The largest theater chain in the U.S. and the world, AMC Entertainment, saw revenue for the last three months of 2024 blow past estimates with revenue up 18+% to $1.3 billion. Highlights included Gladiator II, Wicked, Moana 2, Mufasa: The Lion King and more.
Adjusted earnings before interest, taxes, depreciation and amortization (ebitda), a key metric for Wall Street, more than tripled to $164.8 million from $49.9 million the year before, outpacing forecasts. The stock has been a laggard and closed down about 3% before popping nearly 7% at its high on the numbers after market close to a still modest $3.50.
Net losses narrowed to $136 million from $182 million the year before.
Importantly for the exhibitor that has been fighting through high debt since Covid flattened the sector, generated more than $200 million of cash from operating activities and approximately $114 million in free cash flow — its highest quarterly cash flow post pandemic.
“These results underscore our continued progress on a road to recovery as a growing lineup of movies open exclusively in movie theatres,” said CEO Adam Aron.
“More than 62 million guests visited an AMC theatre worldwide in the fourth quarter, marking a post pandemic fourth quarter record and a healthy 20% increase compared to 2023. Complementing this fourth quarter attendance milestone, moviegoers enthusiastically embraced the variety and quality of our food and beverage offerings, driving food and beverage revenue per patron to $7.15 — an all-time fourth quarter record for AMC.
He noted actions during 2024 to strengthen the balance sheet, lower our debt levels, bolster our cash reserves “and continue to position AMC to thrive as the box office grows.” Over the course of the year, AMC reduced its debt obligations by more than $375 million and ended the year with more than $630 million of available cash. It will need cash to pay interest and fund operations until the box office picks up.
“As we look ahead to 2025 and beyond, we look forward to what we believe will be material growth in the industry-wide box office. To best benefit from such growth, we remain committed to continually improving the experience in our theatres for our guests. This especially includes a robust expansion of our premium large format, extra-large format and special purpose screens, as part of our Go Plan which was announced simultaneously with our last quarterly earnings results.”
Aron will host a call at 5 pm ET.