Friday, May 30, 2025

Latest

AMC’s Q3 2024 Earnings: Revenues Slip, Net Loss Widens, Cash Flow In The Red

AMC Entertainment Holdings (NYSE: AMC) posted its financial results for the third quarter of 2024, reporting total revenues of $1.35 billion, a slight decrease from $1.41 billion in Q3 2023, representing a 4.1% drop year-over-year. This decrease reflects a lingering downturn in admissions revenue, which fell from $797.7 million in Q3 2023 to $744.2 million this quarter, a 6.7% decline.

Although the company managed to achieve a record in admissions revenue per patron and set an all-time quarterly record for food and beverage revenue per customer, the overall decline in foot traffic dampened the impact of these gains. Attendance fell by 11.5% year-over-year, with domestic attendance down 8.9% and international attendance experiencing a sharper 17.6% drop.

CEO Adam Aron commented, “While we’re seeing positive trends in the industry-wide box office, some metrics are still behind last year’s performance. However, we remain optimistic due to a strong upcoming movie slate.”

Operating expenses, excluding depreciation, were nearly flat year-over-year, amounting to $454.6 million in Q3 2024 compared to $449.8 million in Q3 2023. Rent expenses decreased slightly, totaling $216.4 million for the quarter, reflecting some cost control efforts. General and administrative expenses remained steady, highlighting a focused cost structure amid challenging macroeconomic conditions.

Capital expenditures were $155.8 million for the first nine months of 2024, showing an ongoing commitment to enhancing AMC’s theater network. However, ongoing cash burn remains an issue; net cash used in operating activities for Q3 2024 was $31.5 million, compared to net cash provided by operations of $65.9 million in Q3 2023.

Free cash flow remained deeply negative, with a free cash outflow of $92.2 million for Q3 2024, a stark contrast to the positive free cash flow of $8.4 million in Q3 2023. The substantial $100.6 million swing in cash flow highlights the challenges AMC faces in generating cash from operations amid declining revenues and elevated interest costs.

The company reported a net loss of $20.7 million in the latest quarter, a significant reversal from the net profit of $12.3 million posted in Q3 2023. This reflects a $33 million year-over-year swing, which can be attributed to continued operating expenses and a high interest burden. Operating income for Q3 2024 stood at $71.8 million, down from $99.4 million in the year-ago quarter.

Adjusted EBITDA, a key performance metric, dropped from $199.9 million in Q3 2023 to $161.8 million this quarter. Despite this year-over-year decline, the company highlighted that its Q3 2024 Adjusted EBITDA was the second-best third-quarter performance in its history. Aron emphasized the impact of “financial and operational efficiencies” in maintaining this level of EBITDA, even as attendance remains approximately 25% lower than in pre-pandemic Q3 2019.

During Q3, AMC successfully pushed out the maturities of $2.4 billion of its long-term debt from 2026 to 2029 and 2030, significantly easing short-term refinancing pressures. To bolster liquidity, AMC has undertaken various transactions to reduce its debt by roughly $349 million this year through debt buybacks and equity exchanges, yet the company still faces high ongoing interest obligations, as evidenced by $109.6 million in interest expenses for the quarter.

As of September 30, AMC held cash and equivalents totaling $527.4 million, a decline from $752.3 million at the end of Q3 2023.

AMC faces a daunting array of challenges, including the shift towards digital and streaming platforms and the impact of 2023’s writers’ and actors’ strikes, which delayed some film releases. Despite these hurdles, AMC remains committed to a bullish outlook, betting on the recovery of the North American and global box offices and an anticipated two-year pipeline of high-profile film releases.

AMC last traded at $4.58 on the NYSE.


Information for this story was found via the sources and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

AMC, GameStop Renewed Rallies Leave Short-Sellers Scrambling

It appears that retail investors have once again renewed the rally in meme stock favourites,...

Thursday, May 27, 2021, 02:22:00 PM

Jim Chanos Plays The Arbitrage Between AMC And APE

Jim Chanos has made the news again for his comments on AMC Entertainment (NYSE: AMC,...

Wednesday, August 24, 2022, 04:00:24 PM

AMC Shares Jump on Top Gun Movie Buzz

Shares of AMC Entertainment Holdings, Inc. (NYSE: AMC) jumped US$2.20, or 18%, on May 27,...

Monday, May 30, 2022, 04:31:00 PM

AMC Entertainment Reports Preliminary Q4 2021 Financials: US$1.17 Billion In Revenue, Net Loss

AMC Entertainment Holdings, Inc. (NYSE: AMC) reported on Monday its preliminary results for Q4 2021,...

Tuesday, February 1, 2022, 10:44:00 AM

AMC Entertainment Abandons Plan to Issue More Stock Following Shareholder Feedback

Meme stock favorite AMC Entertainment (NYSE: AMC) has decided to pull the plug on a...

Wednesday, July 7, 2021, 07:44:34 AM