1/ As usual, I'll live journal earnings. Plenty of places to catch them - some spaces, some YT live. Enjoy whatever floats your boat and get informed. To listen for yourself see link. $amc #amc #amcparty #apesnotleaving
events.q4inc.com/attendee/77399…
events.q4inc.com/attendee/77399…
3/ 60 MILLION people attended $amc around the world in Q4 and average revenue per patron was over $19 a person which is about 25% HIGHER than per person before COVID AND higher than any other major theater
4/ Adam " $amc is on a gliding path to profitability"
5/ Spiderman released during Omicron yet was the third highest release ever. Adding Bond, Venom, etc... and the quarter was over $2B $amc #amc
6/ Adam: "we think the overall domestic box office could be nearly DOUBLE 2021 and that makes us at $amc bullish." Goes on to highlight risks (inflation, supply chain, labor, war.)
7/ Adam: We expect Q1 to be far above 2021 Q1, but for Q1 to be our smallest quarter then continued growth after that for 2022 (editor's note: I always expected Q1 to be smaller due to the timing of the movies on slate) $amc #amc
8/ CFO speaking now: First positive EBIDTA quarter in 2 years. Achieved in BOTH Europe AND the US. $amc #amc Also achieved positive operating cash generated (in other words having doors open was more profitable than closing them...my words there)
9/ As stated before - nearly $20 per person who attended. Apes do like their popcorn after all. $amc #amc
10/ Relative to pre-covid, $amc had a higher mix of evening and weekend shows (higher ticket prices). They're coming out of Covid STRONGER than they went in (my opinion)
11/ Case in point - food & bev spending is up over 35% over pre covid!! Again - apes like popcorn. (and drinks and candy haha)
12/ Online ticket revenue increased significantly as online sales increased. Screen advertising revenue also increased as did renting theaters for non-movie events.
13/ Ended the year with the most liquidity ever... about $1.8B ($1.5B of that in cash and equivalents). Meanwhile reduced deferred rent by $155M in the quarter. Plan to reduce deferred rents by another $150-$200m in '22
14/ As apes know - completed a large refinance and reduces interest expenses around $30M a year while moving out maturity dates (extends the time to pay back until 2029). Adds flexibility.
15/ As far as using capital, priorities are unchanged. Keep liquidity, strengthen the balance sheet, enhance guest experience, add initiatives that diversify and add revenue.
16/ Opened 3 new theaters and closed 5 in Q4. Total closures last 2 years = 83. Total new locations = 50 in that time. Both have improved profitability (rotating out poor performing properties, rotatin in high performing locations.) $amc #amc
17/ Adam back on: Speaking about innovation. In '22, '23 and beyond we expect to TRANSFORM our company beyond a "movie theater operator" (my emphasis)
18/ Listing innovations to transform business:
1- NFT's: describes success so far (some sold for as much as $17k). 4 NFT programs so far (including batman). More than 800k NFT's made eligible. "They are drivers of attendance" In '22 we will look to further monetize (example sell)
1- NFT's: describes success so far (some sold for as much as $17k). 4 NFT programs so far (including batman). More than 800k NFT's made eligible. "They are drivers of attendance" In '22 we will look to further monetize (example sell)
19/ innovation cont...
2- Crypto. Continue to explore how $amc can participate. Growing ability to take crypto as transaction. Continuing to exploring issuing own crypto but watching regulations. More to come.
2- Crypto. Continue to explore how $amc can participate. Growing ability to take crypto as transaction. Continuing to exploring issuing own crypto but watching regulations. More to come.
20/ innovation cont...
3- Variable pricing (think airlines and hotels...my interjection). Currently prices for Batman are actually higher than for other movies in same theater at same time. Using demand driven pricing.
3- Variable pricing (think airlines and hotels...my interjection). Currently prices for Batman are actually higher than for other movies in same theater at same time. Using demand driven pricing.
21/ innovation cont...
4- Popcorn: Multi B$ industry. On a peak day we sell 50 tons. We plan to make it available through delivery to home & plan to sell to-go packages. Later this year, selling fresh popcorn in mall locations. Working on getting into supermarkets/grocery stores
4- Popcorn: Multi B$ industry. On a peak day we sell 50 tons. We plan to make it available through delivery to home & plan to sell to-go packages. Later this year, selling fresh popcorn in mall locations. Working on getting into supermarkets/grocery stores
22/ innovation cont...
5- Additional theater locations will still be added. We have had opportunities to purchase some theaters at a mere 1-2x EBITDA. May purchase whole chains. We think we can grow attractively at 3-4x projected cash flows.
5- Additional theater locations will still be added. We have had opportunities to purchase some theaters at a mere 1-2x EBITDA. May purchase whole chains. We think we can grow attractively at 3-4x projected cash flows.
23/ innovation cont...
6- A branded credit card. One of the new hires (executives) has considerable experience here. Approximately 4 million shareholders and many more stubs members. Branded credit cards offer "spectacular profitability"
6- A branded credit card. One of the new hires (executives) has considerable experience here. Approximately 4 million shareholders and many more stubs members. Branded credit cards offer "spectacular profitability"
24/ innovation cont...
7- Recovery and agility. Setting AMC up for solid opportunities while keeping the fundamentals sound
7- Recovery and agility. Setting AMC up for solid opportunities while keeping the fundamentals sound
25/ Now speaking to shareholders (apes). More than 615k individuals have registered with AMC Investor Connect. More plans to attend screenings with investors. As best we can tell, we have about the same amount of shareholders (around 4M)
26/ if u exclude index funds - Individual investors would seem to own 90% of our shares. "Retail owns the Float". Heck yeah!! $amc #amc
27/ Legally cannot comment on nakeds/synthetics. "Retaining your support, keeping our word to you, managing this company smartly"
28/ Q&A time. Popcorn will start with uber eats deliveries. (editor's note: I'd like to see wide distribution in grocery stores) $amc #amc
29/ Updating on alternative content (eg concerts, WWE, UFC, NFL). Continuing to seek opportunities
30/ Speaking on plans to increase merchandise sales. "Our shareholder base and customer base are asking for more." $amc #amc
31/ People watching & analyzing this company should think hard what a strong management team can do with 1.8B in cash. Intriguing to diversify away from theater industry but capitalize on our knowledge on entertainment, selling tickets, running buildings, selling food & bev" $amc
32/ Clearly looking at strategic M&A beyond movies. I love it. $amc #amc
32/ "'22 is going to be a very good year for our company." Ends the call.
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