AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the
Company”), the largest theatrical exhibition company in the U.S.,
in Europe and in the world, and an industry leader in innovation
and operational excellence, announced today that to facilitate
greater transparency and clarity it is providing additional
financial disclosure primarily related to its three recent
acquisitions.
First Quarter 2017 Adjusted
EBITDA: As of today, the Company expects its reported
adjusted EBITDA to exceed the current FACTSET EBITDA consensus
estimate for the first quarter ended March 31, 2017. As has long
been the case, the Company believes that adjusted EBITDA is
relevant and helpful in understanding the Company’s financial
performance, but also understands that it is a non-GAAP term as
defined in the Company’s appropriate public filings.
Earnings and earnings per share are expected to be impacted by
the following expenses related to AMC’s three recent
acquisitions:
Depreciation and
Amortization: Depreciation and amortization
expense for 2017 is expected to increase compared to 2016 as a
result of an increase in depreciable assets related primarily to
the Odeon Cinemas Group (“Odeon”) and Carmike Cinemas, Inc.
(“Carmike”) acquisitions, our 2016 capital expenditures and our
anticipated increase in 2017 capital expenditures. The increased
asset amounts have been calculated after applying the Company’s
accounting policies and adjusting the results of Carmike and Odeon
to reflect the preliminary fair value adjustments to property and
equipment under U.S. GAAP. These accounting adjustments resulted in
a significant write-up of assets and increases in capital lease and
financing lease assets, and subsequently, an expected increase in
depreciation and amortization expense for 2017. For the first
quarter ended March 31, 2017, depreciation and amortization expense
is expected to be between $125.0 and $130.0 million dollars.
Interest Expense: Interest
expense for 2017 is expected to increase compared to 2016 as a
result of the additional borrowings related to the Odeon, Carmike
and Nordic acquisitions and related to capital and financing lease
obligations acquired in the Odeon and Carmike acquisitions. For the
first quarter ended March 31, 2017, interest expense is expected to
be between $62.0 and $65.0 million dollars.
Merger and Acquisition
Expense: Merger and acquisition expense for the first
quarter ended March 31, 2017, is expected to increase compared to
the first quarter of 2016 primarily as a result of AMC’s
implementation of the requirements of the final judgment entered in
conjunction with the DOJ approval of the Carmike acquisition, and
the successful completion of the Nordic Cinema Group Holding AB
(“Nordic”) acquisition. As previously reported on March 10, 2017,
AMC returned 1.8 million NCM common units (valued at $22.6 million)
to National CineMedia, Inc. (NASDAQ: NCMI) (“NCM”) in exchange for
a waiver of exclusivity by NCM related to the required transfer of
theatres from the NCM contract to the Screenvision contract. As
previously reported, this expense will be recorded as merger and
acquisition expense in the first quarter of 2017. For the first
quarter ended March 31, 2017, merger and acquisition expense is
expected to be between $40.0 and $43.0 million.
Average Shares Outstanding:
Average shares outstanding for 2017 is expected to increase
compared to 2016 as a result of the equity consideration provided
to complete the Odeon and Carmike acquisitions in 2016 and the
successful public offering of AMC Class A common stock in February
2017. For the first quarter ended March 31, 2017, average diluted
shares outstanding are expected to be between 121.0 and 123.0
million shares.
CEO Comment: “We remain
committed to providing appropriate and relevant financial
disclosure to our shareholders. We believe that with the complexity
and close timing of the three transformative acquisitions we have
successfully completed in the last five months, the additional
disclosure we are providing today, beyond the pro forma financial
information we have already published, will be helpful for
investors,” said Adam Aron, AMC’s Chief Executive Officer and
President. “We continue to be excited about the earnings potential
for AMC as we have grown to a network of approximately 1,000
theatres and 11,000 screens in 15 countries in the U.S. and Europe.
As we deploy our proven growth initiatives across our system, we
expect to unlock both near-term and long-term value, as evidenced
already by the fact that, as of today we expect to exceed the
current FACTSET consensus EBITDA estimate for the first quarter
ended March 31, 2017. When appropriate and feasible, we expect to
provide additional financial disclosure related to the acquisitions
and their contributions for the balance of 2017.”
AMC expects to report its results for the first quarter ended
March 31, 2017, after the market closes on Monday, May 8, 2017.
The Company will host a conference call via webcast for
investors and other interested parties beginning at 4:00 p.m.
CDT/5:00 p.m. EDT on Monday, May 8, 2017. To listen to the
conference call via the internet, please visit the investor
relations section of the AMC website at
www.investor.amctheatres.com for a link to the webcast. Investors
and interested parties should go to the website at least 15 minutes
prior to the call to register, and/or download and install any
necessary audio software.
- Date: Monday, May 8, 2017
- Time: 4:00 p.m. CDT/5:00 p.m. EDT
- Dial-In Number: (877) 407-3982;
International - (201) 493-6780
An archive of the webcast will be available on the Company’s
website after the call for a limited time.
Information Regarding Preliminary Results
The preliminary estimated financial information contained in
this press release reflects management’s estimates based solely
upon information available to it as of the date of this press
release and is not a comprehensive statement of our financial
results for the three months ended March 31, 2017. In addition, the
preliminary estimated financial information presented above has not
been audited, reviewed or compiled by our independent registered
public accounting firm, KPMG LLP. Accordingly, KPMG LLP does not
express an opinion on or any other form of assurance with respect
thereto and assumes no responsibility for this information. We have
provided ranges for the preliminary estimated financial results
described above primarily because our financial closing procedures
for the three months ended March 31, 2017, are not yet complete.
The information presented above should not be considered a
substitute for full unaudited financial statements for the three
months ended March 31, 2017, once they become available and should
not be regarded as a representation by us or our management as to
our actual financial results for the three months ended March 31,
2017. The ranges for the preliminary estimated financial results
described above constitute forward-looking statements. The
preliminary estimated financial information presented above is
subject to change, and our actual financial results may differ from
such preliminary estimates and such differences could be material.
AMC does not intend, and undertakes no duty, to update the
preliminary estimated financial results except as required by
applicable law. Accordingly, you should not place undue reliance
upon these preliminary estimates. The preliminary estimated
financial information is being provided because of circumstances
applicable to the three months ended March 31, 2017, and AMC makes
no commitment to provide similar preliminary estimated financial
information for future periods whether such circumstances exist or
not.
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the U.S., in
Europe and throughout the world with approximately 1,000 theatres
and 11,000 screens across the globe. AMC has propelled innovation
in the exhibition industry by: deploying more plush power-recliner
seats; delivering enhanced food and beverage choices; generating
greater guest engagement through its loyalty program, web site and
smart phone 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 22 of the 25 largest
metropolitan areas of the United States, including the top three
markets (NY, LA, Chicago). Through its Odeon subsidiary AMC
operates in 14 European countries and is the # 1 theatre chain in
UK & Ireland, Italy, Spain, Sweden, Finland and the Baltic
States. www.amctheatres.com.
Website Information
This press release, along with other news about AMC, is
available at www.amctheatres.com. We routinely post information
that may be important to investors in the Investor Relations
section of our website, www.investor.amctheatres.com. We use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD, and we encourage investors to consult that section of our
website regularly for important information about AMC. The
information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document. Investors interested in automatically receiving
news and information when posted to our website can also visit
www.investor.amctheatres.com to sign up for email Alerts.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“forecast,” “plan,” “estimate,” “will,” “would,” “project,”
“maintain,” “intend,” “expect,” “anticipate,” “prospect,”
“strategy,” “future,” “likely,” “may,” “should,” “believe,”
“continue,” “opportunity,” “potential,” and other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These
forward-looking statements are based on information available at
the time the statements are made and/or management’s good faith
belief as of that time with respect to future events, and are
subject to risks, trends, uncertainties and other facts that could
cause actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. These
risks, trends, uncertainties and facts include, but are not limited
to, risks related to: motion picture production and performance;
AMC’s lack of control over distributors of films; intense
competition in the geographic areas in which AMC operates;
increased use of alternative film delivery methods or other forms
of entertainment; shrinking exclusive theatrical release windows;
international economic, political and other risks; risks and
uncertainties relating to AMC’s significant indebtedness;
limitations on the availability of capital; risks relating to AMC’s
inability to achieve the expected benefits and performance from its
recent acquisitions; AMC’s ability to comply with a settlement it
entered into with the U.S. Department of Justice pursuant to which
it agreed to divest theatres and divest holdings in National
CineMedia, LLC; AMC’s ability to refinance its indebtedness on
favorable terms; optimizing AMC’s theatre circuit through
construction and the transformation of its existing theatres may be
subject to delay and unanticipated costs; failures, unavailability
or security breaches of AMC’s information systems; risks relating
to impairment losses and theatre and other closure charges; AMC’s
ability to utilize net operating loss carryforwards to reduce its
future tax liability; review by antitrust authorities in connection
with acquisition opportunities; risks relating to unexpected costs
or unknown liabilities relating to recently completed acquisitions;
risks relating to the incurrence of legal liability; general
political, social and economic conditions and risks, trends,
uncertainties and other factors discussed in the reports AMC has
filed with the SEC. Should one or more of these risks, trends,
uncertainties or facts materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or anticipated by the forward-looking
statements contained herein. Accordingly, you are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date they are made. Forward-looking statements
should not be read as a guarantee of future performance or results,
and will not necessarily be accurate indications of the times at,
or by, which such performance or results will be achieved. For a
detailed discussion of risks, trends and uncertainties facing AMC,
see the section entitled “Risk Factors” in AMC’s Annual Report on
Form 10-K, filed with the SEC on March 10, 2017, and the risks,
trends and uncertainties identified in its other public filings.
AMC does not intend, and undertakes no duty, to update any
information contained herein to reflect future events or
circumstances, except as required by applicable law.
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AMC Entertainment Holdings, Inc.Investor
Relations:John Merriwether,
866-248-3872InvestorRelations@amctheatres.comorMedia
Contact:Ryan Noonan, 913-213-2183rnoonan@amctheatres.com
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