AMC Entertainment Holdings Inc. (NYSE:AMC) reported mixed financial results in the third quarter of 2016. While the top line lagged the Zacks Consensus Estimate, the bottom line surpassed the same.
GAAP net income was $30.4 million or 31 cents per share compared with $12.1 million or 12 cents in the prior-year quarter. Third-quarter earnings per share of 31 cents were ahead of the Zacks Consensus Estimate of 28 cents.
Quarterly total revenue was $779.8 million, up 13.2% year over year but slightly below the Zacks Consensus Estimate of $782 million. Segment wise, Admission revenues were $496.7 million, up 12.6% year over year. Food and beverage revenues were $248.9 million, up 14.8% year over year. Other theater revenues were $34.2 million, up 10.8% year over year.
Quarterly operating expenses were $714.2 million, up 9.3% year over year. Operating income was $65.5 million, down a whopping 84.3% year over year. Operating margin increased to 8.4% from 5.4% in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $144.4 million, surging 32.5% year over year. Adjusted EBITDA margin was 18.5% compared with 15.8% in the year-ago quarter.
Cash Flow
During the third quarter of 2016, AMC Entertainment generated $77.4 million of cash from operations compared with $16.3 million in the year-ago quarter. Adjusted free cash flow was a negative $38.9 million compared with a negative $55.5 million in the prior-year quarter.
Liquidity
At the end of the third quarter of 2016, AMC Entertainment had $46.3 million of cash and cash equivalents and $1,853.5 million of outstanding debt compared with $211.3 million of cash and cash equivalents and $1,912.8 million of outstanding debt at the end of 2015. The debt-to-capitalization ratio, at third-quarter 2016 end, was 0.54 against 0.55 at the end of 2015.
AMC Entertainment competes with Carmike Cinemas Inc. (NASDAQ:CKEC) , Cinemark Holdings Inc. (NYSE:CNK) and Live Nation Entertainment Inc. (NYSE:LYV) . AMC Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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