Like most of its peers, the No. 2 exhibition chain has good reason to look fondly at the results from 2012 — a year when industrywide domestic box office hit a record high of $10.8B. AMC Entertainment says it generated net income of nearly $58M for the year, up from a $242.4M loss in 2011, on revenues of $2.65B, +10.8%. Much of the increase was due to the 6.8% pickup in attendance, to 199M. With that and a 1.9% increase in the average ticket price, to $9.04, total admission revenues increased 8.8% to $1.79B. In addition, concession sales rose 12.3% to $743.4M. AMC didn’t include quarterly results in the report it filed at the SEC to account for changes in its fiscal year, which now will end in December instead of March. The report notes that CEO Gerald Lopez received $4.1M in compensation for the nine-month period that ended in December, up from $1.7M for the fiscal year that ended in March.
In September, China’s Wanda Group paid $2.75B for AMC. The exhibition chain says that it still carried $2.2B in debt at the end of 2012. AMC also anticipates capital expenditures of $270M this year, and $290M a year for the next three years. At a time when rivals including Regal and Cinemark are snapping up small theater chains, AMC says that it may have to sit on the sidelines: It warns of possible antitrust problems and adds that it might be unable to borrow more money due to existing debt covenants.
- Arts & Entertainment