Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 04, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33892 | |
Entity Registrant Name | AMC ENTERTAINMENT HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0303916 | |
Entity Address, Address Line One | One AMC Way | |
Entity Address, Address Line Two | 11500 Ash Street | |
Entity Address, City or Town | Leawood | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66211 | |
City Area Code | 913 | |
Local Phone Number | 213-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001411579 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock | |
Trading Symbol | AMC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 519,192,389 | |
AMC Preferred Equity Units | ||
Document Information [Line Items] | ||
Title of 12(b) Security | AMC Preferred Equity Units, each constituting a depositary share representing a 1/100th | |
Trading Symbol | APE | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 995,406,413 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Total revenues | $ 954.4 | $ 785.7 |
Operating costs and expenses | ||
Operating expense, excluding depreciation and amortization below | 383.2 | 344.8 |
Rent | 205.7 | 223.2 |
General and administrative: | ||
Merger, acquisition and other costs | 0.2 | 0.4 |
Other, excluding depreciation and amortization below | 72.3 | 53.1 |
Depreciation and amortization | 93.6 | 98.7 |
Operating costs and expenses | 1,062.6 | 952.6 |
Operating loss | (108.2) | (166.9) |
Other expense, net: | ||
Other expense | 39.2 | 136.3 |
Interest expense: | ||
Corporate borrowings | 90.7 | 82 |
Finance lease obligations | 0.9 | 1.2 |
Non-cash NCM exhibitor services agreement | 9.5 | 9.2 |
Equity in (earnings) loss of non-consolidated entities | (1.4) | 5.1 |
Investment income | (13.5) | (63.4) |
Total other expense, net | 125.4 | 170.4 |
Net loss before income taxes | (233.6) | (337.3) |
Income tax provision | 1.9 | 0.1 |
Net loss | $ (235.5) | $ (337.4) |
Net loss per share attributable to AMC Entertainment Holdings, Inc.'s common stockholders: | ||
Basic | $ (0.17) | $ (0.33) |
Diluted | $ (0.17) | $ (0.33) |
Average shares outstanding: | ||
Basic (in thousands) | 1,373,947 | 1,031,820 |
Diluted (in thousands) | 1,373,947 | 1,031,820 |
Admissions | ||
Revenues | ||
Total revenues | $ 534.1 | $ 443.8 |
Operating costs and expenses | ||
Operating costs and expenses | 246.2 | 189.8 |
Food and beverage | ||
Revenues | ||
Total revenues | 328.7 | 252.5 |
Operating costs and expenses | ||
Operating costs and expenses | 61.4 | 42.6 |
Other theatre | ||
Revenues | ||
Total revenues | $ 91.6 | $ 89.4 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net loss | $ (235.5) | $ (337.4) |
Other comprehensive loss: | ||
Unrealized foreign currency translation adjustments | (7.2) | (6) |
Pension adjustments: | ||
Net gain (loss) arising during the period | (0.1) | 0.2 |
Other comprehensive loss: | (7.3) | (5.8) |
Total comprehensive loss | $ (242.8) | $ (343.2) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 495.6 | $ 631.5 |
Restricted cash | 23.1 | 22.9 |
Receivables, net | 105.7 | 166.6 |
Other current assets | 116.1 | 81.1 |
Total current assets | 740.5 | 902.1 |
Property, net | 1,670.2 | 1,719.2 |
Operating lease right-of-use assets, net | 3,740.3 | 3,802.9 |
Intangible assets, net | 147.4 | 147.3 |
Goodwill | 2,342.7 | 2,342 |
Other long-term assets | 206.5 | 222.1 |
Total assets | 8,847.6 | 9,135.6 |
Current liabilities: | ||
Accounts payable | 257 | 330.5 |
Accrued expenses and other liabilities | 490.6 | 364.3 |
Deferred revenues and income | 391.7 | 402.7 |
Current maturities of corporate borrowings | 20 | 20 |
Current maturities of finance lease liabilities | 6.5 | 5.5 |
Current maturities of operating lease liabilities | 546.5 | 567.3 |
Total current liabilities | 1,712.3 | 1,690.3 |
Corporate borrowings | 4,862 | 5,120.8 |
Finance lease liabilities | 52 | 53.3 |
Operating lease liabilities | 4,172.2 | 4,252.7 |
Exhibitor services agreement | 502.5 | 505.8 |
Deferred tax liability, net | 32.7 | 32.1 |
Other long-term liabilities | 104.2 | 105.1 |
Total liabilities | 11,437.9 | 11,760.1 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock | 0.1 | 0.1 |
Class A common stock ($.01 par value, 524,173,073 shares authorized; 519,192,390 shares issued and outstanding as of March 31, 2023; 516,838,912 shares issued and outstanding as of December 31, 2022) | 5.2 | 5.2 |
Additional paid-in capital | 5,322.1 | 5,045.1 |
Accumulated other comprehensive loss | (84.6) | (77.3) |
Accumulated deficit | (7,833.1) | (7,597.6) |
Total stockholders' deficit | (2,590.3) | (2,624.5) |
Total liabilities and stockholders' deficit | $ 8,847.6 | $ 9,135.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, share authorized (in shares) | 50,000,000 | 50,000,000 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, share authorized (in shares) | 524,173,073 | 524,173,073 |
Common stock, shares issued (in shares) | 519,192,389 | 516,838,912 |
Common stock, shares outstanding (in shares) | 519,192,389 | 516,838,912 |
AMC Preferred Equity Units | ||
Preferred stock, share authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 9,741,909 | 7,245,872 |
Preferred stock, shares outstanding ( in shares) | 9,741,909 | 7,245,872 |
Series A Convertible Participating Preferred Stock | ||
Preferred stock, share authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Preferred stock, shares issued (in shares) | 974,190,794 | 724,587,058 |
Preferred stock, shares outstanding ( in shares) | 974,190,794 | 724,587,058 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (235.5) | $ (337.4) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 93.6 | 98.7 |
(Gain) loss on extinguishment of debt | (65.1) | 135 |
Deferred income taxes | 0.6 | (0.1) |
Amortization of net premium on corporate borrowings to interest expense | (15.2) | (15.5) |
Amortization of deferred financing costs to interest expense | 2.3 | 3.5 |
Non-cash portion of stock-based compensation | 25.9 | 6.5 |
Gain on disposition of Saudi Cinema Company | (15.5) | |
Equity in (gain) loss from non-consolidated entities, net of distributions | (1.1) | 5.8 |
Landlord contributions | 6.4 | 0.6 |
Other non-cash rent benefit | (9.6) | (7.1) |
Deferred rent | (38.6) | (48.7) |
Net periodic benefit income | 0.4 | |
Non-cash shareholder litigation expense | 116.6 | |
Change in assets and liabilities: | ||
Receivables | 67 | 63.6 |
Other assets | (28.5) | (30.6) |
Accounts payable | (65.2) | (80.4) |
Accrued expenses and other liabilities | (21) | (32.8) |
Other, net | (12) | 7.8 |
Net cash used in operating activities | (189.9) | (295) |
Cash flows from investing activities: | ||
Capital expenditures | (47.4) | (34.8) |
Proceeds from disposition of Saudi Cinema Company | 30 | |
Proceeds from disposition of long-term assets | 0.8 | 7.2 |
Investments in non-consolidated entities, net | (27.9) | |
Other, net | 0.6 | |
Net cash used in investing activities | (16.6) | (54.9) |
Cash flows from financing activities: | ||
Scheduled principal payments under Term Loan due 2026 | (5) | (5) |
Net proceeds from AMC Preferred Equity Units issuance | 146.6 | |
Principal payments under finance lease obligations | (1.6) | (2.5) |
Cash used to pay for deferred financing costs | (1.5) | (17.7) |
Cash used to pay dividends | (0.7) | |
Taxes paid for restricted unit withholdings | (13.1) | (52.2) |
Net cash provided by (used in) financing activities | 68.9 | (76.3) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1.9 | (5.5) |
Net decrease in cash and cash equivalents and restricted cash | (135.7) | (431.7) |
Cash and cash equivalents and restricted cash at beginning of period | 654.4 | 1,620.3 |
Cash and cash equivalents and restricted cash at end of period | 518.7 | 1,188.6 |
Cash paid during the period for: | ||
Interest | 77.3 | 62.5 |
Income taxes paid, net | 2.1 | 1.5 |
Schedule of non-cash activities: | ||
Investment in NCM | 15.1 | |
Construction payables at period end | 26.8 | 27.7 |
Other third-party AMC Preferred Equity Units issuance costs payable | 3.8 | |
Extinguishment of Second Lien Notes due 2026 in exchange for share issuance | 118.6 | |
First Lien Notes due 2029 | ||
Cash flows from financing activities: | ||
Proceeds from issuance of notes | 950 | |
First Lien Notes due 2025 | ||
Cash flows from financing activities: | ||
Principal payments of notes | (500) | |
Premium paid to extinguish notes | (34.5) | |
First Lien Notes due 2026 | ||
Cash flows from financing activities: | ||
Principal payments of notes | (300) | |
Premium paid to extinguish notes | (25.6) | |
First Lien Toggle Notes due 2026 | ||
Cash flows from financing activities: | ||
Principal payments of notes | (73.5) | |
Premium paid to extinguish notes | (14.6) | |
Second Lien Notes due 2026 | ||
Cash flows from financing activities: | ||
Repurchase of Senior Subordinated Debt | (54.8) | |
5.875% Senior Subordinated Notes due 2026 | ||
Cash flows from financing activities: | ||
Repurchase of Senior Subordinated Debt | (1.7) | |
Hycroft | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Unrealized loss (gain) on investments Hycroft | $ 4.6 | $ (63.9) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1—BASIS OF PRESENTATION AMC Entertainment Holdings, Inc. (“Holdings”), through its direct and indirect subsidiaries, including American Multi-Cinema, Inc. and its subsidiaries, (collectively with Holdings, unless the context otherwise requires, the “Company” or “AMC”), is principally involved in the theatrical exhibition business and owns, operates or has interests in theatres located in the United States and Europe. Liquidity. The Company’s current cash burn rates are not sustainable long-term. In order to achieve net positive operating cash flows and long-term profitability, the Company believes that operating revenues will need to increase significantly to levels in line with pre-COVID operating revenues. Until such time as the Company is able to achieve positive operating cash flow, it is difficult to estimate the Company’s liquidity requirements, future cash burn rates, future operating revenues, and attendance levels. Depending on the Company’s assumptions regarding the timing and ability to achieve significantly increased levels of operating revenue, the estimates of amounts of required liquidity vary significantly. There can be no assurance that the operating revenues, attendance levels, and other assumptions used to estimate our liquidity requirements and future cash burn rates will be correct, and our ability to be predictive is uncertain due to limited ability to predict studio film release dates, the overall production and theatrical release levels and success of individual titles. Further, there can be no assurances that the Company will be successful in generating the additional liquidity necessary to meet the Company’s obligations beyond twelve months from the issuance of these financial statements on terms acceptable to the Company or at all. The Company may, at any time and from time to time, seek to retire or purchase its outstanding debt through cash purchases and/or exchanges for equity (including AMC Preferred Equity Units) or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will be upon such terms and at such prices as it may determine, and will depend on prevailing market conditions, its liquidity requirements, contractual restrictions and other factors. The amounts involved may be material and to the extent equity is used, dilutive. On December 22, 2022, the Company entered into a forward purchase agreement (the “Forward Purchase Agreement”) with Antara Capital LP (“Antara”) pursuant to which the Company agreed to (i) sell to Antara 106,595,106 AMC Preferred Equity Units for an aggregate purchase price of $75.1 million and (ii) simultaneously purchase from Antara $100.0 million aggregate principal amount of the Company’s 10%/12% Cash/PIK Toggle Second Lien Notes due 2026 in exchange for 91,026,191 AMC Preferred Equity Units. On February 7, 2023, the Company issued 197,621,297 AMC Preferred Equity Units to Antara in exchange for $75.1 million in cash and $100.0 million aggregate principal amount of the Company’s 10%/12% Cash/PIK Toggle Second Lien Notes due 2026. The Company recorded $193.7 million to stockholders’ deficit as a result of the transaction. The Company paid $1.4 million of accrued interest in cash upon exchange of the notes. See Note 7—Stockholders’ Equity for more information. During the three months ended March 31, 2023 the Company raised gross proceeds of approximately $80.3 million and paid fees to a sales agent and incurred other third-party issuance costs of approximately $2.0 million and $7.8 million, respectively, through its at-the-market offering of approximately 49.3 million shares of its AMC Preferred Equity Units. The Company paid $6.8 million of other third-party issuance costs during the three months ended March 31, 2023. See Note 7—Stockholders’ Equity and Note 13—Subsequent Events for further information regarding at-the-market offerings. The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including related party transactions with Antara, which became a related party on February 7, 2023. See Note 6—Corporate Borrowings and Finance Lease Liabilities for more information. Aggregate Principal Reacquisition Gain on Accrued Interest (In millions) Repurchased Cost Extinguishment Paid Related party transactions: Second Lien Notes due 2026 $ 41.9 $ 24.4 $ 25.3 $ 0.7 5.875% Senior Subordinated Notes due 2026 4.1 1.7 2.3 0.1 Total related party transactions 46.0 26.1 27.6 0.8 Non-related party transactions: Second Lien Notes due 2026 57.5 30.4 37.5 1.1 Total non-related party transactions 57.5 30.4 37.5 1.1 Total debt repurchases $ 103.5 $ 56.5 $ 65.1 $ 1.9 Use of Estimates. Principles of Consolidation. Cash and Cash Equivalents. Restricted Cash. Period Ended (In millions) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 495.6 $ 631.5 Restricted cash 23.1 22.9 Total cash and cash equivalents and restricted cash in the statement of cash flows $ 518.7 $ 654.4 Accumulated Other Comprehensive Loss. Foreign (In millions) Currency Pension Benefits Total Balance December 31, 2022 $ (78.8) $ 1.5 $ (77.3) Other comprehensive loss (7.2) (0.1) (7.3) Balance March 31, 2023 $ (86.0) $ 1.4 $ (84.6) Accumulated Depreciation and Amortization. Other Expense. Three Months Ended (In millions) March 31, 2023 March 31, 2022 Decreases related to contingent lease guarantees $ — $ (0.1) Governmental assistance due to COVID-19 - International markets — (2.3) Governmental assistance due to COVID-19 - U.S. markets — (1.1) Foreign currency transaction (gains) losses (8.7) 4.8 Non-operating components of net periodic benefit income 0.4 — Gain on extinguishment - Senior Subordinated Notes due 2026 (2.3) — Loss on extinguishment - First Lien Notes due 2025 — 47.7 Loss on extinguishment - First Lien Notes due 2026 — 54.4 Loss on extinguishment - First Lien Toggle Notes due 2026 — 32.9 Gain on extinguishment - Second Lien Notes due 2026 (62.8) — Derivative stockholder settlement (14.0) — Shareholder litigation contingency 126.6 — Total other expense $ 39.2 $ 136.3 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
LEASES | |
LEASES | NOTE 2—LEASES The Company leases theatres and equipment under operating and finance leases. The Company typically does not believe that exercise of the renewal options is reasonably certain at the lease commencement and, therefore, considers the initial base term as the lease term. Lease terms vary but generally the leases provide for fixed and escalating rentals, contingent escalating rentals based on the Consumer Price Index and other indexes not to exceed certain specified amounts and variable rentals based on a percentage of revenues. The Company often receives contributions from landlords for renovations at existing locations. The Company records the amounts received from landlords as an adjustment to the right-of-use asset and amortizes the balance as a reduction to rent expense over the base term of the lease agreement. Equipment leases primarily consist of sight and sound and food and beverage equipment. The Company received rent concessions from lessors that aided in mitigating the economic effects of COVID-19 during the pandemic. These concessions primarily consisted of rent abatements and the deferral of rent payments. As a result, deferred lease amounts were approximately $123.6 million as of March 31, 2023. In instances where there were no substantive changes to the lease terms, i.e., modifications that resulted in total payments of the modified lease being substantially the same or less than the total payments of the existing lease, the Company elected the relief as provided by the FASB staff related to the accounting for certain lease concessions. The Company elected not to account for these concessions as a lease modification, and therefore the Company has remeasured the related lease liability and right-of-use asset but did not reassess the lease classification or change the discount rate to the current rate in effect upon the remeasurement. The deferred payment amounts have been recorded in the Company’s lease liabilities to reflect the change in the timing of payments. Those leases that did not meet the criteria for treatment under the FASB relief were evaluated as lease modifications. The deferred payment amounts included in accounts payable for contractual rent amounts due and not paid are reflected in accounts payable on the condensed consolidated balance sheets and in the condensed consolidated statements of cash flows as part of the change in accounts payable. In addition, the Company included deferred lease payments in operating lease right-of-use assets as a result of lease remeasurements. A summary of deferred payment amounts related to rent obligations for which payments were deferred to future periods is provided below: As of As of December 31, Decrease March 31, (In millions) 2022 in deferred amounts 2023 Fixed operating lease deferred amounts $ 150.3 $ (32.5) $ 117.8 Finance lease deferred amounts 0.9 (0.3) 0.6 Variable lease deferred amounts 6.0 (0.8) 5.2 Total deferred lease amounts $ 157.2 $ (33.6) $ 123.6 (1) During the three months ended March 31, 2023, the decrease in fixed operating lease deferred amounts includes $5.7 million of rent payments that are included in change in accounts payable and $26.8 million included in deferred rent and other non-cash rent in the condensed consolidated statement of cash flows. The following table reflects the lease costs for the periods presented: Three Months Ended March 31, March 31, (In millions) Consolidated Statements of Operations 2023 2022 Operating lease cost Theatre properties Rent $ 184.2 $ 202.5 Theatre properties Operating expense 0.3 1.2 Equipment Operating expense 3.1 2.8 Office and other General and administrative: other 1.3 1.4 Finance lease cost Amortization of finance lease assets Depreciation and amortization 0.5 0.7 Interest expense on lease liabilities Finance lease obligations 0.9 1.2 Variable lease cost Theatre properties Rent 21.5 20.7 Equipment Operating expense 13.3 12.6 Total lease cost $ 225.1 $ 243.1 Three Months Ended March 31, March 31, (In millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in finance leases $ (0.8) $ (1.0) Operating cash flows used in operating leases (242.8) (266.4) Financing cash flows used in finance leases (1.6) (2.5) Landlord contributions: Operating cashflows provided by operating leases 6.4 0.6 Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for new operating lease liabilities 16.0 111.8 (1) Includes lease extensions and option exercises. As of March 31, 2023 Weighted Average Weighted Average Remaining Discount Lease Term and Discount Rate Lease Term (years) Rate Operating leases 9.2 10.1% Finance leases 13.6 6.4% Minimum annual payments, including deferred lease payments less contractual rent amounts due and not paid that were recorded in accounts payable, that are recorded as operating and finance lease liabilities and the net present value thereof as of March 31, 2023 are as follows: Operating Lease Financing Lease (In millions) Payments (2) Payments (2) Nine months ending December 31, 2023 $ 729.6 $ 6.8 2024 874.7 8.3 2025 825.6 7.6 2026 761.3 7.5 2027 697.8 7.5 2028 608.8 7.1 Thereafter 2,733.9 45.2 Total lease payments 7,231.7 90.0 Less imputed interest (2,513.0) (31.5) Total operating and finance lease liabilities, respectively $ 4,718.7 $ 58.5 (1) The minimum annual payments table above does not include contractual cash rent amounts that were due and not paid, which are recorded in accounts payable as shown below, including estimated repayment dates: Accounts Payable (In millions) Lease Payments Nine months ended December 31, 2023 $ 15.4 2024 1.0 2025 0.8 2026 0.7 2027 0.3 2028 0.1 Thereafter 0.1 Total deferred lease amounts recorded in accounts payable $ 18.4 (2) The minimum annual payments table above includes deferred undiscounted cash rent amounts that were due and not paid related to operating and finance leases, as shown below: Operating Lease Financing Lease (In millions) Payments Payments Nine months ended December 31, 2023 $ 54.9 $ 0.3 2024 15.8 — 2025 5.7 — 2026 4.2 — 2027 3.4 — 2028 3.2 — Thereafter 17.7 — Total deferred lease amounts $ 104.9 $ 0.3 As of March 31, 2023, the Company had signed additional operating lease agreements for three theatres that have not yet commenced with minimum annual payments of approximately $79.5 million, which are expected to commence between years 2023 and 2024 and carry lease terms ranging from 10 to 20 years. The timing of lease commencement is dependent on the landlord providing the Company with control and access to the related facility. During the three months ended March 31, 2023, the Company received a $13.0 million buyout incentive from a landlord which provided the landlord the right to terminate the lease of one theatre. The incentive was treated as a reduction to rent expense in the Company’s condensed consolidated statement of operations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2023 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 3—REVENUE RECOGNITION Disaggregation of Revenue. Three Months Ended (In millions) March 31, 2023 March 31, 2022 Major revenue types Admissions $ 534.1 $ 443.8 Food and beverage 328.7 252.5 Other theatre: Screen advertising 30.9 28.9 Other 60.7 60.5 Other theatre 91.6 89.4 Total revenues $ 954.4 $ 785.7 Three Months Ended (In millions) March 31, 2023 March 31, 2022 Timing of revenue recognition Products and services transferred at a point in time $ 871.8 $ 708.1 Products and services transferred over time 82.6 77.6 Total revenues $ 954.4 $ 785.7 (1) Amounts primarily include subscription and advertising revenues. The following tables provide the balances of receivables and deferred revenue income: (In millions) March 31, 2023 December 31, 2022 Current assets Receivables related to contracts with customers $ 40.6 $ 92.3 Miscellaneous receivables 65.1 74.3 Receivables, net $ 105.7 $ 166.6 (In millions) March 31, 2023 December 31, 2022 Current liabilities Deferred revenue related to contracts with customers $ 387.5 $ 398.8 Miscellaneous deferred income 4.2 3.9 Deferred revenue and income $ 391.7 $ 402.7 The significant changes in contract liabilities with customers included in deferred revenues and income are as follows: Deferred Revenues Related to Contracts (In millions) with Customers Balance December 31, 2022 $ 398.8 Cash received in advance 78.5 Customer loyalty rewards accumulated, net of expirations: Admission revenues 3.6 Food and beverage 7.5 Other theatre (0.2) Reclassification to revenue as the result of performance obligations satisfied: Admission revenues (68.7) Food and beverage (16.3) Other theatre (16.1) Foreign currency translation adjustment 0.4 Balance March 31, 2023 $ 387.5 (1) Includes movie tickets, food and beverage, gift cards, exchange tickets, and AMC Stubs® loyalty membership fees. (2) Amount of rewards accumulated, net of expirations, that are attributed to AMC Stubs® and other loyalty programs. (3) Amount of rewards redeemed that are attributed to gift cards, exchange tickets, movie tickets, AMC Stubs® loyalty programs and other loyalty programs. (4) Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, AMC Stubs® loyalty membership fees and other loyalty programs. The significant changes to contract liabilities included in the exhibitor services agreement in the condensed consolidated balance sheets, are as follows: Exhibitor Services (In millions) Agreement (1) Balance December 31, 2022 $ 505.8 Reclassification, net of adjustments, for portion of the beginning balance to other theatre revenue, as the result of performance obligations satisfied (3.3) Balance March 31, 2023 $ 502.5 (1) Represents the carrying amount of the National CineMedia, LLC (“NCM”) common units that were previously received under the annual Common Unit Adjustment (“CUA”). The deferred revenues are being amortized to other theatre revenues over the remainder of the 30-year term of the Exhibitor Service Agreement (“ESA”) ending in February 2037. Gift Cards and Exchange Tickets. Loyalty Programs. The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 31, 2023 | |
GOODWILL. | |
GOODWILL | NOTE 4—GOODWILL U.S. Markets International Markets Consolidated Goodwill (In millions) Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Balance December 31, 2022 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,521.8 $ (976.3) $ 545.5 $ 4,594.4 $ (2,252.4) $ 2,342.0 Currency translation adjustment — — — 23.1 (22.4) 0.7 23.1 (22.4) 0.7 Balance March 31, 2023 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,544.9 $ (998.7) $ 546.2 $ 4,617.5 $ (2,274.8) $ 2,342.7 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS | |
INVESTMENTS | NOTE 5—INVESTMENTS Investments in non-consolidated affiliates and certain other investments accounted for under the equity method generally include all entities in which the Company or its subsidiaries have significant influence, but not more than 50% voting control, and are recorded in the condensed consolidated balance sheets in other long-term assets. On December 30, 2022, the Company entered into an agreement to sell its 10.0% investment in Saudi Cinema Company, LLC for SAR 112.5 million ($30.0) million, and on January 24, 2023, the Saudi Ministry of Commerce recorded the sale of equity and the Company received the proceeds on January 25, 2023. The Company recorded a gain on the sale of $15.5 million in investment income during the three months ended March 31, 2023. Investments in non-consolidated affiliates as of March 31, 2023 include interests in Digital Cinema Distribution Coalition, LLC (“DCDC”) of 14.6%, AC JV, LLC (“AC JV”), owner of Fathom Events, of 32.0%, SV Holdco LLC (“SV Holdco”), owner of Screenvision, of 18.4% and Digital Cinema Media Ltd. (“DCM”) of 50.0%. The Company also has partnership interests in three U.S. motion picture theatres (“Theatre Partnerships”) and approximately 50.0% interests in 58 theatres in Europe. Indebtedness held by equity method investees is non-recourse to the Company. During the three months ended March 31, 2023 and March 31, 2022, the Company recorded equity in (earnings) loss of non-consolidated entities of $(1.4) million and $5.1 million, respectively. Related Party Transactions with Equity Method Investees. Investment in Hycroft On March 14, 2022, the Company purchased 23.4 million units of Hycroft Mining Holding Corporation (NASDAQ: HYMC) (“Hycroft”), for $27.9 million, with each unit consisting of one common share of Hycroft and one common share purchase warrant. The units were priced at $1.193 per unit. Each warrant is exercisable for one common share of Hycroft at a price of $1.068 per share over a 5-year — |
CORPORATE BORROWINGS AND FINANC
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | NOTE 6—CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES (In millions) March 31, 2023 December 31, 2022 First Lien Secured Debt: Senior Secured Credit Facility-Term Loan due 2026 (7.684% as of March 31, 2023 and 7.274% as of December 31, 2022) $ 1,920.0 $ 1,925.0 12.75% Odeon Senior Secured Notes due 2027 400.0 400.0 7.5% First Lien Notes due 2029 950.0 950.0 Second Lien Secured Debt: 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 1,190.4 1,389.8 Subordinated Debt: 6.375% Senior Subordinated Notes due 2024 (£4.0 million par value as of March 31, 2023) 4.9 4.8 5.75% Senior Subordinated Notes due 2025 98.3 98.3 5.875% Senior Subordinated Notes due 2026 51.5 55.6 6.125% Senior Subordinated Notes due 2027 125.5 125.5 Total principal amount of corporate borrowings $ 4,740.6 $ 4,949.0 Finance lease liabilities 58.5 58.8 Deferred financing costs (36.3) (37.9) Net premium 177.7 229.7 Total carrying value of corporate borrowings and finance lease liabilities $ 4,940.5 $ 5,199.6 Less: Current maturities corporate borrowings (20.0) (20.0) Current maturities finance lease obligations (6.5) (5.5) Total noncurrent carrying value of corporate borrowings and finance lease liabilities $ 4,914.0 $ 5,174.1 (1) The following table provides the net premium (discount) amounts of corporate borrowings: March 31, December 31, (In millions) 2023 2022 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 $ 212.0 $ 265.5 Senior Secured Credit Facility-Term Loan due 2026 (4.4) (4.8) 12.75% Odeon Senior Secured Notes due 2027 (30.0) (31.1) 6.375% Senior Subordinated Notes due 2024 0.1 0.1 $ 177.7 $ 229.7 The following table provides the principal payments required and maturities of corporate borrowing as of March 31, 2023: Principal Amount of Corporate (In millions) Borrowings Nine months ended December 31, 2023 $ 15.0 2024 24.9 2025 118.3 2026 3,106.9 2027 525.5 2028 — Thereafter 950.0 Total $ 4,740.6 Debt Repurchases The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including the related party transactions with Antara, which became a related party on February 7, 2023: Aggregate Principal Reacquisition Gain on Accrued Interest (In millions) Repurchased Cost Extinguishment Paid Related party transactions: Second Lien Notes due 2026 $ 41.9 $ 24.4 $ 25.3 $ 0.7 5.875% Senior Subordinated Notes due 2026 4.1 1.7 2.3 0.1 Total related party transactions 46.0 26.1 27.6 0.8 Non-related party transactions: Second Lien Notes due 2026 57.5 30.4 37.5 1.1 Total non-related party transactions 57.5 30.4 37.5 1.1 Total debt repurchases $ 103.5 $ 56.5 $ 65.1 $ 1.9 Financial Covenants The Company currently estimates that its existing cash and cash equivalents will be sufficient to comply with the minimum liquidity covenant requirement under its Senior Secured Revolving Credit Facility, currently and through the next twelve months. The Company entered the Ninth Amendment to Credit Agreement pursuant to which the requisite revolving lenders party thereto agreed to extend the fixed date for the termination of the suspension period for the financial covenant (the secured leverage ratio) applicable to the Senior Secured Revolving Credit Facility from March 31, 2021 to March 31, 2022, which was further extended by the Eleventh Amendment to Credit Agreement from March 31, 2022 to March 31, 2023 and further extended by the Twelfth Amendment to Credit Agreement from March 31, 2023 to March 31, 2024, in each case, as described, and on the terms and conditions specified, therein. The Company is currently subject to a minimum liquidity requirement of $100 million as a condition to the Extended Covenant Suspension Period. The current maturity date of the Senior Secured Revolving Credit Facility is April 22, 2024; since the financial covenant applicable to the Senior Secured Revolving Credit Facility is tested as of the last day of any fiscal quarter for which financial statements have been (or were required to have been) delivered, the financial covenant has been effectively suspended through maturity of the Senior Secured Revolving Credit Facility. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 7—STOCKHOLDERS’ EQUITY AMC Preferred Equity Units On August 4, 2022, the Company announced that its Board of Directors declared a special dividend of one AMC Preferred Equity Unit for each share of Class A common stock outstanding at the close of business on August 15, 2022, the record date. The dividend was paid at the close of business on August 19, 2022 to investors who held Class A common stock as of August 22, 2022, the ex-dividend date. Each AMC Preferred Equity Unit is a depositary share and represents an interest in one Share Issuances Shareholder Litigation Two putative stockholder class actions have been filed that assert a breach of fiduciary duty against certain of the Company’s directors and a claim for breach of 8 Del. C Stock-Based Compensation The following table presents the stock-based compensation expense recorded within general and administrative: other: Three Months Ended March 31, March 31, (In millions) 2023 2022 Equity classified awards: Special awards expense $ 20.2 $ — Board of director stock award expense 0.9 0.8 Restricted stock unit expense 3.0 2.8 Performance stock unit expense 1.7 2.9 Total equity classified awards: 25.8 6.5 Liability classified awards: Restricted and performance stock unit expense 0.1 — Total liability classified awards: 0.1 — Total stock-based compensation expense $ 25.9 $ 6.5 As of March 31, 2023, the estimated remaining unrecognized compensation cost related to stock-based compensation grants was approximately $37.2 million, which reflects assumptions related to attainment of performance targets based on the scales as described below. The weighted average period over which this remaining compensation expense is expected to be recognized is approximately 1.2 years. Plan Amendment due to stock split The 2013 Plan contemplates equitable adjustments for certain transactions such as a stock split. On August 19, 2022 the Compensation Committee approved an adjustment to the 2013 Equity Incentive Plan to entitle each participant one AMC Preferred Equity Unit and one share of Common Stock for each RSU or PSU that vests. The Company determined that this modification was a Type 1 (probable-to-probable) modification that did not increase the fair value of the award and therefore did not require additional stock-based compensation expense to be recognized. References made to share, per share, or common share amounts have been retroactively adjusted to reflect the effects of the stock split. Special Awards On February 23, 2023, AMC’s Board of Directors approved special awards in lieu of vesting of the 2022 PSU awards. The special awards were accounted for as modification to the 2022 PSU awards which lowered the Adjusted EBITDA and free cash flow performance targets such that 200% vesting was achieved for both tranches. This modification resulted in the immediate additional vesting of 2,389,589 Common Stock 2022 PSUs and 2,389,589 AMC Preferred Equity Unit 2022 PSUs. This was treated as a Type 3 modification (improbable-to-probable) which requires the Company to recognize additional stock compensation expense based on the modification date fair values of the Common Stock PSUs and AMC Preferred Equity Units PSUs of $6.23 and $2.22, respectively. During the three months ended March 31, 2023, the Company recognized $20.2 million of additional stock compensation expense. Awards Granted in 2023 During the three months ended March 31, 2023, AMC’s Board of Directors approved awards of stock, restricted stock units (“RSUs”), and performance stock units (“PSUs”) to certain of the Company’s employees and directors under the 2013 Equity Incentive Plan. The grant date fair value of these equity classified awards was based on the closing price of AMC’s Class A common stock and AMC Preferred Equity Units of $6.23 and $2.22, respectively. AMC’s Board of Directors also granted awards to non-section 16 officers that are expected to be settled in cash. Participants receiving cash settlement shall receive an amount of cash equal to the closing price of an AMC Preferred Equity Unit multiplied by the number of underlying cash based RSUs and PSUs awarded. These awards have been classified as liabilities and are included within accrued expenses and other liabilities in the condensed consolidated balance sheets. The vesting requirements and vesting periods are identical to the equity classified awards described below. The Company recognizes expense related to these awards based on the fair value of the AMC Preferred Equity Units, giving effect to the portion of services rendered during the requisite services period. As of March 31, 2023 there were 1,723,830 nonvested underlying AMC Preferred Equity Unit RSUs and PSUs related to awards granted to non-section 16 officers. There are 1,149,186 nonvested underlying AMC Preferred Equity Unit RSUs and PSUs (2023 Tranche Year) that are currently classified as liabilities and 574,644 nonvested underlying AMC Preferred Equity Unit PSUs (2024 & 2025 Tranche Year) which have not been granted for accounting purposes as the performance targets for the 2024 and 2025 PSU Tranche Years have yet to be established. Each RSU and PSU held by a participant as of a dividend record date is entitled to a dividend equivalent equal to the amount paid with respect to one share of Common Stock or one AMC Preferred Equity Unit underlying the unit. Any such accrued dividend equivalents are paid to the holder only upon vesting of the units. Each unit represents the right to receive one share of Common Stock or one AMC Preferred Equity Unit at a future date. The 2023 award agreements generally had the following features: ● Stock Award Agreement: During the three months ended March 31, 2023, the Company granted awards of 85,552 fully vested shares of Common Stock and 153,696 AMC Preferred Equity Units to its independent members of AMC’s Board of Directors with a grant date fair value of $0.9 million. ● Restricted Stock Unit Award Agreement: During the three months ended March 31, 2023, the Company granted RSU awards of 2,827,979 to certain members of management with a grant date fair value of $11.6 million. The Company records stock-based compensation expense on a straight-line recognition method over the requisite vesting period. The RSUs vest over three years , with one-third vesting each year. These RSUs will be settled within 30 days of vesting. ● Performance Stock Unit Award Agreement: During the three months ended March 31, 2023, total PSUs of 942,613 were awarded (“2023 PSU award”) to certain members of management and executive officers, with the total PSUs divided into three separate year tranches, with each tranche allocated to a fiscal year within the performance period (“Tranche Year”). The PSUs within each Tranche Year are further divided between two performance targets; the Adjusted EBITDA performance target and free cash flow performance target. The 2023 PSU awards will vest based on achieving 80% to 120% of the performance targets, with the corresponding vested unit amount ranging from 50% to 200% . If the performance targets are met at 100% , the 2023 PSU awards will vest at 942,613 units in the aggregate. No PSUs will vest for each Tranche Year if the Company does not achieve 80% of the Tranche Year’s Adjusted EBITDA and free cash flow targets. The Compensation Committee establishes the annual performance targets at the beginning of each year. Therefore, the grant date (and fair value measurement date) for each Tranche Year is the date at the beginning of each year when a mutual understanding of the key terms and conditions are reached per ASC 718, Compensation – Stock compensation. The 2023 PSU award grant date fair value for the 2023 Tranche Year award of 942,613 units was $3.9 million, the 2022 PSU award grant date fair value for the 2023 Tranche Year award of 461,016 units was $1.9 million, and the 2021 PSU award grant date fair value for the 2023 Tranche Year Award of 1,601,522 units was $6.8 million, measured using performance targets at 100%. The following table represents the equity classified nonvested RSU and PSU activity for the three months ended March 31, 2023: Weighted Weighted Class A Average AMC Preferred Average Common Stock Grant Date Equity Unit Grant Date RSUs and PSUs Fair Value RSUs and PSUs Fair Value Nonvested at January 1, 2023 3,129,241 $ 5.91 3,129,241 $ 5.91 Granted 2,790,514 6.23 3,042,616 2.22 Granted - Special Award 2,389,589 6.23 2,389,589 2.22 Vested (983,107) 5.90 (1,246,290) 5.62 Vested - Special Award (1,284,818) 6.23 (1,294,464) 2.22 Forfeited (29,317) 5.94 (29,317) 4.11 Cancelled (884,452) 5.80 (621,269) 6.31 Cancelled - Special Award (1,104,771) 6.23 (1,095,125) 2.22 Nonvested at March 31, 2023 4,022,879 $ 6.16 4,274,981 $ 3.32 Tranche Years 2024 and 2025 awarded under the 2023 PSU award and Tranche Year 2024 awarded under the 2022 PSU award with grant date fair values to be determined in years 2024 and 2025, respectively 1,107,804 1,233,800 Total Nonvested at March 31, 2023 5,130,683 5,508,781 (1) The number of PSU shares granted under the Tranche Year 2023 assumes the Company will attain a performance target at 100% for the Adjusted EBITDA target and 100% for the free cash flow target. (2) Represents vested RSUs and PSUs surrendered in lieu of taxes and cancelled awards returned to the 2013 Equity Incentive Plan. As a result, the Company paid taxes for restricted unit withholdings of approximately $13.1 million during the three months ended March 31, 2023. Condensed Consolidated Statements of Stockholders’ Deficit For the Three Months Ended March 31, 2023 Preferred Stock Series A Convertible Accumulated Class A Voting Participating Depositary Shares of Additional Other Total Common Stock Preferred Stock AMC Preferred Paid-in Comprehensive Accumulated Stockholders’ (In millions, except share and per share data) Shares Amount Shares Equity Units Amount Capital Loss Deficit Equity (Deficit) Balances December 31, 2022 516,838,912 $ 5.2 7,245,872 724,587,058 $ 0.1 $ 5,045.1 $ (77.3) $ (7,597.6) $ (2,624.5) Net loss — — — — — — — (235.5) (235.5) Other comprehensive loss — — — — — — (7.3) — (7.3) AMC Preferred Equity Units issuance — — 492,880 49,287,989 — 70.5 — — 70.5 Antara Forward Purchase Agreement (2) — — 1,976,213 197,621,297 — 193.7 — — 193.7 Taxes paid for restricted unit withholdings — — — — — (13.1) — — (13.1) Stock-based compensation (1) 2,353,477 — 26,944 2,694,450 — 25.9 — — 25.9 Balances March 31, 2023 519,192,389 $ 5.2 9,741,909 974,190,794 $ 0.1 $ 5,322.1 $ (84.6) $ (7,833.1) $ (2,590.3) (1) Includes 85,552 Class A common stock shares and 153,696 AMC Preferred Equity Units awarded to the Board of Directors, 2,267,925 vested Class A common stock RSUs and PSUs, and 2,540,754 AMC Preferred Equity Units RSUs and PSUs. (2) Includes $75.1 million of cash proceeds and $118.6 million carrying value of the debt exchanged for AMC Preferred Equity Units. Condensed Consolidated Statements of Stockholders’ Deficit For the Three Months Ended March 31, 2022 Preferred Stock Series A Convertible Accumulated Class A Participating Depositary Shares of Additional Other Total AMC Common Stock Preferred Stock AMC Preferred Paid-in Comprehensive Accumulated Stockholders’ (In millions, except share and per share data) Shares Amount Shares Equity Units Amount Capital Income (Loss) Deficit Equity (Deficit) Balances December 31, 2021 513,979,100 $ 5.1 5,139,791 513,979,100 $ 0.1 $ 4,857.4 $ (28.1) $ (6,624.0) $ (1,789.5) Net loss — — — — — — — (337.4) (337.4) Other comprehensive loss — — — — — — (5.8) — (5.8) Taxes paid for restricted unit withholdings — — — — — (52.2) — — (52.2) Stock-based compensation (1) 2,841,495 0.1 28,415 2,841,495 — 6.5 — — 6.6 Balances March 31, 2022 516,820,595 $ 5.2 5,168,206 516,820,595 $ 0.1 $ 4,811.7 $ (33.9) $ (6,961.4) $ (2,178.3) (1) Includes 41,650 Class A common stock shares and 41,650 AMC Preferred Equity Units awarded to Board of Directors, 2,799,845 vested Class A common stock RSUs and PSUs, and 2,799,845 vested AMC Preferred Equity Units RSUs and PSUs. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 8—INCOME TAXES The Company’s worldwide effective income tax rate is based on actual income (loss), statutory rates, valuation allowances against deferred tax assets and tax planning opportunities available in the various jurisdictions in which it operates. The Company is using a discrete income tax calculation for the three months ended March 31, 2023 due to the lingering effects of the COVID-19 pandemic on the industry. Historically, for interim financial reporting, the Company estimated the worldwide annual income tax rate based on projected taxable income (loss) for the full year and recorded a quarterly income tax provision or benefit in accordance with the anticipated annual rate, adjusted for discrete items, if any. The Company will return to the historic approach of computing quarterly tax expense based on an annual effective rate in the future interim period when more reliable estimates of annual income become available. The Company recognizes income tax-related interest expense and penalties as income tax expense and general and administrative expense, respectively. The Company evaluates its deferred tax assets each period to determine if a valuation allowance is required based on whether it is “more likely than not” that some portion of the deferred tax assets would not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods on a federal, state, and foreign jurisdiction basis. The Company conducts its evaluation by considering all available positive and negative evidence, including historical operating results, forecasts of future profitability, the duration of statutory carryforward periods, and the outlooks for the U.S. motion picture and broader economy, among others. A valuation allowance is recorded against the Company’s U.S. deferred tax assets and most of the Company’s international deferred tax assets as the Company has determined the realization of these assets does not meet the more likely than not criteria. The effective tax rate for the three months ended March 31, 2023 reflects the impact of these valuation allowances against U.S. and international deferred tax assets generated during the three-month period. The actual effective rate for the three months ended March 31, 2023 was (0.8)%. The Company’s consolidated tax rate for the three months ended March 31, 2023 differs from the U.S. statutory tax rate primarily due to the valuation allowances in U.S. and foreign jurisdictions, foreign tax rate differences, federal and state tax credits, permanent differences and other discrete items. At March 31, 2023 and December 31, 2022, the Company has recorded net deferred tax liabilities of $32.7 million and $32.1 million, respectively. Utilization of the Company’s net operating loss carryforwards, disallowed business interest carryforwards and other tax attributes became subject to the Section 382 ownership change limitation due to changes in the Company’s stock ownership on January 27, 2021. The Company does not believe, however, that tax attributes generated prior to this event are significantly impacted by Section 382. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9—FAIR VALUE MEASUREMENTS Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the entity transacts business. The inputs used to develop these fair value measurements are established in a hierarchy, which ranks the quality and reliability of the information used to determine the fair values. The fair value classification is based on levels of inputs. Assets and liabilities that are carried at fair value are classified and disclosed in one of the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements. Fair Value Measurements at March 31, 2023 Using Significant Total Carrying Quoted prices in Significant other unobservable Value at active market observable inputs inputs (In millions) March 31, 2023 (Level 1) (Level 2) (Level 3) Other long-term assets: Investment in Hycroft Mining Holding Corporation warrants $ 6.9 $ — $ — $ 6.9 Marketable equity securities: Investment in Hycroft Mining Holding Corporation 10.1 10.1 — — Total assets at fair value $ 17.0 $ 10.1 $ — $ 6.9 Valuation Techniques. — Other Fair Value Measurement Disclosures. Fair Value Measurements at March 31, 2023 Using Significant other Significant Total Carrying Quoted prices in observable unobservable Value at active market inputs inputs (In millions) March 31, 2023 (Level 1) (Level 2) (Level 3) Current maturities of corporate borrowings $ 20.0 $ — $ 14.6 $ — Corporate borrowings 4,862.0 — 3,266.3 — Valuation Technique. — The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Mar. 31, 2023 | |
OPERATING SEGMENTS. | |
OPERATING SEGMENTS | NOTE 10—OPERATING SEGMENTS evaluate performance and allocate its resources is Adjusted EBITDA, as defined in the reconciliation table below. The Company does not report asset information by segment because that information is not used to evaluate the performance of or allocate resources between segments. Three Months Ended Revenues (In millions) March 31, 2023 March 31, 2022 U.S. markets $ 704.5 $ 563.1 International markets 249.9 222.6 Total revenues $ 954.4 $ 785.7 Three Months Ended Adjusted EBITDA (In millions) March 31, 2023 March 31, 2022 U.S. markets $ 10.9 $ (43.4) International markets (3.8) (18.3) Total Adjusted EBITDA $ 7.1 $ (61.7) (1) The Company presents Adjusted EBITDA as a supplemental measure of its performance. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets and any cash distributions of earnings from its other equity method investees. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is broadly consistent with how Adjusted EBITDA is defined in the Company’s debt indentures. Three Months Ended Capital Expenditures (In millions) March 31, 2023 March 31, 2022 U.S. markets $ 34.6 $ 21.1 International markets 12.8 13.7 Total capital expenditures $ 47.4 $ 34.8 As of As of Long-term assets, net (In millions) March 31, 2023 December 31, 2022 U.S. markets $ 6,026.1 $ 6,135.9 International markets 2,081.0 2,097.6 Total long-term assets $ 8,107.1 $ 8,233.5 (1) Long-term assets are comprised of property, net, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets. Three Months Ended (In millions) March 31, 2023 March 31, 2022 Net loss $ (235.5) $ (337.4) Plus: Income tax provision 1.9 0.1 Interest expense 101.1 92.4 Depreciation and amortization 93.6 98.7 Certain operating expense 1.1 2.3 Equity in (earnings) loss of non-consolidated entities (1.4) 5.1 Cash distributions from non-consolidated entities — 0.7 Attributable EBITDA 0.5 0.2 Investment income (13.5) (63.4) Other expense 42.8 139.8 Other non-cash rent benefit (9.6) (7.1) General and administrative — unallocated: Merger, acquisition and other costs 0.2 0.4 Stock-based compensation expense 25.9 6.5 Adjusted EBITDA $ 7.1 $ (61.7) (1) 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, disposition of assets and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature or are non-operating in nature. (2) Includes U.S. non-theatre distributions from equity method investments and International non- theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to the Company’s operations. (3) Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of the Company’s equity in loss of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and the Company’s gift card and package ticket program. Three Months Ended (In millions) March 31, 2023 March 31, 2022 Equity in (earnings) loss of non-consolidated entities $ (1.4) $ 5.1 Less: Equity in (earnings) loss of non-consolidated entities excluding International theatre joint ventures (1.1) 0.3 Equity in earnings (loss) of International theatre joint ventures 0.3 (4.8) Income tax benefit (0.1) — Investment expense 0.1 — Impairment of long-lived assets — 4.2 Depreciation and amortization 0.2 0.8 Attributable EBITDA $ 0.5 $ 0.2 (4) Investment income during the three months ended March 31, 2023 primarily includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $2.3 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding Corporation of $2.3 million, a $(15.5) million gain on the sale of the Company’s investment in Saudi Cinema Company, LLC, and interest income of $(2.3) million. Investment income during the three months ended March 31, 2022 includes appreciation in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $28.8 million and appreciation in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding Corporation of $35.1 million. (5) Other expense during the three months ended March 31, 2023 includes a non-cash litigation contingency reserve charge of $116.6 million, partially offset by foreign currency transaction gains of $(8.7) million and gains on debt extinguishment of $(65.1) million. Other expense during the three months ended March 31, 2022 included loss on debt extinguishment of $135.0 million and foreign currency transaction losses of $4.8 million. (6) Reflects amortization expense for certain intangible assets reclassified from depreciation and amortization to rent expense due to the adoption of ASC 842, Leases and deferred rent benefit related to the impairment of right-of-use operating lease assets. (7) Merger, acquisition and other costs are excluded as they are non-operating in nature. (8) Non-cash or non-recurring expense included in general and administrative: other. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 11—COMMITMENTS AND CONTINGENCIES The Company, in the normal course of business, is a party to various ordinary course claims from vendors (including food and beverage suppliers and film distributors), landlords, competitors, and other legal proceedings. If management believes that a loss arising from these actions is probable and can reasonably be estimated, the Company records the amount of the loss or the minimum estimated liability when the loss is estimated using a range and no point is more probable than another. As additional information becomes available, any potential liability related to these actions is assessed and the estimates are revised, if necessary. Management believes that the ultimate outcome of such matters discussed below, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position or overall trends in results of operations. However, litigation and claims are subject to inherent uncertainties and unfavorable outcomes can occur. An unfavorable outcome might include monetary damages. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the results of operations in the period in which the outcome occurs or in future periods. On January 12, 2018 and January 19, 2018, two putative federal securities class actions, captioned Hawaii Structural Ironworkers Pension Trust Fund v. AMC Entertainment Holdings, Inc., et al., Case No. 1:18-cv-00299-AJN (the “Hawaii Action”), and Nichols v. AMC Entertainment Holdings, Inc., et al., Case No. 1:18-cv-00510-AJN (the “Nichols Action,” and together with the Hawaii Action, the “Actions”), respectively, were filed against the Company in the U.S. District Court for the Southern District of New York. The Actions, which named certain of the Company’s officers and directors and, in the case of the Hawaii Action, the underwriters of the Company’s February 8, 2017 secondary public offering, as defendants, asserted claims under Sections 11, 12(a)(2) and 15 of the Securities Act and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) with respect to alleged material misstatements and omissions in the registration statement for the secondary public offering and in certain other public disclosures. On May 30, 2018, the court consolidated the Actions. On January 22, 2019, defendants moved to dismiss the Second Amended Class Action Complaint. On September 23, 2019, the court granted the motion to dismiss in part and denied it in part. On March 2, 2020, plaintiffs moved to certify the purported class. On March 30, 2021, the court granted the motion to certify the class. On September 2, 2021, the parties reached an agreement in principle to resolve the Actions for $18.0 million. The Company agreed to the settlement and the payment of the settlement amount to eliminate the distraction, burden, expense, and uncertainty of further litigation. The Company and the other defendants continue to expressly deny any liability or wrongdoing with respect to the matters alleged in the Actions. On November 1, 2021, the parties to the Actions signed a stipulation of settlement, which memorialized the terms of the agreement in principle, and which the plaintiffs filed with the court. Also on November 1, 2021, plaintiffs filed a motion to preliminarily approve the settlement. On November 8, 2021, the court preliminarily approved the settlement, approved the form of notice to be disseminated to class members, and scheduled a final fairness hearing on the settlement for February 10, 2022. On February 14, 2022, the court issued a final judgment approving the settlement and dismissing the action. On May 21, 2018, a stockholder derivative complaint, captioned Gantulga v. Aron, et al. claims under Section 14(a) of the Exchange Act and for breaches of fiduciary duty and unjust enrichment based on allegations substantially similar to the Actions. On October 12, 2018, the parties filed a joint motion to transfer the action to the U.S. District Court for the Southern District of New York, which the court granted on October 15, 2018. When the action was transferred to the Southern District of New York, it was re-captioned Gantulga v. Aron, et al. On October 2, 2019, a stockholder derivative complaint, captioned Kenna v. Aron On March 20, 2020, a stockholder derivative complaint, captioned Manuel v. Aron, et al On April 7, 2020, a stockholder derivative complaint, captioned Dinkevich v. Aron, et al On September 23, 2021, a stockholder derivative complaint, captioned Lyon v. Aron, et al. On December 31, 2019, the Company received a stockholder litigation demand, requesting that the Board investigate the allegations in the Actions and pursue claims on the Company’s behalf based on those allegations. On May 5, 2020, the Board determined not to pursue the claims sought in the demand at this time. On July 15, 2020, the Company received a second stockholder litigation demand requesting substantially the same action as the stockholder demand it received on December 31, 2019. On September 23, 2020, the Board determined not to pursue the claims sought in the demand at this time. On April 22, 2019, a putative stockholder class and derivative complaint, captioned Lao v. Dalian Wanda Group Co., Ltd. consider whether to approve the proposed settlement. At the hearing, the court requested a supplemental notice to stockholders prior to approval. A second hearing regarding approval of the settlement was held on November 30, 2022. Following the hearing, also on November 30, 2022, the court issued an order and final judgment approving the settlement and dismissing the action. The order and final judgment included a fee and expense award to Plaintiff’s counsel in the amount of $3.4 million to be paid out of the Settlement Amount. On January 6, 2023, the remainder of the Settlement Amount of $14.0 million was paid to the Company. The Company recorded the settlement as a gain in other income once all contingencies were resolved during the three months ended March 31, 2023. On December 27, 2022, the Company received a letter form a purported stockholder, demanding to inspect certain of the Company’s books and records pursuant to 8 Del. C On February 6, 2023, the Company received a letter from another purported stockholder, demanding to inspect certain of the Company’s books and records pursuant to 8 Del. C On February 20, 2023, two putative stockholder class actions were filed in the Delaware Court of Chancery, captioned Allegheny County Employees’ Retirement System v. AMC Entertainment Holdings, Inc., et al., Munoz v Adam M. Aron, et al., In re AMC Entertainment Holdings, Inc. Stockholder Litigation Allegheny Del. C Munoz Allegheny Allegheny Del. C Munoz On February 27, 2023, the Delaware Court of Chancery entered a status quo order that (i) allowed the March 14, 2023 vote on the Charter Amendment Proposals to proceed, but precludes the Company from implementing the Charter Amendment Proposals pending a ruling by the court on the plaintiffs’ then-anticipated preliminary injunction motion, and (ii) scheduled a hearing on the plaintiffs’ then-anticipated preliminary injunction motion for April 27, 2023 (the “Status Quo Order”). On April 2, 2023, the parties entered into a binding settlement term sheet to settle the Shareholder Litigation, which among other things, provided that the parties would jointly request that the Status Quo Order be lifted. Pursuant to the term sheet, the Company agreed to make a non-cash settlement payment to record holders of Common Stock as of the time (the “Settlement Class Time”) at which the Reverse Stock Split is effective (and after giving effect to the Reverse Stock Split) of one the Status Quo Order being lifted and the Company effecting the Charter Amendment Proposals. The defendants agreed to the settlement and the payment of the Settlement Payment solely to eliminate the burden, expense, and uncertainty of further litigation, and continue to expressly deny any liability or wrongdoing with respect to the matters alleged in the Shareholder Litigation. On April 3, 2023, the plaintiffs filed an unopposed motion to lift the Status Quo Order. In connection with the proposed settlement payment, the Company recorded a $126.6 million contingency reserve charge to other expense during the three months ended March 31, 2023. The contingency reserve charge is based on the estimated fair value of $116.6 million for the Settlement Payment and the expected attorneys’ fees, net of probable insurance recoveries of $10.0 million. The contingent liability is included in accrued expenses in other liabilities within the condensed consolidated balance sheets. On April 5, 2023 the court denied the motion to lift the Status Quo Order. Unless and until the court lifts the Status Quo Order, the Company cannot proceed with filing the amendment to the Company’s certificate of incorporation to effect the Charter Amendment Proposals. On April 27, 2023, the parties jointly filed a Stipulation and Agreement of Compromise, Settlement, and Release (the “Settlement Stipulation”) with the court, which fully memorializes the settlement that the parties agreed to in the term sheet. The court has set a hearing to consider approval of the settlement for June 29-30, 2023. Any settlement of the Shareholder Litigation is subject to court approval. |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
LOSS PER SHARE | |
LOSS PER SHARE | NOTE 12—LOSS PER SHARE On August 4, 2022, the Company announced that its Board of Directors declared a special dividend of one AMC Preferred Equity Unit for each share of Common Stock outstanding at the close of business on August 15, 2022, the record date. The dividend was paid at the close of business on August 19, 2022 to investors who held shares of Common Stock as of August 22, 2022, the ex-dividend date. Each AMC Preferred Equity Unit is a depositary share and represents an interest in one th Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding. Diluted loss per share includes the effects of unvested RSUs with a service condition only and unvested contingently issuable RSUs and PSUs that have service and performance conditions, if dilutive. The following table sets forth the computation of basic and diluted loss per common share: Three Months Ended (In millions) March 31, 2023 March 31, 2022 Numerator: Net loss for basic loss per share attributable to AMC Entertainment Holdings, Inc. $ (235.5) $ (337.4) Net loss for diluted loss per share attributable to AMC Entertainment Holdings, Inc. $ (235.5) $ (337.4) Denominator Weighted average shares for basic loss per common share 1,373,947 1,031,820 Weighted average shares for diluted loss per common share 1,373,947 1,031,820 Basic loss per common share $ (0.17) $ (0.33) Diluted loss per common share $ (0.17) $ (0.33) Vested RSUs and PSUs have dividend rights identical to the Company’s Common Stock and AMC Preferred Equity Units and are treated as outstanding shares for purposes of computing basic and diluted earnings per share. Unvested RSUs of 5,319,571 for the three months ended March 31, 2023 and unvested RSUs of 5,614,052 for the three months ended March 31, 2022 were not included in the computation of diluted loss per share because they would be anti-dilutive. Unvested PSUs are subject to performance conditions and are included in diluted earnings per share, if dilutive, based on the number of shares, if any, that would be issuable under the terms of the Company’s 2013 Equity Incentive Plan if the end of the reporting period were the end of the contingency period. Unvested PSUs of 2,978,289 at certain performance targets for the three months ended March 31, 2023 and unvested PSUs of 2,953,978 at certain performance targets for the three months ended March 31, 2022, were not included in the computation of diluted loss per share because they would not be issuable if the end of the reporting period were the end of the contingency period or they would be anti-dilutive. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | NOTE 13—SUBSEQUENT EVENTS Equity Distribution Agreement. Related Party Debt Repurchase. NCM Bankruptcy Shareholder Litigation. one “Settlement Payment”). On April 3, 2023, the plaintiffs filed an unopposed motion to lift the Status Quo Order. On April 5, 2023, the court denied the motion to lift the Status Quo Order. Unless and until the court lifts the Status Quo Order, the Company cannot proceed with filing the amendment to the Company’s certificate of incorporation to effect the Charter Amendment Proposals. Further, any settlement of the Shareholder Litigation is subject to court approval. On April 26, 2023, the Company and the plaintiffs jointly filed a Stipulation and Agreement of Compromise, Settlement, and Release (the “Settlement Stipulation”) with the court. The terms of the Settlement Stipulation are substantially the same as the previously entered binding settlement term sheet. The court has set a hearing to consider approval of the Settlement Stipulation on June 29-30, 2023. See Note 11—Commitments and Contingencies for further information regarding the litigation. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
BASIS OF PRESENTATION | |
Liquidity | Liquidity. The Company’s current cash burn rates are not sustainable long-term. In order to achieve net positive operating cash flows and long-term profitability, the Company believes that operating revenues will need to increase significantly to levels in line with pre-COVID operating revenues. Until such time as the Company is able to achieve positive operating cash flow, it is difficult to estimate the Company’s liquidity requirements, future cash burn rates, future operating revenues, and attendance levels. Depending on the Company’s assumptions regarding the timing and ability to achieve significantly increased levels of operating revenue, the estimates of amounts of required liquidity vary significantly. There can be no assurance that the operating revenues, attendance levels, and other assumptions used to estimate our liquidity requirements and future cash burn rates will be correct, and our ability to be predictive is uncertain due to limited ability to predict studio film release dates, the overall production and theatrical release levels and success of individual titles. Further, there can be no assurances that the Company will be successful in generating the additional liquidity necessary to meet the Company’s obligations beyond twelve months from the issuance of these financial statements on terms acceptable to the Company or at all. The Company may, at any time and from time to time, seek to retire or purchase its outstanding debt through cash purchases and/or exchanges for equity (including AMC Preferred Equity Units) or debt, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will be upon such terms and at such prices as it may determine, and will depend on prevailing market conditions, its liquidity requirements, contractual restrictions and other factors. The amounts involved may be material and to the extent equity is used, dilutive. On December 22, 2022, the Company entered into a forward purchase agreement (the “Forward Purchase Agreement”) with Antara Capital LP (“Antara”) pursuant to which the Company agreed to (i) sell to Antara 106,595,106 AMC Preferred Equity Units for an aggregate purchase price of $75.1 million and (ii) simultaneously purchase from Antara $100.0 million aggregate principal amount of the Company’s 10%/12% Cash/PIK Toggle Second Lien Notes due 2026 in exchange for 91,026,191 AMC Preferred Equity Units. On February 7, 2023, the Company issued 197,621,297 AMC Preferred Equity Units to Antara in exchange for $75.1 million in cash and $100.0 million aggregate principal amount of the Company’s 10%/12% Cash/PIK Toggle Second Lien Notes due 2026. The Company recorded $193.7 million to stockholders’ deficit as a result of the transaction. The Company paid $1.4 million of accrued interest in cash upon exchange of the notes. See Note 7—Stockholders’ Equity for more information. During the three months ended March 31, 2023 the Company raised gross proceeds of approximately $80.3 million and paid fees to a sales agent and incurred other third-party issuance costs of approximately $2.0 million and $7.8 million, respectively, through its at-the-market offering of approximately 49.3 million shares of its AMC Preferred Equity Units. The Company paid $6.8 million of other third-party issuance costs during the three months ended March 31, 2023. See Note 7—Stockholders’ Equity and Note 13—Subsequent Events for further information regarding at-the-market offerings. The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including related party transactions with Antara, which became a related party on February 7, 2023. See Note 6—Corporate Borrowings and Finance Lease Liabilities for more information. Aggregate Principal Reacquisition Gain on Accrued Interest (In millions) Repurchased Cost Extinguishment Paid Related party transactions: Second Lien Notes due 2026 $ 41.9 $ 24.4 $ 25.3 $ 0.7 5.875% Senior Subordinated Notes due 2026 4.1 1.7 2.3 0.1 Total related party transactions 46.0 26.1 27.6 0.8 Non-related party transactions: Second Lien Notes due 2026 57.5 30.4 37.5 1.1 Total non-related party transactions 57.5 30.4 37.5 1.1 Total debt repurchases $ 103.5 $ 56.5 $ 65.1 $ 1.9 |
Use of Estimates | Use of Estimates. |
Principles of Consolidation | Principles of Consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Restricted Cash | Restricted Cash. Period Ended (In millions) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 495.6 $ 631.5 Restricted cash 23.1 22.9 Total cash and cash equivalents and restricted cash in the statement of cash flows $ 518.7 $ 654.4 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. Foreign (In millions) Currency Pension Benefits Total Balance December 31, 2022 $ (78.8) $ 1.5 $ (77.3) Other comprehensive loss (7.2) (0.1) (7.3) Balance March 31, 2023 $ (86.0) $ 1.4 $ (84.6) |
Accumulated Depreciation and Amortization | Accumulated Depreciation and Amortization. |
Other Expense | Other Expense. Three Months Ended (In millions) March 31, 2023 March 31, 2022 Decreases related to contingent lease guarantees $ — $ (0.1) Governmental assistance due to COVID-19 - International markets — (2.3) Governmental assistance due to COVID-19 - U.S. markets — (1.1) Foreign currency transaction (gains) losses (8.7) 4.8 Non-operating components of net periodic benefit income 0.4 — Gain on extinguishment - Senior Subordinated Notes due 2026 (2.3) — Loss on extinguishment - First Lien Notes due 2025 — 47.7 Loss on extinguishment - First Lien Notes due 2026 — 54.4 Loss on extinguishment - First Lien Toggle Notes due 2026 — 32.9 Gain on extinguishment - Second Lien Notes due 2026 (62.8) — Derivative stockholder settlement (14.0) — Shareholder litigation contingency 126.6 — Total other expense $ 39.2 $ 136.3 |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
BASIS OF PRESENTATION | |
Schedule of debt repurchases transactions | The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including the related party transactions with Antara, which became a related party on February 7, 2023: Aggregate Principal Reacquisition Gain on Accrued Interest (In millions) Repurchased Cost Extinguishment Paid Related party transactions: Second Lien Notes due 2026 $ 41.9 $ 24.4 $ 25.3 $ 0.7 5.875% Senior Subordinated Notes due 2026 4.1 1.7 2.3 0.1 Total related party transactions 46.0 26.1 27.6 0.8 Non-related party transactions: Second Lien Notes due 2026 57.5 30.4 37.5 1.1 Total non-related party transactions 57.5 30.4 37.5 1.1 Total debt repurchases $ 103.5 $ 56.5 $ 65.1 $ 1.9 |
Schedule of consolidated statement of cash flows | Period Ended (In millions) March 31, 2023 December 31, 2022 Cash and cash equivalents $ 495.6 $ 631.5 Restricted cash 23.1 22.9 Total cash and cash equivalents and restricted cash in the statement of cash flows $ 518.7 $ 654.4 |
Schedule of change in accumulated other comprehensive income (loss) | Foreign (In millions) Currency Pension Benefits Total Balance December 31, 2022 $ (78.8) $ 1.5 $ (77.3) Other comprehensive loss (7.2) (0.1) (7.3) Balance March 31, 2023 $ (86.0) $ 1.4 $ (84.6) |
Schedule components of other expense (income) | Three Months Ended (In millions) March 31, 2023 March 31, 2022 Decreases related to contingent lease guarantees $ — $ (0.1) Governmental assistance due to COVID-19 - International markets — (2.3) Governmental assistance due to COVID-19 - U.S. markets — (1.1) Foreign currency transaction (gains) losses (8.7) 4.8 Non-operating components of net periodic benefit income 0.4 — Gain on extinguishment - Senior Subordinated Notes due 2026 (2.3) — Loss on extinguishment - First Lien Notes due 2025 — 47.7 Loss on extinguishment - First Lien Notes due 2026 — 54.4 Loss on extinguishment - First Lien Toggle Notes due 2026 — 32.9 Gain on extinguishment - Second Lien Notes due 2026 (62.8) — Derivative stockholder settlement (14.0) — Shareholder litigation contingency 126.6 — Total other expense $ 39.2 $ 136.3 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
LEASES | |
Schedule of deferred payment amounts related to rent obligations for which payments have been deferred | As of As of December 31, Decrease March 31, (In millions) 2022 in deferred amounts 2023 Fixed operating lease deferred amounts $ 150.3 $ (32.5) $ 117.8 Finance lease deferred amounts 0.9 (0.3) 0.6 Variable lease deferred amounts 6.0 (0.8) 5.2 Total deferred lease amounts $ 157.2 $ (33.6) $ 123.6 (1) During the three months ended March 31, 2023, the decrease in fixed operating lease deferred amounts includes $5.7 million of rent payments that are included in change in accounts payable and $26.8 million included in deferred rent and other non-cash rent in the condensed consolidated statement of cash flows. |
Schedule of components of lease costs | Three Months Ended March 31, March 31, (In millions) Consolidated Statements of Operations 2023 2022 Operating lease cost Theatre properties Rent $ 184.2 $ 202.5 Theatre properties Operating expense 0.3 1.2 Equipment Operating expense 3.1 2.8 Office and other General and administrative: other 1.3 1.4 Finance lease cost Amortization of finance lease assets Depreciation and amortization 0.5 0.7 Interest expense on lease liabilities Finance lease obligations 0.9 1.2 Variable lease cost Theatre properties Rent 21.5 20.7 Equipment Operating expense 13.3 12.6 Total lease cost $ 225.1 $ 243.1 |
Schedule of cash flow and supplemental information | Three Months Ended March 31, March 31, (In millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in finance leases $ (0.8) $ (1.0) Operating cash flows used in operating leases (242.8) (266.4) Financing cash flows used in finance leases (1.6) (2.5) Landlord contributions: Operating cashflows provided by operating leases 6.4 0.6 Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for new operating lease liabilities 16.0 111.8 (1) Includes lease extensions and option exercises. |
Schedule of weighted average remaining lease term and discount rate | As of March 31, 2023 Weighted Average Weighted Average Remaining Discount Lease Term and Discount Rate Lease Term (years) Rate Operating leases 9.2 10.1% Finance leases 13.6 6.4% |
Schedule of minimum annual payments required under existing leases | Operating Lease Financing Lease (In millions) Payments (2) Payments (2) Nine months ending December 31, 2023 $ 729.6 $ 6.8 2024 874.7 8.3 2025 825.6 7.6 2026 761.3 7.5 2027 697.8 7.5 2028 608.8 7.1 Thereafter 2,733.9 45.2 Total lease payments 7,231.7 90.0 Less imputed interest (2,513.0) (31.5) Total operating and finance lease liabilities, respectively $ 4,718.7 $ 58.5 (1) The minimum annual payments table above does not include contractual cash rent amounts that were due and not paid, which are recorded in accounts payable as shown below, including estimated repayment dates: Accounts Payable (In millions) Lease Payments Nine months ended December 31, 2023 $ 15.4 2024 1.0 2025 0.8 2026 0.7 2027 0.3 2028 0.1 Thereafter 0.1 Total deferred lease amounts recorded in accounts payable $ 18.4 (2) The minimum annual payments table above includes deferred undiscounted cash rent amounts that were due and not paid related to operating and finance leases, as shown below: Operating Lease Financing Lease (In millions) Payments Payments Nine months ended December 31, 2023 $ 54.9 $ 0.3 2024 15.8 — 2025 5.7 — 2026 4.2 — 2027 3.4 — 2028 3.2 — Thereafter 17.7 — Total deferred lease amounts $ 104.9 $ 0.3 |
Schedule of contractual rent amounts due and not paid included in accounts payable | Accounts Payable (In millions) Lease Payments Nine months ended December 31, 2023 $ 15.4 2024 1.0 2025 0.8 2026 0.7 2027 0.3 2028 0.1 Thereafter 0.1 Total deferred lease amounts recorded in accounts payable $ 18.4 |
Schedule of deferred lease payments included in the minimum annual payments also included in a separate commitment | Operating Lease Financing Lease (In millions) Payments Payments Nine months ended December 31, 2023 $ 54.9 $ 0.3 2024 15.8 — 2025 5.7 — 2026 4.2 — 2027 3.4 — 2028 3.2 — Thereafter 17.7 — Total deferred lease amounts $ 104.9 $ 0.3 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |
Schedule of disaggregated revenue | Three Months Ended (In millions) March 31, 2023 March 31, 2022 Major revenue types Admissions $ 534.1 $ 443.8 Food and beverage 328.7 252.5 Other theatre: Screen advertising 30.9 28.9 Other 60.7 60.5 Other theatre 91.6 89.4 Total revenues $ 954.4 $ 785.7 Three Months Ended (In millions) March 31, 2023 March 31, 2022 Timing of revenue recognition Products and services transferred at a point in time $ 871.8 $ 708.1 Products and services transferred over time 82.6 77.6 Total revenues $ 954.4 $ 785.7 (1) Amounts primarily include subscription and advertising revenues. |
Schedule of receivables and deferred revenue income | (In millions) March 31, 2023 December 31, 2022 Current assets Receivables related to contracts with customers $ 40.6 $ 92.3 Miscellaneous receivables 65.1 74.3 Receivables, net $ 105.7 $ 166.6 (In millions) March 31, 2023 December 31, 2022 Current liabilities Deferred revenue related to contracts with customers $ 387.5 $ 398.8 Miscellaneous deferred income 4.2 3.9 Deferred revenue and income $ 391.7 $ 402.7 |
Customers included in deferred revenues and income | |
Disaggregation of Revenue [Line Items] | |
Schedule of changes in contract liabilities | Deferred Revenues Related to Contracts (In millions) with Customers Balance December 31, 2022 $ 398.8 Cash received in advance 78.5 Customer loyalty rewards accumulated, net of expirations: Admission revenues 3.6 Food and beverage 7.5 Other theatre (0.2) Reclassification to revenue as the result of performance obligations satisfied: Admission revenues (68.7) Food and beverage (16.3) Other theatre (16.1) Foreign currency translation adjustment 0.4 Balance March 31, 2023 $ 387.5 (1) Includes movie tickets, food and beverage, gift cards, exchange tickets, and AMC Stubs® loyalty membership fees. (2) Amount of rewards accumulated, net of expirations, that are attributed to AMC Stubs® and other loyalty programs. (3) Amount of rewards redeemed that are attributed to gift cards, exchange tickets, movie tickets, AMC Stubs® loyalty programs and other loyalty programs. (4) Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, AMC Stubs® loyalty membership fees and other loyalty programs. |
Exhibitor services agreement | |
Disaggregation of Revenue [Line Items] | |
Schedule of changes in contract liabilities | Exhibitor Services (In millions) Agreement (1) Balance December 31, 2022 $ 505.8 Reclassification, net of adjustments, for portion of the beginning balance to other theatre revenue, as the result of performance obligations satisfied (3.3) Balance March 31, 2023 $ 502.5 (1) Represents the carrying amount of the National CineMedia, LLC (“NCM”) common units that were previously received under the annual Common Unit Adjustment (“CUA”). The deferred revenues are being amortized to other theatre revenues over the remainder of the 30-year term of the Exhibitor Service Agreement (“ESA”) ending in February 2037. |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
GOODWILL. | |
Summary of the changes in goodwill by reporting unit | U.S. Markets International Markets Consolidated Goodwill (In millions) Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Gross Carrying Amount Accumulated Impairment Losses Net Carrying Amount Balance December 31, 2022 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,521.8 $ (976.3) $ 545.5 $ 4,594.4 $ (2,252.4) $ 2,342.0 Currency translation adjustment — — — 23.1 (22.4) 0.7 23.1 (22.4) 0.7 Balance March 31, 2023 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,544.9 $ (998.7) $ 546.2 $ 4,617.5 $ (2,274.8) $ 2,342.7 |
CORPORATE BORROWINGS AND FINA_2
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | |
Summary of the carrying value of corporate borrowings and capital and financing lease obligations | (In millions) March 31, 2023 December 31, 2022 First Lien Secured Debt: Senior Secured Credit Facility-Term Loan due 2026 (7.684% as of March 31, 2023 and 7.274% as of December 31, 2022) $ 1,920.0 $ 1,925.0 12.75% Odeon Senior Secured Notes due 2027 400.0 400.0 7.5% First Lien Notes due 2029 950.0 950.0 Second Lien Secured Debt: 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 1,190.4 1,389.8 Subordinated Debt: 6.375% Senior Subordinated Notes due 2024 (£4.0 million par value as of March 31, 2023) 4.9 4.8 5.75% Senior Subordinated Notes due 2025 98.3 98.3 5.875% Senior Subordinated Notes due 2026 51.5 55.6 6.125% Senior Subordinated Notes due 2027 125.5 125.5 Total principal amount of corporate borrowings $ 4,740.6 $ 4,949.0 Finance lease liabilities 58.5 58.8 Deferred financing costs (36.3) (37.9) Net premium 177.7 229.7 Total carrying value of corporate borrowings and finance lease liabilities $ 4,940.5 $ 5,199.6 Less: Current maturities corporate borrowings (20.0) (20.0) Current maturities finance lease obligations (6.5) (5.5) Total noncurrent carrying value of corporate borrowings and finance lease liabilities $ 4,914.0 $ 5,174.1 |
Summary of net premium (discount) amounts of corporate borrowings | March 31, December 31, (In millions) 2023 2022 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 $ 212.0 $ 265.5 Senior Secured Credit Facility-Term Loan due 2026 (4.4) (4.8) 12.75% Odeon Senior Secured Notes due 2027 (30.0) (31.1) 6.375% Senior Subordinated Notes due 2024 0.1 0.1 $ 177.7 $ 229.7 |
Schedule of minimum annual payments required under existing capital and financing lease obligations (net present value thereof) and maturities of corporate borrowings | Principal Amount of Corporate (In millions) Borrowings Nine months ended December 31, 2023 $ 15.0 2024 24.9 2025 118.3 2026 3,106.9 2027 525.5 2028 — Thereafter 950.0 Total $ 4,740.6 |
Schedule of debt repurchases transactions | The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including the related party transactions with Antara, which became a related party on February 7, 2023: Aggregate Principal Reacquisition Gain on Accrued Interest (In millions) Repurchased Cost Extinguishment Paid Related party transactions: Second Lien Notes due 2026 $ 41.9 $ 24.4 $ 25.3 $ 0.7 5.875% Senior Subordinated Notes due 2026 4.1 1.7 2.3 0.1 Total related party transactions 46.0 26.1 27.6 0.8 Non-related party transactions: Second Lien Notes due 2026 57.5 30.4 37.5 1.1 Total non-related party transactions 57.5 30.4 37.5 1.1 Total debt repurchases $ 103.5 $ 56.5 $ 65.1 $ 1.9 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY | |
Summary of stock based compensation | Three Months Ended March 31, March 31, (In millions) 2023 2022 Equity classified awards: Special awards expense $ 20.2 $ — Board of director stock award expense 0.9 0.8 Restricted stock unit expense 3.0 2.8 Performance stock unit expense 1.7 2.9 Total equity classified awards: 25.8 6.5 Liability classified awards: Restricted and performance stock unit expense 0.1 — Total liability classified awards: 0.1 — Total stock-based compensation expense $ 25.9 $ 6.5 |
Schedule of Nonvested RSU, PSU and SPSU Activity | Weighted Weighted Class A Average AMC Preferred Average Common Stock Grant Date Equity Unit Grant Date RSUs and PSUs Fair Value RSUs and PSUs Fair Value Nonvested at January 1, 2023 3,129,241 $ 5.91 3,129,241 $ 5.91 Granted 2,790,514 6.23 3,042,616 2.22 Granted - Special Award 2,389,589 6.23 2,389,589 2.22 Vested (983,107) 5.90 (1,246,290) 5.62 Vested - Special Award (1,284,818) 6.23 (1,294,464) 2.22 Forfeited (29,317) 5.94 (29,317) 4.11 Cancelled (884,452) 5.80 (621,269) 6.31 Cancelled - Special Award (1,104,771) 6.23 (1,095,125) 2.22 Nonvested at March 31, 2023 4,022,879 $ 6.16 4,274,981 $ 3.32 Tranche Years 2024 and 2025 awarded under the 2023 PSU award and Tranche Year 2024 awarded under the 2022 PSU award with grant date fair values to be determined in years 2024 and 2025, respectively 1,107,804 1,233,800 Total Nonvested at March 31, 2023 5,130,683 5,508,781 (1) The number of PSU shares granted under the Tranche Year 2023 assumes the Company will attain a performance target at 100% for the Adjusted EBITDA target and 100% for the free cash flow target. (2) Represents vested RSUs and PSUs surrendered in lieu of taxes and cancelled awards returned to the 2013 Equity Incentive Plan. As a result, the Company paid taxes for restricted unit withholdings of approximately $13.1 million during the three months ended March 31, 2023. |
Schedule of Stockholder's Equity | Preferred Stock Series A Convertible Accumulated Class A Voting Participating Depositary Shares of Additional Other Total Common Stock Preferred Stock AMC Preferred Paid-in Comprehensive Accumulated Stockholders’ (In millions, except share and per share data) Shares Amount Shares Equity Units Amount Capital Loss Deficit Equity (Deficit) Balances December 31, 2022 516,838,912 $ 5.2 7,245,872 724,587,058 $ 0.1 $ 5,045.1 $ (77.3) $ (7,597.6) $ (2,624.5) Net loss — — — — — — — (235.5) (235.5) Other comprehensive loss — — — — — — (7.3) — (7.3) AMC Preferred Equity Units issuance — — 492,880 49,287,989 — 70.5 — — 70.5 Antara Forward Purchase Agreement (2) — — 1,976,213 197,621,297 — 193.7 — — 193.7 Taxes paid for restricted unit withholdings — — — — — (13.1) — — (13.1) Stock-based compensation (1) 2,353,477 — 26,944 2,694,450 — 25.9 — — 25.9 Balances March 31, 2023 519,192,389 $ 5.2 9,741,909 974,190,794 $ 0.1 $ 5,322.1 $ (84.6) $ (7,833.1) $ (2,590.3) (1) Includes 85,552 Class A common stock shares and 153,696 AMC Preferred Equity Units awarded to the Board of Directors, 2,267,925 vested Class A common stock RSUs and PSUs, and 2,540,754 AMC Preferred Equity Units RSUs and PSUs. (2) Includes $75.1 million of cash proceeds and $118.6 million carrying value of the debt exchanged for AMC Preferred Equity Units. Preferred Stock Series A Convertible Accumulated Class A Participating Depositary Shares of Additional Other Total AMC Common Stock Preferred Stock AMC Preferred Paid-in Comprehensive Accumulated Stockholders’ (In millions, except share and per share data) Shares Amount Shares Equity Units Amount Capital Income (Loss) Deficit Equity (Deficit) Balances December 31, 2021 513,979,100 $ 5.1 5,139,791 513,979,100 $ 0.1 $ 4,857.4 $ (28.1) $ (6,624.0) $ (1,789.5) Net loss — — — — — — — (337.4) (337.4) Other comprehensive loss — — — — — — (5.8) — (5.8) Taxes paid for restricted unit withholdings — — — — — (52.2) — — (52.2) Stock-based compensation (1) 2,841,495 0.1 28,415 2,841,495 — 6.5 — — 6.6 Balances March 31, 2022 516,820,595 $ 5.2 5,168,206 516,820,595 $ 0.1 $ 4,811.7 $ (33.9) $ (6,961.4) $ (2,178.3) (1) Includes 41,650 Class A common stock shares and 41,650 AMC Preferred Equity Units awarded to Board of Directors, 2,799,845 vested Class A common stock RSUs and PSUs, and 2,799,845 vested AMC Preferred Equity Units RSUs and PSUs. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value hierarchy of financial assets carried at fair value on a recurring basis | Fair Value Measurements at March 31, 2023 Using Significant Total Carrying Quoted prices in Significant other unobservable Value at active market observable inputs inputs (In millions) March 31, 2023 (Level 1) (Level 2) (Level 3) Other long-term assets: Investment in Hycroft Mining Holding Corporation warrants $ 6.9 $ — $ — $ 6.9 Marketable equity securities: Investment in Hycroft Mining Holding Corporation 10.1 10.1 — — Total assets at fair value $ 17.0 $ 10.1 $ — $ 6.9 |
Schedule of fair value of financial instruments not recognized at fair value for which it is practicable to estimate fair value | Fair Value Measurements at March 31, 2023 Using Significant other Significant Total Carrying Quoted prices in observable unobservable Value at active market inputs inputs (In millions) March 31, 2023 (Level 1) (Level 2) (Level 3) Current maturities of corporate borrowings $ 20.0 $ — $ 14.6 $ — Corporate borrowings 4,862.0 — 3,266.3 — |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
OPERATING SEGMENTS. | |
Schedule of financial information by reportable operating segment | Three Months Ended Revenues (In millions) March 31, 2023 March 31, 2022 U.S. markets $ 704.5 $ 563.1 International markets 249.9 222.6 Total revenues $ 954.4 $ 785.7 Three Months Ended Adjusted EBITDA (In millions) March 31, 2023 March 31, 2022 U.S. markets $ 10.9 $ (43.4) International markets (3.8) (18.3) Total Adjusted EBITDA $ 7.1 $ (61.7) (1) The Company presents Adjusted EBITDA as a supplemental measure of its performance. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets and any cash distributions of earnings from its other equity method investees. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is broadly consistent with how Adjusted EBITDA is defined in the Company’s debt indentures. Three Months Ended Capital Expenditures (In millions) March 31, 2023 March 31, 2022 U.S. markets $ 34.6 $ 21.1 International markets 12.8 13.7 Total capital expenditures $ 47.4 $ 34.8 |
Schedule of information about the Company's revenues from continuing operations and assets by geographic area | As of As of Long-term assets, net (In millions) March 31, 2023 December 31, 2022 U.S. markets $ 6,026.1 $ 6,135.9 International markets 2,081.0 2,097.6 Total long-term assets $ 8,107.1 $ 8,233.5 (1) Long-term assets are comprised of property, net, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets. |
Schedule of reconciliation of net earnings to Adjusted EBITDA | Three Months Ended (In millions) March 31, 2023 March 31, 2022 Net loss $ (235.5) $ (337.4) Plus: Income tax provision 1.9 0.1 Interest expense 101.1 92.4 Depreciation and amortization 93.6 98.7 Certain operating expense 1.1 2.3 Equity in (earnings) loss of non-consolidated entities (1.4) 5.1 Cash distributions from non-consolidated entities — 0.7 Attributable EBITDA 0.5 0.2 Investment income (13.5) (63.4) Other expense 42.8 139.8 Other non-cash rent benefit (9.6) (7.1) General and administrative — unallocated: Merger, acquisition and other costs 0.2 0.4 Stock-based compensation expense 25.9 6.5 Adjusted EBITDA $ 7.1 $ (61.7) (1) 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, disposition of assets and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature or are non-operating in nature. (2) Includes U.S. non-theatre distributions from equity method investments and International non- theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to the Company’s operations. (3) Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of the Company’s equity in loss of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and the Company’s gift card and package ticket program. Three Months Ended (In millions) March 31, 2023 March 31, 2022 Equity in (earnings) loss of non-consolidated entities $ (1.4) $ 5.1 Less: Equity in (earnings) loss of non-consolidated entities excluding International theatre joint ventures (1.1) 0.3 Equity in earnings (loss) of International theatre joint ventures 0.3 (4.8) Income tax benefit (0.1) — Investment expense 0.1 — Impairment of long-lived assets — 4.2 Depreciation and amortization 0.2 0.8 Attributable EBITDA $ 0.5 $ 0.2 (4) Investment income during the three months ended March 31, 2023 primarily includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $2.3 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding Corporation of $2.3 million, a $(15.5) million gain on the sale of the Company’s investment in Saudi Cinema Company, LLC, and interest income of $(2.3) million. Investment income during the three months ended March 31, 2022 includes appreciation in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $28.8 million and appreciation in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding Corporation of $35.1 million. (5) Other expense during the three months ended March 31, 2023 includes a non-cash litigation contingency reserve charge of $116.6 million, partially offset by foreign currency transaction gains of $(8.7) million and gains on debt extinguishment of $(65.1) million. Other expense during the three months ended March 31, 2022 included loss on debt extinguishment of $135.0 million and foreign currency transaction losses of $4.8 million. (6) Reflects amortization expense for certain intangible assets reclassified from depreciation and amortization to rent expense due to the adoption of ASC 842, Leases and deferred rent benefit related to the impairment of right-of-use operating lease assets. (7) Merger, acquisition and other costs are excluded as they are non-operating in nature. (8) Non-cash or non-recurring expense included in general and administrative: other. |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
LOSS PER SHARE | |
Schedule of computation of basic and diluted loss per common share | Three Months Ended (In millions) March 31, 2023 March 31, 2022 Numerator: Net loss for basic loss per share attributable to AMC Entertainment Holdings, Inc. $ (235.5) $ (337.4) Net loss for diluted loss per share attributable to AMC Entertainment Holdings, Inc. $ (235.5) $ (337.4) Denominator Weighted average shares for basic loss per common share 1,373,947 1,031,820 Weighted average shares for diluted loss per common share 1,373,947 1,031,820 Basic loss per common share $ (0.17) $ (0.33) Diluted loss per common share $ (0.17) $ (0.33) |
BASIS OF PRESENTATION - Liquidi
BASIS OF PRESENTATION - Liquidity (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Apr. 06, 2023 | Feb. 07, 2023 | Dec. 22, 2022 | May 05, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
BASIS OF PRESENTATION | |||||||
Net proceeds from AMC Preferred Equity Units issuance | $ 146.6 | ||||||
Increase in stockholders' deficit | 70.5 | ||||||
Amount of minimum liquidity requirements | 100 | ||||||
Gain on Extinguishment | $ 65.1 | 65.1 | $ (135) | ||||
Accrued interest paid | 1.9 | ||||||
Carrying value of corporate borrowings | 4,740.6 | $ 4,949 | |||||
Accrued interest paid | 77.3 | $ 62.5 | |||||
Related party transactions | |||||||
BASIS OF PRESENTATION | |||||||
Gain on Extinguishment | 27.6 | ||||||
Accrued interest paid | 0.8 | ||||||
Non-related party transactions | |||||||
BASIS OF PRESENTATION | |||||||
Gain on Extinguishment | 37.5 | ||||||
Accrued interest paid | 1.1 | ||||||
Second Lien Notes due 2026 | |||||||
BASIS OF PRESENTATION | |||||||
Number of shares sold | 91,026,191 | ||||||
Value of shares sold | $ 100 | ||||||
Cash interest rate (as a percent) | 10% | ||||||
PIK interest rate (as a percent) | 12% | ||||||
Aggregate principal amount | 100 | ||||||
Second Lien Notes due 2026 | Related party transactions | |||||||
BASIS OF PRESENTATION | |||||||
Gain on Extinguishment | 25.3 | ||||||
Accrued interest paid | 0.7 | ||||||
Second Lien Notes due 2026 | Non-related party transactions | |||||||
BASIS OF PRESENTATION | |||||||
Gain on Extinguishment | 37.5 | ||||||
Accrued interest paid | $ 1.1 | ||||||
6.125% Senior Subordinated Notes due 2027 | |||||||
BASIS OF PRESENTATION | |||||||
Carrying value of corporate borrowings | 125.5 | $ 125.5 | |||||
Second Lien Notes due 2026 | |||||||
BASIS OF PRESENTATION | |||||||
Cash interest rate (as a percent) | 10% | ||||||
PIK interest rate (as a percent) | 12% | ||||||
Increase in stockholders' deficit | $ 193.7 | ||||||
Aggregate principal amount | 100 | ||||||
Carrying value of corporate borrowings | 118.6 | ||||||
Accrued interest paid | 1.4 | ||||||
AMC Preferred Equity Units | |||||||
BASIS OF PRESENTATION | |||||||
Net proceeds from AMC Preferred Equity Units issuance | $ 75.1 | 75.1 | |||||
AMC Preferred Equity Units | Second Lien Notes due 2026 | |||||||
BASIS OF PRESENTATION | |||||||
Number of shares issued | 197,621,297 | ||||||
AMC Preferred Equity Units | Second Lien Notes due 2026 | |||||||
BASIS OF PRESENTATION | |||||||
Number of shares issued | 197,621,297 | ||||||
Subsequent Events | |||||||
BASIS OF PRESENTATION | |||||||
Number of shares issued | 21,200,000 | ||||||
Gross proceeds | $ 34.2 | ||||||
Sales agents fees paid | $ 0.9 | ||||||
Subsequent Events | Second Lien Notes due 2026 | Related party transactions | |||||||
BASIS OF PRESENTATION | |||||||
Aggregate principal amount | $ 9 | ||||||
Gain on Extinguishment | 4.4 | ||||||
Accrued interest paid | $ 0.3 | ||||||
Forward purchase agreement | |||||||
BASIS OF PRESENTATION | |||||||
Number of shares sold | 106,595,106 | ||||||
Value of shares sold | $ 75.1 | ||||||
Increase in stockholders' deficit | $ 193.7 | ||||||
At the Market Offerings | |||||||
BASIS OF PRESENTATION | |||||||
Number of shares issued | 49,300,000 | ||||||
Other Third Party Stock Issuance Costs Incurred | $ 7.8 | ||||||
Gross proceeds | 80.3 | ||||||
Sales agents fees paid | 2 | ||||||
Payment to issuance cost to third party | $ 6.8 |
BASIS OF PRESENTATION - Debt re
BASIS OF PRESENTATION - Debt repurchase transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 07, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 103.5 | ||
Reacquisition Cost | 56.5 | ||
Gain on Extinguishment | 65.1 | $ 65.1 | $ (135) |
Accrued interest paid | $ 1.9 | ||
5.875% Senior Subordinated Notes due 2026. | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.875% | ||
Related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 46 | ||
Reacquisition Cost | 26.1 | ||
Gain on Extinguishment | 27.6 | ||
Accrued interest paid | 0.8 | ||
Non-related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 57.5 | ||
Reacquisition Cost | 30.4 | ||
Gain on Extinguishment | 37.5 | ||
Accrued interest paid | 1.1 | ||
Second Lien Notes due 2026 | Related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 41.9 | ||
Reacquisition Cost | 24.4 | ||
Gain on Extinguishment | 25.3 | ||
Accrued interest paid | 0.7 | ||
Second Lien Notes due 2026 | Non-related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 57.5 | ||
Reacquisition Cost | 30.4 | ||
Gain on Extinguishment | 37.5 | ||
Accrued interest paid | 1.1 | ||
5.875% Senior Subordinated Notes due 2026 | Related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 4.1 | ||
Reacquisition Cost | 1.7 | ||
Gain on Extinguishment | 2.3 | ||
Accrued interest paid | $ 0.1 |
BASIS OF PRESENTATION - Princip
BASIS OF PRESENTATION - Principles of Consolidation (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
BASIS OF PRESENTATION | |
Number of reportable segments | 2 |
BASIS OF PRESENTATION - Cash an
BASIS OF PRESENTATION - Cash and equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 495.6 | $ 631.5 |
International markets. | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 111.7 | 123.5 |
U.S. | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 383.9 | $ 508 |
BASIS OF PRESENTATION - Restric
BASIS OF PRESENTATION - Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
BASIS OF PRESENTATION | ||||
Cash and cash equivalents | $ 495.6 | $ 631.5 | ||
Restricted cash | 23.1 | 22.9 | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 518.7 | $ 654.4 | $ 1,188.6 | $ 1,620.3 |
BASIS OF PRESENTATION - AOCL an
BASIS OF PRESENTATION - AOCL and Accumulated Depreciation and Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accumulated other comprehensive loss | ||
Balance at the beginning of the period | $ (2,624.5) | |
Balance at the end of the period | (2,590.3) | |
Accumulated depreciation and amortization | ||
Accumulated depreciation | 2,915.9 | $ 2,853.8 |
Accumulated amortization | 16.8 | $ 22.2 |
Foreign Currency | ||
Accumulated other comprehensive loss | ||
Balance at the beginning of the period | (78.8) | |
Other comprehensive loss | (7.2) | |
Balance at the end of the period | (86) | |
Pension Benefits | ||
Accumulated other comprehensive loss | ||
Balance at the beginning of the period | 1.5 | |
Other comprehensive loss | (0.1) | |
Balance at the end of the period | 1.4 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated other comprehensive loss | ||
Balance at the beginning of the period | (77.3) | |
Other comprehensive loss | (7.3) | |
Balance at the end of the period | $ (84.6) |
BASIS OF PRESENTATION - Other E
BASIS OF PRESENTATION - Other Expense (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 07, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Other Expense (Income): | |||
(Gain) loss on extinguishment of debt | $ (65.1) | $ (65.1) | $ 135 |
Total other expense | 39.2 | 136.3 | |
Other expense | |||
Other Expense (Income): | |||
Decreases related to contingent lease guarantees | (0.1) | ||
Governmental assistance due to COVID-19- International markets | (2.3) | ||
Governmental assistance due to COVID-19 - U.S. markets | (1.1) | ||
Foreign currency transaction (gains) losses | (8.7) | 4.8 | |
Non-operating components of net periodic benefit income | 0.4 | ||
Derivative stockholder settlement | (14) | ||
Shareholder litigation contingency | 126.6 | ||
Total other expense | 39.2 | 136.3 | |
Other expense | 5.875% Senior Subordinated Notes due 2026. | |||
Other Expense (Income): | |||
(Gain) loss on extinguishment of debt | (2.3) | ||
Other expense | Second Lien Notes due 2026 | |||
Other Expense (Income): | |||
(Gain) loss on extinguishment of debt | $ (62.8) | ||
Other expense | First Lien Toggle Notes due 2026 | |||
Other Expense (Income): | |||
(Gain) loss on extinguishment of debt | 32.9 | ||
Other expense | First Lien Notes due 2025 | |||
Other Expense (Income): | |||
(Gain) loss on extinguishment of debt | 47.7 | ||
Other expense | First Lien Notes due 2026 | |||
Other Expense (Income): | |||
(Gain) loss on extinguishment of debt | $ 54.4 |
LEASES - Deferred payment (Deta
LEASES - Deferred payment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fixed operating lease deferred amounts included in: | |
Fixed operating lease deferred amounts, Beginning | $ 150.3 |
Fixed operating lease deferred amounts, Activity | (32.5) |
Fixed operating lease deferred amounts, Ending | 117.8 |
Finance lease deferred amounts included in: | |
Finance lease deferred amounts, Beginning | 0.9 |
Finance lease deferred amounts, Activity | (0.3) |
Finance lease deferred amounts, Ending | 0.6 |
Variable lease deferred amounts included in: | |
Variable lease deferred amounts, Beginning | 6 |
Variable lease deferred amounts, Activity | (0.8) |
Variable lease deferred amounts, Ending | 5.2 |
Total deferred lease amounts, Beginning | 157.2 |
Total deferred lease amounts, Activity | (33.6) |
Total deferred lease amounts, Ending | 123.6 |
Fixed operating lease deferred amounts | 5.7 |
Operating lease deferred fixed rent payments included in deferred and other non cash rent | $ 26.8 |
LEASES - Lease costs (Details)
LEASES - Lease costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Interest expense on lease liabilities | $ 0.9 | $ 1.2 |
Total lease cost | 225.1 | 243.1 |
Depreciation and amortization | ||
Lessee, Lease, Description [Line Items] | ||
Amortization of finance lease assets | 0.5 | 0.7 |
Finance lease obligations | ||
Lessee, Lease, Description [Line Items] | ||
Interest expense on lease liabilities | 0.9 | 1.2 |
58 Theatres | Rent | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 184.2 | 202.5 |
Variable lease cost | 21.5 | 20.7 |
58 Theatres | Operating expense (income) | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 0.3 | 1.2 |
Equipment | Operating expense (income) | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 3.1 | 2.8 |
Variable lease cost | 13.3 | 12.6 |
Office And Other | General and administrative: other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 1.3 | $ 1.4 |
LEASES - Cash flow and suppleme
LEASES - Cash flow and supplemental information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used in finance leases | $ (0.8) | $ (1) |
Operating cash flows used in operating leases | (242.8) | (266.4) |
Financing cash flows used in finance leases | (1.6) | (2.5) |
Landlord contributions: | ||
Operating cashflows provided by operating leases | 6.4 | 0.6 |
Supplemental disclosure of noncash leasing activities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities (1) | $ 16 | $ 111.8 |
LEASES - Lease terms and discou
LEASES - Lease terms and discount rates (Details) | Mar. 31, 2023 |
LEASES | |
Operating leases, weighted average remaining lease term | 9 years 2 months 12 days |
Finance leases, weighted average remaining lease term | 13 years 7 months 6 days |
Operating leases, weighted average discount rate | 10.10% |
Finance leases, weighted average discount rate | 6.40% |
LEASES - Minimum annual payment
LEASES - Minimum annual payments under leases (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Lease Payments | ||
Nine months ending December 31, 2023 | $ 729.6 | |
2024 | 874.7 | |
2025 | 825.6 | |
2026 | 761.3 | |
2027 | 697.8 | |
2028 | 608.8 | |
Thereafter | 2,733.9 | |
Total lease payments | 7,231.7 | |
Less imputed interest | (2,513) | |
Total operating and finance lease liabilities, respectively | 4,718.7 | |
Financing Lease Payments | ||
Nine months ending December 31, 2023 | 6.8 | |
2024 | 8.3 | |
2025 | 7.6 | |
2026 | 7.5 | |
2027 | 7.5 | |
2028 | 7.1 | |
Thereafter | 45.2 | |
Total lease payments | 90 | |
Less imputed interest | (31.5) | |
Total operating and finance lease liabilities, respectively | $ 58.5 | $ 58.8 |
LEASES - Accounts Payable Lease
LEASES - Accounts Payable Lease Payments (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | $ 18.4 |
Nine months ended December 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | 15.4 |
2024 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | 1 |
2025 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | 0.8 |
2026 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | 0.7 |
2027 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | 0.3 |
2028 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | 0.1 |
Thereafter | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts recorded in accounts payable | $ 0.1 |
LEASES - Deferred lease (Detail
LEASES - Deferred lease (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | $ 104.9 |
Total deferred lease amounts, finance lease payments | 0.3 |
Nine months ended December 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | 54.9 |
Total deferred lease amounts, finance lease payments | 0.3 |
2024 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | 15.8 |
2025 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | 5.7 |
2026 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | 4.2 |
2027 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | 3.4 |
2028 | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | 3.2 |
Thereafter | |
Lessee, Lease, Description [Line Items] | |
Total deferred lease amounts, operating lease payment | $ 17.7 |
LEASES - Future lease agreement
LEASES - Future lease agreements (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) item | |
Signed lease agreements | $ | $ 79.5 |
Future Lease Commitments | |
Number of Theatres | item | 3 |
Lease buyout incentive | $ | $ 13 |
Lease, right to terminate by landlord, number of theatre | item | 1 |
Minimum | Future Lease Commitments | |
Initial base terms of operating leases | 10 years |
Maximum | Future Lease Commitments | |
Initial base terms of operating leases | 20 years |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 954.4 | $ 785.7 |
Products and services transferred at point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 871.8 | 708.1 |
Products and services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 82.6 | 77.6 |
Admissions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 534.1 | 443.8 |
Food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 328.7 | 252.5 |
Other theatre. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 91.6 | 89.4 |
Screen advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 30.9 | 28.9 |
Other theatre | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 60.7 | $ 60.5 |
REVENUE RECOGNITION - Receivabl
REVENUE RECOGNITION - Receivables and deferred revenue (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Receivables related to contracts with customers | $ 40.6 | $ 92.3 |
Miscellaneous receivables | 65.1 | 74.3 |
Receivables, net | 105.7 | 166.6 |
Current liabilities: | ||
Deferred revenue related to contracts with customers | 387.5 | 398.8 |
Miscellaneous deferred income | 4.2 | 3.9 |
Deferred revenue and income | $ 391.7 | $ 402.7 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Deferred revenues related to contracts with customers | |
Beginning balance | $ 398.8 |
Cash received in advance | 78.5 |
Foreign currency translation adjustment | 0.4 |
Ending balance | 387.5 |
Exhibitor Services Agreement | |
Deferred revenues related to contracts with customers | |
Beginning balance | 505.8 |
Reclassification to revenue as the result of performance obligations satisfied | (3.3) |
Ending balance | $ 502.5 |
Term of amortization of the exhibitor services agreement (ESA) with NCM | 30 years |
Admissions | |
Deferred revenues related to contracts with customers | |
Customer loyalty awards accumulated, net of expirations | $ 3.6 |
Reclassification to revenue as the result of performance obligations satisfied | (68.7) |
Food and beverage | |
Deferred revenues related to contracts with customers | |
Customer loyalty awards accumulated, net of expirations | 7.5 |
Reclassification to revenue as the result of performance obligations satisfied | (16.3) |
Other theatre. | |
Deferred revenues related to contracts with customers | |
Customer loyalty awards accumulated, net of expirations | (0.2) |
Reclassification to revenue as the result of performance obligations satisfied | $ (16.1) |
REVENUE RECOGNITION - Transacti
REVENUE RECOGNITION - Transaction price allocated to the remaining performance obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Customer Frequency Program | ||
Deferred revenues and income | $ 391.7 | $ 402.7 |
Gift Card And Ticket Exchange | ||
Customer Frequency Program | ||
Redemption period | 24 months | |
Deferred revenues and income | $ 298.2 | |
Loyalty Program | ||
Customer Frequency Program | ||
Redemption period | 24 months | |
Deferred revenues and income | $ 67 |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Gross Carrying Amount, Balance at the beginning of the period | $ 4,594.4 |
Accumulated Impairment Losses, Balance at the beginning of the period | (2,252.4) |
Net Carrying Amount, Balance at the beginning of the period | 2,342 |
Gross Carrying Amount, Currency translation adjustment | 23.1 |
Accumulated Impairment Losses, Currency translation adjustment | (22.4) |
Net Carrying Amount, Currency translation adjustment | 0.7 |
Gross Carrying Amount, Balance at the end of the period | 4,617.5 |
Accumulated Impairment Losses, Balance at the end of the period | (2,274.8) |
Net Carrying Amount, Balance at the end of the period | 2,342.7 |
U.S. | |
Goodwill [Roll Forward] | |
Gross Carrying Amount, Balance at the beginning of the period | 3,072.6 |
Accumulated Impairment Losses, Balance at the beginning of the period | (1,276.1) |
Net Carrying Amount, Balance at the beginning of the period | 1,796.5 |
Gross Carrying Amount, Balance at the end of the period | 3,072.6 |
Accumulated Impairment Losses, Balance at the end of the period | (1,276.1) |
Net Carrying Amount, Balance at the end of the period | 1,796.5 |
International Markets | |
Goodwill [Roll Forward] | |
Gross Carrying Amount, Balance at the beginning of the period | 1,521.8 |
Accumulated Impairment Losses, Balance at the beginning of the period | (976.3) |
Net Carrying Amount, Balance at the beginning of the period | 545.5 |
Gross Carrying Amount, Currency translation adjustment | 23.1 |
Accumulated Impairment Losses, Currency translation adjustment | (22.4) |
Net Carrying Amount, Currency translation adjustment | 0.7 |
Gross Carrying Amount, Balance at the end of the period | 1,544.9 |
Accumulated Impairment Losses, Balance at the end of the period | (998.7) |
Net Carrying Amount, Balance at the end of the period | $ 546.2 |
INVESTMENTS (Details)
INVESTMENTS (Details) $ / shares in Units, ر.س in Millions, $ in Millions | 3 Months Ended | |||||
Apr. 02, 2023 | Dec. 30, 2022 USD ($) | Dec. 30, 2022 SAR (ر.س) | Mar. 14, 2022 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) | |
Investments | ||||||
Gain on investment sold | $ 15.5 | |||||
Recorded equity in (earnings) loss | $ 1.4 | $ (5.1) | ||||
Subsequent Events | ||||||
Equity Method Investments Ownership Transactions [Abstract] | ||||||
Stock split conversion ratio | 0.1333 | |||||
U.S. | ||||||
Investments | ||||||
Number of Theatres | item | 3 | |||||
Europe | ||||||
Investments | ||||||
Number of Theatres | item | 58 | |||||
Hycroft | ||||||
Equity Method Investments Ownership Transactions [Abstract] | ||||||
Cost of investment | $ 27.9 | |||||
Number of shares purchased | shares | 23,400,000 | |||||
Stock split conversion ratio | 1 | |||||
Price per unit in equity method investment | $ / shares | $ 1.193 | |||||
Number of shares to be received for each unit | shares | 1 | |||||
Unrealized loss (gain) on investments | $ (4.6) | 63.9 | ||||
Hycroft | Investment Income | ||||||
Equity Method Investments Ownership Transactions [Abstract] | ||||||
Unrealized loss (gain) on investments | $ 4.6 | (63.9) | ||||
58 Theatres | Europe | ||||||
Investments | ||||||
Ownership percentage | 50% | |||||
Investment in Hycroft Mining Holding Corporation Warrants | ||||||
Investments | ||||||
Price per share (in dollars per share) | $ / shares | $ 1.068 | |||||
Equity Method Investments Ownership Transactions [Abstract] | ||||||
Number of shares to be received for each unit | shares | 1 | |||||
Term | 5 years | |||||
Non consolidated investee | ||||||
Investments | ||||||
Recorded equity in (earnings) loss | $ (1.4) | $ 5.1 | ||||
DCM | ||||||
Investments | ||||||
Ownership percentage | 50% | |||||
SV Holdco | ||||||
Investments | ||||||
Ownership percentage | 18.40% | |||||
AC JV, LLC | ||||||
Investments | ||||||
Ownership percentage | 32% | |||||
SCC | ||||||
Investments | ||||||
Percentage of equity method investment sold | 10% | 10% | ||||
Equity method investment, amount sold | $ 30 | ر.س 112.5 | ||||
Gain on investment sold | $ 15.5 | |||||
DCDC | ||||||
Investments | ||||||
Ownership percentage | 14.60% | |||||
Maximum | Non consolidated investee | ||||||
Investments | ||||||
Ownership percentage | 50% |
INVESTMENTS - Related Party Tra
INVESTMENTS - Related Party Transactions (Details) - Equity Method Investment, Nonconsolidated Investee(s) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transactions | |||
Receivable due from related party | $ 0.5 | $ 1.7 | |
Other revenues, Related party | 5 | $ 5.5 | |
Film exhibition costs, Related party | $ 3 | $ 1.4 |
CORPORATE BORROWINGS AND FINA_3
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Long-term debt and lease obligations (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2023 EUR (€) | |
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 4,740.6 | $ 4,949 | |
Finance lease obligations | 58.5 | 58.8 | |
Deferred charges | (36.3) | (37.9) | |
Net premium | 177.7 | 229.7 | |
Total long-term debt and finance lease obligations | 4,940.5 | 5,199.6 | |
Current maturities corporate borrowings | (20) | (20) | |
Current maturities of finance lease liabilities | (6.5) | (5.5) | |
Noncurrent portion of long-term debt and finance lease obligations | 4,914 | 5,174.1 | |
6.375% Senior Subordinated Notes due 2024 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | 4.9 | 4.8 | |
Net premium | $ 0.1 | $ 0.1 | |
Stated interest rate (as a percent) | 6.375% | 6.375% | 6.375% |
Debt instrument face amount | € | € 4 | ||
5.75 % Senior Subordinated Notes due 2025 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 98.3 | $ 98.3 | |
Stated interest rate (as a percent) | 5.75% | 5.75% | 5.75% |
5.875% Senior Subordinated Notes due 2026 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 51.5 | $ 55.6 | |
Stated interest rate (as a percent) | 5.875% | 5.875% | 5.875% |
6.125% Senior Subordinated Notes due 2027 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 125.5 | $ 125.5 | |
Stated interest rate (as a percent) | 6.125% | 6.125% | 6.125% |
Odeon Senior Secured Note 2027 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Net premium | $ (30) | $ (31.1) | |
Stated interest rate (as a percent) | 12.75% | 12.75% | |
Senior Secured Credit Facility Term-Loan Due 2026 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 1,920 | 1,925 | |
Net premium | $ (4.4) | $ (4.8) | |
Stated interest rate (as a percent) | 7.684% | 7.274% | 7.684% |
Odeon Senior Secured Notes Due 2027 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 400 | $ 400 | |
Stated interest rate (as a percent) | 12.75% | 12.75% | 12.75% |
First Lien Notes due 2029 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 950 | $ 950 | |
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% |
First Lien Toggle Notes due 2026 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
PIK interest rate (as a percent) | 12% | 12% | |
Second Lien Subordinated Notes due 2026 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Carrying value of corporate borrowings | $ 1,190.4 | $ 1,389.8 | |
Net premium | $ 212 | $ 265.5 | |
Interest rate cash (as a percent) | 10% | 10% | |
PIK interest rate (as a percent) | 12% | 12% |
CORPORATE BORROWINGS AND FINA_4
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Maturities of corporate borrowings (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Principal Amount of Corporate Borrowings | |
Nine months ended December 31, 2023 | $ 15 |
2024 | 24.9 |
2025 | 118.3 |
2026 | 3,106.9 |
2027 | 525.5 |
Thereafter | 950 |
Total | $ 4,740.6 |
CORPORATE BORROWINGS AND FINA_5
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Debt repurchase transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 07, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 103.5 | ||
Reacquisition Cost | 56.5 | ||
Gain on Extinguishment | 65.1 | $ 65.1 | $ (135) |
Accrued interest paid | 1.9 | ||
Related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 46 | ||
Reacquisition Cost | 26.1 | ||
Gain on Extinguishment | 27.6 | ||
Accrued interest paid | 0.8 | ||
Non-related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 57.5 | ||
Reacquisition Cost | 30.4 | ||
Gain on Extinguishment | 37.5 | ||
Accrued interest paid | 1.1 | ||
Second Lien Notes due 2026 | Related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 41.9 | ||
Reacquisition Cost | 24.4 | ||
Gain on Extinguishment | 25.3 | ||
Accrued interest paid | 0.7 | ||
Second Lien Notes due 2026 | Non-related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 57.5 | ||
Reacquisition Cost | 30.4 | ||
Gain on Extinguishment | 37.5 | ||
Accrued interest paid | 1.1 | ||
5.875% Senior Subordinated Notes due 2026 | Related party transactions | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | 4.1 | ||
Reacquisition Cost | 1.7 | ||
Gain on Extinguishment | 2.3 | ||
Accrued interest paid | $ 0.1 | ||
5.875% Senior Subordinated Notes due 2026. | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.875% |
CORPORATE BORROWINGS AND FINA_6
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Financial Covenants (Details) $ in Millions | Mar. 31, 2023 USD ($) |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | |
Minimum liquidity requirement | $ 100 |
Amount of minimum liquidity requirements | $ 100 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||||
Feb. 23, 2023 $ / shares shares | Feb. 07, 2023 USD ($) shares | Dec. 22, 2022 USD ($) shares | Aug. 04, 2022 shares | Mar. 31, 2023 USD ($) item $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | Sep. 26, 2022 shares | Jan. 19, 2018 item | Jan. 12, 2018 item | |
STOCKHOLDERS' EQUITY | ||||||||||
Common stock dividend declared | shares | 1 | |||||||||
Preferred stock authorized | shares | 50,000,000 | 50,000,000 | ||||||||
Preferred stock, unallocated authorized shares | shares | 40,000,000 | |||||||||
Conversion ratio | 0.01 | 0.01 | ||||||||
Increase in stockholders' deficit | $ 70.5 | |||||||||
Carrying value of corporate borrowings | 4,740.6 | $ 4,949 | ||||||||
Accrued interest paid | 77.3 | $ 62.5 | ||||||||
Net proceeds from AMC Preferred Equity Units issuance | 146.6 | |||||||||
Stock-based compensation expense | $ 25.9 | 6.5 | ||||||||
Number of pending actions | item | 2 | 2 | 2 | |||||||
Maximum | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Reserved for future issuance | shares | 425,000,000 | |||||||||
At the Market Offerings | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Gross proceeds | $ 80.3 | |||||||||
Number of shares issued | shares | 49,300,000 | |||||||||
Sales agents fees paid | $ 2 | |||||||||
other third-party issuance | 7.8 | |||||||||
Payment to issuance cost to third party | 6.8 | |||||||||
Forward purchase agreement | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Value of shares sold | $ 75.1 | |||||||||
Increase in stockholders' deficit | $ 193.7 | |||||||||
Number of shares sold | shares | 106,595,106 | |||||||||
AMC Preferred Equity Units | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Preferred stock authorized | shares | 10,000,000 | 10,000,000 | ||||||||
Preferred stock, shares issued (in shares) | shares | 9,741,909 | 7,245,872 | ||||||||
Preferred stock, unallocated authorized shares | shares | 40,000,000 | |||||||||
Price per share (in dollars per share) | $ / shares | $ 2.22 | |||||||||
Net proceeds from AMC Preferred Equity Units issuance | $ 75.1 | $ 75.1 | ||||||||
Class A common stock | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Number of shares authorized | shares | 524,173,073 | 524,173,073 | ||||||||
Price per share (in dollars per share) | $ / shares | $ 6.23 | |||||||||
Restricted stock unit | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Stock-based compensation expense | $ 3 | 2.8 | ||||||||
Equity Classified Awards | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Stock-based compensation expense | 25.8 | $ 6.5 | ||||||||
Special awards expense | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Expected performance target to be achieved (as a percent) | 200% | |||||||||
Stock-based compensation expense | 20.2 | |||||||||
Special awards expense | AMC Preferred Equity Units | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Shares vested | shares | 2,389,589 | |||||||||
Price per share (in dollars per share) | $ / shares | $ 2.22 | |||||||||
Special awards expense | Class A common stock | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Shares vested | shares | 2,389,589 | |||||||||
Price per share (in dollars per share) | $ / shares | $ 6.23 | |||||||||
Second Lien Notes due 2026 | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Value of shares sold | $ 100 | |||||||||
Debt instrument face amount | $ 100 | |||||||||
Cash interest rate (as a percent) | 10% | |||||||||
PIK interest rate (as a percent) | 12% | |||||||||
Number of shares sold | shares | 91,026,191 | |||||||||
Second Lien Notes due 2026 | AMC Preferred Equity Units | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Number of shares issued | shares | 197,621,297 | |||||||||
Second Lien Notes due 2026 | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Debt instrument face amount | $ 100 | |||||||||
Cash interest rate (as a percent) | 10% | |||||||||
PIK interest rate (as a percent) | 12% | |||||||||
Increase in stockholders' deficit | $ 193.7 | |||||||||
Carrying value of corporate borrowings | $ 118.6 | |||||||||
Accrued interest paid | $ 1.4 | |||||||||
Second Lien Notes due 2026 | AMC Preferred Equity Units | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Number of shares issued | shares | 197,621,297 |
STOCKHOLDERS' EQUITY - Stock-ba
STOCKHOLDERS' EQUITY - Stock-based compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock Based Compensation Expense | ||
Stock-based compensation expense | $ 25.9 | $ 6.5 |
Total estimated unrecognized compensation cost related to nonvested stock-based compensation arrangements | $ 37.2 | |
Weighted average period recognized | 1 year 2 months 12 days | |
Board of Directors | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | $ 0.9 | 0.8 |
Equity Classified Awards | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | 25.8 | 6.5 |
Special awards expense | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | 20.2 | |
Performance stock unit expense | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | 1.7 | 2.9 |
Restricted stock unit | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | 3 | $ 2.8 |
Liability classified awards | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | 0.1 | |
Restricted and performance stock unit expense | ||
Stock Based Compensation Expense | ||
Stock-based compensation expense | $ 0.1 |
STOCKHOLDERS' EQUITY - Awards g
STOCKHOLDERS' EQUITY - Awards granted (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) tranche $ / shares shares | Mar. 31, 2022 USD ($) | |
STOCKHOLDERS' EQUITY | ||
Stock-based compensation expense | $ | $ 25.9 | $ 6.5 |
Conversion of share based payment awards into preferred stock | 1 | |
Conversion ratio of share based payment awards into common stock | 1 | |
Board of Directors | ||
STOCKHOLDERS' EQUITY | ||
Stock-based compensation expense | $ | $ 0.9 | 0.8 |
2023 Performance share award | ||
STOCKHOLDERS' EQUITY | ||
Granted (in shares) | 942,613 | |
Stock value | $ | $ 3.9 | |
2022 Performance share award | ||
STOCKHOLDERS' EQUITY | ||
Granted (in shares) | 461,016 | |
Stock value | $ | $ 1.9 | |
2021 Performance share award | ||
STOCKHOLDERS' EQUITY | ||
Granted (in shares) | 1,601,522 | |
Stock value | $ | $ 6.8 | |
Percentage of performance target | 100% | |
Restricted stock unit | ||
STOCKHOLDERS' EQUITY | ||
Stock-based compensation expense | $ | $ 3 | 2.8 |
Restricted stock unit | Members of management and executive officers | ||
STOCKHOLDERS' EQUITY | ||
Number of shares to be received for each unit | 1 | |
Performance Vesting | Members of management and executive officers | ||
STOCKHOLDERS' EQUITY | ||
Granted (in shares) | 942,613 | |
Number of tranches | tranche | 3 | |
Awards to be granted if target not achieved (in shares) | 0 | |
Performance Vesting | Members of management and executive officers | Minimum | ||
STOCKHOLDERS' EQUITY | ||
PSUs vesting as a percentage of performance target | 80% | |
Percentage of performance target | 50% | |
Performance Vesting | Members of management and executive officers | Maximum | ||
STOCKHOLDERS' EQUITY | ||
PSUs vesting as a percentage of performance target | 120% | |
Percentage of performance target | 200% | |
Performance stock unit expense | ||
STOCKHOLDERS' EQUITY | ||
Stock-based compensation expense | $ | $ 1.7 | $ 2.9 |
2013 Equity Incentive Plan | Members of management | ||
STOCKHOLDERS' EQUITY | ||
Granted (in shares) | 2,827,979 | |
Grant date fair value (in dollars) | $ | $ 11.6 | |
Vesting period (in years) | 3 years | |
Vesting rights percentage | 33.33% | |
2013 Equity Incentive Plan | Stock options | Board of Directors | ||
STOCKHOLDERS' EQUITY | ||
Shares granted | 85,552 | |
Grant date fair value | $ | $ 0.9 | |
2013 Equity Incentive Plan | Restricted stock unit | Members of management | ||
STOCKHOLDERS' EQUITY | ||
Number of days for settlement | 30 days | |
2013 Equity Incentive Plan | Performance Vesting | Members of management and executive officers | ||
STOCKHOLDERS' EQUITY | ||
Percentage of performance target | 100% | |
Awards to be granted upon achieving 100% of performance target (in shares) | 942,613 | |
Class A common stock | ||
STOCKHOLDERS' EQUITY | ||
Price per share (in dollars per share) | $ / shares | $ 6.23 | |
AMC Preferred Equity Units | ||
STOCKHOLDERS' EQUITY | ||
Price per share (in dollars per share) | $ / shares | $ 2.22 | |
Conversion ratio of share based payment awards into common stock | 1 | |
AMC Preferred Equity Units | RSU and PSU Units | ||
STOCKHOLDERS' EQUITY | ||
Nonvested shares | 1,723,830 | |
AMC Preferred Equity Units | RSU and PSU Units | 2023 Tranche Year | ||
STOCKHOLDERS' EQUITY | ||
Nonvested shares | 1,149,186 | |
AMC Preferred Equity Units | RSU and PSU Units | 2024 & 2025 Tranche Year | ||
STOCKHOLDERS' EQUITY | ||
Nongranted shares | 574,644 | |
AMC Preferred Equity Units | Restricted stock unit | Members of management and executive officers | ||
STOCKHOLDERS' EQUITY | ||
Number of shares to be received for each unit | 1 | |
AMC Preferred Equity Units | 2013 Equity Incentive Plan | Board of Directors | ||
STOCKHOLDERS' EQUITY | ||
Shares granted | 153,696 |
STOCKHOLDERS' EQUITY - RSU, PSU
STOCKHOLDERS' EQUITY - RSU, PSU and SPSU activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Weighted Average Grant Date Fair Value | ||
Taxes paid for restricted unit withholdings | $ 13.1 | $ 52.2 |
RSU and PSU | ||
Weighted Average Grant Date Fair Value | ||
Taxes paid for restricted unit withholdings | $ 13.1 | |
RSU and PSU | Class A common stock | ||
Shares of RSU PSU and SPSU | ||
Nonvested at January 1, 2023 (in shares) | 3,129,241 | |
Granted (in shares) | 2,790,514 | |
Vested (in shares) | (983,107) | |
Forfeited (in shares) | (29,317) | |
Cancelled (in shares) | (884,452) | |
Nonvested at March 31, 2023 (in shares) | 4,022,879 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at January 1, 2023 (in dollars per share) | $ 5.91 | |
Granted (in dollars per share) | 6.23 | |
Vested (in dollars per share) | 5.90 | |
Forfeited (in dollars per share) | 5.94 | |
Cancelled (in dollars per share) | 5.80 | |
Nonvested at March 31, 2023 (in dollars per share) | $ 6.16 | |
Tranche Years 2024 and 2025 awarded under the 2023 PSU award and Tranche Year 2023 awarded under the 2021 PSU award with grant date fair values to be determined in years 2023 and 2024, respectively | 1,107,804 | |
Total Nonvested at March 31, 2023 | 5,130,683 | |
RSU and PSU | AMC Preferred Equity Units | ||
Shares of RSU PSU and SPSU | ||
Nonvested at January 1, 2023 (in shares) | 3,129,241 | |
Granted (in shares) | 3,042,616 | |
Vested (in shares) | (1,246,290) | |
Forfeited (in shares) | (29,317) | |
Cancelled (in shares) | (621,269) | |
Nonvested at March 31, 2023 (in shares) | 4,274,981 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at January 1, 2023 (in dollars per share) | $ 5.91 | |
Granted (in dollars per share) | 2.22 | |
Vested (in dollars per share) | 5.62 | |
Forfeited (in dollars per share) | 4.11 | |
Cancelled (in dollars per share) | 6.31 | |
Nonvested at March 31, 2023 (in dollars per share) | $ 3.32 | |
Tranche Years 2024 and 2025 awarded under the 2023 PSU award and Tranche Year 2023 awarded under the 2021 PSU award with grant date fair values to be determined in years 2023 and 2024, respectively | 1,233,800 | |
Total Nonvested at March 31, 2023 | 5,508,781 | |
RSU and PSU | Special Award | Class A common stock | ||
Shares of RSU PSU and SPSU | ||
Granted (in shares) | 2,389,589 | |
Vested (in shares) | (1,284,818) | |
Cancelled | (1,104,771) | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 6.23 | |
Vested (in dollars per share) | 6.23 | |
Cancelled (in dollars per share) | $ 6.23 | |
RSU and PSU | Special Award | AMC Preferred Equity Units | ||
Shares of RSU PSU and SPSU | ||
Granted (in shares) | 2,389,589 | |
Vested (in shares) | (1,294,464) | |
Cancelled (in shares) | (1,095,125) | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 2.22 | |
Vested (in dollars per share) | 2.22 | |
Cancelled (in dollars per share) | $ 2.22 | |
Special Performance Stock | Cumulative Adjusted EBITDA Target | ||
Weighted Average Grant Date Fair Value | ||
Percentage of performance target | 100% | |
Special Performance Stock | Cumulative Adjusted Free Cash Flow Target | ||
Weighted Average Grant Date Fair Value | ||
Percentage of performance target | 100% |
STOCKHOLDERS' EQUITY - Equity s
STOCKHOLDERS' EQUITY - Equity statements (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Feb. 07, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance at the beginning of the period | $ (2,624.5) | $ (1,789.5) | ||
Net loss | (235.5) | (337.4) | ||
Other comprehensive loss | (7.3) | (5.8) | ||
Increase in stockholders' deficit | 70.5 | |||
Taxes paid for restricted unit withholdings | (13.1) | (52.2) | ||
Stock-based compensation | 25.9 | 6.6 | ||
Balance at the end of the period | (2,590.3) | $ (2,178.3) | ||
Net proceeds from AMC Preferred Equity Units issuance | 146.6 | |||
Carrying value of corporate borrowings | 4,740.6 | $ 4,949 | ||
New Notes | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Increase in stockholders' deficit | $ 193.7 | |||
Carrying value of corporate borrowings | 118.6 | |||
Forward purchase agreement | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Increase in stockholders' deficit | $ 193.7 | |||
Board of Directors | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Shares awarded | 85,552 | 41,650 | ||
RSUs and PSUs vested | 2,267,925 | 2,799,845 | ||
Preferred Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at the beginning of the period | $ 0.1 | $ 0.1 | ||
Balance at the end of the period | 0.1 | 0.1 | ||
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at the beginning of the period | 5,045.1 | 4,857.4 | ||
Increase in stockholders' deficit | 70.5 | |||
Taxes paid for restricted unit withholdings | (13.1) | (52.2) | ||
Stock-based compensation | 25.9 | 6.5 | ||
Balance at the end of the period | 5,322.1 | 4,811.7 | ||
Additional Paid-in Capital | Forward purchase agreement | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Increase in stockholders' deficit | 193.7 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at the beginning of the period | (77.3) | (28.1) | ||
Other comprehensive loss | (7.3) | (5.8) | ||
Balance at the end of the period | (84.6) | (33.9) | ||
Accumulated Earnings (Deficit) | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at the beginning of the period | (7,597.6) | (6,624) | ||
Net loss | (235.5) | (337.4) | ||
Balance at the end of the period | $ (7,833.1) | (6,961.4) | ||
Class A common stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance (in shares) | 516,838,912 | |||
Balance (in shares) | 519,192,389 | |||
Class A common stock | Common Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance at the beginning of the period | $ 5.2 | $ 5.1 | ||
Balance (in shares) | 516,838,912 | 513,979,100 | ||
Stock-based compensation | $ 0.1 | |||
Stock-based compensation (in shares) | 2,353,477 | 2,841,495 | ||
Balance at the end of the period | $ 5.2 | $ 5.2 | ||
Balance (in shares) | 519,192,389 | 516,820,595 | ||
Series A Convertible Participating Preferred Stock | Preferred Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance (in shares) | 7,245,872 | 5,139,791 | ||
Number of stock issued (In shares) | 492,880 | |||
Stock-based compensation (in shares) | 26,944 | 28,415 | ||
Balance (in shares) | 9,741,909 | 5,168,206 | ||
Series A Convertible Participating Preferred Stock | Preferred Stock | Forward purchase agreement | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Number of stock issued (In shares) | 1,976,213 | |||
AMC Preferred Stock Depository Shares | Preferred Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance (in shares) | 724,587,058 | 513,979,100 | ||
Number of stock issued (In shares) | 49,287,989 | |||
Stock-based compensation (in shares) | 2,694,450 | 2,841,495 | ||
Balance (in shares) | 974,190,794 | 516,820,595 | ||
AMC Preferred Stock Depository Shares | Preferred Stock | Forward purchase agreement | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Number of stock issued (In shares) | 197,621,297 | |||
AMC Preferred Equity Units | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Net proceeds from AMC Preferred Equity Units issuance | $ 75.1 | $ 75.1 | ||
AMC Preferred Equity Units | New Notes | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Number of stock issued (In shares) | 197,621,297 | |||
AMC Preferred Equity Units | Board of Directors | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Shares awarded | 153,696 | 41,650 | ||
RSUs and PSUs vested | 2,540,754 | 2,799,845 |
INCOME TAXES - narrative (Detai
INCOME TAXES - narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
Effective income tax rate (as a percent) | (0.80%) | |
Net deferred tax liabilities | $ 32.7 | $ 32.1 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value on a recurring basis (Details) $ in Millions | Mar. 31, 2023 USD ($) Y $ / shares |
Price Volatility Rate | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Estimates to value Warrants | 122.2 |
Discount yield | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Estimates to value Warrants | 3.7 |
Expected Term | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Estimates to value Warrants | Y | 4 |
Exercise Price | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Estimates to value Warrants | $ / shares | 1.068 |
Recurring basis | |
Other long-term assets: | |
Total assets at fair value | $ 17 |
Recurring basis | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Investments measured at net asset value | 6.9 |
Recurring basis | Hycroft | |
Other long-term assets: | |
The company's recorded investment | 10.1 |
Recurring basis | Quoted prices in active market (Level 1) | |
Other long-term assets: | |
Total assets at fair value | 10.1 |
Recurring basis | Quoted prices in active market (Level 1) | Hycroft | |
Other long-term assets: | |
The company's recorded investment | 10.1 |
Recurring basis | Significant unobservable inputs (Level 3) | |
Other long-term assets: | |
Total assets at fair value | 6.9 |
Recurring basis | Significant unobservable inputs (Level 3) | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Investments measured at net asset value | $ 6.9 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair value on a nonrecurring basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other Fair Value Measurement Disclosures | ||
Current maturities of corporate borrowings, carrying value | $ 20 | $ 20 |
Corporate borrowings, noncurrent, carrying value | 4,862 | $ 5,120.8 |
Total Carrying Value. | ||
Other Fair Value Measurement Disclosures | ||
Current maturities of corporate borrowings, carrying value | 20 | |
Corporate borrowings, noncurrent, carrying value | 4,862 | |
Significant other observable inputs (Level 2) | ||
Other Fair Value Measurement Disclosures | ||
Current maturities of corporate borrowings, fair value | 14.6 | |
Corporate borrowings, noncurrent, fair value | $ 3,266.3 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) ر.س in Millions, $ in Millions | 3 Months Ended | ||||
Dec. 30, 2022 USD ($) | Dec. 30, 2022 SAR (ر.س) | Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
OPERATING SEGMENT | |||||
Number of reportable segments | segment | 2 | ||||
Financial information by reportable operating segment | |||||
Revenues | $ 954.4 | $ 785.7 | |||
Adjusted EBITDA | 7.1 | (61.7) | |||
Capital expenditures | 47.4 | 34.8 | |||
Long-term assets, net | 8,107.1 | $ 8,233.5 | |||
SCC | |||||
OPERATING SEGMENT | |||||
Equity method investment, amount sold | $ 30 | ر.س 112.5 | |||
Financial information by reportable operating segment | |||||
Percentage of equity method investment sold | 10% | 10% | |||
U. S. markets | |||||
Financial information by reportable operating segment | |||||
Revenues | 704.5 | 563.1 | |||
Adjusted EBITDA | 10.9 | (43.4) | |||
U. S. markets | Operating Segments | |||||
Financial information by reportable operating segment | |||||
Capital expenditures | 34.6 | 21.1 | |||
Long-term assets, net | 6,026.1 | 6,135.9 | |||
International markets. | |||||
Financial information by reportable operating segment | |||||
Revenues | 249.9 | 222.6 | |||
Adjusted EBITDA | (3.8) | (18.3) | |||
International markets. | Operating Segments | |||||
Financial information by reportable operating segment | |||||
Capital expenditures | 12.8 | $ 13.7 | |||
Long-term assets, net | $ 2,081 | $ 2,097.6 |
OPERATING SEGMENTS - Reconcilia
OPERATING SEGMENTS - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 07, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING SEGMENT | |||
Net loss | $ (235.5) | $ (337.4) | |
Income tax benefit | 1.9 | 0.1 | |
Interest expense | 101.1 | 92.4 | |
Depreciation and amortization | 93.6 | 98.7 | |
Certain operating expense | 1.1 | 2.3 | |
Equity in (earnings) loss of non-consolidated entities | (1.4) | 5.1 | |
Cash distributions from non-consolidated entities | 0.7 | ||
Attributable EBITDA | 0.5 | 0.2 | |
Investment income | (13.5) | (63.4) | |
Other expense | 42.8 | 139.8 | |
Other non-cash rent benefit | (9.6) | (7.1) | |
General and administrative - unallocated: | |||
Merger, acquisition and other costs | 0.2 | 0.4 | |
Stock-based compensation expense | 25.9 | 6.5 | |
Adjusted EBITDA | 7.1 | (61.7) | |
(Gain) loss on extinguishment of debt | $ (65.1) | (65.1) | 135 |
interest income | 2.3 | ||
litigation contingency reserve charge | 116.6 | ||
Hycroft | |||
OPERATING SEGMENT | |||
Investment income | 2.3 | (28.8) | |
Investment in Hycroft Mining Holding Corporation Warrants | |||
OPERATING SEGMENT | |||
Investment income | (35.1) | ||
General and administrative - unallocated: | |||
Impairment of long-lived assets | 2.3 | ||
Attributable EBITDA | |||
OPERATING SEGMENT | |||
Income tax benefit | (0.1) | ||
Depreciation and amortization | 0.2 | 0.8 | |
Equity in (earnings) loss of non-consolidated entities | (1.4) | 5.1 | |
Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures | (1.1) | 0.3 | |
Equity in earnings (loss) of International theatre joint ventures | 0.3 | (4.8) | |
Impairment of long-lived assets | 4.2 | ||
Attributable EBITDA | 0.5 | 0.2 | |
Investment income | (0.1) | ||
Other expense (income) | |||
General and administrative - unallocated: | |||
(Gain) loss on extinguishment of debt | (65.1) | 135 | |
Foreign currency transaction (gains) losses | (8.7) | $ 4.8 | |
SCC | |||
General and administrative - unallocated: | |||
Gain on divestment of equity method investment | $ 15.5 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||||||||
Apr. 02, 2023 | Feb. 20, 2023 item | Jan. 06, 2023 USD ($) | Nov. 30, 2022 USD ($) | Jun. 06, 2022 USD ($) | Sep. 02, 2021 USD ($) | Mar. 31, 2023 USD ($) item | Sep. 14, 2018 $ / shares | Jan. 19, 2018 item | Jan. 12, 2018 item | |
Commitments and contingencies line items | ||||||||||
Number of actions | item | 2 | |||||||||
Number of pending actions | item | 2 | 2 | 2 | |||||||
Litigation settlement amount | $ 18 | |||||||||
Amount received from legal settlement | $ 14 | $ 17.4 | ||||||||
Fee and expense award to Plaintiff's counsel | $ 3.4 | $ 116.6 | ||||||||
Dividends declared | $ / shares | $ 1.55 | |||||||||
litigation contingency reserve charge | 116.6 | |||||||||
Shareholder Litigation | ||||||||||
Commitments and contingencies line items | ||||||||||
Shareholder litigation contingency | 126.6 | |||||||||
litigation contingency reserve charge | 116.6 | |||||||||
Insurance Settlements Receivable | $ 10 | |||||||||
Subsequent Events | ||||||||||
Commitments and contingencies line items | ||||||||||
Stock split conversion ratio | 0.1333 | |||||||||
Subsequent Events | Shareholder Litigation | ||||||||||
Commitments and contingencies line items | ||||||||||
Stock split conversion ratio | 0.1333 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Aug. 04, 2022 shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 shares | |
Numerator: | ||||
Net loss for basic loss per share attributable to AMC Entertainment Holdings, Inc. | $ | $ (235.5) | $ (337.4) | ||
Net loss for diluted loss per share attributable to AMC Entertainment Holdings, Inc. | $ | $ (235.5) | $ (337.4) | ||
Denominator (shares in thousands): | ||||
Weighted average shares for basic loss per common share | 1,373,947,000 | 1,031,820,000 | ||
Weighted average shares for diluted loss per common share | 1,373,947,000 | 1,031,820,000 | ||
Basic loss per common share (in dollars per share) | $ / shares | $ (0.17) | $ (0.33) | ||
Diluted loss per common share (in dollars per share) | $ / shares | $ (0.17) | $ (0.33) | ||
Common stock dividend declared | 1 | |||
Conversion ratio | 0.01 | 0.01 | ||
Preferred stock authorized | 50,000,000 | 50,000,000 | ||
Preferred stock, unallocated authorized shares | 40,000,000 | |||
AMC Preferred Equity Units [Member] | ||||
Denominator (shares in thousands): | ||||
Preferred stock authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued (in shares) | 9,741,909 | 7,245,872 | ||
Preferred stock, unallocated authorized shares | 40,000,000 | |||
Restricted stock unit | ||||
Denominator (shares in thousands): | ||||
Anti-dilutive securities not included in the computations of diluted earnings (loss) per share (in shares) | 5,319,571 | 5,614,052 | ||
Performance Vesting | ||||
Denominator (shares in thousands): | ||||
Anti-dilutive securities not included in the computations of diluted earnings (loss) per share (in shares) | 2,978,289 | 2,953,978 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Apr. 06, 2023 USD ($) | Apr. 02, 2023 | Feb. 07, 2023 USD ($) | May 05, 2023 USD ($) shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Subsequent Event [Line Items] | ||||||
Aggregate Principal Repurchased | $ 103.5 | |||||
Gain on Extinguishment | 65.1 | $ 65.1 | $ (135) | |||
Accrued interest paid | 1.9 | |||||
Related party transactions | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate Principal Repurchased | 46 | |||||
Gain on Extinguishment | 27.6 | |||||
Accrued interest paid | 0.8 | |||||
Non-related party transactions | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate Principal Repurchased | 57.5 | |||||
Gain on Extinguishment | 37.5 | |||||
Accrued interest paid | 1.1 | |||||
Second Lien Notes due 2026 | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount | 100 | |||||
Second Lien Notes due 2026 | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount | 100 | |||||
Second Lien Notes due 2026 | Related party transactions | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate Principal Repurchased | 41.9 | |||||
Gain on Extinguishment | 25.3 | |||||
Accrued interest paid | 0.7 | |||||
Second Lien Notes due 2026 | Non-related party transactions | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate Principal Repurchased | 57.5 | |||||
Gain on Extinguishment | 37.5 | |||||
Accrued interest paid | $ 1.1 | |||||
Subsequent Events | ||||||
Subsequent Event [Line Items] | ||||||
Gross proceeds | $ 34.2 | |||||
Number of shares issued | shares | 21.2 | |||||
Payment of stock issue costs | $ 0.9 | |||||
Stock split conversion ratio | 0.1333 | |||||
Subsequent Events | Second Lien Notes due 2026 | Related party transactions | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount | $ 9 | |||||
Aggregate Principal Repurchased | 6.2 | |||||
Gain on Extinguishment | 4.4 | |||||
Accrued interest paid | $ 0.3 |