AMC Entertainment Holdings, Inc. Provides Additional Financial Disclosure Related to Recent Acquisitions and
Announces Timing for First Quarter 2017 Results and Conference Call
AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), the largest theatrical exhibition company in the U.S., in
Europe and in the world, and an industry leader in innovation and operational excellence, announced today that to facilitate
greater transparency and clarity it is providing additional financial disclosure primarily related to its three recent
acquisitions.
First Quarter 2017 Adjusted EBITDA: As of today, the Company expects its reported adjusted
EBITDA to exceed the current FACTSET EBITDA consensus estimate for the first quarter ended March 31, 2017. As has long been the
case, the Company believes that adjusted EBITDA is relevant and helpful in understanding the Company’s financial performance, but
also understands that it is a non-GAAP term as defined in the Company’s appropriate public filings.
Earnings and earnings per share are expected to be impacted by the following expenses related to AMC’s three recent
acquisitions:
Depreciation and Amortization : Depreciation and amortization expense for 2017 is
expected to increase compared to 2016 as a result of an increase in depreciable assets related primarily to the Odeon Cinemas Group
(“Odeon”) and Carmike Cinemas, Inc. (“Carmike”) acquisitions, our 2016 capital expenditures and our anticipated increase in 2017
capital expenditures. The increased asset amounts have been calculated after applying the Company’s accounting policies and
adjusting the results of Carmike and Odeon to reflect the preliminary fair value adjustments to property and equipment under U.S.
GAAP. These accounting adjustments resulted in a significant write-up of assets and increases in capital lease and financing lease
assets, and subsequently, an expected increase in depreciation and amortization expense for 2017. For the first quarter ended March
31, 2017, depreciation and amortization expense is expected to be between $125.0 and $130.0 million dollars.
Interest Expense: Interest expense for 2017 is expected to increase compared to 2016 as a result
of the additional borrowings related to the Odeon, Carmike and Nordic acquisitions and related to capital and financing lease
obligations acquired in the Odeon and Carmike acquisitions. For the first quarter ended March 31, 2017, interest expense is
expected to be between $62.0 and $65.0 million dollars.
Merger and Acquisition Expense: Merger and acquisition expense for the first quarter ended March
31, 2017, is expected to increase compared to the first quarter of 2016 primarily as a result of AMC’s implementation of the
requirements of the final judgment entered in conjunction with the DOJ approval of the Carmike acquisition, and the successful
completion of the Nordic Cinema Group Holding AB (“Nordic”) acquisition. As previously reported on March 10, 2017, AMC returned 1.8
million NCM common units (valued at $22.6 million) to National CineMedia, Inc. (NASDAQ: NCMI) (“NCM”) in exchange for a waiver of
exclusivity by NCM related to the required transfer of theatres from the NCM contract to the Screenvision contract. As previously
reported, this expense will be recorded as merger and acquisition expense in the first quarter of 2017. For the first quarter ended
March 31, 2017, merger and acquisition expense is expected to be between $40.0 and $43.0 million.
Average Shares Outstanding : Average shares outstanding for 2017 is expected to increase
compared to 2016 as a result of the equity consideration provided to complete the Odeon and Carmike acquisitions in 2016 and the
successful public offering of AMC Class A common stock in February 2017. For the first quarter ended March 31, 2017, average
diluted shares outstanding are expected to be between 121.0 and 123.0 million shares.
CEO Comment: “We remain committed to providing appropriate and relevant financial disclosure to
our shareholders. We believe that with the complexity and close timing of the three transformative acquisitions we have
successfully completed in the last five months, the additional disclosure we are providing today, beyond the pro forma financial
information we have already published, will be helpful for investors,” said Adam Aron, AMC’s Chief Executive Officer and President.
“We continue to be excited about the earnings potential for AMC as we have grown to a network of approximately 1,000 theatres and
11,000 screens in 15 countries in the U.S. and Europe. As we deploy our proven growth initiatives across our system, we expect to
unlock both near-term and long-term value, as evidenced already by the fact that, as of today we expect to exceed the current
FACTSET consensus EBITDA estimate for the first quarter ended March 31, 2017. When appropriate and feasible, we expect to provide
additional financial disclosure related to the acquisitions and their contributions for the balance of 2017.”
AMC expects to report its results for the first quarter ended March 31, 2017, after the market closes on Monday, May 8,
2017.
The Company will host a conference call via webcast for investors and other interested parties beginning at 4:00 p.m. CDT/5:00
p.m. EDT on Monday, May 8, 2017. To listen to the conference call via the internet, please visit the investor relations section of
the AMC website at www.investor.amctheatres.com for a link to the webcast. Investors and interested parties should go to the
website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.
- Date: Monday, May 8, 2017
- Time: 4:00 p.m. CDT/5:00 p.m. EDT
- Dial-In Number: (877) 407-3982; International - (201) 493-6780
An archive of the webcast will be available on the Company’s website after the call for a limited time.
Information Regarding Preliminary Results
The preliminary estimated financial information contained in this press release reflects management’s estimates based solely
upon information available to it as of the date of this press release and is not a comprehensive statement of our financial results
for the three months ended March 31, 2017. In addition, the preliminary estimated financial information presented above has not
been audited, reviewed or compiled by our independent registered public accounting firm, KPMG LLP. Accordingly, KPMG LLP does not
express an opinion on or any other form of assurance with respect thereto and assumes no responsibility for this information. We
have provided ranges for the preliminary estimated financial results described above primarily because our financial closing
procedures for the three months ended March 31, 2017, are not yet complete. The information presented above should not be
considered a substitute for full unaudited financial statements for the three months ended March 31, 2017, once they become
available and should not be regarded as a representation by us or our management as to our actual financial results for the three
months ended March 31, 2017. The ranges for the preliminary estimated financial results described above constitute forward-looking
statements. The preliminary estimated financial information presented above is subject to change, and our actual financial results
may differ from such preliminary estimates and such differences could be material. AMC does not intend, and undertakes no duty, to
update the preliminary estimated financial results except as required by applicable law. Accordingly, you should not place undue
reliance upon these preliminary estimates. The preliminary estimated financial information is being provided because of
circumstances applicable to the three months ended March 31, 2017, and AMC makes no commitment to provide similar preliminary
estimated financial information for future periods whether such circumstances exist or not.
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the U.S., in Europe and throughout the world with approximately 1,000 theatres
and 11,000 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying more plush
power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty
program, web site and smart phone apps; offering premium large format experiences and playing a wide variety of content including
the latest Hollywood releases and independent programming. AMC operates among the most productive theatres in the United States'
top markets, having the #1 or #2 market share positions in 22 of the 25 largest metropolitan areas of the United States, including
the top three markets (NY, LA, Chicago). Through its Odeon subsidiary AMC operates in 14 European countries and is the # 1 theatre
chain in UK & Ireland, Italy, Spain, Sweden, Finland and the Baltic States. www.amctheatres.com.
Website Information
This press release, along with other news about AMC, is available at www.amctheatres.com. We routinely post information that may be important to investors in the Investor Relations
section of our website, www.investor.amctheatres.com. We use this website as a means of disclosing material, non-public information and
for complying with our disclosure obligations under Regulation FD, and we encourage investors to consult that section of our
website regularly for important information about AMC. The information contained on, or that may be accessed through, our website
is not incorporated by reference into, and is not a part of, this document. Investors interested in automatically receiving news
and information when posted to our website can also visit www.investor.amctheatres.com to sign up for email Alerts.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as
“forecast,” “plan,” “estimate,” “will,” “would,” “project,” “maintain,” “intend,” “expect,” “anticipate,” “prospect,” “strategy,”
“future,” “likely,” “may,” “should,” “believe,” “continue,” “opportunity,” “potential,” and other similar expressions that predict
or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on
information available at the time the statements are made and/or management’s good faith belief as of that time with respect to
future events, and are subject to risks, trends, uncertainties and other facts that could cause actual performance or results to
differ materially from those expressed in or suggested by the forward-looking statements. These risks, trends, uncertainties and
facts include, but are not limited to, risks related to: motion picture production and performance; AMC’s lack of control over
distributors of films; intense competition in the geographic areas in which AMC operates; increased use of alternative film
delivery methods or other forms of entertainment; shrinking exclusive theatrical release windows; international economic, political
and other risks; risks and uncertainties relating to AMC’s significant indebtedness; limitations on the availability of capital;
risks relating to AMC’s inability to achieve the expected benefits and performance from its recent acquisitions; AMC’s ability to
comply with a settlement it entered into with the U.S. Department of Justice pursuant to which it agreed to divest theatres and
divest holdings in National CineMedia, LLC; AMC’s ability to refinance its indebtedness on favorable terms; optimizing AMC’s
theatre circuit through construction and the transformation of its existing theatres may be subject to delay and unanticipated
costs; failures, unavailability or security breaches of AMC’s information systems; risks relating to impairment losses and theatre
and other closure charges; AMC’s ability to utilize net operating loss carryforwards to reduce its future tax liability; review by
antitrust authorities in connection with acquisition opportunities; risks relating to unexpected costs or unknown liabilities
relating to recently completed acquisitions; risks relating to the incurrence of legal liability; general political, social and
economic conditions and risks, trends, uncertainties and other factors discussed in the reports AMC has filed with the SEC. Should
one or more of these risks, trends, uncertainties or facts materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly,
you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.
Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or results will be achieved. For a detailed discussion of risks, trends
and uncertainties facing AMC, see the section entitled “Risk Factors” in AMC’s Annual Report on Form 10-K, filed with the SEC on
March 10, 2017, and the risks, trends and uncertainties identified in its other public filings. AMC does not intend, and undertakes
no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable
law.
AMC Entertainment Holdings, Inc.
Investor Relations:
John Merriwether, 866-248-3872
InvestorRelations@amctheatres.com
or
Media Contact:
Ryan Noonan, 913-213-2183
rnoonan@amctheatres.com
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