AMC(AMC) - 2025 Q4 - Annual Report

Revenue and Cash Flow - The company anticipates that revenues will need to increase to levels at least in line with pre-COVID-19 revenues to achieve net positive cash flows from operating activities[12]. - The company’s revenue and working capital are seasonal, with higher attendance and revenues generally during summer months and holiday seasons[14]. - The company is at risk of cash burn if the North American and international box office does not recover sufficiently, necessitating additional financing[12]. Debt and Interest Rates - As of December 31, 2025, the company had an aggregate of $1,994.2 million outstanding principal amount of New Term Loans, with interest rates ranging from 10.731% to 11.356% per annum[412][414]. - A 100-basis point change in market interest rates would have increased or decreased interest expense on the New Term Loans by approximately $20.1 million during the years ended December 31, 2024 and 2025[415][416]. - The company had an aggregate of $877.1 million outstanding principal amount of New 2029 Notes, bearing interest at rates ranging from 11.5% to 15.0% per annum as of December 31, 2025[417]. - A 100-basis point change in market interest rates would have caused an increase (decrease) in the fair value of performance-based variable-rate financial instruments of approximately $24.1 million and $(23.3) million, respectively, as of December 31, 2025[418]. - The company faces risks related to significant indebtedness, including the ability to meet debt covenants and potential dilution from future stock issuances[13][14]. Foreign Currency Exposure - The company is exposed to fluctuations in interest rates and foreign currency exchange rates, which may impact financial results[410]. - Foreign currency translation rates increased by approximately 4.5% for the year ended December 31, 2025 compared to the year ended December 31, 2024[422]. - A hypothetical 10% increase in foreign currency translation rates would increase the aggregate net loss of International theatres by approximately $9.6 million for the year ended December 31, 2025[421]. - A hypothetical 10% increase in foreign currency translation rates would increase the aggregate net loss of International theatres by approximately $9.0 million for the year ended December 31, 2024[421]. Operational Risks - The company’s ability to optimize its theatre circuit may be subject to delays and unanticipated costs[14].