Financial Data and Key Metrics Changes - The first quarter of 2025 saw a 12.4% decline in the North American box office compared to the previous year, while AMC's domestic admissions revenue declined by only 10.9%, outperforming the industry by approximately 150 basis points [13][14] - AMC achieved an all-time first quarter record for U.S. admissions revenue per patron at $12.31, which is over 45% higher than pre-pandemic levels [15][16] - Consolidated revenue per patron increased by 1.6% year-over-year and 40% compared to pre-pandemic 2019, driven by a 49% increase in food and beverage revenue per patron [14][16] Business Line Data and Key Metrics Changes - U.S. operations showed resilient results with a contribution margin per patron up by 59% compared to pre-pandemic 2019 [16] - International markets also reported strong growth, with total revenue per patron up 32% and contribution margin per patron up approximately 39% on a constant currency basis compared to pre-pandemic 2019 [16] Market Data and Key Metrics Changes - The first quarter of 2025 had the lowest industry-wide domestic box office since 1996, but AMC anticipates a strong recovery for the remainder of 2025 and into 2026 [7][9] - The April 2025 box office was double that of April 2024, indicating a significant rebound in moviegoing demand [9] Company Strategy and Development Direction - AMC is implementing the "Go Plan," which focuses on enhancing the guest experience through premium large format screens, innovative food and beverage offerings, and customer loyalty programs [21][22] - The company plans to increase its premium large format and extra large format screens from over 600 to more than 1,000, with significant upgrades to existing IMAX and Dolby Cinema screens [24][25] - AMC is also expanding its loyalty and subscription platforms, including the launch of AMC Stubs Premier Go and enhancements to the AMC Stubs A-List program [29][30] Management's Comments on Operating Environment and Future Outlook - Management believes that the first quarter results do not reflect the true potential of the movie theater industry, with expectations for a strong box office recovery in the latter half of 2025 and into 2026 [6][12] - The company is optimistic about achieving positive free cash flow for the nine months ending December 31, 2025, provided that box office performance aligns with internal forecasts [44] Other Important Information - AMC ended the quarter with cash and cash equivalents of approximately $378.7 million, excluding restricted cash [18] - The company has reduced its debt and deferred rent by approximately $1.34 billion since early 2022 [19] Q&A Session Summary Question: What are your thoughts about the current discussions around tariffs in Hollywood? - Management is closely monitoring the situation as there are no final plans yet regarding tariffs [34] Question: What proportion of AMC locations could include a premium format auditorium? - Plans indicate that around three-quarters of AMC theaters worldwide could feature premium large format screens [36] Question: At what point do you expect the business to generate positive free cash flow? - Management anticipates being free cash flow positive for the nine-month period from April to December 2025, contrasting with the bleak first quarter [44] Question: Are there plans to enhance and expand food and beverage offerings? - Management is proud of the growth in food and beverage revenues and plans to continue innovating in this area [45][46]