[328]. - Operating costs and expenses totaled $1,305.3 million for the three months ended June 30, 2025, compared to $1,078.0 million in 2024, representing a 21.1% increase[194]. Revenue Sources - The company generated significant revenue from box office admissions and food and beverage sales, with AMC Stubs members representing approximately 49% of U.S. market attendance during the first half of 2025[175][182]. - Admissions revenue rose by 12.9% to $1,236.1 million for the six months ended June 30, 2025, up from $1,094.9 million in 2024[192]. - Food and beverage revenue increased by 13.8% to $783.0 million for the six months ended June 30, 2025, compared to $688.3 million in 2024[192]. - Food and beverage revenues increased by $132.5 million, or 36.1%, with food and beverage per patron rising by 8.3% from $7.34 to $7.95[200]. - Food and beverage revenues increased by $94.7 million, or 13.8%, due to higher attendance and a 5.1% increase in food and beverage per patron from $7.12 to $7.48[245]. Attendance and Market Trends - Attendance increased to 104,710 thousand for the six months ended June 30, 2025, compared to 96,644 thousand in 2024[192]. - Attendance for the six months ended June 30, 2025, reached 104.7 million, up from 96.6 million in 2024[199]. - Attendance increased to 62,807 thousand in the three months ended June 30, 2025, up from 50,013 thousand in the same period of 2024, reflecting a 25.6% growth[195]. - Admissions revenues rose by $198.2 million, or 35.1%, driven by a 25.6% increase in attendance from 50.0 million to 62.8 million patrons and a 7.5% increase in average ticket price[199]. - North American box office grosses were down approximately 26% for the six months ended June 30, 2025, compared to the same period in 2019[307]. Debt and Financial Risks - The company faces significant risks related to liquidity, including the need to achieve revenue levels in line with pre-COVID-19 figures to avoid restructuring[165][166]. - The company has significant indebtedness, which may affect its ability to refinance on favorable terms and meet debt covenants[170]. - The working capital deficit (excluding restricted cash) was $(963.5) million as of June 30, 2025, compared to $(846.1) million at the end of 2024[301]. - Interest expense increased by $48.5 million to $248.7 million, primarily due to higher interest on new term loans and exchangeable notes[254]. - A 100-basis point increase in market interest rates would have increased interest expense on the New Term Loans by approximately $10.0 million during the six months ended June 30, 2025[345]. Adjusted EBITDA and Operating Income - Adjusted EBITDA for the three months ended June 30, 2025, was $189.2 million, compared to $38.5 million for the same period in 2024, reflecting strong performance in both U.S. and International markets[298]. - Adjusted EBITDA for U.S. markets was $181.0 million for the three months ended June 30, 2025, up from $55.4 million in the same period of 2024, driven by increased attendance and higher advertising income[298]. - Operating income improved significantly to $92.6 million for the three months ended June 30, 2025, compared to a loss of $47.4 million in the same period of 2024[192]. - The company reported a net loss of $(4.7) million for the three months ended June 30, 2025, compared to a net loss of $(32.8) million in the same period in 2024[296]. Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2025, are estimated to be between $175 million and $225 million[313]. - Capital expenditures for the period were $96.5 million, with net cash used in investing activities totaling $95.6 million[336]. - The company raised gross proceeds of $108.7 million from the establishment of forward positions for 30.0 million shares of Common Stock during the six months ended June 30, 2025[187]. - The company issued 17.1 million shares through an "at-the-market offering," generating gross proceeds of $63.0 million during the six months ended June 30, 2025[187]. Market Competition and Risks - The company is subject to intense competition from other exhibitors and streaming platforms, impacting its market position[170]. - The company is exposed to various risks including economic conditions, supply chain disruptions, and regulatory compliance costs[170]. - The company is exposed to market risk from changes in foreign currency exchange rates affecting its International markets operations[349]. Other Financial Metrics - The company reported a significant increase in food and beverage revenues, which reached $499.6 million, up from $367.1 million in the prior year, marking a 36.0% increase[194]. - Corporate borrowings interest expense rose to $109.6 million in 2025 from $89.2 million in 2024, reflecting higher financing costs[194]. - The company reported a net loss of $206.8 million for the six months ended June 30, 2025, compared to a net loss of $196.3 million for the same period in 2024[257]. - Other comprehensive income for the six months ended June 30, 2025, was $63.8 million, primarily due to unrealized foreign currency translation adjustments[328].