AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), today reported results for the third quarter ended September 30, 2019.
Q3 Total Revenues of $1.317 billion, up 7.8% from last year (up 9.3% in constant currency)
Q3 Net loss of $54.8 million, 45.4% improvement from last year (45.5% improvement in constant currency)
Q3 Adjusted EBITDA of $156.5 million, up 9.9% from last year (up 11.4% in constant currency)
Q3 Adjusted EBITDA, adjusting 2018 for ASC 842 impact, increased 31.3% (up 33.1% in constant currency)
Q3 Total attendance of 87.1 million tickets sold set an all-time high quarterly record
Q3 U.S. average ticket price grew 3.3% to $9.45, a 220 basis point industry outperformance (265 basis point industry outperformance, excluding AMC)
Q3 U.S. food and beverage revenues per patron grew 4.7% to a third quarter record, $5.35
“AMC delivered another quarter of strong results for the third quarter of 2019, achieving 7.8% year-over-year total revenue growth to $1.317 billion, driven by record third quarter attendance in each of our U.S. and international markets. Importantly, total Adjusted EBITDA grew 31.3% year-over-year after adjusting 2018 for the non-cash accounting impact of ASC 842 and 33.1% on a constant currency basis,” said Adam Aron, CEO and President of AMC.
Aron continued, “Our U.S. industry outperformance continued in the third quarter as we outperformed the industry by 220 basis points on attendance per screen and 450 basis points of admission revenue per screen. After excluding AMC’s contribution to the U.S. industry results, we outperformed the rest of the U.S. industry by 270 basis points on attendance per screen and by 560 basis points on admissions revenue per screen. Additionally, AMC generated record third quarter U.S. food and beverage revenues per patron of $5.35 and international food and beverage revenues per patron, in constant currency, of $3.77, representing year-over-year growth of 4.7% and 7.4%, respectively.”
Aron concluded, “The power of the AMC platform is clearly evident in these results, and we are highly encouraged by our performance in the third quarter as we position ourselves for a strong finish in 2019. These results further confirm that we are taking the appropriate actions to achieve the medium and long-term targets that we outlined in April. AMC is achieving real momentum, as we gain market share and outperform our industry in attendance and revenue growth. This is the result of the wholistic and synergistic impacts of AMC having invested in one theatre enhancement after another in the largest network of cinemas globally, combined with world-class marketing activity, and our being in the midst of nothing less than a digital transformation in which we are increasingly and continuously engaging with our guests before, during and after their visits to our theatres. In turn, this is enabling us to be vividly focused on generating additional free cash flow, deleveraging our balance sheet and driving shareholder value.”
Selected Third Quarter Financial Results
Total revenues benefited from a 6.1% increase in admissions revenue (up 7.6% in constant currency). U.S. average ticket price increased by 3.3%, reflecting an increase in premium format attendance, strategic pricing increases, and a normalization of results related to the anniversary of our A-List program and other promotional pricing initiatives, while international average ticket price declined 5.6% (down 0.6% in constant currency) due to foreign exchange rates and strategic pricing initiatives.
Given the natural fluctuations in the box office between quarters and within the year due to the timing of film releases, the Company’s management focuses on its full-year results and performance against its disclosed medium to long-term targets rather than on any particular quarter.