AMC Entertainment announced its financial results for the second quarter of 2024. The company reported total revenues of $1.03 billion, representing a 23.5% decrease from $1.35 billion in Q2 2023. Net loss for the quarter was $32.8 million, compared to net earnings of $8.6 million in the same quarter of the previous year. This translated to a net loss per diluted share of $(0.10), down from earnings per diluted share of $0.06 in Q2 2023. Adjusted EBITDA also saw a drop, coming in at $29.4 million compared to $182.5 million in Q2 2023. The decline in revenue and profitability underscores the difficulties faced by AMC during this period. However, the final weeks of the quarter saw an increase in earnings, taking AMC to achieve an all-time high adjusted EBITDA in June.
Adam Aron, Chairman and CEO of AMC Entertainment, commented: “As expected, the second quarter started slowly with the box office adversely impacted by the 2023 Hollywood writers and actors strikes. However, the quarter finished with incredible strength powered by the success of Disney’s ‘Inside Out 2,’ which is now the highest grossing animated movie of all time. AMC saw a remarkable contrast between the early quarter with a dearth of movie releases and the end of the quarter with a record setting movie delighting audiences in our theaters. That difference between AMC’s early quarter performance and our late quarter performance was as if we were two totally different companies, surrounded by two completely different industry dynamics. Indeed, in June of 2024, AMC achieved our highest-ever June adjusted EBITDA in our company’s entire 104-year history.”
In terms of cash flow and liquidity, AMC reported net cash used in operating activities of $34.6 million, an increase from $13.4 million used in Q2 2023. As of June 30, 2024, the company had $770.3 million in cash and cash equivalents.
Total attendance for the quarter was 50 million, a 24.6% decrease from 66.4 million in Q2 2023. The U.S. markets saw attendance drop to 36.5 million, down 27.0% from 50 million, while international markets experienced a 17.3% decline, with attendance falling to 13.5 million from 16.3 million in the previous year.
“On the heels of strong Adjusted EBITDA in June, the momentum has continued to impress in July, with box office hits ‘Despicable Me 4’ and ‘Twisters’ followed by the phenomenal opening of ‘Deadpool & Wolverine’. Thanks to the success of ‘Deadpool & Wolverine’, just a week ago AMC recorded our highest-ever opening weekend attendance and highest-ever opening weekend admissions revenue for a rated-R movie,” continued Aron. “With a long list of blockbuster movie titles opening in theaters during the remainder of the year and into 2025 and 2026, the industry-wide box office now appears to us to be poised for sustained growth. Looking ahead, we believe that bodes ever so well for the increasing cash generation potential from AMC’s movie theaters both at home and abroad,” he added.
Finally, Aron concluded: “And all this comes at the same time as AMC completed several transformative capital market transactions that took up to $2.45 billion of our debt previously due in 2026 and extended the maturities to 2029 and 2030. We are grateful that AMC’s lenders just gave our company a strong vote of confidence as to their view of the likelihood for our long-term success. The power of an extension of our financial runway for many years into the future, combined with what we believe is a multi-year slate of blockbuster movie releases, sets the stage for continued recovery at AMC. Today, we are more confident than ever in our ability to thrive, as both our company and our industry continue to rebound.”