AMC Entertainment (NYSE:AMC) beat Wall Street expectations for its first quarter results on Friday.
“Our results for the first quarter of 2023 represent AMC’s strongest first quarter in four full years.
We kicked off 2023 by continuing on our positive glide path to recovery, with more than a 21% growth in total revenues and a $69 million improvement in Adjusted EBITDA compared to the previous year.
The first quarter of 2023 and fourth quarter of 2022 mark the first two consecutive quarters of EBITDA since March of 2020.
This progress is a testament to the ongoing recovery in the industrywide box office, as well as AMC’s enduring commitment to the excellence and innovation as our guests enjoy a superb movie-going experience at our theatres,” said AMC CEO Adam Aron.
“AMC Theatres across the globe welcomed nearly 48 million guests in the first quarter thanks to the continued strength of James Cameron’s AVATAR: The Way of Water, and the knockout power of first quarter releases like Marvel’s Ant-Man and The Wasp: Quantomania, Creed III, Scream VI, Shazam! Fury of The Gods and John Wick Chapter 4.
All told, the first quarter North American box office easily surpassed 2022 by some 29%, totaling more than $1.7 billion.
The recovery in the European box office was even stronger in getting to pre-pandemic norms than that in the U.S.
As I have said for years, when our studio partners showcase their magical storytelling, there is robust demand to be realized at AMC theatres both in the U.S. and abroad.
We believe the first quarter of 2023 is just the tip of the iceberg for what’s to come in the remainder of the year.”
AMC Entertainment Q1 Results
Revenue for the quarter was $954.4 million, compared with analysts’ expectation of $948.5 million, according to Refinitiv IBES data.
Summary First Quarter 2023 Compared to First Quarter 2022:
- Total revenues grew 21.5% to $954.4 million.
- Net loss improved by $101.9 million to $235.5 million.
- Adjusted net loss was $179.7 million compared to an adjusted net loss of $266.3 million.
- Diluted loss per share was $0.17 compared to a diluted loss per share of $0.33.
- Adjusted diluted loss per share was $0.13 compared to an adjusted diluted loss per share of $0.26.
- Adjusted EBITDA improved by $68.8 million to $7.1 million.
- Net cash used in operating activities for the quarter was $189.9 million.
- Non-GAAP Operating Cash Burn1
for the quarter was $139.4 million compared to $223.9 million.
- Available liquidity at March 31, 2023 was $703.7 million, including $208.1 million of undrawn capacity under the
Company’s revolving credit facility.
“During the first quarter of 2023, we continued to strengthen our balance sheet by raising more than $155 million of cash through the sale of APE units, and by reducing the principal balance of our debt by more than $200 million in repurchasing debt or exchanging APE units for debt.
Our optimism about a clearly increasing industrywide box office notwithstanding, we have been very transparent that it will take a few more years for the industry box office to return near to pre-pandemic levels, and our ability to raise additional capital during this extended recovery period will be a crucial component of our success.
We will continue our fight to preserve our agility and to remain on our recovery trajectory, as we work hard to position AMC for long-term success.”
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