AMC Entertainment Holdings, Inc. (NYSE: AMC and APE) (“AMC” or “the Company”), today reported results for the first quarter ended March 31, 2023.
Summary First Quarter 2023 Compared to First Quarter 2022
- Total revenues grew 21.5% to $954.4 million.
- Net loss improved by $101.9 million to $235.5 million.
- Adjusted net loss was $179.7 million compared to an adjusted net loss of $266.3 million.
- Diluted loss per share was $0.17 compared to a diluted loss per share of $0.33.
- Adjusted diluted loss per share was $0.13 compared to an adjusted diluted loss per share of $0.26.
- Adjusted EBITDA improved by $68.8 million to $7.1 million.
- Net cash used in operating activities for the quarter was $189.9 million.
- Non-GAAP Operating Cash Burn for the quarter was $139.4 million compared to $223.9 million.
- Available liquidity at March 31, 2023 was $703.7 million, including $208.1 million of undrawn capacity under the Company’s revolving credit facility
In announcing the quarterly results, Adam Aron, Chairman and CEO of AMC said, “Our results for the first quarter of 2023 represent AMC’s strongest first quarter in four full years. We kicked off 2023 by continuing on our positive glide path to recovery, with more than a 21% growth in total revenues and a $69 million improvement in Adjusted EBITDA compared to the previous year. The first quarter of 2023 and fourth quarter of 2022 mark the first two consecutive quarters of positive Adjusted EBITDA since March of 2020. This progress is a testament to the ongoing recovery in the industrywide box office, as well as AMC’s enduring commitment to excellence and innovation as our guests enjoy a superb movie-going experience at our theatres.”
Aron added, “AMC theatres across the globe welcomed nearly 48 million guests in the first quarter thanks to the continued strength of James Cameron’s “Avatar: The Way of Water” and the knockout power of first quarter releases like Marvel’s “Ant-Man and the Wasp: Quantumania,” “Creed III,” “Scream VI,” “Shazam! Fury of the Gods” and “John Wick Chapter 4.” All told, the first quarter North American box office easily surpassed 2022 by some 29%, totaling more than $1.7 billion. The recovery in the European box office was even stronger in getting to pre-pandemic norms than that in the U.S. As I have said for years, when our studio partners showcase their magical storytelling, there is robust demand to be realized at AMC theatres both in the U.S. and abroad.”
Aron continued, “We believe the first quarter of 2023 is just the tip of the iceberg for what’s to come in the remainder of the year. To that end, the second quarter of 2023 has already begun with the notable success of The Super Mario Brothers Movie,” currently the highest-grossing movie of 2023 and over $1 billion in ticket sales worldwide. With so many compelling movies coming just in the next few months like “Guardians of the Galaxy Vol 3,” “The Little Mermaid,” “Elemental,” “Fast X,” “Spider-Man: Across the Spider-Verse,” “The Flash,” “Indiana Jones and the Dial of Destiny,” “Mission Impossible – Dead Reckoning Part One,” “Oppenheimer,” “Blue Beetle,” “Gran Turismo,” “Haunted Mansion,” “About My Father,” “Barbie,” “The Meg 2: The Trench,” “Strays,” “No Hard Feelings,” “Joy Ride,” “Asteroid City,” and the “Equalizer 3,” among others, the remainder of the year promises something for everyone, and AMC stands ready to welcome movie-goers in significant numbers. We could not be more optimistic about the prospects for the 2023 box office, except to say that 2024 looks even better.”
Aron highlighted, “Of particular note, food and beverage spending per patron of $6.90 globally and $7.99 in the U.S., continued at a blistering pace compared to pre-pandemic levels. This is especially welcome given the high-margin nature of our food and beverage activity.”
Aron concluded, “During the first quarter of 2023, we continued to strengthen our balance sheet by raising more than $155 million of cash through the sale of APE units, and by reducing the principal balance of our debt by more than $200 million in repurchasing debt or exchanging APE units for debt. Our optimism about a clearly increasing industrywide box office notwithstanding, we have been very transparent that it will take a few more years for the industry box office to return near to pre-pandemic levels, and our ability to raise additional capital during this extended recovery period will be a crucial component of our success. We will continue our fight to preserve our agility and to remain on our recovery trajectory, as we work hard to position AMC for long-term success.”
AMC Preferred Equity Unit At-The-Market Equity Program
In September 2022, AMC launched an at-the-market (“ATM”) equity program to sell up to 425 million shares of its AMC Preferred Equity Units (“APE units”).
Since the inception of the ATM in September 2022, as of March 31, 2023, AMC had raised gross proceeds of approximately $309.1 million, before commissions and fees, from the sale of approximately 257.0 million APE units.
During the first quarter of 2023, AMC raised gross proceeds of $80.3 million through the sale of approximately 49.3 million APE units.
During the second quarter of 2023, AMC has raised additional gross proceeds of approximately $34.2 million, before commission and fees, from the sale of approximately 21.2 million shares of APE units.
There are currently no APE units available to be issued under the September ATM equity program and board authorization.
Balance Sheet, Cash and Liquidity
During the first quarter 2023, AMC:
- Repurchased $99.4 million aggregate principal amounts of the Second Lien Notes due 2026 for $54.8 million or a 45% discount.
- Repurchased $4.1 million aggregate principal amount of the 5.875% Senior Subordinated Notes due 2026 for $1.7 million, or a 59% discount.
- Issued approximately 91.0 million shares of APE units on a private basis to extinguish $100.0 million aggregate principal amount of the Company’s 10%/12% Cash/PIK Toggle Second Lien Notes due 2026.
- Raised $75.1 million through the private sale of approximately 106.6 million APE Units.
- Received $30 million from Saudi Entertainment Ventures, AMC’s Saudi joint venture partner, as AMC begins to transition from a management and investment role to a pure licensing relationship.
Cash at March 31, 2023 was $495.6 million excluding restricted cash of $23.1 million. AMC currently has liquidity availability of $703.7 million (including cash and undrawn capacity under the Company’s revolving credit facility).
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 920 theatres and 10,300 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, web site and mobile apps; offering
premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. For more information, visit www.amctheatres.com.