AMC Entertainment Holdings, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>AMC Entertainment Holdings, Inc. has filed its 2023 10-K report detailing its financial performance and operational status.</b>

AI Summary

AMC ENTERTAINMENT HOLDINGS, INC. (AMC) filed a Annual Report (10-K) with the SEC on February 28, 2024. AMC Entertainment Holdings, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing details financial performance and operational aspects of the company. Key financial metrics and disclosures are provided for the reporting period. The report includes information on various financial instruments and agreements. It covers corporate governance and executive compensation details.

Why It Matters

For investors and stakeholders tracking AMC ENTERTAINMENT HOLDINGS, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of AMC's financial health and strategic positioning for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's current standing and future prospects in the evolving entertainment industry.

Risk Assessment

Risk Level: medium — AMC ENTERTAINMENT HOLDINGS, INC. shows moderate risk based on this filing. The company operates in the highly competitive and cyclical movie theater industry, which is subject to changing consumer preferences and technological advancements, as evidenced by the ongoing need for adaptation and investment in new technologies.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess AMC's ability to manage its debt and navigate industry challenges.

Financial Highlights

revenue

13.29

total Assets

72458705

total Debt

260574392

net Income

9.29

eps

2.37

cash Position

51683892

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2.37 — EPS (Earnings Per Share for the fiscal year)
• 9.29 — Net Income (Net income for the fiscal year)
• 13.29 — Revenue (Revenue for the fiscal year)
• 72458705 — Total Assets (Total assets as of fiscal year end)
• 260574392 — Total Debt (Total debt as of fiscal year end)
• 51683892 — Cash (Cash and cash equivalents as of fiscal year end)

Key Players & Entities

• AMC ENTERTAINMENT HOLDINGS, INC. (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240228 (date) — Filed as of date
• LEAWOOD, KS (location) — Business address city and state
• Hycroft Mining Holding Corporation (company) — Related entity in financial disclosures
• Antara Capital LP (company) — Related entity in financial disclosures
• Mudrick Capital Management LP (company) — Related entity in financial disclosures
• Dalian Wanda Group Ltd (company) — Related entity in financial disclosures

FAQ

Risk Factors

• Competition [high — market]: The company faces intense competition from other movie exhibitors and alternative entertainment options, which could adversely affect its market share and profitability.
• Debt Obligations [high — financial]: AMC has significant debt obligations, and its ability to service this debt could be impacted by its financial performance and market conditions.
• Content Availability [medium — operational]: Reliance on the availability and appeal of motion pictures from distributors is critical; any disruption in content supply could harm the business.
• Compliance with Laws and Regulations [medium — regulatory]: The company must comply with various laws and regulations, and failure to do so could result in penalties or operational disruptions.

Key Financial Figures

• $4.40 — shares at a closing price per share of $4.40 and 995,406,413 AMC Preferred Equity Un
• $1.74 — ty Units at a closing price per unit of $1.74). Shares of Class A common stock outst
• $884.3 million — h and cash equivalents of approximately $884.3 million. Additionally, we continued to lower
• $100.0 million — t to a minimum liquidity requirement of $100.0 million as a condition to the financial covenan
• $75.1 million — nits for an aggregate purchase price of $75.1 million and (ii) simultaneously purchase from A
• $193.7 million — Second Lien Notes due 2026. We recorded $193.7 million to stockholders' deficit as a result of
• $1.4 million — as a result of the transaction. We paid $1.4 million of accrued interest in cash upon exchan
• $790.0 million — raised gross proceeds of approximately $790.0 million and paid fees to sales agents and incur
• $19.8 million — d-party issuance costs of approximately $19.8 million and $9.9 million, respectively, through
• $9.9 m — osts of approximately $19.8 million and $9.9 million, respectively, through its at-the
• $12.6 million — referred Equity Units. The Company paid $12.6 million of other third-party issuance costs dur

Filing Documents

• amc-20231231x10k.htm (10-K) — 5929KB
• amc-20231231xex3d2.htm (EX-3.2) — 118KB
• amc-20231231xex3d2a.htm (EX-3.2(A)) — 119KB
• amc-20231231xex21.htm (EX-21) — 39KB
• amc-20231231xex23d1.htm (EX-23.1) — 8KB
• amc-20231231xex31d1.htm (EX-31.1) — 13KB
• amc-20231231xex31d2.htm (EX-31.2) — 13KB
• amc-20231231xex32d1.htm (EX-32.1) — 7KB
• amc-20231231xex97d1.htm (EX-97.1) — 67KB
• amc-20231231x10k007.jpg (GRAPHIC) — 32KB
• 0001411579-24-000021.txt (&nbsp;) — 25941KB
• amc-20231231.xsd (EX-101.SCH) — 151KB
• amc-20231231_cal.xml (EX-101.CAL) — 144KB
• amc-20231231_def.xml (EX-101.DEF) — 851KB
• amc-20231231_lab.xml (EX-101.LAB) — 1225KB
• amc-20231231_pre.xml (EX-101.PRE) — 1119KB
• amc-20231231x10k_htm.xml (XML) — 5378KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 19 Item 1B. Unresolved Staff Comments 34 Item 1C. Cybersecurity 34 Item 2.

Properties

Properties 36 Item 3.

Legal Proceedings

Legal Proceedings 36 Item 4. Mine Safety Disclosures 36 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 37 Item 6. [Reserved] 40 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 65 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 67 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 134 Item 9A.

Controls and Procedures

Controls and Procedures 134 Item 9B. Other Information 134 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 136 PART III Item 10. Directors, Executive Officers and Corporate Governance 137 Item 11.

Executive Compensation

Executive Compensation 137 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 137 Item 13. Certain Relationships and Related Transactions, and Director Independence 137 Item 14. Principal Accountant Fees and Services 137 PART IV Item 15. Exhibits, Financial Statement Schedules 138 Item 16 . Form 10-K Summary 147 1 Table of Contents

Forward-Looking Statements

Forward-Looking Statements In addition to historical information, this Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "may," "will," "forecast," "estimate," "project," "intend," "plan," "expect," "should," "believe" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and speak only as of the date on which it is made. Examples of forward-looking statements include statements we make regarding future attendance levels, operating revenues and our liquidity. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including those discussed in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the risks and uncertainties relating to the sufficiency of our existing cash and cash equivalents and available borrowing capacity, including following maturity of the Senior Secured Revolving Credit Facility (as defined in Note 8—Corporate Borrowings and Finance Lease Liabilities in the Notes to the Consolidated Financial Statements under Part II, Item 8 thereof), to fund operations, and satisfy obligations including cash outflows for deferred rent and planned ca

Business

Item 1. Business . General Development of Business AMC Entertainment Holdings, Inc. ("Holdings"), through its direct and indirect subsidiaries, including American Multi-Cinema, Inc. and its subsidiaries, (collectively with Holdings, unless the context otherwise requires, the "Company" or "AMC"), is principally involved in the theatrical exhibition business and owns, operates or has interests in theatres primarily located in the United States and Europe. Our business was founded in Kansas City, Missouri in 1920. Holdings was incorporated under the laws of the state of Delaware on June 6, 2007. We maintain our principal executive offices at One AMC Way, 11500 Ash Street, Leawood, Kansas 66211. Liquidity At December 31, 2023, we had cash and cash equivalents of approximately $884.3 million. Additionally, we continued to lower our future interest expense through purchases of debt below par value and debt exchanges for equity and enhanced liquidity through equity issuances. See Note 8 — Corporate Borrowings and Finance Lease Liabilities, Note 9 — Stockholders' Deficit, and Note 16—Subsequent Events in the Notes to the Consolidated Financial Statements under Part II, Item 8 thereof, for further information. We believe our existing cash and cash equivalents, together with cash generated from operations, will be sufficient to fund our operations and satisfy our obligations currently and through the next twelve months. We are subject to a minimum liquidity requirement of $100.0 million as a condition to the financial covenant suspension period under the Credit Agreement (as defined in Note 8 — Corporate Borrowings and Finance Lease Liabilities in the Notes to the Consolidated Financial Statements under Part II, Item 8 thereof). We believe we will comply with the minimum liquidity requirement through the current maturity date of the Senior Secured Revolving Credit Facility on April 22, 2024. We currently do not expect to extend such maturity or replace the Senior S