AMCTheatres, the world’s largest cinema chain, reached an agreement to restructure a portion of its debt to extend maturity dates by at least three years, the company said Monday.
AMC Theatres is currently saddled with $4.5 billion in debt, including more than $2.8 billion of maturities that were due in 2026. Because of the looming deadline, the company had been weighing debt-extension proposals.
With the new refinancing transactions, AMC will be able to prolong the maturity of approximately $1.6 billion in debt due in 2026 to 2029 and 2030. The cinema chain also plans to steady its balance sheet by arranging for the potential repurchase of up to $800 million of additional existing debt due in 2026, as well as issuing $414 million of new debt due in 2030. AMC also ironed out a deal for the potential repurchase of up to $50 million of debt due in 2025, 2026 and 2027.
Additionally, AMC Theaters has transferred the leases and property of 175 domestic theaters to Muvico, a newly formed subsidiary created for the purposes of the debt deal. This will allow the movie theater circuit to exchange existing debt for new obligations from these locations.
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“Today marks a major milestone for AMC,” the company’s chairman and CEO Adam Aron said in a statement. “Thanks to the unwavering support and commitment from our lenders, we have successfully extended a substantial portion of our 2026 debt maturities to 2029 and 2030. Not only have our lenders agreed to extend our debt maturities but we have also created the potential for significant debt reduction as the industry recovers.”
Aron is bullish about the domestic box office, which is down 17% in 2024 compared with the same period in 2023 and nearly 35% behind 2019. After a terrible start to summer, though, moviegoing seems to be rebounding. June and July releases, such as “Inside Out 2,” “Despicable Me 4,” “A Quiet Place: Day One” and “Twisters,” have provided a needed jolt to the business. Marvel’s “Deadpool & Wolverine,” starring Ryan Reynolds and Hugh Jackman as their comic book alter egos, should continue the trend. The superhero sequel lands on the big screen Friday and looks to deliver one of the biggest debuts of 2024.
“The box office challenges of the first half of 2024 are now in the rear-view mirror. The recovery momentum is back,” Aron said. “We expect strong year-over-year box office growth in the back half of 2024, continuing into 2025 and 2026. With today’s announcement, we are ever more confident in the future of our business as we will continue to take the necessary actions to best position AMC to thrive in a more favorable environment.”
Though the pandemic and last year’s Hollywood strikes exacerbated things, AMC’s debt dilemma is largely self-created. When Aronbecame CEO in 2016, he transformed the company into a global powerhouse, acquiring Carmike Cinemas, London-based Odeon & UCI Cinemas and Nordic Cinema Group. Not all of those deals paid off.
However, the company managed to capitalize on the 2021 “meme stock” frenzy— fueled by young retail investors, many of whom were more interested in sticking it to hedge funds seeking to short-sell the stock than they were in supporting the big screen — which sent the circuit’s stock price to the moon. It miraculously allowed AMC to improve its financial situation and renegotiate its massive debt obligations. Shares subsequently fell back to earth and are currently trading at roughly $5.50.
“Retail shareholders saved AMC,” Aron told Variety earlier this year. “We said back then we weren’t necessarily trading based on fundamentals. The share price has come down, but [the phenomenon] was good for our company. And there are still millions and millions of retail shareholders who are invested in AMC stock.”
FAQs
Total debt on the balance sheet as of June 2024 : $8.67 B
According to AMC Entertainment's latest financial reports the company's total debt is $8.67 B. A company's total debt is the sum of all current and non-current debts.
What is AMC debt coverage ratio? ›
AMC Entertainment Holdings Debt to Equity Ratio: -2.555 for June 30, 2024.
How much time do you get for the AMC? ›
But the AMC is so much more than just the pathway to winning the title of America's greatest high school mathematician. Even for academic mortals, the AMC's 75 minutes of pure problem-solving fun is likely one of the most enjoyable tests you'll ever take.
What is the R movie policy at AMC? ›
AMC Requires Adult Supervision For Guests Under 17 in R-Rated Movies. AMC policies specific to R-Rated titles include children under 6 are not allowed at R-Rated movies after 6pm at any theatre. Guests under 17 must be accompanied by a guardian who is 21 or older. Please be prepared to show ID at the theatre.
Is AMC financially healthy? ›
Key IBD Ratings. AMC's ratings in IBD Stock Checkup are still showing extremely bearish tints. They include a very weak 13 Earnings Per Share Rating on a scale of 1 to 99, down from 70 prior to Q4 results.
What percent of AMC is owned by retail investors? ›
What percentage of AMC Entertainment (AMC) stock is held by retail investors? According to the latest TipRanks data, approximately 71.41% of AMC Entertainment (AMC) stock is held by retail investors. Who owns the most shares of AMC Entertainment (AMC)? Vanguard owns the most shares of AMC Entertainment (AMC).
What is the meaning of debt coverage ratio? ›
In a business context, debt-service coverage ratio (DSCR) is a metric that compares a company's cash flow against its debt obligations. Business owners and investors can use DSCR to understand if the company is generating enough net operating income to cover existing debts, including principal and interest.
Is a high debt coverage ratio good? ›
A good DSCR depends on the company's industry, its competitors, and its growth. A smaller company that's just beginning to generate cash flow might face lower DSCR expectations compared with a mature company that's already well-established. A DSCR above 1.25 is often considered strong as a general rule, however.
What is the cash to debt coverage ratio? ›
The cash flow-to-debt ratio is the ratio of a company's cash flow from operations to its total debt. This ratio is a type of coverage ratio and can be used to determine how long it would take a company to repay its debt if it devoted all of its cash flow to debt repayment.
How much does AMC cost per month? ›
How much does AMC+ cost? Without any deals, AMC+ costs $8.99 per month. The service doesn't include ads and doesn't offer any other price tiers.
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How much does AMC make on tickets? ›
In 2023, the revenue of AMC Theatres amounted to almost 4.8 billion U.S. dollars, out of which 2.7 billion dollars came from admissions at the box office. Sales of food and beverage accounted for 1.7 billion dollars of the movie theater chain's total revenue.
Can a 12 year old go to AMC alone? ›
Guests under 17 must be accompanied by a guardian who is 21 or older for the duration of the show. Please be prepared to show ID.
Can a 17 year old watch a rated R movie alone? ›
R: Restricted - Under 17 requires accompanying parent or guardian. Children under 17 are not allowed to attend R-rated movies unless accompanied by a parent or legal guardian 25 years of age or older.
How long do movies stay in theaters in 2024? ›
Last year, the average run of a widely released film was 39 days, according to The Numbers. So far in 2024, the average run is 29 days. Of course, as bigger blockbuster titles roll out in the summer months, that figure is expected to grow.
Is AMC making a profit? ›
AMC Entertainment Holdings Inc's profitability score is 50/100. We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score.
What is AMC Theaters profit margin? ›
AMC Entertainment Holdings net profit margin as of June 30, 2024 is -8.15%. Current and historical net profit margin for AMC Entertainment Holdings (AMC) over the last 10 years.
What is the annual revenue of AMC theaters? ›
Annual revenue
| Year | Revenue | Change |
|---|
| 2023 | $4.81 B | 23.04% |
| 2022 | $3.91 B | 54.73% |
| 2021 | $2.52 B | 103.47% |
| 2020 | $1.24 B | -77.29% |
8 more rowsTotal Valuation
AMC has a market cap or net worth of $1.78 billion. The enterprise value is $9.69 billion.
