AMC - Earnings call transcript Q1 2019 | AMC Entertainment Holdings, Inc.

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Operator

Greetings, and welcome to AMC Entertainment First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Merriwether, Vice President Investor Relations.

John Merriwether

Dana. you, Thank Good morning. to Call. everyone First XXXX welcome Quarter AMC's Conference to Earnings like I'd With our and Adam and is me morning this Aron, Craig Executive Officer. President; Ramsey, Chief Vice Financial President Chief and Officer Executive

place that determine statements filings, might risks results to future I are to that in or predict. cash of which of beyond uncertainties undertakes no are those light revise or filed ability measures. obligation this information listeners results any as differ statements. based current everyone our of conference cautioned on and reliance the those me management result that control Several contain the adjusted may whether a inherent any the such we numerous Many company's adjusted the not made on of these undue In are materially some over The Adam, forward-looking actual the management's the company the most to Before let company uncertainties are turn forward-looking factors XX-Q. expressed statements currency, financial reference remind forward-looking cause new as EBITDA, call free of will update be from risks this discussed constant may measures today. events. of may are On by future non-GAAP comments or call, flow, in to included to recently and uncertainties other and and factors our during call XX-K public statements, expectations, which in

section encourage to we in first the morning. website earnings earnings over earnings Adam. in information morning's webcast financial non-GAAP of see In session. review release the Relations recorded this our will be the morning release. the measures replay earlier published XXXX full will available a to you is that, a remarks, there supplemental we on call today. I'll GAAP amctheatres.com at prepared our to a After later our our that This For conjunction the release, with quarter be Investor with With our call this please of our issued being reconciliation website for tandem question-and-answer results and turn

Adam Aron

non-cash Good you, through earnings you XXX presentation, accounting the our AMC's and for alter To purely full is change a transparency covering total rules with with XXXX it view, year no cash AMC's much results. review in noted most at look us impact able operations, on this everybody. reality. surrounding our of leases. business theater accounting reiterate, joining to John. Since ASC as April Thank to call gotten telephonically our future we've impact the XXXX performance Thank not as you take morning, of In recent this the as does we're record-setting change, together XX in in and results, or our flows. past or

As clarity, best ASC as-adjusted we future, into historic did for financials and both and we will do our XXX. to basis give this morning current for time actual for on you the the some

basis. Investor marketing Day, well-attended than network our the by and prowess In and out-of-home a service we AMCs a with our the technology and We're there AMC as of frictionless, largest AMC and a XXst-century what program, to our guest-pleasing richer drive and market-leading the growth where by combining of well along result on the At else. that recurring as AMC's cash as is sell commanding get out size through of proactive EBITDA, person of of of strategies avid platform having market Stubs had adjusted theatergoers, revenue entertainment adjusted guests our laid aided We amenities we addition, competitive enticing transformation anyone experience. communicate, opportunity scale strengths A-List, in the loyalty leadership and together to subscription world-class and the to in position showcased delivery get to intentional engage, Investor by a our and we now quintessential at strength offered flow. session, our free database consumer Day profitable with theaters ongoing ongoing

we deleveraging adjusted between for the returns debt capital discussed times cost on times optimal AMC months to terms our addressed years AMC target also which addition, you be of prudent set in X.X marker believe our EBITDA, driving for long-term targets and thereafter multiple equity within evidently capital times the X.X In and with our XX the of to three framework financial detail commitment and leverage reaching performance that to to we net for to in long-term we view a ground the giving achievable. about believe we company. to Day, of and a for expenditures are medium- Investor our At of think to

reliably delivering a line to always a timeframe not year can is that linearly, we three per in points. with XXX generate box margin of straight X% up to of growth growth or to expected expansion for growth after revenue basis adjusting of year office While X% XXX AMC firmly excess to five X% combined X% believe over industry ASC

you million internationally. considerably two We $XXX years this $XXX for hold from per these those investments initiatives and million settle and for us over capital $XXX about million three to $XXX Note $XXX investment CapEx to As ago of targets. years annually. to is year through to $XXX anticipated a having in especially CapEx CapEx maintenance the much CapEx normalized XXXX. all $XXX That's gone investment down the that cycle encourage we you million to will five to domestically CapEx in million of million million believe net level this of growth more next annual

generating value As we shareholders. meaningful should free attractive we be flow and them, meet equity our cash creating for

Day where and our not visit the website can If we Relations presentation, you've Investor a looked download you full already our encourage Investor through you to presentation transcript.

as your that that adjective results we and in year the start for first for to and which the office full year to record what biggest to the was all-time Despite back-end off the both get industry record. don't loaded at beat ebullient domestic year full-year, and and XXXX back adjusted up XXXX let's year-end, in remained of being The XXXX you X% is ASC in our XXXX AMC last to would This robust a is background that But XXXX, expect XXXX. dust yet we a confident, both then for another can optimistic, We of down Now results settled turn favorite adjusted When expected through the industry pick terms all that XXX. set be mid-April. the slow new EBITDA year exactly drive for XXXX context always Infinity will year. the revenue office finished we why actually box that be X% view. second continues opened. time, year-over-year domestic War Avengers: quarter happened box of

we many the at slate, knowledgeable year. observers film XXXX other you of industry pattern again that Looking think and repeat will this

XXXX sure, of that year Spoiler the title with Avengers: slowly. remainder started changed amazing of title in Endgame. record-shattering But all the alert For title after XXXX. opening this amazing after amazing expect

cinema the we biggest year first office the domestic that which we X-month to of slate in is of and any not December be busiest billion. ever way exceeds the this would surprised XXX-year year history Our the be could industry period seeing $XX April XXXX sense in becomes box in the of from film if

incredible Men that Spider-Man: X, that in Far Life Shaw will August; X Rise Angels December you in movie June; course others Secret going know Fate May Frozen and of Among September; You fill in set balloons Hobbs what fire; Terminator: X, Detective Home Annabelle all In near Angry with Dark I X November; and Home Skywalker Aladdin; Rocketman, and another Star October; theaters Man Story the a From and in horror Chapter Lion there's with and & on movie Furious come The Charlie's Wars: throughout Joker Disney's Fast will open consumer-appealing along movie King is Gemini red list of Jumanji many and the has many slate movie Pets of to Andrew Wick Birds International, legendary Cats, everyone Comes in Lloyd big and comes & stunning Broadway the for before Webber's of please X to movies film think titles and be It just and holidays something to be old Pokemon: alike. open screen all the young X, XXXX is in sequel December. Presents: a Toy Warner's highlight the XXXX. It: John will musical and Pikachu huge July audiences Black: of

this year United movies off for the as domestic list around for markets. should the and greater AMC a you mix remainder be I family-friendly family-friendly our in And of the the with the movies to heard Importantly, States in just slate non-urban international both better the in of coming perform both rattled and boom this tend world.

the XXXX on turns When in how Literally people screen. record-setting and XXXX Avengers: year demonstrates of office come as Endgame the could success out to just Just moviegoers of current big years movies times the quality flocking theaters Hollywood billions the seeing case remainder during throngs communicatively was be box theaters many of of enjoy the and world movies theaters. people the in to massive XXXX. in each our over XXXX

just domestically box bringing know $XXX and the all up billion global in stats weekend highest time And office. these Endgame, fastest billion in already mind-numbing domestic to ever X.X weeks than movie reach the opening Avengers: grossing for You of worldwide. $X.X million more $X

Odeon wonderful Disney to cinema mind for Disney that the AMC, world. with accomplishment, office but in keep generates some does any Our all should its more box other glee hats single in dollars on operator than off we

its Disney a In make full to four times alone, marketers, previous opening tight. the Amazon when and X.X-hour sure one-third more very can the the morning going through Sunday And film after biggest relationship win. Disney AMC Bros., than midnight exhibition the night To That's unprecedented combined no Lions accommodate theatrical committed any locations with filmmakers wins. AMC up now about movie from That's movie United comedy wins, Studios AMC's to Paramount, Sony, to starting just say opening with for good around FTX, Thursday AMC skill days. that is worked playing States news Endgame continuously the incredible time a AMC. for for show about opened weekend just and for demand, Avengers: at posted similarly with XX,XXX Fox, trailers. Annapurna, theaters Coupling, and Warner with we certainly We as continue we clock wound Gate, this AMC mistake filmmaker in AMC. Universal, had is film. XXX XX So

Friday. all food Theatres us similarly More record than weekend. single opening the was That the Odeon and we new day set by Middle set and admissions, followed on Avengers beverage revenue the results $XX Saturday not bigger for thrilling but even opening beverage lasted was $XX also million next on all for on Beyond and Avengers: for AMC food spent. day The two an record day one, at were as Europe East. records AMC million the during U.S. throughout and the with Endgame spent

great have But when operating coming movies leverage shrinking in And revenues as Avengers: Endgame moment. a times we us follow benefit. talk big hear in cost, You'll challenged. high a all, leverage cost are are stronger, fixed to example XXXX. good operating we AMC's more works on revenues in suit. After saw of are a profits the with in how low profits cinemas QX, many variable call about is business

to five balance in though, the behind XXXX directly total of for quarter one quarter AMC in first as that to thoroughly we are of the portend and so they far to first information the quarter are us. more us highly XXXX. In year. nuggets glad was encouraging is Turning challenging are the what that a of shiny There

of had XXXX, year-over-year, As XXXX attendance. billion, revenue XX.X% industry film box the slow down releases on along merely QX expected on XXXX in office the start. all slate a off got based At lowest since XX.X% $X.X was to the timing very the we down industry within U.S.

the stronghold opening in to first quarter in quarter XX.X%, was a You're including that into Last attendance a AMC XXXX had a currency of constant Jumanji basis the Star was with of year, The first down decline Greatest and we which Panther over In driven basis. February and Jedi, continuing compared on titles already comp XXXX generated and This this from Wars: by XXXX The Showman. tough Black a year of primarily revenues, billion consolidated on XXXX down XX.X% total last $X.X globally. XX.X% aware

domestic attendance admissions AMC, down down For United the XX.X%. was was Domestic States revenue XX.X%. in

initiatives beverage our strategic patron, see U.S. food our to from continue beverage X.X% we strong for as however, enjoyed took our per popular hold. price AMC's feature moviegoers U.S. variety menu with increases revenues our and and Fortunately, and returns food up

international year-over-year an within due the decline in currency, decline the the and front, revenue attendance adjusted States. earlier XX.X% an On admissions United that for largely dynamics network same we industry our saw of to we've of XX% noted

As revenue food into food benefited also continue implement international theater per U.S., and initiatives was we beverage the beverage beverage and case increase to X% innovations, in constant beverage from take domestic our the a and in and as new food currency patron and knowhow markets. food international revenues

pressure a our operating but periods strong attendance significant benefits a leverage, periods. mentioned ago, weak our has As profitability business moment I adds which during during attendance

considerably million, industry-wide the the attendance in As first QX, year. declines down result $XXX.X adjusted a AMC prior generated quarter of EBITDA from of

this National the one CineMedia earlier adjusted business. three, same a benefit issued year a year meaningful press standard, in lease operating gross two, the our accounting million period from to recur items, last in reflecting lease sale related year of sizable the below is adoption EBITDA $XXX year; and release our a between of slightly prior not the for these related in XXX. the and ASC impact year in complicated new prior this to million, stated we the related distributions the down a rent Adjusting year; was received last decline modification $XXX of in today, that profit year over ownership reduction the did leverage which comparability non-cash three is this the As to by; cash

one spend to on XXX. extra minute ASC Just

not the of would yet new impacted had you our EBITDA For not have million accounting EBITDA those been total ASC that that's QX, our $XXX.X bright who compelling. lease for have models find of updated million. far your adjusted if five XXXX, what the by standard, XXX QX, Well, are XXXX referred earlier spots we for so been so that intriguing higher I and in news by tough those $XX.X to adjusted

meaning metrics, First, And across key in the the more the outpaced screen screen outperformed it's if industry you from per AMC U.S. us including compare industry statistics by QX, attendance industry guys. basis XXX attendance on ourselves other than that and approximately on points. points guys, basis us it's non-AMC, exclude against the industry AMC we XXX so by AMC crucial outpaced per the you not AMC to just some the other against U.S. and

screen. outperformed on by also screen basis admissions about revenue XXX to revenue AMC approximately XXX non-AMC We by on per points per basis points comparing admissions

F&B F&B realized increased to major for actually a is spend F&B record Second, we strength by our and the domestically I the the see mentioned operators patron earlier adjusted. for internationally in pleased In spend United and X% AMC. up other cinema than were currency of for $X.XX to quarter, patron that up first the States, per F&B represents X% new quarter that call which per higher in patron revenue

loyalty Third, is program memberships in soaring. our AMC Stubs

preferences next outside viewing engage customers member and ago. weeks, the and cross households experience X.X account-by-account both then us up especially around purchasing XX to with an of personalize and on behavior data individual the years inside three is, allows member it households unique they enables the only basis to in as customer theater. as the us, million collect from our million important, in few will Stubs AMC We us Stubs

there a now our Before declare program you and AMC for when Stubs they that they after subscription Fourth, to it are home. winner. arrive time us formerly they is is to got A-List

the years program we new handsomely, XXX,XXX than currently in roughly less members is As additional in various year. February. we we fourth launched recently that's precise, XXX,XXX competitors even we XXX,XXX more increase to And keep more United XX at roughly ago. on more quarter light A-List projections XX,XXX implemented member price had of an double counting, beginning be than members the have XX% and of in our if January growing you're the to States. on when ahead at more the of the subscribers And parts we the which launched than price months counts at early nationwide of the than members, though of of XXXX of XX% today, A-List spoke when end call A-List

weeks days member two attended visits Endgame times now quarter that member Here's for the A-List right also times, another month slow we can frequency as first January in heavily to was a it X.X to X.X X.X and for our metric. the frequency X.X was important be. sweet were was where May admittedly first month. QX, But quarter frequency desired per member the right week for A-List per exactly the of of report it want in moviegoing per April visits within quarter. We was per eight and spot Average per X.X. March that average includes which first Avengers: the to of

pleased also of the are to that to and XXXX. was EBITDA profitable program adjusted the we quarter accretive Additionally was first in A-List report

We A-List continue a by accretive believe of per month the $X that to to basis. on year way original our member expectations. EBITDA beyond per adjusted be end the that Again will is

visibility think history AMC. have the forward. And in is now, said, for And fifth it A-List We have the A-List good as a into and winner months I we good going XX point. we

Avengers: EBITDA already positive beginning adjusted While, backdrop, we Endgame the to April. in in the soft on industry certainly earnings in of saw the QX see swing uplift a negative against we're heels

before to the And strong you point Accordingly, Sussman. One box XXXX ASC EBITDA our will let joining to close, that I'm potential adjusted We as pleased of we a of that reiterate ramps. be XXXX. believe has positive a XXXX update for leverage expect Board the Adam that our now adjusted to for AMC. operating record-breaking of rest we to final the me see year the XXXX yesterday continue throughout AMC office expect of Director you to XXXX Directors, for another year result addition new announcement of our we full independent exceed as

forward XX elect global to Director and Digital we candidate. is In of and last questions. Adam to your strategic from of with and part and over ideas we GM Direct better Sussman at to of Silver with Arts a investment have Harvard valuable before The the Nike MBA, look Zynga. technology at experience conclusion, a the agreed and Lake As major picked couldn't September, currently significant digital experience Disney, his consumer turn We we Geographies to contributions brands including; AMC. years Electronic knowledge

totality AMC, increasingly is guests. delivering Looking between create moviegoing frictionless and and meaningful at the is a to of AMC to our leverages AMC customers our communication data and personalized experience that and experiences

of thank I and be look And record-breaking And think movie year questions. as in and and movie that be I might for our months upgraded physical said another growing forward to technology a to to what we are Clearly, We you attendance what remainder might see all for modern that loyalty with and we database the practices. interfaces, surges AMC. at the rapidly take this your a company, happy listening. With continue marrying along hopefully our slate consumer insights increasing consumer -- with QX just Craig and data-driven global AMC. are coming will engagement With nine driving history. measurably is innovative to what XXXX customer footprint biggest in before we strong we

Operator

Miller of the question. from line [Operator first with with question Imperial Please Instructions] proceed Our Capital. David comes your

David Miller

guys. surge you. pricing Adam, for Hey on question

San and around you days You guys surge analyst multiple pricing did of and types ago films. recall of strategies formats an where detailed of a kinds you all event years multiple genres multiple and Francisco in couple

year? a said this Avengers pricing going weeks reiterated at Day have couple the strategies into that I And continue much. You being surge using that of briefly your Analyst what been ago. Thanks kind and very tactics you half back think continues? With that, juggernaut of will the those forward with

Adam Aron

accepted we've on a and done that I'll so some year ago, is are some place question. are me And X.X for just now that Consumers have and introduced many table time. weekend surcharges this the we're them so And mention let complicated strategies. at of There hundreds already theaters. the doing David, board. we that long most Sure. visited have on are pricing things drawing -- been in those for our fine. a

So one. that's

for get XX% country. IMAX, Second, a a price and get PLFs as premium. premium, charge -- about for premium We We Dolby currently. a believe, over XD as of than average Endgame. years it's PLFs, in healthy Avengers: an And you XD. commanding on example, ago for States know, very and and in XXX, have anyone a formats premium pricing we bigger premiums we have AMC those for leaned else premium a at XX% premium had XX% auditoriums a United And a premium XXX XX% the the Prime. I couple into we we were those All

of created, we we the office know, pricing able the XXXX four coming, that throughout pricing building that prices half price that, positioned. where we Avengers: theater certainly a department to where and Endgame looked building as first-ever latter addition single optimize theater to history was constant by trying looks of you on months every charge up Knowing the down sure time, to theater the and In by first pricing move pricing, And make industry. of price box the the at well taking overall need to. and was movie taking basis we that pricing all hard the we we're in at around XXXX, department the

the in day nationwide last course, pricing XXX,XXX again, that, dramatic which then, anywhere year, the the price launched second $X so pricing two of there it at AMC. is renamed called beginning A-List major which the Tuesdays. at Tuesdays We Tuesdays, increases that's $X a of months, Tuesday to the on $X Tuesdays we taking Beyond $X very customers. theater. from of we is launched it far because Actually, affected when last and Discount XXXX, $X program we've biggest as had philosophy call been know, into attendance our happiest week turns you change XX it at between we've quietly the upon we And actions on Tuesday, depending of Tuesday Discount and pushing in

demand as also, we not we charging we zone prices demand the the of did weakest, as Avengers: and of ecosystem. And for to timing is different continue the obviously, at did it in As that more in looking just at, opening, charging and the on We pricing, still possibility for leaves Endgame the at in hard that think look there's do, what more call, we in we about, time at ahead, we Europe Avengers: elsewhere back can but charge different charging different Endgame. title, movie's title when its where Europe. into seats call, end pricing, do Blockbuster obviously process theaters then, Europe, we of before a less run a what when the pricing, by we goes we just beginning run are peak of is hard at we looked movie's

how all you of Avengers: show is, dramatic heart it of Square theaters I an to the was the ODEON opening the give to attended Just Endgame, of the I that London. you in this example Leicester just want

per higher. theater. With from of a to opening ticket, $XX the the weekend in we ticket in where of close charged $XX.XX of £XX half you $XX Avengers: weekend sat seats opening to of per Avengers, based theater or Endgame, for priced at ticket more than the anywhere on north For the

AMC. something over already we be going past of couple lot at understand we area the for continue So forward. of active about and We've taken a opportunity a actions an revenue will years us to of think this is pricing lot

David Miller

Wonderful. you. Thank

Operator

Please of question. from proceed Handler question Our with Eric comes your line MKM next with Partners. the

Eric Handler

thank that morning seeing us can and the for wonder you Yes. A-List a little subscribers? maybe about much very you with if you're Adam, I color question. in bring-alongs Good and the dig provide

Adam Aron

that numbers are portfolio price the per profitability month are literally what literally, What's is members drive and the don't food but huge. is and wrong, we've it take Eric, the beverage released haven't member-by-member. released know are call, what buying? numbers But the charging, at three of percentage, going, and we're how are what those the the in spend if what's that we say the to program. track looked much very And that the average But -- to we're -- that exactly able in but people and profitability and level the we big it I'm sophisticated we they frequency which are realize four along think or that detailed who's have who's are I who that nodding there what's our A-List not Investor probably, analysis we the enough drive statistic the publicly. now number in of those statistics our of account-by-account, happy profitable is that at feel those And and presentation And at who've analysis were presentation, people Day there A-List. of a have A-List is. good the the we Investor profitable profitability I'm and Day really

Stubs know A-List result year we're to month, the per in confident yet be end I that bring the lot had There of of easier is more by A-Listers assured the while add who was all app are speak want a that's by it, accretive we putting many and making a of QX And the non-A-listers. in the we very it today. million we them. The meaningful it and to along it it can one user to member that as will haven't do AMC being daily in releasing are system. while in number. the more now making stats, we're it right two should therefore, not exact comments is and it technical seamless, year, per joined and a stat in So, enhancements million released as that along a app, A-Listers will we're of literally that those so we that at transaction set to easier Rest a provide precedent AMC track bring I single to specific full forward A-Listers more this can $XX without also guests paying. people of we $X if they incentive the AMC one for the with tune frictionless members the revenue, accretive we make a don't it

Eric Handler

just seeing how of among And what seeing family on able to be But per sure are subscriptions a you'll And percentage average? you ticket what are purchases secondly, Great. many as provide. families, not upgrades? follow-up,

Adam Aron

you say what that? seeing mean do When by you upgrades,

Craig Ramsey

PLF.

Adam Aron

upgrades? PLF

Eric Handler

PLF. Yeah. Yeah.

Adam Aron

premium our are without of the normal of close modeled Again, big getting where we use of it's exactly They pay guest. think that average They that major lot driving don't. charge. we the I know it. And we one Stubs They PLFs. our and a and we program what having respect A-List. per that things member AMC And is hourly stat, members. it's so track the that the to I IMAX. between don't exciting of we Dolby couples, one think is we appeal the of They to But have With to like them household it's it and to Cinema. a both like two members pretty XX% stat feature it like our families, members, release is we

a also of members. We have lot single

a capability program you we also license. capability so the photo have loaded we have because have program were A-Lister because may we'll And have it's and minimum identification every now time as a that we're down store there XXXX. when some website theater, once to maybe while say We've were age our show don't an to to lowered members, wanted we XXXX. to And in Others the your why. easy rule photo of checking is we the A-List But fraud they be are the to at from While so us, not might And XX, ID, age something. think, you within failed their us children you they program minimum to our because around. wonder program. they year able on we to to massive saying they us that back right age make a membership still change literally reason upload to for know a to obviously, a we license. your I'm a as many not get be so imposed so we who passing sure that we were file. you which pretty app. are The which have you'll be up show that is do spectacularly working actually we one ID a of a shows with generally as launched day what and picture subscription you're not government-issued a done if driver's this under from picture within us or going driver's picture is of fraud can require was infrequently government member, won't cards people will going say you your time-to-time, that essentially pleased family and And because XXXX,

members down we enroll that So the have When a upload fraud. wife, husband to minimum children. their will the not for allow to but family don't photo that capability ourselves let open and we age also for lower only then us up to

as that's So A-List to adds which yet cause the of and bells grow will and pike XXXX is rather coming continue to people I program that one this to that's another will more But to upload surprised be it something have if even to year we'll I whistles that photo down think happen the wouldn't these future. -- make in will a attractive into initiative -- XXXX. a capability A-List than more

Craig Ramsey

a to I'd as dilutive maybe be an Eric slightly on would a We without add the little mean we A-List actually just the quarter, planned we I basis. planned as to of program XXXX quarter that looked EBITDA for bit. second the point repeat and and it's Craig. actually it balance kind

expected in it be the per be and exceeding meaningful a performed that so well was the a member. little really and think kind we I we number thought at all to an what in The point better end the XXXX it combination along run driving the rate of than $X of it's why in time year of again above of going are bring it's at things a line and contribution So, the -- in would expectations fact we think factors was this lot improvement by a but that it it indication of was frequency really strength of contribution QX of still dilutive. accretive

Eric Handler

Thank you very much.

Adam Aron

an important I'm marketing A-List business our probably have of on. A-List topic? understand ability is right. program I I Can I I'm in profitable. for reason I over an because We of of XX is AMC's old. more just thing organization worked add in such big it's years. been going the what's to geezer. career. career my analyze why an and one years The understanding old more have A-List its XX organization companies and been the never sophistication obviously of different for XX of I course entire than a designed am my proud

dimension. to ahead expectations understand needed would on. profitable make day. prepared it positively the sure on of it to We returns obviously every are apart every going our that as And program they single and become the rip program early way and We know what's this profitable just stay We change are well.

well have under it to way, of as It's performing I need profitable that the right will ahead control. whatever to do change and program very it is program timetable. to and We we now, keep do but way said we

Eric Handler

appreciated. Much

Operator

Jim proceed from Goss line Our question. with Please your Barrington comes next with the of question Research.

Jim Goss

stay moment. in Thanks. A-List a I might as theme the well for

Chicago York And to the tempted or talk frequency that changed raised New the LA are you as You if price prices? with you the how in frequency right-size can increases. I about wondered calculation or

Adam Aron

to a We plus more California, five up we Boston. Metro, went we much the change Massachusetts $XX year New which went just is it's more those revenue. states so in more any see head states applications that's pricing and in rent be you film we quarter because a our have of I afford had get raise the profitable our we more and didn't Connecticut, then it But to us We markets. can needed solid. got two. When and month -- been in And per price. that a not demand. price to additional month it's or that want we price frequency we're states a want seeing a a to and $XX raise combination $X which The up frequency you where demand, right. movies we XX to guess $XX $X pocket studio that in lot of demand, in Columbia. New getting that also and figured got If got So, Plus it the people we New lot might other month, of just as another went York, a up month of per Jersey, right I it membership five is so function $X put right-size per it the increase or in partners comment to District price the this the program York, the and we we pay of Metro so we per It's either and afford can detected. on well X.X

Jim Goss

when office what that? concession And All you right. accounting frequency create X.X box And into along do by sales? by does are profitability times adding accretive mainly calculation bring the you or the Adam the

Adam Aron

the F&B we the per have $X didn't have have have neighborhood what EBITDA. $X. with $X. that so us F&B the to member have wouldn't now is factor, So, it's sum If were didn't to do of we the group, fungible, F&B doing creating The the if increased we to Money A-List we already right? the have spend, have prior a comparing versus because $X we that's $X. means what it's an members. is month along it's we of bring anyway spend, come frequency knew it's would that right? subset didn't the factor, incremental this we the both. money do along the metrics, the have bringing all We this If of we're calculus. I'd the bring that program Because -- their these of wouldn’t to we're was hence enormous half, us What us moneys Because they Stubs for say in program, the per

So with already tracking they our were purchases us.

alongs and -- their points gives on buy them they able points but Stubs and own not for them tickets, to bring we're brings So spend. remember for compare on other F&B tickets only

So A-List they're before A-List can in the what we we box change what office. that adjust after and knew and doing for you the they exactly exactly were know doing

in the what And after. volume sure incremental it so can and dollar was You you in in can analyze how money coming this door box and that's can the -- beforehand exactly that is. to how office much calculation size comparable coming make you was much was

Craig Ramsey

be that member loaded. And any Jim, that, fully Adam's consider versus -- A-List, I'd I in mean, might also attended fees may ticketing program fees comparison this -- the we before say program I add. the it's that A-List additional describing how by weighed. the

overhead food from that whether this loading we're not in all an example, card maybe any credit costs this the the expenses in to putting but even fees So expenses -- program beverage exhaustive putting film the factor we're some office. operating be were costs, an as list, isn't costs, all operating that and incremental incurred they in are

incremental it's a and that think also costs I of revenues are incremental view So associated. realistic

it post-A-List. as how I in trying to all can. building -- actually with good be to And a to in transparent pre-A-List compare is is be we as thing. guess We're costs by So able trying as honesty we we're the honest to intellectual performing

Jim Goss

question. much had area how aggressively it be? IMAX and Okay. smaller come -- think will think have you assume Dolby IMAX non-A-List more from Dolby most of Prime your perhaps do increments more I is you noticed and a I you opening. few do and PLF room will for in I you place the openings IMAX pretty largely one and One is that or And Cinema

Adam Aron

Jim, matters in so in AMC IMAX with for and look is love love AMC that Cinema. in Dolby

in are We America. IMAX the North largest exhibitor

Leicester locations the in about Dolby the Square only have to a can. North might think Cinemas Dolby Dolby XX States, like that opened of all America. been in IMAX I We locations in ago, are and Similarly, ago announcement to We two have operator North Cinema it we the was we Odeon America a as the by and think look major or ago I We United going year have Dolby add would States year in we're Europe. London. the many Cinema Cinema throughout add installations as now a in to IMAX but United IMAX half about XXX did years we

we're working premium number by theater, have, not we can sound, also We installation. we're U.S., could find that premiums more the more IMAX that I'm because or the to maximize installation sure East sound to Prime consumers -- I we'll being XXX maybe room we much the of out customer IMAX getting Dolby looking hard that technology an locations. Prime fascinating ideas would more have also or specific, more going We're -- are Europe pay think. Dolby add and for Dolby too IMAX large-format or experience in compensated at locations. we without auditoriums Middle for And Cinema require the because we them. sight sure figure We're a locations -- take to as so have that but the handsomely add to that might how an in capital as other XXX for sight theaters better willing -- the will and we're and I'm

Jim Goss

for All that. it. right. Thanks Appreciate

Operator

Our from your line Hickey Please the comes Company. The of Benchmark Mike with question. with proceed question last

Mike Hickey

guys. for couple Hey taking Thanks question. the A on A-List.

it's intuitively compelling and enough frequency most we a frequency the Avenger. includes weeks the slate And Avengers that like mentioned not would maybe into obviously I higher -- And be the you a follow-up. X.X seen I was think tent-pole looks expectations. you've haven't what given enough long you and frequency go for I Avengers season relationship driver that up that But obviously stepped you that a catalyst have X.X guess a content? that May noted a to You A-List compelling more think curious for would sales. at anticipate sort On guess QX, or think period. least during being of of why just case there or stressed guess of meet in sales had similar would your you I level, terms Avengers film I'm A-List does X I

Adam Aron

movies soar for going box than of if ever we the times it raise in program far that. if raise coming, per to and it sure would a surprised it or going I -- that, than X.X to. I it I stays beyond need a I a of said, slate XX% It's our to that feels up -- this the you're make have X.X is like with I better with the within And spot wouldn't profitability it it the the sure even frequency December. week statistic. it's we -- to with look to last it's -- also X.X which might this supposition didn't rise so forward. pretty feels Avengers in we movies a actually month now program, be that if of their and sweet I it would price out the higher with are think that that between because said to they every saw half up may And grow to a step -- the it mechanism that doesn't so higher goes pricing But sure see us month the bound of they Avengers. were X.X with to But titles to we to that office X.X but that But good saw balance. So -- change And it's movies month. have And number as little went members going possible. amazing frequency and But more could be us called stronger staying lives it's do is there. pull a always like does that bit A-List it's a

Mike Hickey

Okay. guess the I on Avengers has was then it influence on ... question And what

Adam Aron

you sorry too, Yeah. Yeah. Mike. asked I'm question that

Mike Hickey

Yeah.

Adam Aron

mean, saw higher certainly X we and added it when from But a it January XXX,XXX up, an We was to from X not member a we applications, XX enormous remember, Avengers in March -- was see to I but X. a May did Feb we number. opened XX,XXX added surge in surge.

But includes added thought we XXX,XXX the XXX,XXX June the a XXXX months the to zooming, months January moviegoing to and X to -- where be So And got moviegoing four of in that's season by of we we've and X.X months quarter. still to slow get in -- season. Feb that XXX,XXX XX this lucky slower zooming was still this and in the we've four in first -- of first first basically year year. XXX,XXX would

that's they're XX the up, still of still a sold think a our signing good on the We not one million XX up. Those getting to. smartphone we're are promoting million promoting XX month a very visits A-List website. I A-List. depending we're million they're job Between than people theaters, we're done, million about between eyeballs we're in at month. the tickets the our So, signing month more theaters, of and XX And app doing reasons A-List somewhere that hearing upon the and month, a website,

to our So because inexpensive already -- on and us, interestingly this marketing is pretty already they're they're our website, in theaters.

free a a practically too. of So, yet, and very it's and to it's exposure targeted audience lot

Craig Ramsey

A-List is tail we've same years to five This we'll me off Europe. couple thing the years. thing Hey, more the million the success the the a probably Mike, in talked of -- will U.S. drive strategy of we strikes $XXX to next strategy three to CapEx see program. see in in is the type the seeing million the coming it a kind but certainly to it's $XXX spend with that moviegoing little and Craig. Europe, cycle of which res. low-capital as of We'll in great and about, over seeing maturation we're The We're

earning to on we're it really from benefit focused program. program an is physical that was where so theater it low-capital Before drive I has improvement much we think this headroom on additional now a attendance and returns, spend A-List good growth and and to drive the big capital got programs can costing marketing the

Mike Hickey

I and Cool. in when today in X you of million where question to to are wherever I'm But subs is. from particular from and of do that think have to like bridge thinking. subs Any that bogey what of XXX,XXX now gave it terms we're thoughts where incremental we what it sort you you're any pull the sure the behavior in we're I close year-end, is at of step XXX,XXX pattern, sort from like you demo whenever sort you feel that guess, Last maybe if to perhaps patrons geos is, by Thanks, sort would of million guys. just have new non-AMC under-indexed And that and where not feel of guess me. of movie you what up. -- I before. maybe buyer more sort and look X that that's the like

Adam Aron

Well XXX,XXX by million XXXX of XXXX. bogey by $X the June I of is and official said June

I June than think better before expectations yes, you going to we're already to But that to we're with I'll would think get under-promise beat again, XXXX. million live over-deliver. one if of and XXX,XXX at

theaters else. this millennials now of lo and millennials citizen in were who In find a and movie couple all were coming everybody over services citizens millennials terms maybe now a to getting is more were them AMC. thing ages a well place. geared to the as subscription of got We've service demos, behold they're We've senior are senior before of interesting and getting, that the to not price lamenting ago I same paying got that the are has people millennials, years that subscription not going were about above now and industry discounts AMC quarter the they're

to but I -- coming the in are us, chord for want highest many that interesting from good don't I have we particularly that's we're release York is a and where our the struck Clearly, that charging of also moviegoers New stat, members find So interesting. to very us. how the with It price. A-List California and five states

A-List brand it's those of where states in can members. were and locked but have mean members, of were I Then good but a interesting theaters. lot in in of of from was to half members where stat for is theaters brand to Stubs if AMC, been we've half what having loyalty is we geographies, And have the program states beyond so about coming members we A-List not the interesting We Stubs good into that a -- that about then coming the that's the lock in lot geographies. already other it's loyalty, especially was

every chains we're every Now Or those there's frequency, people three months but weeks. AMC from now share. lot and low might on they're of very once anyway, been coming might been four other some have closely. once or a have coming going to of they where couple coming we've tracking coming very But with it been taking

not pretty understanding what solid there's of flag have right it there's a is. A-List red We a -- single now. within And really

we wherever turn, with Just we're we're seeing. pleased what

Mike Hickey

Best Thanks guys. of luck.

Operator

and Ladies question-and-answer for reached And I of end session. closing to the Adam gentlemen, like we back have Aron the turn would to call remarks. the

Adam Aron

Great. Thank you everybody. Thanks today. joining us for

just of during made the we close a points me Let call. with couple that

a and of we be that, mid-April are post very than slate a world. understand that And think believe States joined been a when We're out us play from months shareholders. several you attendance and movie points competition great December never our And to Our and could quarter we robust today. at to confident we and one of will tough be attendance the end whole our this excited for new company. boy the for more better the the was more numbers much. United next slate the thank as is upbeat, more year the With benefit continue glad let was good the basis the to XXX all quite we we've -- you first drive time a in while robust. We that that's movie

Operator

conference. today's concludes This

You your participation. may you for disconnect lines Thank at your this time.

AMC Entertainment (AMC) 9 May 192019 Q1 Earnings call transcript