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AMC ENTERTAINMENT HOLDINGS, INC. (AMC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue rose 18.3% year-over-year to $1.306B, adjusted EBITDA more than tripled to $164.8M, and free cash flow reached $113.9M—AMC’s highest quarterly cash flow post‑pandemic . Management said the company “handily beat consensus estimates” for revenue and adjusted EBITDA in the quarter .
  • Attendance climbed 20.2% YoY to 62.4M, with an all‑time Q4 record food & beverage per patron of $7.15; consolidated contribution margin per patron was $14.05 .
  • Balance sheet actions reduced total borrowings and finance leases by $375.9M in 2024; cash ended Q4 at $632.3M, with $203.6M cash from operations in the quarter .
  • 2025 outlook: management expects domestic industry box office to grow by $0.5B–$1.0B vs. 2024; Q1 seasonality will likely reverse some Q4 working capital benefits before accelerating into Q2/Q3/Q4 .
  • Strategic catalysts: the “Go Plan” to invest $1.0–$1.5B over 4–7 years in PLF/XLF screens, laser projection, and seating upgrades (including XL at AMC rollout), plus a pledge of no additional 2025 common equity sales without shareholder authorization .

What Went Well and What Went Wrong

What Went Well

  • Record Q4 performance: “Adjusted EBITDA more than tripled... more than $200 million of cash from operating activities and approximately $114 million in free cash flow — our highest quarterly cash flow post pandemic” .
  • Strong demand and monetization: 62M+ guests, 20% YoY attendance increase; all‑time Q4 record F&B per patron ($7.15) and post‑pandemic record Q4 revenue ($1.306B) .
  • Operating leverage: EBITDA rose 244% on 18% revenue growth, demonstrating leverage when content is compelling; management highlighted per‑patron metrics ~34% above 2019 levels .

What Went Wrong

  • Profitability remains constrained: Net loss of $(135.6)M and diluted loss/share of $(0.35) in Q4; interest expense remains heavy (corporate borrowings interest of $112.0M in Q4) .
  • Non‑cash impairments and costs: $72.3M impairment of long‑lived assets and other expense items continued to weigh on GAAP results .
  • Near‑term working capital reversal: Management cautioned Q4 working capital cash benefits will largely reverse in Q1 2025 due to payment timing and seasonality .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$1,104.4 $1,348.8 $1,306.4
Net Loss ($USD Millions)$(182.0) $(20.7) $(135.6)
Diluted EPS ($USD)$(0.83) $(0.06) $(0.35)
Adjusted EBITDA ($USD Millions)$47.9 $161.8 $164.8
Net Cash from Operations ($USD Millions)$(77.8) $(31.5) $203.6
Free Cash Flow ($USD Millions)$(149.9) $(92.2) $113.9

Segment breakdown:

SegmentQ4 2023 Revenue ($MM)Q3 2024 Revenue ($MM)Q4 2024 Revenue ($MM)Q4 2023 Adj. EBITDA ($MM)Q3 2024 Adj. EBITDA ($MM)Q4 2024 Adj. EBITDA ($MM)
U.S. Markets$832.9 $1,055.3 $983.9 $37.7 $143.3 $123.0
International$271.5 $293.5 $322.5 $10.2 $18.5 $41.8
Consolidated$1,104.4 $1,348.8 $1,306.4 $47.9 $161.8 $164.8

Key KPIs:

KPI (Consolidated)Q4 2023Q3 2024Q4 2024
Attendance (thousands)51,920 65,087 62,424
Average Ticket Price ($)$11.84 $11.43 $11.56
F&B per Patron ($)$7.13 $7.53 $7.15
Contribution Margin per Patron ($)$14.81 $13.49 $14.05
GAAP Gross Profit per Patron ($)$0.42 $2.04 $2.41

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
CapEx (net of landlord contributions)FY 2025Not previously quantified$175–$225MNew
Deferred rent reductionFY 2025Q4 2024 plan to reduce by ~$2M Reduce by ~$8M in 2025Raised
Domestic industry box office outlook vs. 2024FY 20252025 expected to surpass 2024 +$0.5B–$1.0B vs. 2024Raised specificity
Multi‑year “Go Plan” investment2025–2031 (4–7 yrs)Announced Nov 2024$1.0–$1.5B; PLF/XLF/laser/seating upgradesMaintained
Equity issuance policy (common stock)Calendar 2025Historically raised equity as neededNo additional 2025 common stock sales unless shareholders authorize more sharesTightened

Earnings Call Themes & Trends

TopicQ2 2024 (Prior‑2)Q3 2024 (Prior‑1)Q4 2024 (Current)Trend
PLF/XL expansionPlans to strengthen large formats and more announcements ahead “Go Plan” unveiled; IMAX with Laser upgrades; 25% more Dolby; more PRIME; XL concept piloted in Europe and coming to U.S. Reaffirm PLF/XLF expansion and seating upgrades; offensive stance to grow EBITDA Accelerating
Loyalty & subscriptionTeased major Stubs/A‑List enhancements for 2025 Reinforced enhancements coming in 2025 Launched Premiere GO! tier; A‑List raised to 4 movies/week, age down to 13; A‑List Classic to debut May Implementation underway
Merchandise & F&BMerchandise scaling to ~$50M; record F&B per patron All‑time record F&B per patron $7.53; strong collectible demand 2024 merch ~$65M; all‑time Q4 record F&B per patron $7.15 Strong growth
Windows/streaming dynamics45‑day theatrical window broadly adopted; day‑and‑date was a “disaster” for theaters —Advocating longer windows; active studio dialogues (Apple/Amazon embrace theatrical; Netflix selectively) Policy advocacy
Box office trajectoryTurning point mid‑June; strong slate into 2025‑26 Q4 2024 expected to surpass prior year; 2025/26 bigger again 2025 projected +$0.5B–$1.0B; sequential quarterly improvement expected Improving
Balance sheet deleveragingExtended maturities to 2029/2030; strong liquidity Further debt reduction; $527M cash at Q3 $375.9M principal/lease reduction in 2024; Q4 FCF positive; $632.3M cash Ongoing improvement

Management Commentary

  • “AMC delivered record fourth quarter results... Adjusted EBITDA more than tripled... generated more than $200 million of cash from operating activities and approximately $114 million in free cash flow — our highest quarterly cash flow post pandemic.” — Adam Aron, CEO .
  • “More than 62 million guests visited an AMC theatre worldwide... driving food and beverage revenue per patron to $7.15 — an all‑time fourth quarter record for AMC.” — Adam Aron .
  • “Operating leverage... revenue increased by 18.3%... adjusted EBITDA increase of 244%... clear indication of the operating leverage inherent in our business.” — Sean Goodman, CFO .
  • “Go Plan... go on offense... add more premium experiences... upgrade seating... bring XL screens to the U.S.” — Adam Aron .
  • “There will be no more cash raised from the sale of common stock in calendar year 2025, unless we first take that matter... to you, our shareholders...” — Adam Aron .

Q&A Highlights

  • CapEx cadence: CapEx to remain ~$200M until growth capital access improves; exploring third‑party financing; no surprise increases without prior communication .
  • Streamers & theatricals: Apple/Amazon increasingly embracing theatrical; hope for longer windows and more streamer deals (e.g., Narnia on IMAX); Netflix engagement ongoing .
  • Merchandise strategy: ~50% margins; ~$65M in 2024; plan to increase item count and quantities to avoid sell‑outs; potential to extend supply beyond opening weekend .
  • Theatrical windows: Re‑establishing 45‑day window as “sacrosanct,” pushing toward longer windows (60–74 days) to support box office and downstream streaming success .
  • Working capital: Q4 benefits expected to reverse in Q1 due to payment timing; seasonality remains a factor .

Estimates Context

  • S&P Global consensus data was unavailable to retrieve during this session due to data access limits (Daily Request Limit exceeded). Management stated AMC “handily beat consensus estimates for both revenue and adjusted EBITDA” in Q4 2024 .
  • Implications: Given Q4 outperformance and strengthened 2025 outlook (+$0.5B–$1.0B domestic box office vs. 2024), sell‑side models are likely to revisit 2025/26 revenue and EBITDA trajectories, as well as PLF/CapEx phasing; Q1 seasonality and working capital reversal should be incorporated .

Key Takeaways for Investors

  • Content‑driven operating leverage is intact: 18.3% revenue growth translated to 244% adjusted EBITDA growth in Q4; per‑patron monetization remains above 2019, supporting margin recovery as box office improves .
  • Cash generation inflection: $203.6M CFO and $113.9M FCF in Q4 provide near‑term liquidity cushion; expect Q1 reversal of working capital before ramp in Q2/Q3/Q4 with slate strength .
  • Strategic “Go Plan” and XL rollout should enhance premium mix and pricing power, targeting higher theater‑level EBITDA and differentiation versus peers .
  • Box office trajectory and windows are catalysts: a longer exclusive window would support theatrical revenues; management is actively lobbying studios for 45–60+ days .
  • Balance sheet risk moderating: 2024 debt reductions and extended maturities underpin runway; management pledge on no additional 2025 common equity sales without shareholder approval reduces dilution overhang .
  • Near‑term watch items: Q1 cash flow seasonality, interest expense burden, non‑cash impairment risk, and execution on PLF/seating upgrades; monitor industry release schedules and market share dynamics .
  • Trading angle: Q4 beat narrative plus 2025 box office uplift and premium initiatives are positive catalysts; Q1 seasonality and GAAP losses remain headline risks—position sizing should reflect these crosscurrents .

Additional Relevant Press Releases (Q4 2024)

  • “AMC’s Go Plan – multi‑year plan to invest up to $1.5B over four to seven years” (PLF/XLF/laser/seating upgrades) .
  • “XL at AMC” rollout in 50–100 U.S. locations in 2025, expanding to 200–250 over time .
  • Record pre‑Thanksgiving weekend domestic revenue driven by WICKED and GLADIATOR II; merchandise sell‑outs .

Prior Two Quarters’ Context

  • Q3 2024: Revenue $1,348.8M; adjusted EBITDA $161.8M; F&B per patron reached an all‑time record ($7.53); cash ended Q3 at $527.4M; maturities extended to 2029/2030 .
  • Q2 2024: Box office inflection starting mid‑June; distribution and alternative content initiatives; maturities extension announced; merchandise scaling; EBITDA leverage vs. 2019 despite lower attendance .