AMC(AMC) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $1,300.2 million, a decrease of 3.6% compared to $1,348.8 million in Q3 2024[3] - Net loss for Q3 2025 was $(298.2) million, significantly higher than the net loss of $(20.7) million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $122.2 million, down from $161.8 million in Q3 2024, reflecting an 11.1% year-over-year decline in the domestic industry box office[3] - Admissions revenue decreased to $715.1 million in Q3 2025 from $744.2 million in Q3 2024, reflecting a decline of 3.9%[19] - Food and beverage revenue also declined to $451.8 million in Q3 2025 from $490.4 million in Q3 2024, a decrease of 7.9%[19] - Free cash flow for Q3 2025 was $(81.1) million, compared to $(92.2) million in Q3 2024, showing an improvement[21] - Net loss for the nine months ended September 30, 2025 was $505.0 million, compared to a net loss of $217.0 million for the same period in 2024[24] - The adjusted net loss for adjusted diluted loss per share for the three months ended September 30, 2025, was $110.0 million, while it was $15.9 million for the same period in 2024[36] - The adjusted diluted loss per share for the three months ended September 30, 2025, was $(0.21), compared to $(0.04) for the same period in 2024[36] - For the nine months ended September 30, 2025, the net loss was $505.0 million, compared to a net loss of $217.0 million for the same period in 2024[36] Attendance and Market Share - Attendance in Q3 2025 was 58,377 thousand, a decrease of 10.3% compared to 65,087 thousand in Q3 2024[6] - The company expects the fourth quarter of 2025 to be the highest grossing fourth quarter in six years, driven by a strong film slate[5] - AMC's market share in the U.S. significantly increased during the quarter, positioning the company well for future growth[4] - The company anticipates a dramatically larger box office in 2026 compared to 2025, supported by upcoming blockbuster releases[5] - Average attendance decreased to 58,377 thousand in Q3 2025 from 65,087 thousand in Q3 2024, a decline of 10.3%[21] - Attendance for the nine months ended September 30, 2025, was 163,087 thousand, compared to 161,731 thousand in 2024, reflecting a slight increase of approximately 0.8%[34] Revenue and Profitability Metrics - AMC achieved all-time record admissions revenue per patron of $12.25 and second-highest food and beverage revenue per patron of $7.74 in its 105-year history[2] - Average ticket price increased to $12.25 in Q3 2025 from $11.43 in Q3 2024, an increase of 7.2%[22] - GAAP gross profit for Q3 2025 was $132.8 million, compared to $99.4 million in Q3 2024, indicating an increase of approximately 33.6%[33] - Contribution margin for Q3 2025 was $877.7 million, compared to $859.2 million in Q3 2024, showing a growth of approximately 2.0%[33] - GAAP gross profit per patron in Q3 2025 was $2.04, an increase from $1.70 in Q3 2024, representing a rise of about 20.0%[33] - The contribution margin for the nine months ended September 30, 2025, was $2,369.4 million, compared to $2,215.2 million in 2024, indicating an increase of about 7.0%[34] - Constant currency contribution margin for Q3 2025 was $877.7 million, consistent with the reported contribution margin, indicating stable performance despite currency fluctuations[35] - The company emphasizes the importance of contribution margin as a key performance measure to assess profitability relative to attendance levels, excluding fixed operating costs[34] Cash and Debt Management - Cash and cash equivalents at September 30, 2025, were $365.8 million, excluding restricted cash of $51.1 million[7] - AMC completed refinancing transactions totaling approximately $244 million, primarily to redeem 2026 maturing debt[8] - Corporate borrowings stood at $4,010.0 million as of September 30, 2025, slightly down from $4,075.1 million at the end of 2024[20] - The number of theatres operated decreased to 856 as of September 30, 2025, from 874 as of September 30, 2024[21] - Interest expense for Q3 2025 was $139.3 million, an increase of 16.4% from $119.6 million in Q3 2024[24] - Other expenses for Q3 2025 included net losses on debt extinguishment of $196.0 million[28] - The company reported a net cash used in operating activities of $(14.9) million for Q3 2025, an improvement from $(31.5) million in Q3 2024[30] Capital Expenditures - Total capital expenditures for the nine months ended September 30, 2025 were $162.7 million, up from $155.8 million in the same period of 2024[30] - Maintenance capital expenditures for the nine months ended September 30, 2025 were $98.8 million, down from $103.0 million in the same period of 2024[30] Other Financial Metrics - Attributable EBITDA for Q3 2025 was $0.4 million, a decrease from $1.3 million in Q3 2024[28] - The company incurred third-party fees paid for term loan modification amounting to $2.1 million for the three months ended September 30, 2025[36] - The loss on extinguishment of debt was $196.0 million for the three months ended September 30, 2025[36] - The company reported a marked-to-market gain on derivatives of $(10.9) million for the three months ended September 30, 2025[36]