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AMC Entertainment spilled some preliminary Q4 results ahead of the official release date on Feb. 24 and the debt heavy theater chain announced a pact with some senior secured note holders offering flexibility to refinance its existing term loan credit agreement and extend maturities – giving it some more breathing room.
Revenues for the three months ended December 31 dipped to $1.29 billion from $1.3 billion from the year earlier. Adjusted losses narrowed to about $127.4 million from $135.6 million.
Adjusted ebidta (earnings before interest, taxes, depreciation and amortization, a kind of profit) was $134.1 million vs $164.8 million. Cash and cash equivalents were $428.5 million at year end, excluding restricted cash of $48.8 million.
AMC revenue for the full year rose by 4.6% and profit by 13%.
CEO Adam Aron called 2025 “another important step forward for both AMC and the theatrical exhibition industry. Albeit not the industry growth we anticipated, the box office improved modestly year-over-year, rising approximately 1.5%”. He cited a “relentless focus” on operating improvements, portfolio optimization, guest experience, marketing and loyalty programs, food and beverage variety and premium large format offerings.
This year is looking up with first quarter box office year-to-date is approximately 9% ahead of the same period last year “and we believe the highly anticipated film slate for the remainder of the year should drive very significant industry growth,” he said, flagging Spider-Man: Brand New Day, Avengers: Doomsday, Moana, Dune: Part Three, and The Odyssey, among others.
On the refinancing. specifically, the company said holders of its Muvico, LLC Senior Secured Notes due 2029 will, among other things, provide the Company with the flexibility to refinance its existing term loan credit agreement and the 12.75% Odeon Senior Secured Notes due 2027, with new debt that may be secured and guaranteed by the Company, and its Odeon and Muvico subsidiaries. Any such refinancing would be expected to extend the maturity of the refinanced debt and reduce the related interest expense.
“Thanks to the ongoing support of our lenders, we have enhanced our flexibility to streamline and simplify our capital structure, reduce our cost of capital, improve our liquidity and efficiently address upcoming debt maturities,” said AMC CEO Adam Aron. “We remain resolute in our ongoing pursuit of strengthening our balance sheet and this collaborative agreement with our supportive noteholders is yet another step to ensure that AMC is best positioned to capitalize on the industry’s anticipated recovery trajectory.”
In a note this morning B. Riley analyst Drew Crum said of the earnings and the lender agreement — “Taken together, we view this as a positive update, but only marginal relative to our expectations for AMC, as well as other industry participants. He’s maintaining a “neutral” rating on the shares.
AMC’s debt, accumulated pre-Covid and hard to get out from under afterwards, continues to weigh on the stock. Shares are trading sideways mid-morning at about $1.43.