AMC Entertainment Holdings Inc (AMC) Q3 2024 Earnings Call Highlights: Record Revenue Per ...

GuruFocus News
4 min read

In This Article:

  • Net Loss Reduction: Net loss narrowed by 37% compared to Q2 2024.

  • Total Revenue Increase: Revenues increased by 31% compared to Q2 2024.

  • Adjusted EBITDA: 4x stronger in Q3 2024 than Q2 2024, marking the second-best Q3 EBITDA in AMC's history.

  • Admissions Revenue Per Patron: Achieved a new record for Q3.

  • Food and Beverage Revenue Per Patron: Set an all-time record for any quarter.

  • Cash on Hand: Ended Q3 with $527 million.

  • Debt Reduction: Paid down $345 million of debt year-to-date in 2024.

  • Store Count: Expanded AMC Perfectly Popcorn to over 6,000 locations.

  • Attendance: 65 million moviegoers in Q3 2024.

  • Revenue Per Patron: $20.72, up 37.1% from pre-pandemic 2019.

  • Contribution Margin Per Patron: $13.49, up 41% from pre-pandemic 2019.

  • Food and Beverage Per Patron: $7.53, a 14.8% increase from Q3 2023.

  • Debt Maturity Extension: Extended $2.4 billion of debt maturities from 2026 to 2029 and 2030.

  • Net Cash Used in Operating Activities: $31.5 million in Q3.

  • Theater Closures and Openings: Closed 11 underperforming locations and opened 1 new location in Q3.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AMC Entertainment Holdings Inc (NYSE:AMC) reported a significant improvement in financial performance, with a 37% reduction in net loss compared to the previous quarter.

  • The company achieved a new record for third-quarter admissions revenue per patron and set an all-time record for food and beverage revenues per patron.

  • AMC's adjusted EBITDA was four times stronger in Q3 2024 than in Q2 2024, marking the second-best EBITDA performance for any third quarter in the company's history.

  • AMC successfully extended $2.4 billion of long-term debt maturities from 2026 to 2029 and 2030, strengthening its balance sheet.

  • The company expanded its AMC Perfectly Popcorn distribution to over 6,000 locations, with plans to reach 10,000 or more retail locations by mid-2025.

Negative Points

  • AMC's consolidated attendance was approximately 12% below the same period last year, partly due to a film slate that did not resonate as well in Europe.

  • The company's overall North American market share declined by approximately 60 basis points due to the interplay between the film slate and geographic mix.

  • Despite improvements, AMC's adjusted EBITDA for 2024 is expected to be a fraction of pre-pandemic levels in 2019.

  • The company faces challenges in maintaining cash reserves and managing debt obligations, despite recent improvements.

  • AMC's attendance in Q3 2024 was 25% lower than in the pre-pandemic third quarter of 2019, indicating ongoing recovery challenges.

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