UP Invest, the owner of a Baltics cinema group,
will acquire all nine AMC theatre locations in Latvia, Lithuania,
and Estonia
The $77 million cash purchase price represents
a 9.3x multiple of anticipated 2020 EBITDA* before the onset of
COVID-19
The sale price reflects an attractive valuation
for these theatres and both enhances liquidity and lowers net debt
by $77 million
AMC Entertainment Holdings, Inc. (NYSE:AMC), today announced
that it has signed a definitive agreement to sell nine theatre
locations in the Baltic region (Latvia, Lithuania, and Estonia) for
€65 million which equates to approximately $77 million.
“This transaction marks yet another bold and decisive action
taken, on the heels of our capital raising in April and debt
restructuring and capital raising in July, to bolster our liquidity
and strengthen our balance sheet at a transaction multiple that
underscores the inherent value of our theatre portfolio and
resilience of our business,” said Adam Aron, CEO and President of
AMC. “We continue to be encouraged by attendance levels at theatres
that have reopened in Europe, where essentially all theatres are
open, and in the U.S., where almost 300 theatres are currently open
for business. Growing consumer confidence in our cleaning and
safety protocols continues to generate increased attendance and
food and beverage spend, and we look forward to offering a full
slate of new and entertaining film product to further drive
attendance over the remainder of 2020.”
The agreement calls for AMC to receive approximately half of the
sale proceeds on signing and the balance upon closing in each
country after antitrust resolution in the coming months.
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.
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 1,000 theatres and 11,000 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 12 countries it serves in North America, Europe and the Middle
East. For more information, visit www.amctheatres.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the federal securities laws. In many cases, these
forward-looking statements may be identified by the use of words
such as “will,” “may,” “should,” “believes,” “expects,”
“anticipates,” “estimates,” “intends,” “projects,” “goals,”
“objectives,” “targets,” “predicts,” “plans,” “seeks,” and
variations of these words and similar expressions. Examples of
forward-looking statements include statements we make regarding the
impact of COVID-19 and our liquidity. Any forward-looking statement
speaks only as of the date on which it is made. These
forward-looking statements may include, among other things,
statements related to AMC’s current expectations regarding the
performance of its business, financial results, liquidity and
capital resources, and the impact to its business and financial
condition of, and measures being taken in response to, the COVID-19
virus, and 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: the impact of the COVID-19 virus on AMC, the
motion picture exhibition industry, and the economy in general,
including AMC’s response to the COVID-19 virus related to
suspension of operations at theatres, personnel reductions and
other cost-cutting measures and measures to maintain necessary
liquidity and increases in expenses relating to precautionary
measures at AMC’s facilities to protect the health and well-being
of AMC’s customers and employees; the general volatility of the
capital markets and the market price of AMC’s Class A common stock;
motion picture production and performance; AMC’s lack of control
over distributors of films; increased use of alternative film
delivery methods or other forms of entertainment; general and
international economic, political, regulatory and other risks,
including risks related to the United Kingdom’s exit from the
European Union or widespread health emergencies, or other pandemics
or epidemics; risks and uncertainties relating to AMC’s significant
indebtedness, including AMC’s borrowing capacity under its
revolving credit agreement; AMC’s ability to execute cost cutting
and revenue enhancement initiatives as previously disclosed and in
connection with response to COVID-19; limitations on the
availability of capital; AMC’s ability to refinance its
indebtedness on favorable terms; availability of financing upon
favorable terms or at all; risks relating to impairment losses,
including with respect to goodwill and other intangibles, and
theatre and other closure charges; 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 the Company’s Form 10-Q for the quarter ended March 31,
2020 filed with the SEC, the section entitled “Risk Factors” in
AMC’s Form 10-K for the year ended December 31, 2019 filed with the
SEC, 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.
__________________________________
* The anticipated 2020 EBITDA was based on management’s
projections and internal assumptions, which were made before the
2020 fiscal year, and does not take into account suspension of
operations caused by the COVID-19 pandemic. Management does not
believe such 2020 EBITDA projections will be achieved. It does not
reflect any current projections, estimates, or assumptions either
of actual financial results or of any projected financial results
that take into account the current operating environment or current
management views of resumption of operations, other events as
consequence of the COVID-19 pandemic, or any other matters related
thereto. EBITDA is a non-GAAP financial measure. The anticipated
2020 EBITDA is a prospective measure that cannot be reconciled to a
directly comparable financial measure calculated and presented in
accordance with GAAP, as unreasonable effort would be required to
do so.
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INVESTOR RELATIONS: John Merriwether, 866-248-3872
InvestorRelations@amctheatres.com
MEDIA CONTACTS: Ryan Noonan, 913-213-2183
rnoonan@amctheatres.com
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