AMC Entertainment Holdings, Inc. (NYSE: AMC and APE) (“AMC” or “the Company”), today reported results for the second quarter ended June 30, 2023.
Summary Second Quarter 2023 Results:
- Total revenue grew by 15.6% compared to Q2 2022 to $1,347.9 million.
- Net income was $8.6 million compared to a net loss of $121.6 million in Q2 2022.
- Diluted earnings per share was $0.01 compared to a diluted loss per share of $0.12 in Q2 2022.
- Adjusted EBITDA improved by $75.8 million to $182.5 million compared to $106.7 million in Q2 2022.
- Net cash used in operating activities improved by $63.2 million compared to Q2 2022 to $13.4 million.
- Non-GAAP Operating Cash Generated was $99.8 million, an improvement of $47.8 million compared to Q2 2022.
- Available liquidity at June 30, 2023 was $643.4 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, “While we still have much work ahead of us on this front, AMC’s glide path to eventual recovery continued with significant pace in the second quarter of 2023 as our results set new records and represent AMC’s strongest second quarter in four full years. Following an impressive start to the year in the first quarter of 2023, the second quarter yet again showed great progress. AMC saw more than a 12% growth in attendance, a 15% growth in total revenue and a 71% increase in Adjusted EBITDA compared to the second quarter of 2022. Indeed, Adjusted EBITDA was $182.5 million, the highest such quarterly figure since the fourth quarter of 2019.”
Aron continued, “Our ongoing progress is obvious and ever so encouraging. Combining AMC’s commitment to innovation with a notable increase in both the number and quality of movie titles from our studio partners, movie theatres are once again captivating audiences and driving attendance back to AMC theatres. AMC theatres across the globe welcomed more than 66 million guests in the second quarter of 2023, our highest quarterly attendance number since the fourth quarter of 2019.”
Aron highlighted, “One area that has far exceeded pre-pandemic norms has been per-patron revenue. AMC moviegoers are consistently seeking out the most immersive sight and sound experiences, especially important to AMC as we offer more Premium Large Format screens than any other exhibitor. AMC’s imaginative offerings at our concession stands and Dine-In theatres also helped us in the second quarter to generate a food and beverage revenue per patron of $7.36 globally, within a penny of our all-time high watermark. Considering the substantial operating margin of our food and beverage business, this is contributing meaningfully to our improving profitability.”
Aron commented, “With the first half of the year now behind us, the 2023 domestic industry box office is 20% ahead of last year, and we believe the second half of the year could be even better unless the current writers/actors strikes wind up delaying the release of movie titles into next year. The third quarter of 2023 is off to an explosive start with BARBIE, OPPENHEIMER, MISSION IMPOSSIBLE – DEAD RECKONING PART ONE, and SOUND OF FREEDOM, among others, combining to cause July to become the highest monthly revenue in AMC’s storied 103-year history. There are so many more engaging movie titles to enjoy at AMC theatres later this year, and we can’t wait to welcome moviegoers to our nearly one thousand theatres in the U.S., Europe, and the Middle East.”
Aron concluded, “In addition to improving our operating results, we also methodically continued to strengthen our balance sheet. During the second quarter of 2023, AMC raised some $34 million of cash through the sale of APE units and reduced the principal balance of our debt by $42 million through debt repurchases. While I am so very proud of the progress we have made since the depths of the pandemic, we continue to have a climb ahead of us. Even with our $643 million of quarter-ending liquidity, our ability to continue to raise capital and remain agile are absolutely vital to maintaining our strong recovery trajectory. There are real and potentially severe liquidity hurdles on the horizon that we will need to overcome. Even so, at this point, we are accustomed to and skilled in rising to meet any and all challenges and are very much committed to our relentless efforts to ensure that AMC is best positioned for sustained 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”).
Through this program, we raised gross proceeds of approximately $343.3 million, before commissions and fees, from the sale of approximately 278.3 million APE units, including $34.2 million in the second quarter of 2023 through the sale of 21.2 million APE units.
There are currently no APE units available to be issued under the September 2022 ATM equity program.
Balance Sheet, Cash and Liquidity
During the second quarter 2023, AMC repurchased $42.0 million aggregate principal amounts of the Second Lien Notes due 2026 for $27.6 million, approximately a 34% discount.
Cash at June 30, 2023 was $435.3 million excluding restricted cash of $22.9 million. AMC currently has liquidity availability of $643.4 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 950 theatres and 10,500 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.