On August 2, 2024, AMC Entertainment Holdings Inc (AMC, Financial) released its 8-K filing for the second quarter ended June 30, 2024. AMC, a leader in the theatrical exhibition business, operates theatres in the United States and Europe, offering amenities such as plush recliners, full bars, dine-in theatres, and premium presentations. The company has two reportable segments: U.S. markets and International markets, with key revenue derived from the U.S.
Quarterly Performance and Challenges
AMC's second quarter began slowly due to the 2023 Hollywood writers and actors strikes, which adversely impacted the box office. However, the quarter ended on a high note with the success of Disney’s "INSIDE OUT 2," now the highest-grossing animated movie of all time. This stark contrast in performance highlights the volatility in the industry.
Adam Aron, Chairman and CEO of AMC Entertainment, commented, “As expected, the second quarter started slowly with the box office adversely impacted by the 2023 Hollywood writers and actors strikes. However, the quarter finished with incredible strength powered by the success of Disney’s INSIDE OUT 2, which is now the highest grossing animated movie of all time.”
Financial Achievements
Despite the initial challenges, AMC achieved its highest-ever June Adjusted EBITDA in its 104-year history. The momentum continued into July with hits like "DESPICABLE ME 4" and "TWISTERS," followed by the record-breaking opening of "DEADPOOL & WOLVERINE."
Aron added, “On the heels of strong Adjusted EBITDA in June, the momentum has continued to impress in July, with box office hits DESPICABLE ME 4 and TWISTERS followed by the phenomenal opening of DEADPOOL & WOLVERINE.”
Key Financial Results
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $1,030.6M | $1,347.9M | (23.5)% |
| Net Earnings (Loss) | $(32.8)M | $8.6M | (480.2)% |
| Adjusted EBITDA | $29.4M | $182.5M | (83.9)% |
| Free Cash Flow | $(79.2)M | $(62.0)M | (27.7)% |
| Attendance (in thousands) | 50,013 | 66,368 | (24.6)% |
Income Statement Highlights
AMC reported total revenues of $1,030.6 million for Q2 2024, a 23.5% decrease from $1,347.9 million in Q2 2023. Net earnings swung to a loss of $32.8 million from a profit of $8.6 million in the same period last year. Adjusted EBITDA also saw a significant decline to $29.4 million from $182.5 million. The company’s free cash flow was negative at $79.2 million, compared to a negative $62.0 million in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, AMC had cash and cash equivalents of $770.3 million, excluding restricted cash of $48.3 million. Corporate borrowings stood at $4,335.5 million, down from $4,577.4 million at the end of 2023. The company’s stockholders' deficit improved to $1,696.6 million from $1,847.9 million.
Operational Metrics
Attendance for the quarter was 50,013 thousand, a 24.6% decline from 66,368 thousand in Q2 2023. U.S. markets saw a 27.0% drop in attendance, while international markets experienced a 17.3% decline. The average ticket price increased slightly to $11.29 from $11.21, and food and beverage revenues per patron remained relatively stable at $7.34.
Analysis and Outlook
AMC's performance in Q2 2024 underscores the challenges posed by external factors such as industry strikes. However, the company's ability to end the quarter on a high note with record-breaking movie releases demonstrates its resilience and potential for recovery. The extension of debt maturities to 2029 and 2030 provides a stronger financial runway, positioning AMC for sustained growth amid a promising slate of blockbuster releases in the coming years.
Aron concluded, “The power of an extension of our financial runway for many years into the future, combined with what we believe is a multi-year slate of blockbuster movie releases, sets the stage for continued recovery at AMC.”
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from AMC Entertainment Holdings Inc for further details.
