AMC Entertainment Holdings, Inc. (“AMC” or “the Company”), one
of the world’s leading theatrical exhibition companies and an
industry leader in innovation and operational excellence, today
reported results for the second quarter ended June 30, 2016.
Highlights for the second quarter 2016 include the
following:
- Total revenues were $764.0 million
compared to total revenues of $821.1 million for the three months
ended June 30, 2015.
- Admissions revenues were $481.2 million
compared to $533.4 million for the same period a year ago. Average
ticket price was $9.63 compared to $9.91 for the same period a year
ago.
- Food and beverage revenues were $243.5
million, compared to $250.5 million for the quarter ended June 30,
2015. Food and beverage revenues per patron increased 4.7% to an
all-time high record of $4.87. This quarter marks nine of the last
ten quarters AMC has set an all-time high record in food and
beverage per patron.
- Net earnings were $24.0 million and
diluted earnings per share (“diluted EPS”) were $0.24 compared to
$43.9 million and $0.45, respectively, for the three months ended
June 30, 2015.
- Adjusted diluted earnings per share (1)
were $0.24 compared to $0.48 for the three months ended June 30,
2015. Included in adjusted diluted earnings per share for the three
months ended June 30, 2016 was approximately $5.5 million of merger
and acquisition costs.
- Adjusted EBITDA(1) was $129.6 million
compared to $157.8 million for the three months ended June 30,
2015. Adjusted EBITDA Margin (1) for the second quarter was 17.0%
compared to 19.2%, for the same period a year ago.
- Adjusted Free Cash Flow(1) for the
quarter ended June 30, 2016 was $40.8 million compared to $68.8
million for the quarter ended June 30, 2015.
“It would ordinarily be difficult to be pleased with a quarter
in which a lackluster film slate caused us to share in the
industrywide box office revenue decline that was down domestically
some 10.7% per screen year-over-year. However, we are encouraged
that this trend has already reversed itself with industry box
office revenues up more than 7% as of July 29th, and a potentially
record setting film slate being close at hand for calendar year
2017,” said Adam Aron, AMC Chief Executive Officer and
President.
Aron added, “However, of far greater importance in our view,
things that were within our control tell a much different story for
AMC. We made progress at AMC in the second quarter in four
significant ways. First, our theatre renovations featuring recliner
seats, premium large format auditoriums and a refreshed overall
decor continued to lead the industry, enhancing our appeal to
consumers. Second, thanks to continuing our innovation of the AMC
theatre experience, food and beverage revenues per patron were an
all-time record for us. Third, we wholly revamped our already
popular AMC Stubs® loyalty program, and tested it in 40 theatres in
6 markets. The test was so successful that we have already rolled
out the new program nationally across our entire network.
Moviegoers are signing up to enroll in the new AMC Stubs® loyalty
program at a rate 2 to 3 times than that for the previous program,
and the number of our total active members is already up
approximately 20% in just a few short months. We believe membership
should continue to increase at a brisk pace, and this augers
brightly for AMC's future. And fourth, our executives and staff
worked tirelessly to put us in a position to announce in July our
acquisition of Odeon & UCI Cinemas in Europe as well as a new
merger agreement with Carmike Cinemas here in the United States.
When either of these acquisitions close, AMC then becomes overnight
the largest movie exhibitor in the world. Taken together, this
level of activity and progress is almost breathtaking, enabling AMC
to be uniquely positioned to deliver additional value to our
guests, associates and shareholders.”
Highlights for the six months ended June 30, 2016 include the
following:
- AMC set all-time high records for the
six months ended June 30th period for all revenue segments: total
revenues, admissions revenues, food and beverage revenues and other
revenues.
- Total revenues increased 3.8% to
$1,530.0 million compared to total revenues of $1,474.2 million for
the six months ended June 30, 2015.
- Admissions revenues grew 1.2% to $963.8
million compared to $952.1 million for the six months ended June
30, 2015. Average ticket price was $9.52 compared to $9.66 for the
six months ended June 30, 2015 and attendance grew 2.7% to more the
101 million guests.
- Food and beverage revenues increased
8.1% to $487.7 million, compared to $451.0 million for the six
months ended June 30, 2015. Food and beverage revenues per patron
increased 5.2% to a new six month record of $4.82.
- Net earnings increased 4.4% to $52.3
million and diluted earnings per share grew 3.9% to $0.53 compared
to $50.1 million and $0.51, respectively, for the six months ended
June 30, 2015.
- Adjusted diluted earnings per share (1)
increased 18.6% to $0.51 compared to the six months ended June 30,
2015. Included in adjusted diluted earnings per share for the six
months ended June 30, 2016 was approximately $10.2 million of
merger and acquisition costs.
- Adjusted EBITDA(1) grew 0.9% to $276.0
million compared to $273.5 million and Adjusted EBITDA Margin(1)
was 18.0%, compared to 18.5% for the six months ended June 30,
2015.
- Adjusted EBITDA(1) for the six months
ended June 30, 2015, benefited from an $18.1 million gain related
to the termination of a post-retirement health benefit plan which
caused our net periodic benefit costs to be much lower than normal
in the prior year. The gain was recorded as a reduction of general
and administrative: other expense. Excluding this gain in the prior
year period, Adjusted EBITDA growth, year-over-year for the six
months ended June 30, 2016, would have shown an improvement of
approximately 8.1%, and Adjusted EBITDA Margin improvement of 70
basis points from 17.3% to 18.0%.
- Adjusted Free Cash Flow(1) for the six
months ended June 30, 2016 increased approximately $25.0 million,
or 28.4%, to $112.9 million compared to $87.9 million for the six
months ended June 30, 2015.(1) (Reconciliations and definitions of
non-GAAP financial measures are provided in the financial schedules
accompanying this press release.)
CFO Commentary
Commentary on the quarter by Craig Ramsey, AMC's executive vice
president and chief financial officer, is available at
http://investor.amctheatres.com
Dividend
On April 27, 2016, the Company declared a regular quarterly
dividend of $0.20 per share for the quarter ended March 31, 2016,
which was paid on June 20, 2016, to shareholders of record as of
June 6, 2016. The total dividends paid in the second quarter of
2016 were approximately $19.7 million.
On July 25, 2016, the Company declared a regular quarterly
dividend of $0.20 per share for the quarter ended June 30, 2016,
which is payable on September 19, 2016, to shareholders of record
on September 6, 2016.
Acquisitions
Odeon & UCI Cinemas Group: As
previously announced on July 12, 2016, AMC entered into a
definitive agreement to acquire the equity of the largest theatre
exhibitor in Europe, London-based Odeon & UCI Cinemas Group
from private equity firm, Terra Firma in a transaction valued at
approximately £921 million (including approximately £14 million of
employee incentive costs), comprised of £500 million for the
equity, 75% in cash and 25% in stock consideration, subject to
lock-ups, and the assumption of £407 million of net debt as of
March 31, 2016 to be simultaneously refinanced at closing. Assuming
the transaction closes December 31, 2016 and a GBP/USD exchange
rate of 1.30 the transaction is valued at approximately $1,199
million under UK GAAP. The transaction is expected to produce
annual cost synergies of approximately $10 million. The transaction
is expected to be completed in the fourth quarter of 2016, subject
to antitrust clearance by the European Commission and consultation
with the European Works Council.
Carmike Cinemas, Inc. (NASDAQ:
CKEC): As previously announced on July 25, 2016, AMC has
entered into an amended and restated merger agreement to acquire
all of the outstanding shares of Carmike Cinemas, Inc. (NASDAQ:
CKEC) (“Carmike”) for $33.06 per share, representing an approximate
32% premium to Carmike’s March 3, 2016, closing stock price. The
revised offer provides an additional $3.06 per share or 10.2% more
than the previous offer. Carmike stockholders can elect to receive
$33.06 in cash or 1.0819 AMC shares per Carmike share, subject to a
customary proration mechanism to achieve an aggregate consideration
mix of 70% cash and 30% in shares of AMC stock. The transaction is
valued at approximately $1.2 billion, including the assumption of
Carmike’s net indebtedness, based on the closing trading price of
AMC’s common stock on the New York Stock Exchange on July 22,
2016.
Conference Call / Webcast
Information
The Company will host a conference call via webcast for
investors and other interested parties beginning at 7:30 a.m.
CT/8:30 a.m. ET on Monday, August 1, 2016. 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.
Participants may also listen to the call by dialing (877)
407-3982, or (201) 493-6780 for international participants.
A podcast and archive of the webcast will be available on the
Company’s website after the call for a limited time.
About AMC Entertainment Holdings, Inc.
AMC (NYSE:AMC) is the guest experience leader with 386 locations
and 5,334 screens located primarily in the United States. AMC has
propelled innovation in the theatrical exhibition industry and
continues today by delivering more comfort and convenience,
enhanced food & beverage, greater engagement and loyalty,
premium sight & sound, and targeted programming. AMC operates
the most productive theatres in the country’s top markets,
including No. 1 market share in the top three markets (NY, LA,
Chicago). 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 E-mail 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,” “strategy,” “future,”
“likely,” “may,” “should,” “believe,” “continue,” and other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. Similarly,
statements made herein and elsewhere regarding the pending
acquisitions of Odeon & UCI and Carmike Cinemas (collectively
“the targets”) are also forward-looking statements, including
statements regarding the anticipated closing date of the
acquisitions, the source and structure of financing, management’s
statements about effect of the acquisitions on AMC’s future
business, operations and financial performance and AMC’s ability to
successfully integrate the targets into its operations. 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: the parties’ ability to satisfy closing
conditions in the anticipated time frame or at all; obtaining
regulatory approval, including the risk that any approval may be on
terms, or subject to conditions, that are not anticipated;
obtaining the Carmike stockholders approval for the Carmike
transaction; the possibility that these acquisitions do not close,
including in circumstances in which AMC would be obligated to pay a
termination fee or other damages or expenses; related to financing
these transactions, including AMC’s ability to finance the
transactions on acceptable terms and to issue equity at favorable
prices; responses of activist stockholders to the transactions;
AMC’s ability to realize expected benefits and synergies from the
acquisitions; AMC’s effective implementation, and customer
acceptance, of its marketing strategies; disruption from the
proposed transactions- making it more difficult to maintain
relationships with customers, employees or suppliers; the diversion
of management time on transaction-related issues; the negative
effects of this announcement or the consummation of the proposed
acquisitions- on the market price of AMC’s common stock; unexpected
costs, charges or expenses relating to the acquisitions; unknown
liabilities; litigation and/or regulatory actions related to the
proposed transactions; AMC’s significant indebtedness, including
the indebtedness incurred to acquire the targets; execution risks
related to the integration of Starplex Cinemas into our business;
our ability to achieve expected synergies and performance from our
acquisition of Starplex Cinemas; AMC’s ability to utilize net
operating loss carry-forwards to reduce future tax liability;
increased competition in the geographic areas in which we operate
and from alternative film-delivery methods and other forms of
entertainment; continued effectiveness of AMC’s strategic
Initiatives; the impact of shorter theatrical exclusive release
windows; our ability to attract and retain senior executives and
other key personnel; the impact of governmental regulation,
including anti-trust investigations concerning potentially
anticompetitive conduct, including film clearances and
participation in certain joint ventures; unexpected delays and
costs related to our optimization of our theatre circuit; failure,
unavailability or security breaches of our information systems;
operating a business in markets AMC is unfamiliar with; the United
Kingdom’s exit from the European Union; and other business effects,
including the effects of industry, market, economic, political or
regulatory conditions, future exchange or interest rates, changes
in tax laws, regulations, rates and policies; and risks, trends,
uncertainties and other facts 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 8, 2016, and the risks, trends and uncertainties identified
in their 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.
AMC Entertainment Holdings, Inc. Consolidated Statements
of Operations For the Fiscal Periods Ended 6/30/16 and
6/30/15
(dollars in thousands, except per share
data)
(unaudited)
3 Months Ended 6 Months Ended
June 30, June 30, 2016 2015
2016 2015 Revenues Admissions $ 481,234 $ 533,382 $
963,808 $ 952,076 Food and beverage 243,546 250,516 487,698 451,040
Other theatre 39,182 37,181 78,473 71,087
Total revenues 763,962 821,079
1,529,979 1,474,203 Operating
costs and expenses Film exhibition costs 262,940 295,416 525,294
518,504 Food and beverage costs 34,100 35,807 68,065 64,315
Operating expense 200,026 205,414 402,339 392,672 Rent 122,819
115,022 247,403 232,943 General and administrative: Merger,
acquisition and transaction costs 5,548 261 10,152 1,839 Other
20,634 17,737 39,150 22,678 Depreciation and amortization 62,291
57,249 122,721 115,026 Operating costs
and expenses 708,358 726,906
1,415,124 1,347,977 Operating income
55,604 94,173 114,855 126,226 Other expense (income): Other expense
(110 ) 9,273 (84 ) 9,273 Interest expense: Corporate borrowings
24,888 24,717 49,755 50,796 Capital and financing lease obligations
2,147 2,331 4,342 4,704 Equity in earnings of non-consolidated
entities (11,849 ) (9,362 ) (16,113 ) (10,686 ) Investment (income)
loss 176 (59 ) (9,778 ) (5,202 ) Total
other expense 15,252 26,900
28,122 48,885 Earnings before income
taxes 40,352 67,273 86,733 77,341 Income tax provision 16,385
23,350 34,475 27,280 Net Earnings $
23,967 $ 43,923 $ 52,258 $ 50,061
Diluted earnings per share $ 0.24
$ 0.45 $ 0.53 $ 0.51
Adjusted diluted earnings per share (1) $ 0.24
$ 0.48 $ 0.51 $ 0.43
Average shares outstanding diluted 98,304
98,037 98,237 97,987
Balance Sheet Data (at
period end): (dollars in thousands)
(unaudited)
As of
As of
June 30, December 31, 2016 2015 Cash
and equivalents $ 93,316 $ 211,250 Corporate borrowings 1,834,970
1,912,793 Other long-term liabilities 492,393 462,626 Capital and
financing lease obligations 97,665 101,864 Stockholders' equity
1,552,846 1,538,703 Total assets 4,948,541 5,088,317
Other
Data: (in thousands, except operating data) (unaudited)
3
Months Ended 6 Months Ended June 30, June
30, 2016 2015 2016 2015 Net
cash provided by operating activities 111,077 171,352 133,948
192,915 Capital expenditures (82,668 ) (74,167 ) (140,325 )
(143,757 ) Screen additions - 12 12 12 Screen acquisitions 11 32 11
40 Screen dispositions - - 38 - Construction openings (closures),
net (57 ) 28 (77 ) 32 Average screens-continuing operations 5,282
4,943 5,298 4,914 Number of screens operated 5,334 5,031 5,334
5,031 Number of theatres operated 386 350 386 350 Screens per
theatre 13.8 14.4 13.8 14.4 Attendance (in thousands) 49,996 53,818
101,241 98,576
Reconciliation of Diluted Earnings
Per Share to Adjusted Diluted Earnings Per Share: (dollars in
thousands, except per share data) (unaudited)
3 Months Ended 6 Months Ended June
30, June 30, 2016 2015
2016 2015 Net Earnings: $ 23,967
$ 43,923 $ 52,258 $ 50,061
Net periodic benefit credit related to the
termination of post-retirement plan
- - - (18,118 ) Loss on redemption of 9.75% Senior - 9,273 - 9,273
Subordinated Notes due 2020 Gain on sale Real D - - (3,008 ) -
Discrete tax benefit recorded in income tax provision - (2,900 )
(2,900 )
Income tax effects of pre-tax adjustments
above
- (3,616 ) 1,173 3,450
Net Earnings, excluding benefit related to
termination of post-retirement plan, loss on redemption of Notes
due 2020, gain on sale of RealD, discrete tax benefit, and related
tax effects of adjustments
$ 23,967 $ 46,680 $ 50,423 $ 41,766 Average shares
outstanding, diluted 98,304 98,037
98,237 97,987 Adjusted diluted earnings
per share (1) $ 0.24 $ 0.48 $ 0.51 $ 0.43
Diluted Earnings per share $ 0.24 $ 0.45 $ 0.53 $
0.51
Reconciliation of Adjusted EBITDA: (dollars in
thousands) (unaudited)
3 Months Ended 6 Months Ended
June 30, June 30, 2016 2015
2016 2015 Net Earnings $ 23,967 $ 43,923 $ 52,258 $
50,061 Plus: Income tax provision 16,385 23,350 34,475 27,280
Interest expense 27,035 27,048 54,097 55,500 Depreciation and
amortization 62,291 57,249 122,721 115,026 Certain operating
expenses (3) 3,838 3,350 7,240 7,414 Equity in earnings of
non-consolidated entities (11,849 ) (9,362 ) (16,113 ) (10,686 )
Cash distributions from non-consolidated entities 590 1,285 18,271
15,771 Investment (income) loss 176 (59 ) (9,778 ) (5,202 ) Other
expense (4) (110 ) 9,273 (84 ) 9,273 General and administrative
expense-unallocated: Merger, acquisition and transaction costs
5,548 261 10,152 1,839 Stock-based compensation expense (5)
1,717 1,439 2,804 7,178
Adjusted EBITDA (2) $ 129,588 $ 157,757 $
276,043 $ 273,454 Adjusted EBITDA Margin (6)
17.0 % 19.2 % 18.0 % 18.5 %
Reconciliation of Adjusted Free Cash Flow: (dollars in
thousands) (unaudited)
3 Months Ended
6 Months Ended June 30, June 30,
2016 2015 2016
2015 Net Earnings $ 23,967 $ 43,923 $ 52,258 $ 50,061 Plus:
Income tax provision 16,385 23,350 34,475 27,280 Interest expense
27,035 27,048 54,097 55,500 Depreciation and amortization 62,291
57,249 122,721 115,026 Certain operating expenses (3) 3,838 3,350
7,240 7,414 Equity in earnings of non-consolidated entities (11,849
) (9,362 ) (16,113 ) (10,686 ) Cash distributions from
non-consolidated entities 590 1,285 18,271 15,771 Investment
(income) loss 176 (59 ) (9,778 ) (5,202 ) Other expense (4) (110 )
9,273 (84 ) 9,273 General and administrative expense-unallocated: -
- - - Merger, acquisition and transaction costs 5,548 261 10,152
1,839 Stock-based compensation expense (5) 1,717 1,439 2,804 7,178
Minus:
Cash distributions from non-consolidated
entities
590 1,285 18,271 15,771 Income taxes paid, net of refunds 3,284
(1,635 ) 4,090 (1,130 ) Cash interest expense 25,569 27,394 51,383
56,718
Capital expenditures (excluding change in
construction payables)
82,569 70,823 128,680 130,207 Landlord contributions (27,537 )
(12,726 ) (47,846 ) (23,717 ) Principal payments under Term Loan
2,201 1,937 4,403 3,875
Principal payments under capital and
financing lease obligations
2,123 1,940 4,199 3,826 Adjusted Free Cash Flow (7) $ 40,789
$ 68,739 $ 112,863 $ 87,904 (1)
Adjusted diluted earnings per share is diluted earnings per
share excluding a non-recurring postretirement net periodic benefit
credit in the prior year, a loss on redemption of our 9.75% Senior
Subordinated Notes due 2020 in the prior year quarter and year, a
gain on sale of our investments in Real D during the current year,
a discrete tax benefit recorded in income tax provision during the
prior year quarter and year and the related tax effects of those
adjustments. We have included adjusted diluted earnings per share
because we believe it provides investors with additional useful
information on our performance and is used by management to assess
our performance. We have calculated the tax effects of the pre-tax
adjustments described above using our effective Federal and State
income tax rate for current and deferred income taxes which is
reflective of our estimated annual GAAP income tax rate forecast
adjusted to account for items excluded from GAAP income. Adjusted
diluted earnings per share is a non-GAAP financial measure and
should not be used as an alternative to diluted earnings per share,
and may not be comparable to similarly titled measures reported by
other companies. (2)
We present Adjusted EBITDA as a
supplemental measure of our performance. We define Adjusted EBITDA
as net earnings plus (i) income tax provision, (ii) interest
expense and (iii) depreciation and amortization, as further
adjusted to eliminate the impact of certain items that we do not
consider indicative of our ongoing operating performance and to
include any cash distributions of earnings from our equity method
investees. These further adjustments are itemized above. You are
encouraged to evaluate these adjustments and the reasons we
consider them appropriate for supplemental analysis. In evaluating
Adjusted EBITDA, you should be aware that in the future we may
incur expenses that are the same as or similar to some of the
adjustments in this presentation. Our presentation of Adjusted
EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items.
Adjusted EBITDA is a non-GAAP financial measure and should not be
construed as an alternative to net earnings 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 U.S. 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, 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; and
•
does not reflect any cash requirements for the assets being
depreciated and amortized that may have to be replaced in the
future. (3) Amounts represent preopening expense related to
temporarily closed screens under renovation, theatre and other
closure expense for the permanent closure of screens including the
related accretion of interest, non-cash deferred digital equipment
rent expense, and disposition of assets and other non-operating
gains or losses included in operating expenses. We have excluded
these items as they are non-cash in nature, include components of
interest cost for the time value of money or are non-operating in
nature. (4)
Other expense for the prior year quarter
and prior year related to the cash tender offer and redemption of
the 9.75% Senior Subordinated Notes due 2020. We exclude other
expense and income related to financing activities as the amounts
are similar to interest expense or income and are non-operating in
nature.
(5) Non-cash expense included in General and Administrative:
Other (6)
We define Adjusted EBITDA Margin as
Adjusted EBITDA divided by Total Revenues.
(7)
We use Adjusted Free Cash Flow as a
performance measure in our internal evaluation of operating
effectiveness and in making decisions regarding the allocation of
resources. Adjusted Free Cash Flow is a non-GAAP financial measure
and should not be construed as an alternative to net earnings 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 U.S. GAAP). We define Adjusted Free
Cash Flow as Adjusted EBITDA minus the sum of cash distributions
from non-consolidated entities, cash taxes, cash interest, capital
expenditures (excluding change in construction payables) net of
landlord contributions, mandatory payments of principal under any
credit facility and payments under capital lease obligations and
financing lease obligations as further described in the table
below. We make adjustments to Adjusted EBITDA for certain cash
requirements to determine amounts available for general capital
purposes from our operations. Adjusted Free Cash Flow may not be
comparable to similarly titled measures reported by other companies
or other similar measures of cash flow. We have included Adjusted
Free Cash Flow as we believe it provides a useful measure of funds
available for general capital purposes from our operations, and
because it is used by management to evaluate the performance of our
Company.
3 Months Ended 6
Months Ended June 30, June 30, 2016
2015 2016 2015 Adjusted
EBITDA $ 129,588 $ 157,757 $ 276,043 $ 273,454 Minus:
Cash distributions from non-consolidated
entities
590 1,285 18,271 15,771 Income taxes paid, net of refunds 3,284
(1,635 ) 4,090 (1,130 ) Cash interest expense 25,569 27,394 51,383
56,718
Capital expenditures (excluding change in
construction payables)
82,569 70,823 128,680 130,207 Landlord contributions (27,537 )
(12,726 ) (47,846 ) (23,717 ) Principal payments under Term Loan
2,201 1,937 4,403 3,875
Principal payments under capital and
financing lease obligations
2,123 1,940 4,199 3,826 Adjusted Free Cash Flow $ 40,789 $
68,739 $ 112,863 $ 87,904
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160801005431/en/
AMC Entertainment Holdings, Inc.INVESTOR
RELATIONS:John Merriwether,
866-248-3872InvestorRelations@amctheatres.comorMEDIA
CONTACTS:Ryan Noonan, 913-213-2183rnoonan@amctheatres.com
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AMC Entertainment (NYSE:AMC)
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From May 2023 to May 2024