AMC Entertainment (AMC) Incurs Loss In Q2, Misses Estimates

AMC Entertainment Holdings Inc. (NYSE:AMC) reported disappointing financial results in the second quarter of 2017, wherein both the top and the bottom line missed the Zacks Consensus Estimate.

Quarterly GAAP net loss was $176.5 million or a loss of $1.35 per share compared with a net income of $24 million or 24 cents per share in the prior-year quarter. Second quarter loss per share of $1.35 was wider than the Zacks Consensus Estimate of a loss of $1.33 per share.

Total revenue of $1,202.3 million was up a significant 57.4% year over year missing the Zacks Consensus Estimate of $1,212 million. Segment wise, Admission revenues were $761.4 million, up substantially 58.2% year over year. Food and beverage revenues were $374.1 million, up a whopping 53.6% year over year. Other theater revenues were $66.8 million, soaring 70.4% year over year.

Quarterly operating expenses were $1,221.9 million, up an enormous 72.5% year over year. Operating loss was $19.6 million against an operating income of $55.6 million. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $135.8 million, up 4.5% year over year. Adjusted EBITDA margin was 11.3% compared with 17% in the year-ago quarter.

The board of directors has approved the repurchase of up to $100 million of the company's Class A common stock over a two-year period.

Cash Flow

In the second quarter of 2017, AMC Entertainment generated a negative $56.2 million of cash from operations compared with a positive $111.1 million in the year-ago quarter. Free cash flow in the reported quarter was a negative $212.9 million compared with a positive $28.5 million in the prior-year quarter.

Liquidity

At the end of the second quarter of 2017, AMC Entertainment had $127.8 million of cash and cash equivalents and $4,264.1 million of outstanding debt compared with $207.1 million of cash and cash equivalents and $3,761 million of outstanding debt at the end of 2016. The debt-to-capitalization ratio, at the end of second-quarter 2017, was 0.63 compared with 0.65 at the end of 2016.

AMC Entertainment Holdings, Inc. Price, Consensus and EPS Surprise

AMC Entertainment Holdings, Inc. Price, Consensus and EPS Surprise | AMC Entertainment Holdings, Inc. Quote

Operating Metrics

Number of screens operated was 10,776, up a whopping 104% year over year. Average ticket price was $9.33 compared with $9.62 in the year-ago quarter. In the reported quarter, food and beverage revenues per patron were $4.58 compared with $4.67 in the prior-year quarter. Consolidated attendance was 81,636,000, up a massive 63.3% year over year.

AMC Entertainment competes with major theatrical exhibitors like Cinemark Holdings Inc. (NYSE:CNK) , Live Nation Entertainment Inc. (NYSE:LYV) and Regal Entertainment Group (NYSE:RGC) . The company 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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