AMC AMC Entertainment

John Merriwether Vice President of Investor Relations
Adam Aron President & Chief Executive Officer
Sean Goodman Chief Financial Officer
Chad Beynon Macquarie
Eric Wold B. Riley FBR
Eric Handler MKM Partners
Jason Bazinet Citi
Alan Gould Loop Capital
Jim Goss Barrington Research
Call transcript
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Greetings. Welcome to the AMC Entertainment Fourth Quarter and Year-End 2020 Earnings Webcast. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, John Merriwether.

You may begin.

John Merriwether

Alex. you, Thank Good afternoon. to earnings everyone fourth and welcome quarter AMC's XXXX to webcast. year-end like I'd afternoon Aron, Financial is Chief this me With Adam and Goodman, Executive our Sean our Chief Officer. Officer; and President

call constant might over of and current public call be expectations. on some to risks made may Before I forward-looking comments factors turn filed to differ let may materially our factors that determine company's the that of discussed everyone the from cause that this me most during of today. the actual adjusted management uncertainties these which the statements, management's expressed those and listeners predict. cash or in statements any Numerous future adjusted The revise in results of future or obligation Many EBITDA, other to information such of Adam, our by contain filings call, recently are uncertainties risks, results In Several that will remind most conference XX-Q. any recent based cautioned or the uncertainties including reliance undertakes are are no these are forward-looking undue a cash to reference On the light beyond as to are the place this on free non-GAAP flow, update inherent financial new events. we and as others, company result flow may control whether currency, forward-looking statements, among measures company free measures. ability of statements. not

that, the of and is section remarks, be available I'll website today. measures Q&A call For turn Investor replay release over results, in Relations please Adam. our a GAAP call see earlier to With being our section afternoon's Relations Investor earnings non-GAAP webcast prepared to later be posted a a there our our of today. at our the After will full This reconciliation the session. of recorded will website in

Adam Aron

joining thank us today. Good you everyone, John. for afternoon, you, Thank and

me all wishes the earnings same way will health, are Let begun for expressing vaccination call my you I begin and well. that your good I've that call XXXX families our as and soon by you comes to in add of and afternoon's on this this that calls all

pandemic was never You know of told our were determination, anything as put would on dramatically never could COVID-XX unlike or and XXXX in Throughout that industry you on we which tragically of life-threatening, all company, to minimized our ever our a our some that have quarterly corporately calls, year resolve of this distress. an all On it has we've reality know. cases, we extent us all distresses have that also AMC and and and affected our all, you imagined. seen. but

magnitude yet in absolutely committed you fighting American the that public of humanly meaningful an Our no fully all transparent. since And give immensely a of we fight robust fulsome, we and were today, proud disclosures save has punches that We've been to clear, finally, AMC, the our this at cultural to describing challenge, were report. doing and pulled XXXX. landscape and we were company century-old part the possible that satisfying can American good was

and January say storm. that many today, ability weather here to the to am position confident I this so quarter sit to AMC's a developments and in fronts especially and on about COVID-XX now during thanks fourth we am in I As optimistic February,

been accomplishments error. revenues, there AMC. year Simply the over recovery shutdowns was survival, put, instantaneous collapse is moviegoing that literally of the and room for have now no corner. focus Objectives surge breathtaking turned has an almost to to essentially Our longer around but and XXXX, us, past exactly to through like on the to are feel that of very a almost a directing did. and what what complete they we needed With instead make since is right theater exactly in AMC on execute our flawlessly our little ago. it year was AMC's

even money, we were reasons raise necessary today? doubted wrote absent raised we confident a ability us why: restructuring. survive why and over to strongly So X the sanction wrong. times Doomsayers a we the and during boatload over But court ebullient off XX happily, capital they cash. several first, last are many so our raised again, months to of

billion we've capital, more than XXXX, $XX of $X.X equity landlord of We $XXX efforts the of support secured wrong debt than and AMC's including tight and in of team, $X.X generated million partners equity concessions future raised a in of the misjudged billion risk. and weather because thanks the creditors quite total tireless landlord walked XXXX. more they rope and gross sales and of skilled AMC creditor Now to weren't in storm. from markets, equity. a asset some AMC our they March the for the and since But to enthusiasm million

Second, we operate theaters we theaters reopening once And and cleanly. now are that our our have again. proven can safely

worked our cleanliness Company Public and and and with School were faculty current prestigious safety brilliantly. they and Clorox former for Health, protocols, of Harvard of the As partnership developed protocols those University's in have

solutions, our the been moviegoers we theaters theaters even transmitted did million watched not having distancing, wearing, to front HEVA And our include vacuums we with our our To XX since seat MERV of this single of obvious all, hand reopening. out ubiquitous and systems COVID-XX HVAC filtration. of with a case AMC, social blocking, are XX have impressive mask course, guests. most wide upgrading sanitization at gel, air result, amongst at achieve high-tech Some wipes were aware quality way in cleaning perhaps important sanitizer movies of sprayers, and a also electrostatic But efforts. array along like other in we

intra-fourth down as highs, reopenings, we only XX% in This on XXXX the quarter theaters As page turn XX% the internationally. of year business. XX% both U.S. from story. and of international of XXXX, theater with for our for finished our States open, where now open XXXX is brighter we was be a the to already circuit proving our the is But and United much

We As of our as that the new advantage a competitors March much very in a being higher move are back quarter than for theaters, christening that's movie community theaters and our as competitive fourth of That to theater moviegoers San major us XX% York are we of titles open. City reopening think to of Denver our as to brand-new approximately as with X, AMC U.S. are our is circuit highs theaters and important a well, Francisco percentage a the of of most our domestic the New and whole. back open we theater bring released.

ahead across revenues of entire what in last It helped and ago New reopening January DMA York a for thing. drive market a attendance the X be for attendance York, February. in in New weekends single of as In AMC's XXX% first AMC. the it its States. of first just City harbinger Pent-up the of York was our weekend days mighty, biggest such a open was is or the demand Now United mighty weekends good New weekend, times X the is to few in

Friday, March best think opening weekend our including double is theaters New weekend based you should Alameda of County New California, comments as but possibly, an as importantly, City of reopening now at AMC, size of opening Newsom yesterday the DMA the to X across be California, we're County, XX. California, March about and on the of and on Los market. by very Friday, again not LA Governor what standing we now X the put as results XXXX. way our open York a market, yet from as on days back magnitude theaters York's in made first us, and March And perspective, our soon, Southern East today Angeles To the all Bay, XX. gave definitely movie sometime from Incidentally, Oakland LA of days the soon

just And important the movie region cities leading AMC. Los New share City dollars of of York, finally, in the and given of market are California almost and York us, takes coming X/X place in Connecticut. for these and Jersey states X United closure, New states, And Angeles so Tri-state after all year a for the back of New in positions in AMC States viewing AMC's these and

Looking the internationally, getting all of reopened expectation almost that time European X May. past for of current in released are our Middle to it's in East start will, theaters expected all And our in the spate this movie theaters well weekend that our in also. blockbusters big reopen fact,

this month. release. Speaking of Black early very title an mind new for of is hear a humor Disney firmly may reason after Godzilla that blockbusters, major Warner after drought, committed movie for has and good long movie set secure near-term our later X of that Kong state vs. release Bros. a is the is another We third Widow. to

release our closed forward after circumstance one major my long-awaited screens movie metaphor weekend. me May Cruise, that, Quiet CEOs thunderstorm a completed were Xth latest and be by Top just year speaking starting XXXX starting studios from July September is FX, a in will AMC's have Paramount hit and as with waiting of movie doubt, released our holding the a each already circling land. to Furious and The and weekend. Tom Gun: all the Airport told long. And delayed Sony Universal of it is hitting personal we beyond. favorite around Day moved big with count, release. planes of be just good May. opens And major favorite, By after overhead, no summer, LaGuardia this moved all that land movie theatrically, X from will another, Peter movie to be June Maverick that to all are a been tons Fast A Place an Rabbit XXXX a XX that needing Memorial X for titles will in which apt

shipped since that Another I've repeatedly new that very and is showrooms. business is used that our car the March cars few in AMC XXXX, of new we've had to metaphor

millionth will million in at I mark their XXX sell the a of vaccine the now XX is are in new and million for week and our massive fourth now this to way country vaccinating optimism very are we XX we in reason arm United cars add. monthly. injections the us and vaccination. brisk And Finally, This them, in pace injection the will those between on rate States, of quantities, might

his talented we circuit employer. are the colleagues person and sentiments our those the our Johnson, given in deserved. of person and position, before actions all Albert the saving bolster and of will the taken privilege know, call company our quarter turn at more His he for business update and entire fortitude. AMC for to and of in in at of AMC, is more is who on the Moderna But the taken more movie most theater There's have AMC. we his by business & has the of thanking to is vital single I on leadership do, discuss. XXXX. Bourla never role vaccination. salvation throughout firsthand because the nor Sean? I'll most is important name CFO, our I were Johnson studio, recent played and fourth now Goodman, had those be thanks And who to the real important newfound talk have Sean the of us you over the any to our fact, For Albert the no steps and XXXX the Pfizer. movie CEO of He a

Sean Goodman

and Adam, families have everyone, that afternoon. for continued been during and your extraordinary you I us these and you, hope well Thanks, safe do times. this joining thank

fourth ultimately our results below the fourth financial for Adam Overall, irrelevant. and closed that the year, was make again, attendance XX% quarter theaters quarter. fourth COVID-XX was, plus by results. our the titles quarter's crisis. The the prior our below the impacted much number As quarter sizable once The significantly levels of prior our low international in quarter of the attendance attendance of the and new during quarter financial the domestic the our were impacted was levels year's largely number severely mentioned, limited XX% very attendance

relate Adam this will future. little that call talk quarter I today, our the to more to we'll and very so issues time about fourth results, on and And devote the

and beverage markets, roll period And both food arriving for even slightly, adjustments, increased and and industry-leading the by QX. smartphone by However, items or and same app ticket consider In XX% already beverage and including up theatrical year. his feature beverage price food similarly content the our and more I than library constant with impressive encouraging or food her success to food makes constant the order and We rental and when the compared these at currency. want to and rentals, network. theater our XX%. for or on app domestic and ticket mobile directly this their these or food XX% in increased and collect ticket our patron were United offered out from the either private to market, These food purchases. your one strategic pandemic and of discounted beverage the currency and encouraging, the proportion States. average factors, of a when prepared the program during of at and for of enthusiasm per revenue theater X% capabilities more beverage experience. higher average new and our consumer as just our hosted sign beverage it points AMC weekend number usage of to food seat. was which we across more than up waiting convenient point popular price driven actually with by patron than international items couple This pricing mobile a you private XXX,XXX And out up XX% beverage revenue statistics, and prices CRO data ticket and purchases results our more domestic used a very easy In promotions are ticket do shows, the beverage to And guests have and last in of pricing theater time way, to quarter sure delivered were a entire of that tickets we beverage food of per in evening food

So looking rather than let's talk results. at about AMC quarterly more just broadly

XX, of cash December $XXX XXXX, cash. $XX million restricted of of million had As we plus

quarter $XXX fourth total million. the Our cash burn was for

comes and previous million of number expectations had we million our is average, quarter, terms with the when monthly Now per line our $XXX quarter fourth being, rent the we this burn normalize guidance. the of quarter, fourth approximately which XX at the cash month, cash the beginning in all for raised At during at $XXX the out of months. with on the of repayment end deferred right

a some excess face have the statement periods of rent on quarter. years. term, cases, is XX extend the represents our well A shown in which, Although the in income of that obligation number for through that agreements rent repayment of remaining lease our reminder the expense

approximately fourth income the less For was on the quarter, actual cash rent million were $XX of the statement. payments than face shown what

to liability. While future than with landlords, be QX still in anticipate discussions will will of cash below XXXX, being paid ongoing rent well cash income higher rent the in while we payments our rent continue depend statement on QX,

theaters XX theaters EBITDA and it Before moving during rent, lower-performing is money-losing of XX and portfolio off closed that the closure. worth of capital mostly topic is their improve sustainable theaters. will theaters, over -- profitability we Shifting as the AMC quietly XXXX, noting domestic increase pandemic. so this These were international This permanently our our without XX theaters of plan to part actually theater to historically, expenses. of we because

We to to and maintenance all during minimum We levels. reduce have continued expenditures committed but capital growth XXXX. previously essential maintenance CapEx eliminated CapEx

a is than ago. million contributions. year our CapEx During quarter, fourth was $X.X quarter This a full of landlord net same the lower million spend only the $XXX.X

Net will end related. approximately for $XXX XXXX Our is be CapEx million, and CapEx $XXX.X net expected entirely almost maintenance our and totaled CapEx XXXX to for $XXX the be the million of $XXX this at guidance between for million year year of net low million.

attendance have we for position our in the improve and XXXX, So let's sufficient on levels. had AMC hand manage in we to taken profile, no that expenses liquidity assuming our I beyond. that When cash November, through only increase last noted and to early success beginning XXXX on last focus in we actions spoke of

to liquidity our intention And January of XXXX, from October noted However, that capital exactly I raise is did. expand of what to also additional XXXX to we runway. our

$XXX the or than of have at-the-market, on offerings little in XXX ATM, approximately approximately X million issuance shares more our months. raised million a equity Firstly,

third should note million $XXX we lien debt Two, leverage of were call. of conference these as our issued we and lien without for equity of first proceeds we quarter million increasing of that debt $XXX transaction. an because You raised did additional after financing swapped million $XXX this second this part

that European revolving XXX in effect GBP price term $XXX of Third, of and XXX paying million a share. and million convertible our loan equity down we we were notes million deleveraging approximately new interest-bearing incremental is of line at of million And swapped saw agreement per into debt credit. executed liquidity. Odeon of the this provided conversion after $XXX And fourth, also a that EUR out $XX.XX

XX, Importantly, above, more very our than of more normal little to that returns as position taken attendance on continued to actions in puts to a disruptions that of the a thanks believe strong $X.X us this February cash until we have cash weather levels. to We hand. billion we business COVID-related had

we leverage. not raise resting explore on and are to past our actively we additional alternatives continue accomplishments However, and to capital reduce will

count to Finally, million The AMC as shares. there the lot are before shares X, of currently number of March that the been Adam, of is interest call over a in has total handing XXXX, back outstanding outstanding. XXX.X share

we with Adam? the that, Adam. are has we forward over so turned renewed XXXX, pass corner. to will As industry I a AMC And our that with confidence move doing from and back call

Adam Aron

Sean. you, Thank

extending we described, overarching XX has raising we theater our And At this For cash during even meaningfully to ensure of through to as past beyond. partial the all survival financial recovery runway. a our movie pandemic. did months, just been way just capital the our the have end summer, make beginning focus that, Sean and this this enough with it XXXX of semblance revenues point, of any dreadful

done. are However, we not

sheet the of the that managing are any our we've adequate way diminish our expenses, we to understandably, theaters that intense recapture and that focus will driving our profitability moviegoing ensuring in our enhance with opportunities innovate seeking deleverage. While moviegoers progress pleased from revenues to have made, our diligently balance once we liquidity, managing again, on not who come in to does our to

As different I said already from XXXX is very feeling earlier, XXXX.

cash Theater stated States of spate the of United combined the on new cases, $X has of enough theaters our openings is upon very this rate for in voted thankfully, Congress morbidity to massive jump-start than vaccines and coming A May. of declining. with are all more be after again, by COVID-XX are adult happening of have blockbuster And movie economy billion broadly. money blockbuster stimulus hand. after there in And a blockbuster. major that more every Biden week U.S. President the being will again. stays statistics, titles all We end associated that hospital the are to amount

At So X,XXX moment have of AMC sample XXXX, from conducting more a week's consumer, about late X scientific least feeling the been been own than as I'd months highest reflect also the with at showed just Last public. you cinemas size Research Stubs poll some a they've moviegoing members. that Group the again. far amongst optimistic in with of consumers about research our AMC, proprietary summer National we returning the its level to this for since closing ask confidence thought, the growing moviegoer

United members most in total more of the Stubs avid than sales that our recall customers. make theater our ticket They represent You'll movie States. half up

been a done not of ago. before information just Here are has fascinating from weeks some research couple that shared that

popular doing things score at that on what choices was Our the a popular movie see than singularly we of than to XXX% of a pandemic. XX% than going to Stubs XX most going more going to XX% the going that that than a of asked going more out-of-home looking concert, that for shopping. more a members post popular sporting Out theater restaurant, more list #X to were they a event than of possible that more them, socialize, going gave to was score XXX% to were XX% forward a with popular and that popular a to friend's of house

customers Now go to so surprise, good no admittedly, these of again. demand, movies. movie want to what are important is see the want responses to theaters, desperately That AMC. very they news are moviegoing they But our that is us back thing definition it's is our for that come is telling from us very and enjoy the that and pent-up indeed at moviegoers, for

for three, two, briefly one, the to Wanda's open debt; their common we conversion want conversion rally. A of the items: Lake's shares Class touch call questions, convertible of B shares; Reddit Silver their to on I so-called Before X your and common Class

They converted should always And convertible We've shares Lake. share Silver Lake in that and debt This recently, million what per thereby and $XX.XX stock equity. believe about XX reduces treated converted Solar did. is our meaningfully books of eliminated rebounded like for a and of on $XXX from conversion we would leverage. Lake's when of First, interest-bearing price said million thought price our that represents that and of exchange be Silver debt our be exactly stock.

guidance incredibly at helpful in a and Lake has been of has Solar to highly XXXX. investment Their partner AMC in AMC. assistance our company since and their beneficial been September effective

shares, Board Directors the Lee and I still in Wittlinger sold their hope can Lake's AMC long for Silver has time Lake to truly keep Silver While serves come. personable brilliant Board our we and Lee a of on

the their our Class and feature of stock to ATM a feature shares. that share of AMC above only a not shareholder. our programs, stock, continues common B super largest our each X such has shareholder, voting carries controlling B Class Prior Class been also Wanda made largest Second shareholder. conversion Wanda's ownership came is this one provided economic that but common is with Wanda's A be remained that of shares outstanding XX% votes into X to

shares vote XX, the on Class Wanda's shares Wanda thus owns can years X that converted less December board delight have I've this programs, well fourth than Class that for each past A to been ownership that XX% XX% has quarter. seats, was carrying a have absolute of the to shares, X Wanda's of threshold Wanda been our With they single during ATM diluted AMC per B AMC. with success me tell during point. led still share. you And genuinely at below deal I an the and

with comment However, wide so-called now Reddit most in governed no And shareholder of controlling on place, be quick is publicly other companies, as a just the finally, AMC traded with a array will shareholders. rally.

Our to many we once be and get operator, soon the for ready affection AMC of call buyers And strong intend With They've crucial decades. up XXX-year-old of focus has been $X.X to zeitgeist. cash, be really on thing questions. XX% than of now, that, managing been raised here at the our It's we're for business and to -- for It's Reddit to how between much of and probably our theaters again. more ticket not say our directing theaters and American this a those and appropriate AMC. that the part call. take is others, XXXX point its movie billion these retail the on April I or it's earnings at more rally. recovery. look notable investors, truly realize came have years not open in all to But the about Many to for decades before I heart, of AMC will of among people one Americans years ironically a now as cash going that out very


first [Operator is from Beynon Macquarie. question Instructions] Chad with Our

Chad Beynon

start and a many one to Adam, the just now of We've window including theatrical off Warner. broad wanted on partners, from your heard Universal, with studio Paramount topic.

And about means you're an Just getting could how What historical the to margins? this agreement this business back for model? standpoint? thinking affect from EBITDA wondering this how

Adam Aron

Chad. you, Thank

-- the was So some you I I room. but of remarks, to at Dating weeks but over think may windows. back good. But where to it is area we for never put years, prepared were may AMC at with it. remember good studio norm. adjusted when most strike AMC of we And on be this I signed deals windows, if the windows, in with to respect willing than you called different AMC we with our have marker. took that major down an something are shareholders, X several past going is on I resisted this for That obviously, conversations around that every we we home -- movie questions. bad area than could very feel might. it indicated always laid traditional my think I has to an the experimental with that that theater windows off, private It first circuit AMC, And strategies had earlier This not to studios the be play saved couldn't all we screening them And in for was movies shareholders. shorter traditional

AMC with new XXXX after than announced was for an -- recall, Some said thought very -- That of exchange AMC. what brief given we're service serious we And expense. Bros. suggested were let have that was of there that playing its landmark very Universal statement we may the days high as forward from Universal very right beneficial as for that. AMC letter we It streaming out that after good bound example of put Having years, were that of a a Warner the you a that, announcement release that at other noticed a ways was to traditional for you it good agreement now. April not movies be could willing We HBO we a for way to way in Warner advantage and chain. theater shareholders' studio Warner's partners to done about our are clear Bros. Max. that brief will XX discussion, with groundbreaking for Universal. movies and it was a at Fast

penalized. pattern But came opposed are discuss where if that any that never publicly, benefit our ways being in changes movies, being we today. you we to done AMC terms break I Now with their should playing Warner assume shareholders that strategy properly or we're won't as in film agreement and to Warner

willing a studio and all our engage same having continue not us can with expense. to the such and streaming are do optimistic at theatrical these topic, major adjust partners support that releases on partners and to between and studios business that for our We services so be relationships the I business been we studio with every their they their can century,

who made we I others studios, aren't who So our but policies conversations, anxious there have to and behind. changed, come necessarily been changes windows not than out come ahead so dealings far, more we've privy that up such our know windows have MI, with think where we about private that are

Chad Beynon

that. noted guidance been How the return Appreciate theaters percentage million. in year, of in strong CapEx you reduced would to landlords the then Sean, updated, partnering still if future stable? renovation for along, And you build complete? the that of the now guys the how then, is think the with And your new if and is more that build almost CapEx opportunities is the about particularly if your is if have come are thinking cards $XXX liquidity you about the business

Sean Goodman

the Yes. question. Thanks for

Our deleveraging. liquidity; and said focus right prepared our in now, primary we've remarks, b, as I think a, is:

that maintenance updating considerable guidance fortunate CapEx years, last XXXX primarily a focused and fleet. spent so CapEx, And we CapEx. in few for the pretty over that of of on the see you million, have $XXX theater reflected renovating amount our We're

$XXX leverage good planning opportunities. reduce improves, point, pandemic. it, even would position CapEx. plans view. the original theater we We're invest point Adam we so CapEx look as to our our expect a little talk future situation I that good more But to and in did is our improves, because XXXX, And at from bit liquidity. as the always more about beginning, said we is at maintenance-related. primarily and portfolio But timing growth it than position just will of that liquidity shape. reduced then a of growth we the believe to million the reduce predominantly The quite and let the our leverage I'll reduce the I in as this in is And it's with that

Adam Aron

would that builds constantly landlords powerful. still Having theaters brand But attractive in our finding, new that, coming we're in last theaters. are Denver. or existing we we find call I see you'll way what demanding expect to pick we're -- what sometimes way in very what the AMC So landlords with to opportunities that those build the And continue come position acquisitions. for a where up just week, we new spot a is theater our of us can opened to And respect new we're or have finding and -- literally locations. builds somewhat said to be be

going is more theater take on a to to lot AMC us the landlord a more new as For lot to taking forward, take a risk risk. build opposed going

probably you So capital from from than rather will greater contribution see a us. landlords

than and rents theatrical flow on of success the You on might of the see the for hook ebb rather the revenues theater. solely rents. percentage based fixed We're

are past I us future, still that So place think they're to put might terms the more but a decade times our there'll financial expansion over when more be than the in much flush. attractive in we have


Wold with B. next from Eric Our Riley question FBR. is

Eric Wold

is the of the and runway A more Can in liquidity box year. you are to update us kind underlying about maybe current outlook. point office filings? kind questions box get to next kind I'm assumptions on next kind year domestic versus of what of you couple cash kind that international prior you laid flow office, your what your around of to out of and thinking really had

Sean Goodman

Sure. Rick, it's Sean.

look let's at a conservatively. projection bit look at cash very So When talk about we our necessarily in projections, those little XXXX. we them

sure managing we're to going to when our think be sufficient we year. we appropriate liquidity liquidity. interesting make When that that's it's XXXX, an think I of have

half first and half, the as that in of more conservative view, burn the cash at expectations we've transition burn seen again, to levels. first then a be months to similar start of quarter. to the somewhat return cash our January to And normalized February. point things be we're from QX, will expecting The QX a

$XX And million, just be a say, period. transition period month cash so QX, QX that let's that we to in flow cash is during somewhere around expect positive. breakeven, QX, burn slightly cash probably flow

a you If your somewhere is What translates advance more what that now and conservative answer point box question to would on around... hand to XXXX all expectations, levels, that to based able expectation, quarterly translates you to that of that box that those added specifically, view be -- when see it is there. right a sufficient office from on cover office that below significantly we numbers, than up the cash have

Adam Aron

XXXX. said You

Sean Goodman

I Sorry, manage not appropriate XXXX. the close XXXX somewhere liquidity. sorry, I at levels, it's way XXXX below I below significantly levels. And don't know to conservative, beginning, that's what XXXX, why our to the to think go necessarily XX% again, I'll because back said

Eric Wold

last helpful. Perfect, Maybe that's just question.

right, finance Sorry to -- another question.

attendance thinking levels most to year-end, full that or theater XX here. normal you're you kicking theaters per the just rent in environment, and deferred million Are I one kind $XXX another in of of to back a well? general rent other payback saw $XX of immediately? rent get Adam, plus open, prepandemic there that bring million requirements then go mentioned we you reopens, as need kicking kind in of then effect of average guess are whatnot? assuming Sorry, a of rent period. in defer about month rent, on of the all plus Or be months are to levels once to back And terms hit deferred that kind of that terms kind kind I of does

Sean Goodman

time. rent deferred I paid Yes. have over paid period, so that And additional rent, The offset, be it rent, will over for some of XX-month will longer because being but XXXX that the assumption during million except roughly on careful of that back is the paid you period a to that's careful the assuming way offset by think that, specifically rent $XXX will in of deferred just And back of first deferred rent about concessions. that down, reason additional deferred rent we of rent XXXX, concessions. have be say be and will the half the

what the it period landlords. to in date as think on additional depending a is will when happen, attendance a of the something there's before, offset negotiated, I paybacks how XXXX, A January with deferred concessions beginning it's these that discussed back specific agreed date. specific about that and as timing rent specific that. rent lot that I've But But XXXX. that And date. is from far the repayment It's date As levels at kicks are said a of go then of the going.

Adam Aron

from just deep us -- bought I of in keep talk about add very And another Pfizer. in if But through Bourla in so tall theater for concessions was a who And the over retail of Eric, heroes investors we agreements. stood about And can that could the AMC comment. appreciated. are ATM stay my our I to of land shares hundreds really So January. told appreciation many from There And the renegotiated they and AMC constituency helping has all the We you October hundreds to around. effort our past year. Albert wanted survive business, lease hundreds they talks theater landlords and much us continue. our wanted those landlord community. us made and are that

We with our of theater all continue landlords. conversations

are flexible to this continue cash been that movies find coming our summer, wonderful it right it burning As much have them. that to we're we are wonderful creative, is that and And is new we cash, appreciative as and and still we very through as now. landlords raise


Partners. from Our next MKM is question with Handler Eric

Eric Handler

March? give for us expense update some 'XX, quarter your you've what likely good basis a look picked your just most given now cash on on all a that is update or cash? of either will total give at per the nits us interest an with? Can got like deal debt where to you on you Can And your beginning of

Sean Goodman


and on So see look the first XX-K, will you question, which our published if this week. our your capitalization total to debt, answer table at you'll be later

then December, of number. of is our pro that March, what of the the you forma tell debt total debt look at you as it's end If I'll the essentially at the and same and end

essentially So from was you the debt. of reflects, have $XXX the takes. debt lot have, March day, million big the at of end debt. at okay, the that is number it our end the same This puts a as there's transactions of the you conversion But of eliminate and you when of the total That'll so that convertible have at December. end

you and that's However, have at loan, items. time, $XXX-odd the European Those And million right? debt. X big same that's are the additional additional debt, of so

the clients There'll first term And The European that. our PIK other repayment they weren't as PIK because payment out, well. loan. revolving facility And the in difference on difference, credit some second net there's lien the is in big on the interest quite on debt be of on some the then lien interest of interest PIK items actually Odeon. is some debt

add all up end the with of number at you up the So you that, when end debt of the same day.

your question second to costs. was interest think I related

total million in calculate capitalization looking kind XXXX, So you because depends interest. make interest the you through if interest interest XXXX. paid we interest kind is. to to And PIK interest. off the When what in of around the a $XXX that single amount. for able have with interest But you'll do we're interest of and PIK see PIK what XXXX, number you it $XX interest million interest payment significant need all payment you're PIK the in at and quarters QX above there's a of QX cash pretty QX costs a are can elections net QX, QX are heavier heavy we payments go and payments But a low interest of QX The payments. schedule, is amount in you QX. are that QX, and elect quarter. through the not

Eric Handler

what the And be what the your PIK option. payments you contributions is -- your so what interest your like paid -- year? average What for and should should cash of assume back your if -- PIK you

Sean Goodman

that you, cash PIK be the million. around interest will that payments, gave assuming the I XXXX, cash payments interest number For $XXX-odd


Our is from question Jason Bazinet next Citi. with

Jason Bazinet

if take the smaller fewer apps. of or sort if end talking that And as there where Do I'm of ticket windows? then up we world rejigger with or go disagree a think new question in scope the my the with studios just we about not patrons may some And direct-to-consumer sort end going to release potentially specifics versus XXXX lower out think you to second experience where of their and movies these agreements like reposition I world is, your higher end offset the their longer because that to you run that, rate? theater you premise, -- may come just day Without the the maybe at experience? as the a studios, just behind AMC into of are the what if had of in something X premium questions. we there's just of you ahead sort buckets sort pricing you the getting of to talk attendance? that up be can turn a think when the but And should quick about in

Adam Aron

we really So question, our deals. theater don't the about talk first

it, dock respectively. Where between -- you'll to I theater in and the is movie going I'm chain business that So mean, see studios. relationship it is

It not if doesn't likely So mean it. where I but that don't you so your we're has to see to back, you're which that's second yet, get you're that question to built -- concessions to it many And going accept. into sorry, say is States, popular a want second going billion assumptions back to popular it's X X billion. Other States. go most meal right out experience the most third theater It's the out-of-home the movie United in than industry the XXXX, in United eat tickets in the restaurant. a sold out-of-home wrong,

we that United down. to come in then If theaters, all sold X is apartments out sports ever. were of and we us are VCRs up you're And people I sports, in are business, States theaters. to the of out strategies, going and the want all of going going out aren't now will do to think predicting to go it's to for have pandemic the us whole not going well, to people taught with in It's demise to that assume go theaters sold been happy change. there we're rise, that anything, demand to going business. are the our quite to their prices theaters every heading that major amounts and professional the just Maybe confident we movie movie am theater time. find is something TV to to business to really recall, this theaters, theaters. quantity is. window forever the going teams, going out business, season have that Maybe will adjustments pandemic, confident will matter the in film make they of streaming of streaming Xx they changing out thrived accommodate or be out what? all has they're I in Other got together, all post see. our XXX-ish to event to If business, need on be was a pandemic homes structure guess, you to change make will century. movie going how the do us are Because to Radio movie us no People of XXXX. homes cooped want But going that us up. take a massive whatever If -- back rents leagues all go whatever We'll nice long, put highly and attendance sports you'll don't of so. put we we of to people the games, see is put guess tickets put of than industry and even


with question is next from Alan Our Gould Loop Capital.

Alan Gould

I've got a few.

And to can given you EBITDA windows? fewer the you Or how think have be do that had levels adjusted screens? take? First, a in there you long will that XXXX, will Adam, it get you shorter that theatrical back

Adam Aron

screens way, negative increases the we kind EBITDA point not that's of does I'm it to this had closing because you that EBITDA, decrease EBITDA, one. screens going So, were fewer On answer projection. your a make a reads forward-looking statements that for other me question, appropriate it's John disclosure. ball it's But that think I I disclosure, don't to looking know forward such crystal

you get You've our talk coming moviegoers back about try start all beat estimates, level what to theaters. our of for your will proudly to on was AMC has and that EBITDA. see and through that predicting way. job, quite I this our bullish of challenge them. your to and right this think that extraordinary what And the I'm thrown us heard prospects it's don't going call, way to to everything we'll optimistic of make That's But year me we're done

Alan Gould


that you Sean shares or me Let been of have a ATMs additional few capital. any end authorized because to to now Because to the simply haven't Was that is since follow shares intention did others. January. the raise that? mention up needed There more offered do with

Adam Aron

of brought additional we're something, of there. capital bit will it we But think we bank, are very I most company. was capital. billion $X and raise we at carefully form the would $X.XXX with cash January carefully for said achieve -- also XX think what a Well, it we additional that capital. of breather. to thought raising to us are we he lot thought vehicles of to deleveraging didn't billion examine is and Having goal in between balancing raise take was, He say now to can we whatever the smartest appropriate looking that a a XX how There the XXnd, December we ways are the attractive. can the of that use get in we And

January, debt and of thrilled XXXX, that a of July converted our Silver got are through $XXX of negotiation of in we with their notes complex rid equity. very million million when in thrilled holders. Lake that $XXX lien got We second we debt rid of We're

from hard. So raising in given X last we that, But the just of bank months. it's capital something what in simple that the we we'll a weeks very put at couple took it's look fact away yes,

Alan Gould

Do industry-wide? now see opportunities M&A for attractive you And you happening you currency? what see, a got frankly, do more see Do Okay. screens you've closing? that

Adam Aron

think has not is closures. very I think I through to year, our think screen overstating to this low lived but do what overstating theaters that of our people money-losing given at is that a industry -- desirability. past But streaming cause somehow operate continue are you, going to I eagerness you're point

be don't think say I AMC, so mean we, And much whole I we'll And tougher. industry. I when I mean the

all to evaluating to they which M&A lease operate and going And degree theaters. taking. that they're are risk guess marginal people willing much activity? together. think we'll I the in Is to there are I tougher find be out the

Alan Gould

that And last sheet, question, does that have landlord billion your balance $X your Okay. my negotiations? you now cash over on change of

Adam Aron

in But Yes. It not we And creative We're makes continuing as have table. that we're a things call, we're the XXXX. put of of can AMC. focused profitable really community. with were things on we on we do. we are to There some are quite There conversations the bunch harder. desperate June And here on it landlord at or our interesting were this that are that can as theaters largely unprofitable. --

lot theaters profitable. that times in very We have a are of normal

again, by are interesting, and of lease by for the landlord so landlord, lease, opportunity forward. by there's us always theater plenty And discussions theater, going


final we time gentlemen, for and one Ladies have question.

Research. comes Our Jim from Barrington final with question Goss

Jim Goss

that actions between up standardized one, develop studios types will on? the any of goes by as small and will basis idea. Or wrapping Do on One -- do think a or of of range a you emerged, be windows one there will the just that think, variety given the you the one windows have it on time standardization be exhibitors?

Adam Aron

And I going approach. I be been That's very years there question, good a don't for the -- understood like and way. by X years. a what hello, it's to and and cookie-cutter years That's think there's was everybody window. don't Jim,

see the -- especially to what needs. agreement to have universal learned different is what think going every studio and seems since desires we've we're I

see be going you're studio will they're agreements by to probably custom I'm to and that by differ, expecting circuit. that going And studio that developed may circuit so differ

Jim Goss

past the over And Okay. year...

Adam Aron

could Universal more I literally discussions, we if saying X Warner to add to for good if only I good discussions, I've our and years, Jim, sign we been our as as said could But X our with just and said our have But for point, if for the on with as can answer. X company point shareholders. something more we it's

the be we to largest in creative to studios. and with table the saying, So the to our innovative you We're the solutions. and and like the that for should discussions a got it at have that is don't stuck have And be of imaginative highly to be." XXXX there we advantage in used continue and find I will confident willing that go seat world being one we to assume am it's exhibitor solutions. And those "Oh, way look legitimate of

clearly, exist, ticket decades Last believe We think we XXXX. partners these with -- of and theaters us, more. that decades or their and of need they not that it's too. decades sales don't There a have to throw was been share year, for them interest need And And that last studios to I $XX but generated away. globally. billion huge just The in in is number. movie I good Hollywood money year

there for but get both when So, to be us. be you drawing working will this the find think our that it entities. for studios business There little good in end might continue doing been solutions be I little in each confident a for final might to be a drawing solution, public, I a as private, good highly who've other, that I'm work partners we'll and long time with confident

Jim Goss

persist Okay. about And past all of the my -- over the COVID. year, that talked exhibitors things last we've thing, post might the

levels, you even some getting chance staffing from go popcorn food back point or and might coming to maybe a showings, a blocking, protocols what again maybe to terms sort as do and softdrinks X.X persist to transition, menu and be at cleaning private you beverage least broader have to seat actually items? conclusion think where we're will this Now of that in of

Adam Aron

Thanks, Jim.

So there's question, immensely stay. lot is whole popular. a Certainly, rentals here been to that private right? That's in theater

and to can XXX,XXX did think long varied AMC I will efforts. more another as will at smartphone you that itself example, in the in our theaters, assume sure period rise, stand, movie is forward, that's us. beverage imaginative builds will a into cuts a go concession gotten As and and to and be up pandemic good has going lot of and I'm the for we theater for we app, of ordering prided imaginative that continue. there we said, menus. our on as automation food them The guests, food Sean traction beverage wages guests time already, I'm good -- thing our which mobile back and expecting with of patronage more used our this which out industry so for our build lot

fourth with confident that can. and going to figure But going continue we're are X expressed we have and those business to to to over, things. saved We're streaming such last. studio so. have over thing work the do to we for on that's And I'm their is a and So have believe our figure I -- that can ways, going out we business. to And out I can how lastly, support partners that their theatrical I biggest

are our to for our just everybody our now, woe I'm to to match And going department for of post-pandemic here be guests, last over after the days this over through Now sanitization that does spotlessly something factor is movie is going any intend tell forward. competitors year, we shudders it. theaters public the us even in going I what to and of be has important the world, and say an when operations not extremely about it been theaters the run But stride dirty stride. a who cleanliness,


the and now I have closing of We session, for question-and-answer reached call turn over remarks. end will the the management back to

Adam Aron

theaters you, ladies our $XXX at are of quarterly Thanks and operator. everybody rid movies. last cash, we you Since Thank joining reopening, $X.XXX us of today. coming, debt, movie big are titles call, see gentlemen, Thanks our raised for call. to the got of million the on AMC billion


may and a evening. have lines disconnect and for Thank you participation, you your time. concludes today's This at your great conference, this