INVESTOR RELATIONS: 

John Merriwether, 866-248-3872

InvestorRelations@amctheatres.com

MEDIA CONTACTS:

Ryan Noonan, (913) 213-2183

rnoonan@amctheatres.com

·

AMC set fourth quarter records for the three months ended December 31 period for all revenue categories: admissions, food and beverage and other.  Much of the growth in revenue is due in large part to the acquisitions of Odeon Cinemas Group (“Odeon”), Carmike Cinemas, Inc. (“Carmike”) and Nordic Cinema Group Holding AB (“Nordic”).

·

Total revenues increased 53.0% to $1,416.8 million compared to total revenues of $926.1 million for the quarter ended December 31, 2016. Total revenues in 2017 included approximately $438.5 million of revenues from our international theatres as compared to $114.1 million in the three-month period a year ago.

·

Admissions revenues increased 52.3% to $897.1 million compared to $588.8 million for the same period a year ago.

·

Food and beverage revenues increased 47.0% to $415.3 million, compared to $282.5 million for the quarter ended December 31, 2016.

·

Earnings before income taxes grew 13.7% to $14.1 million, compared to $12.4 million for the same quarter a year ago.

·

Net earnings decreased $305.4 million to a net loss of $276.4 million compared to net earnings of $29.0 million for the quarter ended December 31, 2016.  Included in the net loss for the quarter was approximately $310.0 million of tax expense in our U.S. markets related to the impact of the change in the U.S. enacted federal income tax rate from 35% to 21% and the impact of a full valuation allowance on our deferred income tax assets.

·

Diluted earnings per share (“diluted EPS”) decreased $2.43 to a loss of $2.14 per share compared to earnings of $0.29 per share for the same period a year ago.  Average diluted shares outstanding in the fourth quarter of 2017 increased approximately 28.2% compared to the fourth quarter last year as a result of the successful completion of an equity offering in February 2017, less the effect of 3.2 million shares repurchased during 2017. 

·

Total Adjusted EBITDA(1) increased 58.7% to $288.2 million compared to $181.6 million for the quarter ended December 31, 2016.  International Adjusted EBITDA for the fourth quarter grew $70.2 million to $98.8 million compared to $28.6 million a year ago.

·

AMC set annual records for the twelve months ended December 31 period for all revenue categories: admissions, food and beverage and other.

·

Total revenues increased 57.0% to $5,079.2 million compared to total revenues of $3,235.9 million for the year ended December 31, 2016.  Total revenues for 2017 included approximately $1,355.7 million of revenues from our international theatres as compared to $118.9 million in the period a year ago, due to the acquisitions of Odeon and Nordic.

·

Admissions revenues grew 57.6% to $3,229.5 million compared to $2,049.4 million for the year ended December 31, 2016.

·

Food and beverage revenues increased 51.9% to $1,548.4 million, compared to $1,019.1 million for the year ended December 31, 2016.

·

Loss before income taxes increased $482.8 million to $333.1 million, compared to earnings before income taxes of $149.7 million for the same quarter a year ago.

·

Net earnings decreased $598.9 million to a net loss of $487.2 million and diluted earnings per share decreased $4.93 per share to a loss of $3.80 per share compared to net earnings of $111.7 million and net earnings per share of $1.13 per share, respectively, for the year ended December 31, 2016. Included in the net loss for the year ended 2017 were $208.0 million in pre-tax impairment charges related to the NCM investment and approximately $310.0 million of tax expense related to the impact of the change in the U.S. enacted federal income tax rate from 35% to 21% and the impact of a full valuation allowance on our deferred income tax assets. 

·

Total Adjusted EBITDA(1) grew 36.6% to $822.5 million compared to $602.0 million for the year ended December 31, 2016.  International Adjusted EBITDA grew $184.1 million to $212.5 million compared to $28.4 million in the same period a year ago.

Quarter Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Revenues

 Admissions

$

897.1

$

588.8

$

3,229.5

$

2,049.4

 Food and beverage

415.3

282.5

1,548.4

1,019.1

 Other theatre

104.4

54.8

301.3

167.4

   Total revenues

1,416.8

926.1

5,079.2

3,235.9

Operating costs and expenses

 Film exhibition costs

440.1

305.1

1,604.3

1,089.5

 Food and beverage costs

69.5

40.2

252.1

142.2

 Operating expense

419.2

259.6

1,548.0

873.5

 Rent

203.5

136.2

794.4

505.5

 General and administrative:

   Merger, acquisition and transaction costs

5.8

32.8

63.0

47.9

   Other

20.0

31.8

133.4

90.7

 Depreciation and amortization

144.7

82.4

538.6

268.2

Impairment of long-lived assets

43.6

5.5

43.6

5.5

   Operating costs and expenses

1,346.4

893.6

4,977.4

3,023.0

   Operating income (loss)

70.4

32.5

101.8

212.9

   Other expense (income):

     Other expense (income)

0.6

(0.4)

(1.7)

(0.4)

     Interest expense:

       Corporate borrowings

59.9

36.3

231.6

110.7

       Capital and financing lease obligations

10.7

4.4

42.4

10.8

     Equity in (earnings) loss of non-consolidated entities

(13.9)

(19.6)

185.2

(47.7)

     Investment income

(1.0)

(0.6)

(22.6)

(10.2)

       Total other expense

56.3

20.1

434.9

63.2

Earnings (loss) before income taxes

14.1

12.4

(333.1)

149.7

Income tax provision (benefit)

290.5

(16.6)

154.1

38.0

Net Earnings (loss)

$

(276.4)

$

29.0

$

(487.2)

$

111.7

 Diluted earnings (loss) per share

$

(2.14)

$

0.29

$

(3.80)

$

1.13

Average shares outstanding diluted (in thousands)

129,265

100,839

128,246

98,872

As of

As of

December 31,

December 31,

2017

2016

Cash and equivalents

$

310.0

$

207.1

Corporate borrowings

4,235.3

3,760.9

Other long-term liabilities

903.8

706.5

Capital and financing lease obligations

651.4

675.4

Stockholders' equity

2,112.4

2,009.6

Total assets

9,805.9

8,641.8

Quarter Ended

Year Ended

December 31,

December 31,

Consolidated

2017

2016

2017

2016

Net cash provided by operating activities

$

329.6

$

220.4

$

558.7

$

431.7

Capital expenditures

$

(159.1)

$

(165.1)

$

(626.8)

$

(421.7)

Screen additions

32

 5

96

17

Screen acquisitions

16

5,175

736

5,201

Screen dispositions

 1

 —

258

38

Construction openings (closures), net

76

83

37

(48)

Average screens

10,778

6,516

10,675

5,592

Number of screens operated

11,169

10,558

11,169

10,558

Number of theatres operated

1,014

906

1,014

906

Screens per theatre

11.0

11.7

11.0

11.7

Attendance (in thousands)

92,322

62,009

346,763

215,145

Quarter Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Other operating data:

Attendance (patrons, in thousands):

U.S. markets

61,933

52,894

240,974

205,611

International markets

30,389

9,115

105,789

9,534

Consolidated

92,322

62,009

346,763

215,145

Average ticket price (in dollars):

U.S. markets

$

9.92

$

9.74

$

9.67

$

9.59

International markets

$

9.29

$

8.08

$

8.49

$

8.04

Consolidated

$

9.72

$

9.50

$

9.31

$

9.53

Food and beverage revenues per patron (in dollars):

U.S. markets

$

5.09

$

4.84

$

5.06

$

4.82

International markets

$

3.29

$

2.93

$

3.10

$

2.94

Consolidated

$

4.50

$

4.56

$

4.47

$

4.74

Average Screen Count (month end average):

U.S. markets

8,087

5,611

8,084

5,350

International markets

2,691

905

2,591

242

Consolidated

10,778

6,516

10,675

5,592

Quarter Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Revenues

U.S. markets

$

978.3

$

812.0

$

3,723.5

$

3,117.0

International markets

438.5

114.1

1,355.7

118.9

Consolidated

$

1,416.8

$

926.1

$

5,079.2

$

3,235.9

Adjusted EBITDA

U.S. markets

$

189.4

$

153.0

$

610.0

$

573.6

International markets

98.8

28.6

212.5

28.4

Consolidated

$

288.2

$

181.6

$

822.5

$

602.0

Capital Expenditures

U.S. markets

$

127.1

$

156.1

$

543.7

$

412.7

International markets

32.0

9.0

83.1

9.0

Consolidated

$

159.1

$

165.1

$

626.8

$

421.7

Quarter Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Net earnings (loss)

$

(276.4)

$

29.0

$

(487.2)

$

111.7

Plus:

Income tax provision (benefit)

290.5

(16.6)

154.1

38.0

Interest expense

70.6

40.7

274.0

121.5

Depreciation and amortization

144.7

82.4

538.6

268.2

Impairment of long-lived assets

43.6

5.5

43.6

5.5

Certain operating expenses (2)

8.1

7.2

20.6

20.2

Equity in (earnings) loss of non-consolidated entities (3)

(13.9)

(19.6)

185.2

(47.7)

Cash distributions from non-consolidated entities (4)

12.3

18.4

45.4

40.1

Attributable EBITDA (5)

1.6

 —

3.4

 —

Investment expense (income)

(1.0)

(0.6)

(22.6)

(10.2)

Other expense (income) (6)

0.5

0.1

(1.3)

 —

General and administrative expense—unallocated:

Merger, acquisition and transaction costs (7)

5.8

32.8

63.0

47.9

Stock-based compensation expense (8)

1.8

2.3

5.7

6.8

Adjusted EBITDA(1)

$

288.2

$

181.6

$

822.5

$

602.0

1)

We present Adjusted EBITDA as a supplemental measure of our performance.  We define Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in international markets and any cash distributions of earnings from other equity method investees. These further adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.  Adjusted EBITDA is a non-U.S. GAAP financial measure commonly used in our industry and should not be construed as an alternative to net earnings (loss) as an indicator of operating performance (as determined in accordance with U.S. GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We have included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our performance and estimate our value.

·

does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;

·

does not reflect changes in, or cash requirements for, our working capital needs;

·

does not reflect the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt;

·

excludes income tax payments that represent a reduction in cash available to us;

·

does not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; and

·

does not reflect the impact of divestitures that may be required in connection with recently completed acquisitions.

2)

Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens including the related accretion of interest, non-cash deferred digital equipment rent expense, and disposition of assets and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature, include components of interest cost for the time value of money or are non-operating in nature.

3)

Equity in (earnings) loss of non-consolidated entities includes an other-than-temporary impairment charge of $208.0 million to reduce the carrying value of our investment in NCM to Level 1 fair value during the year ended December 31, 2017. An other-than-temporary impairment charge of $204.5 million was recorded on our units and shares at the publicly quoted per share price on June 30, 2017, of $7.42 and an other-than-temporary impairment charge of $3.5 million was recorded on our units and shares at the publicly quoted per share price on December 31, 2017 of $6.86, based on our determination that the decline in the price per share during the respective quarters was other than temporary. Equity in (earnings) loss of non-consolidated entities includes loss on the sale of a portion of our investment in NCM of $22.2 million during the year ended December 31, 2017.

4)

Includes U.S. non-theatre distributions from equity method investments and International non-theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to its operations.

5)

Attributable EBITDA includes the EBITDA from minority equity investments in theatre operators in certain international markets. See below for a reconciliation of the Company’s equity earnings of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and our gift card and package ticket program. As these investments relate only to our Nordic acquisition, the second quarter of 2017 represents the first time the Company has made this adjustment and does not impact prior historical presentations of Adjusted EBITDA.

Quarter Ended

Year Ended

December 31,

December 31,

2017

2016

2017

2016

Equity in (earnings) loss of non-consolidated entities

$

(13.9)

$

 —

$

185.2

$

 —

Less:

Equity in (earnings) loss of non-consolidated entities excluding international theatre JV's

(12.6)

 —

187.0

 —

Equity in earnings of International theatre JV's

1.3

 —

1.8

 —

Depreciation and amortization

0.3

 —

1.6

 —

Attributable EBITDA

$

1.6

$

 —

$

3.4

$

 —

6)

Other income for the year ended December 31, 2017 includes $3.0 million financing related foreign currency transaction gains, partially offset by $1.3 million in fees relating to third-party fees related to the Third Amendment to our Senior Secured Credit Agreement, and a $0.4 million loss on the redemption of the Bridge Loan Facility.

7)

Merger, acquisition and transition costs are excluded as they are non-operating in nature.

8)

Non-cash or non-recurring expense included in General and Administrative: Other.