AMC(AMC) - 2025 Q2 - Quarterly Results

Financial Highlights and CEO Commentary AMC demonstrated significant operational leverage in Q2 2025, achieving substantial revenue and Adjusted EBITDA growth, record per-patron metrics, and a strengthened balance sheet through strategic debt management Q2 2025 Key Financial Results Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $1,397.9 | $1,030.6 | | Net Loss | $(4.7) | $(32.8) | | Adjusted EBITDA | $189.2 | $38.5 | | Net Cash Provided by (Used in) Operating Activities | $138.4 | $(34.6) | | Free Cash Flow | $88.9 | $(79.2) | - The company achieved all-time records in per-patron metrics for the second quarter, demonstrating the success of its strategic initiatives[2] Q2 2025 Record Per-Patron Metrics ($) | Metric | Value | | :--- | :--- | | Consolidated Admissions Revenue Per Patron | $12.14 | | Consolidated Food and Beverage Revenue Per Patron | $7.95 | | Total Consolidated Revenue Per Patron | $22.26 | - AMC's 'AMC Go Plan' focuses on enhancing the guest experience through state-of-the-art laser projection, premium seating, and an expansion of premium large format (PLF) screens like IMAX and Dolby Cinema, which operate at nearly three times the occupancy of regular auditoriums[4] Financial Performance Analysis This section details AMC's Q2 2025 financial results, highlighting consolidated statements and segment performance, with the U.S. market driving significant growth in revenue and Adjusted EBITDA Consolidated Financial Statements Consolidated statements reveal significant profitability improvement in Q2 2025, with net loss narrowing to $(4.7) million and positive operating cash flow of $138.4 million Consolidated Statements of Operations (Q2, in millions) | (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $1,397.9 | $1,030.6 | | Operating Income (Loss) | $92.6 | $(47.4) | | Net Loss | $(4.7) | $(32.8) | | Diluted Loss Per Share | $(0.01) | $(0.10) | Consolidated Balance Sheet Data (at period end, in millions) | (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $423.7 | $632.3 | | Corporate borrowings | $4,009.2 | $4,075.1 | | Total assets | $8,173.9 | $8,247.5 | Consolidated Cash Flow Data (Q2, in millions) | (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $138.4 | $(34.6) | | Net cash used in investing activities | $(48.7) | $(43.5) | | Net cash provided by (used in) financing activities | $(48.9) | $236.3 | Segment Performance Q2 2025 segment performance was driven by the U.S. market, with significant revenue and Adjusted EBITDA growth, while International markets also achieved positive Adjusted EBITDA and improved per-patron metrics Segment Revenues and Adjusted EBITDA (Q2 2025 vs Q2 2024, in millions) | (in millions) | U.S. Markets | International Markets | | :--- | :--- | :--- | | Revenues | | | | Q2 2025 | $1,114.2 | $283.7 | | Q2 2024 | $815.9 | $214.7 | | Adjusted EBITDA | | | | Q2 2025 | $181.0 | $8.2 | | Q2 2024 | $55.4 | $(16.9) | Key Operating Metrics Per Patron (Q2 2025 vs Q2 2024) | Metric (Consolidated) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Attendance (thousands) | 62,807 | 50,013 | | Average Ticket Price ($) | $12.14 | $11.29 | | Food & Beverage Revenues Per Patron ($) | $7.95 | $7.34 | Balance Sheet and Liquidity As of June 30, 2025, AMC reported $423.7 million in cash, with subsequent July 2025 refinancing transactions strengthening the balance sheet by raising new cash and equitizing debt, addressing 2026 maturities - Cash and cash equivalents stood at $423.7 million at the end of Q2 2025, excluding $51.4 million in restricted cash[6] - In July 2025, AMC completed comprehensive refinancing transactions with the following key outcomes: - New Cash: Secured approximately $244 million in new financing, primarily used to redeem debt maturing in 2026 - Debt Reduction: Converted at least $143 million of existing debt into equity, with potential for up to $337 million - Litigation Resolution: Achieved a final resolution of litigation with certain noteholders[6][7] Non-GAAP Financial Measures Reconciliations This section provides detailed reconciliations for key non-GAAP metrics like Adjusted EBITDA, Free Cash Flow, Contribution Margin, and Adjusted Net Loss, offering insights into underlying operational trends Adjusted EBITDA Reconciliation Adjusted EBITDA for Q2 2025 significantly increased to $189.2 million from $38.5 million in Q2 2024, reconciled from Net Loss by adjusting for interest, depreciation, and other items Reconciliation of Net Loss to Adjusted EBITDA (Q2, in millions) | (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(4.7) | $(32.8) | | Income tax provision | 1.2 | 0.7 | | Interest expense | 129.6 | 99.0 | | Depreciation and amortization | 77.8 | 78.8 | | Other adjustments (net) | (14.7) | (107.2) | | Adjusted EBITDA | $189.2 | $38.5 | Free Cash Flow Reconciliation Free Cash Flow turned positive in Q2 2025, reaching $88.9 million, a significant improvement from $(79.2) million in Q2 2024, calculated from operating cash flow less capital expenditures Reconciliation of Free Cash Flow (Q2, in millions) | (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $138.4 | $(34.6) | | Plus: total capital expenditures | $(49.5) | $(44.6) | | Free cash flow | $88.9 | $(79.2) | Contribution Margin Reconciliation Consolidated contribution margin per patron increased to $14.48 in Q2 2025, reflecting improved profitability per moviegoer across both U.S. and International markets Contribution Margin Per Patron (Q2, $) | Per Patron ($) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. Markets | $15.27 | $14.73 | | International Markets | $12.18 | $11.16 | | Consolidated | $14.48 | $13.76 | Adjusted Net Loss Reconciliation Adjusted Net Loss significantly improved to $(0.5) million, or $(0.00) per diluted share, in Q2 2025, reflecting adjustments to GAAP Net Loss for non-recurring items Reconciliation of Adjusted Net Loss (Q2, in millions, except per share) | (in millions, except per share) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(4.7) | $(32.8) | | Gain on extinguishment of debt | — | $(85.3) | | Shareholder litigation | — | $(19.1) | | Other adjustments | $4.2 | $(0.7) | | Adjusted net loss | $(0.5) | $(137.9) | | Adjusted diluted loss per share | $(0.00) | $(0.43) | Company Information and Forward-Looking Statements This section provides corporate details on AMC's global operations, investor webcast information, and standard forward-looking statement disclaimers regarding risks and uncertainties - AMC is the largest movie exhibition company globally, operating approximately 860 theatres and 9,700 screens across the United States and Europe[10] - The report contains forward-looking statements regarding future performance, which are subject to numerous risks and uncertainties, including the continued recovery of the box office, the company's significant indebtedness, shrinking theatrical release windows, and intense competition[12][14] - The company will host a webcast for investors on August 11, 2025, to discuss the quarterly results[8]