AMC Entertainment Holdings Inc. released its fourth-quarter results on Wednesday, surpassing revenue expectations and reporting a narrower loss than anticipated. The positive performance was attributed to the success of concert films featuring Taylor Swift and Beyoncé.
The movie-theater chain, famously associated with the meme stock phenomenon, disclosed a net loss of $182 million, or 83 cents per share, compared to a loss of $287.7 million, or $2.64 per share, in the same quarter the previous year. Adjusting for nonrecurring items, AMC reported a loss of 54 cents per share, surpassing analysts’ expectations of a loss of 70 cents per share.
Revenue for the quarter grew by 11.5% to $1.104 billion, exceeding the consensus estimate of $1.058 billion from FactSet. Additionally, AMC’s adjusted EBITDA surged by 193% to $42.5 million.
Admissions revenue amounted to $614.6 million, outperforming the FactSet consensus of $592 million, while food-and-beverage revenue reached $370.2 million, also surpassing the consensus estimate of $357 million.
After the release of its fourth-quarter results, AMC shares experienced an 11% decline in extended trading. This drop comes amidst a significant downturn in the company’s stock price over the past year, with shares plummeting by 91.4%. The decline marks a stark contrast to the heights reached during the meme-stock frenzy in 2021 when AMC’s price surged close to $300.
During the earnings call, AMC’s Chief Executive Officer, Adam Aron, reiterated his empathy for shareholders, acknowledging the frustrations felt by investors. Aron disclosed personal losses of “tens of millions of dollars” over the past six months and emphasized his commitment to remaining a shareholder, stating, “I am holding, I am not selling, I ride with you.” He further announced a recommendation to the AMC board for a significant reduction in his target compensation for the next 12 months, proposing a 25% decrease compared to the previous year and a notable 50% reduction compared to his actual compensation for the past year.
Aron credited the success of “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé” for driving AMC’s fourth-quarter results. Despite a decline in overall box office revenue compared to the previous year, AMC’s revenue surged by 11.5%, and adjusted EBITDA nearly tripled. Aron attributed this growth entirely to the exhibition of these two films in AMC theaters across the United States and internationally.
During the conference call, Aron praised AMC’s distribution deals for the two concert films, emphasizing their significance as the first movies distributed by the company in its 103-year history. He expressed pride in reshaping the box office landscape and revealed ongoing discussions with other “world-class musical artists” for potential movie collaborations in 2024 and 2025.
Addressing the challenges faced by AMC, Aron attributed the decline in the theater chain’s share price to various factors, including last year’s Hollywood strikes, which disrupted film production and impacted box-office results in the early part of this year. Despite setbacks, Aron remained optimistic about the future, projecting a strengthening box office and anticipating a potentially lucrative year in 2025 for both the industry and AMC.
Acknowledging the concerns of shareholders, particularly regarding potential dilution from stock offerings, Aron emphasized the necessity of cash and highlighted the success of the company’s fundraising efforts. He pointed to the $418 million raised through AMC’s Preferred Equity Units, which were converted to common stock in August 2023, as evidence of the company’s commitment to shoring up its finances. Aron stressed the importance of liquidity, affirming that “cash is king” in navigating the challenges and opportunities ahead.