Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 08, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | |
Title of 12(b) Security | Class A common stock | |
Trading Symbol | AMC | |
Security Exchange Name | NYSE | |
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 Common Stock, Shares Outstanding | 295,587,747 | |
Entity Central Index Key | 0001411579 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Total revenues | $ 951.4 | $ 954.4 |
Operating costs and expenses | ||
Operating expense, excluding depreciation and amortization below | 393.8 | 383.2 |
Rent | 224.5 | 205.7 |
General and administrative: | ||
Merger, acquisition and other costs | (0.1) | 0.2 |
Other, excluding depreciation and amortization below | 57.7 | 72.3 |
Depreciation and amortization | 81.6 | 93.6 |
Operating costs and expenses | 1,059.8 | 1,062.6 |
Operating loss | (108.4) | (108.2) |
Other expense, net: | ||
Other expense (income) | (42.8) | 37.8 |
Interest expense: | ||
Corporate borrowings | 91 | 90.7 |
Finance lease obligations | 0.9 | 0.9 |
Non-cash NCM exhibitor services agreement | 9.3 | 9.5 |
Investment income | (5.1) | (13.5) |
Total other expense, net | 53.3 | 125.4 |
Net loss before income taxes | (161.7) | (233.6) |
Income tax provision | 1.8 | 1.9 |
Net loss | $ (163.5) | $ (235.5) |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.62) | $ (1.71) |
Diluted (in dollars per share) | $ (0.62) | $ (1.71) |
Average shares outstanding: | ||
Basic (Shares in thousands) | 263,411 | 137,395 |
Diluted (Shares in thousands) | 263,411 | 137,395 |
Admissions | ||
Revenues | ||
Total revenues | $ 530.5 | $ 534.1 |
Operating costs and expenses | ||
Operating costs and expenses | 239.3 | 246.2 |
Food and beverage | ||
Revenues | ||
Total revenues | 321.2 | 328.7 |
Operating costs and expenses | ||
Operating costs and expenses | 63 | 61.4 |
Other theatre: | ||
Revenues | ||
Total revenues | $ 99.7 | $ 91.6 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net loss | $ (163.5) | $ (235.5) |
Other comprehensive loss: | ||
Unrealized foreign currency translation adjustments | (35.8) | (7.2) |
Pension adjustments: | ||
Net loss (gain) arising during the period | 0.4 | (0.1) |
Other comprehensive loss | (35.4) | (7.3) |
Total comprehensive loss | $ (198.9) | $ (242.8) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 624.2 | $ 884.3 |
Restricted cash | 36.5 | 27.1 |
Receivables, net | 140.4 | 203.7 |
Other current assets | 111.9 | 88 |
Total current assets | 913 | 1,203.1 |
Property, net | 1,504.3 | 1,560.4 |
Operating lease right-of-use assets, net | 3,459.5 | 3,544.5 |
Intangible assets, net | 145.8 | 146.7 |
Goodwill | 2,322.1 | 2,358.7 |
Other long-term assets | 194 | 195.8 |
Total assets | 8,538.7 | 9,009.2 |
Current liabilities: | ||
Accounts payable | 250.2 | 320.5 |
Accrued expenses and other liabilities | 319.5 | 350.8 |
Deferred revenues and income | 394.2 | 421.8 |
Current maturities of corporate borrowings | 25 | 25.1 |
Current maturities of finance lease liabilities | 5.2 | 5.4 |
Current maturities of operating lease liabilities | 508.9 | 508.8 |
Total current liabilities | 1,503 | 1,632.4 |
Corporate borrowings | 4,518 | 4,552.3 |
Finance lease liabilities | 48 | 50 |
Operating lease liabilities | 3,885 | 4,000.7 |
Exhibitor services agreement | 481.1 | 486.6 |
Deferred tax liability, net | 32.8 | 32.4 |
Other long-term liabilities | 101.8 | 102.7 |
Total liabilities | 10,569.7 | 10,857.1 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Class A common stock ($.01 par value, 550,000,000 shares authorized; 263,604,984 shares issued and outstanding as of March 31, 2024; 550,000,000 authorized; 260,574,392 shares issued and outstanding as of December 31, 2023) | 2.6 | 2.6 |
Additional paid-in capital | 6,237.7 | 6,221.9 |
Accumulated other comprehensive loss | (113.6) | (78.2) |
Accumulated deficit | (8,157.7) | (7,994.2) |
Total stockholders' deficit | (2,031) | (1,847.9) |
Total liabilities and stockholders' deficit | $ 8,538.7 | $ 9,009.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, share authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding ( in shares) | 0 | 0 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, share authorized (in shares) | 550,000,000 | 550,000,000 |
Common stock, shares issued (in shares) | 263,604,984 | 260,574,392 |
Common stock, shares outstanding (in shares) | 263,604,984 | 260,574,392 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (163.5) | $ (235.5) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 81.6 | 93.6 |
Gain on extinguishment of debt | (5.8) | (65.1) |
Deferred income taxes | 0.5 | 0.6 |
Unrealized loss on investments in Hycroft | 1 | 4.6 |
Amortization of net premium on corporate borrowings to interest expense | (11.2) | (15.2) |
Amortization of deferred financing costs to interest expense | 2.5 | 2.3 |
Non-cash portion of stock-based compensation | 4.3 | 25.9 |
Gain on disposition of Saudi Cinema Company | (15.5) | |
Equity in earnings from non-consolidated entities, net of distributions | (2.4) | (1.1) |
Landlord contributions | 4.6 | 6.4 |
Other non-cash rent benefit | (11.7) | (9.6) |
Deferred rent | (16.4) | (38.6) |
Net periodic benefit cost | 0.7 | 0.4 |
Non-cash shareholder litigation expense | 116.6 | |
Change in assets and liabilities: | ||
Receivables | 58.8 | 67 |
Other assets | (23.7) | (28.5) |
Accounts payable | (48.1) | (65.2) |
Accrued expenses and other liabilities | (62.5) | (21) |
Other, net | 3 | (12) |
Net cash used in operating activities | (188.3) | (189.9) |
Cash flows from investing activities: | ||
Capital expenditures | (50.5) | (47.4) |
Proceeds from disposition of Saudi Cinema Company | 30 | |
Proceeds from disposition of long-term assets | 0.8 | |
Other, net | 0.5 | |
Net cash used in investing activities | (50) | (16.6) |
Cash flows from financing activities: | ||
Scheduled principal payments under Term Loan due 2026 | (5) | (5) |
Net (disbursements) proceeds from equity issuances | (0.5) | 146.6 |
Principal payments under finance lease obligations | (1.2) | (1.6) |
Cash used to pay for deferred financing costs | (0.1) | (1.5) |
Taxes paid for restricted unit withholdings | (2.2) | (13.1) |
Net cash (used in) provided by financing activities | (9) | 68.9 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (3.4) | 1.9 |
Net decrease in cash and cash equivalents and restricted cash | (250.7) | (135.7) |
Cash and cash equivalents and restricted cash at beginning of period | 911.4 | 654.4 |
Cash and cash equivalents and restricted cash at end of period | 660.7 | 518.7 |
Cash paid during the period for: | ||
Interest | 77.8 | 77.3 |
Income taxes paid, net | 0.2 | 2.1 |
Schedule of non-cash activities: | ||
Construction payables at period end | 23.8 | 26.8 |
Other third-party equity issuance costs payable | 0.1 | 3.8 |
Extinguishment of Second Lien Notes due 2026 in exchange for share issuance | $ 19.9 | 118.6 |
Second Lien Notes due 2026 | ||
Cash flows from financing activities: | ||
Repurchase of Senior Subordinated Notes due 2026 | (54.8) | |
Senior Subordinated Notes due 2026 | ||
Cash flows from financing activities: | ||
Repurchase of Senior Subordinated Notes due 2026 | $ (1.7) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
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. The condensed consolidated financial statements include the accounts of Holdings and all subsidiaries and should be read in conjunction with the Company’s Annual Report on Form 10–K for the year ended December 31, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. The Company manages its business under two reportable segments for its theatrical exhibition operations, U.S. markets and International markets. The accompanying condensed consolidated balance sheet as of December 31, 2023, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10–Q. Accordingly, they do not include all of the information and footnotes required by the accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, these interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial position and results of operations. Due to the seasonal nature of the Company’s business, results for the three months ended March 31, 2024, are not necessarily indicative of the results to be expected for the year ending December 31, 2023. Reverse Stock Split one one Accordingly, all references made to share, per share, unit, per unit, or common share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split. References made to AMC Preferred Equity Units have been retroactively adjusted to reflect the effect of the reverse stock split on their equivalent Common Stock shares. On August 25, 2023, all of the Company’s outstanding AMC Preferred Equity Units converted into shares of Common Stock. Liquidity. The Company’s cash burn rates are not sustainable long-term. In order to achieve sustainable net positive operating cash flows and long-term profitability, the Company believes that operating revenues will need to increase to levels in line with pre-COVID-19 operating revenues. North American box office grosses were down approximately 32% for the three months ended March 31, 2024, compared to the three months ended March 31, 2019. Until such time as the Company is able to achieve sustainable net positive operating cash flow, it is difficult to estimate the Company’s future cash burn rates and liquidity requirements. Depending on the Company’s assumptions regarding the timing and ability to achieve 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 the Company’s liquidity requirements and future cash burn rates will be correct, and the 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. Additionally, the effects of labor stoppages, including but not limited to the Writers Guild of America strike and the Screen Actors Guild – American Federation of Television and Radio Artists strike that occurred during 2023 cannot be reasonably estimated and have had, and are expected to continue to have, a negative impact in 2024 on the film slate for exhibition, the Company’s future liquidity and cash burn rates. 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 expects, from time to time, to continue to seek to retire or purchase its outstanding debt through cash purchases and/or exchanges for equity 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. During the three months ended March 31, 2024, the Company executed a debt for equity exchange transaction. This transaction was treated as an early extinguishment of the debt. In accordance with ASC 470-50-40-3 the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged. The below table summarizes the debt for equity exchange. See Note 6—Corporate Borrowings and Finance Lease Liabilities and Note 7—Stockholders’ Deficit. Shares of Aggregate Principal Common Stock Gain on Accrued Interest (In millions, except for share data) Exchanged Exchanged Extinguishment Exchanged Second Lien Notes due 2026 $ 17.5 2,541,250 $ 5.8 $ 0.1 Cash and Cash Equivalents. Restricted Cash. As of (In millions) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 624.2 $ 884.3 Restricted cash 36.5 27.1 Total cash and cash equivalents and restricted cash in the statement of cash flows $ 660.7 $ 911.4 Accumulated Other Comprehensive Loss. Foreign (In millions) Currency Pension Benefits Total Balance December 31, 2023 $ (77.7) $ (0.5) $ (78.2) Other comprehensive loss (35.8) 0.4 (35.4) Balance March 31, 2024 $ (113.5) $ (0.1) $ (113.6) Accumulated Depreciation and Amortization. Other Expense (Income). Three Months Ended (In millions) March 31, 2024 March 31, 2023 Foreign currency transaction (gains) losses $ 3.2 (8.7) Non-operating components of net periodic benefit cost 0.7 0.4 Gain on extinguishment - Senior Subordinated Notes due 2026 — (2.3) Gain on extinguishment - Second Lien Notes due 2026 (5.8) (62.8) Equity in earnings of non-consolidated entities (3.7) (1.4) Derivative stockholder settlement — (14.0) Shareholder litigation — 126.6 Vendor dispute settlement (36.2) — Other settlement proceeds (1.0) — Total other expense (income) $ (42.8) $ 37.8 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
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 or 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 following table reflects the lease costs for the periods presented: Three Months Ended March 31, March 31, (In millions) Consolidated Statements of Operations 2024 2023 Operating lease cost Theatre properties Rent $ 197.7 $ 184.2 Theatre properties Operating expense 0.2 0.3 Equipment Operating expense 6.7 3.1 Office and other General and administrative: other 1.3 1.3 Finance lease cost Amortization of finance lease assets Depreciation and amortization 0.5 0.5 Interest expense on lease liabilities Finance lease obligations 0.9 0.9 Variable lease cost Theatre properties Rent 26.8 21.5 Equipment Operating expense 13.4 13.3 Total lease cost $ 247.5 $ 225.1 Cash flow and supplemental information is presented below: Three Months Ended March 31, March 31, (In millions) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in finance leases $ (0.9) $ (0.8) Operating cash flows used in operating leases (234.4) (242.8) Financing cash flows used in finance leases (1.2) (1.6) Landlord contributions: Operating cashflows provided by operating leases 4.6 6.4 Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for new operating lease liabilities 32.8 16.0 (1) Includes lease extensions and option exercises. The following table represents the weighted-average remaining lease term and discount rate as of March 31, 2024: Weighted Average Weighted Average Remaining Discount Lease Term and Discount Rate Lease Term (years) Rate Operating leases 8.6 10.6% Finance leases 13.2 6.4% Minimum annual payments and the net present value thereof as of March 31, 2024, are as follows: Operating Lease Finance Lease (In millions) Payments Payments Nine months ending December 31, 2024 $ 686.9 $ 6.2 2025 889.4 7.6 2026 826.4 7.5 2027 761.6 7.5 2028 675.8 7.1 2029 575.9 7.1 Thereafter 2,219.9 38.4 Total lease payments 6,635.9 81.4 Less imputed interest (2,242.0) (28.2) Total operating and finance lease liabilities, respectively $ 4,393.9 $ 53.2 As of March 31, 2024, the Company had signed additional operating lease agreements for two theatres that have not yet commenced. These leases have terms ranging from 15 to 20 years and total lease payments of approximately $59.5 million. The timing of the 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, 2024 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 3—REVENUE RECOGNITION Disaggregation of Revenue. Three Months Ended (In millions) March 31, 2024 March 31, 2023 Major revenue types Admissions $ 530.5 $ 534.1 Food and beverage 321.2 328.7 Other theatre: Screen advertising 30.3 30.9 Other 69.4 60.7 Other theatre 99.7 91.6 Total revenues $ 951.4 $ 954.4 Three Months Ended (In millions) March 31, 2024 March 31, 2023 Timing of revenue recognition Products and services transferred at a point in time $ 858.5 $ 871.8 Products and services transferred over time 92.9 82.6 Total revenues $ 951.4 $ 954.4 (1) Amounts primarily include subscription and advertising revenues. The following tables provide the balances of receivables, net and deferred revenues and income as of March 31, 2024, and December 31, 2023: (In millions) March 31, 2024 December 31, 2023 Current assets Receivables related to contracts with customers $ 72.0 $ 113.5 Miscellaneous receivables 68.4 90.2 Receivables, net $ 140.4 $ 203.7 (In millions) March 31, 2024 December 31, 2023 Current liabilities Deferred revenues related to contracts with customers $ 388.0 $ 415.3 Miscellaneous deferred income 6.2 6.5 Deferred revenues and income $ 394.2 $ 421.8 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, 2023 $ 415.3 Cash received in advance 66.3 Customer loyalty rewards accumulated, net of expirations: Admission revenues 4.5 Food and beverage 7.2 Other theatre (0.5) Reclassification to revenue as the result of performance obligations satisfied: Admission revenues (61.2) Food and beverage (19.0) Other theatre (22.3) Foreign currency translation adjustment (2.3) Balance March 31, 2024 $ 388.0 (1) Includes movie tickets, food and beverage, gift cards, exchange tickets, subscription membership fees, and other loyalty membership fees. (2) Amount of rewards accumulated, net of expirations, that are attributed to loyalty programs. (3) Amount of rewards redeemed that are attributed to gift cards, exchange tickets, movie tickets, and loyalty programs. (4) Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, subscription membership fees, and loyalty program membership fees. 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, 2023 $ 486.6 Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied (5.5) Balance March 31, 2024 $ 481.1 (1) Represents the carrying amount of the National CineMedia, LLC (“NCM”) common units that were previously received under the annual Common Unit Adjustment (“CUA”) and subsequent adjustments related to the NCM bankruptcy, as discussed in greater detail below. 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. NCM Bankruptcy 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, 2024 | |
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, 2023 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,589.5 $ (1,027.3) $ 562.2 $ 4,662.1 $ (2,303.4) $ 2,358.7 Currency translation adjustment — — — (45.4) 8.8 (36.6) (45.4) 8.8 (36.6) Balance March 31, 2024 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,544.1 $ (1,018.5) $ 525.6 $ 4,616.7 $ (2,294.6) $ 2,322.1 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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 50.0% 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, 2024 include interests in Digital Cinema Distribution Coalition, LLC of 14.6%, AC JV, LLC (“AC JV”), owner of Fathom Events, of 32.0%, SV Holdco LLC, owner of Screenvision, of 18.4%, Digital Cinema Media Ltd. (“DCM”) of 50.0%, Handelsbolaget Svenska Bio Lidingo of 50.0%, Bergen Kino AS for 49.0%, Odeon Kino Stavanger/Sandnes AS of 49.0%, Capa Kinoreklame AS (“Capa”) of 50.0% and Vasteras Biografer (“Vasteras”) of 50.0%. The Company also has partnership interests in four U.S. motion picture theatres and approximately 50.0% interests in 62 theatres in Europe. Indebtedness held by equity method investees is non-recourse to the Company. During the three months ended March 31, 2024 and March 31, 2023, the Company recorded equity in earnings of non-consolidated entities of $(3.7) million and $(1.4) million, respectively. Related Party Transactions The Company recorded the following related party transactions with equity method investees: As of As of (In millions) March 31, 2024 December 31, 2023 Due from DCM for on-screen advertising revenue $ 1.4 $ 3.3 Loan receivable from DCM 0.6 0.6 Due to AC JV for Fathom Events programming (2.9) (2.3) Loan receivable from Vasteras 1.0 1.0 Due from Capa for on-screen advertising revenue — 1.4 Due to Vasteras (1.0) (0.9) Due to U.S. theatre partnerships (0.6) (0.6) Three Months Ended (In millions) Consolidated Statements of Operations March 31, 2024 March 31, 2023 DCM screen advertising revenues Other revenues $ 3.3 $ 3.5 DCDC content delivery services Operating expense 0.3 0.3 Gross exhibition cost on AC JV Fathom Events programming Film exhibition costs 7.2 3.0 Screenvision screen advertising revenues Other revenues 1.3 1.5 Investment in Hycroft The Company holds 2.4 million units of Hycroft Mining Holding Corporation (NASDAQ: HYMC) (“Hycroft”), with each unit consisting of one common share of Hycroft and one common share purchase warrant. Each warrant is exercisable for one common share of Hycroft at a price of $10.68 per share over a 5-year one-for-ten The Company accounts for the common shares of Hycroft under the equity method and has elected the fair value option in accordance with ASC 825-10. The Company accounts for the warrants as derivatives in accordance with ASC 815. Accordingly, the fair value of the investments in Hycroft are remeasured at each subsequent reporting period and unrealized gains and losses are reported in investment income. During the three months ended March 31, 2024 and March 31, 2023, the Company recorded unrealized loss in investment income of $1.0 million and $4.6 million, respectively. See Note 9 — |
CORPORATE BORROWINGS AND FINANC
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | NOTE 6—CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES A summary of the carrying value of corporate borrowings and finance lease liabilities is as follows: (In millions) March 31, 2024 December 31, 2023 First Lien Secured Debt: Senior Secured Credit Facility-Term Loan due 2026 (8.435% as of March 31, 2024 and 8.474% as of December 31, 2023) $ 1,900.0 $ 1,905.0 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 951.4 968.9 Subordinated Debt: 6.375% Senior Subordinated Notes due 2024 (£4.0 million par value as of March 31, 2024) 5.0 5.1 5.75% Senior Subordinated Notes due 2025 98.3 98.3 5.875% Senior Subordinated Notes due 2026 51.5 51.5 6.125% Senior Subordinated Notes due 2027 125.5 125.5 Total principal amount of corporate borrowings $ 4,481.7 $ 4,504.3 Finance lease liabilities 53.2 55.4 Deferred financing costs (29.3) (31.1) Net premium 90.6 104.2 Total carrying value of corporate borrowings and finance lease liabilities $ 4,596.2 $ 4,632.8 Less: Current maturities of corporate borrowings (25.0) (25.1) Current maturities of finance lease liabilities (5.2) (5.4) Total noncurrent carrying value of corporate borrowings and finance lease liabilities $ 4,566.0 $ 4,602.3 (1) The following table provides the net premium (discount) amounts of corporate borrowings: March 31, December 31, (In millions) 2024 2023 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 $ 118.7 $ 133.9 Senior Secured Credit Facility-Term Loan due 2026 (2.9) (3.3) 12.75% Odeon Senior Secured Notes due 2027 (25.2) (26.4) Net premium $ 90.6 $ 104.2 The following table provides the principal payments required and maturities of corporate borrowing as of March 31, 2024: Principal Amount of Corporate (In millions) Borrowings Nine months ended December 31, 2024 $ 20.0 2025 118.3 2026 2,867.9 2027 525.5 2028 — 2029 950.0 Total $ 4,481.7 Debt Repurchases and Exchanges During the three months ended March 31, 2024, the Company executed a debt for equity exchange transaction. This transaction was treated as an early extinguishment of debt. In accordance with ASC 470-50-40-3, the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged. The below table summarizes the debt for equity exchange. Shares of Aggregate Principal Common Stock Gain on Accrued Interest (In millions, except for share data) Exchanged Exchanged Extinguishment Exchanged Second Lien Notes due 2026 $ 17.5 2,541,250 $ 5.8 $ 0.1 The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including related party transactions with Antara: 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 See Note 7—Stockholders’ Deficit for discussion of the $100.0 million aggregate principal amount of Second Lien Notes due 2026 repurchased from Antara in exchange for 9,102,619 AMC Preferred Equity Units not included in the table above. Financial Covenants As of March 31, 2024, the Company was subject to a minimum liquidity requirement of $100.0 million as a condition to the financial covenant suspension period under the Credit Agreement. As of April 19, 2024, and in anticipation of the maturity of the Senior Secured Revolving Credit Facility, the Company voluntarily terminated the commitments under the Senior Secured Revolving Credit Facility in full and paid off any remaining obligations with respect to the Senior Secured Revolving Credit Facility. The financial covenants and related covenant suspension conditions are no longer in effect pursuant to the terms of the Credit Agreement. The termination of the Senior Secured Revolving Credit Facility does not otherwise affect the senior secured term loan facility under the Credit Agreement. The Company currently does not expect to replace the Senior Secured Revolving Credit Facility. |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' DEFICIT | |
STOCKHOLDERS' EQUITY | NOTE 7—STOCKHOLDERS’ DEFICIT Reverse Stock Split On August 24, 2023, the Company effectuated a reverse stock split at a ratio of one one Accordingly, all references made to share, per share, unit, per unit, or common share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effect of the reverse stock split. References made to AMC Preferred Equity Units have been retroactively adjusted to reflect the effect of the reverse stock split on their equivalent Common Stock shares. On August 25, 2023, all of the Company’s outstanding AMC Preferred Equity Units converted into shares of Common Stock. Share Issuances 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 4.9 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. Antara Transactions On December 22, 2022, the Company entered into the Forward Purchase Agreement with Antara pursuant to which the Company agreed to (i) sell to Antara 10,659,511 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 9,102,619 AMC Preferred Equity Units. On February 7, 2023, the Company issued 19,762,130 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. AMC Preferred Equity Units Each AMC Preferred Equity Unit was a depositary share and represented an interest in a share of Series A Convertible Participating Preferred Stock evidenced by a depositary receipt pursuant to a deposit agreement. Each AMC Preferred Equity Unit was designed to have the same economic and voting rights as a share of Common Stock. On August 25, 2023, all outstanding AMC Preferred Equity Units were converted to Common Stock. As of March 31, 2024, the Company has 50,000,000 authorized shares of preferred stock available for issuance. 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) 2024 2023 Equity classified awards: Special awards expense $ 2.1 $ 20.2 Board of director stock award expense — 0.9 Restricted stock unit expense 2.1 3.0 Performance stock unit expense 0.1 1.7 Total equity classified awards: 4.3 25.8 Liability classified awards: Restricted and performance stock unit expense — 0.1 Total liability classified awards: — 0.1 Total stock-based compensation expense $ 4.3 $ 25.9 As of March 31, 2024, the estimated remaining unrecognized compensation cost related to stock-based compensation grants was approximately $10.9 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 1.1 years. Special Awards On February 22, 2024, the compensation committee of AMC’s Board of Directors (“Compensation Committee”) approved modification of the performance goals applicable to all 2023 Tranche Year PSU awards. This was accounted for as a modification to the 2023 Tranche Year PSU awards which lowered the Adjusted EBITDA and free cash flow performance targets such that 200% vesting was achieved for both targets. This modification resulted in the immediate additional vesting of 478,055 2023 Trance Year PSUs (21,829 cash settled units and 456,226 equity settled units). This was treated as a Type 3 modification (improbable-to-probable) which required the Company to recognize additional stock compensation expense based on the modification date fair values of the incremental PSUs. During the three months ended March 31, 2024, the Company recognized $2.1 million of stock compensation expense related to these awards. On February 23, 2023, the Compensation Committee approved special awards in lieu of vesting of the 2022 Tranche Year PSU awards. The special awards were accounted for as modification to the 2022 Tranche Year PSU awards which lowered the Adjusted EBITDA and free cash flow performance targets such that 200% vesting was achieved for both targets. This modification resulted in the immediate additional vesting of 238,959 Common Stock PSUs and 238,959 AMC Preferred Equity Unit 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 $14.9 million and $5.3 million, respectively. During the three months ended March 31, 2023, the Company recognized $20.2 million of stock compensation expense related to these awards. Awards Granted in 2024 Performance Stock Unit Awards: 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 equity classified 2023 PSU award grant date fair value for the 2024 Tranche Year award of 105,357 units was $0.5 million and the equity classified 2022 PSU award grant date fair value for the 2024 Tranche Year award of 44,081 units was $0.2 million, measured using performance targets at 100%. Liability Classified Awards Certain PSUs are expected to be settled in cash and accordingly have been classified as liabilities within accrued expenses and other liabilities in the condensed consolidated balance sheets. The liability classified 2023 and 2022 PSU awards for the 2024 Tranche Year were also granted when the annual performance targets were set. The vesting requirements and vesting periods are identical to the equity classified awards described above. The Company recognizes expenses related to these awards based on the fair value of the Common Stock shares, giving effect to the portion of services rendered during the requisite services period. As of March 31, 2024, there were 58,101 nonvested underlying Common Stock RSUs and PSUs related to awards classified as liabilities. There are 43,524 nonvested underlying Common Stock RSUs and PSUs (2024 Tranche Year) that are currently classified as liabilities and 14,577 nonvested underlying Common Stock PSUs (2025 Tranche Year) which have not been granted for accounting purposes as the performance targets for the 2025 PSU Tranche Years have yet to be established. The following table represents the equity classified nonvested RSU and PSU activity for the three months ended March 31, 2024: Weighted Average Common Stock Grant Date RSUs and PSUs (3) Fair Value Nonvested at January 1, 2024 747,423 $ 44.35 Granted 149,481 4.42 Granted - Special Award 456,226 4.42 Vested (246,982) 43.84 Vested - Special Award (242,360) 4.42 Forfeited (1,089) 40.32 Cancelled (228,015) 43.86 Cancelled - Special Award (213,866) 4.42 Nonvested at March 31, 2024 420,818 $ 30.77 Tranche Year 2025 awarded under the 2023 PSU award with grant date fair values to be determined in year 2025 105,099 Total Nonvested at March 31, 2024 525,917 (1) The number of PSU shares granted under the Tranche Year 2024 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. As a result, the Company paid taxes for restricted unit withholdings of approximately $2.2 million during the three months ended March 31, 2024. (3) Includes AMC Preferred Equity Unit RSUs and PSUs that were converted to Common Stock RSUs and PSUs. |
STOCKHOLDERS' DEFICIT | Condensed Consolidated Statements of Stockholders’ Deficit For the Three Months Ended March 31, 2024 Accumulated Class A Voting Additional Other Total AMC Common Stock Paid-in Comprehensive Accumulated Stockholders’ (In millions, except share and per share data) Shares Amount Capital Loss Deficit Deficit Balances December 31, 2023 260,574,392 $ 2.6 $ 6,221.9 $ (78.2) $ (7,994.2) $ (1,847.9) Net loss — — — — (163.5) (163.5) Other comprehensive loss — — — (35.4) — (35.4) Debt for equity exchange 2,541,250 — 14.2 — — 14.2 Taxes paid for restricted unit withholdings — — (2.2) — — (2.2) Share issuance costs — — (0.5) — — (0.5) Stock-based compensation (1) 489,342 — 4.3 — — 4.3 Balances March 31, 2024 263,604,984 $ 2.6 $ 6,237.7 $ (113.6) $ (8,157.7) $ (2,031.0) (1) Vested Common Stock RSUs and PSUs. Condensed Consolidated Statements of Stockholders’ Deficit For the Three Months Ended March 31, 2023 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 (3) Amount Shares Equity Units (3) Amount Capital Loss Deficit Deficit Balances December 31, 2022 51,683,892 $ 0.5 7,245,872 72,458,706 $ 0.1 $ 5,049.8 $ (77.3) $ (7,597.6) $ (2,624.5) Net loss — — — — — — — (235.5) (235.5) Other comprehensive loss — — — — — — (7.3) — (7.3) Share Issuance — — 492,880 4,928,800 — 70.5 — — 70.5 Antara Forward Purchase Agreement (2) — — 1,976,213 19,762,130 — 193.7 — — 193.7 Taxes paid for restricted unit withholdings — — — — — (13.1) — — (13.1) Stock-based compensation (1) 235,346 — 26,944 269,444 — 25.9 — — 25.9 Balances March 31, 2023 51,919,238 $ 0.5 9,741,909 97,419,080 $ 0.1 $ 5,326.8 $ (84.6) $ (7,833.1) $ (2,590.3) (1) Includes 8,555 Common Stock shares and 15,370 AMC Preferred Equity Units awarded to the Board of Directors, 226,791 vested Common Stock RSUs and PSUs, and 254,074 vested 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. (3) Share counts have been retroactively adjusted to reflect the effect of the reverse stock split. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, due to the lingering effects of the COVID-19 pandemic and recent labor stoppages 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 Organization for Economic Co-operation and Development (“OECD”) has issued model rules, which generally provide for a jurisdictional minimum effective tax rate of 15.0%. Various countries have or are in the process of enacting legislation intended to implement the principles effective January 1, 2024. The Company’s adoption of the OECD's global tax reform is not expected to have a material impact on its 2024 income tax expense. 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, 2024, reflects the impact of these valuation allowances against U.S. and international deferred tax assets generated during the period. The actual effective rate for the three months ended March 31, 2024, was (1.1)%. The Company’s consolidated tax rate for the three months ended March 31, 2024, 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 Using Significant Total Carrying Quoted prices in Significant other unobservable Value at active market observable inputs inputs (In millions) March 31, 2024 (Level 1) (Level 2) (Level 3) Other long-term assets: Investment in Hycroft warrants $ 2.8 $ — $ — $ 2.8 Marketable equity securities: Investment in Hycroft 5.2 5.2 — — Total assets at fair value $ 8.0 $ 5.2 $ — $ 2.8 Other Fair Value Measurement Disclosures. Fair Value Measurements at March 31, 2024 Using Significant other Significant Total Carrying Quoted prices in observable unobservable Value at active market inputs inputs (In millions) March 31, 2024 (Level 1) (Level 2) (Level 3) Current maturities of corporate borrowings $ 25.0 $ — $ 21.6 $ — Corporate borrowings 4,518.0 — 3,510.8 — 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, 2024 | |
OPERATING SEGMENTS | |
OPERATING SEGMENTS | NOTE 10—OPERATING SEGMENTS The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. The Company has identified two reportable segments and reporting units for its theatrical exhibition operations, U.S. markets and International markets. The International markets reportable segment has operations in or partial interest in theatres in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Norway, and Denmark. The Company sold its interest in Saudi Arabia in January 2023. See Note 5—Investments for further information. Each segment’s revenue is derived from admissions, food and beverage sales and other ancillary revenues, primarily screen advertising, loyalty membership fees, ticket sales, gift card income and exchange ticket income. The measure of segment profit and loss the Company uses to 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. Below is a breakdown of select financial information by reportable operating segment: Three Months Ended Revenues (In millions) March 31, 2024 March 31, 2023 U.S. markets $ 689.1 $ 704.5 International markets 262.3 249.9 Total revenues $ 951.4 $ 954.4 Three Months Ended Adjusted EBITDA (In millions) March 31, 2024 March 31, 2023 U.S. markets $ (27.6) $ 10.9 International markets (4.0) (3.8) Total Adjusted EBITDA $ (31.6) $ 7.1 (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, 2024 March 31, 2023 U.S. markets $ 31.7 $ 34.6 International markets 18.8 12.8 Total capital expenditures $ 50.5 $ 47.4 As of As of Long-term assets, net (In millions) March 31, 2024 December 31, 2023 U.S. markets $ 5,712.3 $ 5,795.6 International markets 1,913.4 2,010.5 Total long-term assets $ 7,625.7 $ 7,806.1 (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. The following table sets forth a reconciliation of net loss to Adjusted EBITDA: Three Months Ended (In millions) March 31, 2024 March 31, 2023 Net loss $ (163.5) $ (235.5) Plus: Income tax provision 1.8 1.9 Interest expense 101.2 101.1 Depreciation and amortization 81.6 93.6 Certain operating expense 0.5 1.1 Equity in earnings of non-consolidated entities (3.7) (1.4) Cash distributions from non-consolidated entities 1.3 — Attributable EBITDA 0.6 0.5 Investment income (5.1) (13.5) Other expense (income) (38.8) 42.8 Other non-cash rent benefit (11.7) (9.6) General and administrative — unallocated: Merger, acquisition and other costs (0.1) 0.2 Stock-based compensation expense 4.3 25.9 Adjusted EBITDA $ (31.6) $ 7.1 (1) For information regarding the income tax provision, see Note 8—Income Taxes. (2) 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. (3) 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. (4) 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 in theatre operators are 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, 2024 March 31, 2023 Equity in (earnings) of non-consolidated entities $ (3.7) $ (1.4) Less: Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures (3.5) (1.1) Equity in earnings of International theatre joint ventures 0.2 0.3 Income tax benefit — (0.1) Investment expense 0.1 0.1 Depreciation and amortization 0.3 0.2 Attributable EBITDA $ 0.6 $ 0.5 (5) Investment expense (income) during the three months ended March 31, 2024, primarily includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $0.5 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $0.5 million and interest income of $( 6.1) million. Investment expense (income) during the three months ended March 31, 2023 included deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $2.3 million, deterioration in estimated fair value of the Company's investment in warrants to purchase common shares of Hycroft of $2.3 million, and 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. (6) Other expense (income) during the three months ended March 31, 2024, includes a vendor dispute settlement of $(36.2) million, foreign currency transaction losses of $3.2 million and gains on debt extinguishment of $(5.8) million. Other expense (income) during the three months ended March 31, 2023, included a non-cash litigation contingency 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. (7) 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. (8) Merger, acquisition and other costs are excluded as they are non-operating in nature. (9) Non-cash or non-recurring expense included in general and administrative: other. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
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 April 22, 2019, a putative stockholder class and derivative complaint, captioned Lao v. Dalian Wanda Group Co., Ltd. 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 Del. C Allegheny Allegheny Del. C Munoz On February 27, 2023, the Delaware Court of Chancery entered a status quo order that allowed the March 14, 2023 vote on the Charter Amendments to proceed, but precluded the Company from implementing the Charter Amendments pending a ruling by the court on the plaintiffs’ then-anticipated preliminary injunction motion (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, following and subject to AMC’s completion of the Conversion and Reverse Stock Split, to make a non-cash settlement payment to record holders of Common Stock immediately prior to the Conversion (and after giving effect to the Reverse Stock Split) of one contingent on the Status Quo Order being lifted and the Company effecting the Charter Amendments. 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, but on April 5, 2023, the court denied the motion to lift the Status Quo Order. 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 memorialized the settlement that the parties agreed to in the term sheet. On June 29–30, 2023, the court held a settlement hearing to consider whether to approve the settlement as outlined in the Settlement Stipulation. On July 21, 2023, the court issued an opinion which, citing issues with the scope of the release sought under the proposed settlement, declined to approve the settlement as presented. On July 22, 2023, the parties filed an addendum to the Settlement Stipulation in an effort to address the issues with the scope of the release raised by the court and requested that the court approve the settlement with the revised release set forth in the addendum. On August 11, 2023, the court approved the settlement of the Shareholder Litigation and lifted the Status Quo Order. On August 14, 2023, the Company filed the amendment to its Third Amended and Restated Certificate of Incorporation, effective as of August 24, 2023, which was previously approved by the Company’s stockholders at the special meeting held on March 14, 2023 to implement the Charter Amendments. The Reverse Stock Split occurred on August 24, 2023, the conversion of APEs into Common Stock occurred on August 25, 2023, and the Settlement Payment was made on August 28, 2023. On September 15, 2023, the Court entered an order dismissing the Shareholder Litigation in its entirety and with prejudice. On October 13, 2023, a purported Company stockholder who objected to the settlement of the Shareholder Litigation filed a notice of appeal of the Court’s order approving the settlement. As of January 26, 2024, the appeal was fully briefed before the Delaware Supreme Court and oral arguments on the appeal will be held on May 8, 2024. In connection with the Shareholder Litigation, the Company recorded a $126.6 million charge to other expense during the three months ended March 31, 2023. The charge was based on an estimated fair value for the Settlement Payment of $116.6 million and estimated legal fees, net of probable insurance recoveries of $10.0 million as of March 31, 2023. The Company made the Settlement Payment on August 28, 2023, and recorded the disbursement to stockholders’ deficit. The final value of the Settlement Payment was $99.3 million. On August 14, 2023, a putative class action on behalf of APE holders, captioned Simons v. AMC Entertainment Holdings, Inc. On May 4, 2023, the Company filed a lawsuit in the Superior Court of the State of Delaware against seventeen insurers participating in its directors & officers insurance program, seeking recovery for losses incurred in connection with its defense and settlement of the Shareholder Litigation, including the Settlement Payment. The insurance recovery action is captioned, AMC Entertainment Holdings, Inc. v. XL Specialty Insurance Co., et al On October 6, 2023, an action captioned Mathew, et al. v. Citigroup Global Markets, et al. January 9, 2024, the Company filed a motion to dismiss the amended complaint. On January 11, 2024, plaintiffs filed a motion for leave to file a second amended complaint. On January 24, 2024, the Company filed an opposition to plaintiff’s motion for leave to file a second amended complaint. On December 18, 2023, an action captioned Miller, et al. v. AMC Entertainment Holdings, Inc. et al., |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
LOSS PER SHARE | |
LOSS PER SHARE | NOTE 12—LOSS PER SHARE On August 24, 2023, the Company effectuated a reverse stock split at a ratio of one one Accordingly, all references made to share, per share, unit, per unit, or common share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split. References made to AMC Preferred Equity Units have been retroactively adjusted to reflect the effect of the reverse stock split on their equivalent Common Stock shares. 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 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, 2024 March 31, 2023 Numerator: Net loss for basic and diluted loss per share $ (163.5) $ (235.5) Denominator Weighted average shares for basic loss per common share 263,411 137,395 Basic and diluted loss per common share $ (0.62) $ (1.71) Vested RSUs and PSUs have dividend rights identical to the Company’s Common Stock and are treated as outstanding shares for purposes of computing basic and diluted earnings per share. Unvested RSUs of 271,738 for the three months ended March 31, 2024 were not included in the computation of diluted loss per share because they would be anti-dilutive. Unvested RSUs of 531,957 for the three months ended March 31, 2023 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 award agreements if the end of the reporting period were the end of the contingency period. Unvested PSUs of 149,080 for the three months ended March 31, 2024 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. Unvested PSUs of 297,829 at certain performance targets for the three months ended March 31, 2023 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, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 —SUBSEQUENT EVENTS Share Issuance. Termination of Senior Secured Revolving Credit Facility |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION | |
Reverse Stock Split | Reverse Stock Split one one Accordingly, all references made to share, per share, unit, per unit, or common share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split. References made to AMC Preferred Equity Units have been retroactively adjusted to reflect the effect of the reverse stock split on their equivalent Common Stock shares. On August 25, 2023, all of the Company’s outstanding AMC Preferred Equity Units converted into shares of Common Stock. |
Liquidity | Liquidity. The Company’s cash burn rates are not sustainable long-term. In order to achieve sustainable net positive operating cash flows and long-term profitability, the Company believes that operating revenues will need to increase to levels in line with pre-COVID-19 operating revenues. North American box office grosses were down approximately 32% for the three months ended March 31, 2024, compared to the three months ended March 31, 2019. Until such time as the Company is able to achieve sustainable net positive operating cash flow, it is difficult to estimate the Company’s future cash burn rates and liquidity requirements. Depending on the Company’s assumptions regarding the timing and ability to achieve 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 the Company’s liquidity requirements and future cash burn rates will be correct, and the 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. Additionally, the effects of labor stoppages, including but not limited to the Writers Guild of America strike and the Screen Actors Guild – American Federation of Television and Radio Artists strike that occurred during 2023 cannot be reasonably estimated and have had, and are expected to continue to have, a negative impact in 2024 on the film slate for exhibition, the Company’s future liquidity and cash burn rates. 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 expects, from time to time, to continue to seek to retire or purchase its outstanding debt through cash purchases and/or exchanges for equity 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. During the three months ended March 31, 2024, the Company executed a debt for equity exchange transaction. This transaction was treated as an early extinguishment of the debt. In accordance with ASC 470-50-40-3 the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged. The below table summarizes the debt for equity exchange. See Note 6—Corporate Borrowings and Finance Lease Liabilities and Note 7—Stockholders’ Deficit. Shares of Aggregate Principal Common Stock Gain on Accrued Interest (In millions, except for share data) Exchanged Exchanged Extinguishment Exchanged Second Lien Notes due 2026 $ 17.5 2,541,250 $ 5.8 $ 0.1 |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Restricted Cash | Restricted Cash. As of (In millions) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 624.2 $ 884.3 Restricted cash 36.5 27.1 Total cash and cash equivalents and restricted cash in the statement of cash flows $ 660.7 $ 911.4 |
Other Expense (Income) | Other Expense (Income). Three Months Ended (In millions) March 31, 2024 March 31, 2023 Foreign currency transaction (gains) losses $ 3.2 (8.7) Non-operating components of net periodic benefit cost 0.7 0.4 Gain on extinguishment - Senior Subordinated Notes due 2026 — (2.3) Gain on extinguishment - Second Lien Notes due 2026 (5.8) (62.8) Equity in earnings of non-consolidated entities (3.7) (1.4) Derivative stockholder settlement — (14.0) Shareholder litigation — 126.6 Vendor dispute settlement (36.2) — Other settlement proceeds (1.0) — Total other expense (income) $ (42.8) $ 37.8 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. Foreign (In millions) Currency Pension Benefits Total Balance December 31, 2023 $ (77.7) $ (0.5) $ (78.2) Other comprehensive loss (35.8) 0.4 (35.4) Balance March 31, 2024 $ (113.5) $ (0.1) $ (113.6) |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION | |
Schedule of debt for equity exchange | Shares of Aggregate Principal Common Stock Gain on Accrued Interest (In millions, except for share data) Exchanged Exchanged Extinguishment Exchanged Second Lien Notes due 2026 $ 17.5 2,541,250 $ 5.8 $ 0.1 |
Schedule of consolidated statement of cash flows | As of (In millions) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 624.2 $ 884.3 Restricted cash 36.5 27.1 Total cash and cash equivalents and restricted cash in the statement of cash flows $ 660.7 $ 911.4 |
Schedule of change in accumulated other comprehensive income (loss) | Foreign (In millions) Currency Pension Benefits Total Balance December 31, 2023 $ (77.7) $ (0.5) $ (78.2) Other comprehensive loss (35.8) 0.4 (35.4) Balance March 31, 2024 $ (113.5) $ (0.1) $ (113.6) |
Schedule components of other expense (income) | Three Months Ended (In millions) March 31, 2024 March 31, 2023 Foreign currency transaction (gains) losses $ 3.2 (8.7) Non-operating components of net periodic benefit cost 0.7 0.4 Gain on extinguishment - Senior Subordinated Notes due 2026 — (2.3) Gain on extinguishment - Second Lien Notes due 2026 (5.8) (62.8) Equity in earnings of non-consolidated entities (3.7) (1.4) Derivative stockholder settlement — (14.0) Shareholder litigation — 126.6 Vendor dispute settlement (36.2) — Other settlement proceeds (1.0) — Total other expense (income) $ (42.8) $ 37.8 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
Schedule of components of lease costs | Three Months Ended March 31, March 31, (In millions) Consolidated Statements of Operations 2024 2023 Operating lease cost Theatre properties Rent $ 197.7 $ 184.2 Theatre properties Operating expense 0.2 0.3 Equipment Operating expense 6.7 3.1 Office and other General and administrative: other 1.3 1.3 Finance lease cost Amortization of finance lease assets Depreciation and amortization 0.5 0.5 Interest expense on lease liabilities Finance lease obligations 0.9 0.9 Variable lease cost Theatre properties Rent 26.8 21.5 Equipment Operating expense 13.4 13.3 Total lease cost $ 247.5 $ 225.1 |
Schedule of cash flow and supplemental information | Three Months Ended March 31, March 31, (In millions) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in finance leases $ (0.9) $ (0.8) Operating cash flows used in operating leases (234.4) (242.8) Financing cash flows used in finance leases (1.2) (1.6) Landlord contributions: Operating cashflows provided by operating leases 4.6 6.4 Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for new operating lease liabilities 32.8 16.0 (1) Includes lease extensions and option exercises. |
Schedule of weighted average remaining lease term and discount rate | Weighted Average Weighted Average Remaining Discount Lease Term and Discount Rate Lease Term (years) Rate Operating leases 8.6 10.6% Finance leases 13.2 6.4% |
Schedule of minimum annual payments required under existing leases | Operating Lease Finance Lease (In millions) Payments Payments Nine months ending December 31, 2024 $ 686.9 $ 6.2 2025 889.4 7.6 2026 826.4 7.5 2027 761.6 7.5 2028 675.8 7.1 2029 575.9 7.1 Thereafter 2,219.9 38.4 Total lease payments 6,635.9 81.4 Less imputed interest (2,242.0) (28.2) Total operating and finance lease liabilities, respectively $ 4,393.9 $ 53.2 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Disaggregation of Revenue | |
Schedule of disaggregated revenue | Three Months Ended (In millions) March 31, 2024 March 31, 2023 Major revenue types Admissions $ 530.5 $ 534.1 Food and beverage 321.2 328.7 Other theatre: Screen advertising 30.3 30.9 Other 69.4 60.7 Other theatre 99.7 91.6 Total revenues $ 951.4 $ 954.4 Three Months Ended (In millions) March 31, 2024 March 31, 2023 Timing of revenue recognition Products and services transferred at a point in time $ 858.5 $ 871.8 Products and services transferred over time 92.9 82.6 Total revenues $ 951.4 $ 954.4 (1) Amounts primarily include subscription and advertising revenues. |
Schedule of receivables and deferred revenue income | (In millions) March 31, 2024 December 31, 2023 Current assets Receivables related to contracts with customers $ 72.0 $ 113.5 Miscellaneous receivables 68.4 90.2 Receivables, net $ 140.4 $ 203.7 (In millions) March 31, 2024 December 31, 2023 Current liabilities Deferred revenues related to contracts with customers $ 388.0 $ 415.3 Miscellaneous deferred income 6.2 6.5 Deferred revenues and income $ 394.2 $ 421.8 |
Customers included in deferred revenues and income | |
Disaggregation of Revenue | |
Schedule of changes in contract liabilities | Deferred Revenues Related to Contracts (In millions) with Customers Balance December 31, 2023 $ 415.3 Cash received in advance 66.3 Customer loyalty rewards accumulated, net of expirations: Admission revenues 4.5 Food and beverage 7.2 Other theatre (0.5) Reclassification to revenue as the result of performance obligations satisfied: Admission revenues (61.2) Food and beverage (19.0) Other theatre (22.3) Foreign currency translation adjustment (2.3) Balance March 31, 2024 $ 388.0 (1) Includes movie tickets, food and beverage, gift cards, exchange tickets, subscription membership fees, and other loyalty membership fees. (2) Amount of rewards accumulated, net of expirations, that are attributed to loyalty programs. (3) Amount of rewards redeemed that are attributed to gift cards, exchange tickets, movie tickets, and loyalty programs. (4) Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, subscription membership fees, and loyalty program membership fees. |
Exhibitor services agreement | |
Disaggregation of Revenue | |
Schedule of changes in contract liabilities | Exhibitor Services (In millions) Agreement (1) Balance December 31, 2023 $ 486.6 Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied (5.5) Balance March 31, 2024 $ 481.1 (1) Represents the carrying amount of the National CineMedia, LLC (“NCM”) common units that were previously received under the annual Common Unit Adjustment (“CUA”) and subsequent adjustments related to the NCM bankruptcy, as discussed in greater detail below. 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, 2024 | |
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, 2023 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,589.5 $ (1,027.3) $ 562.2 $ 4,662.1 $ (2,303.4) $ 2,358.7 Currency translation adjustment — — — (45.4) 8.8 (36.6) (45.4) 8.8 (36.6) Balance March 31, 2024 $ 3,072.6 $ (1,276.1) $ 1,796.5 $ 1,544.1 $ (1,018.5) $ 525.6 $ 4,616.7 $ (2,294.6) $ 2,322.1 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVESTMENTS | |
Schedule of Related Party Transactions with Equity Method Investees | As of As of (In millions) March 31, 2024 December 31, 2023 Due from DCM for on-screen advertising revenue $ 1.4 $ 3.3 Loan receivable from DCM 0.6 0.6 Due to AC JV for Fathom Events programming (2.9) (2.3) Loan receivable from Vasteras 1.0 1.0 Due from Capa for on-screen advertising revenue — 1.4 Due to Vasteras (1.0) (0.9) Due to U.S. theatre partnerships (0.6) (0.6) Three Months Ended (In millions) Consolidated Statements of Operations March 31, 2024 March 31, 2023 DCM screen advertising revenues Other revenues $ 3.3 $ 3.5 DCDC content delivery services Operating expense 0.3 0.3 Gross exhibition cost on AC JV Fathom Events programming Film exhibition costs 7.2 3.0 Screenvision screen advertising revenues Other revenues 1.3 1.5 |
CORPORATE BORROWINGS AND FINA_2
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | |
Summary of the carrying value of corporate borrowings and capital and financing lease obligations | (In millions) March 31, 2024 December 31, 2023 First Lien Secured Debt: Senior Secured Credit Facility-Term Loan due 2026 (8.435% as of March 31, 2024 and 8.474% as of December 31, 2023) $ 1,900.0 $ 1,905.0 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 951.4 968.9 Subordinated Debt: 6.375% Senior Subordinated Notes due 2024 (£4.0 million par value as of March 31, 2024) 5.0 5.1 5.75% Senior Subordinated Notes due 2025 98.3 98.3 5.875% Senior Subordinated Notes due 2026 51.5 51.5 6.125% Senior Subordinated Notes due 2027 125.5 125.5 Total principal amount of corporate borrowings $ 4,481.7 $ 4,504.3 Finance lease liabilities 53.2 55.4 Deferred financing costs (29.3) (31.1) Net premium 90.6 104.2 Total carrying value of corporate borrowings and finance lease liabilities $ 4,596.2 $ 4,632.8 Less: Current maturities of corporate borrowings (25.0) (25.1) Current maturities of finance lease liabilities (5.2) (5.4) Total noncurrent carrying value of corporate borrowings and finance lease liabilities $ 4,566.0 $ 4,602.3 |
Summary of net premium (discount) amounts of corporate borrowings | March 31, December 31, (In millions) 2024 2023 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026 $ 118.7 $ 133.9 Senior Secured Credit Facility-Term Loan due 2026 (2.9) (3.3) 12.75% Odeon Senior Secured Notes due 2027 (25.2) (26.4) Net premium $ 90.6 $ 104.2 |
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, 2024 $ 20.0 2025 118.3 2026 2,867.9 2027 525.5 2028 — 2029 950.0 Total $ 4,481.7 |
Schedule Of Shares Issuance Upon Exchange Of Debt [Table Text Block] | Shares of Aggregate Principal Common Stock Gain on Accrued Interest (In millions, except for share data) Exchanged Exchanged Extinguishment Exchanged Second Lien Notes due 2026 $ 17.5 2,541,250 $ 5.8 $ 0.1 |
Schedule of debt repurchases transactions | The below table summarizes the cash debt repurchase transactions during the three months ended March 31, 2023, including related party transactions with Antara: 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' DEFICIT (Tables)
STOCKHOLDERS' DEFICIT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' DEFICIT | |
Summary of stock based compensation | Three Months Ended March 31, March 31, (In millions) 2024 2023 Equity classified awards: Special awards expense $ 2.1 $ 20.2 Board of director stock award expense — 0.9 Restricted stock unit expense 2.1 3.0 Performance stock unit expense 0.1 1.7 Total equity classified awards: 4.3 25.8 Liability classified awards: Restricted and performance stock unit expense — 0.1 Total liability classified awards: — 0.1 Total stock-based compensation expense $ 4.3 $ 25.9 |
Schedule of Nonvested RSU, PSU and SPSU Activity | Weighted Average Common Stock Grant Date RSUs and PSUs (3) Fair Value Nonvested at January 1, 2024 747,423 $ 44.35 Granted 149,481 4.42 Granted - Special Award 456,226 4.42 Vested (246,982) 43.84 Vested - Special Award (242,360) 4.42 Forfeited (1,089) 40.32 Cancelled (228,015) 43.86 Cancelled - Special Award (213,866) 4.42 Nonvested at March 31, 2024 420,818 $ 30.77 Tranche Year 2025 awarded under the 2023 PSU award with grant date fair values to be determined in year 2025 105,099 Total Nonvested at March 31, 2024 525,917 (1) The number of PSU shares granted under the Tranche Year 2024 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. As a result, the Company paid taxes for restricted unit withholdings of approximately $2.2 million during the three months ended March 31, 2024. (3) Includes AMC Preferred Equity Unit RSUs and PSUs that were converted to Common Stock RSUs and PSUs. |
Schedule of Stockholder's Deficit | Accumulated Class A Voting Additional Other Total AMC Common Stock Paid-in Comprehensive Accumulated Stockholders’ (In millions, except share and per share data) Shares Amount Capital Loss Deficit Deficit Balances December 31, 2023 260,574,392 $ 2.6 $ 6,221.9 $ (78.2) $ (7,994.2) $ (1,847.9) Net loss — — — — (163.5) (163.5) Other comprehensive loss — — — (35.4) — (35.4) Debt for equity exchange 2,541,250 — 14.2 — — 14.2 Taxes paid for restricted unit withholdings — — (2.2) — — (2.2) Share issuance costs — — (0.5) — — (0.5) Stock-based compensation (1) 489,342 — 4.3 — — 4.3 Balances March 31, 2024 263,604,984 $ 2.6 $ 6,237.7 $ (113.6) $ (8,157.7) $ (2,031.0) (1) Vested Common Stock RSUs and PSUs. 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 (3) Amount Shares Equity Units (3) Amount Capital Loss Deficit Deficit Balances December 31, 2022 51,683,892 $ 0.5 7,245,872 72,458,706 $ 0.1 $ 5,049.8 $ (77.3) $ (7,597.6) $ (2,624.5) Net loss — — — — — — — (235.5) (235.5) Other comprehensive loss — — — — — — (7.3) — (7.3) Share Issuance — — 492,880 4,928,800 — 70.5 — — 70.5 Antara Forward Purchase Agreement (2) — — 1,976,213 19,762,130 — 193.7 — — 193.7 Taxes paid for restricted unit withholdings — — — — — (13.1) — — (13.1) Stock-based compensation (1) 235,346 — 26,944 269,444 — 25.9 — — 25.9 Balances March 31, 2023 51,919,238 $ 0.5 9,741,909 97,419,080 $ 0.1 $ 5,326.8 $ (84.6) $ (7,833.1) $ (2,590.3) (1) Includes 8,555 Common Stock shares and 15,370 AMC Preferred Equity Units awarded to the Board of Directors, 226,791 vested Common Stock RSUs and PSUs, and 254,074 vested 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. (3) Share counts have been retroactively adjusted to reflect the effect of the reverse stock split. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 Using Significant Total Carrying Quoted prices in Significant other unobservable Value at active market observable inputs inputs (In millions) March 31, 2024 (Level 1) (Level 2) (Level 3) Other long-term assets: Investment in Hycroft warrants $ 2.8 $ — $ — $ 2.8 Marketable equity securities: Investment in Hycroft 5.2 5.2 — — Total assets at fair value $ 8.0 $ 5.2 $ — $ 2.8 |
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, 2024 Using Significant other Significant Total Carrying Quoted prices in observable unobservable Value at active market inputs inputs (In millions) March 31, 2024 (Level 1) (Level 2) (Level 3) Current maturities of corporate borrowings $ 25.0 $ — $ 21.6 $ — Corporate borrowings 4,518.0 — 3,510.8 — |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
OPERATING SEGMENTS | |
Schedule of financial information by reportable operating segment | Three Months Ended Revenues (In millions) March 31, 2024 March 31, 2023 U.S. markets $ 689.1 $ 704.5 International markets 262.3 249.9 Total revenues $ 951.4 $ 954.4 Three Months Ended Adjusted EBITDA (In millions) March 31, 2024 March 31, 2023 U.S. markets $ (27.6) $ 10.9 International markets (4.0) (3.8) Total Adjusted EBITDA $ (31.6) $ 7.1 (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, 2024 March 31, 2023 U.S. markets $ 31.7 $ 34.6 International markets 18.8 12.8 Total capital expenditures $ 50.5 $ 47.4 |
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, 2024 December 31, 2023 U.S. markets $ 5,712.3 $ 5,795.6 International markets 1,913.4 2,010.5 Total long-term assets $ 7,625.7 $ 7,806.1 (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 | The following table sets forth a reconciliation of net loss to Adjusted EBITDA: Three Months Ended (In millions) March 31, 2024 March 31, 2023 Net loss $ (163.5) $ (235.5) Plus: Income tax provision 1.8 1.9 Interest expense 101.2 101.1 Depreciation and amortization 81.6 93.6 Certain operating expense 0.5 1.1 Equity in earnings of non-consolidated entities (3.7) (1.4) Cash distributions from non-consolidated entities 1.3 — Attributable EBITDA 0.6 0.5 Investment income (5.1) (13.5) Other expense (income) (38.8) 42.8 Other non-cash rent benefit (11.7) (9.6) General and administrative — unallocated: Merger, acquisition and other costs (0.1) 0.2 Stock-based compensation expense 4.3 25.9 Adjusted EBITDA $ (31.6) $ 7.1 (1) For information regarding the income tax provision, see Note 8—Income Taxes. (2) 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. (3) 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. (4) 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 in theatre operators are 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, 2024 March 31, 2023 Equity in (earnings) of non-consolidated entities $ (3.7) $ (1.4) Less: Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures (3.5) (1.1) Equity in earnings of International theatre joint ventures 0.2 0.3 Income tax benefit — (0.1) Investment expense 0.1 0.1 Depreciation and amortization 0.3 0.2 Attributable EBITDA $ 0.6 $ 0.5 (5) Investment expense (income) during the three months ended March 31, 2024, primarily includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $0.5 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $0.5 million and interest income of $( 6.1) million. Investment expense (income) during the three months ended March 31, 2023 included deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $2.3 million, deterioration in estimated fair value of the Company's investment in warrants to purchase common shares of Hycroft of $2.3 million, and 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. (6) Other expense (income) during the three months ended March 31, 2024, includes a vendor dispute settlement of $(36.2) million, foreign currency transaction losses of $3.2 million and gains on debt extinguishment of $(5.8) million. Other expense (income) during the three months ended March 31, 2023, included a non-cash litigation contingency 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. (7) 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. (8) Merger, acquisition and other costs are excluded as they are non-operating in nature. (9) 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, 2024 | |
LOSS PER SHARE | |
Schedule of computation of basic and diluted loss per common share | Three Months Ended (In millions) March 31, 2024 March 31, 2023 Numerator: Net loss for basic and diluted loss per share $ (163.5) $ (235.5) Denominator Weighted average shares for basic loss per common share 263,411 137,395 Basic and diluted loss per common share $ (0.62) $ (1.71) |
BASIS OF PRESENTATION - Segment
BASIS OF PRESENTATION - Segments (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
BASIS OF PRESENTATION | |
Number of reportable segments | 2 |
BASIS OF PRESENTATION - Liquidi
BASIS OF PRESENTATION - Liquidity (Details) $ in Millions | 3 Months Ended | |
Aug. 24, 2023 | Mar. 31, 2024 USD ($) | |
BASIS OF PRESENTATION | ||
Stock split conversion ratio | 0.1 | |
Conversion ratio | 0.1 | |
Letters of credit outstanding | $ 9.2 | |
Amount of minimum liquidity requirements | $ 100 | |
Percentage of north american box office grosses | 0.32 |
BASIS OF PRESENTATION - Schedul
BASIS OF PRESENTATION - Schedule of share issuance upon exchange of debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY | ||
Gain on Extinguishment | $ 5.8 | $ 65.1 |
Second Lien Notes due 2026 | Equity Debt Repurchase | ||
STOCKHOLDERS' EQUITY | ||
Aggregate Principal Exchanged | $ 17.5 | |
Shares of Common Stock Exchanged | 2,541,250 | |
Gain on Extinguishment | $ 5.8 | |
Accrued Interest Exchanged | $ 0.1 |
BASIS OF PRESENTATION - Cash an
BASIS OF PRESENTATION - Cash and equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Cash and Cash Equivalents. | ||
Cash and cash equivalents | $ 624.2 | $ 884.3 |
U.S. | ||
Cash and Cash Equivalents. | ||
Cash and cash equivalents | 511 | 752.3 |
International markets. | ||
Cash and Cash Equivalents. | ||
Cash and cash equivalents | $ 113.2 | $ 132 |
BASIS OF PRESENTATION - Restric
BASIS OF PRESENTATION - Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted Cash | ||||
Cash and cash equivalents | $ 624.2 | $ 884.3 | ||
Restricted cash | 36.5 | 27.1 | ||
Total cash and cash equivalents and restricted cash in the statement of cash flows | 660.7 | 911.4 | $ 518.7 | $ 654.4 |
U.S. | ||||
Restricted Cash | ||||
Cash and cash equivalents | 511 | 752.3 | ||
Restricted cash | 10.1 | 0 | ||
International markets. | ||||
Restricted Cash | ||||
Cash and cash equivalents | 113.2 | 132 | ||
Restricted cash | $ 26.4 | $ 27.1 |
BASIS OF PRESENTATION - Accumul
BASIS OF PRESENTATION - Accumulated Other Comprehensive Loss (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accumulated other comprehensive loss | |
Balance at the beginning of the period | $ (78.2) |
Balance at the end of period | (113.6) |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated other comprehensive loss | |
Balance at the beginning of the period | (78.2) |
Other comprehensive loss | (35.4) |
Balance at the end of period | (113.6) |
Foreign Currency | |
Accumulated other comprehensive loss | |
Balance at the beginning of the period | (77.7) |
Other comprehensive loss | (35.8) |
Balance at the end of period | (113.5) |
Pension Benefits | |
Accumulated other comprehensive loss | |
Balance at the beginning of the period | (0.5) |
Other comprehensive loss | 0.4 |
Balance at the end of period | $ (0.1) |
BASIS OF PRESENTATION - Accum_2
BASIS OF PRESENTATION - Accumulated Depreciation and Amortization (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accumulated depreciation and amortization | ||
Accumulated depreciation | $ 3,152.4 | $ 3,109.8 |
Accumulated amortization | $ 7.5 | $ 7.3 |
BASIS OF PRESENTATION - Other E
BASIS OF PRESENTATION - Other Expense (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Expense (Income): | ||
Gain on extinguishment of debt | $ (5.8) | $ (65.1) |
Equity in earnings of non-consolidated entities | (3.7) | (1.4) |
Non-cash shareholder litigation expense | 116.6 | |
Vendor dispute settlement | (36.2) | |
Total other expense (income) | (42.8) | 37.8 |
Other expense | ||
Other Expense (Income): | ||
Foreign currency transaction (gains) losses | 3.2 | (8.7) |
Non-operating components of net periodic benefit cost | 0.7 | 0.4 |
Equity in earnings of non-consolidated entities | (3.7) | (1.4) |
Derivative stockholder settlement | (14) | |
Non-cash shareholder litigation expense | 126.6 | |
Vendor dispute settlement | (36.2) | |
Other settlement proceeds | (1) | |
Other expense | Senior Subordinated Notes due 2026 | ||
Other Expense (Income): | ||
Gain on extinguishment of debt | (2.3) | |
Other expense | Second Lien Notes due 2026 | ||
Other Expense (Income): | ||
Gain on extinguishment of debt | $ (5.8) | $ (62.8) |
LEASES - Lease costs (Details)
LEASES - Lease costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases: | ||
Interest expense on lease liabilities | $ 0.9 | $ 0.9 |
Total lease cost | 247.5 | 225.1 |
Depreciation and amortization | ||
Leases: | ||
Amortization of finance lease assets | 0.5 | 0.5 |
Finance lease obligations | ||
Leases: | ||
Interest expense on lease liabilities | 0.9 | 0.9 |
Theatres | Rent | ||
Leases: | ||
Operating lease cost | 197.7 | 184.2 |
Variable lease cost | 26.8 | 21.5 |
Theatres | Operating expense | ||
Leases: | ||
Operating lease cost | 0.2 | 0.3 |
Equipment | Operating expense | ||
Leases: | ||
Operating lease cost | 6.7 | 3.1 |
Variable lease cost | 13.4 | 13.3 |
Office and other | General and administrative: other | ||
Leases: | ||
Operating lease cost | $ 1.3 | $ 1.3 |
LEASES - Cash flow and suppleme
LEASES - Cash flow and supplemental information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used in finance leases | $ (0.9) | $ (0.8) |
Operating cash flows used in operating leases | (234.4) | (242.8) |
Financing cash flows used in finance leases | (1.2) | (1.6) |
Landlord contributions: | ||
Operating cashflows provided by operating leases | 4.6 | 6.4 |
Supplemental disclosure of noncash leasing activities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 32.8 | $ 16 |
LEASES - Lease terms and discou
LEASES - Lease terms and discount rates (Details) | Mar. 31, 2024 |
LEASES | |
Operating leases, Weighted Average Remaining Lease Term | 8 years 7 months 6 days |
Finance leases, Weighted Average Remaining Lease Term | 13 years 2 months 12 days |
Operating leases, Weighted Average Discount Rate | 10.60% |
Finance leases, Weighted Average Discount Rate | 6.40% |
LEASES - Minimum annual payment
LEASES - Minimum annual payments under leases (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Lease Payments | ||
Nine months ending December 31, 2024 | $ 686.9 | |
2025 | 889.4 | |
2026 | 826.4 | |
2027 | 761.6 | |
2028 | 675.8 | |
2029 | 575.9 | |
Thereafter | 2,219.9 | |
Total lease payments | 6,635.9 | |
Less imputed interest | (2,242) | |
Total operating and finance lease liabilities, respectively | 4,393.9 | |
Financing Lease Payments | ||
Nine months ending December 31, 2024 | 6.2 | |
2025 | 7.6 | |
2026 | 7.5 | |
2027 | 7.5 | |
2028 | 7.1 | |
2029 | 7.1 | |
Thereafter | 38.4 | |
Total lease payments | 81.4 | |
Less imputed interest | (28.2) | |
Total operating and finance lease liabilities, respectively | $ 53.2 | $ 55.4 |
LEASES - Future lease agreement
LEASES - Future lease agreements (Details) - Future Lease Commitments $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) item | |
Number of theatres | item | 2 | |
Signed lease agreements | $ | $ 59.5 | |
Lease buyout incentive | $ | $ 13 | |
Lease, right to terminate by landlord, number of theatre | item | 1 | |
Minimum | ||
Lease term | 15 years | |
Maximum | ||
Lease term | 20 years |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue | ||
Revenues | $ 951.4 | $ 954.4 |
Products and services transferred at a point in time | ||
Disaggregation of Revenue | ||
Revenues | 858.5 | 871.8 |
Products and services transferred over time | ||
Disaggregation of Revenue | ||
Revenues | 92.9 | 82.6 |
Admissions | ||
Disaggregation of Revenue | ||
Revenues | 530.5 | 534.1 |
Food and beverage | ||
Disaggregation of Revenue | ||
Revenues | 321.2 | 328.7 |
Other theatre: | ||
Disaggregation of Revenue | ||
Revenues | 99.7 | 91.6 |
Screen advertising | ||
Disaggregation of Revenue | ||
Revenues | 30.3 | 30.9 |
Other | ||
Disaggregation of Revenue | ||
Revenues | $ 69.4 | $ 60.7 |
REVENUE RECOGNITION - Receivabl
REVENUE RECOGNITION - Receivables and deferred revenue (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Receivables related to contracts with customers | $ 72 | $ 113.5 |
Miscellaneous receivables | 68.4 | 90.2 |
Receivables, net | 140.4 | 203.7 |
Current liabilities | ||
Deferred revenue related to contracts with customers | 388 | 415.3 |
Miscellaneous deferred income | 6.2 | 6.5 |
Deferred revenues and income | $ 394.2 | $ 421.8 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 11, 2023 | |
Deferred revenues related to contracts with customers | ||
Beginning balance | $ 415.3 | |
Cash received in advance | 66.3 | |
Foreign currency translation adjustment | (2.3) | |
Ending balance | 388 | |
National CineMedia Inc. | ||
Deferred revenues related to contracts with customers | ||
Number of common unit issuance | 16,581,829 | |
Exhibitor Services Agreement | ||
Deferred revenues related to contracts with customers | ||
Beginning balance | 486.6 | |
Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied | (5.5) | |
Ending balance | $ 481.1 | |
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 | $ 4.5 | |
Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied | (61.2) | |
Food and beverage | ||
Deferred revenues related to contracts with customers | ||
Customer loyalty awards accumulated, net of expirations | 7.2 | |
Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied | (19) | |
Other theatre. | ||
Deferred revenues related to contracts with customers | ||
Customer loyalty awards accumulated, net of expirations | (0.5) | |
Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied | $ (22.3) |
REVENUE RECOGNITION - Transacti
REVENUE RECOGNITION - Transaction price allocated to the remaining performance obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Disaggregation of Revenue | ||
Deferred revenues and income | $ 394.2 | $ 421.8 |
Gift Card And Ticket Exchange | ||
Disaggregation of Revenue | ||
Deferred revenues and income | $ 299.4 | |
Redemption period | 24 months | |
Loyalty Program | ||
Disaggregation of Revenue | ||
Deferred revenues and income | $ 73.3 | |
Redemption period | 24 months |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Activity of goodwill | |
Gross Carrying Amount, Balance at the beginning of the period | $ 4,662.1 |
Accumulated Impairment Losses, Balance at the beginning of the period | (2,303.4) |
Net Carrying Amount, Balance at the beginning of the period | 2,358.7 |
Gross Carrying Amount, Currency translation adjustment | (45.4) |
Accumulated Impairment Losses, Currency translation adjustment | 8.8 |
Net Carrying Amount, Currency translation adjustment | (36.6) |
Gross Carrying Amount, Balance at the end of the period | 4,616.7 |
Accumulated Impairment Losses, Balance at the end of the period | (2,294.6) |
Net Carrying Amount, Balance at the end of the period | 2,322.1 |
U.S. Markets | |
Activity of goodwill | |
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 | |
Activity of goodwill | |
Gross Carrying Amount, Balance at the beginning of the period | 1,589.5 |
Accumulated Impairment Losses, Balance at the beginning of the period | (1,027.3) |
Net Carrying Amount, Balance at the beginning of the period | 562.2 |
Gross Carrying Amount, Currency translation adjustment | (45.4) |
Accumulated Impairment Losses, Currency translation adjustment | 8.8 |
Net Carrying Amount, Currency translation adjustment | (36.6) |
Gross Carrying Amount, Balance at the end of the period | 1,544.1 |
Accumulated Impairment Losses, Balance at the end of the period | (1,018.5) |
Net Carrying Amount, Balance at the end of the period | $ 525.6 |
INVESTMENTS (Details)
INVESTMENTS (Details) $ / shares in Units, ر.س in Millions, $ in Millions | 3 Months Ended | ||||||
Nov. 15, 2023 | Aug. 24, 2023 | Dec. 30, 2022 USD ($) | Dec. 30, 2022 SAR (ر.س) | Mar. 14, 2022 $ / shares shares | Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | |
Investments | |||||||
Gain on investment sold | $ 15.5 | ||||||
Recorded equity in (earnings) loss | $ 3.7 | 1.4 | |||||
Equity Method Investments Ownership Transactions [Abstract] | |||||||
Stock split conversion ratio | 0.1 | ||||||
Unrealized loss (gain) on investments | (1) | (4.6) | |||||
Hycroft | |||||||
Equity Method Investments Ownership Transactions [Abstract] | |||||||
Number of shares purchased | shares | 2,400,000 | ||||||
Stock split conversion ratio | 0.10 | 1 | |||||
Number of shares to be received for each unit | shares | 1 | ||||||
Hycroft | Investment Income | |||||||
Equity Method Investments Ownership Transactions [Abstract] | |||||||
Unrealized loss (gain) on investments | $ 1 | 4.6 | |||||
62 Theatres | Europe | |||||||
Investments | |||||||
Ownership Interest | 50% | ||||||
Number of theatres | item | 62 | ||||||
U.S. Motion pictures theatres | |||||||
Investments | |||||||
Number of theatres | item | 4 | ||||||
Investment in Hycroft Mining Holding Corporation Warrants | |||||||
Equity Method Investments Ownership Transactions [Abstract] | |||||||
Number of shares to be received for each unit | shares | 1 | ||||||
Price per share (in dollars per share) | $ / shares | $ 10.68 | ||||||
Term | 5 years | ||||||
Non consolidated investee | |||||||
Investments | |||||||
Recorded equity in (earnings) loss | $ (3.7) | (1.4) | |||||
Saudi Cinema Company | |||||||
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 | ||||||
AC JV, LLC ("AC JV"), owner of Fathom Events | |||||||
Investments | |||||||
Ownership Interest | 32% | ||||||
SV Holdco LLC, owner of Screenvision | |||||||
Investments | |||||||
Ownership Interest | 18.40% | ||||||
Digital Cinema Media Ltd. ("DCM") | |||||||
Investments | |||||||
Ownership Interest | 50% | ||||||
Handelsbolaget Svenska Bio Lidingo | |||||||
Investments | |||||||
Ownership Interest | 50% | ||||||
Bergen Kino AS | |||||||
Investments | |||||||
Ownership Interest | 49% | ||||||
Odeon Kino Stavanger/ Sandnes AS | |||||||
Investments | |||||||
Ownership Interest | 49% | ||||||
Capa Kinoreklame AS ("Capa") | |||||||
Investments | |||||||
Ownership Interest | 50% | ||||||
Vasteras Biografer ("Vasteras") | |||||||
Investments | |||||||
Ownership Interest | 50% | ||||||
Digital Cinema Distribution Coalition, LLC ("DCDC") | |||||||
Investments | |||||||
Ownership Interest | 14.60% | ||||||
Maximum | Non consolidated investee | |||||||
Investments | |||||||
Ownership Interest | 50% |
INVESTMENTS - Related Party Tra
INVESTMENTS - Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
DCM | |||
Related Party Transactions | |||
Loan receivable from related party | $ 0.6 | $ 0.6 | |
DCM | Other revenues | |||
Related Party Transactions | |||
Screen advertising revenues | 3.3 | $ 3.5 | |
DCM | On-screen advertising revenue | |||
Related Party Transactions | |||
Amounts due from related parties | 1.4 | 3.3 | |
DCDC | Operating expense | |||
Related Party Transactions | |||
Content delivery services | 0.3 | 0.3 | |
AC JV | Film exhibition costs. | |||
Related Party Transactions | |||
Gross exhibition cost | 7.2 | 3 | |
AC JV | Fathom Events programming | |||
Related Party Transactions | |||
Amount due to related parties | (2.9) | (2.3) | |
Capa | On-screen advertising revenue | |||
Related Party Transactions | |||
Amounts due from related parties | 1.4 | ||
Vasteras | |||
Related Party Transactions | |||
Loan receivable from related party | 1 | 1 | |
Amount due to related parties | (1) | (0.9) | |
Screenvision | Other revenues | |||
Related Party Transactions | |||
Screen advertising revenues | 1.3 | $ 1.5 | |
U.S. theatres and IMAX screen | Theatre partnerships | |||
Related Party Transactions | |||
Amount due to related parties | $ (0.6) | $ (0.6) |
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, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2024 GBP (£) | |
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Total principal amount of corporate borrowings | $ 4,481.7 | $ 4,504.3 | |
Finance lease liabilities | 53.2 | 55.4 | |
Deferred financing costs | (29.3) | (31.1) | |
Net premium (1) | 90.6 | 104.2 | |
Total carrying value of corporate borrowings and finance lease liabilities | 4,596.2 | 4,632.8 | |
Current maturities of corporate borrowings | (25) | (25.1) | |
Current maturities of finance lease liabilities | (5.2) | (5.4) | |
Total noncurrent carrying value of corporate borrowings and finance lease liabilities | 4,566 | 4,602.3 | |
6.375% Senior Subordinated Notes due 2024 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Total principal amount of corporate borrowings | $ 5 | $ 5.1 | |
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 | |||
Total principal amount 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 | |||
Total principal amount of corporate borrowings | $ 51.5 | $ 51.5 | |
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 | |||
Total principal amount 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 (1) | $ (25.2) | $ (26.4) | |
Stated interest rate (as a percent) | 12.75% | 12.75% | 12.75% |
Senior Secured Credit Facility Term-Loan Due 2026 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Total principal amount of corporate borrowings | $ 1,900 | $ 1,905 | |
Net premium (1) | $ (2.9) | $ (3.3) | |
Stated interest rate (as a percent) | 8.435% | 8.474% | 8.435% |
Odeon Senior Secured Notes Due 2027 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Total principal amount 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 | |||
Total principal amount of corporate borrowings | $ 950 | $ 950 | |
Stated interest rate (as a percent) | 7.50% | 7.50% | 7.50% |
Second Lien Subordinated Notes due 2026 | |||
CORPORATE BORROWINGS AND FINANCE LEASE OBLIGATIONS | |||
Total principal amount of corporate borrowings | $ 951.4 | $ 968.9 | |
Net premium (1) | $ 118.7 | $ 133.9 | |
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, 2024 USD ($) |
Principal Amount of Corporate Borrowings | |
Nine months ended December 31, 2024 | $ 20 |
2025 | 118.3 |
2026 | 2,867.9 |
2027 | 525.5 |
2029 | 950 |
Total | $ 4,481.7 |
CORPORATE BORROWINGS AND FINA_5
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Debt for equity exchange (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY | ||
Gain on Extinguishment | $ 5.8 | $ 65.1 |
Second Lien Notes due 2026 | Equity Debt Repurchase | ||
STOCKHOLDERS' EQUITY | ||
Aggregate Principal Exchanged | $ 17.5 | |
Shares of Common Stock Exchanged | 2,541,250 | |
Gain on Extinguishment | $ 5.8 | |
Accrued Interest Exchanged | $ 0.1 |
CORPORATE BORROWINGS AND FINA_6
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Debt repurchase transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Aug. 25, 2023 | |
Debt Instrument [Line Items] | |||
Gain on Extinguishment | $ 5.8 | $ 65.1 | |
Related and Non-Related parties | Cash debt repurchase | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | 103.5 | ||
Reacquisition Cost | 56.5 | ||
Gain on Extinguishment | 65.1 | ||
Accrued interest paid | 1.9 | ||
Related Party | Cash debt repurchase | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | 46 | ||
Reacquisition Cost | 26.1 | ||
Gain on Extinguishment | 27.6 | ||
Accrued interest paid | 0.8 | ||
Nonrelated Party | Cash debt repurchase | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | 57.5 | ||
Reacquisition Cost | 30.4 | ||
Gain on Extinguishment | 37.5 | ||
Accrued interest paid | 1.1 | ||
Second Lien Notes due 2026 | Related Party | Cash debt repurchase | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | 41.9 | ||
Reacquisition Cost | 24.4 | ||
Gain on Extinguishment | 25.3 | ||
Accrued interest paid | 0.7 | ||
Second Lien Notes due 2026 | Nonrelated Party | Cash debt repurchase | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | 57.5 | ||
Reacquisition Cost | 30.4 | ||
Gain on Extinguishment | 37.5 | ||
Accrued interest paid | $ 1.1 | ||
Second Lien Notes due 2026 | Related party transactions | Antara Capital LP | Related Party | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | $ 100 | ||
Preferred equity | 9,102,619 | ||
5.875% Senior Subordinated Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.875% | ||
5.875% Senior Subordinated Notes due 2026 | Related Party | Cash debt repurchase | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Repurchased | $ 4.1 | ||
Reacquisition Cost | 1.7 | ||
Gain on Extinguishment | 2.3 | ||
Accrued interest paid | $ 0.1 |
CORPORATE BORROWINGS AND FINA_7
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES - Financial Covenants (Details) $ in Millions | Mar. 31, 2024 USD ($) |
CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES | |
Minimum liquidity requirement | $ 100 |
STOCKHOLDERS' DEFICIT (Details)
STOCKHOLDERS' DEFICIT (Details) | Aug. 24, 2023 | Mar. 31, 2024 shares | Dec. 31, 2023 shares |
STOCKHOLDERS' DEFICIT | |||
Stock split conversion ratio | 0.1 | ||
Conversion ratio | 0.1 | ||
Preferred stock, share authorized (in shares) | 50,000,000 | 50,000,000 |
STOCKHOLDERS' DEFICIT - At-The-
STOCKHOLDERS' DEFICIT - At-The-Market Share Issuances (Details) - At-the-Market Offerings shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
AMC Preferred Equity Units | |
STOCKHOLDERS' EQUITY | |
Number of shares sold | shares | 4.9 |
Common Stock And AMC Preferred Equity Units | |
STOCKHOLDERS' EQUITY | |
Gross proceeds | $ 80.3 |
Sales agents fees paid | 2 |
Other third-party issuance costs | 7.8 |
Payment to issuance cost to third party | $ 6.8 |
SHAREHOLDERS' DEFICIT - Antara
SHAREHOLDERS' DEFICIT - Antara Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Feb. 07, 2023 | Dec. 22, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY | ||||
Increase in stockholders' deficit | $ (0.5) | $ 70.5 | ||
Accrued interest paid | 77.8 | 77.3 | ||
Net proceeds from AMC Preferred Equity Units issuance | $ (0.5) | 146.6 | ||
Forward purchase agreement | ||||
STOCKHOLDERS' EQUITY | ||||
Increase in stockholders' deficit | 193.7 | |||
AMC Preferred Equity Units | ||||
STOCKHOLDERS' EQUITY | ||||
Net proceeds from AMC Preferred Equity Units issuance | $ 75.1 | |||
AMC Preferred Equity Units | Forward purchase agreement | Antara Capital LP | ||||
STOCKHOLDERS' EQUITY | ||||
Number of shares sold | 19,762,130 | 10,659,511 | ||
Value of shares sold | $ 75.1 | |||
Shares issued as consideration | 9,102,619 | |||
Net proceeds from AMC Preferred Equity Units issuance | $ 75.1 | |||
Second Lien Notes due 2026 | Forward purchase agreement | Antara Capital LP | ||||
STOCKHOLDERS' EQUITY | ||||
Debt instrument face amount | $ 100 | $ 100 | ||
Cash interest rate (as a percent) | 10% | 10% | ||
PIK interest rate (as a percent) | 12% | 12% | ||
Accrued interest paid | $ 1.4 | |||
Second Lien Notes due 2026 | AMC Preferred Equity Units | Forward purchase agreement | Antara Capital LP | ||||
STOCKHOLDERS' EQUITY | ||||
Increase in stockholders' deficit | $ 193.7 |
STOCKHOLDERS' DEFICIT - Stock-b
STOCKHOLDERS' DEFICIT - Stock-based compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Feb. 22, 2024 | Feb. 23, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Based Compensation Expense | ||||
Stock-based compensation expense | $ 4.3 | $ 25.9 | ||
Total estimated unrecognized compensation cost related to nonvested stock-based compensation arrangements | $ 10.9 | |||
Weighted average period recognized | 1 year 1 month 6 days | |||
Board of director stock award expense | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | 0.9 | |||
Equity Classified Awards | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | $ 4.3 | 25.8 | ||
Special awards expense | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | 2.1 | 20.2 | ||
Expected Performance Target to be Achieved, Percentage | 200% | 200% | ||
Shares vested | 478,055 | |||
Cash settled units | ||||
Stock Based Compensation Expense | ||||
Shares vested | 21,829 | |||
Equity settled units | ||||
Stock Based Compensation Expense | ||||
Shares vested | 456,226 | |||
Performance stock unit expense | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | 0.1 | 1.7 | ||
Restricted stock unit expense | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | $ 2.1 | 3 | ||
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 | |||
Class A common stock | Special awards expense | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | $ 14.9 | |||
Shares vested | 238,959 | |||
AMC Preferred Equity Units | Special awards expense | ||||
Stock Based Compensation Expense | ||||
Stock-based compensation expense | $ 5.3 | |||
Shares vested | 238,959 |
STOCKHOLDERS' DEFICIT - Awards
STOCKHOLDERS' DEFICIT - Awards granted (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) shares | Dec. 31, 2023 tranche | Dec. 31, 2022 tranche | |
STOCKHOLDERS' EQUITY | |||
Number of tranches | tranche | 3 | 3 | |
2023 Performance share award | |||
STOCKHOLDERS' EQUITY | |||
Granted (in shares) | 105,357 | ||
Stock value | $ | $ 0.5 | ||
2022 Performance share award | |||
STOCKHOLDERS' EQUITY | |||
Granted (in shares) | 44,081 | ||
Stock value | $ | $ 0.2 | ||
2021 Performance share award | |||
STOCKHOLDERS' EQUITY | |||
Percentage of performance target | 100% | ||
RSU and PSU Units | |||
STOCKHOLDERS' EQUITY | |||
Nonvested shares | 58,101 | ||
RSU and PSU Units | 2024 Tranche Year | |||
STOCKHOLDERS' EQUITY | |||
Nonvested shares | 43,524 | ||
RSU and PSU Units | 2025 Tranche Year | |||
STOCKHOLDERS' EQUITY | |||
Nongranted shares | 14,577 | ||
Performance Vesting | Members of management and executive officers | |||
STOCKHOLDERS' EQUITY | |||
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% |
STOCKHOLDERS' DEFICIT - RSU, PS
STOCKHOLDERS' DEFICIT - RSU, PSU and SPSU activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Weighted Average Grant Date Fair Value | ||
Taxes paid for restricted unit withholdings | $ 2.2 | $ 13.1 |
RSU and PSU | ||
Weighted Average Grant Date Fair Value | ||
Taxes paid for restricted unit withholdings | $ 2.2 | |
RSU and PSU | Class A common stock | ||
Shares of RSU PSU and SPSU | ||
Balance at the beginning of the period (in shares) | 747,423 | |
Granted (in shares) | 149,481 | |
Vested (in shares) | (246,982) | |
Forfeited (in shares) | (1,089) | |
Cancelled (in shares) | (228,015) | |
Nonvested at the end of the period (in shares) | 420,818 | |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 44.35 | |
Granted (in dollars per share) | 4.42 | |
Vested (in dollars per share) | 43.84 | |
Forfeited (in dollars per share) | 40.32 | |
Cancelled (in dollars per share) | 43.86 | |
Nonvested at the end of the period (in dollars per share) | $ 30.77 | |
Tranche Year 2025 awarded under the 2023 PSU award with grant date fair values to be determined in year 2025 | 105,099 | |
Total Nonvested at December 31, 2023 | 525,917 | |
RSU and PSU | Special Award | Class A common stock | ||
Shares of RSU PSU and SPSU | ||
Granted (in shares) | 456,226 | |
Vested (in shares) | (242,360) | |
Cancelled | (213,866) | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 4.42 | |
Vested (in dollars per share) | 4.42 | |
Cancelled (in dollars per share) | $ 4.42 | |
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' DEFICIT - Equity
STOCKHOLDERS' DEFICIT - Equity statements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Increase (Decrease) in Stockholders' Equity | |||
Balance at the beginning of the period | $ (1,847.9) | $ (2,624.5) | |
Net loss | (163.5) | (235.5) | |
Other comprehensive loss | (35.4) | (7.3) | |
Debt for equity exchange | 14.2 | ||
Share issuance | (0.5) | 70.5 | |
Taxes paid for restricted unit withholdings | (2.2) | (13.1) | |
Stock-based compensation | 4.3 | 25.9 | |
Balance at the end of the period | (2,031) | (2,590.3) | |
Net proceeds from AMC Preferred Equity Units issuance | (0.5) | 146.6 | |
Carrying value of corporate borrowings | 4,481.7 | $ 4,504.3 | |
Forward purchase agreement | |||
Increase (Decrease) in Stockholders' Equity | |||
Share issuance | 193.7 | ||
Conversion of principal amount | 118.6 | ||
Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at the beginning of the period | 0.1 | ||
Balance at the end of the period | 0.1 | ||
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at the beginning of the period | 6,221.9 | 5,049.8 | |
Debt for equity exchange | 14.2 | ||
Share issuance | (0.5) | 70.5 | |
Taxes paid for restricted unit withholdings | (2.2) | (13.1) | |
Stock-based compensation | 4.3 | 25.9 | |
Balance at the end of the period | 6,237.7 | 5,326.8 | |
Additional Paid-in Capital | Forward purchase agreement | |||
Increase (Decrease) in Stockholders' Equity | |||
Share issuance | 193.7 | ||
AOCI Attributable to Parent [Member] | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at the beginning of the period | (78.2) | (77.3) | |
Other comprehensive loss | (35.4) | (7.3) | |
Balance at the end of the period | (113.6) | (84.6) | |
Accumulated Earnings (Deficit) | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at the beginning of the period | (7,994.2) | (7,597.6) | |
Net loss | (163.5) | (235.5) | |
Balance at the end of the period | (8,157.7) | (7,833.1) | |
Class A common stock | Common Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at the beginning of the period | $ 2.6 | $ 0.5 | |
Balance (in shares) | 260,574,392 | 51,683,892 | |
Debt for equity exchange (shares) | 2,541,250 | ||
Stock-based compensation (in shares) | 489,342 | 235,346 | |
Balance at the end of the period | $ 2.6 | $ 0.5 | |
Balance (in shares) | 263,604,984 | 51,919,238 | |
Common Stock | Board of Directors | |||
Increase (Decrease) in Stockholders' Equity | |||
Stock-based compensation (in shares) | 8,555 | ||
Common Stock | RSU and PSU Units | |||
Increase (Decrease) in Stockholders' Equity | |||
Shares Vested | 226,791 | ||
Series A Convertible Participating Preferred Stock | Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance (in shares) | 7,245,872 | ||
Stock issued in period (in shares) | 492,880 | ||
Stock-based compensation (in shares) | 26,944 | ||
Balance (in shares) | 9,741,909 | ||
Series A Convertible Participating Preferred Stock | Preferred Stock | Forward purchase agreement | |||
Increase (Decrease) in Stockholders' Equity | |||
Stock issued in period (in shares) | 1,976,213 | ||
AMC Preferred Stock Depository Shares | Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance (in shares) | 72,458,706 | ||
Stock issued in period (in shares) | 4,928,800 | ||
Stock-based compensation (in shares) | 269,444 | ||
Balance (in shares) | 97,419,080 | ||
AMC Preferred Stock Depository Shares | Preferred Stock | Forward purchase agreement | |||
Increase (Decrease) in Stockholders' Equity | |||
Stock issued in period (in shares) | 19,762,130 | ||
AMC Preferred Equity Units | |||
Increase (Decrease) in Stockholders' Equity | |||
Net proceeds from AMC Preferred Equity Units issuance | $ 75.1 | ||
AMC Preferred Equity Units | Board of Directors | |||
Increase (Decrease) in Stockholders' Equity | |||
Shares awarded | 15,370 | ||
AMC Preferred Equity Units | RSU and PSU Units | |||
Increase (Decrease) in Stockholders' Equity | |||
Stock-based compensation (in shares) | 254,074 |
INCOME TAXES - narrative (Detai
INCOME TAXES - narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
Minimum effective tax rate | 15% |
Effective income tax rate (as a percent) | (1.10%) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value on a recurring basis (Details) - Recurring basis $ in Millions | Mar. 31, 2024 USD ($) |
Other long-term assets: | |
Total assets at fair value | $ 8 |
Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Investments measured at net asset value | 2.8 |
Hycroft | |
Other long-term assets: | |
The company's recorded investment | 5.2 |
Quoted prices in active market (Level 1) | |
Other long-term assets: | |
Total assets at fair value | 5.2 |
Quoted prices in active market (Level 1) | Hycroft | |
Other long-term assets: | |
The company's recorded investment | 5.2 |
Significant unobservable inputs (Level 3) | |
Other long-term assets: | |
Total assets at fair value | 2.8 |
Significant unobservable inputs (Level 3) | Investment in Hycroft Mining Holding Corporation Warrants | |
Other long-term assets: | |
Investments measured at net asset value | $ 2.8 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair value on a nonrecurring basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Fair Value Measurement Disclosures | ||
Current maturities of corporate borrowings, carrying value | $ 25 | $ 25.1 |
Corporate borrowings, noncurrent, carrying value | 4,518 | $ 4,552.3 |
Total Carrying Value | ||
Other Fair Value Measurement Disclosures | ||
Current maturities of corporate borrowings, carrying value | 25 | |
Corporate borrowings, noncurrent, carrying value | 4,518 | |
Significant other observable inputs (Level 2) | ||
Other Fair Value Measurement Disclosures | ||
Current maturities of corporate borrowings, fair value | 21.6 | |
Corporate borrowings, noncurrent, fair value | $ 3,510.8 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
OPERATING SEGMENT | |||
Number of reportable segments | segment | 2 | ||
Financial information by reportable operating segment | |||
Revenues | $ 951.4 | $ 954.4 | |
Adjusted EBITDA | (31.6) | 7.1 | |
Capital expenditures | 50.5 | 47.4 | |
Long-term assets, net | 7,625.7 | $ 7,806.1 | |
U. S. markets | |||
Financial information by reportable operating segment | |||
Revenues | 689.1 | 704.5 | |
Adjusted EBITDA | (27.6) | 10.9 | |
U. S. markets | Operating Segments | |||
Financial information by reportable operating segment | |||
Capital expenditures | 31.7 | 34.6 | |
Long-term assets, net | 5,712.3 | 5,795.6 | |
International markets. | |||
Financial information by reportable operating segment | |||
Revenues | 262.3 | 249.9 | |
Adjusted EBITDA | (4) | (3.8) | |
International markets. | Operating Segments | |||
Financial information by reportable operating segment | |||
Capital expenditures | 18.8 | $ 12.8 | |
Long-term assets, net | $ 1,913.4 | $ 2,010.5 |
OPERATING SEGMENTS - Reconcilia
OPERATING SEGMENTS - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING SEGMENT | ||
Net Income (Loss) | $ (163.5) | $ (235.5) |
Income tax provision | 1.8 | 1.9 |
Interest expense | 101.2 | 101.1 |
Depreciation and amortization | 81.6 | 93.6 |
Certain operating expense | 0.5 | 1.1 |
Equity in (earnings) of non-consolidated entities | (3.7) | (1.4) |
Cash distributions from non-consolidated entities | 1.3 | |
Attributable EBITDA | 0.6 | 0.5 |
Investment income | (5.1) | (13.5) |
Other expense (income) | (38.8) | 42.8 |
Other non-cash rent benefit | (11.7) | (9.6) |
General and administrative - unallocated: | ||
Merger, acquisition and other costs | (0.1) | 0.2 |
Stock-based compensation expense | 4.3 | 25.9 |
Adjusted EBITDA | (31.6) | 7.1 |
Vendor dispute settlement | (36.2) | |
Gain on extinguishment of debt | (5.8) | (65.1) |
Interest income | 6.1 | 2.3 |
Shareholder litigation charge | 116.6 | |
Hycroft | ||
General and administrative - unallocated: | ||
Decrease (increase) in fair value of investments | 0.5 | 2.3 |
Increase (decrease) in fair value of investment in warrants | (0.5) | (2.3) |
Attributable EBITDA | ||
OPERATING SEGMENT | ||
Income tax provision | (0.1) | |
Depreciation and amortization | 0.3 | 0.2 |
Equity in (earnings) of non-consolidated entities | (3.7) | (1.4) |
Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures | (3.5) | (1.1) |
Equity in earnings of International theatre joint ventures | 0.2 | 0.3 |
Attributable EBITDA | 0.6 | 0.5 |
Investment income | (0.1) | (0.1) |
Other expense (income) | ||
General and administrative - unallocated: | ||
Gain on extinguishment of debt | (5.8) | (65.1) |
Foreign currency transaction (gains) losses | 3.2 | (8.7) |
SCC | ||
General and administrative - unallocated: | ||
Equity in earnings related to sale | (15.5) | |
U. S. markets | ||
General and administrative - unallocated: | ||
Adjusted EBITDA | (27.6) | 10.9 |
International markets. | ||
General and administrative - unallocated: | ||
Adjusted EBITDA | $ (4) | $ (3.8) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||||
Aug. 28, 2023 USD ($) | Aug. 24, 2023 | May 04, 2023 USD ($) item | Apr. 02, 2023 | Feb. 20, 2023 item | Jan. 06, 2023 USD ($) | Nov. 30, 2022 USD ($) | Jun. 06, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Sep. 14, 2018 $ / shares | |
Commitments and contingencies line items | ||||||||||||
Settlement amount | $ 36.2 | |||||||||||
Stock split conversion ratio | 0.1 | |||||||||||
Shareholder litigation charge | $ 116.6 | |||||||||||
Shareholder Litigation | ||||||||||||
Commitments and contingencies line items | ||||||||||||
Number of actions | item | 2 | |||||||||||
Stock split conversion ratio | 0.1333 | |||||||||||
Shareholder litigation charge | 126.6 | |||||||||||
Insurance recoveries | $ 10 | |||||||||||
Settlement amount paid | $ 99.3 | |||||||||||
Number of insurers against whom lawsuit filed | item | 17 | |||||||||||
Maximum amount of coverage claimed under policy | $ 80 | |||||||||||
Excess amount deductible | 10 | |||||||||||
Amount paid by the primary insurer | $ 5 | |||||||||||
Lao Action | ||||||||||||
Commitments and contingencies line items | ||||||||||||
Dividends declared | $ / shares | $ 1.55 | |||||||||||
Settlement amount | $ 17.4 | |||||||||||
Litigatioin fees and expenses | $ 3.4 | |||||||||||
Amount received from legal settlement | $ 14 | |||||||||||
Estimated Fair Value | Shareholder Litigation | ||||||||||||
Commitments and contingencies line items | ||||||||||||
Shareholder litigation charge | $ 116.6 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Aug. 24, 2023 | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | |
LOSS PER SHARE | |||
Stock split conversion ratio | 0.1 | ||
Conversion ratio | 0.1 | ||
Numerator: | |||
Net Income (Loss) | $ | $ (163.5) | $ (235.5) | |
Denominator (shares in thousands): | |||
Weighted average shares for basic loss per common share | 263,411,000 | 137,395,000 | |
Weighted average shares for diluted loss per common share | 263,411,000 | 137,395,000 | |
Basic loss per share | $ / shares | $ (0.62) | $ (1.71) | |
Diluted loss per share | $ / shares | $ (0.62) | $ (1.71) | |
Restricted stock unit | |||
Denominator (shares in thousands): | |||
Anti-dilutive securities not included in the computations of diluted earnings (loss) per share (in shares) | 271,738 | 531,957 | |
Performance Vesting | |||
Denominator (shares in thousands): | |||
Anti-dilutive securities not included in the computations of diluted earnings (loss) per share (in shares) | 149,080 | 297,829 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Events shares in Millions, $ in Millions | 4 Months Ended |
May 08, 2024 USD ($) shares | |
SUBSEQUENT EVENTS | |
Gross proceeds | $ 103.5 |
Number of shares sold | shares | 32 |
Sales agents fees paid | $ 2.6 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (163.5) | $ (235.5) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |