Leawood, Kansas ( November 3, 2020 ) -

AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), today reported results for the third quarter ended September 30, 2020.

Third Quarter Summary Results
During the third quarter ended September 30, 2020, AMC’s U.S. theatres began to re-open following a five-month suspension of operations. The first domestic theatres opened on August 20, 2020, and locations across the U.S. have continued to open since then. As of September 30, 2020, AMC had resumed operations at 467 domestic theatres with limited seating capacities of between 20% and 40%, representing approximately 78% of domestic theatres and 73% of 2019 domestic same-theatre revenue.

International theatres began to resume operations in early June and as of June 30, 2020, 37 theatres in nine countries were open for business. During the third quarter, AMC continued to reopen theatres, with limited seating capacities, in its international markets. As of September 30, 2020, AMC had resumed operations at 321 leased and partnership theatres, in 14 countries outside the United States, representing approximately 90% of its international theatres and approximately 93% of 2019 international same-theatre revenue.

Adam Aron, CEO and President of AMC commented, “The magnitude of the impact of the global pandemic on the theatrical exhibition industry was again evident in our third quarter results, as theatre operations in the U.S. were suspended for nearly two-thirds of the quarter. And yet, despite unrelenting obstacles, the AMC team continued to make significant progress in pursuit of our three key priorities: to strengthen our liquidity position; to dramatically reduce operating and capital expenditures, and to continue to safely and successfully restore our operations.”

Aron continued, “We continue to see state and local governments in the United States recognize the strong steps we have taken through our AMC Safe & Clean protocols, designed in consultation with Clorox and current and former faculty of Harvard University’s acclaimed School of Public Health, to ensure that we are reopening responsibly and with a focus on the health and safety of our guests and associates. The feedback we have received from our U.S. guests indicate that our AMC Safe & Clean policies and protocols are working exactly as intended. We are seeing record-high guest scores for the cleanliness of our theatres, far exceeding the marks we have previously received in the decades that AMC has been tracking guest feedback. The safety precautions we have put in place at our international theatres are similarly robust.”

Aron added, “Of paramount importance, as well, are our efforts to strengthen our liquidity profile. Starting in March, we raised approximately $900 million of gross proceeds from new debt and equity capital, secured more than $1 billion of concessions from creditors and landlords and raised more than $80 million from asset sales. The duration and impact of this pandemic are still affecting us to this day and are certain to continue to affect our results going forward. And yet, as has been the case at AMC for 100 years, we have remained resilient and resourceful. The liquidity enhancing and leverage reducing actions that we already have taken and will further need to take, combined with our relentless focus on efficiency and cash management, are all crucial to navigating through this storm.”

Balance Sheet, Cash and Liquidity
Cash at September 30, 2020 was $417.9 million excluding restricted cash of $10.9 million. AMC’s top financial priority remains liquidity management. Accordingly, the Company has taken the following actions in 2020:

During the first quarter, drew down approximately $325 million (full availability) under existing revolving credit facilities.

In April, issued $500 million of 10.5% first-lien notes due 2025.

Working with our landlords, vendors, studio, and other business partners, defer and/or abate significant cash costs.

Introduced an active cash management process, which, among other things, requires senior management approval of all outgoing payments.

In compliance with certain financial covenants related to our indebtedness, suspended shareholder cash returns, including the Company’s stock repurchase program and dividend payments.

Refiled tax returns under new Coronavirus Aid, Relief and Economic Security (CARES) Act provisions that are expected to result in approximately $17.4 million of cash tax refunds and refundable alternative minimum tax credits. Thus far in 2020 we have received approximately $7.1 million of cash tax refunds.

Availed ourselves of various government COVID relief programs in our European markets.

In July, successfully completed a debt exchange offer, which:

o Reduced principal amount of debt by $555 million;
o Reduced cash interest expense by $120 million in the first year following the exchange offer;
o Extended maturities on approximately $1.7 billion of debt until 2026; and
o Included issuance of $300 million of new 10.5% first-lien notes due 2026.

In August, announced the signing of a definitive agreement to sell our Baltic region theatre locations for approximately $77 million.

In September, launched an at-the-market (“ATM”) equity program to sell up to 15 million shares of Class A common stock, raising approximately $56.1 million.

In October 2020, updated the ATM program to sell an additional 15 million shares of Class A common stock, raising approximately $41.6 million as of the end of October. This brings the total ATM equity raise so far to $97.7 million. The Company is currently seeking to raise additional equity capital.

Expense Management
The Company has taken and continues to take significant steps to reduce expenses by eliminating non-essential costs, including the following:

Implemented measures to reduce employment costs, including;

o While theatre operations were suspended, furloughs of all corporate and theatre level employees
o Cancellation of pending annual merit pay increases.
o Elimination or reduction of non-healthcare benefits, including 401(K) match.
o Elimination of approximately 176 corporate level positions

Similar efforts to reduce employment costs were undertaken internationally consistent with applicable
laws across the jurisdictions in which the Company operates.

Nearly all outside contractor roles have been eliminated.

Limited non-essential operating expenditures, including marketing, promotion, and travel and entertainment expenses.

Terminated or deferred all non-essential capital expenditures.

Renegotiated theatre leases.

Initiated a significant corporate wide cost saving and efficiency enhancement program that positions AMC for sustainable profitable growth as we emerge from the impact of the COVID-19 crisis.

Theatre Reopenings Update
During the third quarter the Company welcomed millions of guests to its theatres as soon as it was safe to do so and permissible under local, state or provincial as well as national guidelines.

As of the end of October 2020, AMC was operating approximately 539 of its 600 domestic locations, and approximately 261 of its 358 international locations. In regions where theatres are not yet able to open, AMC continues to have productive discussions with local and state authorities about the appropriate timing for a resumption of operations.

Since September 30, 2020, as a result of a recent resurgence of COVID-19 cases in certain of our international markets, Italy, Germany, Spain, and the UK, have all announced or enacted plans to reinstitute national or regional lockdowns to protect their citizenry. As a result, we plan to close or have closed some or all of our previously reopened theatres in these countries, according to the requirements of the respective mandates.

Upon returning to the movies, AMC guests experience AMC’s comprehensive health and sanitation program: AMC Safe & Clean, which was developed under advisement of current & former faculty of Harvard University’s prestigious School of Public Health as well as the No. 1 U.S. cleaning brand, The Clorox Company.

AMC Safe & Clean components include significant reductions in the maximum tickets available for each showtime and seat blocking in reserved seating auditoriums to allow for appropriate social distancing between parties. Enhanced cleaning procedures are also key components to the program and include extra time between showtimes to allow for a full, thorough cleaning, nightly disinfecting, the use of high tech HEPA vacuums, and upgraded air filtration efforts including the use of MERV 13 filters wherever possible. New guest and associate safety protocols include mandatory mask wearing by all guests and associates and the recommended use of disinfectant wipes and hand sanitizing stations which can be found throughout the theatres.

Non-cash Impairment Charges
During the quarter ended September 30, 2020, the Company recorded $195.9 million of non-cash impairment charges related to long lived assets, indefinite-lived and definite-lived intangible assets and goodwill. The impairment test for goodwill involves estimating the fair value of the reporting unit and comparing that value to its carrying value. The suspension of operations during the second and third quarters of 2020 and the further delay or cancellation of film releases are two of several factors considered when making this evaluation.

To see the full report, click here.

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 960 theatres and 10,700 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. AMC operates among the most productive theatres in the United States’ top markets, having the #1 or #2 market share positions in 21 of the 25 largest metropolitan areas of the United States. AMC is also #1 or #2 in market share in 9 of the 15 countries it serves in North America, Europe and the Middle East. For more information, visit www.amctheatres.com.