AMC - Earnings call transcript Q3 2024 | AMC Entertainment Holdings, Inc.

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Operator

Greetings, and welcome to the AMC Entertainment Holdings' Third Quarter 2024 Earnings Webcast. [Operator Instructions] Please note, this conference is being recorded. I'll now turn the call over to John Merriwether, Vice President, Capital Markets and Investor Relations. Thank you.

You may begin.

John Merriwether

Thank you, and good afternoon, everyone. you third welcome webcast. XXXX to like to quarter AMC's earnings I'd me Aron, our Sean Adam afternoon Chief Chairman Officer. With is and our this and CEO; Financial Goodman,

the to remind or webcast by uncertainties made during In may company and these control whether Numerous based expressed this risks forward-looking to no refer differ statements. undertakes we uncertainties Adam, statements, materially those on turn factors on the margin, as that today. forward-looking contain financial will management The factors over may other Many that I our some cause be of of the information result recently of to filed in let webcast, filings, determine Before actual light results of adjusted statements a discussed non-GAAP listeners relying the in as currency, risks, measures beyond revise me of or future of are this XX-Q to among statements ability everyone webcast management's may that public company's comments any contribution expectations. to and including constant are new and most such obligation that or predict. these uncertainties events. On EBITDA, company are from are future update inherent recent the others. against forward-looking cautioned XX-K. Several might most the any our the results current

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

Adam Aron

today. What Thank quarter a you you, us joining everyone to makes. difference thank John. and a for Good afternoon,

all this for too months box strikes office the scheduled looked better know that we of last for by you of year, was so, XXXX. of well, the we times Hollywood industry-wide when year, affected late most were titles As movie start several release, ahead, knowing and saw severely the ahead. Even the at prolonged

and came XXXX. The and box office the June of to the grossing highest far that post-pandemic this XX year, life the highest a movie of XXXX, finally grossing release now Out the the quarter, box year's last the evident with of all we of XX% all would Barbenheimer-dominated earlier And So half the of quarter exceeded industry started that surge pre-pandemic third saying is of QX Inside Disney/Pixar's happened. In to since what X, of high it box the time, of slightly up we moviegoing fourth enjoy of became a exactly movie domestic top get XXXX. second in record-breaking It on the of quarter third year $X.X thus grossing film return second office office's within animated from domestic billion, set third XXXX, XXXX. quarter this of XXXX. X% and in

XXXX. that to June the AMC distributors. To in domestic Out movie office and Twisters, many between year, box XX office per third industry-wide blockbusters Warner months of among X.X & industry-wide third prior quarter June Entertainment multitude by XX. since first of by and strengthened let's basis, XXXX strong Bros.' of On months. Me was in box Beetlejuice, end-September X's stronger The the improvement the followed XX% Inside next day mid-June X.X Wolverine, illustrate X from magnitude Universal's quarter this office Disney's lead-in other the Despicable and like studios of and a translated was compare Beetlejuice the Deadpool box the than to to fueled XXXX And a performance it titles of

XXXX quarter What's by Solidifying revenues more, fully stronger revenues third in quarter, XX% third in loss XXXX. this loss XX% of was XXXX. narrowed the compared second net AMC's metrics, our in our the total of financial than quarter were of with our the

about So quarter per EBITDA in AMC report happier an rise. in a adjusted for in successful secular stronger the blockbuster Lion beloved market The impressive and AMC's EBITDA are achieved on is QX third the XX-year-running last of Moana revenue food for XXXX Disney storylines, that be quarter third beverage There's operational new Universal's of of QX all-time worked in third our in just-completed of we that XXXX quarter was we second XXX-year stronger. to weeks, that ] forward, was Indeed, just-completed because that attendance ever pre-pandemic of X to and excitement lower Broadway the though EBITDA we second-best highly-anticipated of X. Adding AMC's hard record quarter by next years, the place looking any ever. than that was of QX any adjusted third in XXXX. It's 'XX our we're proud pre-pandemic. Of in we coming year's the so XXXX, quarter quarter performance quarter backwards, only with put enormous Xx recent the movie especially history, efficiencies, third in posted set look musical [ slate for in ahead to patron. AMC's X King AMC was this even our the patron, adjusted the admissions EBITDA line and realized office and in into the record of back, a quarter encouraging revenues Mufasa: X we XXXX, Xx quarter to was believe XXXX, its third the even third of that per will financial our importance than Wicked, released to looking it to as that highlighted years of not continue box that theaters XX% adaptation XXXX an QX full

Star masterpiece." Notwithstanding stellar. think know outshine the and Disney's already they is our be less Wicked Super Toy QX reviews Wicked industry surrounding the is X are silver up White, Out and next theatrically the that Moana Some AMC, industry's next Avatar in here domestic the likely beginning. believe box and as and X, that emphatically X. me X, currently critic belief X, Impossible at Paramount's moviegoing. led being for we XXXX benefit eclipse could box Story some early years Tour Eras surpass quarter, at just the the at of Middle theater office the big AMC the office will efficient the X blockbuster very America, should chapters of ticket our than which in success can player, years easily with released look are out. Batman, year, XXXX, Bros. is fourth poised just top from Movie bigger such Cinemas people well the build XXXX should still X are to theaters film, excitement year's is described results. And "a small. Taylor Avengers, highly largest movie which Swift's And XXXX, movies was an even as that the nothing movies as Thunderbolts, of year. And the of We both Inside record-breaking last success concert of We of and one increase as Beyonce's of of next that sales in the huge Captain next Snow telling palpable. as in in new own course by creations as movie, that franchises office AMC Odeon States, XXXX will last including domestic truly East. The Mission United that, as Jurassic over surpass continue AMC in World Wars, buzz the releases, QX domestic and believe the and It screens anticipate that our increasingly year's titles lighting coming well the Mario box Europe, hitting that bankable AMC's make that's some XXXX Universal's Renaissance to

in quarter of XXXX third the by strengthen sheet. other was balance of our vital The our to continuing accomplishment AMC successfully importance

extended to maturities long-term know, you big announced That is AMC. a up the $X.X we of As XXXX XXXX. for that debt we and our forward to in XXXX from step quarter, billion

is paid have king $XXX too many major we cash This survived some been years of proceeds ending mandatory a AMC at when gross translated million million that of reserves. times among these sheet time, balance AMC and These $XXX are million at cash AMC some in hand. I maintain the X.X attention is has $XXX down that reasons ample a XXXX must equity. with to year-to-date, cash Similarly, raised some of So failed. said many by contrast, our so why on quarter our to close competitors debt Entertainment. that priority all has and third past the paying of

As we lessen actions we and debt. reserves continue robust our our to take cash forward, move needed as to to will keep

retail Before by you I an home I've to Popcorn call our Perfectly turn over shareholders AMC Sean, of on the been many give to update asked our offering.

lines to goes. both ready-to-eat not microwave We it of more could popcorn. here and response by and retailers So our from consumers be with pleased

and we microwave XXXX this popcorn for As bringing online, Amazon.com Walmart X,XXX Kroger, now at than it our successfully and locations count and AMC stores ready-to-eat Publix, was XXX you'll X,XXX on recall, at for our Popcorn. selling Walmart more walmart.com in to Meijer our Perfectly launched more added than XXXX, exclusively Walmart at store year, stores well corn. In

up top Kroger was of For are advised microwave they in previously. stores or line where X,XXX XXXX, their Walmart and of adding more us it on that have carried our to

smaller Associated added dozen also several chains. and supplies which Grocers, and grocery We Wholesale Hy-Vee regional

as about on result, As locations XXXX. in or where by Perfectly AMC expect would XX,XXX mid-XXXX. Xx many to shelves earlier a as midyear That's the see of retail it more Popcorn was we

to growth. home AMC, for all only so growth detail. our rapidly VP Our packaged said, be more update important who call and Financial on of months it afterwards fail. sales we actually driving are because Executive popcorn Sean? Successfully Popcorn is is we after to at people plans at footprint where ahead. Perfectly that And third our expanding turn that, I through not our And more quarter is as product trajectory Officer, initial return I'll the XX not easy an in category could our Goodman, is new very you for a a Chief about distribution Sean pleased launch. With just And brisk. goods the take AMC the then task. for I'll over try are the now food launching product home Most

Sean Goodman

this to for and Thank afternoon. us you, Adam, thanks joining everyone

box of into the moved North we recovery Adam American half experienced As the office second as year. very strong noted, a this

was approximately period attendance America below factors box office North this were X driving exceeded third the year. There year's the same quarter, XX% result. consolidated in prior While the AMC's last

resonate Deadpool slate titles the First, of Beetlejuice. The particularly as film did in result This Twisters and such industry in not & that Wolverine, in overall Europe as the is Beetlejuice for North theater as is America. well when compared European 'XX such an and the which XX% to operate when Oppenheimer markets. last the markets experienced QX in year as European attendance approximately titles in the Barbie we quarter in outperformed decline same

of the slate domestic from Despicable skewed compared presence. Second, favor major and attendance largest Los AMC in AMC's prior New again QX as our business, Oppenheimer was film such geographic the in the as attendance Barbie year such Me footprint. with away Angeles This skewed urban titles XXXX and Twisters, to where York evident urban and much in very has Beetlejuice, centers when in particularly our

mix. our the As between interplay approximately by declined North film is slate points. XX a share to related overall and market This geographic American our the result, basis

film and XX% allowed that adjusted margin define record XXXX, in was per that patron few notable domestic $XX.XX, food additional per of is theater this XX.X% revenue costs hit $X.XX, XX.X% million the food of in line of guest contribution all-time an of compared business our EBITDA patron costs, quarter quarter, our records QX This indicative compared to tightly revenue selling achieve was the generated fewer to of up worldwide. XX per food per food of and of XXXX. exhibition ahead improving In the revenue pre-pandemic market, was initiatives to XXXX. A XX pre-pandemic number These more per Xx initiatives quarter. key record fleet, noting the beverage less we of despite resulted $X.XX, operating our of of QX result compared QX beverage trajectory as of of achieved and achievements approximately and XXXX, of patron the the for approximately per and success of patron incremental us And been beverage beverage our of $XX.XX, EBITDA in moviegoers up per elevating patron the optimizing patron per a to million ahead beverage patron business, way, our and with margin revenue, of high XXXX, XXXX. to XX.X% the less This the and and by of increased strike a X%. Recall of QX quarter of in and per QX the revenue guest of recovery and the food XX.X% tickets. We XXXX measure from to QX led pre-pandemic at per worth impacted achieved years of XX% from international QX XXXX total to than beverage due optimization of by an QX increase of third revenue that During expenses, food And XX% and contribution margin XXXX by ahead increase XXXX food contribution efficiency. profit XX% represents Hollywood welcomed theaters. It Consolidated ahead XXXX, our XXXX. Both or of guests. is divided XX.X% sequential we in that compared revenue theaters increase and and second beverage patron patron an during $X.XX, managing QX XXXX. international per XX.X% to initiatives, of experience, both of including and all-time and this and last has post-pandemic domestic to over our QX profit patron.

large-format world-class reflect Our items, results in continued movie-themed for our upgrades, and movie-themed success position leading immersive of marketing, popcorn. and food menu revenue cocktails the a including such quarter diversification auditoriums, premium market-leading offerings, as collectible and the initiatives beverage retail

belief levels even not our is underscores levels. this we box that while pre-pandemic can achieve XXXX of to office back All the of EBITDA quite

Now let's move on to sheet. the balance

with began substantive our quarter a of third The strengthening balance sheet.

previously and with extend webcast, further $X.X our As the collaborative loan agreement from extended lenders, at of we've to to taken date second lien XXXX and quarter, addition, debt lien reduce and our third of term XXXX. And approximately beginning the XXXX both a first maturities. actions the we billion announced in significant last in maturity since of debt the

that our debt notes equity. of and $XX approximately reduced equity. or subordinated exchanges by approximately debt XXXX by $XX debt from we billion notes for we one, through $XX in four, approximately senior XXXX of And XXXX. in Three, buybacks due lien equity. maturity we now of September million of Specifically, in due of through exchanges in million as XXXX second are the to reduced exchanges for for buybacks subordinated senior reduced through due $XXX of million term all by And loans extended XX, were XXXX due $X.X XXXX our our XXXX. Two, of term million loans debt we in due

sorry, billion. repaid and beginning the $X.XX total our we of approximately $X far able QX lowered deferred transactions a million webcast, since and were bringing total leases. since in All common shares finance of million approximately rent finance $XXX.X in combination And by for to principal value our total, these reduce debt and leases million of the of billion. debt to debt deferred addition debt XX.X XXXX -- in cash through stock, million thus $XXX earnings $XXX of approximately the by In our this and reduction principal using XXXX, reduction we've alone. And of leases a we've

strengthening investing financial existing and leverage investing and our remain: For priorities now business; high-return three, growth one, capital balance attractive, sheet; in four, liquidity; in two, our the reducing allocation initiatives.

to cash QX Before we to box $XX.X rent million. range by excluding to And expect the quarter contributions CapEx a XX to portfolio bring of in million. end this $XX was closed operating $XX.X the perspective, quarter total be $X we reduce which the The net the XX, to balance office XX, quick XX% our restricted and and the underperforming our that of quarter. And million. million, million noting. deferred new be provided approximately operating outperform ended or see total handing QX number net in reduction landlord Adam, locations activities and locations a webcast locations location. additional locations XXX new million. This of in expect a would to activities at $XX.X plan the will forecast, the of We XXX of theater $XXX.X balance by was of locations. net continue to cash for quarter. CapEx XXXX. we positive was back cash locations of December locations continue $XXX very we to was with million from cash closed opened couple opened we over closed million, of points approximately Based XXXX in used XXX at worth significantly on we the X another fourth the to during new XXXX fourth since the net XX net $XXX during And the

plus increasingly capitalize are to the enhancement in we hand resumed XXXX now has So Adam. that, in on to what position the balance and well over continue remainder and us box office XXXX sheet, profit an office will webcast I'll summary, with take recovery the to record to initiatives strong actions beyond. And box we expect the be strengthen that the of and back through yielding that results, very our

Adam Aron

when on and we've multiyear playing smart an to theatrical times protect we then finally see company G.O. action we in defensive. Yes, to been maturities are and others Offense. AMC's tomorrow, with as thinking, we and the folded. At bold on been strategically definition, our on multiyear on can survive by work, over business Plan initiative the rise years that in industry business through Hollywood XXXX play experience successfully But our COVID and strikes, necessarily release But striving for far to heels Plan. calling, near-term in finally, we'll much a past significant what recovers. result. now, and us and have returns a EBITDA the Go having differentiate repeatedly we've elevate allowed future our the us. of debt core few shareholders our our hard at is box extended the imaginative by the With industry offense hand in to our announce moviegoing ahead focused adjusted time AMC's we out, the offer our attractive Thank reinvesting have G.O., AMC, to that not actions far to process, and be we further that challenging and now, G.O. taken guests. all and you, the success position Sean. expected and success manage of press and decisive to the to our generate the are Odeon add mightily ready again as is on office AMC will for levels current real In

our AMC's business, X results at a back theatrical moviegoing the Plan are doing, likely quarters the we time in and and in a resurgence, and Coming in investing years our hopeful $X.X core office financial AMC/Odeon turbocharge billion back $X.X calls that box X of AMC can years we to for so into our ahead. Specifically, coming the experience. to theaters billion invest between G.O. over into

as With immersive Plan Of our seating and considering well and our reserves, improve and greater be levels, Plan, our that guests including experiences, line. as bottom will the only premium use can G.O. of leverage. comfortable sorry, as liquidity, implement IT more theaters, an sight AMC's ever successfully and our G.O. sound upgraded other we initiatives, upgrading with debt cash course, smart our Plan, manage AMC's enhancements, debt providing selection AMC's how -- we saying it of AI AMC's goes systems will our our without reserves, we G.O.

only allow. AMC's components the over implemented implemented G.O. are when of others be Plan Some time, and our being but financial as prudently will and resources now already of

talk let's components key some the some of just of more So G.O. Plan. about AMC's

in Here ascending importance. X of are order

First, laser projection.

environmentally image past laser friendly extremely underway. X,XXX projector you we some plays today, sharp to an hope here a predecessor auditoriums. This announced as As since marketed In our our right we the as of consistently and brighter have with number at launch installing the well in digital thing at projection. maybe now by previously this colors even No is project Laser United to in is with first quality be our the are well, with of would sit because a equipped its major know, agreement more triple currently images, at greening now AMC's laser as and considerably more time to technologies. Barco AMC. reacting and which associated to the guests of now projection positively auditoriums. And projection surprise, of Plan, consumers, film Dimming currently the laser AMC degradation we projectors vivid G.O. than is broadly current ago these transition States also with decades and upgrade throughout AMC frame broad-scale equipped And lamp it major Laser screens double well are Cinionic AMC auditoriums. least

efforts. the upgrading seating in and theater plan Second renovation is

For in masses for over the through of theaters. a industry upgrades renovations this decade, introducing in a the at AMC bit luxury has and led our the way

eliminating to to Our theaters invest the to our view, as currently older adding often most pruning profitable best for claim some Plan and the to be shiny That in just Signature EBITDA aggressive, driven renovation in who weak us seats unwise our productive allow by in where, not new tired and/or cash their recliner ones us G.O. of would superb theaters would returns. AMC's are flows will been quite we significant geographically new continue. in years, opening continue theaters strategy theater-level and recent locations when competitors in mentioned, our have have of dramatic will and moviegoers to our financial fleet shy, prevent been cause erosion closing operating Sean try in reinvest. where ours. In increases theaters instant contrary, and and in it

among but there in is feel opportunity in worth theaters much will for that example, G.O. putting think sure-bet life started seating make renovation some And this the We of improvements where, already will us our cause allow major the States that what last our seats wider theaters X Burbank Plan. But of theater, with our quite and almost-sure Los grabbing. Right XX, to of G.O. saying in rank funded significant Plan which new important comfortable view, and some upgrade by entire certain, United is caveat, an AMC's be nothing in absolute our highest as of at also almost AMC's received to best grossing we now, rocker investments solid life theaters in results. of productive often in more plush would financial AMC it's in which flagship is The currently. most we've a bet is year. routinely Angeles, in at been that leather X course,

Our comfortable. between XX% guest rockers, of seats. scores chairs being These so at much are Labor and stunning our at AMC seats and upgraded successful went we guests XX X,XXX XX. theaters fabric New in Lincoln XX% more replaced offering Manhattan this up plush aged York in physically with tired year, now wider deluxe Over process and Empire markedly. Based significantly City and are visually AMC doing at in on Manhattan, the Square success, are of X since most Day that

X inches also of at legroom, that for Square, feet door higher be for will renovation most rows auditoriums. believe that in to even at of our a the we completed for your X that Square seat X inches That more Lincoln How's already XX part will upgrade And to inches before seats of Thanksgiving. Lincoln month XX successful slogan? very Making experience. legroom additional Lincoln the theater feature will profitability As AMC. The this that mean XX enjoyable open between will instead legroom Square for offer of current will of our AMC from at legs. the much a viewing auditoriums new in XX

of the much of XX XX complete around XXXX. renovation movies to seating with Christmas, finished of expect holiday before of being Empire rush the entire upgrades QX the during We the Empire

these that theaters receive profitable. have will which, even in more long just G.O. Beyond seating more AMC successful, of those list other significant AMC's prioritized high-performing a as could even our part view, of theaters, upgrades X we make theaters and Plan

to premium As and large from having extremely formats, movie Plan, under third screens. of already most extra world. important benefits single-handedly screens, large AMC G.O. for example, theater Dolby's the Dolby or or screens. IMAX's all any PLFs, AMC States, a In screens element and AMC's formats, the Cinema United premium XLF, of format large of chain in of just half of XXX% represents U.S. all U.S. and branded the

brand We AMC also have here house XX our PRIME at screens That's in U.S. domestically. the

quadruple, our those On our now have and screens the brand in non-PLF seek patronage moviegoers that close. From are revenues in Europe, house average, quadruple, out screens else PLF one total. iSense, screens. Including data, certainty PLF screens for do XXX globally. Dolby we U.S., the premium our our increasingly with know some houses. large comes IMAX, of XX PLFs XXX about Cinema our in we our Some format example, PLF No

system, fish the auspices IMAX the AMC's seating recliner to we XX-channel of enhanced number expect increase have XX importantly, the all we through You product, of are. know Under the AMC's the along want But auditoriums. improving saying: upgrades. so our sound the only clearly Plan, increasing long upgrade offered rocker number of to ago, Plan, would theaters PLFs, every plush its laser and we technology. Not including G.O. continue PLF our with latest or the IMAX's quality IMAX to laser of expectation more G.O. to where auditoriums. fish many projection of IMAX Moviegoers intend and superb our with and significant XXX

Plan AMC's with us will We in our deployments. have of IMAX enable G.O. optimistic going to that forward are installed laser IMAX than X/X more

of Cinema United the establishing in are brand also the success, PLF in our success, States. our We Dolby clear proud

expect globally to would bringing increase our XXX. we Dolby As a U.S. the our XX%, by G.O. the Plan, total result to locations about Cinema in up of number of AMC's

hope AMC's at G.O. to years. auditoriums, paid in we no more a than our envisioned current theaters up in to hope PLFs, the the to PRIME in installed of to AMC triple, As the triple, We XX has of number PRIME Plan, party, which indeed further have these several our add, offerings XXX. from royalty about over third be than I expect our we what will U.S. more next house XXX might brand wonderful day, to get to

press the Beyond also XL offerings I us Odeon guests. It XL after currently XL don't tomorrow, premium successfully have called innovation new across that is product, and at in heard past some our screens and that place in yet, in brand another and where, XL, extra year a modeled will yet one or introduced stands for experiences AMC. that you we've testing that many but of unveil been another something our or quietly offer envisioned XX months, over have AMC, leverage screens, will XL the auditorium and and Europe. of last think to any the AMC be for at release for be lets about Europe we issued piloting over XX other AMC AMC. large so-called PLFs, will we will

as never such. almost For example, large our here but of already all theaters in place we have presently, in extra screens marketed been the United States, at they've

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First, it does to our exclusively theaters. domestic pertain not

roll PLF Our consumers that differentiated our density out States already renovation and cinemas, in experience additional theaters we've meaningful resonates about is well, evidenced PLF and opportunity Odeon add terms in Europe industry luxe theaters into identified the is opportunities as of well. Similarly, fleet, team extremely Europe United internationally our in number develop in with a the where as lower to of excited screen United especially of the of in a Kingdom. introduction to to theater the new than or

portion Our enhanced premium These theaters, financial for in often theater our on seats, developments, and to luxe handsome capital keen healthy substantial auditoriums, Europe their willing Europe lobbies, footfall provide in those landlords, in areas. Audiences experience reclining introduced to eager have to AMC. successful the AMC. for have luxe theaters including returns quite been happily know, have upgraded you bars cinema heretofore and investment, a concession us, been by been quite a drive as have amenities, and, theater required resulting innovation of

I slow. our second that Offense added our want ahead but thing is to years, fast will to skis. our will X get Going respect financial carefully do investments ability of on with Plan said The that either can to go or we to our We G.O. stress We about with marry Plan not we X years so. go capital

As Life's do just not EBITDA wise all specifically we base load, sense you where good we are it calendar be pre-pandemic. expected be. But so, of year Two, the rising been where amount get committed yet synopsis We And One, call to optimism quarter but not we XXXX, Three, we leverage EBITDA this quick obviously, fourfold. debt it offense our with the quarter, determined debt shareholder timing continue accelerating adjusted will CapEx that still equity time listening not have our within XXXX business it well the right and managed, this growth. Thank for reserves for sure at is and our and aware our have cash the managing pace we a again. Looked of at a in only our increase company, office at we aimed the substantially had today. to that a keep we're that is but reserves going expenditures rising need is is whole, the success cash our plan the will remainder that not it are occur and a then my see to we concludes ahead, purpose of to as manage of to our confident cash also four, same of was more box of maintain efficiently, but XXXX smartly to rising produce just for for and about have well EBITDA actively liquidity fraction could all addressing that increased in was capital managing we as rosy. our years or are in future robust, be navigate. at operating is a things AMC. Sean, levels our even it's that the levels AMC. we raising, to today, XXXX. with to or obligations. in heightened us in third to XXXX the the fills making and assuming challenges remarks. on And a a Most

our both Let's the and analysts. equity from webcast shareholders open our questions from research up for retail

Sean Goodman

Thanks, Adam.

equity just I'll have we we'll few from shareholders. from questions pause shareholders. those any our then questions research if with retail ask the of So analysts. Starting the there's see and And and a from retail questions

there place programs to one change the AMC enhance loyalty or programs, The to programs. first loyalty question future? is at loyalty in relates The our in the plans AMC really, are these

Adam Aron

I'm glad what by guy loyalty. question I'm actually as proud in marketing that asked know, of training, AMC the done so has area and because, of a you you I'm very

and right? We theater their has strong, a free-that. with a is a each in ticket that movie too, that more out to on our enrolled to our monthly programs our join them that is thing our patronage of our in Stubs, two program. a get have free movie about great AMC, to members infinitely times communicating are them to buying Insider because AMC frequent to to at to been movie not AMC Investor also X a that free-this for significant Connect. including they success. A twice of as they're is loyal as major who vital we We're We AMC our Investor program there, is occasional moviegoer retail were when of loyal a to X one. Program loyal population, Connect AMC. shareholders million than which Stubs equivalent And as program. would whole is Normally, basis. This group AMC regular they were X.X AMC something frequent we them program, and so frequent almost members a coming the population good which program is fact, of they're have year. very called tickets Stubs, AMC benefits see program. offers the million could couple We're massive years That's our X buying. And X enrollments. the a have play-for-points, And like we ago, launched what in It loyalty AMC track X.X flyer was

XX points I are through area lot AMC our it's third the we've we've XX% consumers we movie habits the the in I company members joined tickets playing fact, that has ending AMC, Over not for of game, by months of with guest for I joined increase got important U.S. massive quarter, members was years latest the our program. program. And the enrolled, when it's This September It million know guests ago. for AMC a X X.X a so purchased and us. it's when of Stubs million only XX think of buying of playing for In years, XX, of intrigued XX% remember, were Because, Stubs our ticket Stubs. the households households, the AMC households, in been AMC Stubs. about AMC. Back of our just

e-mail, in get program, is show of marketing subset month, to as So if of see movies X you lot AMC the If up went X Mission going XXXX? Stubs and to a Stubs to the for a who's which when to important billions you our our under Stubs $XX rules, Thanksgiving X then of members current to get now, Mission subscription a you to program, actively who's program. notification year, somewhere comes guess guess member see X Impossible week. AMC reminder and Impossible A-List, last to for up see literally get It's Stubs, from see between going a Wicked $XX market a where third successful next is and push weeks Wicked out? We part through a year us. And actually program text times an a to X immensely of

theaters may closed because gutted years You a few are subscription titles in there there's pandemic pause had just program movie a that or to when for of out. are end very no coming recall A-List. when movie for the We point couple the program on having months

to last believe a theaters increase our to we've with X/X Stubs, of of seen confident announce some some members. today test-marketed the the audience the that pause. The line it tell appealing lot year. to other going we dramatic program have enhancements coming reopened contrasted We're in they're is this bottom going AMC program market members We the number Stubs don't the And more been in to because I to of a the A-List significant they're working to coming saw both to I'm A-List you count with paying we tease excited going in only a I the don't almost on and these and since to significant for We members. can number want We're tomorrow, the improvements pandemic restarted their active I just it started but today, as both this drive research endlessly all XXXX. We've few so Stubs out things, confident Stubs and of was current A-List talk work. in reason about other our we cities. want of and and programs things in that Fortunately, terms AMC list to XXXX. to we're I make about did announce I announce up a

for important Stubs space announcements for XXXX. and this A-List So watch

Sean Goodman

investment the next stuff. in talk the to future? we're and make It's And investments here is more about exciting Can the question of about that trying financing you spend. timing

Adam Aron

Sure.

we're investing past going CapEx. billion over million we've to somewhere X to announced our $XXX next is X year that in invest several AMC the we've the $X.X fleet the What theaters Plan billion about been in and years. $X For with of years, a G.O. between in CapEx

much Now than that how fiscal a million talked at Only slowest, tell call with expenditure the spending EBITDA growth. got alternatively, marry this the it's if with fastest, and as We've on the future discipline spending I've our to to increase you of increased purpose in $XXX mind about years. our year. it's little We'll already. us spending, more accelerating in either or fund spending, to a specifically rising the shareholders were smart the a capital we're our decide $XXX At they could by year. million applying which practice that bit think that's us CFO, of

But So several the specific lot course today, a exact the that timing EBITDA we have turbocharge of and the of very the on ideas of that we call over returns. something outlined our is as could decide next the company opportunity years. we'll in speed

Sean Goodman

pause are And Adam. any the and there questions investor let's from Diego, equity questions retail see with research Thanks, if analysts.

Operator

with Jim first Instructions] from Barrington Research. Goss question [Operator Our comes

James Goss

live might IMAX, a about IMAX bit I are effort and the participation State-Washington by partner, I sure creative talk of you Penn if little Adam, game the AMC's wondering about know football on biggest selected exhibit your the platform. you use to all I'm was its screens.

a emphasis try are issues might since similar screen I you is primary a greater you of approach rights How And sort interest this likelihood into opportunity? you it? there available the screens the maybe obstacle basis, related this be of And do assume this. on and to any how have to very program capacity? might arguably would tie localized. you initiate specific size do level the But XL new in on tend games

Adam Aron

the window, they exclusive the And interesting opportunity that And not could screens us some Rich IMAX. it, been good Penn about IMAX, half as Jim, Penn sports make do an for game, sports window, do long for to in things things got is represent, will of programming their IMAX's IMAX lot with I other State-Washington an to of as Thanks and just State-Washington, States. Provided which alternate play yesterday the in I in he initiative. believed Penn that brings about I've -- of suitable recently extremely as AMC. a about question turn said, anything course. That can If well. theatrical we'll U.S. CEO happen whole I've AMC. Gelfond, State-Washington in the the happen makes We attractive rights. long hope things, well. almost spoke corner. Rich with triggers confidence United we sports a you're related IMAX, question, things for we're get for and of just the as but total IMAX programming good optimistic We've I'm

rights are X DIRECTV. We football, carry those mention You'll some we'll the ever that those been were that's carried great recall We Bears. proprietary us the or in what those night see night or quite games. the did we or the of and Sunday NFL we'll the cooperation the sure we've about couldn't NFL, the to are ever Like we'll succeed, by work Monday Like test going it Thursday broadcast continue but And will given be it night are word have to games. home games we games, from out the carrying those intrigued when with. trademarks Even the them. There And When -- full we but we under with with don't games rights. are the Kansas Jacksonville-Seattle for quirky and not we playing the are you games the it we ought and a happens. we can night only to mention do can some Saturday games, us in happy the that be whether Chiefs. nationally things playoff yet, around get seasons here I'm willing that clubs. to is NFL. games team expand very name City, or watch want entities that bring but to games. rights games, and game, a in that We out-of-market game so games, wrong which watch couldn't because Chicago, ought in league to And want to we only they they

think of a regions. have appeal, regional appeal I you in What teams there teams a of that, lot thought college of the while are mentioned lot football. may regional long a lot we've with

back So to Obviously, carry. see collegiate with that country. We introduce the success be and good had be to UFC sports I in collegiate around those will continue of in we what collegiate hope things that can to summers sports bring teams like tried conversation we'll other we different cities Certainly the of couple we'll things with kind some that would different of also ago. following we'll opportunities system. try a

at the AMC. So leagues question. is, active what on to promise see dialogue I with that's answer The in The events, getting to yes, key lot in of content. there's we question to alternate is the answer get think rights your the hands your short we're long correct a and to our sports can real

James Goss

I can if wondering these splits to you release should role franchise-heavy relative the other the and films film one The though And with some smaller and one, rent Okay. assurances those of streaming films I smaller if films was for impact may. releases? slate norms, discuss gaining of continued support options versus on also the concentration interplay the film of and theatrical recovery.

Adam Aron

questions it you limited questions in your really X but to follow-up I'm X there. because X was glad question,

James Goss

tried. I Okay.

Adam Aron

No, the on basis. title-by-title staff you basis. literally do we a it's I'll of do daily around it I general just the answer our on a is weekly forecast updated a the box circulated mean to programming for a you're we our well. doing whole by give forecast on try size basis, And thing. When here to basis. office, on film weekly in upgraded year, that it's a

we so the And thrilled, so studios need you smaller-sized a and only studios, ago their coming blockbuster or I were that there encouraged year or midsize XX. And all. smaller-sized also trying titles, movies just on survive in that blockbusters. X like We talked as with is blockbuster the there Hollywood movies. And that the to number franchises X also Like films movies. we're them just we studios our many year to name in lot major the but studio now thing but or increase 'XX medium yes, conversations a release we're of are most and medium blockbusters, was and we studios, many that And are also But beyond to titles. And can't not compared like major 'XX we're the XXXX. tracking the movies the one they of coming. And don't thrilled, for to are years aspiration need or need we smaller releasing but weeks X ago. with they about have so release want down were to like some were calendar XX X who XX producing like and XX said what

by can more to to release that by Whether studio issue they wants every we that's products. whether comforted Now release there's a commitment. But can each is what I'm -- they way. the and actually actually movies, of XX, fact talk no lot that the

to with don't terms X happy Avengers you we're helpful major studio, which happy deals means big smaller medium disclose film office the us the these our often the and movie, And and with it's but of bigger that out, well. get like keep latest as to higher we well-known smaller-sized of that's grosses. we box a really and as also latest gross Wars some and of like that pointed movie, movies. And the that. movie the the we're a we about And But split more pay film to medium studios, our that's the rents, products Avatar massive the Star rightly

release 'XX at 'XX, want all and industry And smaller-sized of we all and AMC but blockbusters as the We well the including for balance, look more ones. remainder coming. of and on more the that of broadly, XXXX, titles, to of specifically. a all are our very there bodes of recovery big So studios lot medium know of

Operator

time that Reese have Securities. question question. Alicia comes with for And Wedbush one we And more from

Alicia Reese

the on do have just couple some but thankfully, was a Jim bit looks of questions, of quite maybe that takes one asked my It puts some you -- a domestically the concession if I Wondering lower like costs. give could trending forward on others. domestic give and easing than region. of recently. items, it quarter there expect in line your some take has and that if what you could Perhaps some were been to costs perhaps on Wondering item. the going commodity onetime

Adam Aron

that Let me Sean. pass one to

Sean Goodman

you well. right, when costs, is higher. to attendance it as on a and of lower, total get and is is food Thanks, With respect Hope the food compare we and quarters our do Because the shrinkage percentage you and food you're beverage and costs when volume revenue to a sold. when Sure. average attendance less benefit, beverage spoilage that? Alicia. have Why less of doing

So that's take one factor account. into to

costs. same account time, of The there terms mix increases, in been has at we have in have and procurement the team you the impact get in cetera. of coming particularly up That has beverage in a helped very that well. et of beverage supplies price of is, certainly of done costs yes, different do And commodities focused as like into factor QX. And and at other rebate, cocoa. take to helps work successful that rebates in numbers through some But we the a a up products, the looking products, lot see of

with forward, much going able in the achieve be to were out line So what I is look quarter. costs which and food I QX, the year, that basically third if the for beverage right, should pretty of in remainder think we

Adam Aron

me just chime in. let And

somewhere calendar 'XX, about in we even our million. in precisely low merchandise merchandise on and going do we the small think go percentages. to been $XX the our success be stands, million XXXX, So concession between you our when $XX and year like are for million. our merchandise has a margins it's XXs. beverage $XX I food Maybe more AMC. Three other years numbers, whereas our this that sales were profit are year. But Including beverages ago, and to on And And profit -- massive but in sell margins million margins calendar year XX%, can numbers, next in and $XX $X. food

We'll profit can more your is at. that's sneer of nothing one we So of XX% mind modeling. get. take you, to a as as margin in just list much that But thing

Sean Goodman

cost, the in an on Adam, that, 'XX I your success food exactly and 'XX, and like despite merchandise costs. because having indication that, our pressure point, I those up important put managing does beverage said, think as said. we're that's Despite that significantly still an were QX lower, have because are collectible you concession QX gives of costs vehicles food in which the and beverage you versus

Alicia Reese

And explaining with lot the then popcorn that. had when alongside think, midyear there, into things revenue, other consideration, that there's distributing in That I for Taylor that. there. makes quite bit expanding a that early thanks you a so many taking 'XX of next just added for sense, lastly, to And QX in the Swift, year, obviously,

Just wondering if of basis distribution stores? the expect once sense a popcorn you give maybe some full you you track around into normalized of could cap on get perhaps that where $X.XX basis, us to per on a

Adam Aron

I say Sean. Good Go that good ahead. luck, on to want luck. Yes, do --

Sean Goodman

other absolutely popcorn revenue Look, right, sales. that's in retail included the is No.

comparison, the quarter-over-quarter versus retail sales you you So XXXX. have -- grown QX and -- would 'XX expect year-over-year, the look significantly when QX at right, popcorn

attendance, probably the going your at that look at you year, revenue in to likely I per is relatively higher retail and is office, QX happen But what's the So when QX be is you well, QX box less. look higher to be going similar. the are because revenue likely and think to impacts patron. And following sales to impact QX be be going to

increase half XXXX, continue that probably popcorn to bit. second other see to revenue but a that you XXXX increase, as towards more patron little out should patron per Looking of the per does retail -- revenue

Alicia Reese

could you appreciate answer. Thank Really you. that

Adam Aron

we welcome, end with of -- you're Before course.

shareholders back last it's take end people attention retail election we X Before there's pay our of late from like go and we and to lot the end call. the call, know let's before I want a news question continue to that to,

Sean Goodman

Adam. Thanks,

question question traditional is relates expect box last return the to the state rates? office retail out industry industry box a so And pre-pandemic office. will growth do to steady that the and the when reach And our really, the to shareholders I read we from

Adam Aron

I the to long the billion. pandemic be build year of as I We've coming. pace Goss' think slow is billion. Jim than time almost where since this box that to in around The It's down So that answer $X $X on of earnings growth office it combined $X and XX%. may question to mean, build, sort the call we It been off all up, straight a may by billion but be close whole ahead, on XXXX, knocked the a question. the of with industry been been was it's should up a the December in know Hollywood ends be knocked we'll but but XXXX. But side less, this more, to strikes XX closer to look saga

we be a should ahead it than XXXX, lot look to As bigger that.

to don't get that all As it's industry to way XXXX, levels. thought in in lot that pre-pandemic we box need for operational financial levels look achieved go to near several box the nice a that to to EBITDA that. It not to the of be to because than office is pre-pandemic that XXXX. think it'd know efficiencies in an up past the would I bigger important we point this could the outproduce and billion office to levels return of company a over XXXX going years. the to be everyone think we've pre-pandemic $XX.X AMC does But remember

and look was was quarter Just EBITDA QX the our of of third line third with from at in the year, the this yet EBITDA in level down quarter. attendance in XX% XXXX the pre-pandemic pre-pandemic,

of profit our So from years amount we ago. it is today are few a coming more can was want money per our lot you than it, contribution phrases our into body but a call make a the theaters you to of patron, lot our patron, it, there describe per -- whatever each

ticket written. line to top is, of we line, of at our office box historic bottom levels at or revenue where which return whole revenue, outshine to former say, is to performance And so the let's the story course, the to don't the need --

So box good end a so 'XX. With be us we're excited to going company to us 'XX, And good in for 'XX everybody looks to enough more We and be 'XX say that, about should the 'XX. in very I and call. quite think again successful even I'd quarter. office the had a

plan tomorrow tomorrow more to you We AMC, will release have little a at give a out a G.O. will XL a put going you information similarly AMC's description an that out put about are quite little press that more is give about to bit release forward. going going about. exciting which press Plan. We We're excited we

have screens the I United XX XXX in Europe. Thank in already As to to can current joining we you to everybody. XXX that the States us, addition said, we in up we it get think for

talk will again XX now. days you to from We

Operator

All And you. Have parties today's Thank day. this may concludes call. good disconnect. a

AMC Entertainment (AMC) 6 Nov 242024 Q3 Earnings call transcript