Back to top

Image: Bigstock

AMC Entertainment (AMC) Q3 Earnings Top, Revenues Lag

Read MoreHide Full Article

AMC Entertainment Holdings Inc. (AMC - Free Report) reported mixed financial results in the third quarter of 2016. While the top line lagged the Zacks Consensus Estimate, the bottom line surpassed the same.

GAAP net income was $30.4 million or 31 cents per share compared with $12.1 million or 12 cents in the prior-year quarter. Third-quarter earnings per share of 31 cents were ahead of the Zacks Consensus Estimate of 28 cents.

Quarterly total revenue was $779.8 million, up 13.2% year over year but slightly below the Zacks Consensus Estimate of $782 million. Segment wise, Admission revenues were $496.7 million, up 12.6% year over year. Food and beverage revenues were $248.9 million, up 14.8% year over year. Other theater revenues were $34.2 million, up 10.8% year over year.

Quarterly operating expenses were $714.2 million, up 9.3% year over year. Operating income was $65.5 million, down a whopping 84.3% year over year. Operating margin increased to 8.4% from 5.4% in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $144.4 million, surging 32.5% year over year. Adjusted EBITDA margin was 18.5% compared with 15.8% in the year-ago quarter.

Cash Flow

During the third quarter of 2016, AMC Entertainment generated $77.4 million of cash from operations compared with $16.3 million in the year-ago quarter. Adjusted free cash flow was a negative $38.9 million compared with a negative $55.5 million in the prior-year quarter.

Liquidity

At the end of the third quarter of 2016, AMC Entertainment had $46.3 million of cash and cash equivalents and $1,853.5 million of outstanding debt compared with $211.3 million of cash and cash equivalents and $1,912.8 million of outstanding debt at the end of 2015. The debt-to-capitalization ratio, at third-quarter 2016 end, was 0.54 against 0.55 at the end of 2015.   

AMC Entertainment competes with Carmike Cinemas Inc. , Cinemark Holdings Inc. (CNK - Free Report) and Live Nation Entertainment Inc. (LYV - Free Report) . AMC Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMC ENTERTAINMT Price, Consensus and EPS Surprise

 

AMC ENTERTAINMT Price, Consensus and EPS Surprise | AMC ENTERTAINMT Quote

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Live Nation Entertainment, Inc. (LYV) - free report >>

Cinemark Holdings Inc (CNK) - free report >>

AMC Entertainment Holdings, Inc. (AMC) - free report >>

Published in