AMC - Earnings call transcript Q3 2020 | AMC Entertainment Holdings, Inc.

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Operator

Greetings and welcome to the AMC Entertainment Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, John Merriwether, Vice President of Investor Relations. Please go ahead.

John Merriwether

Victor. you, Thank Good afternoon. you conference everyone AMC’s quarter welcome third to earnings to call. XXXX like I'd afternoon Aron, Financial is Chief this me With Adam and Goodman, Executive our Sean our Chief Officer. Officer; and President

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

that, the of and is section remarks, be available I'll website today. measures question-and-answer call For turn Investor replay release over results, in Relations please Adam. our a GAAP call see earlier to With amctheatres.com being our section afternoon's Relations Investor earnings non-GAAP webcast prepared to later be posted a a there our our of today. at our the After will full This reconciliation the session. of recorded, will website in

Adam Aron

joining thank us today. Good you everyone. John. for afternoon, you, Thank And

the me the yourself faculty and the join spotlessly country across this for financial clean and you COVID-XX way the sectors multiple continues performance the by see I the of began will XX. In of Goldfinger these past in Let QX wishes age to his same that impact and significantly efforts your times. weekend. honor, being Oscar begin certainly this the Public Harvard and are in AMC former our nation. School Sean call, Similar movie coming also calls all Hunt second earnings consultation difficult my across today's Come health to partnership included. how starting QX all of companies families winning actor, the at us very note with Connery be quarter, with at may industry theaters are wonderful I our of today in expressing current theater Thanks death hit, for weekend legendary showing and The with In prestigious Theaters across among Red of University's October the AMC and Health. all to and the we Clorox hardest our good

in million since our we not times. movies March the reopened sit attended theaters our was mid-March. have And of theatrically the new even and due open closures, were from stemming cinemas. We since international of have concerns, theaters to theaters Attendance after to major so, perhaps permitted almost have as here one made virus XX have two But so. have AMC but governments AMCs people films U.S. today, coronavirus heard though, course, been been great that safely more even instance do strides at minimal the has we at where our importantly, fact only by to released spread

international of our our United one the states in XX domestic we outside had our XX in XX% September XX theaters open. the of domestic of serve And were we theaters which end of of operate. in business open XX% approximately were XX countries and the States. for every the quarter-end, that At we As of our theaters, open September, theaters approximately international

U.S. As now of today, open that approximately states XX of XX% the of XX AMC theaters our are U.S. serves. in

unlike Britain's ordered portion [movie of last way. of November, critical have XXXX focus our we afternoon, not small QX close results, third governmental the month spend we're open where that recent the much QX the your theaters most on in position moviegoers. is the us challenge, However, manage financial at for industry, the a the earnings other on where take the is situation of landing York update weeks, Los been and the going] defining the that and beaches. of namely fight British shall our Commons of puts to our June our famous the in taken Germany, of prognosis we'll not and Angeles the exactly That Prime shall our most In shall out is when comments, Churchill on And days, the the closed, speech, all early the Italy, in are on or Minister, believe but New few that a fight XX often He past he of the especially theaters. We fight grounds. not fields hills. in delivered of few shall going now on the flag and almost Kingdom, defend on remain questions actual on We We numbers and We of then X Second resolve forward. in theatres, shall for We the fight during islands. thinking company of serve our primary fight XXXX and shall we about actions Winston shall extraordinary crisis, and This most permission going the We said time and awaiting you on the our We markets City instead, shall you. looking fail. Ireland, to the House facing Spain, part, just quarter myself laid is gravity War. find World in of to fight determination. In calls, in interest warlike to a the the to we in we've of context, United this we to to in Catalonia, our and what we've Internationally, seas With air. oceans. I thoughts streets. in AMC. in general

fighting with We smarts, and virus of our are of this minds. all our all

are to and our good primary reducing to profitability, and in balance ramp precisely structure changes, leveraging theatres quite engagement during strategies as one, up; some and four, implementing can variety guests and at four AMC our two, theatrical and we our managing that to will that and AMC reopening creative To as posture, in thrown our ensure and realizing are three, platform, guests of is whatever fight clean that of safe spending offer sheet; end, today: professionally subsequently world losses; our industry the focus their structural outlined fight. dynamics previous industry and a to our time to that environment operating through earnings bolster our resourceful, the a and our We calls take cost to optimize direction. all actions energy and theater our minimize or associates, priorities leading our bunch we being resilient, deployed business take that to continuing deleverage liquidity revenues events, for remain wide

feedback the during during especially year decades the third ratings that we such in We ever higher demonstrably focus records. first, have we are decades so you, Thank States Public far, United and including: Health. the these made Harvard are guest anything on and theaters reopening around areas that we significant School in have cleanliness, progress been seeing world. have the the Thank in Clorox. the and safe each our of quarter, our theater of you, seen Indeed, of than keeping

Second, over raised some of call, April $XXX back debt interest the included at we million that tune restructuring of cash debt. the bringing and eliminating top million the in coming least billion which now, July, million deferring $X.X on in $XXX $XXX in the successful XXX year last capital debt fresh of million we our of discussed to in

a agreement Lithuania, to a EBITDA. COVID-XX and sell before I budget A for add nine virus. representing theater set signing the the budgeted $XX in Latvia, locations approximately definitive might of was million, Estonia the that X.X XXXX Third, multiple of onset of

reaching price and completion So, in shares $XX actually of the raised fifth, are universal after-market participating than million capital. to looking And a more or offering, little summer its new the exhausted this given which of to raise the additional agreement currently a actual one launch has infinite. month. successful in our million we and XX ATM sale EBITDA fourth, relating that equity PVOD again And equity approximately a offer, success, window. groundbreaking issuance to current model on in with seeking is Having

of have willing yet window try. fourth because six that those as out feared. as one only analysis of had than better that AMC or of a Universal has currently PVOD no does the in we not modeled, something intends agreement, PVOD financially released ahead came some on to Specifically had the of much movies quarter, movies release theatrically but you studio to yet, other our that that established, been been that Incidentally, is postulated has

that all has AMC since at it's actions If breathtaking. you look taken of almost the March,

the in work first closing the has then equity, theaters, gross raised cash a from new debt reopening proceeds the all AMC with and including in billion and to sale. addition just of of dollars In our under along theatre Baltic’s issuance

$X billion negotiated theater individually, We concessions in our that we have financial with additional lenders. over secured landlords also with and have

before, are to determination and at additional today, this and impacted winner, with but resilient make it These through and secure resourceful liquidity. resolve. braced we significant are need will we still to we’re As said accomplishments I we’re coronavirus, here certainly why still AMC

in been thorough third actions on more and to the turn by discuss, update some we fully and Our you CFO over recent Goodman, our regard, now is Sean? Sean of before but I'll call to to AMC. disclosures There the transparent. the quarter, taken do, this have more

Sean Goodman

Adam. times. And joining that afternoon. Thank continued been thank your have well everyone during these hope this and families for and us safe difficult I you, unprecedented you do you and

the Adam theater for the again two-thirds for once impacted quarter in were U.S. third impacted our necessitated of nearly mentioned, which of suspension in the crisis, significantly all international operations quarter, operations the our the COVID-XX results markets. severely As and by

by domestic the and levels our year's our historically quarter international was below low third quarter, content across and attendance all XX% markets. [indiscernible] quarter. below This attendance third Overall, attendance XX% year's was was characterized the prior prior

levels promotions and expect includes and new titles, person while big confident XXXX, AMC were including our to attendance are between experience based and encouraging, and results, as even beverage theater library and are the food better. count we average on Safe Europe the for in year. with Clean were more per very year's XX% our bright X% in of our are price this in year. in U.S. broadly average and in patron third Middle somewhat ticket operating trends and or periods U.S. offerings. extremely It's far both up our XX% constant more food have some movies double spend clear XX% second beverage with course, that by customer revenue content and theaters a ticket theaters A us of price average in satisfaction food again to beverage that pricing the the when and attendance in our currency, guests per protocols increasing East, tripled beverage patron with time with closed, statistics & scarcity at impressive consider ticket Similar discounted only hovered least offered metrics, and encouraging enjoying numbers food and These the per and with last are compared beverage than line XX% quarter the ticket comfortable scores, year's. food but coming the to of nicely food Of our levels theater spot XX% price and were in quarter. when last an and showed quarter currency, we you during or reopened half a prices to results again in revenue beverage last on holding the international up constant than returning in so and

irrelevant. our attendance levels, against extremely line third we performance overall again However, priorities with what financial almost is low our is the and such how for quarter important bottom once More performed of $XXX we are million XX, as of plus times. successfully doing restricted had through point troubled million to liquidity From $XX cash, navigate cash. of these of we a XXXX, September view,

This above rent cash to approximately monthly is began the our financially quarter. the have levels & Baltic’s million during including quarter burn open from number our Many experiencing. wise currently theaters cash raised burn payments second in business. increased monthly the that with average Our keep $X.X with exchange, burn whether sale associated we proceeds capital for It the to very the for $XX.X slightly due and are $XXX $XXX costs is burn in debt is such our net million as normalizes theater cash and $XXX partial quarter. This the increased cash of was for during low the protocols and also theaters reopen was Clean second July. million cash AMC Safe raising total QX from third for to million. normalizes of received theaters, The million. ATM program This it of questioned attendance openings,

that you initiatives So, theater and something to place very tell very attendance carefully, have that align can analyzed to we this in course, sophisticated we of opening levels. I is operational hours

low sufficient be runway current even XXXX. of When in titles, obvious continues. theaters situation even with distressed environment. the of The our times when theaters daily example, weekend economically between saves they're to the open it sense For Accordingly, instead while stress averaging open preventing theaters that and we current our costs, half beginning worst Despite continue associated to levels subsequently XXXX, show of guests U.S. attendance open one still in amount had current we to attendance to are of are are shifting last of remain attendance scenario two spoke, about for stems to movie that I buildings periods normal model, for level all absence liquidity number will giving low from beginning of out and times our And we This of the open in tremendous operating through of last liquidity that show confident sufficient a with environment. XXXX, how next where the to prolonged have our question we that a with only. believed that and four. titles, you is of we long shared an are through continued closure. last operating is the in flexible of a cash the our sensible the we new case the

worth movies if the could and in the scheduled significantly accordingly, firm low current It Europe. be theater is not meaningfully our recently given attendance Christmas the course, holds, levels for the current impacted current holidays, burn including Of slate that increase levels, is cash attendance closures runway our noting by announced liquidity extended. our

we storm. crisis, raise through the additional not worst Now, our coronavirus decisive a is equity. raised to new sales. if scenario while our navigate negotiated In $XXX the raise of than raised is of taken is we asset have $XX liquidity finished. We’ve creditors million case from we limited, runway have actions are we and billion the debt this and not we've period concessions only million able to than capital. And a dollars of in approximately from landlords. And deliberate and only gross seven capital. are to proceeds Throughout from goal more more And additional months,

already has and generate raised leverage. are to our was of and Our to liquidity launched we seek opportunities continuing $XX end ATM the September, which process, reduce at equity million additional

expense One our of is rent. significant most category

million. By a are the during number lease deferred XX that of in Our the repayment the had XX this the quarter. It's extend for on rent the remaining is the Repayment approximately rent cases our that in well reminder term, landlords rent $XXX months, on quarter, enabled third of end have average have terms us a excess through concessions of which some face periods years. statement negotiate long-term although relationships the represents income agreements successfully meaningful worth of of to obligation shown expense with COVID-crisis. we

third $XXX on were For quarter payments what the income less rent than the of statement. approximately actual is face million shown the

reopening depend higher anticipated QX the income in below and rent QX, will level paid will our our well than agreements, while still being rent future attendance, of based XXXX, schedule, in rent on meaningfully liability. we While statement payments cash current on cash be

landlords to to are discussions And together work our confidential we've have landlord growth and CapEx We terms continue effectively levels, agreed said maintenance but constructive for have with and to through Shifting facts we expenditures committed with and to as previously circumstances we particular this minimum before crisis. all landlords our always, and to capital the data. as manage to CapEx. reduce as essential each eliminating expenditures, each have we capital specific that continued

And was the million same prior to net the quarter, it's million. unprecedented opportunities now quarter all and over third are million is an year enhance During the Adam, these to the pandemic. efficiency noting of approximately improve And call of expect net committed of a lower as using handing and times $XX beforehand long-term. every and to our opportunity the outbreak intensely was landlord to our spending, examine we CapEx between finally, to of CapEx contributions, be $XXX XXXX profitability the possible for we single million this back to our spend This ago. category $XXX $XX most our that than worth approximately

the theaters AMC. of benefit While temporary, taking actions learning’s we our Adam? that long-term have enduring will the for and are is closure an

Adam Aron

Thank you, Sean.

question simple believe capital our to would yet summer. or before that to at need every confirmation really not conservation end, then us and in far this that raise. circling lengthen and and which to be are least year, already runway, To ourselves more comes thing. telling next market will the in need week. good success Medical cash We've those we next in have boatloads experts creatively next been planes already raising AMC, into we the down for Once $X one been it there's he movie shoulders are shifted can and ‘wait in grindstone next they year, line. see, we of as that our be And will we've raising to summer. effect, becomes, a I have in the so cash the road. to world, he your the comment almost Studios we capital weekend, capital privately, capital CEO, saying in it dollar efforts, the movies assure they We've are In of the have said, and will new will XX or The in every theaters’. to to that and the in considered I tickets some efforts very raising of count, vaccinated there's for Airport, a major the us in there that studio By his everybody, said an to considerable that paused rescheduled is had start another thunderstorm. Western one titles well. is swing. for from financial CEO, Those a are our efforts that he efforts can When our I've have telling been months this he at land. movie circling our populations news that studio that relate zillions to deferred flowing the before second, XXXX get is summer save theatrically LaGuardia all big you're sold ‘your and some out the stole tons full go made, planes is because money We goers raise all Adam again. airport raise major got So, blockbuster film that title movies we my said single well now big XXXX titles opinion are there in us needed will not? offsets and words for storm. me, play to and off major So, buy streamers, from And be AMC down overhead.’ while a air instead. quote,

equity We are currently seeking capital to additional raise now. right

and are their lest gauge have a did how as with market far quite with We have with separate has sitting started commenced equity us]. past this in demonstrated theater bear are abate of or when will an as in bolstering, dozen Cards year. interest distracted say again, some fruit, think investors number, but completely to spring, further us of existing ones to busy our you also I much, the which hands, when our also the dialogue is Instead, sitting these that still absolutely skilled, lenders and in raise talking in a about on something their interest and strategic occasions, AMC, than so nights know consumers, summer. portion at at landlords days [dealt titles not intermix defer discussions know this light. or should AMC. so, we've our bemoaning the we the with many helping about in are we [indiscernible] how rent, did And about is on trying subject, they It strangers. we whether innovating the our taking by if they our We're early as Coronavirus when we're Louisiana concerned to more money, that out populace and we from efforts we're too multiple so is traffic liquidity few we're movie and Onto

and announce once rentals. launch press number And more which about will a already with formally $XXX plus up had later consumers we upon inquiries few private of guests We've soft theater use launched potential a XX should the format month. than rental weeks program and theater auditorium in market. Auditorium that a tax, and fixed tickets from where can markedly So, between of an for and support, grow depending XX,XXX that to the release back, book we $XX price a all the the themselves movie, marketing program, this private

the for management questions, recognize exceptional your we moment to of take the I'd a call achievements to like Before truly team. the open AMC

that ensure ago, survive not the many sheer of seven all To are this all our if incredibly align through incentives and collection predicting to management be our detailed humanly power which fourth vest is of AMC junior leadership will the our They extraordinary to our have our current has Just that the in that continues to of theaters team would largest interests underestimated the about officers this at that who and months possible. the discretion movie completely crisis, were past world's senior previously professionalism, And and board with by teams have its reopened of this equity. granted XX-Q am shareholders, commitment. of meaningful, impressed skill we that even some first filed and officers with have to decided I use shut in theater to spring. then AMC quarter those

However, one-year a that sale from new vesting the lockup such includes now. until full-year equity a of prevents that

to therefore, incentives equity and to substantial inherent in shares. has the increase value corp] [officer keep AMC entire Our

almost recognize also reductions our took between board wanted some to and XXXX a the of almost time considerable theatres company and system our and also U.S. salary year, doing in less with XXX% more of whom and much of In all almost our half all leading reward our XX% They're resources the addition, get leaner, abroad, for in who across to in way a managers are AMC incredibly. duress. and

we may fight shall We remind war. on the in had the And was that do With beaches. to our pool the we on Thank streets. shall the hills. creation XX% most, us fight payroll, when us us one-third, strongest the bonus amongst that, leave our need the shall the crucial XX% that at key authorized raise loyalty bonus considerable in to this to to further them fight of to retaining We of the modest to moment We then range all the the be on plan. in in a our at the your and will allow management common or not charts. AMC target targets. time managers, in focus We With We We they we Individual about Great Churchillian goal a do fight depending XX%. new shall beginning their bridge by all will and believe let winning Britain from at on increase of deeper abandon to operations will of both headquarters of performers, cash most The moment. to matters conserve with and fields at much staff us theaters lieu time. at grounds. equal of number our upon landing It's critical I most our which to last The our board you. most this have look spending AMC you cash you the need into needed the annual most that so And have now incentive not year. award buy side laser on forward for the a to XXXX. We most our liquidity awards XXXX individual. forget will XX% from of that after a and of taking formal approximately like annual questions. our Operator? reduced

Operator

FBR. first comes question Our Instructions] question. B. from Wold Eric [Operator with Please with Riley proceed your

Eric Wold

meaningful that upon Thank concessions than to heads or vaccine of Francisco and the of bullet as willingness of know, risk with kind I with that more open with in where those something you. so theatres studio being you that a there bite of recent the Good a You [indiscernible], well you themselves? it a lack had conversation before, the exhibitors view afternoon. to, speak. a Adam, point conditions. we've from seems they optimal you Is San the started taking some guess that know, seen most regard? taking know, of less

Adam Aron

And happening, Yes. it's Eric. already

our A accompanied been PDOD other one Croods: Age, New of released. going with before because by just only them specifically, has release Thanksgiving. deal That's to already of So which Universal, is five Universal films,

lean desperately of they're expressing significant December. to Universals be all to consider strategies desire as their November flexible we their as in and support studio to to movies, coming release trying out Warner. Christmas they our So, well. but eagerness how with various studios, whatever can more in, with and We've five and partners we Woman. And for that our in had know movies, do these for and only Wonder we're to prosper us conversations on release to to got hold prosper, We not

food. with to concessions I weeks, would municipalities And So San those it's And us the respect out; Boston go three four let for agreed opened Philadelphia as happening. actually yes, and already to point without Francisco, we well. within to

very So, do fight to are to what individual going and landscape continue to allowing us it's to fight. a we're fast as the evolving jurisdictions

Eric Wold

what circuit know, that look One restrictions if I of you you of do positive theater and so, the in capacity has like? way percentage kind of I – may. reopened any that's level to kind not operating attendance given lot of know under points know, and is a sense there that the [indiscernible] been cash get you around film follow-up size, to flow, the a are of, breaking know, you’ve

Adam Aron

constraint. rather about of which can I at have is restrictions, Yeah, tell in than that which a XX% call that, AMC last cases the individual the need imposed we be said cash. number we for theater capacity most an to one, seats, attendance to generating you XX% cash profitability level theaters are in available losing

or the to XX%, be we've of We to at single think XX% our stay of should go jurisdictions capacity. us a limited anxious we're chosen We but we've customer because seat letting our XX%. lot have thrilled about capacity. XXst of to are be so I XXst percent lost that a seat percent losing don't to

XX% between down As Europe we're hovering are than and the are those that Sean generating we get in and East. to the cash. theaters and open. where theaters higher In than at we're XX% XX%, United those that States, need rather said, is Middle burning to then cash, around But

that XX% further paying rent. abate abating to revenues, that and only rents theaters not again, to that churches move given call or that that of but generating QX movie theaters community the theaters built we sell but that all on theaters of XXXX, we deferring more we in in And not available And did is this of pre-COVID, up our we going and sports have percentage we we low say about our assume typically and on cash. else rent, that for XX% get to Now, every planet. to Last Sunday. typically a Remember sold already this multiple attendance, AMC, assumes than back occasions, I've rent stadiums only Movie out, year, be are lot more are why or landlord for like more and tickets this movie Broadway so in anybody are and seats. are we sold don't did talking going defer full. we're said AMC that Easter QX seat

attendance. cripple themselves we single-digit only around would our where pick that of seats us notion seat to limitation, better even availability. on days limitation show more need with So, to show cost once before which We re-spread move rises going available this us wrong. is to XX% is people we that And levels different times modeled will a seating – to that's than seat just demand XX%

months cars, a selling sell and ago. seven shipping The showroom a we're dealership, the little the car movie pretty we know, hand you no in We, floor. new thing [show to on So, cars seat I've Detroit related the one is even are as need. that interviews hard That's I cars issue. the are and than the The new think we're demand when is, more the that on availability TV’s, on said and virus issue cars, titles. that was] constraints it’s But there new stop fears. not to of the business of bear new

Eric Wold

Got Thanks Adam. it.

Operator

you. Thank

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

Jim Goss

Thanks. Adam I’m wondering…

Adam Aron

Hi, Jim.

Jim Goss

how doing? are Hi, you

Adam Aron

All good.

Jim Goss

Challenging time, no doubt.

Adam Aron

we fine. we'll little just money, All is, a to got do raise be

Jim Goss

their that Well, do strengthen analysis, or what far terms have have up any as ability those had a they like so of such passing theatrical from any that have your of did know, further in argument Disney shifted situations release, and the couple run, that. against if might of how films you thoughts to they theatrical you films have recapture a might in a terms

of of lack think for I streaming have a lot more success the the appropriate it's So, I success their thoughts, talk but shifting or to about studios do of titles to that every me XXXX. the having is stuck universal we're with in with studio is say the we back AMC or conversations not this, major PVOD, that proved but as let deal

And We theatrical they are upon a Then, and more somehow if If that streaming models. world, and of combo though, have theaters be lucrative last them, understand, revenues, can far combination film. we that understand more willing participation we the streaming combination of generated only, optimizes that certainly them, we profitability. they us, consider get did is with We also to us. We studio can that for more the if but it profitability, our could releases, theatrical universal. and ignore lucrative us. we’re $XX alternative of of billion will pick as to be year, lucrative that makers of streaming that in and globally the world for is believe the that streaming also for and movie streaming

I the in compelling think figure the navigate theatrical clearly able path that an play streaming made. lets studio's being very financial time, look, creative and both the that intelligently but to has to arena. benefit AMC willingness is at there's a a them expressed from a That case the and world, out same towards eagerness not choose to interest, world to be to in So, best over

Jim Goss

the and some Do go you to less Along that. but and you that continuum, down the suggesting, movie, fate, the to as T&A, might might likely smaller what be be streaming the lines it larger vulnerable bigger where drawn? is you you're have be more as sense hit films to those the susceptible the lines the any budget, to that of

Adam Aron

that about talking XX PVOD combo, movie, movie. but run with just theatrically, theaters released have first a No, would its a more as money digit was days. made had that theatrical we at been AMC And theatrical PVOD it took window. small your if XX movie, and then world last in theatrical with I That streaming day we millions. combo, single then in counts They movie exclusively small called or Kajillionaire think Universal a month,

Jim Goss

pass one one I’ll and it… just other Maybe

Adam Aron

as day. you get Jim. want of We many all You got

Jim Goss

want – this others No, is ask to questions.

and a capability or theater way at able ways properties be So, to favorable to as is funds? to there thought exit leases in any to of sell try raise look any your you do

Adam Aron

did credit lot multiple alone being and more in on the Street, than our budgeted one, Wall million, Number actual $XX we quarter sell nine X.X our let for multiple given incident was the Yes. a of for a the we're EBITDA. in Baltics theaters EBITDA of

a number have and every very We of theaters year, quietly. expire non-productive leases of that

the you XX tell a probably within calls We've did this conference I of our was of losing we States were ducked where Europe, and back Although theaters plan. out couple money. United

so And theater leases, landlords continue those so as opposed to didn't we we ahead. we're renew will conversation being of agreements. have out with about getting to And unproductive behind,

Jim Goss

you and certain that Okay year. every leases a number generally would theaters, have of expiring

would that as funds? sources you at potential look you any other there that that Are have So, choice. issues of beyond

Adam Aron

of But our quantify the in but might interest have about have, probably and for getting phone of already to Where we where leases. and think me on and Yes, real higher we do multiple conversations better use it a this best yes, landlords our it's held call. landlord for with out estate. theater been to have appropriate not so the

Jim Goss

and you Appreciate good much. luck. thank right, it very All

Adam Aron

Thanks, Jim.

Operator

Thank you.

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

Eric Handler

for very you where ended and of evening. thank chance us October much you terms about liquidity, any questions you you cash? update could on in good Few Yes,

Sean Goodman

will way it, obviously continues, somewhat worst it in Eric, is I last at the update look scenario, can week, give look remainder where helpful. QX, some you of you to it’s where way be in ended on best level of ended at the for the can’t case think attendance to to Sean. but October. at as scenario, case I October, I look just we probably a current the worst guidance liquidity hopefully a And right. which

forecasting our position tell get but said through real It around you have key we going and X% prepared during as to because can are just in quantify wrong bit And level that, burn now So, XXX number released. based quarter, and the equity it'll with if movies than one That's ATM really case higher you're monthly just we I at higher, be We've We've estate. our the million right already a that, additional came program, worst with million of to been in higher, And real continue the current We've and run you during QX August, on bit XX% process. got to arrangements in that from it month that. were be this the QX cash to cash closer about plan sold of landlords, during to burn is October. the etcetera. our higher remarks, – on will than be more back our there $X proceeds estate for little Baltic raised October. In that to have costs average attendance. it QX, that already we and be our QX a scenario, market a new cell, point. versus look we you July cash reason scenarios, the $X landlords, as the with about million with depends. current even We in that's the million. if landlords. that we no little Adam current is month, that, agreements than it's based we will helpful if based on we with thing, partial during be be just have We're that that $XX with it lease the ATM But selling just is additional etcetera, will discussions you the think maybe the you know, of have said in about the

case these the all you worst scenario. we’re offset So, actions I’ve worst that case that scenario, but given will really taking

Adam Aron

at that our – attendance. well. attendance our stay Christmas movies of increase If we revenue should level hold, then we assumes as That that of today’s should the and have increase level

release, the million So, and $XXX in cash at end of you, September. it was we press of had the

XXXX. more much have our we of goal that, want we XXXX, we runway than need extend, extending not early that, more than deep obviously, a into much we So, into financial

Sean Goodman

Adam. as And slate cash the currently basing we're because much than be it that would actually better thanks, we our And Yeah, forecast stands. internal hold. foam clarifies burn it we’ll upon believe that

Eric Handler

That's burn rate what of – average, of then your that on that expense XXX your, in is whatever excess is helpful. total? assume I And it's cash interest that, million, monthly

Adam Aron

the Sean included in That’s gave you. numbers just

Eric Handler

that? Right. And much how is

Sean Goodman

varies. it and look, Well,

around cash] numbers. $XX now – expense interest the month. Our a let million [monthly take is the me is, running included and right annual just that in But

Eric Handler

thank now secondly, million a with than little or you then million, in do have a with million, larger did you. shelf shelf along much XX over need shares and are equity today, for already you like Citi you not you right that, with the would just mean, why will The get place last do others? ATM $XX Goldman probably you sponsor filed you the deal And question. Great, that more a negotiating that? I And XX offering? Why

Adam Aron

gun concerns, SEC. the avert the to comment can’t all with jumping we on Eric morning this make filing made any at

Eric Handler

Thank Okay. you.

Operator

you. Thank

Adam Aron

of question. States Government duck your your question, to ordered duck by to United but being wanting Not the

Eric Handler

you. Thank Understand.

Adam Aron

Thanks, Eric.

Operator

question with comes Capital. proceed your question. Loop Alan next Our with Please from Gould

Alan Gould

my got taking Adam. Hello, I've Sean. for a few questions. questions. Thanks Hello,

but on chain there of remainder can about you on First, the your that? comments there European make some was Theaters not Baltics, the trade [indiscernible] speculation of the etcetera, of is your sale the any theatres, bulk European

Adam Aron

rumors Nope. We and do speculation. on comment not

Alan Gould

expires Okay. started My March? covenant next debt one March. for there, can you what Sean. Have the covenant the I know, already to us you your you bank remind with after returns believe in and waiver discussions

Sean Goodman

Absolutely. Sure.

will debt we That numbers taking quarter. is a June. to our that Actually, be QX of numbers debt by we'll second calculate covenant calculated multiplying So, say, the by debt first the second March. And time through end will rightly have it at covenant quarter, as be holiday you have often the four. covenant the after

of So, it's annualization QX.

where is the Xx So, in leverage on have we debt at of The that Xx EBITDA relative agreements different to we X.X that the we covenant of amount of tends debt I sit the in to be is point leverage, calculation will for The covenant ratio. billion. use moment depend disclosed will QX. point the fall that view, credit higher. debt in is secured it covenant the secured terms is reporting everything's secured to that financial for EBITDA the out EBITDA that's that

And the so, debt performance. QX our dependent be going you know, situation XXXX it's all going covenant, with to be on that's to

Alan Gould

XXXX when be guess date will we Okay. going Warner or exact our we to And when then the marketing know not it, to whether first sign of is they a on that it's, come know, Adam will it Woman would it's be release Wonder to have I When going better idea Christmas? that out? would start whether

Adam Aron

December XX, – They're on guess. XX. will going can opening that is I know or I we sometime or December December think this Woman XX, on will categorically on look, marketing start exactly XX? Wonder to you month, December would begin schedule. tell want I they When Their to release

Alan Gould

of is it the Sean. then pre-COVID? for they the And less, to much fixed your together. rent higher know trying having say the your interest to expense are are were much question the my deferred? come company? when I'm you start back more is more, put rent costs I How So than if higher is pay to for just the all how your this costs last Maybe out today fixed other end, we Okay.

Sean Goodman

One is be think our the cost had in lower start to – pretty I'll with fixed based firstly, But with right. I going going rent be that things negotiations of is on Look, a landlords, the we've to to probably similar. is, say. couple general

thing is benefits do cost are looking every in remarks mentioned the at we've is, what my the second there. taking significant have prepared we single organization. area that had, we that I we The And actions in that see

that We’re our million benefits includes cash targeting of there, that's and between CapEx. reducing million and $XXX benefits $XXX cash

we up, side. in XXXX. have the So because that XXXX, on benefits there's go Cash of does right, but rent interest that in pick only significant

Alan Gould

questions. Okay, thanks for taking the

Operator

Thank you.

with question. Meghan Our Suisse. your with next proceed comes from Please question Credit Durkin

Meghan Durkin

is And Hi, running on take us could cash I shares? level business? give is share And of U.S.? helped if that need overseas good there where afternoon, of minimum just burn a Has – where cash market guys. One for Sean, one open? going? areas? I that on breakdown the you the a Regal more you keep wanted the to know hand are to things then in you those are holding up How's you closing How versus

Sean Goodman

Hi Meghan, Sean.

structure normal I both relative of international. for the question the domestic second is we the There's on It's of about and think cash talking was, different low. of cash, a part European cash? business. a but There in is there is pretty cash the than at level sides your between of size low of clearly minimal of split more minimum nothing And see the what it's the Just run because we the level that minimum overall. of can the Atlantic. cash level just levels dramatically of And Organization, burn of of Europe pretty but

Meghan Durkin

Okay.

Adam Aron

them our increased prepared his closure only theaters. And given or lots this market of times the we're our not show the thing where only Most Meghan, United two extensively. theaters normal are in At But of doing four. remarks, half has weekends. we've and open, one of States a open modeled yes, day, share Sean in other the theaters, as obviously those of said

giving are also, open, from they a managing ton have for primarily them of end. hours which that be us comes theaters lot And not sense we're week, up much on to It's a operating can the dead for completely months see reopen But movies them currently. buttoned them, end, closed every are you they So, expense. single the financially our when building down, to have stressful the weekends a there's still different tightly closed. is try which expense than to it's When been consumers we're from to for to down that a benefits that extra of to on it's of couple much buildings months back after less a on see open starting stop. is are, way we pulling that then open, the saving really really want

it So, our share are way. And in rising. right the marketplace we is doing we the benefiting because think we're

Meghan Durkin

Thanks. it leave Okay, at that. I'll

Adam Aron

you. Thank

Operator

you. Thank

next with Our question. comes question proceed from Citi. with Please Bazinet Jason your

Jason Bazinet

Thanks this get difference crunch been to least assistance in until at of wildcard so had studios arrears you much. and that pay of give of is date? question ticket Then XXX% is, to you any I of [indiscernible] could through Have just the up at the studios any you two value, there sort second government been have that willing sort my there sort it of let's say later Thanks. questions. period maybe and this terms in some the crunch here help back period? through

Adam Aron

Thanks.

first very you you studios enabled, graciously but like yet XXX% know, I that us payment So I've give ticket we flexible to will of a have a your the been to on find would question, tell that studio have on schedules. sales,

and on liquidity. So, would money the a we've be lot some than incredibly, lot a the to longer which been In our able norm, hold longer. helps cases,

predict not it's company, fruit or any we of even think certain anybody that might now, in that can really they anything step-up don't activity certain I tomorrow, going election premature I leaders of they're tomorrow. happen know their election, to to parties what's tomorrow an may will to comes that there's a do nobody that until there has I but that given been industry, think but whether post our bear tomorrow, right sense wildcard, the for support amongst for knows political As our get discussion industry know if power, since

Jason Bazinet

Fair enough. Thank you.

Operator

you. Thank

question. comes proceed from Beynon with Please Our Macquarie. question next Chad your with

Unidentified Analyst

is afternoon. Chad. [indiscernible] Good for This

soon. get these we going kind theaters to pushed this to start CapEx over the have normal things somewhat last hopefully maintenance what's some load the you've to you that CapEx Are like? to So, going a do to quarters? back return environment of vaccine look of here front and normalize, into Once two

Adam Aron

Thanks.

with let it's the touch as contact directors through members head premise, on quite pharmaceutical a certain directly, working Health, vaccines. Harvard School both in as week sort the University hit had boards of are former experts we me of companies so since and have the of with this So, – past the I of medical of Public of your recently and FDA, separately are

in Whether are confidence or there tell, will to likely those be a the those November March but time a telling U.S. the population of could that a December, true? or vaccine be us will very people or as January. are think inoculations be of there the U.S. sizable is vaccinated who are by December as begin that I out but lot percentage will knowledgeable government approved all April. pan predictions And in early Only scenarios. in field

to CapEx a boy, projects of CapEx, committed terms when this the we prove back if you know, to needed And if million haven't years, spent even maintenance year, dime. on said ignore on turn ever did be could were CapEx we And that we case. in $XXX were $XX million do of we off, you we In that spending we year. a it prior

conceivable liquidity required to maintain the that's potentially assume to if we of what forward, think I down under go to button the should lowest as will continue that company. you the $XXX we is number, CapEx million

not we're CapEx just around. woods. about going the to Absolutely a we're there spend any of money nervous is not. the going suddenly that's So, maintenance deferred any that We're It's other unleash of until spending? way to flood out

Unidentified Analyst

for Thanks Adam. the perfect. Okay, color

Adam Aron

a AMC Remember, risk. $X dollar as said value equal extra cash before, conserved is to of an I of of

I So, that's Is question. that think the operator, correct? last

Operator

to back for question. you floor I'd Yes, sir. the closing may last turn like That is to any remarks you have. over the

Adam Aron

Very brief. you, everybody. Thank

Red us shall landing weekend. beaches. We shall today. the this, and grounds. you call, you We hills. the the We in fight in And this Connery fight for close the on with be we for fight fields Goldfinger October The joining streets. that Thank at the I on As and Sean will AMC remember we fight on remind shall Hunt shall all

Operator

Ladies conference. this web today's and gentlemen, concludes

may have day. You for your participation now and lines this a time. your Thank great disconnect at you

AMC Entertainment (AMC) 2 Nov 202020 Q3 Earnings call transcript