• Revenue: Increased by 18.3% year-over-year to $1.3 billion in Q4 2024.
• Adjusted EBITDA: Rose to $164.8 million, more than triple the previous year's Q4 figure.
• Cash from Operating Activities: Generated $203.6 million in Q4 2024.
• Free Cash Flow: Achieved $113.9 million in Q4 2024.
• Attendance: 62.4 million guests in Q4 2024, a 20% increase from Q4 2023.
• Food and Beverage Revenue per Patron: Reached a record $7.15 in Q4 2024.
• Admissions Revenue per Patron: $11.56 in Q4 2024, the second highest for a fourth quarter.
• Net CapEx: $83.9 million in Q4 2024, totaling $213.7 million for the full year.
• Theater Footprint: Net reduction of 130 locations since December 31, 2019.
• Debt Reduction: Reduced principal balance of debt and finance leases by $375.9 million in 2024.
• Cash and Cash Equivalents: $632.3 million at the end of Q4 2024.

• Warning! GuruFocus has detected 3 Warning Signs with AMC.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AMC Entertainment Holdings Inc (NYSE:AMC) reported a significant increase in revenue, up 18% year over year for the fourth quarter of 2024.
• The company achieved a post-pandemic record for adjusted EBITDA, which more than tripled to $164.8 million compared to the previous year.
• AMC generated over $200 million in cash from operating activities and $114 million in free cash flow, marking the highest quarterly cash flow post-pandemic.
• Attendance at AMC theaters worldwide increased by 20% in the fourth quarter of 2024, with over 62 million guests visiting.
• AMC achieved all-time records for food and beverage revenue per patron, driven by innovative offerings and enhanced guest experiences.

Negative Points

• Despite improvements, AMC's domestic industry-wide movie theater attendance remains down nearly 40% from pre-pandemic levels.
• The company continues to face challenges with the timing of film releases and audience attendance patterns, impacting cash flow.
• AMC's admissions revenue per patron declined by approximately 2.4% compared to Q4 2023, when not normalized for special events.
• The company is constrained by limited access to growth capital, affecting its ability to increase CapEx for expansion initiatives.
• AMC's share price has declined over the past three years, causing concern among shareholders and impacting investor sentiment.

Q & A Highlights

Q: With the AMC GO Plan and expected box office growth, will CapEx rise to $375 million annually, or is there more visibility on CapEx deployment? A: Adam Aron, CEO, stated that CapEx will remain around $200 million until AMC has access to growth capital. The company is exploring creative financing options and will notify stakeholders in advance of any significant CapEx increases.

Q: What are your thoughts on IMAX's exclusive theatrical run for Narnia and the evolving dynamic between streaming and theaters? A: Adam Aron, CEO, noted that some streamers like Apple and Amazon are embracing theatrical releases, which is encouraging. He believes that successful theatrical releases often lead to successful streaming performances. AMC is hopeful for more collaborations with streaming services.

Q: Can you provide an update on AMC's movie-themed merchandise and collectibles? A: Adam Aron, CEO, highlighted that AMC's movie-themed merchandise has been a success, generating about $65 million in 2024 with a profit margin around 50%. The company plans to increase merchandise quantities to meet demand and continue expanding this revenue stream.

Q: Are there opportunities to negotiate longer theatrical release windows, and how might that impact the business? A: Adam Aron, CEO, expressed a desire for longer theatrical windows, as the current shorter windows have not been beneficial. He believes longer windows would increase revenue for both theaters and studios, and discussions with major studios are ongoing.

Q: When do you expect the industry box office to return to pre-pandemic levels? A: Adam Aron, CEO, is optimistic about box office growth, projecting a $0.5 billion to $1 billion increase in 2025 compared to 2024. He anticipates further growth in 2026, driven by a strong slate of upcoming films and increased movie releases.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.