AMC Entertainment Inc. Reports a 10.8% Increase in Total Revenues and a 6.8% Increase in Attendance
AMC Entertainment Inc. Reports a 10.8% Increase in Total Revenues and a 6.8% Increase in Attendance During CY2012
KANSAS CITY, Mo.--(BUSINESS WIRE)-- AMC Entertainment Inc. (AMC), one of the world's leading theatrical exhibition companies, today reported unaudited results for the period ended December 31, 2012.
AMC's total revenues increased 10.8%, or $259 million, to $2.65 billion during the period December 30, 2011 through December 31, 2012 ("CY 2012"), compared to the fifty-two weeks ended December 29, 2011 ("CY 2011"). Admissions revenues increased 8.8%, or $144.7 million, to $1.8 billion in CY 2012 compared to CY 2011, primarily due to a 6.8% increase in attendance and a 1.9% increase in average ticket prices. Concessions revenues increased 12.3%, or $81.5 million, to $743 million in CY 2012, compared to CY 2011, due to the increase in attendance and a 5.3% increase in average concessions per patron.
"The entire industry celebrated its best year on record, and AMC celebrated the best year in its history in terms of total revenues," said Gerry Lopez, AMC's CEO and president. "We put smiles on almost 200 million guests' faces in 2012, a level of attendance we haven't seen since fiscal 2007. In 2013 we intend to build on this success with additional investments in the modernization of our fleet and enhancement of our food and beverage offerings, to ensure our guests have reasons to return to AMC again and again."
Net earnings for CY 2012 increased to $58.0 million from a net loss of ($242.5) million in CY 2011. The $300.5 million improvement in net earnings was primarily due to: operating improvements in admissions and concessions revenues due to the success of our food and beverage strategic initiatives, the timing of rewards accumulated and redeemed related to our guest frequency program AMC Stubs and the additional four days included in CY 2012 compared to CY 2011; non-operating improvements due to gains recorded in discontinued operations on the disposition of Canada and UK theatres; lower interest expense and investment losses; lower charges for financing costs; improvement in equity earnings from non-consolidated entities; lower impairment charges; and lower theatre closure expenses.
Adjusted EBITDA for CY 2012 increased to $438.2 million from $302.4 million for the year ended December 29, 2011. Detailed information regarding our revenues, costs and expenses attributable to our operations during CY 2012 and CY 2011 is provided in the tables accompanying this news release.
As of December 31, 2012, AMC owned, operated or held interests in 344 movie theatres with a total of 4,988 screens.
Forward Looking Statements
Certain statements in this press release, as well as reports and other information that AMC files with the Securities and Exchange Commission, include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The words "forecast", "estimate", "project", "intend", "expect", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, which may cause AMC's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: national, regional and local economic conditions that may affect the markets in which AMC and AMC's joint venture investees operate; the levels of expenditures on entertainment in general and movie theatres in particular; increased competition within movie exhibition or other competitive entertainment mediums; technological changes and innovations, including alternative methods for delivering movies to consumers; the popularity of major motion picture releases; shifts in population and other demographics; AMC's ability to renew expiring contracts at favorable rates, or to replace them with new contracts that are comparably favorable to AMC; AMC's need for, and ability to obtain, additional funding for acquisitions and operations; risks and uncertainties relating to AMC's significant indebtedness; fluctuations in operating costs; capital expenditure requirements; changes in interest rates; changes in accounting principles, policies or guidelines; and effects of geopolitical events, including the threat of domestic terrorism or cyber attacks. This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative but not exhaustive. In addition, new risks and uncertainties may arise from time to time. Accordingly, all forward-looking statements should be evaluated with an understanding of their inherent uncertainty. Except as required by law, AMC assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
About AMC Entertainment Inc.
Headquartered in Kansas City, Mo., AMC Entertainment Inc. is a leading theatrical exhibition and entertainment company. With a history of industry leadership and innovation dating back to 1920, the company today serves hundreds of millions of guests annually through interests in 344 theatres with 4,988 screens, primarily in the United States.
AMC Entertainment Inc. Consolidated Statement of Operations (Unaudited) | ||||||
(In thousands) | CY 2012 | CY 2011 | CY 2011 to | |||
12/31/2012 | 12/29/2011 | CY 2012 % Change | ||||
Revenues | ||||||
Admissions | $1,790,489 | $1,645,762 | 8.8% | |||
Concessions | 743,468 | 661,945 | 12.3% | |||
Other theatre | 120,050 | 87,288 | 37.5% | |||
Total Revenues | 2,654,007 | 2,394,995 | 10.8% | |||
Operating costs and expenses | ||||||
Film exhibition costs | 949,291 | 871,407 | 8.9% | |||
Concession costs | 100,491 | 89,266 | 12.6% | |||
Operating expense | 699,114 | 738,031 | -5.3% | |||
Rent | 443,179 | 448,332 | -1.1% | |||
General and administrative: | ||||||
Merger, acquisition and transaction costs | 4,981 | 2,093 | * | |||
Management fee | 3,750 | 5,000 | -25.0% | |||
Other | 71,846 | 52,951 | 35.7% | |||
Depreciation and amortization | 209,451 | 211,107 | -0.8% | |||
Impairment of long-lived assets | 285 | 12,779 | -97.8% | |||
Operating costs and expenses | 2,482,388 | 2,430,966 | 2.1% | |||
Operating income (loss) | 171,619 | (35,971) | * | |||
Other expense (income) | ||||||
Other expense | 2,034 | 17,321 | -88.3% | |||
Interest expense: | ||||||
Corporate borrowings | 154,253 | 162,975 | -5.4% | |||
Capital and financing lease obligations | 5,751 | 6,074 | -5.3% | |||
Equity in (earnings) of non-consolidated entities | (15,760) | (1,985) | * | |||
Investment expense | 224 | 17,590 | -98.7% | |||
Gain on NCM transactions | - | 207 | -100.0% | |||
Total other expense | 146,502 | 202,182 | -27.5% | |||
Earnings (loss) from continuing operations before income taxes | 25,117 | (238,153) | * | |||
Income tax provision | 985 | 910 | 8.2% | |||
Earnings (loss) from continuing operations | 24,132 | (239,063) | * | |||
Earnings (loss) from discontinued operations, net of income taxes | 33,845 | (3,382) | * | |||
Net earnings (loss) | $57,977 | ($242,445) | * | |||
* Percentage change in excess of 100% | ||||||
AMC Entertainment Inc. Balance Sheet and Other Data (Unaudited) | ||||
CY 2012 | CY 2011 | |||
12/30/2011 to | 52 weeks ended | |||
12/31/2012 | 12/29/2011 | |||
Balance Sheet Data (at period end): | ||||
Cash and equivalents | $ 130,928 | $ 213,520 | ||
Corporate borrowings | 2,078,675 | 2,100,247 | ||
Other long-term liabilities | 426,468 | 413,504 | ||
Capital and financing lease obligations | 122,645 | 62,997 | ||
Stockholder's equity | 774,105 | 167,440 | ||
Total assets | 4,272,675 | 3,610,797 | ||
Other Data: | ||||
Net cash provided by operating activities | $ 213,459 | $ 114,518 | ||
Adjusted EBITDA | $ 438,234 | $ 302,403 | ||
Capital expenditures | $ (167,166) | $ (130,345) | ||
Screen additions | 35 | 26 | ||
Screen acquisitions | 166 | - | ||
Screen dispositions | 95 | 181 | ||
Average screens-continuing operations | 4,837 | 4,852 | ||
Number of screens operated | 4,988 | 4,882 | ||
Number of theatres operated | 344 | 339 | ||
Screens per theatre | 14.5 | 14.4 | ||
Attendance (in thousands)-continuing operations | 199,034 | 186,319 | ||
AMC Entertainment Inc. Reconciliation of Adjusted EBITDA (Unaudited) | ||||||||
CY 2012 | CY 2011 | |||||||
In thousands | 12/30/2011 to | 52 weeks ended | ||||||
12/31/2012 | 12/29/2011 | |||||||
Earnings (loss) from continuing operations | $ | 24,132 | $ | (239,063 | ) | |||
Plus: | ||||||||
Income tax provision | 985 | 910 | ||||||
Interest expense | 160,004 | 169,049 | ||||||
Depreciation and amortization | 209,451 | 211,107 | ||||||
Impairment of long-lived assets | 285 | 12,779 | ||||||
Certain operating expenses (2) | 16,696 | 70,322 | ||||||
Equity in earnings from non-consolidated entities | (15,760 | ) | (1,985 | ) | ||||
Cash distributions from non-consolidated entities | 29,794 | 35,084 | ||||||
Gain on NCM transactions | - | 207 | ||||||
Investment expense | 224 | 17,590 | ||||||
Other expense | 2,371 | 17,333 | ||||||
General and administrative expense-unallocated: | ||||||||
Merger, acquisition and transaction costs | 4,981 | 2,093 | ||||||
Management fee | 3,750 | 5,000 | ||||||
Stock-based compensation expense | 1,321 | 1,977 | ||||||
Adjusted EBITDA (1) | $ | 438,234 | $ | 302,403 | ||||
(1) Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net earnings (loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. | ||||||||
Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. For example, Adjusted EBITDA: | ||||||||
• does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments; | ||||||||
• does not reflect changes in, or cash requirements for, our working capital needs; | ||||||||
• does not reflect the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt; | ||||||||
• excludes income tax payments that represent a reduction in cash available to us; | ||||||||
• does not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; and | ||||||||
• does not reflect management fees that were paid to our sponsors. | ||||||||
(2) Certain operating expenses | ||||||||
Preopening expense | $ | 5,165 | $ | 4,732 | ||||
Theatre and other closure expense | 8,334 | 61,069 | ||||||
Deferred digital equipment rent expense | 4,574 | 3,095 | ||||||
Disposition of assets | (1,377 | ) | 1,426 | |||||
$ | 16,696 | $ | 70,322 | |||||
AMC Entertainment Inc.
Sun Dee Larson, 816-204-5699
slarson@amctheatres.com
KEYWORDS: United States North America Missouri
INDUSTRY KEYWORDS:
The article AMC Entertainment Inc. Reports a 10.8% Increase in Total Revenues and a 6.8% Increase in Attendance During CY2012 originally appeared on Fool.com.
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