AMC CEO Adam Aron says he remains ‘euphoric’ following the company’s second-best Q3 in its 104-year history.
On November 6, 2024, AMC Entertainment Holdings, Inc. (NYSE: AMC) announced its financial results for the third quarter ending September 30, 2024.
Here are the key highlights:
- Total Revenues: $1.35 billion
- Net Loss: $(20.7 million), compared to a net profit of $12.3 million in Q3 2023
- Adjusted EBITDA: $161.8 million, down from $199.9 million in Q3 2023
- Net Cash from Operating Activities: $(31.5 million), compared to $65.9 million a year prior
- Cash and Cash Equivalents: $527.4 million as of September 30, 2024
CEO Adam Aron expressed optimism about the company’s progress, highlighting significant improvements despite the net loss.
He noted that the Adjusted EBITDA for Q3 2024 was the second-highest for any third quarter in AMC’s 104-year history.
Revenues for Q3 were 31% higher than in Q2 2024, and the net loss was reduced by 37% compared to the previous quarter.
This improvement is attributed to a recovering box office industry.
Aron also discussed the strengthening of AMC’s balance sheet, mentioning that debt transactions in July extended the maturity of $2.4 billion in long-term debt to 2029 and 2030.
“I am almost euphoric about the vital improvements lodged at AMC Entertainment during the third quarter of 2024, with our achieving two important milestones in what has been a long road toward a post-COVID recovery.
First, on solidifying our financial metrics, and despite our net loss, our Adjusted EBITDA posted in the 3rd quarter of 2024 was the second-best performance of any third quarter in AMC’s 104-year history,” Aron stated.
“And second, on the strengthening of AMC’s balance sheet, our debt transactions announcement in July pushed the maturity of $2.4 billion of our long term debt out into the future for several years, from 2026 to 2029 and 2030.”
AMC Entertainment was able to reduce its total outstanding debt by a whopping $349 million this year through various capital market strategies.
In terms of performance metrics, AMC achieved record admissions revenue per patron and an all-time high for food and beverage revenue per patron in Q3.
Despite attendance being 25% lower than in Q3 2019, the Adjusted EBITDA was on par with pre-pandemic levels.
Looking ahead, Aron expressed enthusiasm for the upcoming movie releases in November and December 2024, as well as in 2025 and 2026, anticipating a significant increase in industry-wide box office revenue as the year concludes and into the following years.
As of September 30, 2024, AMC Entertainment reported cash reserves of $527.4 million, excluding $49.7 million in restricted cash.
During the third quarter, the company undertook significant financial restructuring, extending the maturity of approximately $2.4 billion in debt from 2026 to 2029 and 2030.
This included issuing around $2 billion in new term loans while repurchasing existing loans, as well as completing various open-market purchases.
Notably, AMC repurchased $50 million in Second Lien Notes and exchanged portions of its subordinated notes for shares of Class A common stock.
Overall, AMC has reduced its corporate borrowings and finance leases by $349 million in 2024, reflecting its ongoing efforts to strengthen its financial position.
AMC stock is currently trading at $4.26 at the time of this writing.
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