OREANDA-NEWS. AMC Entertainment Holdings, Inc. (“AMC” or “the Company”), one of the world’s leading theatrical exhibition companies and an industry leader in innovation and operational excellence, reported results for the fourth quarter and year ended December 31, 2015.

Highlights for the fourth quarter 2015 include the following:

  • Total revenues grew approximately 10.1% to fourth quarter record $783.9 million compared to total revenues of $712.2 million for the three months ended December 31, 2014.
  • Admissions revenues increased approximately 8.4% to a fourth quarter record $498.7 million compared to $460.3 million for the same period. Average ticket price increased 2.4% to a fourth quarter record $9.77, and attendance grew 5.8% to more than 51 million guests.
  • Food and beverage revenues grew approximately 12.5% to a fourth quarter record $242.3 million, compared to $215.3 million for the quarter ended December 31, 2014. Food and beverage revenues per patron increased 6.5% to $4.75, representing the highest in the history of the Company. As previously disclosed, in the prior year’s fourth quarter, the Company recorded a $5.1 million tax refund that benefited food and beverage revenues and did not recur this quarter. Excluding the benefit of the tax refund, fourth quarter 2014 food and beverage revenues were $210.2 million, and food and beverage revenue growth for the fourth quarter 2015 improved to 15.3%, while food and beverage revenues per patron growth improved to 8.9%.
  • Adjusted EBITDA(1) increased approximately 10.0% to a fourth quarter record $154.0 million compared to $140.1 million for the three months ended December 31, 2014 and Adjusted EBITDA Margin a fourth quarter record 19.7%, unchanged from the year ago period. Excluding the benefit of the $5.1 million tax refund mentioned previously, fourth quarter 2014 Adjusted EBITDA and Adjusted EBITDA Margin were approximately $135.0 million and 19.1% respectively, and Adjusted EBITDA growth for the fourth quarter 2015 improved to 14.1% while Adjusted EBITDA Margin improved 60 basis points from 19.1% to 19.7%.
  • Net earnings grew 39.6% to $41.6 million and diluted earnings per share grew 40.0% to $0.42 compared to the three months ended December 31, 2014. During the fourth quarter, AMC amended and extended its Senior Secured Credit Facility Term Loan due 2020 and completed the redemption of the remaining aggregate principal amounts of its 9.75% Senior Subordinated Notes due 2020. As a result, the Company incurred $1.4 million of financing costs that reduced net earnings by approximately $0.9 million, or approximately $0.01 per diluted share. Taking into account the financing costs and the benefit from the $5.1 million tax refund in the prior year’s fourth quarter, adjusted diluted earnings per share(1) for the three months ended December 31, 2015 grew 59.3% to $0.43 per share.
  • As previously announced, during the fourth quarter, we completed the acquisition of Starplex Cinemas for approximately $173 million. The transaction broadened AMC’s footprint and complements the Company’s large market portfolio by adding 33 theatres with 346 screens in 12 states, primarily in small and mid-size markets.

“The fourth quarter of 2015 was another strong quarter for AMC and a great finish to the year, as an unyielding focus on improving the guest experience continued to set records, drive attendance, and generate double-digit Adjusted EBITDA and diluted EPS growth,” said Adam Aron, AMC chief executive officer and president. “Additionally, in my view, there is opportunity aplenty for AMC that transcends resting on the successes of the past. We believe that there are a wealth of additional initiatives available to AMC in marketing, operations and technology that can further drive earnings growth and the creation of long term shareholder value.”

Highlights for the year ended 2015 include the following:

  • Total revenues increased 9.3% to a record $2,946.9 million compared to total revenues of $2,695.4 million for the year ended December 31, 2014.
  • Admissions revenues grew 7.2% to a record $1,892.0 million compared to $1,765.4 million for the 12 months ended December 31, 2014. Average ticket price increased 1.9% to $9.61 and attendance grew 5.2% to nearly 197 million guests.
  • Food and beverage revenues increased 14.1% to a record $910.1 million, compared to $797.7 million for the year ended December 31, 2014. Food and beverage revenues per patron increased 8.5% to a new annual record of $4.62.
  • Adjusted EBITDA grew 15.6% to a record $536.5 million compared to $463.9 million for the year ended December 31, 2014 and Adjusted EBITDA Margin was 18.2%, compared to 17.2% for the year ended December 31, 2014.
  • During 2015, AMC redeemed $600 million aggregate principal amount of its 9.75% Senior Subordinated Notes due 2020 and successfully issued $600 million aggregate principal amount of 5.75% Senior Subordinated Notes due 2025. The effect of the completed refinancing is an expected annual reduction of approximately $24 million in cash interest expense.
  • Net earnings increased 62.1% to $103.9 million and diluted earnings per share grew 60.6% to $1.06, compared to the year ended December 31, 2014. As a result of the refinancing mentioned above and an amendment and extension of its Senior Secured Credit Facility Term Loan due 2020, the Company incurred $10.7 million of financing costs that reduced net earnings by approximately $6.8 million or approximately $0.07 per diluted share. Also, during 2014, AMC redeemed its 8.75% Senior Notes due 2019. As a result, the Company recognized financing gains of $8.3 million that increased net earnings by approximately $5.5 million or approximately $0.06 per diluted share. Taking into account the financing gains and losses and the benefit from the $5.1 million tax refund in 2014, adjusted diluted earnings per share(1) for the year ended December 31, 2015 grew 98.2% to $1.13 compared to the same period a year ago.
  • Free Cash Flow(1) for the year ended December 31, 2015 increased approximately $51 million, or 72.2% to $121.2 million, surpassing $100 million for the first time in Company history.

Commenting on the full year results, Craig Ramsey, executive vice president and chief financial officer said, “From start to finish, 2015 was a record setting year for AMC, as our theatres continue to be among the most productive in the nation. Importantly, the earnings we have reported today are being converted into strong free cash flow, available for investment in our initiatives and guest centric strategies, as well as potential acquisition opportunities. We expect to continue that trend by elevating the guest experience to new heights as we seek to build an even stronger bond with our existing guests and introduce the AMC experience to new consumers. As we look ahead to 2016 we expect to continue our growth through disciplined capital allocation while actively managing our operating efficiencies. We believe the future looks very bright at AMC.”

About AMC Entertainment Holdings, Inc.

AMC (NYSE:AMC) is the guest experience leader with 387 locations and 5,426 screens located primarily in the United States. AMC has propelled innovation in the theatrical exhibition industry and continues today by delivering more comfort and convenience, enhanced food & beverage, greater engagement and loyalty, premium sight & sound, and targeted programming. AMC operates the most productive theatres in the country’s top markets, including No. 1 market share in the top three markets (NY, LA, Chicago).